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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 them—not 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

IS Today (Valacich & Schneider)
11/20/2014

Copyright © 2010 Pearson Education, Inc. Published as Prentice Hall

Learning Objectives
1-3

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

IS Today (Valacich & Schneider)
11/20/2014

Copyright © 2010 Pearson Education, Inc. Published as Prentice Hall

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

IS Today (Valacich & Schneider)
11/20/2014

Copyright © 2010 Pearson Education, Inc. Published as Prentice Hall

IS Today (Valacich & Schneider) 11/20/2014 Copyright © 2010 Pearson Education. Published as Prentice Hall . labor and capital resources.The Knowledge Society 1-5 Information is now as important as land. Inc.

cultures. IS Today (Valacich & Schneider) 11/20/2014 Copyright © 2010 Pearson Education. enabled by technological progress.  Globalization manifests itself through changes in economy. Inc. and technology.Characteristics of the Digital World 1-6 • Globalization is the integration of economies throughout the world. Published as Prentice Hall .

Published as Prentice Hall . Inc.Globalization: Economic Changes 1-7  Economic Changes  Increase in international trade of goods and services IS Today (Valacich & Schneider) 11/20/2014 Copyright © 2010 Pearson Education.

Published as Prentice Hall .Globalization: Cultural Changes 1-8  Cultural Changes  Increased access to other cultures (through TV. Internet. Inc. and so on) IS Today (Valacich & Schneider) 11/20/2014 Copyright © 2010 Pearson Education.

Globalization: Technological Changes 1-9  Technological Changes  Availability of low-cost communication systems IS Today (Valacich & Schneider) 11/20/2014 Copyright © 2010 Pearson Education. Published as Prentice Hall . Inc.

Inc.Information Systems: Definition 1-10  Combination of five key elements: People  Hardware  Software  Data  Telecommunications networks  IS Today (Valacich & Schneider) 11/20/2014 Copyright © 2010 Pearson Education. Published as Prentice Hall .

unformatted information   Information—data that is transformed to have a meaning    Example: 5433333353 Example: (543) 333-3353 Knowledge—body of governing procedures used to organize or manipulate data Wisdom—accumulated knowledge IS Today (Valacich & Schneider) 11/20/2014 Copyright © 2010 Pearson Education. Published as Prentice Hall .Data: The Root and Purpose of Information Systems 1-11  Distinction between:  Data—raw. Inc.

Data: The Root and Purpose of Information Systems (cont’d) 1-12 IS Today (Valacich & Schneider) 11/20/2014 Copyright © 2010 Pearson Education. Inc. Published as Prentice Hall .

Inc. Published as Prentice Hall .IT: The Components of Information Systems 1-13  Relationship of computer-based information systems to information technology and technology in general IS Today (Valacich & Schneider) 11/20/2014 Copyright © 2010 Pearson Education.

IT: The Components of Information Systems—Technology 1-14  Any machine that can supplement or replace human manual work  Examples: Heating system  Surgical laser  IS Today (Valacich & Schneider) 11/20/2014 Copyright © 2010 Pearson Education. Published as Prentice Hall . Inc.

Inc. Published as Prentice Hall .IT: The Components of Information Systems—Information Technology 1-15  A type of technology that is controlled by or uses information  IS Today (Valacich & Schneider) 11/20/2014 Example: Manufacturing robot Copyright © 2010 Pearson Education.

Inc. Published as Prentice Hall 1-16 .IT: The Components of Information Systems—Computerbased IS 1-16  Systems using computers to provide useful data to people  IS Today (Valacich & Schneider) 11/20/2014 Example: Specific software used to analyze data Copyright © 2010 Pearson Education.

Describe types of jobs and career opportunities in information systems and in related fields. 3. technology. 2. and organizational components. people. Published as Prentice Hall . Describe the dual nature of information systems in the success and failure of modern organizations IS Today (Valacich & Schneider) 11/20/2014 Copyright © 2010 Pearson Education. contrasting its data. Explain what an information system is. Inc.Learning Objectives 1-17 1.

Published as Prentice Hall .360 IS Today (Valacich & Schneider) 11/20/2014 Copyright © 2010 Pearson Education. Inc.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.

Best Jobs for the Next Decade 1-19 IS Today (Valacich & Schneider) 11/20/2014 Copyright © 2010 Pearson Education. Published as Prentice Hall . Inc.

Published as Prentice Hall . Inc.Careers and Salaries in the IS Field (National Average) 1-20 IS Today (Valacich & Schneider) 11/20/2014 Copyright © 2010 Pearson Education.

Inc.Careers in IS: Evolution of the CIO 1-21  Chief Information Officer (CIO)—job title became popular in 1980s  Early 1990s—people joked that CIO stands for “Career Is Over”  Primary reasons:   Tightened Budgets Overblown Expectations IS Today (Valacich & Schneider) 11/20/2014 Copyright © 2010 Pearson Education. Published as Prentice Hall .

Published as Prentice Hall . Inc.IS Personnel 1-22  Changing trends  Higher prestige  More women PAST IS Today (Valacich & Schneider) 11/20/2014 PRESENT Copyright © 2010 Pearson Education.

this is key in addition to technical competency Systems Competency—understanding of how to build and integrate large scale systems IS Today (Valacich & Schneider) 11/20/2014 Copyright © 2010 Pearson Education.What Makes IS Personnel Valuable? 1-23  Integrated knowledge and skills in three areas:  Technical Competency—skills in hardware. Inc. software. networking. Published as Prentice Hall . and security   Business Competency—understanding of the nature of the business.

Published as Prentice Hall . Inc.Hot Skills for 2010 and Beyond 1-24 IS Today (Valacich & Schneider) 11/20/2014 Copyright © 2010 Pearson Education.

Published as Prentice Hall .  These systems used to be cleanly categorized— now the boundaries are fading due to:   Internetworking Systems integration IS Today (Valacich & Schneider) 11/20/2014 Copyright © 2010 Pearson Education. decision support systems.Organizations: The Context of IS 1-25  Many different types of systems are used in organizations  Examples: Transaction processing systems. and so on. Inc. intelligent systems.

Organizing the IS Function 1-26  Early History: Poor Service and Worse Attitudes  Early systems were cumbersome to use. Published as Prentice Hall . Inc. and late  The Rise and Fall of End-User Development  Users developed their own applications or improved existing systems  Today’s complex systems designed by professionals (see Chapter 10)  The Modern Information Systems Organization  Attitudes changed and service mentality emerged IS Today (Valacich & Schneider) 11/20/2014 Copyright © 2010 Pearson Education. over budget.

Inc.com/ibm/history/exhibits/pc25/images/6705PH04.End-User Development 1-27  The advent of the IBM PC and early applications packages led to end-user development. Source: http://www. Published as Prentice Hall .ibm.-03.jp IS Today (Valacich & Schneider) 11/20/2014 Copyright © 2010 Pearson Education.

Inc.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 IS Today (Valacich & Schneider) 11/20/2014 Copyright © 2010 Pearson Education. Published as Prentice Hall .

technology. Describe the dual nature of information systems in the success and failure of modern organizations IS Today (Valacich & Schneider) 11/20/2014 Copyright © 2010 Pearson Education. Published as Prentice Hall . and organizational components. Explain what an information system is. people. contrasting its data. 3. Describe types of jobs and career opportunities in information systems and in related fields. 2.Learning Objectives 1-29 1. Inc.

Inc. Published as Prentice Hall .The Dual Nature of IS 1-30  IS can make you or break you  London Heathrow—The failure  Original system cost of $400 million  $ 50 million added costs due to problems  FedEx—The success  $ 38 billion family of companies—largest express transportation company  “Information hub for business where managing information is the business” IS Today (Valacich & Schneider) 11/20/2014 Copyright © 2010 Pearson Education.

Inc.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 IS Today (Valacich & Schneider) 11/20/2014 Copyright © 2010 Pearson Education. Published as Prentice Hall .

Why Information Systems Matter 1-32  Nicholas Carr article—“IT Doesn’t 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 Lundberg—Interview with Carr  Don Tapscott—“The 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 IS Today (Valacich & Schneider) 11/20/2014 Copyright © 2010 Pearson Education. Inc. Published as Prentice Hall .

End of Chapter Content 1-33 IS Today (Valacich & Schneider) 11/20/2014 Copyright © 2010 Pearson Education. Inc. Published as Prentice Hall .

Published as Prentice Hall .Opening Case—Managing 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 IS Today (Valacich & Schneider) 11/20/2014 Copyright © 2010 Pearson Education. Inc.

Published as Prentice Hall . IS Today (Valacich & Schneider) 11/20/2014 Copyright © 2010 Pearson Education. Inc.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 company’s survival may depend upon those employees who fail over and over but try new ideas.

Inc.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. Published as Prentice Hall . and yet must be functional Where will the power for the device come from? • • • IS Today (Valacich & Schneider) 11/20/2014 Copyright © 2010 Pearson Education.

The Two Steves—Jobs & Wozniak 1-37  Knew each other in high school  Both men left in 1985  In 1996 Jobs returned to Apple IS Today (Valacich & Schneider) 11/20/2014 Copyright © 2010 Pearson Education. Inc. Published as Prentice Hall .

Worldwide Internet Usage 1-38  In 2008 about 17 percent of active Internet users were located in the United States  Internet usage:   Highest—North America: 74 percent of population Lowest—Africa: 5. Inc.3 percent penetration of use IS Today (Valacich & Schneider) 11/20/2014 Copyright © 2010 Pearson Education. Published as Prentice Hall .

Online Rights Not Always Universal 1-39 • Governments in some countries regulate • • • • access to information on the Web (e.g. Inc. Published as Prentice Hall .. 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? IS Today (Valacich & Schneider) 11/20/2014 Copyright © 2010 Pearson Education.

Inc.  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. Published as Prentice Hall . thus forming a large network IS Today (Valacich & Schneider) 11/20/2014 Copyright © 2010 Pearson Education.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.

Business Career Outlook 1-41  Globalization trend is increasing the need for “Global Skills”—What can you do?     Gain international experience Learn more than one language Sensitize yourself to global cultural and political issues In Addition—Immerse yourself into the culture:    Learn about local food Watch locally produced television Read books and newspapers IS Today (Valacich & Schneider) 11/20/2014 Copyright © 2010 Pearson Education. Inc. Published as Prentice Hall .