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Chapter2-InformationSystemsinOrganizations.pptx

Principles of Information Systems, Thirteenth Edition

Chapter 2

Information Systems in Organizations

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Principles of Information Systems, Thirteenth Edition

Chapter 2

Information Systems in Organizations

Objectives

After completing this chapter, you will be able to:

Sketch a general model of an organization showing how information systems support and work within automated portions of an organizational process

Define the term value chain and identify several examples within a typical manufacturing or service organization

Define the term innovation and identify two types

Define reengineering and continuous improvement and explain how they are different

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Objectives

After completing this chapter, you will be able to:

Sketch a general model of an organization showing how information systems support and work within automated portions of an organizational process

Define the term value chain and identify several examples within a typical manufacturing or service organization

Define the term innovation and identify two types

Define reengineering and continuous improvement and explain how they are different

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Objectives

After completing this chapter, you will be able to:

Discuss pros and cons of outsourcing, offshoring, and downsizing

Define the term “the soft side of implementing change” and explain why it is a critical factor in the successful adoption of any major change

Identify and describe four change models used to increase the likelihood of successfully introducing a new IS into an organization

Define the types of roles, functions and careers available in the field of IS

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Objectives

After completing this chapter, you will be able to:

Discuss pros and cons of outsourcing, offshoring, and downsizing

Define the term “the soft side of implementing change” and explain why it is a critical factor in the successful adoption of any major change

Identify and describe four change models used to increase the likelihood of successfully introducing a new IS into an organization

Define the types of roles, functions and careers available in the field of IS

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Organizations and Information Systems

Organization: a group of people that is structured and managed to meet its mission or set of group goals

There are relationships between members of the organization and their various activities

Processes are defined that assign roles, responsibilities, and authority to complete the various activities

Organizations are open systems

They affect and are affected by their surrounding environments

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Organizations and Information Systems

Organization: a group of people that is structured and managed to meet its mission or set of group goals

There are relationships between members of the organization and their various activities

Processes are defined that assign roles, responsibilities, and authority to complete the various activities

Organizations are open systems

They affect and are affected by their surrounding environments

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Organizations and Information Systems

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Organizations and Information Systems

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Organizations and Information Systems

Value chain: a series (chain) of activities that an organization performs to transform inputs into outputs

The value of the input is increased

Supply chain: key value chain in a manufacturing organization

Supply chain management (SCM): encompasses all the activities required to get the right product into the right consumer’s hands in the right quantity at the right time and at the right cost

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Organizations and Information Systems

Value chain: a series (chain) of activities that an organization performs to transform inputs into outputs

The value of the input is increased

Supply chain: key value chain in a manufacturing organization

Supply chain management (SCM): encompasses all the activities required to get the right product into the right consumer’s hands in the right quantity at the right time and at the right cost

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Organizations and Information Systems

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Organizations and Information Systems

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Organizations and Information Systems

Supply chain organizations are “linked” together through both physical flows and information flows

Physical: supplies and raw materials

Information: participants communicating their plans, coordinating their work, and managing the efficient flow of goods and material

The information system can play an integral role in the supply chain process:

Providing input

Aiding product transformation

Producing output

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Organizations and Information Systems

Supply chain organizations are “linked” together through both physical flows and information flows

Physical: supplies and raw materials

Information: participants communicating their plans, coordinating their work, and managing the efficient flow of goods and material

The information system can play an integral role in the supply chain process:

Providing input

Aiding product transformation

Producing output

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Virtual Teams and Collaborative Work

Virtual team: a group of individuals whose members are distributed geographically, but work as a coherent unit through the use of information systems technology

Strength: the best available people are enlisted to solve important organizational problems

Supported by electronic communications: email, instant messages, video conferences, etc.

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Virtual Teams and Collaborative Work

Virtual team: a group of individuals whose members are distributed geographically, but work as a coherent unit through the use of information systems technology

Strength: the best available people are enlisted to solve important organizational problems

Supported by electronic communications: email, instant messages, video conferences, etc.

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Innovation

Innovation: the application of new ideas to the products, processes, and activities of a firm, leading to increased value

A catalyst for the growth and success of an organization

Can lead to cutting-edge products

New revenue streams

Increased profits

Types of innovation

Sustaining innovation: results in enhancements to existing products, services, and ways of operating

Enable an organization to continually increase profits, lower costs, and gain market share

Disruptive innovation: one that initially provides a lower level of performance than the marketplace has grown to accept

Improved to provide new performance characteristics

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Innovation

Innovation: the application of new ideas to the products, processes, and activities of a firm, leading to increased value

A catalyst for the growth and success of an organization

Can lead to cutting-edge products

New revenue streams

Increased profits

Types of innovation

Sustaining innovation: results in enhancements to existing products, services, and ways of operating

Enable an organization to continually increase profits, lower costs, and gain market share

Disruptive innovation: one that initially provides a lower level of performance than the marketplace has grown to accept

Improved to provide new performance characteristics

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Reengineering and Continuous Improvement

Reengineering

Also called process redesign and business process reengineering (BPR)

Involves the radical redesign of business processes, organizational structures, information systems, and values of the organization to achieve a breakthrough in business results

Continuous improvement

Constantly seeking ways to improve business processes and add value to products and services

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Reengineering and Continuous Improvement

Reengineering

Also called process redesign and business process reengineering (BPR)

Involves the radical redesign of business processes, organizational structures, information systems, and values of the organization to achieve a breakthrough in business results

Continuous improvement

Constantly seeking ways to improve business processes and add value to products and services

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Reengineering and Continuous Improvement

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Reengineering and Continuous Improvement

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Reengineering and Continuous Improvement

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Reengineering and Continuous Improvement

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Outsourcing, Offshoring, and Downsizing

Outsourcing

A long-term business arrangement in which a company contracts for services with an outside organization that has expertise in providing a specific function

Offshore outsourcing (offshoring)

The service is located in a country different than the firm obtaining the services

A number of companies are finding that outsourcing does not necessarily lead to reduced costs

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Outsourcing, Offshoring, and Downsizing

Outsourcing

A long-term business arrangement in which a company contracts for services with an outside organization that has expertise in providing a specific function

Offshore outsourcing (offshoring)

The service is located in a country different than the firm obtaining the services

A number of companies are finding that outsourcing does not necessarily lead to reduced costs

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Outsourcing, Offshoring, and Downsizing

Downsizing

Reducing the number of employees to cut costs

Also referred to as “rightsizing”

Product quality and employee morale can suffer

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Outsourcing, Offshoring, and Downsizing

Downsizing

Reducing the number of employees to cut costs

Also referred to as “rightsizing”

Product quality and employee morale can suffer

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Organizational Culture and Change

Culture: a set of major understandings and assumptions shared by a group

Organizational culture: the major understandings and assumptions for a business, corporation, or other organization

Organizational change: how organizations plan for, implement, and handle change

Soft side of implementing change: involves work designed to help employees embrace a new information system and way of working

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Organizational Culture and Change

Culture: a set of major understandings and assumptions shared by a group

Organizational culture: the major understandings and assumptions for a business, corporation, or other organization

Organizational change: how organizations plan for, implement, and handle change

Soft side of implementing change: involves work designed to help employees embrace a new information system and way of working

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Organizational Culture and Change

Change management model

Describes the phases an individual or organization goes through in making a change

Provides principles for successful implementation of change

There are a number of models for dealing with the soft side of implementing change

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Organizational Culture and Change

Change management model

Describes the phases an individual or organization goes through in making a change

Provides principles for successful implementation of change

There are a number of models for dealing with the soft side of implementing change

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Lewin’s Change Model

Lewin’s change model consists of a three-stage approach for change

Unfreezing: preparing for change

Moving: making the change

Refreezing: institutionalizing

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Lewin’s Change Model

Lewin’s change model consists of a three-stage approach for change

Unfreezing: preparing for change

Moving: making the change

Refreezing: institutionalizing

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Lewin’s Change Model

Lewin’s change model consists of a three-stage approach for change

Unfreezing: preparing for change

Moving: making the change

Refreezing: institutionalizing

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Lewin’s Change Model

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Lewin’s Force Field Analysis

Lewin extended his change model theory to include force field analysis

Identifies both the driving (positive) and restraining (negative) forces that influence whether change can occur

Driving forces: beliefs, expectations, and cultural norms that tend to encourage a change and give it momentum

Restraining forces: those that make it difficult to accept a change or to work to implement a change

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Lewin’s Force Field Analysis

Lewin extended his change model theory to include force field analysis

Identifies both the driving (positive) and restraining (negative) forces that influence whether change can occur

Driving forces: beliefs, expectations, and cultural norms that tend to encourage a change and give it momentum

Restraining forces: those that make it difficult to accept a change or to work to implement a change

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Lewin’s Force Field Analysis

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Lewin’s Force Field Analysis

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Lewin’s Force Field Analysis

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Lewin’s Force Field Analysis

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Leavitt’s Diamond

A theory that proposes that every organizational system is made up of four main components—people, tasks, structure, and technology—with an interaction among the four components

Any change in one of these elements will necessitate a change in the other three elements

Organizational learning

The adaptations and adjustments based on experience and ideas over time

Adjustments can require reengineering or can result from continuous improvement

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Leavitt’s Diamond

A theory that proposes that every organizational system is made up of four main components—people, tasks, structure, and technology—with an interaction among the four components

Any change in one of these elements will necessitate a change in the other three elements

Organizational learning

The adaptations and adjustments based on experience and ideas over time

Adjustments can require reengineering or can result from continuous improvement

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Leavitt’s Diamond

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Leavitt’s Diamond

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User Satisfaction and Technology Acceptance

Technology acceptance model (TAM)

Specifies the factors that can lead to better attitudes about the information system

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User Satisfaction and Technology Acceptance

Technology acceptance model (TAM)

Specifies the factors that can lead to better attitudes about the information system

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Diffusion of Innovation Theory

A theory developed by E.M. Rogers

Explains how a new idea or product gains acceptance and diffuses (or spreads) through a specific population or subset of an organization

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Diffusion of Innovation Theory

A theory developed by E.M. Rogers

Explains how a new idea or product gains acceptance and diffuses (or spreads) through a specific population or subset of an organization

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Diffusion of Innovation Theory

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Diffusion of Innovation Theory

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Careers in Information Systems

Successful IS workers must:

Enjoy working in a fast-paced, dynamic environment

Meet deadlines and solving unexpected challenges

Possess good communication skills

Have solid analytical and decision-making skills

Develop effective team and leadership skills

Be adept at implementing organization change

Be prepared to engage in life-long learning in a rapidly changing field

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Careers in Information Systems

Successful IS workers must:

Enjoy working in a fast-paced, dynamic environment

Meet deadlines and solving unexpected challenges

Possess good communication skills

Have solid analytical and decision-making skills

Develop effective team and leadership skills

Be adept at implementing organization change

Be prepared to engage in life-long learning in a rapidly changing field

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Careers in Information Systems

Technical skills important for IS workers to have:

Capability to analyze large amounts of structured and unstructured data

Ability to design/build applications for mobile devices

Programing and application development skills

Technical support expertise

Project management skills

Knowledge of networking and cloud computing

Ability to audit systems and implement necessary security measures

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Careers in Information Systems

Technical skills important for IS workers to have:

Capability to analyze large amounts of structured and unstructured data

Ability to design/build applications for mobile devices

Programing and application development skills

Technical support expertise

Project management skills

Knowledge of networking and cloud computing

Ability to audit systems and implement necessary security measures

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Careers in Information Systems

Technical skills important for IS workers to have (cont’d):

Web design and development skills

Knowledge of data center operations

The U.S. Bureau of Labor Statistics (BLS) forecasts an increase of 1.2 million new computing jobs between 2012-2022

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Careers in Information Systems

Technical skills important for IS workers to have (cont’d):

Web design and development skills

Knowledge of data center operations

The U.S. Bureau of Labor Statistics (BLS) forecasts an increase of 1.2 million new computing jobs between 2012-2022

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Careers in Information Systems

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Careers in Information Systems

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Careers in Information Systems

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Careers in Information Systems

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Careers in Information Systems

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Careers in Information Systems

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Careers in Information Systems

U.S. H-1B and L-1 visa programs seek to allow skilled employees from foreign lands into the United States

Programs are limited and are high demand

L-1 visa program is often used for intracompany transfers for multinational companies

H-1B program can be used for new employees

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Careers in Information Systems

U.S. H-1B and L-1 visa programs seek to allow skilled employees from foreign lands into the United States

Programs are limited and are high demand

L-1 visa program is often used for intracompany transfers for multinational companies

H-1B program can be used for new employees

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Careers in Information Systems

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Careers in Information Systems

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Careers in Information Systems

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Careers in Information Systems

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Roles, Functions, and Careers in IS

In addition to technical skills, IS professionals need:

Skills in written and verbal communication

An understanding of organizations and the way they operate

The ability to work with people and in groups

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Roles, Functions, and Careers in IS

In addition to technical skills, IS professionals need:

Skills in written and verbal communication

An understanding of organizations and the way they operate

The ability to work with people and in groups

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Roles, Functions, and Careers in IS

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Roles, Functions, and Careers in IS

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Typical IS Titles and Functions

Chief information officer (CIO) employs the IS department’s equipment and personnel to help the organization attain its goals

Senior IS Managers

Vice president of information systems

Manager of information systems

Chief technology officer (CTO)

Central role of all of the above is to communicate with other areas of the organization to determine changing business needs

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Typical IS Titles and Functions

Chief information officer (CIO) employs the IS department’s equipment and personnel to help the organization attain its goals

Senior IS Managers

Vice president of information systems

Manager of information systems

Chief technology officer (CTO)

Central role of all of the above is to communicate with other areas of the organization to determine changing business needs

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Typical IS Titles and Functions: Operations Roles

Data center managers are responsible for the maintenance and operation of the organization’s computing facilities

System operators run and maintain IS equipment

IS security analysts are responsible for maintaining the security and integrity of their organizations’ systems and data

Local area network (LAN) administrators set up and manage the network hardware, software, and security processes

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Typical IS Titles and Functions: Operations Roles

Data center managers are responsible for the maintenance and operation of the organization’s computing facilities

System operators run and maintain IS equipment

IS security analysts are responsible for maintaining the security and integrity of their organizations’ systems and data

Local area network (LAN) administrators set up and manage the network hardware, software, and security processes

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Typical IS Titles and Functions: Development Roles

Software developers write the software that customers and employees use

Systems analysts consult with management and users, as well as convey system requirements to software developers and network architects

Programmers convert a program design developed by a systems analyst or software developer into one of many computer languages

Web developers design and maintain Web sites, including site layout and function, to meet the client’s requirements

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Typical IS Titles and Functions: Development Roles

Software developers write the software that customers and employees use

Systems analysts consult with management and users, as well as convey system requirements to software developers and network architects

Programmers convert a program design developed by a systems analyst or software developer into one of many computer languages

Web developers design and maintain Web sites, including site layout and function, to meet the client’s requirements

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Typical IS Titles and Functions: Support

Database administrators (DBAs) design and set up databases to meet an organization’s needs

System support specialists respond to telephone calls, email, and other inquiries from computer users

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Typical IS Titles and Functions: Support

Database administrators (DBAs) design and set up databases to meet an organization’s needs

System support specialists respond to telephone calls, email, and other inquiries from computer users

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IS-Related Roles outside the IS Organization

Shadow IT

A term used to describe the IS and solutions built and deployed by departments other than the information systems department

Enables business managers to quickly create highly innovative solutions to real business problems and to test these solutions out

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IS-Related Roles outside the IS Organization

Shadow IT

A term used to describe the IS and solutions built and deployed by departments other than the information systems department

Enables business managers to quickly create highly innovative solutions to real business problems and to test these solutions out

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IS-Related Roles outside the IS Organization

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IS-Related Roles outside the IS Organization

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Certification

Certification

A process for testing skills and knowledge

Results in a statement by the certifying authority that confirms an individual is capable of performing particular tasks

Frequently involves specific, vendor-provided or vendor-endorsed coursework

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Certification

Certification

A process for testing skills and knowledge

Results in a statement by the certifying authority that confirms an individual is capable of performing particular tasks

Frequently involves specific, vendor-provided or vendor-endorsed coursework

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Other IS Careers

Consulting opportunities

Computer training

Computer and computer-equipment sales

Computer repair and maintenance

Support services

Employment with technology companies

Entrepreneurial ventures

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Other IS Careers

Consulting opportunities

Computer training

Computer and computer-equipment sales

Computer repair and maintenance

Support services

Employment with technology companies

Entrepreneurial ventures

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Working in Teams

Most IS careers involve working in project teams that can consist of many of the positions and roles

It is always good for IS professionals to:

Have good communications skills and the ability to work with other people

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Working in Teams

Most IS careers involve working in project teams that can consist of many of the positions and roles

It is always good for IS professionals to:

Have good communications skills and the ability to work with other people

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Finding a Job in IS

Developing an online résumé can be critical to finding a good job

The Internet

Online job sites

Company Web sites

Social networking sites

Informal networks of colleagues or business acquaintances

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Finding a Job in IS

Developing an online résumé can be critical to finding a good job

The Internet

Online job sites

Company Web sites

Social networking sites

Informal networks of colleagues or business acquaintances

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Summary

Organizations are open systems that affect and are affected by their surrounding environment

Positive change is a key ingredient for any successful organization

Information systems must be implemented in such a manner that they are accepted and work well within the context of an organization and support its fundamental business goals and strategies

The information system worker functions at the intersection of business and technology and designs, builds, and implements solutions that allow organizations to effectively leverage information technology systems

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Summary

Organizations are open systems that affect and are affected by their surrounding environment

Positive change is a key ingredient for any successful organization

Information systems must be implemented in such a manner that they are accepted and work well within the context of an organization and support its fundamental business goals and strategies

The information system worker functions at the intersection of business and technology and designs, builds, and implements solutions that allow organizations to effectively leverage information technology systems

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