1.1.11

CHAPTER 1. THE CHAPTER 1. THE INFORMATION SYSTEMS INFORMATION SYSTEMS

REVOLUTIONREVOLUTION

TRANSFORMING TRANSFORMING BUSINESS AND BUSINESS AND MANAGEMENTMANAGEMENT

1.1.22

LEARNING OBJECTIVESLEARNING OBJECTIVES

• DEFINE INFORMATION SYSTEMSDEFINE INFORMATION SYSTEMS

• COMPUTER LITERACY versus COMPUTER LITERACY versus INFORMATION SYSTEMS LITERACYINFORMATION SYSTEMS LITERACY

• EXPLAIN IMPACT OF INFORMATION EXPLAIN IMPACT OF INFORMATION SYSTEMS ON ORGANIZATION & SYSTEMS ON ORGANIZATION & MANAGEMENTMANAGEMENT

**

1.1.33

LEARNING OBJECTIVESLEARNING OBJECTIVES

• COMPARE ELECTRONIC COMMERCE COMPARE ELECTRONIC COMMERCE & ELECTRONIC BUSINESS, & ELECTRONIC BUSINESS, RELATIONSHIP TO INTERNET & RELATIONSHIP TO INTERNET & DIGITAL TECHNOLOGYDIGITAL TECHNOLOGY

• IDENTIFY MAJOR MANAGEMENT IDENTIFY MAJOR MANAGEMENT CHALLENGES TO BUILDING, USING CHALLENGES TO BUILDING, USING INFORMATION SYSTEMSINFORMATION SYSTEMS

**

1.1.44

MANAGEMENT CHALLENGESMANAGEMENT CHALLENGES

• WHY INFORMATION SYSTEMS?WHY INFORMATION SYSTEMS?• CONTEMPORARY APPROACHES TO CONTEMPORARY APPROACHES TO

INFORMATION SYSTEMSINFORMATION SYSTEMS• NEW ROLE OF INFO SYSTEMS IN NEW ROLE OF INFO SYSTEMS IN

ORGANIZATIONSORGANIZATIONS• LEARNING TO USE INFO SYSTEMS: NEW LEARNING TO USE INFO SYSTEMS: NEW

OPPORTUNITIES WITH TECHNOLOGYOPPORTUNITIES WITH TECHNOLOGY

**

1.1.55

BUSINESS ENVIRONMENTBUSINESS ENVIRONMENT

• GLOBALIZATIONGLOBALIZATION

• INDUSTRIAL ECONOMIESINDUSTRIAL ECONOMIES

• TRANSFORMATION OF THE TRANSFORMATION OF THE ENTERPRISEENTERPRISE

**

1.1.66

GLOBALIZATIONGLOBALIZATION

• MANAGEMENT & CONTROLMANAGEMENT & CONTROL

• COMPETITION IN WORLD MARKETSCOMPETITION IN WORLD MARKETS

• GLOBAL WORK GROUPSGLOBAL WORK GROUPS

• GLOBAL DELIVERYGLOBAL DELIVERY SYSTEMSSYSTEMS

**

1.1.77

TRANSFORMATIONTRANSFORMATION• KNOWLEDGE-BASED ECONOMIESKNOWLEDGE-BASED ECONOMIES• PRODUCTIVITYPRODUCTIVITY• NEW PRODUCTS & SERVICESNEW PRODUCTS & SERVICES• KNOWLEDGE AS AN ASSETKNOWLEDGE AS AN ASSET• TIME-BASED COMPETITIONTIME-BASED COMPETITION• SHORTER PRODUCT LIFESHORTER PRODUCT LIFE• TURBULENT ENVIRONMENTTURBULENT ENVIRONMENT• LIMITED EMPLOYEE LIMITED EMPLOYEE KNOWLEDGE BASEKNOWLEDGE BASE

**

1.1.88

TRANSFORMATION OF TRANSFORMATION OF ENTERPRISEENTERPRISE• FLATTENINGFLATTENING• DECENTRALIZATIONDECENTRALIZATION• FLEXIBILITYFLEXIBILITY• LOCATION INDEPENDENCELOCATION INDEPENDENCE• LOW TRANSACTION COSTSLOW TRANSACTION COSTS• EMPOWERMENTEMPOWERMENT• COLLABORATIVE WORKCOLLABORATIVE WORK

**

1.1.99

KNOWLEDGE- AND KNOWLEDGE- AND INFORMATION-INTENSE INFORMATION-INTENSE

PRODUCTSPRODUCTS• PRODUCTS THAT REQUIRE A PRODUCTS THAT REQUIRE A

GREAT DEAL OF LEARNING & GREAT DEAL OF LEARNING & KNOWLEDGE TO PRODUCEKNOWLEDGE TO PRODUCE

**

1.1.1010

LABOR FORCE COMPOSITION 1900-1996LABOR FORCE COMPOSITION 1900-1996

Source: Laudon & Laudon 2000

0%

10%

20%

30%

40%

50%

60%

70%

1900

1910

1920

1930

1940

1950

1960

1970

1980

1996

YEAR

% SERVICE

% WHITE COLLAR% BLUE COLLAR

% FARMING

1.1.1111

SYSTEMSYSTEM

INPUT OUTPUTPROCESS

FEEDBACK

1.1.1212

FUNCTIONS OF AN INFORMATION SYSTEMFUNCTIONS OF AN INFORMATION SYSTEM

INPUT OUTPUTPROCESS

FEEDBACK

INFORMATION SYSTEMINFORMATION SYSTEM

ENVIRONMENTENVIRONMENT

Customers Suppliers Customers Suppliers

Regulatory Regulatory Stockholders CompetitorsStockholders CompetitorsAgenciesAgencies

ORGANIZATIONORGANIZATION

1.1.1313

COMPUTER-BASED COMPUTER-BASED INFORMATION SYSTEMS INFORMATION SYSTEMS (CBIS)(CBIS)

• FORMAL SYSTEMSFORMAL SYSTEMS

• FIXED DEFINITIONS OF DATA, FIXED DEFINITIONS OF DATA, PROCEDURESPROCEDURES

• COLLECTING, STORING, COLLECTING, STORING, PROCESSING, DISSEMINATING, PROCESSING, DISSEMINATING, USING DATAUSING DATA

**

1.1.1414

INFORMATION SYSTEMSINFORMATION SYSTEMS

ORGANIZATIONSORGANIZATIONS TECHNOLOGYTECHNOLOGY

MANAGEMENTMANAGEMENT

INFORMATIOINFORMATIONN

SYSTEMSSYSTEMS

1.1.1515

MAJOR ORGANIZATIONAL MAJOR ORGANIZATIONAL FUNCTIONSFUNCTIONS

• SALES & MARKETINGSALES & MARKETING

• MANUFACTURINGMANUFACTURING

• FINANCEFINANCE

• ACCOUNTINGACCOUNTING

• HUMAN RESOURCESHUMAN RESOURCES

**

1.1.1616

COMPUTER TECHNOLOGYCOMPUTER TECHNOLOGY

• HARDWAREHARDWARE

• SOFTWARESOFTWARE

• STORAGESTORAGE

• COMMUNICATIONSCOMMUNICATIONS

• NETWORKNETWORK

**

1.1.1717

APPROACHES TO INFO SYSTEMSAPPROACHES TO INFO SYSTEMS

SOCIOLOGYSOCIOLOGY

POLITICAL POLITICAL SCIENCESCIENCE

PSYCHOLOGYPSYCHOLOGY

COMPUTER COMPUTER

SCIENCESCIENCEOPERATIONS OPERATIONS

RESEARCHRESEARCH

MANAGEMENTMANAGEMENT

SCIENCESCIENCE

MISMIS

TECHNICAL APPROACHESTECHNICAL APPROACHES

BEHAVIORAL APPROACHESBEHAVIORAL APPROACHES

1.1.1818

SOCIOTECHNICAL PERSPECTIVESOCIOTECHNICAL PERSPECTIVE

OPTIMIZE SYSTEM PERFORMANCE:OPTIMIZE SYSTEM PERFORMANCE:

TECHNOLOGY & ORGANIZATION TECHNOLOGY & ORGANIZATION MUTUALLY ADJUST TO ONE MUTUALLY ADJUST TO ONE

ANOTHERANOTHER

UNTIL FIT IS SATISFACTORYUNTIL FIT IS SATISFACTORY

**

SOURCE: Liker, et al, 1987

1.1.1919

SYSTEM INTERDEPENDENCESYSTEM INTERDEPENDENCE

BUSINESSBUSINESS

StrategyStrategy

RulesRules

ProceduresProcedures

ORGANIZATION ORGANIZATION INFORMATION SYSTEMINFORMATION SYSTEM

HARDWAREHARDWARE

SOFTWARESOFTWARE DATABASEDATABASE

TELE-TELE-COMMUNICATIONSCOMMUNICATIONS

INTERDEPENDENCEINTERDEPENDENCE

1.1.2020

• 1950s:1950s: TECHNICAL CHANGES TECHNICAL CHANGES• 60s-70s:60s-70s: MANAGERIAL CONTROL MANAGERIAL CONTROL• 80s-90s:80s-90s: INSTITUTIONAL CORE ACTIVITIES INSTITUTIONAL CORE ACTIVITIES

GROWING IMPORTANCEGROWING IMPORTANCE

**

SCOPE OF INFO SYSTEMSSCOPE OF INFO SYSTEMS

1.1.2121

WHAT YOU CAN DO ON THE WHAT YOU CAN DO ON THE INTERNETINTERNET

• COMMUNICATE & COLLABORATECOMMUNICATE & COLLABORATE

• ACCESS INFORMATIONACCESS INFORMATION

• DISCUSSDISCUSS

• OBTAIN INFORMATIONOBTAIN INFORMATION

• ENTERTAINENTERTAIN

• TRANSACT BUSINESS TRANSACT BUSINESS

**

1.1.2222

NEW OPTIONS FOR NEW OPTIONS FOR ORGANIZATIONAL DESIGNORGANIZATIONAL DESIGN

• FLATTENING ORGANIZATIONSFLATTENING ORGANIZATIONS• SEPARATING WORK FROM LOCATIONSEPARATING WORK FROM LOCATION• REORGANIZING WORK-FLOWSREORGANIZING WORK-FLOWS• INCREASING FLEXIBILITYINCREASING FLEXIBILITY• REDEFINING REDEFINING

ORGANIZATIONAL ORGANIZATIONAL BOUNDARIESBOUNDARIES

**

1.1.2323

THE CHANGING THE CHANGING MANAGEMENT PROCESSMANAGEMENT PROCESS

• ELECTRONIC COMMERCEELECTRONIC COMMERCE

• ELECTRONIC BUSINESSELECTRONIC BUSINESS

• ELECTRONIC MARKETELECTRONIC MARKET

**

1.1.2424

ELECTRONIC COMMERCEELECTRONIC COMMERCE• INTERNET LINKS BUYERS, SELLERSINTERNET LINKS BUYERS, SELLERS

• LOWERS TRANSACTION COSTSLOWERS TRANSACTION COSTS

• GOODS & SERVICES GOODS & SERVICES ADVERTISED, BOUGHT, EXCHANGED ADVERTISED, BOUGHT, EXCHANGED WORLDWIDEWORLDWIDE

• BUSINESS-TO-BUSINESS BUSINESS-TO-BUSINESS TRANSACTIONS TRANSACTIONS INCREASINGINCREASING

**

1.1.2525

ELECTRONIC BUSINESSELECTRONIC BUSINESS

• INTRANET: BUSINESS BUILDS INTRANET: BUSINESS BUILDS PRIVATE, SECURE NETWORKPRIVATE, SECURE NETWORK

• E-MAIL, WEB DOCUMENTS, GROUP E-MAIL, WEB DOCUMENTS, GROUP SOFTWARE EXTENDS SOFTWARE EXTENDS EFFECTIVE EFFECTIVE

COMMUNICATION & COMMUNICATION & CONTROLCONTROL

• VIRTUAL ORGANIZATIONVIRTUAL ORGANIZATION

**

1.1.2626

SALES & MARKETING

COMPANY

FINANCE COMPANY

LOGISTICS

COMPANY

DESIGN

COMPANY

MANUFACTURING

COMPANY

VIRTUAL ORGANIZATIONVIRTUAL ORGANIZATION

CORECORECOMPANYCOMPANY

1.1.2727

CHALLENGE OF INFO SYSTEMSCHALLENGE OF INFO SYSTEMS

• STRATEGIC: COMPETITIVE & EFFECTIVESTRATEGIC: COMPETITIVE & EFFECTIVE• GLOBALIZATION: MULTINATIONAL INFOGLOBALIZATION: MULTINATIONAL INFO• INFO ARCHITECTURE: SUPPORT GOALSINFO ARCHITECTURE: SUPPORT GOALS• INVESTMENT: VALUE OF INFORMATIONINVESTMENT: VALUE OF INFORMATION• RESPONSIBILITY & CONTROL: ETHICSRESPONSIBILITY & CONTROL: ETHICS

**

1.1.2828

Connect to the INTERNETConnect to the INTERNET

© 2001 Laudon & Laudon, Essentials of Management Information Systems 4/e

Laudon/Laudon Web site: http://www.prenhall.com/laudon

Additional Internet Resources related to this chapter:http://www.dell.com

http://www.amazon.com http://www.firstunion.com

http://www.intel.com http://www.clemson.edu/ http://www.gatech.eduhttp://www.bath.ac.uk http://www.intranet.comhttp://www.ascusc.org/jcmc/vol1/issue1/index.html

1.1.2929

CHAPTER 1. THE CHAPTER 1. THE INFORMATION SYSTEMS INFORMATION SYSTEMS

REVOLUTIONREVOLUTION

TRANSFORMING TRANSFORMING BUSINESS AND BUSINESS AND MANAGEMENTMANAGEMENT