Chapter 1

Chapter 11

Organizational Performance: IT Support and Applications

Learning Objectives

Chapter 12

Describe the digital economy and digital enterprises.

Recognize the relationship between performance, organizational pressures, and responses and technology.

Define IS and IT. Understand what the adaptive enterprise

is ? Understand the support role that IS and IT

play in the organization. Understand the importance of learning

about IT.

Doing Business in the Digital Economy

Chapter 13

Conducting business in the digital economy means using Web-based systems on the Internet and other electronic networks to do transactions electronically.

Digital Enterprise

Chapter 14

Digital enterprise is a new business model that uses: IT in a fundamental way to

accomplish one or more of three basic objectives:Reach and engage customers more

effectively,Boost employee productivity,Improve operating efficiency

Digital Enterprise

Chapter 15

Uses converged communication and computing technology to improve business processes.

A digital enterprise used networks of computers to e-connect: all its internal parts via an intranet.

all its business partners via the Internet or Extranet.

Digital EconomyDigital Economy refers to an economy that

is based on digital technologies.Sometimes called the Internet economy,

the new economy, or the Web economy.Is a convergence of computing and

communication technologies on the Internet and other networks, and the resulting flow of information and technology that is stimulating electronic transactions and vast organizational change.

Chapter 16

Digital Economy – “New” Economy

Chapter 17

E-Business: The use of electronic technologies to transact business

Collaboration: People and Organizations interact, communicate, collaborate, and search for information

Information Exchange: Storing, processing and transmission of information

Digital Business

Chapter 18

Major IT characteristics in the DEGlobalizationDigital systemsSpeedInformation overloadMarketsDigitizationBusiness models and processes

Chapter 19

Major IT characteristics in the DEInnovationObsolescenceOpportunities FraudWarsOrganizations

Chapter 110

Opportunities for EntrepreneursProvides un-parallel opportunitiesCreate “dot-com” companies from

inceptionApply EC business models to

different business areasSell products onlineOnline medical adviseSecured e-payments

Chapter 111

E-Commerce and Network Computing

Infrastructure for digital organization and EC is made up of:Networked computing (distributed computing) which connects computers and other e-devices via telecommunication networks.

Chapter 112

-cont..Standalone computers or networks

confined to single location use multiple-location networked computers connected to the global networked environment known as Internet.

Internet’s counterpart within an organizations, are called an Intranet.

Some link intranets to their business partners over networks called Extranets

Chapter 113

Major capabilities of CISCIS = Computerized Information

SystemsPerform high speed, volume and

numerical computations.Provide fast, accurate, reliable, and

inexpensive communication within and between organizations, any time any place.

Store huge amounts of information in an easy-to-access, yet small space.

Chapter 114

-cont…Allow quick and inexpensive access to vast amounts of information world wide at any time.

Enable collaboration anywhere, anytime.

Chapter 115

Major capabilities of CISIncrease the effectiveness and efficiency

of people working in groups in one place or in several locations.

Vividly present information that challenges the human mind.

Facilitate work in hazardous environments.

Automate both semiautomatic business processes and manually done tasks.

Facilitate global trade.

Chapter 116

Major capabilities of CISEnable automation of routine

decision making.Facilitate complex decision

making.Can be wireless, thus supporting

unique applications anywhere.Accomplish all of the above much

less expensively than when done manually.

Chapter 117

The Old Economy – Taking Photo’s

Chapter 118

1. Buy film in a store2. Load your camera3. Take pictures4. Take roll of film to store for processing5. Pickup the film when ready6. Select specific photos for enlargement7. Mail to family and friends

The New Economy – Taking Photo’s

Chapter 119

1st Generation Digital Photography Old economy (except 6 and 7) were

replaced by using a scanner and emailing

2nd Generation Digital Photography Use a Digital Camera, no film, no processing

3rd Generation Digital Photography Your Digital Camera is now in your mobile

phone, your binoculars, or palmtop computer.

The Global Platform of the New Economy

Chapter 120

A huge number of digitizable products; that is products that can be converted to digital format. Most common are: books, movies, magazines, TV and radio programming, electronic games, music CDs, and computer software.

Consumers and firm conducting financial transaction digitally.

Physical goods such as home appliances and automobiles that contain embedded computer chips and connectivity capabilities.

Electronic Business

Chapter 121

Businesses increasingly perform their basic functions: buying and selling goods and services, servicing customers, and collaborating with business partners electronically

This process is known as electronic business (E-business) or electronic commerce (E-commerce)

New Economy vs. Old Economy

Example Old New Buying and selling textbook Visit the bookstore Visit web site for publishers

and retailers

Registering for classes Walk around campus to Departments, Registrar’s office, etc.

Access campus web site

Photography Buy film, use camera, take picture, take it for processing

Use digital camera

Paying for Gasoline Fill up your car, go inside, pay cash or credit card

Use speed pass token; wave over the sensor and go

Paying for Transportation Pay cash, metal tokens Metro cards electronic cards

Paying for goods Visit store, select item, pay, go Use self-service kiosks

Supplying commercial photos Use newspapers, paper, catalog, or online

Use hub-like supply chain with digitized picture

Chapter 1 22

Business Models

Chapter 123

A business model is a method of doing business by which a company can generate revenue to sustain itself. The model spells out how the company adds value to create a product or service. (Value Chain)

Nokia makes and sells cell phonesA TV station provides free broadcasting. Its survival

depends on a complex model involving advertisers and content providers

Internet portals, such as Yahoo, also use a complex business model.

Digital Age Business Models

Chapter 124

Name-Your-Own Price

Reverse Auctions

Affiliate Marketing

E-Marketplaces and Exchanges

Electronic aggregation (buying groups)

Drivers Forcing Changes In Business Models

Chapter 125

Environmental, organizational, and technological factors

React frequently and quickly to both the threats and the opportunities resulting from this new business environment

A response can be a reaction to a pressure already in existence, an initiative intended to defend an organization against future pressures, or an activity that exploits an opportunity created by changing conditions

Business Pressures

Business Critical Response Activities

The Drivers of Change (Continued)

Chapter 1 26

Business Pressures, Organizational Responses, and IT Support

Chapter 127

Business Pressure - The business environment is the combination of social, legal, economic, physical, and political factors that affect business activities

Significant changes in any of these factors are likely to create business pressure on the organization

The three types of business pressures faced are: market, technology, and societal pressures.

Three Types of Business Pressures

Chapter 128

Market Pressures:

The Global Economy and Strong Competition

The Changing Nature of the Workforce

Powerful Customers

Business Pressures (Continued)

Chapter 129

Technology Pressures:

Technological Innovation and Obsolescence

Information Overload

Business Pressures (Continued)

Chapter 130

Societal Pressures:

Social Responsibility

Government Regulation and Deregulation

Protection Against Terrorist Attacks

Ethical Issues

Organizational Responses

Chapter 131

Strategic Systems provide advantages that enable organizations to increase market share and/or profits, better negotiate with suppliers, or prevent competitors from entering their markets

Customer Focus is the difference between attracting and keeping customers by providing superb customer service and losing them to competitors

Organizational Responses (Continued)

Chapter 132

Make-to-Order is a strategy of producing customized products and services

Mass Customization is producing a large quantity of items, but customizing them to fit the desire of each customer

E-business and E-commerce is the strategy of doing business electronically

What is an Information System?

Chapter 133

An IS is a system that collects, processes, stores, analyzes and disseminates information for a specific purpose.

An IS includes :Inputs(data, instructions)Outputs (reports, calculation)ProcessFeedback

Information System

Chapter 134

Formal and Informal ISFormal systems include agreed-

upon procedures, standard inputs, outputs and fixed definitions.

Informal systems may be in any form or shape, ranging from an office gossip network or group of friends exchanging letters electronically.

Chapter 135

What is a CBIS?Computer Based Information

System.CBIS is an IS that uses computer

technology to perform some or all of its intended tasks.

Can include PCs and software.1000s of varying sized computers,

printers, plotters, networking devices and databases.

Chapter 136

Business Information System

Chapter 137

Components of CBISHardwareSoftwareDatabaseNetworkProceduresPeoplePurpose Social Context

Chapter 138

What is an Information Technology?IT is the collection of computing

systems used by an organization.It refers to the technological side

of an information system.IT includes:

Hardware, softwareDatabases, networks andOther Electronic devices

Chapter 139

Why Should You Learn about Information Technology (IT)?

Chapter 140

IT is essential for work in organizationsIT will reduce the number of middle

managersIT will change the manager’s jobIT impacts employees at workIT impacts employees’ health and safetyIT is used by all departments

Why Should You Learn about IT? (Continued)

Chapter 141

IT provides opportunities for people with disabilities

IT provides quality-of-life improvements

Improvements in health care

Crime fighting and other benefits

Managerial Issues

Chapter 142

Recognizing opportunities for using IT and Web-based systems.

Who will build, operate, and maintain the information systems. How much IT?

How much and HOW important is IT? Is the situation going to change? Globalization. Ethics and social issues. Transforming the organization to the

digital economy.