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
Receive Ticket Order
Airline Web Site
Traveler
Plan Trip
Seats
Available
NO
Notify Traveler
YES
Check Flights
NO
Seats
Available?
YES
Reserve Seats
Use
Credit
Card?
NO
NO
YES
YES
Charge Credit Card
Subtract Mileage
Submit Ticket Order
NO
Charge
OK?
Receive e-Ticket
Frequent
Flyer Mileage
Sufficient?
YES
Confirm Flight(s)
Issue e-Ticket
Notify Traveler
1.2 Information Systems:
Concepts and Definitions
Data Item
Information
Knowledge
Information Systems:
Concepts and Definitions (continued)
Information Technology Architecture
Information Technology 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 Friedman’s Ten Flatteners
•
•
•
•
•
•
•
•
•
•
Fall of the Berlin Wall
Netscape goes public
Development of work-flow software
Uploading
Outsourcing
Offshoring
Supply Chaining
Insourcing
Informing
The Steroids
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, Webenabled 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.
1.4 Business Pressures, Organizational
Responses, and IT Support
Business Pressures
– Market Pressures
– Technology Pressures
– Societal Pressures
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
Innovation: Early calculator
Obsolescence: Slide Rule
Innovation: Telegraph
Obsolescence: Pony Express
Innovation: iPod nano
Obsolescence: old phonograph
Innovation: digital camera
Innovation: “Credit card” digital
camera
Innovation: Ford Model T
Innovation: Notebook computer
with word processing software
Obsolescence: old analog
camera
Obsolescence: Horse and Buggy
Obsolescence: Manual
typewriter
Societal Pressures
•
•
•
•
Social Responsibility
Government Regulation and Deregulation
Protection Against Terrorist Attacks
Ethical Issues
Green IT
Social Responsibility
Bridging the digital divide:
One laptop per child initiative
Internet over satellite in developing nations
Youth computer club in Cuba
Microlenders (IT’s About Business 1.2)
Organizational Responses
•
•
•
•
Strategic Systems
Customer Focus
Make-to-Order and mass customization
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
(IT’s 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 today’s 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