CHAPTER 1

The Modern Organization in the Global, Web-Based Environment

CHAPTER OUTLINE
1.1 Business Processes and Business Process Management 1.2 Information Systems: Concepts and Definitions 1.3 The Global, Web-Based Platform 1.4 Business Pressures, Organizational Responses, and IT Support 1.5 Why Are Information Systems Important to You? 1.6 The Plan of the Book

LEARNING OBJECTIVES
Describe business processes and discuss

business process management Differentiate among data, information, and knowledge Differentiate between information technology infrastructure and information technology architecture

LEARNING OBJECTIVES (continued)

Describe the global business environment

and the new information technology infrastructure Discuss the relationships among business pressures, organizational responses, and information systems

Chapter Opening Case

Moai on Rapa Nui

Homo Conexus
You are the most connected generation in

history You practice continuous computing You are surrounded by a personal, movable information network

Personal movable information network

And..laptop in briefcase!

1.1 Business Processes

Business Process Business Process Management

Example of Business Process (Figure 1.1)

The next slide shows an example of a business process: Ordering an E-ticket from an airline Web site

Traveler
Plan Trip

Receive Ticket Order Seats Available YES

Airline Web Site

NO Notify Traveler

Check Flights

Reserve Seats Use Credit Card? YES Charge Credit Card NO NO

NO Frequent Flyer Mileage Sufficient? YES Subtract Mileage

NO

Seats Available ? YES

Submit Ticket Order Charge OK? Receive e-Ticket YES Confirm Flight(s) Issue e-Ticket Notify Traveler

1.2 Information Systems: Concepts and Definitions

Data Item Information Knowledge

Data

Information

Knowledge

Wisdom

Next?

Information Systems: Concepts and Definitions (continued)

Information Technology Architecture Information Technology Infrastructure

IT Architecture of Online Travel Agency

IT Components, IT Platform, IT Services, and IT Infrastructure

1.3 The Global, Web-Based Platform

Best represented by the Internet and the

World Wide Web Enables us to connect, compute, communicate, collaborate, and compete everywhere and anytime Operates without regard to geography, time, distance, and language

The Stages of Globalization

(From Thomas Friedman in The World is Flat)
Globalization 1.0 (from 1492 to 1800) Globalization 2.0 (from 1800 to 2000) Globalization 3.0 (from 2000 to the present)

Globalization 1.0
Christopher Columbus

Globalization 2.0 (first half)

Railroads

Steam engine

Globalization 2.0 (second half)

Satellites Fiber optics

Netbook

OpenMoko open source smart phone

Globalization 3.0

3.0

2.0

1.0

Globalization 3.0 (continued)

Schematic Map of the Internet

Thomas Friedmans Ten Flatteners

Fall of the Berlin Wall

Netscape goes public

Development of work-flow software Uploading

Outsourcing
Offshoring Supply Chaining Insourcing Informing The Steroids

Fall of the Berlin Wall

Rise of the European Union

(a consequence of the Fall of the Berlin Wall)

Netscape Goes Public

Marc Andreessen (wrote Mosaic browser and Netscape browser)

Workflow Software

Uploading

The Open Source Movement

(essential ingredient of uploading)

Apache Web server

Linux

The Open Source Movement (continued)

Firefox

Thunderbird

Mozilla

The SeaMonkey Project

Formerly the Mozilla Application Suite

Outsourcing
Outsourcing gained momentum and took off with Year 2000 (Y2K) problem

Offshoring

Call center in India

Supply Chaining

Insourcing

Informing
Its not just

There are MANY other interesting search engines as we see in Chapter 5

The Steroids
Digital
Mobile Virtual

Personal

First Steroid: Computing (processing)

TO

Charles Babbages Difference Engine (1822)

Ultramobile personal computer

Computing (continued storage)

TO

First disk storage unit by IBM (1956) Capacity: 5 megabytes Size: Refrigerator

Sony Micro Vault Thumb Drive Capacity: 2 gigabytes

Second Steroid: Instant Messaging and File Sharing

Instant messaging (example)

File sharing (example)

Third Steroid: Voice over Internet Protocol

Fourth Steroid: Videoconferencing

A telepresence system in a conference room

Videoconferencing (continued)

An individual telepresence system

Videoconferencing and Medicine

New Zealand used Polycom, a leading vendor of telepresence systems, to provide a telemedicine application for children.

Fifth Steroid: Computer Graphics

Sixth Steroid: Wireless Technologies

Using cell phone in motion

Geostationary satellite

Bluetooth phone sunglasses

The Great Convergence

We are in a convergence of three powerful, technological forces: (1) Cheap and ubiquitous computing devices (2) Low-cost, high bandwidth (3) Open standards

The Great Convergence (continued)

In essence, we have computing everywhere and anywhere, anytime and all the time, with access to limitless amounts of information, services, and entertainment.

The Great Convergence (continued)

We have the creation of a global, Web-enabled playing field that allows for multiple forms of collaboration the sharing of knowledge and work in real time, without regard to geography, distance, or, in the near future, even language. The field now includes some 3 billion new people, formerly digitally disenfranchised.

And the result of all this?

See the Power of Technology

1.4 Business Pressures, Organizational Responses, and IT Support

Business Pressures

Market Pressures Technology Pressures Societal Pressures

Business Pressures, Organizational Responses, and IT Support

Market Pressures
The Global Economy and Strong Competition The Changing Nature of the Workforce
Powerful Customers

Technology Pressures
Technological Innovation and Obsolescence

Information Overload

Technological Innovation and Obsolescence

Obsolescence: Slide Rule

Innovation: Early calculator

Technological Innovation and Obsolescence

(continued)

Innovation: Telegraph Obsolescence: Pony Express

Technological Innovation and Obsolescence

(continued)

Innovation: iPod nano

Obsolescence: old phonograph

Technological Innovation and Obsolescence

(continued)

Innovation: digital camera

Innovation: Credit card digital camera Obsolescence: old analog camera

Technological Innovation and Obsolescence

(continued)

Obsolescence: Horse and Buggy

Innovation: Ford Model T

Technological Innovation and Obsolescence

(continued)

Obsolescence: Manual typewriter

Innovation: Notebook computer with word processing software

Information Overload

Societal Pressures
Social Responsibility
Government Regulation and Deregulation Protection Against Terrorist Attacks

Ethical Issues

Green IT

See CBS video on disposal of e-waste

Social Responsibility

One Laptop per Child initiative

Social Responsibility (continued)

Internet over satellite in developing nations

Social Responsibility (continued)

Bridging the Digital Divide

Social Responsibility (continued)

Youth Computer Club in Cuba

Social Responsibility (continued)

Cuban Youth Computer Club mobile unit

Microlenders (ITs About Business 1.2)

Organizational Responses
Strategic Systems
Customer Focus Make-to-Order and mass customization

See Reebok See Bodymetrics video

E-business and E-commerce

1.5 Why Are Information Systems Important to You?

Information systems and information

technologies are integral to your lives

Information systems offer career

opportunities
Information systems are used by all

functional areas in an organization

Build Your Own Multinational

(ITs About Business 1.4)

Misinformation about Information Systems Career Opportunities

Myth #1: There are no computing jobs.
Myth #2: There will be no IT jobs when I

graduate. Myth #3: All IT-related jobs are moving offshore. Myth #4: IT salaries are lower due to cheap overseas labor.

1.6 The Plan of This Book

The major objective of this book is to help you

understand the roles of information technologies in todays digital organizations. The book is designed to help you think strategically about information systems The book demonstrates how IT supports all of the functional areas of the organization Each chapter introduces a major topic in Information Technology

Chapter Closing Case

The Blur XC Carbon