Information Systems Today: Managing in the Digital World 1-1

1“You can’t just ask people what they want and then try to give it to them. By the time you get it built, they’ll want something else”

Steve Jobs, Apple Computer (on pleasing customers)

Chapter Managing in the Digital World

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Learning Objectives

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Learning Objectives

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Characteristics of the Digital World• The Knowledge Worker

o Term coined by Peter Drucker in 1959o An individual who is relatively well educated

and who creates, modifies and/or synthesizes knowledge as a fundamental part of a job

• Knowledge Societyo New Economy/Digital World

•Digital Divide

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The Knowledge Society

Information is now as important as land, labor and capital.

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Globalization

• Globalization manifests itself through changes in economy, cultures and technology.

• Globalization is the integration of economies throughout the world, enabled by technological progress.

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Globalization: Economic Changes

• Economic Changeso Increase in international trade of goods and

services

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Globalization: Cultural Changes

• Cultural Changeso Increased access to other cultures (through

TV, Internet, etc.)

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Globalization: Technological Changes

• Technological Changeso Availability of low cost communication

systems

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Information Systems: Definition

• Combination of five key elements: o Peopleo Hardwareo Softwareo Datao Telecommunications

networks

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Data: The Root and Purpose of Information Systems (I)

• Distinction between:o Data – raw, unformatted information

•E.g.: 5433333353

o Information – data that is transformed to have a meaning•E.g.: (543) 333-3353

o Knowledge – body of governing procedures used to organize or manipulate data

o Wisdom – accumulated knowledge

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Data: The Root and Purpose of Information Systems (II)

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IT: The Components of Information Systems

• Relationship of computer-based information systems to information technology and technology

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IT: The Components of Information Systems - Technology

• Any machine that can supplement or replace human manual work o E.g.:

•Heating system

•Surgical laser

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IT: The Components of Information Systems – Information Technology

• A type of technology that is controlled by or uses informationo E.g., manufacturing

robot

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Learning Objectives

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People: The Builders and Managers of IS

• Career opportunities are strong and expected to growo Computer/IT analyst and Computer & IS

Manager both in the top 10 best jobs for the next decade

•Median earnings for managers $102,360 (May 2005)

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Best Jobs for the Next Decade

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Careers and Salaries in the IS Field (National Average)

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IS Personnel• Changing trends

o Higher prestigeo More women

PAST PRESENT

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What Makes IS Personnel Valuable?• Integrated knowledge and skills in three

areas:o Technical Competency - skills in hardware,

software, networking and security

o Business Competency – understanding of the nature of the business; this is key in addition to the technical competency

o System Competency – understanding of how to build and integrate large scale systems

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Organizations: The Context of IS

• Many different types of systems are used in organizationso E.g.: transaction processing systems,

decision support systems, intelligent systems, etc.

• These systems used to be cleanly categorized – now the boundaries are fading due to:o Internetworkingo Systems integration

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Organizing the IS Function• Early History: Poor Service and Worse Attitudes

o Early systems were hard to use, over budget and late

• The Rise and Fall of End-User Developmento Users developing their own applications or improve

existing systems

o Today’s complex systems designed by professionals (see Chapter 9)

• The Modern Information Systems Organizationo Attitudes changed and service mentality emerged

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End User Development

• The advent of the IBM PC and early applications packages led to end-user development

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Other Issues Facing the IS Function

• The spread of technology in organizations

• Downsizing (rightsizing) and Outsourcing

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Learning Objectives

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