ch1 - managing it in a digital world

1-1Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

MANAGING INFORMATION TECHNOLOGY

7th EDITION

CHAPTER 1

MANAGING IT IN A DIGITAL WORLD

1


MANAGING INFORMATION TECHNOLOGY, 7e

.

Information Technology (IT):

Computer technology (hardware and software)

for processing and storing information

and

Communications technology (voice and data networks)

for transmitting information.


MANAGING INFORMATION TECHNOLOGY, 7e

Part I

• Technologies available today and emerging technology trends for

hardware, software, networks and data

Part II

• Software applications to support business operations and business

intelligence, as well as e-business applications

Part III

• “Best practices” for acquiring and implementing new systems and

managing IT projects

Part IV

• Planning and managing an IS department’s resources, as well as

managing information security; social/ethical/legal issues


MANAGING IT IN A DIGITAL WORLD

• IT has become more pervasive

- IT is not used only by back-office workers, but also front-line workers

- More and more employees are reliant upon IT for accomplishing their work

activities

• Business managers, not just IT managers, are responsible for IT

investments and effective system utilization

• By the Year 2000, the total annual cost of IT purchases was more

than half of the annual capital expenditures of businesses in

developed countries

• IT is linking emerging, developing and developed economies,

which can help “level” the economic playing field


RECENT INFORMATION TECHNOLOGY TRENDS

• Computer Hardware: Faster, Cheaper, Mobile

- Computers have become smaller and faster

- Hardware prices have dropped

- High growth in small, mobile devices for communications and

access to the Internet

Microcomputers

(1970’s)

IBM Personal Computer

(1981)

Personal Digital Assistants [PDAs]

introduced

(early 1990s)

Laptop Computers outsell

desktops

(2005)

Smart Phones introduced

(2007)



• But it can be hard to predict long-term IT trends….



• Computer Software: Integrated, Downloadable, Social

• Integrated

- Standardization has enabled more integration

- Many “standards” are just de facto standards (Microsoft

Windows, Office, Internet Explorer)

- Many companies have benefitted from “Enterprise Systems”

investments (e.g., electronic health records in hospitals)

Enterprise Systems:

Software packages with integrated modules that pass

common business transactions across groups,

divisions, and geographic locations in “real time”



• Computer Software: Integrated, Downloadable, Social

• Downloadable

- Bit-size software programs for smart phones downloadable

from App stores

- Download speeds have increased so that even large files can

be downloaded by users

• Social

- Growth of Web 2.0 (social media) applications (such as

Facebook, LinkedIn)

- Used by companies for marketing and branding activities

- Collaboration tools connect employees across distance



• Computer Networks: High Bandwidth, Wireless and Cloudy

- High demand for high speed Internet access

- Wireless technologies to replace hardwired lines; support for

mobile devices anytime/anywhere

- Use of Internet to access remote hosts, data storage, and other IT

capabilities from the “Cloud”

ARPANET created

(late 1960s)

Introduction of the World Wide Web

(early 1990s)

Consumer high-speed Internet

connections widely available

(early 2000s)

Number of Internet users tops 1 billion

(2005)

Wireless Internet access common in

many locations

(today)

1-10

• 1970s: Technical solutions for managing data

• Database management systems (DBMS)

• Centralized environment for first 20 years

• 1990s: Shift toward managing information resources

• Concepts/ideas as a function of raw data

• Voice, video, graphics, animation

• Decentralized environment of information access and exchange (end-user level)

• Require data warehousing and data mining technologies

• 2000s: Web content management

• Standardize formats of and make interoperable huge amounts of data on Web sites

• e.g., Extensible Markup Language (XML)

• 2010s: Big Data!!!

Data Trends


NEW WAYS TO COMPETE

• New ways for businesses to use IT to compete on:

• Low Cost – Competing with other businesses by being a low-

cost producer for a good or a service

• Automating transaction time

• Shortening order cycle time

• Providing operational information for decision making

• Differentiation – Competing with other businesses by offering

products or services that customers prefer due to superiority in

product innovativeness, quality or customer service

• Giving sales personnel information to better serve customers

• Providing just-in-time supplies for customers

• Creating new information-based products

• Allowing product customization by the consumer

• OR Both Low Cost and Differentiation, enabled by IT


NEW WAYS TO WORK

• New ways for people to work using IT:

• Telecommuters: Individuals who use mobile technology

and/or network connections to work remotely

• Pros

- Flexibility

- Work-life balance

• Cons

- Feelings of being isolated

- Concerns about job promotion opportunities


NEW WAYS TO WORK

• New ways for people to work using IT, continued:

• Virtual Teams: Geographically separated work teams

whose members communicate through the use of IT

• Pros

- Workers can be located anywhere

- Teams can be composed of members with specialized

skills from different business units or companies

• Cons

- Coordination across team members more difficult


NEW WAYS TO WORK

• New ways for people to work using IT, continued:

• Free Agents: Individuals who choose to contract out their

services and are not tied to an organization

• Pros

- Work may change more than when an employee of a

single organization

• Cons

- Lack of benefits

- Unpredictability in scheduling and work


MANAGING IT IN ORGANIZATIONS

• Information Systems departments can vary greatly across

businesses, depending on the organization’s dependency on IT

for:

• reliable & secure business operations and

• competitive advantage based on new technologies

Information Systems (IS) Department:The organizational unit or department that has the primary

responsibility for managing IT



• Example: IS Organization in

Support Mode

- Low Need for New Information

Technology for competing

- Low Need for Reliable & Secure

Information Technology for

business operations

- IT used mostly to support back-

office support functions



• Example: IS Organization in

Strategic Mode

- High Need for New Information

Technology for competitive

advantage

- High Need for Reliable & Secure

Information Technology for

business operations

- Strategically dependent on IT to

enable new business strategies



• Three Types of IT Resources (Figure 1.1 – based on Ross et al.)

- Technology Infrastructure: Computers, software and networks

that enable an organization to conduct business and share

information across organizational units as well as business partners

- Human Resources: IT professionals and managers who have the

needed mix of technology, business and interpersonal skills to plan

for, design and manage the other IT resources

- Business/IT Relationships: Established relationships between

business and IT workers to ensure that the other IT resources are

aligned with the business needs


IT LEADERSHIP ROLES

Chief Information Officer (CIO):

A firm’s high-level general IT manager with both technology

and business leadership experience. Together with the

organization’s executive management team the CIO ensures the

alignment of IT resources with business goals and plans for

integration of IT for strategic advantage.

• In many organizations, the senior IT leader is a CIO.

• IT leaders have to work closely with the senior managers o keep the

company’s IT resources aligned with the business goals


Copyright

• All rights reserved. No part of this publication may be reproduced, stored in a

retrieval system, or transmitted, in any form or by any means, electronic,

mechanical, photocopying, recording, or otherwise, without the prior written

permission of the publisher. Printed in the United States of America.

Copyright © 2012 Pearson Education, Inc.

Publishing as Prentice Hall

ch1 - managing it in a digital world

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