MIS 2101
Section 6
8/28/2014
Agenda
The rise of the information age
How this has changed business
Globalization and Firm Management
Type of information Systems
How they can be used
People and Information Systems
Does IT matter?
Ethicality in Information Systems
The first lecture is more or less about the make Vs buy decision within Porter’s puzzle.
The Rise of the Information Age
In 1959 Peter Drucker purposes the notion of the knowledge worker
Knowledge worker- An individual who is relatively well educated and who
creates, modifies, and/or synthesizes knowledge as a fundamental part of a job
This proposition asserts the rise of the knowledge society
i.e. the service economy
Cornerstone is transferrable human capital and knowledge specific assets
Data Supports the existence of the economy
Meritocracy Argument- HS diploma (23k/year)/Masters(70K/year)
Three Social Waves
Toffler’s Proposition is three waves within society
Formalization of agricultural work
Industrial revolution
Formalization of the economy and trade
Double entry accounting hmm?
The information age
The pooling and seamless dissemination of information (g
Information is a Valuable Resource
Arguably the five mega trends
Social Media
Cloud computing
Big Data
Consumerization of IT
Mobility
Mobile Computing
Many believe that we’re living in a post-PC era.
In the developing world mobile devices often leapfrog traditional PCS
Implications of untethered access
Increased collaboration
The ability to manage business in real time
New ways to reach customers
Check out TED talk Ester Duflo
http://www.ted.com/talks/esther_duflo_social_experiments_to_fight_poverty?language=e
n
Social Media and Web 2.0
Over 800 million Facebook users share Status Updates or pictures with friends
and family
Organizations use social media to encourage employee collaboration or to connect
with their customers
These sites facilitate:
Resolution of offline social failure
Production of non static content
Big Data
IDC estimates that in 2011, 1.8 zetabytes of data were generated and consumed
How much is 1.8 zettabytes? 1.8 trillion gigabytes, or the equivalent of 57
billion 32 GB iPads
This number is forcast to grow by 50 times by 2020
Target the firm, cross sell, and upsell.
Raw data can be used mined
Cloud computing
Web technologies enable using the internet as the platform for applications and
data
Many regard cloud computing as the beginning of the “Fourth wave”
The applications and data reside in the cloud
Why does this matter?
Hardware is now a service
Consumerization of IT
Consumerization may be the most significant trend affecting organizational IT
personnel
Today’s employees bring their own devices to work
Initially used for emails/social networking
Now used for toher important tasks such as enterprise resource
planning
Opens up new opportunities
Mitigates access to computing
This is the lynch pin. Instead of pedantic connectivity options, the individual can engage
in front and back office tasks
Why does this matter for the firm?
Recall the purpose of the firm
Maximizing profits
Lowering costs
If I am a clever CEO, and wish to remain competitive, how can I exploit these trends?
Outsourcing or Offshoring (Globalization)
What is globalization?
Globalization is the process of international integration arising from the
interchange of world views, products, ideas, and other aspects of culture
Like any other economic force, it isn’t good or bad, it is a response to incentives
and market forces made by consumers
Globalization- Three Factors
Economic Changes
Global labor and financial systems
Cultural Changes
The spread of the capitalist Idea
Multiculturalism and economic homogeneity
Technological
The development of low costing computing platforms and communication
technology
5 Key Factors For Enabling Globalization 3.0
The Falling Communication Costs
Creation of the telecom infrastructure
Valacich calls the over investment
Microsoft Windows
Windows becomes the de facto operating system in the world. No more
my computer cant talk to yours
Fall of the Berlin Wall
This led to the breakup of the eastern bloc, undermining of the socialist
state, and spurred (along with Nixon) China to enter the global market
The Internet
And Netscape. Allowed, seemingly, costless access to the WWW. No
travel costs to communicate
Outsourcing
The previous four started a change in the decision to in V out source
aspect of the firm
The Rise of Information Systems Outsourcing
Outsourcing: moving of business processes or tasks to another company
Facilitated by declining telecommunication costs
Driven by cost reduction
Reduced labor costs for low-skilled labor: Apple outsourcing
manufacturing to China
Reduced labor costs for relatively high-skilled labor: Boeing
outsourcing 787 Aeronautical Engineering to Russia
Key Reasons for Outsourcing
To reduce or control costs
To free up internal resources
To gain access to world-class capabilities
To increase revenue potential of the organization
To reduce time to market
To increase process efficiencies
To be able to focus on core activities
To compensate for a lack of specific capabilities or skills
Falling Transportation Costs
Shipping a bottle of wine from Australia to Europe merely costa few cents
Falling Telecommunication Costs
These have helped create shared perspectives of behavior, desirable goods, and
even forms of government
Reaching Global Market
I can now access any market, any time, conditional on connectivity
Reaching Global Employment
Access a Global Labor Pool
Highly skilled labor pools
Challenges of Operating in the Digital World (Pg. 18)
Government
Political instability
Regulatory: privacy, control, stanards, censorship
Geopolitical
Time zones, infrastructure
Workforce
We have discussed
The rise of the information age
Megatrends in IT
Information Systems role in globalization
The role of the decision maker in IT strategy
How firms are leveraging IT