managing the digital firm: canada and beyond
DESCRIPTION
CHAPTER 1. MANAGING THE DIGITAL FIRM: CANADA AND BEYOND. Why Information Systems?. Organizations need IS to survive and prosper New challenges in the Competitive environment Emergence of the global economy Transformation of industrial economies Transformation of the enterprise - PowerPoint PPT PresentationTRANSCRIPT
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Why Information Systems?
• Organizations need IS to survive and prosper
• New challenges in the Competitive environment– Emergence of the global economy– Transformation of industrial economies– Transformation of the enterprise– Emergence of the digital firm
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What is an Information System?
• A set of interrelated components that – collect (or retrieve),– process, – store, and – distribute information
• to support decision-making and control in an organization.
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DATA vs. INFORMATION
• Raw facts
• Represent events
• E.g. sales from a cash register
• Organized data
• Meaningful to people
• E.g. sales trends, comparison of brands
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Literacy Components
• Computer Literacy– Knowledge of technical dimensions (IT)
• Information Systems Literacy– Broad understanding of computer-based IS– Encompasses management & organizational
dimensions– Includes technical dimensions (IT)
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Approaches to IS
• Technical Approach– Emphasizes mathematically based models to
study IS
• Behavioural Approach
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Two Approaches to IS
SOCIOLOGYSOCIOLOGY
ECONOMICSECONOMICSPSYCHOLOGYPSYCHOLOGY
COMPUTER COMPUTER
SCIENCESCIENCEOPERATIONS OPERATIONS
RESEARCHRESEARCH
MANAGEMENTMANAGEMENT
SCIENCESCIENCE
TECHNICAL APPROACHESTECHNICAL APPROACHES
MISMIS
BEHAVIOURAL APPROACHESBEHAVIOURAL APPROACHES
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The Preferred Approach to IS
IS performance is optimized when both the organization and the technology adjust to each other, until a good fit is obtained
The Sociotechnical Approach:
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The Impact of the Internet
Communicate & Collaborate
Access Information
Participate in Discussions
Supply Information
Find Entertainment
Exchange Business
Transactions
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Digital Organizational Design
• Flattening organizations
• Separating work from location
• Reorganizing workflows
• Increasing organizational flexibility
• Changing management process
• Redefining organizational boundaries
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Internet-based technologies
• Intranet– An internal network based on Internet
technologies
• Extranet– Private intranet that is accessible to
authorized outsiders
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The Emerging Digital Firm
• Electronic market– A marketplace that is created by computer &
communications technologies, linking buyers and sellers
• E-commerce– buying & selling goods and services electronically
• E-business– Organizational communication, coordination &
management using Internet technologies
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Key Management Issues
• Strategic Challenge: – How can business use IT to become
competitive, effective and digitally enabled?
• Globalization Challenge• Information Architecture & Infrastructure
Challenge• IS Investment Challenge• Responsibility & Control Challenge
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Positive Impacts of IS
• Perform calculations & process paperwork faster than people
• Help companies learn about their customer’s preferences & purchases
• Provide new efficiencies (e.g. ATMs)• Provide advances in medicine• Internet allows distribution of information widely
and quickly
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Negative Impacts of IS
• May replace people & eliminate jobs
• System outages can cause critical shutdowns
• Heavy users may experience health problems
• Internet can be used to distribute illegal copies of software and violate intellectual property regulations
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Case: SK Wheat Pool
• What were the reasons SK Lab had to change its business processes?
• Why Lotus?
• What mgnt, org, and tech issues did the lab have to address?
• What measures could you use for evaluation of success? Was it successful?
• Is SK Lab a digital organization?