In 2008, ICT (Information and communication technologies) sector of the Canadian economy totaled $59. 2 billion Cellphones, delivery service, social medias, internet advertising are growing and growing Three changes 1) emerging mobile digital platform (iphone, bb, netbooks ) 2) growth of online software as a service and 3) the growth in “cloud computing” where more and more business software runs over the Internet > organizations can rely more on telework, remote work and distributed decision making, think decentralization, firms can outsource more work, and rely on markets rather than employees to build value.
It also means that firms can collaborate with suppliers and customers to create new products or make existing ones more efficiently. Thomas Friedman world is now “flat”, Internet and global communications had greatly reduced the economic and cultural advantages of developed countries. Digital firms: most of significant business relationships (with customers, suppliers, and employees) of an organization are digital. Core business process are accomplished through digital networks spanning the entire organization or linking multiple organizations.
Key corporate assets- interellectual property, core competencies, and financial and human assets are managed through digital means. Time shifting ( 24/7) and space shifting (globally accomplished) are the norm There is a growing interdependence between a firms information systems and its business capabilities, changes in strategy, rules, and business processes increasingly require changes in hardware, software, databases, and telecommunications. What the organization would like to do depends on what its systems will permit to do.
Six strategic business objectives: 1) OPERATIONAL EXCELLENCE- improve efficiency and productivity to achieve higher profitability. Eg Walmart,linked supplier, stocking just-in-time 2) NEW PRODUCTS, SERVICES AND BUSINESS MODELS ( which describes how a company produces, delivers, and sells a product or service to create wealth). Eg: Ipod/apple/itunes deliverying music 3) CUSTOMER AND SUPPLIER INTIMACY- satisfied customers will return purchasing more and engaged suppliers lowers costs.
Eg: Mandarin Oriental in London, England hotel record the preference of customer and store data to program the room conditions as desired. Nygard suppliers are informed expecting just-in time delivery, inventory is near zero as storage cost. 4) IMPROVED DECISION MAKING- using real time data from the marketplace when making decisions. Eg: Trimac, uses a dashboard project 5) COMPETITIVE ADVANTAGES: achieving one or more of these business objectives. Eg: Toyota Motor Company high level of efficiency and quality.
TPS( Toyota Production System) focuses on organizing work to eliminate waste, make improvements, optimizing customer value, producing vehicles based on what customers actually ordered. 6) SURVIVAL- because they have to keep up with the industry and business- Eg: all banks had to implement ATM machines IT(Information Technology): all hardware and software that a firm needs to use in order to achieve its business objectives. ( hadware, software, programs, applications) Information systems are complex and can be best understood by looking at them from both a technology and a business perspective.
It’s a set of interrelated components that collect, process, store and distribute information to support decision making and control in an organization as well as help analyzing problems, visualize complex subjects and create new products. It contains information (data-raw unprocessed fact- that have been shaped into meaningful and useful) about significant people, places and things within the organization or in the environment surrounding it.
Eg: supermarket checkout counters scan data from bar codes that can be totaled and analyzed to provide meaningful information. Four activities in information system to produce information: 1) Input: captures or collects raw data from the org of external environment 2) Processing: converts raw input into meaningful form. 3) Output: transfers processed information to people or activities that will be used for 4) Feedback: output that is returned to
Data workers: secretaries or clerks, assist with paperwork at all levels of the firm Production or service workers: produce the product and deliver the service. Major business functions: Sales and marketing, Manufacturing and production, Finance and accounting, Human resources. Culture-fundamental set of assumptions, values and ways of doing things that has been accepted by most of its members 2) MANAGEMENT: make sense, make decisions, formulate action plans to solve organizational problems. They must exercise responsible leadership.
They must do more than manage what exists, by creating new products and services and re-creating organization from time to time. 3)INFORMATION TECHNOLOGY(INFRASTRUCTURE): one of many tools managers use to cope with change, which provides foundation or platform on which the firm can build its specific information systems. computer hardware- physical equipment used for input, processing and output activities in an information system. Includes computers of various sizes including mobile devices, various input output and storage devices, and telecommunication devices that link computers together.
Computer software- detailed, preprogrammed instructions that control and coordinate the computer hardware components in an information system Data management technology- consists of the software governing the organization of data on physical storage media Networking and telecommunications technology- consists of both physical devices and software, links the various pieces of hardware and transfers data from one physical location to another. A network links two or more computers to share data or resources, such as a printer.
The internet (a business necessity and a competitive advantage) is a global network of networks that uses universal standards to connect millions of different networks with more than 1. 4 billion users in more than 230 countries. Intranets- internal corporate networks Extranets private intranets extended to authorized users outside the organization . World wide web> service provided by Internet that uses universally accepted standards for storing, retrieving, formatting and displaying information in a page format on the Internet (web pages). g IS are part of a series of value-adding activities for acquiring, transforming, and distributing information that managers can use to improve decision making, enhance organizational performance, and , ultimately increase firm profitability complementary assets: assets required to derive value from a primary investment- organizational and managerial capital Important organizational investments: supportive business culture that values efficiency and effectiveness, an appropriate business model, efficient business processes, decentralization of authority, highly distributed decision rights, and a strong information system development team.
Important managerial investments: strong senior management support for change, incentive systems, that monitor and reward individual innovation, an emphasis on teamworl and collaboration, training programs, and a management culture that values flexibility and knowledge Important social investments: internet, supporting internet culture, educational systems, network and computing standards, regulations and laws and the precense of technology and service firms.
IS are sociotechnical systems but are composed by machines devices and hard physical technology that require substancial social, organizational and intellaectual investments to make them work properly Technical Approach: Management Science, Computer Science Operations Research Behavioural approach: Psychology, Economics, Sociology Socio-technical approach: the performance of a system is optimized when both the technology and the organizational mutually adjust to one another until a satisfactory fit is obtained.