Week 1 Weekly Articles Discussion Board

kentucky79

valacich_chapter1.ppt

Home >Business & Finance homework help >Accounting homework help >Week 1 Weekly Articles Discussion Board

1-*

The iPad is Apple’s latest gadget.

Chapter 1

Managing in the Digital World

Learning Objectives

1-*

Learning Objectives

1-*

The Three Waves of Change

The Third Wave by Alvin Toffler describes three phases or “waves of changes”.
First wave
A civilization based
on agriculture and
handwork
Relatively primitive
stage
Lasted thousands
of years
Luddites opposed
technology.

1-*

The Three Waves of Change (cont’d)

1-*

Second wave
The Industrial Revolution
Began at the end of the 18th century and lasted about 150 years
Third wave
The Information Age
Information becomes the currency

The printing press gave birth to the information age.

Information Systems Today

1-*

The Knowledge Worker
Term coined by Peter Drucker in 1959
An individual who is relatively well educated and who creates, modifies, and/or synthesizes knowledge as a fundamental part of a job

Knowledge Society
New Economy/Digital World
Digital Divide—those with access to information technology have great advantages over those without access.

The Knowledge Society

1-*

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

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

Globalization can be seen in visible economic, cultural, and technological changes.

Characteristics of the Digital World

1-*

Learning Objectives

1-*

Globalization: Economic Changes

1-*

Economic Changes
Increases in international trade, development of global financial systems and currency, and outsourcing of labor

Globalization: Cultural Changes

1-*

Cultural Changes
Increased multiculturalism through TV and movies; international travel and immigration; ethnic foods; Facebook, FarmVille, Twitter, and YouTube

Globalization: Technological Changes

1-*

Technological Changes
Low-cost computing platforms and communication technologies; e-mail, Skype, and instant messaging; low-cost global telecommunications infrastructure; global patent and copyright enforcement

Globalization: 1.0, 2.0, 3.0

1-*

Key Factors Enabling Globalization 3.0

November 9, 1989—The Fall of the Berlin Wall

August 9, 1995—Release of Netscape Web Browser

Work Flow Software

Uploading

Outsourcing

Offshoring

Supply Chaining

In-Sourcing

In-Forming

The Steroids

1-*

Triple convergence:

Enablers work together, enhancing collaboration
Move from vertical to horizontal collaboration
Inclusion of China, India, and Soviet Union

The Rise of Outsourcing

Many organizations are downsizing, or “rightsizing”
Outsourcing—farm IS functions to other companies
Offshoring—outsource to foreign countries
Reasons:
To reduce or control costs
To free up internal resources
To gain access to world-class capabilities
To increase revenue potential of the organization
To reduce time to market
To increase process efficiencies
To be able to focus on core activities
To compensate for a lack of specific capabilities or skills

1-*

Learning Objectives

1-*

Information Systems: Definition

1-*

Combination of five key elements:
People
Hardware
Software
Data
Telecommunications networks

Data: The Root and Purpose of Information Systems

1-*

Distinction between:
Data—raw, unformatted information
Information—data that is transformed to have a meaning
Knowledge—ability to understand information, form opinions, and make decisions or predictions

The Components of Information Systems

1-*

Hardware—CPU, disk drives, monitors, keyboards, and so on
Software—provide hardware with processing instructions
Telecommunications networks—allow computers to share information and services

Information System  Computer Information System

People: The Builders and Managers of IS

1-*

Career opportunities are strong and expected to grow.
U.S. Bureau of Labor Statistics: Employment for computer and IS managers will grow faster than the average for all occupations through 2016.
Median annual earnings of IS managers in May 2009 were $113,720.
Starting salary offers for IS majors, with one year or less of experience, averaged $54,038.
Some titles: systems analysts, systems programmers, systems operators, network administrators, database administrators, systems designers, systems managers, and chief information officers

Best Jobs for the Next Decade

1-*

IS Management Job Titles and Job Descriptions

1-*

IS Professional Core Competencies

1-*

Technical competency
Hardware, software, networking

Business competency
Business integration, managing people and projects, social skills, verbal and written communication

Systems competency
Systems integration, development methodologies, critical thinking, problem solving

Hot Skills for 2010 and Beyond

1-*

Hot Skills for 2010 and Beyond

1-*

Organizations: The Context of IS

1-*

Organizations use information systems to:
be more productive and profitable
gain competitive advantage
reach more customers
improve service to their customers

True for all types of organizations
Professional
Social
Religious
Educational
Governmental

Types of Info Systems Used in Organizations

1-*

Types of Info Systems Used in Organizations (Cont’d)

1-*

Organizing the IS Function

1-*

Early History: Poor Service and Worse Attitudes
Early systems were cumbersome to use, over budget, and late.
The Rise and Fall of End-User Development
Users developed their own applications or improved existing systems.
Today’s complex systems designed by professionals (see Chapter 9)
The Modern Information Systems Organization
Attitudes changed and service mentality emerged

End-User Development

1-*

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

The Spread of Technology in Organizations

1-*

IS personnel tend to spend most of their time out in the business unit.
IS personnel often have dual-reporting relationships—reporting to both the central IS group and the business function they serve.
Clearly a need for people who know the technology side and the business side of the business

Learning Objectives

1-*

The Dual Nature of IS

1-*

IS can help you or hurt you.

Toyota Prius—The failure (with redemption)
Braking system software glitch
Severely blemished Toyota’s reputation for safety and quality
Fortunately, dealerships could easily install new software to fix the problem

FedEx—The success
$ 32 billion family of companies—largest express transportation company
Information hub for business where managing information is the business

IS for Competitive Advantage

1-*

Both FedEx and Toyota were developing strategic information systems.

Purpose of strategic information systems is to help gain or sustain competitive advantage.

More about using IS for strategic advantage is discussed in Chapter 2.

Why Information Systems Matter

1-*

Nicholas Carr article—“IT Doesn’t Matter”
IT is no longer a source of advantage on the firm level.
Companies should focus IT on cost reduction and risk mitigation.
Many experts disagree with his arguments
Abbie Lundberg—Interview with Carr
Don Tapscott—“The Engine That Drives Success: The Best Companies Have the Best Business Models Because They Have the Best IT Strategies”
Many successful companies use IT to support a unique business strategy.

Learning Objectives

1-*

Computer Ethics

Key Ethical Concerns
Information Privacy
Information Accuracy
Information Property
Information Accessibility

1-*

Information Privacy

1-*

What information should you have to reveal?
Information you might want to keep private:
Social security number
Medical history
Family history
Identity theft
Fastest growing “information” crime
Biometrics for better protection

Information Privacy (cont’d)

1-*

Companies seem to know about our every move—how much information do we need to reveal?

Amazon.com is
famous for
personalization
What are the costs?

How to Maintain Your Privacy Online

1-*

Review the privacy policy of the company with which you are transacting.
The policy should indicate:
What information is being gathered about you.
How the seller will use this information.
Whether and how you can “opt out” of these practices.
Additional tips:
Choose Web sites monitored by independent organizations.
Avoid having cookies left on your machine.
Visit sites anonymously.
Use caution when requesting confirmation e-mail.

Information Accuracy

1-*

Ensuring of the authenticity and fidelity of information
High costs of incorrect information
Banks
Hospitals
Example: a software error in a radiation therapy device caused massive overexposure, causing multiple deaths and injuries

Information Property

1-*

Selling information about people has become a big business.
Who owns information about individuals?
How can this information be sold and exchanged?

Data Privacy Statements

1-*

Company maintaining the database with customer information legally owns it
Is free to sell it
Cannot sell information
it agreed not to share
Must insure proper data handling practices
Social networking complicates matters
Complexity of privacy settings
Friends can tag you without your knowledge.

Information Accessibility

1-*

Who has the right to monitor the information?
Example: e-mail monitoring at the workplace by employers
Electronic Communications Privacy Act (ECPA) offers far stronger support for voice mail than for e-mail communications.

Need for a Code of Ethical Conduct

1-*

Issues: changing photographs, using school computers for personal use, compiling information about shopping patterns and credit history

Many businesses have guidelines for appropriate use.

Universities endorse guidelines proposed by EduCom.

Need for a Code of Ethical Conduct (cont’d)

1-*

Responsible computer use (based on work of the Computer Ethics Institute) prohibits:

Using a computer to harm others

Interfering with other people’s computer work

Snooping in other people’s files

Using a computer to steal

Using a computer to bear false witness

Copying or using proprietary software without paying for it

Using other people’s computer resources without authorization

Appropriating other people’s intellectual output

Digital Divide

1-*

The gap between people who are computer literate and have access to the Internet and those who do not

Strong linkage between computer literacy and a person’s ability to compete in the information age

Good news: the digital divide in America is rapidly shrinking.

Still, people in rural communities, the elderly, people with disabilities, and minorities lag behind national averages.

One Laptop per Child (OLPC): global project that attempts to distribute low-cost laptops to children in developing countries

End of Chapter Content

1-*

Managing in the Digital World: Apple Computer

1-*

April Fools’ Day 1976
Stephen Wozniak and Steven Jobs officially formed the Apple Computer Company.
Both dropped out of college to build computers.
The Apple I debuted shortly after the company was formed and sold for $666.66.
Apple II’s 17-year life span is a record within the computer industry.
Highs and lows
Failures—Lisa, Apple III
Successes—Macintosh (with AppleMouse II), iMac, Mac OS X
iPod, iPhone, and iPad
Problems—environmental concerns, Jobs’ health

WHEN THINGS GO WRONG
Failure: The Path to Success?

Management consultant Tom Peters
tells managers that a company’s survival depends on employees who fail repeatedly as they try new ideas
In this spirit, Wired magazine in 2008 celebrated Apple’s greatest failures:
Newton operating system
Pippin game player
Twentieth Anniversary Macintosh
Macintosh television
PowerMac G4 Cube
Apple IIc
Puck mouse
Lisa

1-*

NET STATS
Worldwide Internet Usage

1-*

In 2010, about 14.4 percent of active Internet users were located in North America.
Internet usage:
Highest—North America: 76.2 percent of population
Lowest—Africa: 8.7 percent of population

COMING ATTRACTIONS
Real-Time Language Translation

Universal language translator may not be so far away.
In July 2009, Sakhr Software and Dial Directions introduced an iPhone app to translate between Arabic and English speech.
Google is working on a new translation technology that can convert spoken words into a different language in real time.
Despite “huge progress recently,” it’s still difficult to recognize various accents.

1-*

ETHICAL DILEMMA
Online Rights Not Always Universal

1-*

Governments in some countries regulate access to information on the Web (e.g., China).
Reporters Without Borders call this behavior unethical.
In 2010, Google decided to stop censoring its search results after it was hacked by people who tried to spy on Chinese dissidents.
Responses from other companies are mixed.
Who owns Web-posted data?

POWERFUL PARTNERSHIPS
The Two Steves—Jobs & Wozniak

1-*

Knew each other in high school
Started selling Apple computers in 1976
Both left Apple in 1985.
In 1996 Jobs returned to become Apple’s CEO.

Guerilla Wi-Fi Helps to Bridge the Divide

1-*

Digital divide is the “haves” and the “have-nots” in the IT world.
One Laptop Per Child (OLPC) attempted to overcome this.
Meraki Network was founded to provide affordable Wi-Fi for these new computers.
Small wireless routers
Network administration can provide Internet connection for, perhaps, as low as $1 per month.
Mobile services will also help to bridge the digital divide.

INDUSTRY ANALYSIS
Business Career Outlook

1-*

Globalization trend is increasing the need for “Global Skills”—What can you do?
Gain international experience
Learn more than one language
Sensitize yourself to global cultural and political issues
In addition—Immerse yourself into the culture:
Read books and newspapers.
Talk to people who know the culture.
Watch locally produced television.
Share meals with local workers.
Learn key phrases in the language.

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.

Publishing as Prentice Hall