CHAPTER 1. THE
INFORMATION SYSTEMS
REVOLUTION
TRANSFORMING
BUSINESS AND
MANAGEMENT
1.1
LEARNING OBJECTIVES
• DEFINE INFORMATION SYSTEMS
• COMPUTER LITERACY versus
INFORMATION SYSTEMS LITERACY
• EXPLAIN IMPACT OF INFORMATION
SYSTEMS ON ORGANIZATION &
MANAGEMENT
*
1.2
LEARNING OBJECTIVES
1.3
• COMPARE ELECTRONIC
COMMERCE & ELECTRONIC
BUSINESS, RELATIONSHIP TO
INTERNET & DIGITAL TECHNOLOGY
• IDENTIFY MAJOR MANAGEMENT
CHALLENGES TO BUILDING,
USING INFORMATION
SYSTEMS
*
MANAGEMENT CHALLENGES
1.4
• WHY INFORMATION SYSTEMS?
• CONTEMPORARY APPROACHES TO
INFORMATION SYSTEMS
• NEW ROLE OF INFO SYSTEMS IN
ORGANIZATIONS
• LEARNING TO USE INFO SYSTEMS:
NEW OPPORTUNITIES WITH
TECHNOLOGY
*
BUSINESS ENVIRONMENT
• GLOBALIZATION
• INDUSTRIAL ECONOMIES
• TRANSFORMATION OF THE
ENTERPRISE
*
1.5
GLOBALIZATION
•
•
•
•
1.6
MANAGEMENT & CONTROL
COMPETITION IN WORLD MARKETS
GLOBAL WORK GROUPS
GLOBAL DELIVERY
SYSTEMS
*
TRANSFORMATION
•
•
•
•
•
•
•
•
1.7
KNOWLEDGE-BASED ECONOMIES
PRODUCTIVITY
NEW PRODUCTS & SERVICES
KNOWLEDGE AS AN ASSET
TIME-BASED COMPETITION
SHORTER PRODUCT LIFE
TURBULENT ENVIRONMENT
LIMITED EMPLOYEE
KNOWLEDGE BASE
*
TRANSFORMATION OF
ENTERPRISE
•
•
•
•
•
•
•
1.8
FLATTENING
DECENTRALIZATION
FLEXIBILITY
LOCATION INDEPENDENCE
LOW TRANSACTION COSTS
EMPOWERMENT
COLLABORATIVE WORK
*
KNOWLEDGE- AND
INFORMATION-INTENSE
PRODUCTS
• PRODUCTS THAT REQUIRE A
GREAT DEAL OF LEARNING &
KNOWLEDGE TO PRODUCE
*
1.9
LABOR FORCE COMPOSITION 1900-1996
70%
60%
50%
% SERVICE
% WHITE COLLAR
% BLUE COLLAR
% FARMING
40%
30%
20%
10%
19
00
19
10
19
20
19
30
19
40
19
50
19
60
19
70
19
80
19
96
0%
YEAR
1.10
Source: Laudon & Laudon 2000
SYSTEM
INPUT
PROCESS
FEEDBACK
1.11
OUTPUT
FUNCTIONS OF AN INFORMATION SYSTEM
ENVIRONMENT
Customers
Suppliers
ORGANIZATION
INFORMATION SYSTEM
INPUT
PROCESS
OUTPUT
FEEDBACK
Regulatory
Agencies
1.12
Stockholders
Competitors
COMPUTER-BASED
INFORMATION SYSTEMS (CBIS)
• FORMAL SYSTEMS
• FIXED DEFINITIONS OF DATA,
PROCEDURES
• COLLECTING, STORING,
PROCESSING, DISSEMINATING,
USING DATA
*
1.13
INFORMATION SYSTEMS
ORGANIZATIONS
TECHNOLOGY
INFORMATION
SYSTEMS
MANAGEMENT
1.14
MAJOR ORGANIZATIONAL
FUNCTIONS
•
•
•
•
•
1.15
SALES & MARKETING
MANUFACTURING
FINANCE
ACCOUNTING
HUMAN RESOURCES
*
COMPUTER TECHNOLOGY
•
•
•
•
•
1.16
HARDWARE
SOFTWARE
STORAGE
COMMUNICATIONS
NETWORK
*
APPROACHES TO INFO SYSTEMS
TECHNICAL APPROACHES
COMPUTER
OPERATIONS
SCIENCE
RESEARCH
MANAGEMENT
SCIENCE
MIS
SOCIOLOGY
PSYCHOLOGY
BEHAVIORAL APPROACHES
1.17
POLITICAL
SCIENCE
SOCIOTECHNICAL PERSPECTIVE
OPTIMIZE SYSTEM PERFORMANCE:
TECHNOLOGY & ORGANIZATION
MUTUALLY ADJUST TO ONE
ANOTHER
UNTIL FIT IS SATISFACTORY
*
1.18
SOURCE: Liker, et al, 1987
SYSTEM INTERDEPENDENCE
INTERDEPENDENCE
HARDWARE
BUSINESS
SOFTWARE
DATABASE
Strategy
Rules
Procedures
ORGANIZATION
1.19
TELECOMMUNICATIONS
INFORMATION SYSTEM
SCOPE OF INFO SYSTEMS
• 1950s: TECHNICAL CHANGES
• 60s-70s: MANAGERIAL CONTROL
• 80s-90s: INSTITUTIONAL CORE
ACTIVITIES
1.20
GROWING IMPORTANCE
*
WHAT YOU CAN DO ON THE
INTERNET
•
•
•
•
•
•
1.21
COMMUNICATE & COLLABORATE
ACCESS INFORMATION
DISCUSS
OBTAIN INFORMATION
ENTERTAIN
TRANSACT BUSINESS
*
NEW OPTIONS FOR
ORGANIZATIONAL DESIGN
•
•
•
•
•
FLATTENING ORGANIZATIONS
SEPARATING WORK FROM LOCATION
REORGANIZING WORK-FLOWS
INCREASING FLEXIBILITY
REDEFINING
ORGANIZATIONAL
BOUNDARIES
*
1.22
THE CHANGING
MANAGEMENT PROCESS
• ELECTRONIC COMMERCE
• ELECTRONIC BUSINESS
• ELECTRONIC MARKET
*
1.23
ELECTRONIC COMMERCE
• INTERNET LINKS BUYERS,
SELLERS
• LOWERS TRANSACTION COSTS
• GOODS & SERVICES
ADVERTISED, BOUGHT,
EXCHANGED WORLDWIDE
• BUSINESS-TO-BUSINESS
TRANSACTIONS
INCREASING
1.24
*
ELECTRONIC BUSINESS
• INTRANET: BUSINESS BUILDS
PRIVATE, SECURE NETWORK
• E-MAIL, WEB DOCUMENTS, GROUP
SOFTWARE EXTENDS
EFFECTIVE
COMMUNICATION &
CONTROL
• VIRTUAL ORGANIZATION
*
1.25
VIRTUAL ORGANIZATION
MANUFACTURING
DESIGN
COMPANY
COMPANY
SALES & MARKETING
COMPANY
CORE
CO
MPANY
FINANCE COMPANY
1.26
LOGISTICS
COMPANY
CHALLENGE OF INFO SYSTEMS
•
•
•
•
•
1.27
STRATEGIC: COMPETITIVE & EFFECTIVE
GLOBALIZATION: MULTINATIONAL INFO
INFO ARCHITECTURE: SUPPORT GOALS
INVESTMENT: VALUE OF INFORMATION
RESPONSIBILITY & CONTROL: ETHICS
*
Connect to the INTERNET
Laudon/Laudon Web site:
http://www.prenhall.com/laudon
Additional Internet Resources related to this chapter:
http://www.dell.com
http://www.amazon.com
http://www.firstunion.com
http://www.intel.com
http://www.clemson.edu/
http://www.gatech.edu
http://www.bath.ac.uk
http://www.intranet.com
http://www.ascusc.org/jcmc/vol1/issue1/index.html
1.28
© 2001 Laudon & Laudon, Essentials of Management Information Systems 4/e
CHAPTER 1. THE
INFORMATION SYSTEMS
REVOLUTION
TRANSFORMING
BUSINESS AND
MANAGEMENT
1.29