Professional Documents
Culture Documents
Revolution
Transforming Business and
Management
Class Activity
• Break into groups of four and
– Introduce yourself to the members of your
group and describe yourself to the members of
your group
– Information technology can help companies
to…
– Identify five knowledge- and information-
intense products
VW Mexico and the Internet
• SAP’s ERP system integrated with the web
to reduce part ordering time from 10 to 5
days
– Enabled dealer to use a browser and get order
information through an intranet on the
worldwide web
VW Mexico and the Internet
• SAP’s ERP system integrated with the web
to reduce part ordering time from 10 to 5
days
– Enabled dealer to use a browser and get order
information through an intranet on the
worldwide web
Information Systems…
Can help companies to:
– Extend their reach to faraway locations
– Offer new products and services
– Reshape jobs and work flows, and perhaps
profoundly change the way they conduct
business
Three Powerful Worldwide
Changes
1. Globalization
2. Transformation of industrial economies to
knowledge and information-based
economies
3. Transformation of the enterprise
Globalization
• Management & Control In A Global
Marketplace
• Competition In World Markets
• Global Work Groups
• Global Delivery Systems
*
1.5
Globalization
• Information systems are a powerful ally
enabling businesses to
– Communicate with distributors, suppliers, and
customers worldwide
– Operate 24/7
– Serve local and international reporting needs
– Compete globally by bringing your products
and services to a global market
Transformation of Industrial
Economies…
• To knowledge- and information-based
service economies.
– Increase need for white-collar workers
– Manufacturing has moved to low-wage
countries
– Knew knowledge- and information-intense
products
Transformation of Industrial
Economies…
• To knowledge- and information-based
service economies.
– Increase need for white-collar workers
– Manufacturing has moved to low-wage
countries.
– Knew knowledge- and information-intense
products
Transformation of Industrial
Economies…
• To knowledge- and information-based
service economies.
– Increase need for white-collar workers
– Manufacturing has moved to low-wage
countries. For how long?
– Knew knowledge- and information-intense
products
LABOR FORCE COMPOSITION 1900-1996
70%
60%
% SERVICE
50% % WHITE COLLAR
40% % BLUE COLLAR
30% % FARMING
20%
10%
0%
00
10
20
30
40
50
60
70
80
96
19
19
19
19
19
19
19
19
19
19
YEAR
1.9
Economic Transformation
• Knowledge-based Economies
• Productivity
• New Products & Services
• Knowledge As An Asset
• Time-based Competition
• Shorter Product Life
• Turbulent Environment
• Limited Employee Knowledge Base
*
1.6
Knowledge- and Information-
Intense Products
• Credit cards
• Overnight package delivery
• Worldwide reservation systems
Transformation Of The Enterprise
• Flattening
• Decentralization
• Flexibility
• Location Independence
• Low Transaction Costs
• Empowerment
• Collaborative Work
*
1.7
What is an Information System
• A set of interrelated components that
– Collects data - INPUT
– Transforms data - PROCESS
– Disseminates information - OUTPUT
SYSTEM
FEEDBACK
1.10
FUNCTIONS OF AN INFORMATION SYSTEM
ENVIRONMENT
Customers Suppliers
ORGANIZATION
INFORMATION SYSTEM
FEEDBACK
ORGANIZATIONS TECHNOLOGY
INFORMATION
SYSTEMS
MANAGEMENT
The Key Elements of an
Organization
• People
• Structure and operating procedures
• Politics
• Culture
People
1. Knowledge workers
– Product or service designers and knowledge
creators
2. Data workers
– The paper-pushers
3. Production or service workers
– Producers/service providers
Structure
• Sales and Marketing
• Manufacturing
• Finance
• Accounting
• Human Resources
SOCIOTECHNICAL PERSPECTIVE
*
APPROACHES TO INFO SYSTEMS
TECHNICAL APPROACHES
COMPUTER
OPERATIONS
SCIENCE
RESEARCH
MANAGEMENT
SCIENCE
MIS
SOCIOLOGY
PSYCHOLOGY POLITICAL
SCIENCE
BEHAVIORAL APPROACHES
Behavioral Approach
• Focuses on strategic business integration,
design, implementation, and utilization
• Focuses on changes in
– Attitude
– Management and organizational policy
– Behavior
SYSTEM INTERDEPENDENCE
INTERDEPENDENCE
HARDWARE
1.17
Information System Impacts
• What a business would like to do in five
years is often dependent on what its systems
will be able to do
– Becoming the high-quality or low-cost
producer
– Developing new products
– Increasing employee productivity
SCOPE OF INFO SYSTEMS
• 1950s: TECHNICAL CHANGES
• 60s-70s: MANAGERIAL CONTROL
• 80s-90s: INSTITUTIONAL CORE ACTIVITIES
GROWING IMPORTANCE
*
1.18
Computing Power
• Doubling every 18 months
• The performance of the microprocessors
have improved 25,000 times since their
invention 25 years ago
• Soaring power has spawned powerful
communications networks the largest of
which is…
What You Can Do On The Internet
• Communicate & Collaborate
– e-mail
• Access Information
– Databases
• Discussions
– Chats
• Obtain Information
– FTP
• Entertainment
– Play…, view…, read…, animate…
• Business Transactions
– Advertise, sell, and purchase
1.19
*
The Number of Internet Users
• Greater than 250 million today!
New Options For Organizational
Design
• Flattening Organizations
• Separating Work From Location
• Increasing Flexibility
• Refining Organizational Boundaries
• Reorganizing Work Flows
*
1.20
The Changing Management
Process
• Enterprise Resource Planning
• Electronic Commerce
• Electronic Business
*
1.21
Enterprise Resource Planning
Software Integrates All Facets:
• Planning, Manufacturing, Inventory, Sales,
Finance, Accounting
• Transactions Alert All Involved Factors
• Updates Files, Speeds Action, Cuts Cost
*
1.22
Electronic Commerce
• Internet Links Buyers, Sellers
• Lowers Transaction Costs
• Goods & Services Advertised, Bought,
Exchanged Worldwide
• B2B Transactions Increasing
*
1.23
Electronic Business
• Intranet: Business Builds Private, Secure
Network
• E-mail, Web Documents, Group Software
Extends Effective Communication &
Control
• Virtual Organization
*
1.24
VIRTUAL ORGANIZATION
MANUFACTURING DESIGN
COMPANY COMPANY
FINANCE COMPANY
1.25
CHALLENGE OF INFO SYSTEMS