Societal Pressures

(7) Social Responsibility

social issues affecting corporation
ex. Organization problems
some corporation are taking active measures to
respond to social issues and to contribute toward
social improvements, such activities are known
as organizational social responsibility.
Failure to accept S.R.
n result in employee dissatisfaction, a
tarnished corporation reputation with the
public, and some government sanctions.
Ex. SETI@home
Search for Extra Terrestrial Intelligence
MISBUSI Course Notes
(Radiotelescope in Arecibo, Puerto Rico)
Social Responsibility

One Laptop per

Child initiative

MISBUSI Course Notes

Social Responsibility (continued)

Internet over satellite inMISBUSI

developing
Course Notes nations
Social Responsibility (continued)

Bridging the
Digital Divide

MISBUSI Course Notes

 Social Responsibility (continued)

Youth Computer
Club in Cuba

MISBUSI Course Notes

 Social Responsibility (continued)

Cuban Youth
Computer Club
mobile unit

MISBUSI Course Notes

 Societal Pressures

(8) Government regulation and deregulation

- compliance with government regulation costs
companies money, and these additional costs are
eventually passed along to consumers in the
form of higher prices
deregulation – can be blessing to one company and
a curse to another company previously protected
by the regulation.
- increases computation

MISBUSI Course Notes

 Societal Pressures

(9) Ethical Issues

à increasing in volume and in complexity
n ETHICS – refers to standards and values
for judging whether particular conduct in
the work place is right or wrong.
- the use of I.T. is raising many new ethical
issues, ranging from surveillance of
email to the potential invasion of privacy
of millions of customers whose data are
stored in private and public databases.
MISBUSI Course Notes
 Societal Pressures

(10) Protection against Terrorist Attacks – Since

Sept. 11, 2001, organizations have been
under increased pressure to protect
themselves against terrorist attacks.
- IT can help protect businesses by providing
security systems and possibly identifying
patterns of behavior associated with terrorist
activities that will help to prevent terrorist
attacks, including cyberattacks.
MISBUSI Course Notes
 Organizational Responses
(1) Strategic System
- to provide organizations with strategic
advantages in meeting organizational
objectives, enabling them to increase their
market share, to better negotiate with their
suppliers, or to prevent competitors from
entering their markets
Ex. SABRE reservation system developed by
American Airlines
Package Tracking System developed by Federal
Express
MISBUSI Course Notes
 Organizational Responses

(2) Customer Focus and Service

- means paying more attention to customer
and their preferences
Ex. – involve engineering in organization to
better meet customer demands.
- provide trouble shooting advise or help
lines
- use IT to support customer service

MISBUSI Course Notes

 Organizational Responses
(3) Continuous improvement efforts to their productivity and
quality

* Widely used organizational improvement tools are :

(a) JIT – Just-In-time inventory approach
- attempts to reduce costs and improve work flow by
scheduling materials and parts to arrive at a workstation
exactly when they are needed.
- IT makes it easier to implement large and complex JIT
systems.

(b) TQM – Total Quality Management

- is a corporate wide organized effort to improve quality
wherever and whenever possible.
- IT can enhance TQM by improving data, monitoring,
collection, analysis and reporting
- IT can also increase the speed of inspection, raise the
quality of testing and reduce the cost of performing various
MISBUSI Course Notes
quality control activities
 Organizational Responses
(4) Business Process Reengineering
n BPR – the process of introducing a major
innovation in an organization’s structure or
business processes, resulting in the possible
overhaul of the organizations technological,
human, or organization dimension.
à IT provides automation
à IT provides flexibility in management
à IT provides supports rapid and paperless
transaction among suppliers, manufacturers
and retailers.
MISBUSI Course Notes
 Organizational Responses

(5) Team-based structure

- many companies now uses flexible and
temporary organizational structures
focused on specific projects
- it aims to include any members of the
organization who can make a
contribution to the project
n Ex. Computer-based communication
support system
MISBUSI Course Notes
 Organizational Responses
(6) Business alliances
- In response to some of the competitive pressure of
the global economy, many firms are realizing that
alliances with other firms, even competitors, can be
very beneficial
n Ex. Several types of alliances – sharing resources,
establishing permanent suppliers-company
relationships, and creating joint research efforts.
n Ex. KEIRETSU (Japanese term) – amore
permanent type of business alliance that links
manufacturers, suppliers, and finance corp.
- can be heavily supported by IT ranging from EDI
(Electronic Data Interchange) to electronic
transmissions of maps and drawing
MISBUSI Course Notes
 Organizational Responses
* Various alliances can result from careful supply
chain management.
à SUPPLY CHAIN MANAGEMENT
- a practice that closely examines every step of
the logistics involved in supplying a
manufacturing firm.
à ENTERPRISE RESOURCE PLANNING (ERP)
- an integrated process of planning and managing
all major business processes with a single client /
server architecture in real time, including
contacts with business partners and with
customers.
MISBUSI Course Notes
Organizational Responses

(7) Electronic Commerce

is a multifaceted concept, ranging from
electronic transfer of funds between buyers and
suppliers, to Internet-based marketing, to
intranet- and extranet- based information
networks for both inter- and intra-
organizational support.

Ex. Some $ 50 billion changes hands over

Internet today. By 2030, it is estimated that this
flow will amount to 4 trillion of today’s dollar.
MISBUSI Course Notes
 Why Are Information Systems
Important to You?
n IS is generally interesting
- to transform traditional organizational
policies
- offer more entrepreneurial opportunities
n Information systems and information
technologies are integral to your lives
- that is, how we work, INTERACT and
TRANSACT

MISBUSI Course Notes

 Why Are Information Systems
Important to You?
n Information systems offer career
opportunities
- demand for IT staff such as
programmers, system analyst, system
programmers and webpage designer.
n Information systems are used by all
functional areas in an organization
- it is vital for every business functions.

MISBUSI Course Notes

Misinformation about Information
Systems Career Opportunities

n Myth #1: There are no computing jobs.

n Myth #2: There will be no IT jobs when I
graduate.
n Myth #3: All IT-related jobs are moving
offshore.
n Myth #4: IT salaries are lower due to cheap
overseas labor.

MISBUSI Course Notes