External Forces Influencing
Computer Information Systems
Kolganova Natalia
AMN 195
November 26, 2007
 information system is “an integrated set of
components for collecting, storing,
processing, and communicating information”
 These systems have quickened the pace of
daily activities, affected the structure and mix
of organizations, changed the type of products
bought, and influenced the nature of work.
External forces
Technological
Political
Legal/regulatory
Socio/Cultural
Economic/competition
are the factors that, being outside of the market’s
control, play an important role in how an industry
conducts its business
Economic/Competition
Globalization
 has increased the connectivity and integration;
 change the entire concept of CIS development;
Customers
Clients
Suppliers
Economic/Competition
Advantages of Globalization
 cutting the labor costs by using the cheap labor in
other countries;
 hiring well qualified and skilled employees;
 the ability to use the time zone difference to achieve
“follow-the-sun” development;
 gain competitive advantage through partnership by
sharing information and knowledge;
Economic/Competition
Disadvantage of Globalization
 the jobs are being taken by the employees
from the other countries
 142 of the Fortune 500 companies outsourced their
software requirements to India in 1997.
 India’s exports of computer software, IT services and
electronics products are projected to grow by around
30 % during 2007 to US $32 billion
Economic/Competition
Employment Statistics
Employment
Occupation
Computer and
information
scientists, research
Computer systems
analysts
Network and
computer systems
administrators
United
States
New York
United
States
New York
United
States
New York
2004
2014
Percent
Change
Job
Openings
22,400
28,100
+ 26 %
830
1,220
1,420
+ 17 %
30
486,500
639,500
+ 31 %
20,800
28,700
34,920
+ 22 %
950
278,400
385,200
+ 38 %
13,770
16,590
21,720
+ 31 %
700
Political, Legal/Regulatory
Internet Laws







Copyright law
Domain Names and Trademarks
Patent Law
Privacy
Free Speech and the First Amendment
Contract Law and High Technology
Employment law
Political, Legal/Regulatory
Accessibility Laws
State Accessibility Laws
Federal Initiative Section 508
Web Accessibility Initiative;
IBM's and Java Accessibility Guidelines
Web User Agent Guidelines
eEurope 2002: Accessibility of Public
Web Sites
Socio/Cultural
Negative sides of outsourcing
 Difficulties in communication;
 Differences in “attitudes towards authority,
work ethic, sense of time, and the styles of
communication.”;
 Downward spiral of CIS enrollment;
Socio/Cultural
Median annual salaries of CIS specialists
Software publishers
$107,870
Computer systems design
103,850
Management of companies
99,880
Insurance carriers
97,900
Depository credit intermediation
86,450
Technological
Effects of Technological Advancement
 Demand on sophisticated software grows;
 more companies enter the sphere of ecommerce;
 the process of communication has been
changed completely;
 Demand on labor force grows;
 The sphere of CIS is exposed to the influence of
internal and external forces;
 Companies have to be proactive in responding to
external forces;
 The most important factor that impacts the sphere
of CIS is globalization;
 In order to provide a fare global market place
certain laws are applied to the businesses
conducted in the sphere of CIS;
Natalia Kolganova
kolganova_nata@mail.ru