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1 Housekeeping Housekeeping Power Point Demo?? – Thur or April 13 Power Point Demo?? – Thur or April 13 Today – Chap 12 Today – Chap 12 Thur – Share about chap 12 homework Thur – Share about chap 12 homework Next Week – Spring Break Next Week – Spring Break April 13 – Emerging Technology April 13 – Emerging Technology April 15 – Long Boom Article April 15 – Long Boom Article April 20 April 20 , 22 – Ethics Project , 22 – Ethics Project Discussion Discussion April 27 – No class April 27 – No class April 29 – Prepare for Final April 29 – Prepare for Final May 4 - Final May 4 - Final
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Page 1: 1 Housekeeping Power Point Demo?? – Thur or April 13 Today – Chap 12 Today – Chap 12 Thur – Share about chap 12 homework Thur – Share about chap 12 homework.

11

HousekeepingHousekeepingPower Point Demo?? – Thur or April 13Power Point Demo?? – Thur or April 13

Today – Chap 12Today – Chap 12 Thur – Share about chap 12 homeworkThur – Share about chap 12 homework Next Week – Spring BreakNext Week – Spring Break April 13 – Emerging TechnologyApril 13 – Emerging Technology April 15 – Long Boom ArticleApril 15 – Long Boom Article April 20April 20, 22 – Ethics Project Discussion, 22 – Ethics Project Discussion April 27 – No classApril 27 – No class April 29 – Prepare for FinalApril 29 – Prepare for Final May 4 - FinalMay 4 - Final

Page 2: 1 Housekeeping Power Point Demo?? – Thur or April 13 Today – Chap 12 Today – Chap 12 Thur – Share about chap 12 homework Thur – Share about chap 12 homework.

IT - The Organization IT - The Organization and the Individualand the Individual

Chapter 12Chapter 12

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33

Learning ObjectivesLearning Objectives

Recognize the difficulties in managing Recognize the difficulties in managing information resources.information resources.

Recognize information systems’ Recognize information systems’ vulnerability and manage risk.vulnerability and manage risk.

Identify the major aspects of the Identify the major aspects of the economics of information technology.economics of information technology.

Demonstrate how to define and measure Demonstrate how to define and measure tangible information technology benefits.tangible information technology benefits.

Show how to evaluate intangible Show how to evaluate intangible information technology benefitsinformation technology benefits..

Page 4: 1 Housekeeping Power Point Demo?? – Thur or April 13 Today – Chap 12 Today – Chap 12 Thur – Share about chap 12 homework Thur – Share about chap 12 homework.

Eleventh EditionJames A. O’Brien 4Introduction to Information Systems

Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.

• Identify several ways that information technologies have affected the job of managers in e-business companies.

• .Identify the seven major dimensions of the e-business organization and explain how they affect the success of e-business companies.

• Identify several cultural, political, and geoeconomic challenges that confront managers in the management of global e-business technologies.

Chapter Objectives

Page 5: 1 Housekeeping Power Point Demo?? – Thur or April 13 Today – Chap 12 Today – Chap 12 Thur – Share about chap 12 homework Thur – Share about chap 12 homework.

Evaluating TrendsEvaluating Trends

Page 6: 1 Housekeeping Power Point Demo?? – Thur or April 13 Today – Chap 12 Today – Chap 12 Thur – Share about chap 12 homework Thur – Share about chap 12 homework.

66

Technology & OrganizationsTechnology & Organizations

Impact of new technologies on organizations:Impact of new technologies on organizations:• First, most organizations will perform existing functions First, most organizations will perform existing functions

at decreasing costs over time and thus become more at decreasing costs over time and thus become more efficient.efficient.

• Second, creative organizations will find new uses for Second, creative organizations will find new uses for information technology—based on the improving price-information technology—based on the improving price-to-performance ratio—and thus become more to-performance ratio—and thus become more effective. effective.

• New and enhanced products and services will provide New and enhanced products and services will provide competitive advantage to organizations that have the competitive advantage to organizations that have the creativity to exploit the increasing power of creativity to exploit the increasing power of information technology. information technology.

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77

Trend --Trend --Information -> CollaborationInformation -> Collaboration

Today’s Internet focuses on access to and Today’s Internet focuses on access to and delivery of informationdelivery of information

Tomorrow’s Internet will support human Tomorrow’s Internet will support human collaboration in an information-rich collaboration in an information-rich environmentenvironment

The Internet is global, and is creating a The Internet is global, and is creating a global capability to build knowledge-based global capability to build knowledge-based communitiescommunities

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88

The Productivity ParadoxThe Productivity Paradox Over the last 50 years, organizations have Over the last 50 years, organizations have

invested trillions of dollars in information invested trillions of dollars in information

technology.technology. • Total worldwide annual spending on IT in 2000 was two Total worldwide annual spending on IT in 2000 was two

trillion dollars, and is expected to be over three trillion trillion dollars, and is expected to be over three trillion dollars by 2004. dollars by 2004.

Yet it is very hard to demonstrate that IT Yet it is very hard to demonstrate that IT investments really have increased outputs or investments really have increased outputs or wages.wages.

The discrepancy between measures of The discrepancy between measures of investment in information technology and investment in information technology and measures of output at the national level is measures of output at the national level is described as the described as the PProductivity roductivity PParadoxaradox..

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99

ProductivityProductivity

Economists define Economists define productivityproductivity as outputs as outputs

divided by inputs.divided by inputs. • Outputs are calculated by multiplying units produced, Outputs are calculated by multiplying units produced,

for example, number of automobiles, by their average for example, number of automobiles, by their average value.value.

If inputs are measured simply as hours of work, If inputs are measured simply as hours of work,

the resulting ratio of outputs to inputs is the resulting ratio of outputs to inputs is labor labor

productivityproductivity..

If other inputs—investments and materials—are If other inputs—investments and materials—are

included, the ratio is known as included, the ratio is known as multifactor multifactor

productivity.productivity.

Page 10: 1 Housekeeping Power Point Demo?? – Thur or April 13 Today – Chap 12 Today – Chap 12 Thur – Share about chap 12 homework Thur – Share about chap 12 homework.

Eleventh EditionJames A. O’Brien 10Introduction to Information Systems

Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.

Managing e-Business Technologies

E-Business•Agility, Flexibility•Business Strategies•Supply Chain•Total Quality

Suppliers Business Partners

Customer Value•Responsiveness•Accountability•Lower costs

Information Technology Developments

•Global and enterprise computing; intranets•IT infrastructure

Page 11: 1 Housekeeping Power Point Demo?? – Thur or April 13 Today – Chap 12 Today – Chap 12 Thur – Share about chap 12 homework Thur – Share about chap 12 homework.

Eleventh EditionJames A. O’Brien 11Introduction to Information Systems

Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.

Business QualityImprovement

Traditional Organization BusinessReengineering

E-Organization

Organization Structure

Target

Leadership

PotentialPayback

People andCulture

Risk

Coherence

What Changes?

Knowledge

Primary

Alliances

Incrementally ImprovingExisting Processes

Hierarchical

Existing ProcessesRadically RedesigningBusiness Systems

Horizontal, networked

Business Systems

Any Process

Centralized focus

Strategic BusinessProcesses

Everyone is a leader

Processes

10%-50% Improvements10%-50% Improvements 10-Fold Improvements10-Fold Improvements

LowLow HighHigh

Same Jobs - More EfficientSame Jobs - More Efficient Big Job Cuts; New Jobs;Major Job RedesignBig Job Cuts; New Jobs;Major Job RedesignIT and Work Simplification

IT and Organizational

Customer relevance

Institutional

Delegated authorityCollaboration rewarded

Governance

Internal relevance

Individualistic

Ally with distant partnersComplement current gaps

Top-down

Vertical decision makingIndividuals rewarded

Distributed

Ally with competitors, customers and suppliersCreate new value

The e-Business Organization

Page 12: 1 Housekeeping Power Point Demo?? – Thur or April 13 Today – Chap 12 Today – Chap 12 Thur – Share about chap 12 homework Thur – Share about chap 12 homework.

Eleventh EditionJames A. O’Brien 12Introduction to Information Systems

Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.

Example of organizational structure of an e-business enterprise

Global ExecutiveCore

E-commerce Business Unit

Consumer ProductsBusiness Unit

Shared IT Support Services Business Unit

Shared AdministrativeSupport Services Business Unit

IndustrialProductsBusiness Unit

Financial Services Business Unit

Page 13: 1 Housekeeping Power Point Demo?? – Thur or April 13 Today – Chap 12 Today – Chap 12 Thur – Share about chap 12 homework Thur – Share about chap 12 homework.

Eleventh EditionJames A. O’Brien 13Introduction to Information Systems

Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.

e-Business Technology Management

Managing the IT

Organization

Managing the IT

Organization

Managinge-Business IT

Strategy

Managinge-Business IT

Strategy

ManagingApplication

Development &Technology

ManagingApplication

Development &Technology

e-BusinessTechnologyManagement

e-BusinessTechnologyManagement

Page 14: 1 Housekeeping Power Point Demo?? – Thur or April 13 Today – Chap 12 Today – Chap 12 Thur – Share about chap 12 homework Thur – Share about chap 12 homework.

Eleventh EditionJames A. O’Brien 14Introduction to Information Systems

Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.

Benefits Derived from Company IT Planning

• Reduced support costs• Reduced complexity• Expertise portability• Interoperability• Volume discounts• Reduced training costs• Information sharing

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Eleventh EditionJames A. O’Brien 15Introduction to Information Systems

Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.

Global e-Business Strategies

Transactional

-Virtual e-Businesses-World Markets-Transparent Manufacturing-Global Supply Chain-Global Alliances

International

-Autonomous operations-Region Specific-Vertical Integration-Specific Customers-Captive Manufacturing

Global

-Global Sourcing-Multiregional-Horizontal Integration-Some transparency of customers and production

Page 16: 1 Housekeeping Power Point Demo?? – Thur or April 13 Today – Chap 12 Today – Chap 12 Thur – Share about chap 12 homework Thur – Share about chap 12 homework.

Eleventh EditionJames A. O’Brien 16Introduction to Information Systems

Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.

Business Drivers for Global e-Business

Global CustomersGlobal Customers

Global ProductsGlobal Products

Global OperationsGlobal Operations

Global ResourcesGlobal Resources

Global CollaborationGlobal Collaboration

Business Drivers for Globale-Business

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Eleventh EditionJames A. O’Brien 17Introduction to Information Systems

Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.

Global IT Platform Issues

Global Systems Development

•Local vs. Global Requirements•Multilingual Needs•Standardization of Data•Scheduling Global Activities

Global Infrastructure•Global Data Access•Regulated Access•Transborder Data Flows

Global Computing Facilities

•Hardware acquisitions•Import restrictions•Software compatibility•Local service•Balancing workloads•Lack of spare parts

Page 18: 1 Housekeeping Power Point Demo?? – Thur or April 13 Today – Chap 12 Today – Chap 12 Thur – Share about chap 12 homework Thur – Share about chap 12 homework.

Eleventh EditionJames A. O’Brien 18Introduction to Information Systems

Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.

Chapter Summary• e-Business technologies are changing the

distribution, relationships, resources, and responsibilities of managers.

• High-quality information system performance is dependent on extensive and meaningful management and user involvement in the governance and development of IT applications.

• The organizational structure and roles of e-business companies are undergoing major change as they strive to become customer-focused.

Page 19: 1 Housekeeping Power Point Demo?? – Thur or April 13 Today – Chap 12 Today – Chap 12 Thur – Share about chap 12 homework Thur – Share about chap 12 homework.

Eleventh EditionJames A. O’Brien 19Introduction to Information Systems

Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.

Chapter Summary (cont)

• Managing global e-business technologies includes:– Dealing with cultural, political, and geoeconomic

challenges posed by various countries. – Developing appropriate business and IT

strategies.– Developing a portfolio of global e-business and

e-commerce applications and an Internet-based technology platform to support them.


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