Chapter 1liush/BDSS/valacich_ist5_pp_01.pdf · Term coined by Peter Drucker in 1959 ... (see Chapter 9) ... (Valacich & Schneider) 5/e Copyright © 2012 Pearson Education, Inc. Published

IS Today (Valacich & Schneider) 5/e Copyright © 2012 Pearson Education, Inc. Published as Prentice Hall8/28/2012

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The iPad is Apple’s latest gadget.

Chapter 1Managing in the Digital World


Learning Objectives1-2

1. Describe the characteristics of the digital world and the advent of the information age.

2. Define globalization, describe how it evolved over time, and describe the key drivers of globalization.

3. Explain what an information system is, contrasting its data, technology, people, and organizational components.

4. Describe the dual nature of information systems in the success and failure of modern organizations.

5. Describe how computer ethics impact the use of information systems and discuss the ethical concerns associated with information privacy, accuracy, property, and accessibility.









The Three Waves of Change

The Third Wave by Alvin Toffler describes three phases or “waves of changes”.

First wave A civilization based

on agriculture and handwork

Relatively primitivestage

Lasted thousands of years

Luddites opposedtechnology.

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The Three Waves of Change (cont’d)1-5

Second wave The Industrial

Revolution

Began at the end of the 18th century and lasted about 150 years

Third wave The Information Age

Information becomes the currency

The printing press gave birth to the information age.


Information Systems Today1-6

The Knowledge Worker Term coined by Peter Drucker in 1959 An individual who is relatively well educated and who creates,

modifies, and/or synthesizes knowledge as a fundamental part of a job

Knowledge Society New Economy/Digital World

Digital Divide—those with access to information technology have great advantages over those without access.


The Knowledge Society1-7

Information is now as important as land, labor,and capital resources.


• Globalization is the integration of economies throughout the world, enabled by technological progress.

• Globalization can be seen in visible economic, cultural, and technological changes.

Characteristics of the Digital World1-8









Globalization: Economic Changes1-10

Economic Changes Increases in international trade, development of global

financial systems and currency, and outsourcing of labor


Globalization: Cultural Changes1-11

Cultural Changes Increased multiculturalism through TV and movies;

international travel and immigration; ethnic foods; Facebook, FarmVille, Twitter, and YouTube


Globalization: Technological Changes1-12

Technological Changes Low-cost computing platforms and communication

technologies; e-mail, Skype, and instant messaging; low-cost global telecommunications infrastructure; global patent and copyright enforcement


Globalization: 1.0, 2.0, 3.01-13


Key Factors Enabling Globalization 3.0

1. November 9, 1989—The Fall of the Berlin Wall

2. August 9, 1995—Release of Netscape Web Browser

3. Work Flow Software

4. Uploading

5. Outsourcing

6. Offshoring

7. Supply Chaining

8. In-Sourcing

9. In-Forming

10. The Steroids

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Triple convergence:

1.Enablers work together, enhancing collaboration2.Move from vertical to horizontal collaboration3.Inclusion of China, India, and Soviet Union


The Rise of Outsourcing

Many organizations are downsizing, or “rightsizing”

Outsourcing—farm IS functions to other companies

Offshoring—outsource to foreign countries

Reasons: To reduce or control costs

To free up internal resources

To gain access to world-class capabilities

To increase revenue potential of the organization

To reduce time to market

To increase process efficiencies

To be able to focus on core activities

To compensate for a lack of specific capabilities or skills

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Information Systems: Definition1-17

Combination of five key elements: People Hardware Software Data Telecommunications

networks


Data: The Root and Purpose of Information Systems1-18

Distinction between: Data—raw, unformatted information Information—data that is transformed to have a meaning Knowledge—ability to understand information, form

opinions, and make decisions or predictions


The Components of Information Systems1-19

Hardware—CPU, disk drives, monitors, keyboards, and so on

Software—provide hardware with processing instructions

Telecommunications networks—allow computers to

share information and services

Information System Computer Information System


People: The Builders and Managers of IS1-20

Career opportunities are strong and expected to grow.

U.S. Bureau of Labor Statistics: Employment for computer and IS managers will grow faster than the average for all occupations through 2016.

Median annual earnings of IS managers in May 2009 were $113,720.

Starting salary offers for IS majors, with one year or less of experience, averaged $54,038.

Some titles: systems analysts, systems programmers, systems operators, network administrators, database administrators, systems designers, systems managers, and chief information officers


Best Jobs for the Next Decade1-21


IS Management Job Titles and Job Descriptions1-22


IS Professional Core Competencies1-23

Technical competency Hardware, software, networking

Business competency Business integration, managing people and projects,

social skills, verbal and written communication

Systems competency Systems integration, development methodologies,

critical thinking, problem solving


Hot Skills for 2010 and Beyond1-24


Hot Skills for 2010 and Beyond1-25


Organizations: The Context of IS1-26

Organizations use information systems to: be more productive and profitable gain competitive advantage reach more customers improve service to their customers

True for all types of organizations Professional Social Religious Educational Governmental


Types of Info Systems Used in Organizations1-27


Types of Info Systems Used in Organizations (Cont’d)1-28


Organizing the IS Function1-29

Early History: Poor Service and Worse Attitudes Early systems were cumbersome to use, over budget,

and late.

The Rise and Fall of End-User Development Users developed their own applications or improved

existing systems. Today’s complex systems designed by professionals

(see Chapter 9)

The Modern Information Systems Organization Attitudes changed and service mentality emerged


End-User Development1-30

The advent of the IBM PC and early applications packages led to end-user development.


The Spread of Technology in Organizations1-31

IS personnel tend to spend most of their time out in the business unit.

IS personnel often have dual-reporting relationships—reporting to both the central IS group and the business function they serve.

Clearly a need for people who know the technology side and the business side of the business









The Dual Nature of IS1-33

IS can help you or hurt you.

Toyota Prius—The failure (with redemption) Braking system software glitch Severely blemished Toyota’s reputation for safety and quality Fortunately, dealerships could easily install new software to fix

the problem

FedEx—The success $ 32 billion family of companies—largest express

transportation company Information hub for business where managing information is

the business


IS for Competitive Advantage1-34

Both FedEx and Toyota were developing strategic information systems.

Purpose of strategic information systems is to help gain or sustain competitive advantage.

More about using IS for strategic advantage is discussed in Chapter 2.


Why Information Systems Matter1-35

Nicholas Carr article—“IT Doesn’t Matter” IT is no longer a source of advantage on the firm level.

Companies should focus IT on cost reduction and risk mitigation.

Many experts disagree with his arguments Abbie Lundberg—Interview with Carr

Don Tapscott—“The Engine That Drives Success: The Best Companies Have the Best Business Models Because They Have the Best IT Strategies”

Many successful companies use IT to support a unique business strategy.









Computer Ethics

Key Ethical Concerns Information Privacy

Information Accuracy

Information Property

Information Accessibility

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Information Privacy1-38

What information should you have to reveal?

Information you might want to keep private: Social security number Medical history Family history

Identity theft Fastest growing

“information” crime Biometrics for better

protection


Information Privacy (cont’d)1-39

Companies seem to know about our every move—how much information do we need to reveal?

Amazon.com is famous for personalization

What are the costs?


How to Maintain Your Privacy Online1-40

Review the privacy policy of the company with which you are transacting.

The policy should indicate: What information is being gathered about you. How the seller will use this information. Whether and how you can “opt out” of these practices.

Additional tips: Choose Web sites monitored by independent organizations. Avoid having cookies left on your machine. Visit sites anonymously. Use caution when requesting confirmation e-mail.


Information Accuracy1-41

Ensuring of the authenticity and fidelity of information

High costs of incorrect information Banks Hospitals

Example: a software error in a radiation therapy device caused massive overexposure, causing multiple deaths and injuries


Information Property1-42

Selling information about people has become a big business.

Who owns information about individuals?

How can this information be sold and exchanged?


Data Privacy Statements1-43

Company maintaining the database with customer information legally owns it Is free to sell it

Cannot sell information it agreed not to share

Must insure proper data handling practices

Social networking complicates matters Complexity of privacy settings

Friends can tag you without your knowledge.


Information Accessibility1-44

Who has the right to monitor the information?

Example: e-mail monitoring at the workplace by employers

Electronic Communications Privacy Act (ECPA) offers far stronger support for voice mail than for e-mail communications.


Need for a Code of Ethical Conduct1-45

Issues: changing photographs, using school computers for personal use, compiling information about shopping patterns and credit history

Many businesses have guidelines for appropriate use.

Universities endorse guidelines proposed by EduCom.


Need for a Code of Ethical Conduct (cont’d)1-46

Responsible computer use (based on work of the Computer Ethics Institute) prohibits:

1. Using a computer to harm others2. Interfering with other people’s computer work3. Snooping in other people’s files4. Using a computer to steal5. Using a computer to bear false witness6. Copying or using proprietary software without paying for it7. Using other people’s computer resources without

authorization8. Appropriating other people’s intellectual output


Digital Divide1-47

The gap between people who are computer literate and have access to the Internet and those who do not

Strong linkage between computer literacy and a person’s ability to compete in the information age

Good news: the digital divide in America is rapidly shrinking.

Still, people in rural communities, the elderly, people with disabilities, and minorities lag behind national averages.

One Laptop per Child (OLPC): global project that attempts to distribute low-cost laptops to children in developing countries


End of Chapter Content1-48


Managing in the Digital World: Apple Computer

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April Fools’ Day 1976 Stephen Wozniak and Steven Jobs officially formed

the Apple Computer Company.

Both dropped out of college to build computers.

The Apple I debuted shortly after the company was formed and sold for $666.66.

Apple II’s 17-year life span is a record within the computer industry.

Highs and lows Failures—Lisa, Apple III

Successes—Macintosh (with AppleMouse II), iMac, Mac OS X

iPod, iPhone, and iPad

Problems—environmental concerns, Jobs’ health


WHEN THINGS GO WRONG

Failure: The Path to Success?

Management consultant Tom Peters tells managers that a company’s survival depends on employees who

fail repeatedly as they try new ideas

In this spirit, Wired magazine in 2008 celebrated Apple’s greatest failures: Newton operating system

Pippin game player

Twentieth Anniversary Macintosh

Macintosh television

PowerMac G4 Cube

Apple IIc

Puck mouse

Lisa

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NET STATS

Worldwide Internet Usage1-51

In 2010, about 14.4 percent of active Internet users were located in North America.

Internet usage: Highest—North America: 76.2 percent of population Lowest—Africa: 8.7 percent of population


COMING ATTRACTIONS

Real-Time Language Translation

Universal language translator may not be so far away.

In July 2009, Sakhr Software and Dial Directions introduced an iPhone app to translate between Arabic and English speech.

Google is working on a new translation technology that can convert spoken words into a different language in real time.

Despite “huge progress recently,” it’s still difficult to recognize various accents.

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ETHICAL DILEMMA

Online Rights Not Always Universal1-53

• Governments in some countries regulate access to information on the Web (e.g., China).

• Reporters Without Borders call this behavior unethical.

• In 2010, Google decided to stop censoring its search results after it was hacked by people who tried to spy on Chinese dissidents.

• Responses from other companies are mixed.

• Who owns Web-posted data?


POWERFUL PARTNERSHIPS

The Two Steves—Jobs & Wozniak1-54

Knew each other in high school

Started selling Apple computers in 1976

Both left Apple in 1985.

In 1996 Jobs returned to become Apple’s CEO.


Guerilla Wi-Fi Helps to Bridge the Divide1-55

Digital divide is the “haves” and the “have-nots” in the IT world.

One Laptop Per Child (OLPC) attempted to overcome this.

Meraki Network was founded to provide affordable Wi-Fi for these new computers. Small wireless routers

Network administration can provide Internet connection for, perhaps, as low as $1 per month.

Mobile services will also help to bridge the digital divide.


INDUSTRY ANALYSIS

Business Career Outlook1-56

Globalization trend is increasing the need for “Global Skills”—What can you do? Gain international experience Learn more than one language Sensitize yourself to global cultural and political

issues

In addition—Immerse yourself into the culture: Read books and newspapers. Talk to people who know the culture. Watch locally produced television. Share meals with local workers. Learn key phrases in the language.


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

Chapter 1liush/BDSS/valacich_ist5_pp_01.pdf · Term coined by Peter Drucker in 1959 ... (see Chapter 9) ... (Valacich & Schneider) 5/e Copyright © 2012 Pearson Education, Inc. Published

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