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Digital Transformation

Technologies
Ts. Ahmad Kamal Bin Hasan Basri
Lecture 1

7 June 2022

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Introduction
• Digital Transformation Technologies (BDT 1014) Tri 2130
• Lecture Schedule:
–Every Tuesdays 8am to 12pm
–15 minute break @ 9:15am and @1045am
• Tutorials:
–Every Tuesdays 2pm - 4pm (Ahmad Kamal)
–Thursdays 2-4pm, 4-6pm (Dr Anusyah/Mr Yaseen)
• Course Plan

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2019-2020

Who am I?
Ts. Ahmad Kamal Bin Hasan Basri (Kamal) is

• Part-time Lecturer- “Digital Transformation


Technologies”, Multimedia University, Cyberjaya,
Jun-July 2022 and Aug-Sep 2022
• Former Director of Digitalisation/IT, HRD Corp
(formerly known as HRDF)
• Former Head of ICT, Khazanah Nasional Berhad
• Former Associate Director, Columbia Video
Network, Columbia University, New York City,
USA

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Chapter 1 Learning Objectives
Information Systems Today
• Describe the characteristics of the digital world and the advent of the
Information Age.

Evolution of Globalization, Societal Issues and Digital Density


• Define globalization, describe how it evolved over time, and describe the key
drivers of globalization. Describe contemporary societal issues of the digital
world, and how increasing digital density is shaping the digital future
Information Systems Defined
• Explain what an information system is, contrasting its data, technology, people,
and organizational components.

Dual Nature of Information Systems


• Describe the dual nature of information systems in the success and failure of
modern organizations.

IS Ethics
• Describe how computer ethics impact the use of information systems and
discuss the ethical concerns associated with information privacy and
intellectual property.
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Information Systems Today

• The Emergence of the Digital World


• Globalization and Societal Issues in the Digital World
• Digital Density and the Digital Future

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The Emergence of the Digital World

• We are living in a digital world with the proliferation of mobile


devices, tablets, iPads, and smart phones
–in the post-PC era, connected devices are replacing
traditional desktop and laptop computers.
–Initially created as consumer devices, tablets are now
commonplace in various professional settings, including
warehouses, showrooms & airplane cockpits
–Apple sold more iPads than some of the PC maker sold
PCs
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The Emergence of the Digital World
Preliminary Worldwide PC Vendor Unit Shipment Estimates for 2020

Company 2020 Shipments 2020 Market 2019 Shipments 2019 Market 2020-2019
Share (%) Share (%) Growth (%)
Lenovo 68,507,000 24.9 63,182 24.1 8.4
HP Inc. 58,357,000 21.2 57,949 22.1 0.7
Dell 45,029,000 16.4 44,095 16.8 2.1
Apple (exclude 22,454,000 8.2 18,337 7.0 22.5
iPad)
Acer Group 16,264,000 5.9 14,743 5.6 10.3
Asus 16,424,000 6.0 14,449 5.5 13.7
Others 48,111,000 17.5 49,797 19.0 -3.4
Total 275,147,000 100.0 262,552 100.0 4.8
Source: Gartner (January 2021)

iPad sales
45,500,000
2020

Source: Lifewire (2021)

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The Emergence of the Digital World
• Changes in technology have enabled new ways of
working and socializing
–in the past, people were bound to a stationary PC to
do essential tasks, they are not bound to any
particular location any more.
• Boundaries between work and leisure time are blurring
–Workdays traditionally had a clear beginning and a
clear end—from when you powered your computer on
to when you turned it off at night.
–Today, many tasks (especially more casual tasks
such as reading or sending emails) can be done at
any time, often in small chunks in between other
tasks, such as when waiting in line at the supermarket
cashier.
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PETER DRUCKER.

• In 1959, Peter Drucker predicted that


Information and information systems
would become increasingly
important, he coined the term
knowledge worker

• Knowledge Workers are typically


professionals who synthesize
knowledge as a fundamental part of
their jobs

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Knowledge Workers and the Knowledge Society
• As Drucker predicted, they are generally paid better than
their prior agricultural and industrial counterparts; they
rely on and are empowered by formal education, yet they
often also possess valuable real-world skills; they are
continually learning how to do their jobs better;
• Knowledge workers make up about a quarter of the
workforce in the United States
• With the growth in the number of knowledge workers and
with their rise in importance and leadership, a
knowledge society would emerge.
• Given the importance of learning to knowledge workers
and the firms that need them, education would become
the cornerstone of the knowledge society.
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Knowledge Workers and the Knowledge Society
• Today, not only knowledge workers use information
systems as integral parts of their work lives; many
“traditional” occupations now increasingly use information
systems— from the GRAB package delivery person using
global positioning system (GPS) technology to take the
best route to deliver parcels to an entrepreneur in Kuala
Kubu Baru who uses an e-commerce site to sell kerepek
ubi pedas and tudung, e.g.,
https://www.janapreneur.com.my
• In essence, (almost) every organization can now be
considered an e-business. An e-business is an
organization that uses information technologies or
systems to support nearly every part of its business.

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Information is a Valuable Resource
Drucker said that
“Possessing knowledge,
he argued, would be as
important as possessing
land, labor, or capital”

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The Rise of the Information Age

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Industrial Revolution

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Video 1

https://www.youtube.com/watch?v=vNySOrI2Ny8

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The Digital Divide
WHAT IS THE DIGITAL DIVIDE?
• Inequality in access to the Internet and ICT is known as
the digital divide
• This gap becomes even wider when we talk about
regions: according to data taken from the Internet portal
World Stats as of December 2021, in Africa only 43.1 %
of its inhabitants had Internet access, compared to
88.4 % of Europeans and 93.4 % of Americans.

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The Digital Divide

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The Digital Divide
• Digital divide – those with access to Information systems
have great advantage over those who do not
– A major ethical challenge facing society
– The gap is even larger in developing countries due to lack
of infrastructure and financial resources

Question:
• Why is digital divide is a problem and provide one example of
the problem?
• What are some of the strategies to bridge digital divide?

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STRATEGIES ON BRIDGING THE DIGITAL DIVIDE
• The UN includes the reduction of the digital divide (SDG 9) in its
Sustainable Development Goals. In many places, initiatives have
been launched to facilitate access to technology such as:
• Digital literacy programs. They instruct people in less-favoured
areas of Internet use to improve their personal well-being.
• Alliance for Affordable Internet (A4AI). This project, led by an
international coalition of governments, businesses and civil society,
aims to lower the cost of broadband in specific areas in Africa, Asia
and Latin America.
• Free Basics. This initiative, promoted by Facebook and six other
technology companies, aims to provide free access to a number of
websites through a mobile application.
• Starlink. This project, promoted by tycoon Elon Musk, is launching
satellites into space to provide high-speed Internet and global
coverage at affordable prices.
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Chapter 1 Learning Objectives
Information Systems Today
• Describe the characteristics of the digital world and the advent of the
Information Age.

Evolution of Globalization, Societal Issues and Digital Density


• Define globalization, describe how it evolved over time, and describe the key
drivers of globalization. Describe contemporary societal issues of the digital
world, and how increasing digital density is shaping the digital future
Information Systems Defined
• Explain what an information system is, contrasting its data, technology, people,
and organizational components.

Dual Nature of Information Systems


• Describe the dual nature of information systems in the success and failure of
modern organizations.

IS Ethics
• Describe how computer ethics impact the use of information systems and
discuss the ethical concerns associated with information privacy and
intellectual property.
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Globalization and Societal Issues in
the Digital World
• Globalization has opened may opportunities due to falling
transportation and telecommunication costs
• Globalization has led to a rapid rise of the middle class in
many developing countries enabling companies to reach
many new customers
• With a decrease in communications costs, global
companies now offer skilled professionals in many areas
–Software development and tax preparation in India
–Call centers in Ireland

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Globalization and Societal Issues in
the Digital World
Video on Globalisation:
https://youtu.be/zfn0XHCfDHA

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The Increased Use of Outsourcing

• One example of globalisation is Outsourcing - the moving


of business processes or tasks (such as accounting,
manufacturing, or security) to another company or
another country—as now companies can outsource
business processes on a global scale
• Companies are outsourcing production to overseas
countries (such as China as you see here) to utilize
talented workers or reduce costs
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Outsourcing
• Tremendous decreases in communications costs is the
primary driver for increase in outsourcing
• Important reasons companies outsource include:
– To reduce or control costs (e.g., lower labour costs)
– To gain access to world-class capabilities
– To increase the revenue potential of the organization
– To reduce time to market
– To increase process efficiencies
– To free up internal resources
– To be able to focus on core activities
– To compensate for lack of specific capabilities or skills

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Outsourcing
• What are some examples of outsourcing in Malaysia that
you are familiar with?
• What are the advantages and disadvantages of
outsourcing?

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Challenges of Globalization
• Operational challenges include
– Political system differences
– Regulatory environments
– Laws and standards
• Geo-economic challenges include
– Differences in infrastructure & Demographics
– Welfare & Workers’ expertise
• Cultural differences such as different languages, beliefs, attitudes,
religions, life focus
• 20 % of the 500 most innovative companies took back projects
previously outsourced to another country.
• Nevertheless, IT outsourcing is big business, with an estimated
market size of US$85.6 billion in 2018 (Kachkovska, 2019).

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Societal Issues in the Digital World
• Demographic changes
– Aging population in developed world

• Resource scarcity
– Limited availability of natural resources

• Urbanization (movement of rural to urban


areas)
– 50% of world’s population live in cities

• Global economic power shifts


– Established economies are losing their
dominance in the world’s economy

• Climate change
Sustainable development will – Global changes in temperatures and
become increasingly important weather patterns.
• Development that meets the needs of the
present without compromising the ability of
future generations to meet their own needs

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Digital Density and the Digital Future

Digital Density:
The amount of connected data per unit of
activity, in that every unit of activity
generates ever more connected data,
enabling new value- added interactions and
business models

• Increasing digital density enables new value-added


interactions and business models
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Understanding the Effects of Increasing
Digital Density – Connections
• Connections
– The past:
▪ between organizations (e.g., using email to send)
–Initially workers tended to use their own devices
primarily for checking email.
▪ between people (making phone calls or visiting social
networking site)
– Now: Possible to connect just about any element of the
physical world to the digital world;
▪ they now use their own devices for various other
important tasks, including customer relationship
management or enterprise resource planning

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Understanding the Effects of Increasing
Digital Density – Connections
• Connections
– Now:
– Mobile devices are frequently (24x7) seen leapfrogging
traditional PCs
▪ Increased mobility using mobile apps
▪ Increased collaboration to the ability to manage a business
in real time—at any time, from anywhere—to changes in the
way new (or existing) customers
▪ Today’s employees are increasingly using their own devices
for work-related purposes
▪ They now use their own devices for various other important
tasks, including customer relationship management or
enterprise resource planning.
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Understanding the Effects of Increasing
Digital Density – Connections
• Connections
– Now:
– Use of BYOD can be both good and bad
▪ Advantages:
– Increased productivity
– Higher retention rates of talented employees,
– Higher customer satisfaction.
▪ Disadvantages
– Concerns related to security or compliance
– Increasing need to support the workers’ own devices

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Mobile Devices • Mobile devices allow
running business in
real time—at any time,
from anywhere

Consumerization of IT
• Many technological innovations are first
introduced in the consumer marketplace
before being used by organizations,
• Businesses must constantly evaluate how a
wide variety of new technologies might
influence their ways of doing business.

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The Internet of Things (IoT)
• The Internet of Things
is a network of a broad
range of physical
objects that can
automatically share
data over the Internet.
• The Industrial Internet
of Things enables the
convergence of
information technology
and operations
technology

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The Internet of Things (IoT)
• Already in 2008, more devices were connected to the internet
than there were people living on earth.
• Fueled by advances in chips and wireless radios and
decreasing costs of sensors in the not-too-distant future
everything that can generate useful information will be
equipped with sensors and wireless radios to connect to other
devices or the cloud
• In other words, anything that can generate data or uses data
can be connected, accessed, or controlled via the internet
(sometimes referred to as “pervasive computing”).
• With the ability to connect “things” such as sensors, meters,
signals, motors, actuators, or cameras, the potential for
gathering useful data is almost limitless.

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The Internet of Things (IoT) - Examples
• The market for smart home technologies (sometimes
called home automation)—technologies enabling the
remote monitoring and controlling of lighting, heating, or
home appliances (such as the Smarter Homes) expected
to reach almost US$140 billion by 2023.
• Video:
https://www.youtube.com/watch?v=1_Jm9suu1GQ&t=16
0s

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The Internet of Things (IoT) - Examples

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The Internet of Things (IoT) - Examples

• Amazon’s Alexa is a next-generation voice-enabled IoT


ecosystem based on the cloud.
• Amazon’s Alexa services have the ability of answering
questions, providing weather and sports forecast, reading
news, streaming music from different medium and many
more.
• Alexa voice interface can be used to control and manage
end devices

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The Internet of Things (IoT) - Examples

• Demo of Amazon Alexa


–Questions to Alexa

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The Internet of Things (IoT) - Examples
Wearable technologies
• Clothing or accessories that incorporate
electronic technologies, such as the Apple
Watch, Samsung’s Galaxy Gear, or the
Fitbit—incorporate various sensors;
• Depending on the device, the sensors
record physiological data such as body
movements or heart rate but also
environmental data such as ambient light,
orientation, or altitude.
• Smartwatches such as the Apple Watch or
Samsung’s Galaxy Gear are designed to
be an extension of the user’s phones
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The Internet of Things (IoT) - Examples
Question:
• What other IoT examples can you think of?

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Understanding the Effects of
Increasing Digital Density – Data

• Big Data is described as extremely large and complex


datasets characterized as being of high volume, variety,
and velocity
• An IDC study estimates that by 2025, the world’s data will
have grown to 175 zettabytes (350 billion 512 GB iPads).
1 zettabytes = 1 trillion gigabytes
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Understanding the Effects of
Increasing Digital Density – Data
What are examples of big data?
• Big data comes from myriad sources -- some examples
are transaction processing systems, customer databases,
documents, emails, medical records, internet clickstream
logs, mobile apps and social networks. It also includes
machine-generated data, such as network and server log
files and data from sensors on manufacturing machines,
industrial equipment and internet of things devices.

• Video: https://www.youtube.com/watch?v=jH44SfUNpWw

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Understanding the Effects of Increasing
Digital Density – Interactions

• Companies in the
Information Age
economy are creating
value not from people
but from data

• Increasing amounts of data will lead to new value-added interactions and


business models. For many organizations today, value is created from data.
• The most valuable organizations in the “old economy” (such as GE or Ford)
have 100,000–300,000 employees, and the largest organizations in the “new
economy” (such as Microsoft or HP) have 50,000–100,000 employees;
• In contrast, modern companies of the digital world (such as Airbnb,
Facebook, or Twitter) have risen to the top with a mere 5,000–15,000
employees by creating value from data
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Understanding the Effects of Increasing
Digital Density – Interactions
• The network effect refers to the notion that the value of a
network increases with the number of other users.
– Grab and Airbnb are examples
• The Internet of Things and the massive amounts of data
generated enable the creation of service-oriented business
models (sometimes referred to servitization), where companies
shift from selling physical products to providing these as
services
– Tire manufacturers now can sell tires as a service
• Other disrupted industries include the financial (e.g., Fintech)
and healthcare (e.g., telemedicine, digital health) industries

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Other Digital World Considerations (1 of 2)
• The API Economy
– One key driver of continuous innovations has been the rise of
application programming interfaces (APIs). API is intermediaries that
provide ways for different components of software to interact and
exchange data or functionality using common web communication
protocols.
▪ Website provider can make parts of its functionality or data
available for others to use
– Business value of API is twofold
▪ Providing the APIs can create new revenue streams whereas
users of the APIs can utilize the functionality to offer value-added
services.
▪ APIs have become commonplace and important
–Akamai, a cloud services company estimated an increase in API
traffic from 47% in 2014 to 83% in 2018
–Google Map’s API integrates mapping functionality into their app to
visualize riders and available vehicles
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Other Digital World Considerations (2 of 2)
• Digital Density and Today’s Workforce
–Creates unlimited potential for innovative products
–Can also pose a variety of challenges operating in the
digital world
–Computer literacy is knowing how to use a computer
and technology
▪ Almost all occupations today involve the use of
computers
▪ Most learning today involve the use of computers and
information technology

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Chapter 1 Learning Objectives
Information Systems Today
• Describe the characteristics of the digital world and the advent of the
Information Age.

Evolution of Globalization, Societal Issues and Digital Density


• Define globalization, describe how it evolved over time, and describe the key
drivers of globalization. Describe contemporary societal issues of the digital
world, and how increasing digital density is shaping the digital future
Information Systems Defined
• Explain what an information system is, contrasting its data, technology, people,
and organizational components.

Dual Nature of Information Systems


• Describe the dual nature of information systems in the success and failure of
modern organizations.

IS Ethics
• Describe how computer ethics impact the use of information systems and
discuss the ethical concerns associated with information privacy and
intellectual property.
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Information Systems Defined
An information system (IS) is the combination of people and information
technology that create, collect, process, store, and distribute useful data.

• Information technology (IT) includes hardware, software, and


telecommunications networks.

• Data: The Root and Purpose of


Information Systems
• Hardware, Software, and
Telecommunications Networks: The
Components of Information Systems
• People: The Builders, Managers,
and Users of Information Systems
• Organizations: The Context of
Information Systems

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Data: The Root and Purpose of
Information Systems

• Data: Just raw facts, unformatted, no meaning, useless


• Information: Data that has been processed and made meaningful
• Knowledge: Ability to understand information to make decisions
and predictions
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Hardware, Software, and Telecommunications
Networks: The Components of Information Systems

• Humankind has always had a need to transform data into


useful information
–Pre-technology: Abacus, slide rule
–Pre-computers: Manual filing systems, filing cabinets
• Computer hardware has replaced the filing cabinet
• Software enables organizations to use the hardware to
share data and services globally
• Rapid evolution of hardware, software, and networking
has enabled people to tie everything together

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People: The Builders, Managers, and
Users of Information Systems
• As the use of Information Systems grow, so does the need for
dedicated IS professionals
Rank Career Job Score (out of 5.0) Median Pay (in US $)

1 Front end engineer 3.9 105,000

2 Java developer 3.9 84,000

3 Data scientist 4.0 108,000

4 Product manager 3.8 118,000

5 DevOps engineer 3.9 107,000

6 Data engineer 3.9 102,000

7 Software engineer 3.6 106,000

8 Speech language pathologist 3.8 72,000

9 Strategy manager 4.3 133,000

10 Business development manager 4.1 78,000

Source: Based on 50 Best Jobs in America for 2020, published by Glassdoor (2020)
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Careers in Information Systems

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What Makes IS Personnel so Valuable?
• A blend of technical, business, and systems skill make IS
professionals in demand in well paying positions

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What Makes IS Personnel so Valuable?
• Technical Competency
– The technical competency area includes knowledge and skills in hardware,
software, networking, and security. In a sense, this is the “nuts and bolts” of
information systems

• Business Competency
– The business competency area is one that sets the IS professional apart from
others who have only technical knowledge and skills
– It is absolutely vital for IS professionals to understand the technical areas and the
nature of the business.
– IS professionals must also be able to understand and manage people and projects,
not just the technology.
– These business skills propel IS professionals into project management and,
ultimately, high-paying middle- and upper-level management positions

• Systems Competency
– Systems competency is another area that sets the IS professional apart from others
with only technical knowledge and skills.
– Those who understand how to build and integrate systems and how to solve
problems will ultimately manage large, complex systems projects as well as
manage those in the firm who have only technical knowledge and skills.
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What Makes IS Personnel so Valuable?
IS Professional Core Competencies

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Hot Skills for the Next Decade
Domain Hot Skills

Business Business—IT alignment; business analysis, enterprise solutions; business process


modeling; project management; third-party provider management; enterprise social
media
Technology Virtualization; cloud computing/infrastructure as a service; cloud integration;
infrastructure and serverless computing; systems analysis and design; network design; systems
services auditing; wireless; telecommunications/VOIP (Voice over Internet Protocol);
database administration; data centers; systems architecture; APIs
Security IT security planning and management; BYOD; governance, risk and compliance;
cybersecurity
Applications Customer-facing application development; mobile app development; web
development; open source; portal technologies; cloud computing; user experience;
legacy systems integration; API integration, interface design, content management
systems
Internet Social media; customer-facing web applications; mobile apps; search engine
optimization; artificial intelligence; web mining; Internet of Things
Business analytics/data AI and machine learning; advanced analytics; data warehousing; data mining;
science unstructured data analysis; data visualization; Big Data

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Organizations: The Context of
Information Systems
• Organizations use IS to be profitable and gain advantages
–Organizations use information systems to become
more productive and profitable, to gain competitive
advantage, to reach more customers, or to improve
customer service.
–This holds true for all types of organizations—
professional, social, religious, educational, and
governmental—and for all types of industries—
medical, legal, manufacturing, and so on.
–Today, popular websites like Facebook.com and
WSJ.com receive millions of visitors every day.

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Categories/Types of Information
Systems Used on Organizations (1 of 2)
Category of System Purpose Sample Application(s)
Transaction Processing Process day-to-day business event data at Grocery store checkout cash register
System the operational level of the organizational with connection to network, student
level of the organization registration system
Management information Produce detailed information to help Inventory management and planning
system manage a firm or part of a firm system, student enrollment management
Decision support system Provide analysis tools and access to Product demand forecasting system,
databases to support quantitative decision loan and investment analysis
making
Intelligent system Emulate or enhance human capabilities AI system for analyzing bank loan
applications, self-driving cars, Siri, Alexa
Business intelligence system Analyze Big Data to better understand Online analytical processing (OLAP)
various aspects of a business system and data visualization
Office automation system Support a wide range of predefined day-to- Word processor, spreadsheet,
(personal productivity day work activities of individuals and small presentation software, email client
software groups
Collaboration system Enable people to communicate, Email system with automated, shared
collaborate, and coordinate with each calendar
other
Knowledge management Enable the generation, storage, sharing, Knowledge portal for finding answers to
system and management of knowledge assets common questions

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Categories of Information Systems
Used on Organizations (2 of 2)
Category of System Purpose Sample Application(s)
Social software Facilitate collaboration and knowledge Social network, connecting colleagues
sharing and friends
Geographic information Create, store, analyze, and manage Site selection for new shopping mall
systems geographical referenced data
Functional are information Support the activities within a specific Planning system for personnel training
systems functional area of the firm and work assignments
Customer relationship Support interaction between the firm and Sales force automation, lead generation
management system its customers
Enterprise resource planning Support and integrate all facets of the Financial, operations, and human
system business, including planning, resource management
manufacturing, sales, marketing, and so
on
Supply chain management Support the coordination of suppliers, Procurement planning
system product or service production, and
distribution
Electronic commerce system Enable customers to buy goods and Amazon, eBay, Nordstrom.com
services from a firm’s website
Mobile app Perform a well-defined function, typically Instagram, Snapchat, WhatsApp, Office
on a mobile device Mobile, Google Pay, Lyft

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Categories of Information Systems
Used on Organizations (2 of 2)
• Question:

Please provide one example for each of the category

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Organizing the Function and the
Spread of Technology in Organizations
• Organizing the IS function
– Old-school IS personnel believed they owned and
controlled the computing resources
– Current day IS personnel take more of a consulting
relationship with users, customers
–Increasingly fast-paced competition is forcing
businesses to regard IS as an enabler for
streamlining business processes, providing better
customer service, and better connecting and
collaborating with various stakeholders inside and
outside the organization

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Organizing the Function and the
Spread of Technology in Organizations
• Spread of technology in organizations
– How integral IS has become to organizations is the extent
to which the technology firmly integrated within various
business units (such as marketing, etc)
– The developers and managers of a particular information
system or subsystem spend most of their time out in the
business unit, along with the users of that particular system.
– Given the trend toward integrating people from the IS staff
into the various business units of the firm and given the need
for people within each of the functional areas of the business
to have technology skills, there is clearly a need for people
who understand both the technology side and the business
side of the organization
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Chapter 1 Learning Objectives
Information Systems Today
• Describe the characteristics of the digital world and the advent of the
Information Age.

Evolution of Globalization, Societal Issues and Digital Density


• Define globalization, describe how it evolved over time, and describe the key
drivers of globalization. Describe contemporary societal issues of the digital
world, and how increasing digital density is shaping the digital future
Information Systems Defined
• Explain what an information system is, contrasting its data, technology, people,
and organizational components.

Dual Nature of Information Systems


• Describe the dual nature of information systems in the success and failure of
modern organizations.

IS Ethics
• Describe how computer ethics impact the use of information systems and
discuss the ethical concerns associated with information privacy and
intellectual property.
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The Dual Nature of Information
Systems (1 of 3)
• Case in Point: An Information System Gone Awry
• Case in Point: An Information System That Works: FedEx
• Information Systems for Competitive Advantage

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The Dual Nature of Information
Systems (2 of 3)
• During the COVID-19 pandemic, online meetings saw a
surge in popularity
• This led to Zoom outages disrupting almost everyone

• Case in Point:
An information
system gone
awry.

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The Dual Nature of Information
Systems (3 of 3)
• Packages travel through an extensive network of
conveyor belts, where they are routed to their
intermediate and final destination

• Case in Point:
An information
system that
works: FedEx

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Information Systems for Competitive
Advantage
• The systems used by Zoom and FedEx are examples of
IS for competitive advantage
–They are large in scope and very complex
–They are critical to the success of the organizations
–They are strategic in nature
–They create efficiencies in their organizations

Copyright © 2015, 2012, 2009 Pearson Education, Inc. All Rights Reserved
Chapter 1 Learning Objectives
Information Systems Today
• Describe the characteristics of the digital world and the advent of the
Information Age.

Evolution of Globalization, Societal Issues and Digital Density


• Define globalization, describe how it evolved over time, and describe the key
drivers of globalization. Describe contemporary societal issues of the digital
world, and how increasing digital density is shaping the digital future
Information Systems Defined
• Explain what an information system is, contrasting its data, technology, people,
and organizational components.

Dual Nature of Information Systems


• Describe the dual nature of information systems in the success and failure of
modern organizations.

IS Ethics
• Describe how computer ethics impact the use of information systems and
discuss the ethical concerns associated with information privacy and
intellectual property.
Copyright © 2015, 2012, 2009 Pearson Education, Inc. All Rights Reserved
IS Ethics
• Information Privacy
• Intellectual Property
• The Need for a Code of Ethical Conduct

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Information Privacy

• Just like the owners of


your neighborhood
bookstore, online
merchants such as
Amazon greet you by
name and personalize
their websites to
individual customers

• Information privacy is concerned with what information an


individual should have to reveal to others

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Information Property on the Web

• The database of intentions is an aggregation of data


about what people want, purchase, like, are interested in,
or are doing; where they are; and whom they know
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How to Maintain Your Privacy Online
Notice/Awareness
• Providing information about what data are gathered,
what the data are used for, who will have access to
the data, whether provision of the data is required or
voluntary, and how confidentiality will be ensured.
• Such information is typically contained in data privacy
statements on a website

Choice/Consent.
• Providing options about what will be done with the
data

Access/Participation.
• Providing customers with means to access data
collected about them, check for accuracy, and
request correction of inaccuracies.

Integrity/Security
• Ensuring integrity of the data (e.g., by using only
reputable sources of data) as well as implementing
controls against unauthorized access, disclosure, or
destruction of data

Enforcement/Redress.
• Providing means to enforce these practices, and/or
for customers to receive remedies, for example,
through self-regulation or appropriate laws and
regulations.
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Intellectual Property

• Copying digital music or photographs is effortless


• Copying someone else’s software for personal use
• The two examples above are illegal and shouldn’t be done
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The Need for a Code of Ethical
Conduct
• Guidelines by the Computer Ethics Institute prohibit the
following
– Using a computer to harm others
– Interfering with other people’s computer work
– Snooping in other people’s files
– Using a computer to steal
– Using a computer to bear false witness
– Copying or using proprietary software without authorization or
compensation
– Appropriating other people’s intellectual output

• The guidelines recommend


– Thinking about social consequences of programs you write and systems
you design
– Using a computer in ways that show consideration and respect
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End of Chapter Content
Managing in the Digital World: Open
Innovation
• Traditional innovation included
– Corporations funded internal research
– Tightly controlled both inputs and outputs
– Customer interactions very limited
– Long time period and millions of dollars wasted
• Open innovation included
– Opening R&D to a broad audience
– Customers, suppliers, others invited to participate
▪ Starbucks introduced “My Starbucks Idea”
▪ Heineken introduced “Innovators Brewhouse”

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Coming Attractions: Memory Crystals
• In sci-fi, characters use devices that resemble large crystals
• Now a reality, researchers at University of Southampton (UK)
have created a nanostructured glass storage device
• Technique uses self-assembling nanostructures written into
fused quartz using tiny femtosecond (one-quadrillionth, or one
millionth of one-billionth, of a second) laser light pulses
• Data are encoded into 5 dimensions (height, length, width,
position, and orientation)
• Results include allowing massive amounts of data to be stored
for long periods of time in an indestructible format thus
preserving our civilization

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Digital Density: Technology (Not)
Included
• Access to technology taken for granted
– The threat of COVID-19 is a perfect example
– Digital divide was manifested with less than 55% of the
population having internet access
– U.S. households earning less than $30k less likely to have
access than wealthy families
– Remote learning suffered
– Many did not have access to telemedicine
• How do we as a society bridge the digital divide before
the next inevitable pandemic?

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Green IT: The Green Internet of
Things
• Past technologies have disrupted business and society for the past
several decades
• Next up? Green IT (for green computing) refers to the practice of using
computing resources more efficiently to reduce environmental impacts
• The Internet of Things (IoT) brings connectivity and IT to the forefront
again poised to revolutionize business and society
• New technologies designed for lo power consumption
• Now, a device just needs to be connected to the Internet to be able to
collect and transmit sensory data
• Internet technologies have disrupted many businesses and social
processes by changing the scope and scale of interactions between
people

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Security Matters: Ransomware
• Security of our business and professional lives are more important
than ever as we live in an online world
• One new tactic, ransomware, seeks to extract money from victims by
planting a virus that renders data on computers useless until a
ransom is paid resulting in the release of the virus
• Examples of the ransomware viruses
– School of Medicine at University of California, San Francisco was forced
to pay $1.4 million ransom to free its network from a virus in 2020
– Healthcare industry had ransomware demands ranging from $1,600 to
$14 million

• With threats like this, individuals and organizations need to keep their
virus protections and backups up to date

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When Things Go Wrong:
Technology Addiction
• In 2018, online gambling was diagnosed as real addiction
• Average adult spends 11 hours daily consuming media
• Average person increasingly distracted by information
technology where doctors argue it is an addiction
• Dopamine, a brain chemical associated with pleasure, is
released when we become addicted to interacting online
• A Microsoft study indicates that our attention span has
fallen from an average of 12 seconds at the turn of the
century

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Ethical Dilemma: The Social and
Environmental Costs of the Newest Gadgets
• Ethical dilemmas are faced every day involving choosing
between two options, each of which involves breaking a moral
imperative
• For most, no definite solutions are available thus we should
think about the consequences of the actions involved in terms
of benefits and harm
• Example: Apple
– Products are designed in California and assembled in China
– Chinese workers pushed to work long hours resulting in over
50,000 resignations per month and up to 14 suicides
– Audit revealed factory workers excessive overtime and faced
health and safety issues

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Industry Analysis: Business Career
Outlook
• There is a shortage of business professionals with the
necessary “global skills” for operating in the digital world
• You can hone your global skills by:
– Gaining international experience
– Learning more than one language
– Sensitizing yourself to global cultural and political issues
• In addition to globalization, the proliferation of information
systems is having specific ramifications for all careers
• No matter what your job focus is, information systems will be
an important part of your future

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Copyright

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