Chapter 1

Organizations, Environments, & IT

Overview for Today

Some Definitions The Changing Business Environment Organizational Responses to Change Information Technology Trends

Some Terminology

Internet, Intranet, Extranet Cloud computing SaaS IS/IT Any other terms that weren’t clear?

Something Many Overlook:

Information Systems are Social Systems IS change the way people & organizations

interact with one another:• Mobile commerce • Social media

What are some impacts of the above changes in personal/professional interactions?

I’ll let you in on a little secret…

Organizations have lots of problems!

In many cases, we can use IS to fix them..

Changing Business Environment

What new opportunities accompany our Digital Economy?

Three main categories of pressures that cause organizations to change:• Economic/Market Pressures• Technology Pressures• Societal/Political/Legal Pressures

May or may not be directly tied to IS

1. Market Pressures

Globalization & Competition (NAFTA, EU)• What special requirements do these create?

Real-Time Operations• Today’s business doesn’t wait for old data

Changes in the workforce• Telecommuters, flexible hours, disabled access

Powerful customers• Know more than ever before (how?)• How do we exercise this power?

2. Technology Pressures

Obsolescence of today’s products• Moore’s Law• Gateway commercial for the G5• Substitute products and services

3. Societal/Political/Legal Pressures

Social Responsibility Government De/Regulations Homeland Security Information Ethics

What are examples of each?

Social Responsibility…

Critical Response Activities

Organizations try to keep pressures in equilibrium

• How often do they achieve this goal?• How long does it last?

When equilibrium cannot be achieved, critical response activities begin

• Here are a few… there are many• Can be used individually or in

combination

Strategic Systems

Goal: provide competitive advantage• How can IS increase comp advantage?

Caveat: Sustaining advantage is difficult! • Why is this advantage difficult to sustain?

What are some examples of strategic systems? (AA, FedEx)

Customer Focus

Providing exceptional cust service• What are potential benefits to org?• What are potential benefits to cust?• How can these benefits be achieved?

Any examples?

Continuous Process Improvement

Small, incremental changes• What are some types of changes?

CPI often has limited effectiveness• What do you do next?

Business Process Reengineering

Radical change in organizational structure & procedures• What are some examples?• Organizational structure fits the business process

Roles that IT plays in BPR• Allows automation• Increased flexibility & reliability• Rapid, paperless transactions• Reduce time to market (FDA approval)

Mass Customization

What products are customized? Why is customization desirable? How is customization achieved?

Business Alliances

Within industries• One goal is cost savings

Across industries• Credit card, airline, & telephone • What do they have to gain?

Electronic Commerce B2B, B2C, C2C ?

Some Trends in Technology

Ongoing technological convergence Shift from mobile to embedded electronics 3D printing will change EVERYTHING!

There are many, many more…

The Big Picture…

IS impact all facets of busn/society Speed of impact is increasing Absolutely critical to understand:

• Functions served by IS• Potential applications of IS• How IS solves problems• How to avoid failed systems

Tremendous employment opportunities!

Important Concepts to Know

Driving business pressures:• Market, technology, society

How organizations are responding to these changing pressures• Critical Response Activities

Trends in Technology

For Next Time…

Prepare Chapter 1 Minicases• I will e-mail them to you

Start working on project ideas:• Groups of 4• Locate potential organizations• First Milestone is due soon…