CHAPTER 1

MANAGING IT IN A DIGITAL WORLD

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MANAGING INFORMATION TECHNOLOGY, 7e
.

Information Technology (IT):
Computer technology (hardware and software)
for processing and storing information
and
Communications technology (voice and data networks)
for transmitting information.

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

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software. 7e Part I • Technologies available today and emerging technology trends for hardware. 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. Inc. publishing as Prentice Hall 1-3 . as well as managing information security.MANAGING INFORMATION TECHNOLOGY. social/ethical/legal issues Copyright © 2011 Pearson Education.

are responsible for IT investments and effective system utilization • By the Year 2000. which can help “level” the economic playing field Copyright © 2011 Pearson Education.More and more employees are reliant upon IT for accomplishing their work activities • Business managers. Inc.MANAGING IT IN A DIGITAL WORLD • IT has become more pervasive .IT is not used only by back-office workers. publishing as Prentice Hall 1-4 . developing and developed economies. but also front-line workers . not just IT managers. the total annual cost of IT purchases was more than half of the annual capital expenditures of businesses in developed countries • IT is linking emerging.

Hardware prices have dropped .RECENT INFORMATION TECHNOLOGY TRENDS • Computer Hardware: Faster. Mobile . mobile devices for communications and access to the Internet Microcomputers (1970’s) IBM Personal Computer (1981) Copyright © 2011 Pearson Education.Computers have become smaller and faster . Cheaper.High growth in small. publishing as Prentice Hall Personal Digital Assistants [PDAs] introduced (early 1990s) Laptop Computers outsell desktops (2005) Smart Phones introduced (2007) 1-5 . Inc.

Inc. publishing as Prentice Hall 1-6 . Copyright © 2011 Pearson Education.RECENT INFORMATION TECHNOLOGY TRENDS • But it can be hard to predict long-term IT trends….

. electronic health records in hospitals) Enterprise Systems: Software packages with integrated modules that pass common business transactions across groups.RECENT INFORMATION TECHNOLOGY TRENDS • Computer Software: Integrated. Social • Integrated . divisions. publishing as Prentice Hall 1-7 . Downloadable. Inc.Many “standards” are just de facto standards (Microsoft Windows. Internet Explorer) . and geographic locations in “real time” Copyright © 2011 Pearson Education.Many companies have benefitted from “Enterprise Systems” investments (e.g.Standardization has enabled more integration . Office.

Collaboration tools connect employees across distance Copyright © 2011 Pearson Education. Downloadable.Download speeds have increased so that even large files can be downloaded by users • Social .Growth of Web 2. publishing as Prentice Hall 1-8 .Used by companies for marketing and branding activities .Bit-size software programs for smart phones downloadable from App stores . Inc.RECENT INFORMATION TECHNOLOGY TRENDS • Computer Software: Integrated. Social • Downloadable .0 (social media) applications (such as Facebook. LinkedIn) .

Wireless technologies to replace hardwired lines. data storage.High demand for high speed Internet access . Inc. and other IT capabilities from the “Cloud” ARPANET ARPANET created created (late (late 1960s) 1960s) Introduction Introduction of of the the World World Wide Wide Web Web (early (early 1990s) 1990s) Copyright © 2011 Pearson Education. Wireless and Cloudy . publishing as Prentice Hall Consumer highspeed speed Internet Internet connections connections widely widely available available (early 2000s) Number Number of of Internet Internet users users tops tops 1 1 billion billion (2005) (2005) Wireless Wireless Internet Internet access access common common in in many many locations locations (today) (today) 1-9 . support for mobile devices anytime/anywhere .RECENT INFORMATION TECHNOLOGY TRENDS • Computer Networks: High Bandwidth.Use of Internet to access remote hosts.

Inc. publishing as Prentice Hall 1-10 .NEW WAYS TO COMPETE • New ways for businesses to use IT to compete on: • Low Cost – Competing with other businesses by being a lowcost 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. enabled by IT Copyright © 2011 Pearson Education. 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.

Inc.Feelings of being isolated .Work-life balance • Cons . publishing as Prentice Hall 1-11 .Flexibility .Concerns about job promotion opportunities Copyright © 2011 Pearson Education.NEW WAYS TO WORK • New ways for people to work using IT: • Telecommuters: Individuals who use mobile technology and/or network connections to work remotely • Pros .

NEW WAYS TO WORK • New ways for people to work using IT.Teams can be composed of members with specialized skills from different business units or companies • Cons . continued: • Virtual Teams: Geographically separated work teams whose members communicate through the use of IT • Pros .Coordination across team members more difficult Copyright © 2011 Pearson Education.Workers can be located anywhere . Inc. publishing as Prentice Hall 1-12 .

Unpredictability in scheduling and work Copyright © 2011 Pearson Education. publishing as Prentice Hall 1-13 . Inc.Lack of benefits .NEW WAYS TO WORK • New ways for people to work using IT. continued: • 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 .

publishing as Prentice Hall 1-14 . Inc. depending on the organization’s dependency on IT for: • reliable & secure business operations and • competitive advantage based on new technologies Copyright © 2011 Pearson Education.MANAGING IT IN ORGANIZATIONS 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.

Low Need for Reliable & Secure Information Technology for business operations .IT used mostly to support backoffice support functions Support Copyright © 2011 Pearson Education. Inc. publishing as Prentice Hall 1-15 .Low Need for New Information Technology for competing .MANAGING IT IN ORGANIZATIONS • Example: IS Organization in Support Mode .

High Need for New Information Technology for competitive advantage . Inc.MANAGING IT IN ORGANIZATIONS • Example: IS Organization in Strategic Mode .High Need for Reliable & Secure Information Technology for business operations .Strategically dependent on IT to enable new business strategies Copyright © 2011 Pearson Education. publishing as Prentice Hall Strategic 1-16 .

Business/IT Relationships: Established relationships between business and IT workers to ensure that the other IT resources are aligned with the business needs Copyright © 2011 Pearson Education. Inc. publishing as Prentice Hall 1-17 . business and interpersonal skills to plan for.Technology Infrastructure: Computers.1 – based on Ross et al. software and networks that enable an organization to conduct business and share information across organizational units as well as business partners . design and manage the other IT resources .Human Resources: IT professionals and managers who have the needed mix of technology.) .MANAGING IT IN ORGANIZATIONS • Three Types of IT Resources (Figure 1.

Computer and communication operations • . • Two primary responsibilities: • . the senior IT leader is a CIO. publishing as Prentice Hall 1-18 . company’s IT resources aligned with the business goals Chief Information Officer (CIO): A firm’s high-level general IT manager with both technology and business leadership experience. Inc. Together with the organization’s executive management team the CIO ensures the alignment of IT resources with business goals and plans for integration of IT for strategic advantage.IT LEADERSHIP ROLES • • IT leaders have to work closely with the senior managers o keep the In many organizations.Acquiring and maintaining applications software Copyright © 2011 Pearson Education.

Inc. publishing as Prentice Hall 1-19 .IT LEADERSHIP ROLES • Example: IS Organization Chart Copyright © 2011 Pearson Education.

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