1.11.1

LEARNING OBJECTIVESLEARNING OBJECTIVES

• DEFINE DEFINE INFORMATION SYSTEMSINFORMATION SYSTEMS

• COMPUTER LITERACY versus COMPUTER LITERACY versus INFORMATION SYSTEMS LITERACYINFORMATION SYSTEMS LITERACY

• EXPLAIN IMPACT OF EXPLAIN IMPACT OF INFORMATION INFORMATION SYSTEMSSYSTEMS ON ORGANIZATION & ON ORGANIZATION & MANAGEMENTMANAGEMENT

**

1.21.2

LEARNING OBJECTIVESLEARNING OBJECTIVES

• DESCRIBE DESCRIBE ELECTRONIC ELECTRONIC COMMERCECOMMERCE & & ELECTRONIC ELECTRONIC BUSINESSBUSINESS, RELATIONSHIP TO , RELATIONSHIP TO INTERNET & DIGITAL TECHNOLOGYINTERNET & DIGITAL TECHNOLOGY

• IDENTIFY IDENTIFY MAJOR MANAGEMENT MAJOR MANAGEMENT CHALLENGESCHALLENGES TO BUILDING, USING TO BUILDING, USING INFORMATION SYSTEMSINFORMATION SYSTEMS

**1.31.3

MANAGEMENT CHALLENGESMANAGEMENT CHALLENGES

• WHY INFORMATION SYSTEMS?WHY INFORMATION SYSTEMS?• CONTEMPORARY APPROACHES TO CONTEMPORARY APPROACHES TO

INFORMATION SYSTEMSINFORMATION SYSTEMS• NEW ROLE OF INFO SYSTEMS IN NEW ROLE OF INFO SYSTEMS IN

ORGANIZATIONSORGANIZATIONS• LEARNING TO USE INFO SYSTEMS: NEW LEARNING TO USE INFO SYSTEMS: NEW

OPPORTUNITIES WITH TECHNOLOGYOPPORTUNITIES WITH TECHNOLOGY

**

1.41.4

BUSINESS ENVIRONMENTBUSINESS ENVIRONMENT

• GLOBALIZATIONGLOBALIZATION

• INDUSTRIAL ECONOMIESINDUSTRIAL ECONOMIES

• TRANSFORMATION OF THE TRANSFORMATION OF THE ENTERPRISEENTERPRISE

**

1.51.5

GLOBALIZATIONGLOBALIZATION

• MANAGEMENT & CONTROLMANAGEMENT & CONTROL

• COMPETITION IN WORLD MARKETSCOMPETITION IN WORLD MARKETS

• GLOBAL WORK GROUPSGLOBAL WORK GROUPS

• GLOBAL DELIVERYGLOBAL DELIVERY SYSTEMSSYSTEMS

**

1.61.6

TRANSFORMATIONTRANSFORMATION• KNOWLEDGE-BASED ECONOMIESKNOWLEDGE-BASED ECONOMIES• PRODUCTIVITYPRODUCTIVITY• NEW PRODUCTS & SERVICESNEW PRODUCTS & SERVICES• KNOWLEDGE AS AN ASSETKNOWLEDGE AS AN ASSET• TIME-BASED COMPETITIONTIME-BASED COMPETITION• SHORTER PRODUCT LIFESHORTER PRODUCT LIFE• TURBULENT ENVIRONMENTURBULENT ENVIRONMENTT• LIMITED EMPLOYEE LIMITED EMPLOYEE KNOWLEDGE BASEKNOWLEDGE BASE

**

1.71.7

TRANSFORMATION OF TRANSFORMATION OF ENTERPRISEENTERPRISE• FLATTENINGFLATTENING• DECENTRALIZATIONDECENTRALIZATION• FLEXIBILITYFLEXIBILITY• LOCATION INDEPENDENCELOCATION INDEPENDENCE• LOW TRANSACTION COSTSLOW TRANSACTION COSTS• EMPOWERMENTEMPOWERMENT• COLLABORATIVE WORKCOLLABORATIVE WORK

**

1.81.8

KNOWLEDGE- AND KNOWLEDGE- AND INFORMATION-INTENSE INFORMATION-INTENSE

PRODUCTSPRODUCTS• PRODUCTS THAT REQUIRE A PRODUCTS THAT REQUIRE A

GREAT DEAL OF LEARNING & GREAT DEAL OF LEARNING & KNOWLEDGE TO PRODUCEKNOWLEDGE TO PRODUCE

**

1.91.9

LABOR FORCE COMPOSITION 1900-1996LABOR FORCE COMPOSITION 1900-1996

1.101.10Source: Laudon & Laudon 1999

0%

10%

20%

30%

40%

50%

60%

70%

1900

1910

1920

1930

1940

1950

1960

1970

1980

1996

YEAR

% SERVICE

% WHITE COLLAR% BLUE COLLAR

% FARMING

SYSTEMSYSTEM

INPUT OUTPUTPROCESS

FEEDBACK

1.111.11

FUNCTIONS OF AN INFORMATION SYSTEMFUNCTIONS OF AN INFORMATION SYSTEM

INPUT OUTPUTPROCESS

FEEDBACK

INFORMATION SYSTEMINFORMATION SYSTEM

ENVIRONMENTENVIRONMENT

Customers Suppliers Customers Suppliers

Regulatory Regulatory Stockholders CompetitorsStockholders CompetitorsAgenciesAgencies

ORGANIZATIONORGANIZATION

1.121.12

COMPUTER-BASED COMPUTER-BASED INFORMATION SYSTEMS INFORMATION SYSTEMS (CBIS)(CBIS)

• FORMAL SYSTEMSFORMAL SYSTEMS

• FIXED DEFINITIONS OF DATA, FIXED DEFINITIONS OF DATA, PROCEDURESPROCEDURES

• COLLECTING, STORING, COLLECTING, STORING, PROCESSING, DISSEMINATING, PROCESSING, DISSEMINATING, USING DATAUSING DATA

**

1.131.13

INFORMATION SYSTEMSINFORMATION SYSTEMS

ORGANIZATIONSORGANIZATIONS TECHNOLOGYTECHNOLOGY

MANAGEMENTMANAGEMENT

1.141.14

INFORMATIOINFORMATIONN

SYSTEMSSYSTEMS

MAJOR ORGANIZATIONAL MAJOR ORGANIZATIONAL FUNCTIONSFUNCTIONS

• SALES & MARKETINGSALES & MARKETING

• MANUFACTURINGMANUFACTURING

• FINANCEFINANCE

• ACCOUNTINGACCOUNTING

• HUMAN RESOURCESHUMAN RESOURCES

**

1.151.15

COMPUTER TECHNOLOGYCOMPUTER TECHNOLOGY

• HARDWAREHARDWARE

• SOFTWARESOFTWARE

• STORAGESTORAGE

• COMMUNICATIONSCOMMUNICATIONS

• NETWORKNETWORK

**

1.161.16

APPROACHES TO INFO SYSTEMSAPPROACHES TO INFO SYSTEMS

SOCIOLOGYSOCIOLOGY

POLITICAL POLITICAL SCIENCESCIENCE

PSYCHOLOGYPSYCHOLOGY

COMPUTER COMPUTER

SCIENCESCIENCEOPERATIONS OPERATIONS

RESEARCHRESEARCH

MANAGEMENTMANAGEMENT

SCIENCESCIENCE

MISMIS

TECHNICAL APPROACHESTECHNICAL APPROACHES

BEHAVIORAL APPROACHESBEHAVIORAL APPROACHES1.171.17

SOCIOTECHNICAL PERSPECTIVESOCIOTECHNICAL PERSPECTIVE

OPTIMIZE SYSTEM PERFORMANCE:OPTIMIZE SYSTEM PERFORMANCE:

TECHNOLOGY & ORGANIZATION TECHNOLOGY & ORGANIZATION MUTUALLY ADJUST TO ONE MUTUALLY ADJUST TO ONE

ANOTHERANOTHER

UNTIL FIT IS SATISFACTORYUNTIL FIT IS SATISFACTORY

**

SOURCE: Liker, et al, 19871.181.18

SYSTEM INTERDEPENDENCESYSTEM INTERDEPENDENCE

BUSINESSBUSINESS

StrategyStrategy

RulesRules

ProceduresProcedures

ORGANIZATION ORGANIZATION INFORMATION SYSTEMINFORMATION SYSTEM

HARDWAREHARDWARE

SOFTWARESOFTWARE DATABASEDATABASE

TELE-TELE-COMMUNICATIONSCOMMUNICATIONS

1.191.19

INTERDEPENDENCEINTERDEPENDENCE

• 1950s: TECHNICAL CHANGES1950s: TECHNICAL CHANGES• 60s-70s: MANAGERIAL CONTROL60s-70s: MANAGERIAL CONTROL• 80s-90s: INSTITUTIONAL CORE ACTIVITIES80s-90s: INSTITUTIONAL CORE ACTIVITIES

GROWING IMPORTANCEGROWING IMPORTANCE

**

SCOPE OF INFO SYSTEMSSCOPE OF INFO SYSTEMS

1.201.20

WHAT YOU CAN DO ON THE WHAT YOU CAN DO ON THE INTERNETINTERNET

• COMMUNICATE & COLLABORATECOMMUNICATE & COLLABORATE

• ACCESS INFORMATIONACCESS INFORMATION

• DISCUSSDISCUSS

• OBTAIN INFORMATIONOBTAIN INFORMATION

• ENTERTAINENTERTAIN

• TRANSACT BUSINESS TRANSACT BUSINESS

**

1.211.21

NEW OPTIONS FOR NEW OPTIONS FOR ORGANIZATIONAL DESIGNORGANIZATIONAL DESIGN

• FLATTENING ORGANIZATIONSFLATTENING ORGANIZATIONS• SEPARATING WORK FROM LOCATIONSEPARATING WORK FROM LOCATION• REORGANIZING WORK-FLOWSREORGANIZING WORK-FLOWS• INCREASING FLEXIBILITYINCREASING FLEXIBILITY• REDEFINING REDEFINING

ORGANIZATIONAL ORGANIZATIONAL BOUNDARIESBOUNDARIES

**

1.221.22

THE CHANGING THE CHANGING MANAGEMENT PROCESSMANAGEMENT PROCESS

• ENTERPRISE RESOURCE ENTERPRISE RESOURCE PLANNING (ERP)PLANNING (ERP)

• ELECTRONIC COMMERCEELECTRONIC COMMERCE

• ELECTRONIC BUSINESSELECTRONIC BUSINESS

• ELECTRONIC MARKETELECTRONIC MARKET

**

1.231.23

ENTERPRISE RESOURCE PLANNING ENTERPRISE RESOURCE PLANNING (ERP)(ERP)

SOFTWARE INTEGRATES ALL FACETS:SOFTWARE INTEGRATES ALL FACETS:

• PLANNING, MANUFACTURING, PLANNING, MANUFACTURING, INVENTORY, SALES, FINANCE, INVENTORY, SALES, FINANCE, ACCOUNTINGACCOUNTING

• TRANSACTIONS ALERT TRANSACTIONS ALERT ALL ALL INVOLVED FACTORSINVOLVED FACTORS

• UPDATES FILES, SPEEDSUPDATES FILES, SPEEDS ACTION ACTION,, CUTS COSTCUTS COST

**

1.241.24

ELECTRONIC COMMERCEELECTRONIC COMMERCE• INTERNET LINKS BUYERS, SELLERSINTERNET LINKS BUYERS, SELLERS

• LOWERS TRANSACTION COSTSLOWERS TRANSACTION COSTS

• GOODS & SERVICES GOODS & SERVICES ADVERTISED, BOUGHT, EXCHANGED ADVERTISED, BOUGHT, EXCHANGED WORLDWIDEWORLDWIDE

• BUSINESS-TO-BUSINESS BUSINESS-TO-BUSINESS TRANSACTIONS TRANSACTIONS INCREASINGINCREASING

**

1.251.25

ELECTRONIC BUSINESSELECTRONIC BUSINESS

• INTRANET: BUSINESS BUILDS INTRANET: BUSINESS BUILDS PRIVATE, SECURE NETWORKPRIVATE, SECURE NETWORK

• E-MAIL, WEB DOCUMENTS, GROUP E-MAIL, WEB DOCUMENTS, GROUP SOFTWARE EXTENDS SOFTWARE EXTENDS EFFECTIVE EFFECTIVE

COMMUNICATION & COMMUNICATION & CONTROLCONTROL

• VIRTUAL ORGANIZATIONVIRTUAL ORGANIZATION

**

1.261.26

SALES & MARKETING

COMPANY

FINANCE COMPANY

LOGISTICS

COMPANY

DESIGN

COMPANY

MANUFACTURING

COMPANY

VIRTUAL ORGANIZATIONVIRTUAL ORGANIZATION

CORECORECOMPANYCOMPANY

1.271.27

CHALLENGE OF INFO SYSTEMSCHALLENGE OF INFO SYSTEMS

• STRATEGIC:STRATEGIC: COMPETITIVE & EFFECTIVE COMPETITIVE & EFFECTIVE• GLOBALIZATION:GLOBALIZATION: MULTINATIONAL INFO MULTINATIONAL INFO• INFO ARCHITECTURE:INFO ARCHITECTURE: SUPPORT GOALS SUPPORT GOALS• INVESTMENT:INVESTMENT: VALUE OF INFORMATION VALUE OF INFORMATION• RESPONSIBILITY & CONTROL:RESPONSIBILITY & CONTROL: ETHICS ETHICS

**

1.281.28

Connect to the INTERNETConnect to the INTERNET

PRESS LEFT MOUSE BUTTON ON ICON TO CONNECT TO THE LAUDON & LAUDON

WEB SITE FOR MORE INFORMATION ON THIS CHAPTER

1.29

1.301.30