Valacich Ist4e ch01

Chapter 1
Managing in the Digital World

1-1
If we'd given customers what

they said they wanted, we'd have
built a computer they'd have
been happy with a year after we
spoke to themnot something
they'd want now
Steve Jobs,
Apple Computer
IS Today (Valacich & Schneider)

11/20/2014
Copyright 2010 Pearson Education, Inc. Published as Prentice Hall
Learning Objectives
1-2
1. Explain what an information system is, contrasting

its data, technology, people, and organizational
components.
2. Describe types of jobs and career opportunities in

information systems and in related fields.
3. Describe the dual nature of information systems

in the success and failure of modern organizations

11/20/2014
Learning Objectives
1-3

components.



11/20/2014
Information Systems Today

1-4
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

11/20/2014
The Knowledge Society

1-5
Information
is now as
important as
land, labor
and capital
resources.

11/20/2014
Characteristics of the Digital World

1-6
Globalization is the integration of economies throughout

the world, enabled by technological progress.
Globalization manifests itself through changes in
economy, cultures, and technology.

11/20/2014
Globalization: Economic Changes

1-7
Economic Changes
Increase in international trade of goods and services
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Globalization: Cultural Changes

1-8
Cultural Changes
Increased access to other cultures (through TV, Internet,
and so on)
11/20/2014
Globalization: Technological Changes

1-9
Technological Changes
Availability of low-cost communication systems

11/20/2014
Information Systems: Definition

1-10
Combination of five
key elements:
People
Hardware
Software
Data
Telecommunications
networks

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Data: The Root and Purpose of Information Systems

1-11
Distinction between:
Dataraw, unformatted information
Informationdata that is transformed to have a

meaning
Example: 5433333353
Example: (543) 333-3353
Knowledgebody of governing procedures used to

organize or manipulate data
Wisdomaccumulated knowledge

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Data: The Root and Purpose of Information Systems

(contd)
1-12

11/20/2014
IT: The Components of Information Systems

1-13
Relationship of
computer-based
information systems
to information
technology and
technology in general

11/20/2014
IT: The Components of Information SystemsTechnology

1-14
Any machine that can
supplement or
replace human
manual work
Examples:
Heating system
Surgical laser

11/20/2014
IT: The Components of Information SystemsInformation

Technology
1-15
A type of technology that
is controlled by or uses
information

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Example: Manufacturing
robot
IT: The Components of Information SystemsComputerbased IS

1-16
Systems using computers to
provide useful data to

people

11/20/2014
Example: Specific software used

to analyze data
1-16
Learning Objectives
1-17

components.



11/20/2014
People: The Builders and Managers of IS

1-18
Career opportunities are strong and expected to grow

Computer/IT analyst and Computer & IS Manager both in the
top 10 best jobs for the next decade
Median earnings for managers $102,360

11/20/2014
Best Jobs for the Next Decade

1-19

11/20/2014
Careers and Salaries in the IS Field

(National Average)
1-20

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Careers in IS: Evolution of the CIO

1-21
Chief Information Officer (CIO)job title became
popular in 1980s
Early 1990speople joked that CIO stands for Career
Is Over
Primary reasons:
Tightened Budgets
Overblown Expectations

11/20/2014
IS Personnel
1-22
Changing trends
Higher prestige
More women
PAST

11/20/2014
PRESENT
What Makes IS Personnel Valuable?

1-23
Integrated knowledge and skills in three areas:
Technical Competencyskills in hardware, software,
networking, and security
Business Competencyunderstanding of the nature
of the business; this is key in addition to technical

competency
Systems Competencyunderstanding of how to
build and integrate large scale systems

11/20/2014
Hot Skills for 2010 and Beyond

1-24

11/20/2014
Organizations: The Context of IS

1-25
Many different types of systems are used in
organizations
Examples: Transaction processing systems, decision

support systems, intelligent systems, and so on.
These systems used to be cleanly categorized
now the boundaries are fading due to:
Internetworking
Systems integration

11/20/2014
Organizing the IS Function

1-26
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
Todays complex systems designed by professionals
(see Chapter 10)
The Modern Information Systems Organization
Attitudes changed and service mentality emerged
11/20/2014
End-User Development
1-27
The advent of
the IBM PC
and early
applications
packages led to
end-user
development.
Source: http://www.-03.ibm.com/ibm/history/exhibits/pc25/images/6705PH04.jp
11/20/2014
Other Issues Facing the IS Function

1-28
The spread of technology in organizations
Downsizing (rightsizing) and Outsourcing

Career prospects and opportunities
Need for people within organizations with analyst skills

11/20/2014
Learning Objectives
1-29

components.



11/20/2014
The Dual Nature of IS

1-30
IS can make you or break you

London HeathrowThe failure
Original system cost of $400 million
$ 50 million added costs due to problems
FedExThe success
$ 38 billion family of companieslargest express
transportation company
Information hub for business where managing information is
the business

11/20/2014
IS for Competitive Advantage

1-31
Both FedEx and London Heathrow were
developing strategic information systems

Only strategic information systems can help
sustain competitive advantage

11/20/2014
Why Information Systems Matter

1-32
Nicholas Carr articleIT Doesnt Matter

IT no longer a source of advantage on the firm level
Companies should focus IT on cost reduction and risk
mitigation
Many experts disagreed with his arguments
Abbie LundbergInterview with Carr
Don TapscottThe 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

11/20/2014
End of Chapter Content

1-33

11/20/2014
Opening CaseManaging in the Digital World: Apple

Computer
1-34
Apple changed
the way in which

everyday people
use computers
Success of iPod
based on
availability of
customizable
features
11/20/2014
Apple Computers
1-35
Apple has had many successful products and
many failures:
Mac TV 1993
PowerMac G4 Cube
Lisa
Newton
Peters suggest that a companys survival may depend upon those
employees who fail over and over but try new ideas.

11/20/2014
Bionic Contact Lens

1-36
Bionic eye implants for blind and partially blind
people are being developed

Problems that must be solved first:
Plastics for electronic must be
biocompatible
LED must be small enough to fit over the
eye without causing discomfort, and yet
must be functional
Where will the power for the device come
from?

11/20/2014
The Two StevesJobs & Wozniak

1-37
Knew each other in high
school
Both men left in 1985
In 1996 Jobs returned to
Apple

11/20/2014
Worldwide Internet Usage

1-38
In 2008 about 17 percent of active Internet users were
located in the United States

Internet usage:
HighestNorth America: 74 percent of population

LowestAfrica: 5.3 percent penetration of use

11/20/2014
Online Rights Not Always Universal

1-39
Governments in some countries regulate
access to information on the Web (e.g., China)

Reporters Without Borders call this behavior
unethical
What is the role of companies such as
Microsoft in dealing with these governments?
Who owns Web-posted data?
Should the Internet create its own laws?

11/20/2014
Guerilla Wi-Fi
1-40
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
$50 Mini (wireless routers about the size of two
stacked iPhones) can be piggy-backed so that
one Mini connected to the Internet can relay the
connection to other Minis, thus forming a large
network
11/20/2014
Business Career Outlook

1-41
Globalization trend is increasing the need for

Global SkillsWhat can you do?
Gain international experience

Learn more than one language
Sensitize yourself to global cultural and political
issues
In AdditionImmerse yourself into the

culture:
Learn about local food

Watch locally produced television
Read books and newspapers

11/20/2014

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Chapter 1

Managing in the Digital World

If we'd given customers what

IS Today (Valacich & Schneider)

Copyright 2010 Pearson Education, Inc. Published as Prentice Hall

1. Explain what an information system is, contrasting

2. Describe types of jobs and career opportunities in

3. Describe the dual nature of information systems

IS Today (Valacich & Schneider)

Copyright 2010 Pearson Education, Inc. Published as Prentice Hall

1. Explain what an information system is, contrasting

2. Describe types of jobs and career opportunities in

3. Describe the dual nature of information systems

IS Today (Valacich & Schneider)

Copyright 2010 Pearson Education, Inc. Published as Prentice Hall

Information Systems Today

The Knowledge Worker

IS Today (Valacich & Schneider)

Copyright 2010 Pearson Education, Inc. Published as Prentice Hall

The Knowledge Society

IS Today (Valacich & Schneider)

Copyright 2010 Pearson Education, Inc. Published as Prentice Hall

Characteristics of the Digital World

Globalization is the integration of economies throughout

Globalization manifests itself through changes in

economy, cultures, and technology.

IS Today (Valacich & Schneider)

Copyright 2010 Pearson Education, Inc. Published as Prentice Hall

Globalization: Economic Changes

Copyright 2010 Pearson Education, Inc. Published as Prentice Hall

Globalization: Cultural Changes

Copyright 2010 Pearson Education, Inc. Published as Prentice Hall

Globalization: Technological Changes

IS Today (Valacich & Schneider)

Copyright 2010 Pearson Education, Inc. Published as Prentice Hall

Information Systems: Definition

IS Today (Valacich & Schneider)

Copyright 2010 Pearson Education, Inc. Published as Prentice Hall

Data: The Root and Purpose of Information Systems

Informationdata that is transformed to have a

Example: (543) 333-3353

Knowledgebody of governing procedures used to

IS Today (Valacich & Schneider)

Copyright 2010 Pearson Education, Inc. Published as Prentice Hall

Data: The Root and Purpose of Information Systems

IS Today (Valacich & Schneider)

Copyright 2010 Pearson Education, Inc. Published as Prentice Hall

IT: The Components of Information Systems

IS Today (Valacich & Schneider)

Copyright 2010 Pearson Education, Inc. Published as Prentice Hall

IT: The Components of Information SystemsTechnology

Any machine that can

IS Today (Valacich & Schneider)

Copyright 2010 Pearson Education, Inc. Published as Prentice Hall

IT: The Components of Information SystemsInformation

A type of technology that

IS Today (Valacich & Schneider)

Copyright 2010 Pearson Education, Inc. Published as Prentice Hall

IT: The Components of Information SystemsComputerbased IS

Systems using computers to

provide useful data to

IS Today (Valacich & Schneider)

Example: Specific software used