Chapter 1

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Organizations, Environments,
and Information Technology
1-1
The New World of Business
• Business pressures
• Organizational responses
• Information Systems (IS) and Information
Technology (IT)
1-2
Business Pressures
• Market pressures
• Technological pressures
• Societal pressures
1-3
Market Pressures
• Global economy - strong competition
• Changing nature of the workforce
• Powerful customers
1-4
Technological Pressures
• Technological innovation and obsolescence
• Information overload
1-5
Societal Pressures
• Social responsibility
– Government regulations
– Government deregulation
– Shrinking budgets and subsidies
• Ethical issues
1-6
Organizational Responses
•
•
•
•
•
Strategic systems
Continuous improvement efforts
Business Process Reengineering (BPR)
Business alliances
Electronic commerce
1-7
Strategic Systems
Strategic systems provide organizations
with strategic advantages, thus enabling
them to increase their market share, to
better negotiate with their suppliers, or to
prevent competitors from entering their
territory.
1-8
Continuous Improvement Efforts
•
•
•
•
•
•
•
•
Improved productivity
Just-in-time
Total Quality Management (TMQ)
Improved decision making
Managing information and knowledge
Innovation and creativity
Change management
Customer service
1-9
Business Process Reengineering
(BPR)
•
•
•
•
Reducing Cycle Time (CT)
Empowerment of employees
Customer-focused approach
Restructuring and team-based structure
1-10
Business Alliances
• Enterprise Resource Planning (EPR)
• Electronic commerce
1-11
Information Systems and
Information Technology
• What is an information system?
• What is a computer-based information
system?
• What is the difference between computers
and information systems?
• What is information technology?
1-12
What Is an Information System?
An information system (IS) collects,
processes,
stores,
analyzes,
and
disseminates information for a specific
purpose.
1-13
What Is a Computer-Based
Information System?
•
•
•
•
•
•
Hardware
Software
Database
Network
Procedures
People
1-14
Examples of Information
Systems at Work Worldwide
• Managing accounting information across
Asia
• Russians live in Moscow and work in
California
• Tracking UPS packages with pen
computers
• Mercy Hospital provides patient-focused
care
1-15
Examples of Information
Systems at Work Worldwide
• Boeing trains its employees electronically
• Integrating finance, manufacturing, and
sales - increases customer satisfaction
• Crime fighting information technology
• Maximizing the value of John Deere’s
pension fund
• Web-based information systems at Oregon
State
1-16
Information Technology
Developments and Trends
• General trends
• Networked computing
1-17
General Trends
•
•
•
•
•
•
Cost-performance ratio
Graphical and other user-friendly interfaces
Storage and memory
Data warehouse
Multimedia and virtual reality
Intelligent systems
1-18
General Trends
• Object-oriented environment
• Document management
• Compactness
1-19
Networked Computing
•
•
•
•
Client/Server architecture
Portability
Integrated home computing
The Internet and information
superhighways
• Intranets and Extranets
1-20
Networked Computing
• Electronic commerce
• Intelligent agents
• The Networked enterprise
1-21
Employment Opportunities
1-22
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1-23
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