The role of IT in organisations

Introduction Cor Niemand cor@socialintelligence.co.za 0731646926 Membership: SEO Professional   Member of the Association for SEO Professionals South Africa  Senior Member of the Academy of World Business  Member of the International Council on Knowledge Management (ICKM)  Steering Committee of SCIP South Africa

1. Theoretical basis – Systems theory

1. Theoretical basis – Systems theory Developed in the 1950’s Compensated for the 2 main limitations of the classical approaches –they ignored the relationship between organization & external environment, - focused on specific aspects of the organization at the expense of other considerations Ludwig von Bertalanffy – noted that certain characteristics common to all sciences study of a whole or organism tendency of a system to strive for a steady state of equilibrium an organism is affected by and affects its environment and can thus be seen as a open system Approach views an organization as a group of interrelated parts with a single purpose – to remain in balance Actions of one part influences the other parts and causes imbalances Managers should view organization as whole Depicts open system – but also the four elements – input –transformation – outputs – feedback

1. Theoretical basis – the model Loewen 2001

Information Technology

2. Analyse – one step back Types of resources Natural resources Labour Capital goods Entrepreneurship Information?

2. Analyse – one step back

2. Analyse – one step back Agricultural Age: The period up to the 1800s, when the majority of workers were farmers whose lives revolved around agriculture. Industrial Age: The period from the 1800s to 1957, when work processes were simplified through mechanization and automation.

2. Analyse – one step back Information Age: The period that began in 1957, in which the majority of workers are involved in the creation, distribution, and application of information. Knowledge Workers: Workers involved in the creation, distribution, and application of information.

2. Analyse – one step back

2. Analyse – Information

2. Analyse – Information Data: Raw facts, figures, and details; the values physically recorded in the system. Information: An organized, meaningful, and useful interpretation of data; the meaning of those values as understood by some user of the system. Knowledge: An awareness and understanding of a set of information and how that information can be put to the best use.

2. Analyse – characteristics of Information Human perception Expandable The more we have, the more we use Compressible Concentrate Integrate Summarize Substitutable Natural resources Labour Capital

2. Analyse – characteristics of Information Transportable Instantaneously Diffusive Leak Shareable Own information Reproduce Consumed Transportable Instantaneously

2. Analyse – characteristics of Information Value is impossible to determine in advance Is not lost when given to others Dynamic force for change Multiple life-cycles Only takes on value in context of individual situation

3. Why adapt? With the onset and rapid diffusion of Information and Communication Technology (ICT) in the last decade of the 20th century has brought about a “singularity” – i.e. “an event which changes things so fundamentally that there is absolutely no going back”(Prensky, 2001:Online),

3. What has changed? Reliant on networked computers and advanced telecommunications services The role of markets is important in the New Economy (new space) The New Economy has led to the convergence of industries and media The New Economy leads to a capital-saving technological progress The use of information technology in the New Economy leads to pro-competitive effects There is also acceleration in foreign direct investment in the New Economic order The New Economy can also be perceived as more unstable than previous economic orders The New Economy creates a global platform for fast innovation and fast diffusion The New Economy demands more knowledge and skilled labour, and thus places emphasis on the education sector The consumer plays a major role in all the elements stated.

3. Adapt- New Consumer

3. Adapt- New Consumer Today 50% of the worlds population is under 30 years old Thousands of ways that people can connect instantly The new consumer is accessing, using and sharing information in ways never seen before The New Consumer mantra is all media anytime, any place and on any device. Frank Beacham

3. Adapt- New Consumer “... it is very likely that our students’ brains have physically changed – and are different from ours – as a result of how they grew up. But whether or not this is literally true, we can say with certainty that their thinking patterns have changed.“Mark Prensky in 2001 Always connected Short attention spans Multitasking Disinclination to read: “bites” of information Highly collaborative Technology savvy

3. Adapt- New Consumer tools and toys (IT)

3. Adapt- Information Technology Devices and abilities used in the creation, storage, and dispersal of data and information and knowledge.

3. Adapt- Information Technology Hardware: The computer and its associated equipment. Program: A set of instructions that directs a computer to perform certain tasks and produce certain results. Software: The general term for a set of instructions that controls a computer or a communications network.

3. Adapt- Information Technology System: A set of components that interact to accomplish a purpose. Information System: A business information system designed to produce the information needed for successful management of a structured problem, process, department, or business.

3. Adapt- Information Technology – Computers A system that can be instructed to accept, process, store, and present data and information. Computers come in four sizes: Microcomputers Midrange computers Mainframes Supercomputers

3. Adapt- Information Technology – Computers Five types of Microcomputers: Desktop Computers Notebook Computers/Laptop Computers Tablet PCs Personal Digital Assistants Palm PCs

3. Adapt- Information Technology – Computers Midrange computers and Mainframes: A computer uses to interconnect people and large sets of information. More powerful than a microcomputer, the minicomputer is usually dedicated to performing specific functions. Supercomputers: The most powerful of all computers, supercomputers were designed to solve problems consisting of long and difficult calculations.

3. Adapt- Information Technology – Computer networks Communication: The sending and receiving of data and information over a communications network. Communications Network: A set of locations, or nodes, consisting of hardware, programs, and information linked together as a system that transmits and receives data and information. Data Communication: The transmission of data and information through a communications medium.

LOCAL AREA NETWORK Computers in a small area or building Small business Easy to manage(?) Less room for error WIDE AREA NETWORK Computers linked in remote locations often using satellite Ford or Nissan Require specialist management 3. Adapt- Information Technology – Computer networks – LAN VS WAN

Figure 4.3 Transmission speed measurement unit Figure 4.4 Telecommunications transmission speeds of different media Figure 4.10 Network topologies

3. Adapt- Information Technology – Summary

3. Adapt- Information Technology – Functions

3. Adapt- Information Technology – Functions Capture: The process of compiling detailed records of activities. Processing: The process of converting, analyzing, computing, and synthesizing all forms of data or information. Data Processing Information Processing Word Processing Image Processing Voice Processing Generation: The process of organizing information into a useful form, whether as numbers, text, sound, or visual image. Storage and Retrieval: Storage is the computer process of retaining information for future use. Retrieval is the process by which a computer locates and copies stored data or information for further processing or for transmission to another user. Transmission: The computer process of distributing information over a communications network. Electronic Mail, or E-Mail Voice Messaging, or Voice Mail

3. Adapt- Business Phase 5 - Strategic Info. Man. Phase 4 -Competitor Analysis Phase 3 – Info. Resources Phase 2 – Corporate Tech. Phase 1 – Paper

3. Adapt- Business Phase 1: paperwork management (1890-1959) Physical control of information Internal documents Effective procedures Supervisory & lower middle management levels

3. Adapt- Business Phase 2: management of corporate automated technology (1960-1979) Separate evolution & application of data processing, telecommunications & office-automation technologies Management of information technology Middle management level Senior management function – emphasis on MIS

3. Adapt- Business Phase 3: management of information resources (1975-1985) Technology which breaks down distinctions between data processing, telecommunication & office automation Distributed data processing, local & long distance networks, multifunction workstations Cost-effective management of information resources Recognition of information as a resource by top management?

3. Adapt- Business Phase 4: business-competitor analysis and intelligence (1985+) Beginning of strategic information management International trade competition intensifies External information, human resources Information for competitive advantage

3. Adapt- Business Phase 5: strategic information management (1985+) Knowledge replaces data & information Strategy of enterprise Quality of decision-making Information necessary to improve performance Top management function

3. Adapt- Information management ‘The planning, organization, development and control of the information and data in an organization and of the people, hardware, software and systems that produce the data and information’ Duffy & Assad

3. Adapt- Information management ‘Information management identifies, coordinates and explains information entities in an organization for the purpose of using the characteristics of that information to achieve greater value (of existing information resources) and to gain advantage over competitors’ Taylor & Farrell

Levels of information management 3. Adapt- Information management – Levels of Personal level Individuals need to manage information in personal & work situation Operational level Information to enhance the production of products or provision of services Organizational level Information to enhance productivity & economic viability Strategic level Information to plan for the future

“False alarm: iPhone NOT delayed until October” 16 May 2007 3. Adapt- Case studies –why information management is needed – Apple Engadget posted a story May 16 based on what it thought was an internal Apple email that the iPhone was going to be delayed several months. Engadget sought comment from Apple, but after they didn’t respond for 2 hours, ran the story. Apple market cap fell $4 billion in 6 minutes. Engadget corrected the story and the stock recovered before the close, but many investors lost (and made) big. New Media’s Impact on Communications

3. Adapt- Case studies –why information management is needed – Cadbury 14,000 people joined "bring back Wispa" groups on Facebook “This is the first time that the power of the internet played such an intrinsic role in the return of a Cadbury brand” Tony Bilsborough, spokesman for Cadbury

3. Adapt- Case studies –why information management is needed – HSBC 6,000 students rallied together and threatened to boycott HSBC

3. Adapt- Case studies –why information management is needed – Kryptonite Kryptonite Evolution 2000 bike lock is advertised as providing the ‘toughest bicycle security in moderate to high crime areas. However, on 12th September 2004 a cyclist named Chris Brennan posted a message to the Bike Forums site claiming that the Evolution 2000 lock could be picked in seconds using the end of a ballpoint pen.

3. Adapt- Case studies –why information management is needed – Kryptonite On 14th September a blog, Metafilter, picked up the trail as did Engadget shortly afterwards. Videos showing how to open Kryptonite locks with a ballpoint pen in less than 30 seconds started to flourish on VLOGS (video blogs)

3. Adapt- Case studies –why information management is needed – Kryptonite The story subsequently appeared in the mainstream media 2 days later picked up by the Boston Globe on 16th September. The Associated Press also sparked a media frenzy with powerful headlines such as“Pen mightier than lock” and“Bike lock Fiasco” and classaction lawsuits followed.

Cyclist posted message to Bike Forums site claiming lock could be picked in seconds Blogs pick up thestory and use video blogs to demonstrate Product recalland settledlawsuits 12 September 2004 14 September 2004 23 September 2004 3. Adapt- Case studies –why information management is needed – Kryptonite On 23rd September Kryptonyte announced a product recall worth $10 million and settled a class action lawsuit by offering up to $ 3,000 for each bicycle stolen as a result of the faulty lock. 11 days from blog reaction to settled lawsuits

3. Adapt- Case studies –why information management is needed – Voltaic Backpack In September 2004 entrepreneur Shayne McQuade received an early sample of his company's solar-powered backpack that could charge the owner’s cell phone and other gadgets. He asked a friend - a blogger who runs a small blog called Treehugger - to blog about it.

3. Adapt- Case studies –why information management is needed – Voltaic Backpack Treehugger posted an entry on 4th September which was picked up by CoolHunting and then Gizmodo (high-tech gadget focused blogs). Surfing on the product frenzy, Voltaïc Backpack gained precious media coverage on CNN, NY1, Discovery Channel, BBC, ABC, NBC, FHM, T3, Stuff, Cargo, Organic Style, Plenty, Fortune, Wired, Fast Company, The Guardian, US News and World Report was finally picked up by the Wall Street Journal on 12th December as a last minute Christmas gift idea.

Shayne McQuade asks a friend who runs Treehugger - to blog about it Treehugger runs the storyand it is picked up by media Wall Street Journal lists as Christmasgift idea Sales doubled in third quarter vs. first quarter2005 September 2004 December 2004 September 2005 3. Adapt- Case studies –why information management is needed – Voltaic Backpack During the year Voltaïc also secured various awards including Hippyshopper’s Green Gadget of the Tear and PC News Weekly’s Top 10 Gadgets 2005. This positive word of mouth translated into amazing sales success. In November 2005 Voltaic's founder Shayne McQuade reported that third quarter sales of the $239 backpacks had already doubled the sales achieved in the first half of 2005. 4 months from blog listing to Wall Street Journal

4. Anticipate – Web 3.0 “ ...if I were to guess what Web 3.0 is, I would tell you that it's a different way of building applications... My prediction would be that Web 3.0 will ultimately be seen as applications which are pieced together. There are a number of characteristics: the applications are relatively small, the data is in the cloud, the applications can run on any device, PC or mobile phone, the applications are very fast and they're very customizable. Furthermore, the applications are distributed virally: literally by social networks, by email. You won't go to the store and purchase them... That's a very different application model than we've ever seen in computing.”Eric Schmidt, CEO of Google At the Technet Summit in November 2006, Jerry Yang, founder and Chief of Yahoo, stated: “You don't have to be a computer scientist to create a program. We are seeing that manifest in Web 2.0 and 3.0 will be a great extension of that, a true communal medium…the distinction between professional, semi-professional and consumers will get blurred, creating a network effect of business and applications. ” —Jerry Yang

4. Anticipate – Web 3.0 Nova Spivack defines Web 3.0 as the third decade of the Web (2010–2020) during which he suggests several major complementary technology trends will reach new levels of maturity simultaneously including: Transformation of the Web from a network of separately siloed applications and content repositories to a more seamless and interoperable whole. ubiquitous connectivity, broadband adoption, mobile Internet access and mobile devices; network computing, software-as-a-service business models, Web services interoperability, distributed computing, grid computing and cloud computing; open technologies, open APIs and protocols, open data formats, open-source software platforms and open data (e.g. Creative Commons, Open Data License); open identity, OpenID, open reputation, roaming portable identity and personal data; the intelligent web, Semantic Web technologies such as RDF, OWL, SWRL, SPARQL, GRDDL, semantic application platforms, and statement-based datastores; distributed databases, the "World Wide Database" (enabled by Semantic Web technologies); and intelligent applications, natural language processing., machine learning, machine reasoning, autonomous agents.

4. Anticipate – my vision

4. Anticipate – far fetched? Professor Kevin Warwick University of Reading Monday 24th August 1998, at 4:00pm Computer to monitor

5. Lead- the link According to Kaye (1995:6) “in modern times information has acquired a new status and importance as an organisational resource”. “a rough estimate of the typical costs in not having an explicit information architecture is 10% of the organisations total expenses” Evernden & Evernden (2003:22). According to Evernden & Evernden (2003:14) “dealing in information without information architecture is like keeping track of finances and transactions without an accounting system”

5. Lead- the link “IA is about using information as raw material in the service of architecture for a new contextual reality” Hinton (2009:47)

5. Lead- the link

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The role of IT in organisations

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