CHAPTER 1

The Modern Organization in the Global, Web-Based Environment

CHAPTER OUTLINE
1.1 Business Processes and Business Process Management 1.2 Information Systems: Concepts and Definitions 1.3 The Global, Web-Based Platform 1.4 Business Pressures, Organizational Responses, and IT Support 1.5 Why Are Information Systems Important to You? 1.6 The Plan of the Book

LEARNING OBJECTIVES
Describe business processes and discuss business process management Differentiate among data, information, and knowledge Differentiate between information technology infrastructure and information technology architecture

LEARNING OBJECTIVES (continued)

Describe the global business environment and the new information technology infrastructure Discuss the relationships among business pressures, organizational responses, and information systems

Chapter Opening Case

Moai on Rapa Nui

Homo Conexus
You are the most connected generation in history You practice continuous computing You are surrounded by a personal, movable information network

Personal movable information network

And..laptop in briefcase!

1.1 Business Processes

Business Process Business Process Management

Example of Business Process (Figure 1.1)

The next slide shows an example of a business process: Ordering an E-ticket from an airline Web site

Receive Ticket Order

Traveler
Plan Trip Seats Available YES Reserve Seats Use Credit Card? YES Charge Credit Card Charge OK? Receive e-Ticket YES Confirm Flight(s) Issue e-Ticket NO

Airline Web Site

NO Notify Traveler

Check Flights

NO Frequent Flyer Mileage Sufficient? YES Subtract Mileage NO Notify Traveler

NO

Seats Available? YES

Submit Ticket Order

1.2 Information Systems: Concepts and Definitions

Data Item Information Knowledge

Information Systems: Concepts and Definitions (continued)

Information Technology Architecture Information Technology Infrastructure

1.3 The Global, Web-Based Platform

Best represented by the Internet and the World Wide Web Enables us to connect, compute, communicate, collaborate, and compete everywhere and anytime Operates without regard to geography, time, distance, and language

The Stages of Globalization

(From Thomas Friedman in The World is Flat)

Globalization 1.0 (from 1492 to 1800) Globalization 2.0 (from 1800 to 2000) Globalization 3.0 (from 2000 to the present)

Globalization 1.0
Christopher Columbus

Globalization 2.0 (first half)

Railroads

Steam engine

Globalization 2.0 (second half)

Satellites Fiber optics

Netbook

OpenMoko open source smart phone

Globalization 3.0

3.0

2.0

1.0

Globalization 3.0 (continued)

Schematic Map of the Internet

Thomas Friedmans Ten Flatteners

Fall of the Berlin Wall Netscape goes public Development of work-flow software Uploading Outsourcing Offshoring Supply Chaining Insourcing Informing The Steroids

The Great Convergence

We are in a convergence of three powerful, technological forces: (1) Cheap and ubiquitous computing devices (2) Low-cost, high bandwidth (3) Open standards

The Great Convergence (continued)

In essence, we have computing everywhere and anywhere, anytime and all the time, with access to limitless amounts of information, services, and entertainment.

The Great Convergence (continued)

We have the creation of a global, Webenabled playing field that allows for multiple forms of collaboration the sharing of knowledge and work in real time, without regard to geography, distance, or, in the near future, even language. The field now includes some 3 billion new people, formerly digitally disenfranchised.

1.4 Business Pressures, Organizational Responses, and IT Support

Business Pressures
Market Pressures Technology Pressures Societal Pressures

Market Pressures
The Global Economy and Strong Competition
The Changing Nature of the Workforce Powerful Customers

Technology Pressures
Technological Innovation and Obsolescence Information Overload

Technological Innovation and Obsolescence

Innovation: Early calculator Innovation: Telegraph Innovation: iPod nano Innovation: digital camera Innovation: Credit card digital camera Innovation: Ford Model T Obsolescence: Slide Rule Obsolescence: Pony Express

Obsolescence: old phonograph Obsolescence: old analog camera

Obsolescence: Horse and Buggy

Innovation: Notebook computer with word processing software

Obsolescence: Manual typewriter

Societal Pressures
Social Responsibility Government Regulation and Deregulation Protection Against Terrorist Attacks Ethical Issues

Green IT

Social Responsibility
Bridging the digital divide: One laptop per child initiative Internet over satellite in developing nations Youth computer club in Cuba

Microlenders (ITs About Business 1.2)

Organizational Responses
Strategic Systems Customer Focus Make-to-Order and mass customization E-business and E-commerce

1.5 Why Are Information Systems Important to You?

Information systems and information technologies are integral to your lives Information systems offer career opportunities Information systems are used by all functional areas in an organization

Build Your Own Multinational

(ITs About Business 1.4)

Misinformation about Information Systems Career Opportunities Myth #1: There are no computing jobs. Myth #2: There will be no IT jobs when I graduate. Myth #3: All IT-related jobs are moving offshore. Myth #4: IT salaries are lower due to cheap overseas labor.

1.6 The Plan of This Book

The major objective of this book is to help you understand the roles of information technologies in todays digital organizations. The book is designed to help you think strategically about information systems The book demonstrates how IT supports all of the functional areas of the organization Each chapter introduces a major topic in Information Technology