SUBJECT: Managing Information Technology

WEEK: 2
TIME FRAME: 3 HOURS
Note: The lesson and activities are supposed to be read and made on schedule. Submissions
of the activities shall be right after the time frame or within the week schedule.
Learning Objectives:
At the end of the chapters, the students should be able to:
1. Learn current technologies and emerging technology trends for hardware, software, networks
and data.
2. Learn software applications and business intelligence, as well as business applications.

CHAPTER 1: Managing IT in a Digital World

Information Technology (IT):

Computer technology (hardware and software) for processing and storing information and
Communications technology (voice and data networks) for transmitting information

Part I - Technologies available today and emerging technology trends for hardware, software,
networks and data.

Part II - Software applications to support business operations and business intelligence, as well
as e-business applications.

Part III - “Best practices” for acquiring and implementing new systems and managing IT projects

Part IV – Planning and managing an IS department’s resources, as well as managing information

security; social, ethical and legal issues.

 IT has become more pervasive

- IT is not used only by back-office workers, but also front-line workers.
- More and more employees are reliant upon IT for accomplishing their work activities.
 Business Managers, not just IT managers are responsible for IT investments and effective
system utilization.
 By the Year 2000, the total annual cost of IT purchase was more than half of the annual
capital expenditures of businesses in developed countries.
 IT is linking emerging, developing and developed economies, which can help “level” the
economic playing field.
Recent Information Technology Trends

 Computer Hardware: Faster, Cheaper, Mobile

- Computers have become smaller and faster
- Hardware prices have drop
- High growth in small, mobile devices for communications and access to the internet.

Microcomputers – IBM Personal – Personal Digital – Laptop Computers – Smart Phones

(1970’s) Computer Assistants [PDAs] outsell desktops introduced
(1981) (early 1980s) (2005) (2007)

 But in can be hard to predict long-term IT trends….

A. Computer Software: Integrated, Downloadable, Social

 Integrated
- Standardization has enabled more integration
- Many “standards” are just de facto standards ( Microsoft Windows, Office, Internet
Explorer)
- Many companies have benefited from “Enterprise Systems” investments (e.g.,
electronic health records in hospitals)
[ Enterprise Systems: Software packages with integrated modules that pass common
business transactions across groups, division, and geographic locations in “real time”]
 Downloadable
- Bit-size software programs for smartphones downloadable from App stores
- Download speeds have increased so that even large files can be downloaded by users
 Social
- Growth of Web 2.0(social media) applications (such as Facebook, LinkedIn)
- Used by companies for marketing and branding activities
- Collaboration tools connect employees across distance

B. Computer Networks: High Bandwidth, Wireless and Cloudy

- High demand for high speed Internet access
 - Wireless technologies to replace hardwired lines; support for mobile devices
anytime/anywhere.
- Use of Internet to access remote hosts, data storage, and other IT capabilities from the
“Cloud”

New Ways to Compete

 New ways for businesses to use IT to compete on:

- Low cost – Competing with other businesses by being a low-cost producer for a good
or a service.
*Automating transaction time
*Shortening order cycle time
*Providing operational information for decision making
 Differentiation – Competing with other businesses by offering products or services that
customers prefer due to superiority in product innovativeness, quality or customer
service.
*Giving sales personnel information to better serve customers
*Providing just-in-time supplies for customers
*Creating new information-based products
*Allowing product customization by the consumer
 Or Both Low Cost and Differentiation, enabled by IT

New Ways to Work

 New ways for people to work using IT:

1. Telecommuters: Individuals who use mobile technology and/or network connections
to work remotely.
*Pros – Flexibility and Work-life balance.
*Cons – Feelings of being isolated and Concerns about job promotion opportunities.

2. Virtual Teams: Geographically separated work teams whose members communicate

through the use of IT.
*Pros – Workers can be located anywhere.
- Teams can be composed of members with specialized skills from different
business units or companies.
*Cons – Coordination across team members more difficult.
 3. Free Agents: Individuals who choose to contract out their services and are not tied to
an organization.
*Pros – Work may change more than when an employee of a single organization.
*Cons – Lack of benefits and Unpredictability in scheduling and work.

Information Systems (IS) Department – the organizational unit or department that has the
primary responsibility for managing IT

 Information Systems departments can vary greatly across businesses, depending on the
organization’s dependency on IT for:
- Reliable and secure business operations and competitive advantage based on a new
technologies.

A. Example of IS Organization in Support Mode.

- Low need for new information technology for competing.

- Low need for reliable and secure information technology for business operations.
- IT used mostly to support back-office support functions.

B. Example of IS Organization in Strategic Mode.

- High need for new information technology for competitive advantage.

- High need for reliable and secure information technology for business operations.
- Strategically dependent on IT to enable new business strategies.

 Three Types of IT Resources ( see figure 1.1)

1. Technology Infrastructure: Computers, software and networks that enable an

organization to conduct business and share information across organizational units as
well as business partners.
2. Human Resources: IT professionals and managers who have the needed mix of
technology, business and interpersonal skills to plan for, design and manage the other
IT resources.
3. Business/IT Relationships: Established relationships between business and IT
workers to ensure that the other IT resources are aligned with the business needs.