“You can’t just ask people what they want and then try to give it to them. By the time you get it built, they’ll want so

1. 1 Chapter Managing in the Digital World “You can’t just ask people what they want and then try to give it to them. By the time you get it built, they’ll want something else” Steve Jobs, Apple Computer (on pleasing customers) Information Systems Today: Managing in the Digital World

2. Learning Objectives Information Systems Today: Managing in the Digital World

3. Characteristics of the Digital World • 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 Information Systems Today: Managing in the Digital World

4. The Knowledge Society Information is now as important as land, labor and capital. Information Systems Today: Managing in the Digital World

5. Globalization • Globalization is the integration of economies throughout the world, enabled by technological progress. • Globalization manifests itself through changes in economy, cultures and technology. Information Systems Today: Managing in the Digital World

6. Information Systems: Definition • Combination of five key elements: • People • Hardware • Software • Data • Telecommunications networks Information Systems Today: Managing in the Digital World

7. Data: The Root and Purpose of Information Systems (I) • Distinction between: • Data – raw, unformatted information • E.g.: 5433333353 • Information – data that is transformed to have a meaning • E.g.: (543) 333-3353 • Knowledge – body of governing procedures used to organize or manipulate data • Wisdom – accumulated knowledge Information Systems Today: Managing in the Digital World

8. IT:The Components of Information Systems • Relationship of computer-based information systems to information technology and technology Information Systems Today: Managing in the Digital World

9. Careers in IS:Evolution of the CIO • Chief Information Officer (CIO) – job title became popular in 1980s • Early 1990s – people joked that CIO stands for “Career Is Over” Information Systems Today: Managing in the Digital World

10. The CIO Today • Most large and midsize organizations have a CIO • Rob Carter of FedEx – CIO of the year (2006) Information Systems Today: Managing in the Digital World

11. What Makes IS Personnel Valuable? • Integrated knowledge and skills in three areas: • Technical Competency - skills in hardware, software, networking and security • Business Competency – understanding of the nature of the business; this is key in addition to the technical competency • System Competency – understanding of how to build and integrate large scale systems Information Systems Today: Managing in the Digital World

12. Organizations:The Context of IS • Many different types of systems are used in organizations • E.g.: transaction processing systems, decision support systems, intelligent systems, etc. • These systems used to be cleanly categorized – now the boundaries are fading due to: • Internetworking • Systems integration Information Systems Today: Managing in the Digital World

13. Other Issues Facing the IS Function • The spread of technology in organizations • Downsizing (rightsizing) and Outsourcing • Career prospects and opportunities • Need for people within organizations with analyst skills Information Systems Today: Managing in the Digital World

14. 2 Chapter Valuing Information Systems Investments “The most important discoveries of the next 50 years are likely to be ones of which we cannot now even conceive.” Sir John Maddox, 1999 Information Systems Today: Managing in the Digital World

15. Learning Objectives Information Systems Today: Managing in the Digital World

16. Valuing Information Systems • Information systems can be used in three ways to add value to an organization: • Automating • Informating • Strategizing Information Systems Today: Managing in the Digital World

17. Strategizing: Five Types of Organizational Strategies • Organizational strategies define the way in which a company plans to gain/sustain competitive advantage Information Systems Today: Managing in the Digital World

18. Sources of Competitive Advantage • Best-made product on the market • Superior customer service • Achieving lower costs than rivals • Having proprietary manufacturing technology • Having shorter lead times in research and development projects • Having a well-known brand name and reputation • Giving customers more value for their money Information Systems Today: Managing in the Digital World

19. Value Chain Analysis • Tool used by managers to identify opportunities for gaining competitive advantage Information Systems Today: Managing in the Digital World

20. IS and Value Chain Analysis • Information systems use in adding value: • Use of Internet • Use of Extranet/Intranet Information Systems Today: Managing in the Digital World

21. Productivity Gains • Easy to identify costs with developing an IS • Difficult to identify productivity gains • There are limitation to productivity gains with development of an IS • Why hasn’t productivity increased at the rate of IS investments? Information Systems Today: Managing in the Digital World

22. The Productivity Paradox • Information systems may be used in unintended ways • Web surfing • Junk mail • Games Information Systems Today: Managing in the Digital World

23. Measurement Problems • Benefits difficult to quantify • Wrong things measured • efficiency vs. effectiveness • Example: ATM Information Systems Today: Managing in the Digital World

24. Time Lags • Benefits do not always occur at the same time IS is implemented • Some IS/IT implementation requires people to gain experience • System must be integrated with existing systems Information Systems Today: Managing in the Digital World

25. Redistribution • IS may redistribute the pieces of the pie rather than make the pie bigger • Increases in market share come at the expense of the competitors’ market share Information Systems Today: Managing in the Digital World

26. Mismanagement • Bad business model can not be overcome by good information system • IS implementation as temporary fix • Creation of unanticipated bottlenecks Information Systems Today: Managing in the Digital World

27. Making a Successful Business Case • Difficult to quantify benefits of IS • Money doesn’t grow on trees • Need to make a strong business case • Based on • Faith • Fear • Facts Information Systems Today: Managing in the Digital World

28. Porter’s Five Forces Model • Framework used to analyze competition within an industry Information Systems Today: Managing in the Digital World

29. Successful Innovation is Difficult • Innovation is often fleeting • The advantages gained from innovations are often short lived • Innovation is often risky • Sometimes even superior products can lose the race • Betamax vs. VHS tapes • Innovation choices are often difficult • Foreseeing the future is not always possible • In 1994 the Internet was not given much attention Information Systems Today: Managing in the Digital World

30. The Innovator’s Dilemma • Disruptive innovations • New technologies, products, or services that eventually surpass dominant technologies • Online vs. brick and mortar retailing • Automobiles vs. horses • CDs vs. records • MP3 vs. CDs • Undermine effective management practices Information Systems Today: Managing in the Digital World

31. Implementing the Innovation Process • E-Business Innovation Cycle • The key to success is the extent of IS use in timely and innovative ways Information Systems Today: Managing in the Digital World

32. 3 Ways to Think About Investments in Disruptive Innovations • Put technology ahead of strategy • Technology is so important to success it needs to be considered first • Strategy is developed afterwards • Put technology ahead of marketing • Rapid development of technology makes it impossible for people to know what they want • Innovation is continuous • New technologies are constantly being developed Information Systems Today: Managing in the Digital World

33. 1 Technology Briefing Information Systems Hardware Information Systems Today: Managing in the Digital World

34. Learning Objectives Information Systems Today: Managing in the Digital World

35. Key Elements of Information Systems Hardware • Input Devices • Used to enter information into a computer • Processing Devices • Transform inputs into outputs. • Output Devices • Deliver information to users in a usable format Input: Mouse and Keyboard Output: Monitor Processing: CPU Information Systems Today: Managing in the Digital World

36. Moore’s Law • In the 1970s Dr. Gordon Moore from Intel hypothesized that processing performance would double every 18 months • Reduction of feature size Information Systems Today: Managing in the Digital World

37. Supercomputers • Users: 1-to-many • Size: Automobile – multiple rooms • Typical use: Scientific research • Memory: 500+ GB • Cost: $1-20 million Information Systems Today: Managing in the Digital World

38. Mainframes • Users: 1000+ • Size: Refrigerator • Typical use: Large general purpose business & gov’t • Memory: <100+ GB • Cost: $1-10 million Information Systems Today: Managing in the Digital World

39. Midrange Computers • Users: 5-500 • Size: File cabinet • Typical use: Midsize general purpose business • Memory: <20 GB • Cost: $10,000-100,000 Information Systems Today: Managing in the Digital World

40. Microcomputers or PCs • Users: 1 • Size: handheld – fitting on desktop • Typical use: personal productivity • Memory: 512MB - 2GB • Cost: $200-5,000 Information Systems Today: Managing in the Digital World

41. Portable Computers • Notebook computers • Light weight • Battery powered • Limited expandability • Docking stations Information Systems Today: Managing in the Digital World

42. Tablet PCs • Type of notebook that accepts input from an electronic pen • Slate model • Convertible model Information Systems Today: Managing in the Digital World

43. Handheld Computers • Small computers that can be carried in a pocket • Niche in the portable computers market • Personal digital assistants (PDAs) • Cell phones • Most popular manufacturers • RIM – Blackberry • Palm – Treo Information Systems Today: Managing in the Digital World

44. 2 Technology Briefing Information Systems Software Information Systems Today: Managing in the Digital World

45. Learning Objectives Information Systems Today: Managing in the Digital World

46. Key IS Software Components • Software • Programs • Sets of instructions • Allow the hardware components in the computer system to communicate • Two basic types: • Systems Software/Operating System • Application Software Information Systems Today: Managing in the Digital World

47. Systems Software • Controls the basic operations of computer hardware • Common functions: • Booting • Reading programs into memory • Managing program and file storage • Maintaining the structure of directories • Formatting disks • Controlling the computer monitor • Sending documents to the printer Information Systems Today: Managing in the Digital World

48. Operating System • Coordinates: • peripherals • application software • users • Also used in embedded devices • Written in assembly language • Performs day-to-day operations Information Systems Today: Managing in the Digital World

49. The OS Acts as a Manager Information Systems Today: Managing in the Digital World

50. Interfaces: Command vs. GUI • Provided by operating system • Interface Types: • Command-based interface • Menu interface • list of options • Graphical user interface (GUI) Information Systems Today: Managing in the Digital World