IS 340
Management
Information Systems
Case Study – Apple Computer
I.
Information Systems Today
Knowledge
workers – create or
modify/synthesize knowledge as a fundamental part of their daily jobs;
more formal education, continuing education, higher salaries, more freedom and
more creativity in their work, better career opportunities; ~one-fourth (and
rising!) of the work-force in U.S. and developing countries
Data
Workers – use the
new information created by knowledge workers
Knowledge
Society – society where education is the cornerstone of success
New/Digital
Economy, Digital World – society where the economy is based on creation and
use of Information (rather than industry or agriculture), people work with their
brains rather than their hands
Digital
Divide – those with access to information and technology (and know
how to use it!) are much more successful than those without that access
A. Characteristics of the Digital World – computers
are the core of information systems; many changes have been brought about by
powerful, relatively inexpensive, easy-to-use computers; businesses want things faster and cheaper,
& information systems enable this;
NOTE (NOT in text): There are three (3) ways bosses always want
your work:
1. Faster, 2. Cheaper, 3. Higher
Quality; BUT!!! You CANNOT have all three!!
Faster and Cheaper does not allow
High Quality;
Faster and
High Quality precludes Cheap;
Cheaper and
High Quality will not be Fast.
B. The Information Age Arrives – three waves
(Alvin Toffler): First Wave –
agriculture and handwork created new wealth; Second Wave – industrial
revolution where new wealth created by machines; Third Wave – information age
is where new wealth comes from creation and dissemination of knowledge.
Computer
Literacy – knowing how to use a computer
Computer
Fluency – knowing what to do with the information provided by
information and technology; this goes beyond computer literacy
Cloud
Computing (fourth wave? maybe!) –
technology is pervasive today, and much of the functionality of applications
and systems installed on individual computers is now available “in the cloud”
accessed by a Web browser and can be accessed anytime from anywhere.
Inset: When
Things Go Wrong – Failure: The Path to
Success? This is a listing of failed
projects, much of it from Apple. Note
the final comment in this inset: “Any
company without an interesting list of failures probably isn’t trying hard
enough.” As a business major, what do
you think of this statement? Think:
risks vs. benefits; profits vs. losses.
This sounds great in a text, but if you are responsible for the profits
of your firm/department, how much risk are you willing to take, and how much
risk will your superior or stockholders permit?
How Risk-Prone or Risk-Averse are you or your firm?
II.
Evolution of Globalization: the integration of economies throughout the
world, fundamentally changing how people, organizations, and countries
interact, enabled by innovation and technology; Friedman poses a “flattening”
(evening, equaling) of the world
1. Economic Changes – increases in international
trade, global financial systems & currency, outsourcing
2. Cultural Changes – increases in availability
of multiculturalism (some countries have tried to close out other cultures and
“dangerous” content) and worldwide fads (Facebook, Twitter, YouTube, etc.)
3. Technological Changes – low-cost computers,
communication technology, and communication systems; ubiquitous nature of
global telecommunications, enforcement of global patents and copyrights to spur
further innovation
A. Globalization 1.0 – 1500 – 1800 – industry
changed, but so slowly that people did not recognize the change; countries
began to globalize, world went from “large to medium”
B. Globalization 2.0 – 1800 – 2000 – early days
of technology, speed of change increased, businesses began to globalize, world
went from “medium to small”
C. Globalization 3.0 – 2000 – today – much
faster pace of change, new industries based on technology changes, individuals
& small groups joined the globalization movement, world went from “small to
tiny”,
1. Key Factors Enabling Globalization:
Enabler
1 – Fall of the Berlin Wall, end of the cold war, massive increase in markets
for capitalism & capitalistic businesses
Enabler
2 – Release of Netscape Browser – the “killer app” that let everyone access the
Internet (World Wide Web)
Enabler
3 – Work Flow Software – software to software interactions, transactions
performed without human intervention
Enabler
4 – Uploading – people and companies gained the ability to create and modify
content on the Web
Enabler
5 – Outsourcing – moving business processes and functions to other companies
Enabler
6 – Offshoring - moving business processes and functions to other countries
Enabler
7 – Supply Chaining – the use of information systems to integrate retailers,
their suppliers, and their customers (e.g., WalMart)
Enabler
8 – In-Sourcing – delegation of a company’s logistics operations to a subcontractor
that specializes in that particular operation
Enabler
9 – In-Forming – allows individuals to use powerful search engines to build
their own personal chain of information and knowledge
Enabler
10 – The Steroids – various (and changing) technologies that enable different
forms of Collaboration
2. Triple Convergence – any one of these
enablers is a powerful tool, but combined they allow Globalization 3 and much
greater Collaboration
D. The Rise of Outsourcing – very popular means
of Downsizing by moving business processes and functions to other companies;
reasons:
1. Reduce or control costs
2. Free up internal resources
3. Gain access to world-class capabilities
4. Increase revenue potential of the
organization
5. Reduce time to market
6. Increase process efficiencies
7. Ability to focus on core activities
8. Compensate for lack of specific capabilities
or skills
E. Opportunities of Operating in the Digital
World
1. New Markets – fall of Communism and opening of
Eastern European markets
2. Global Workforce – low-cost, well-trained
workforce can be anywhere in the world and work online as if they were in the
next room
F. Challenges of Operating in the Digital World
– three general categories: Governmental
(political stability, economics, laws, intellectual property rights, internet
censorship, measurement units), Geo-Economic (time zones, internet
infrastructure, population demographics, workforce training & salary
differentials), Cultural (intellectual property beliefs, language, religion,
aesthetics, ethics/morals)
INSET: Ethical Dilemma – Online Rights Not Always
Universal – rights are not the same from one country/culture to another
III. Information Systems Defined – IS’s are
combinations of hardware, software, telecommunication networks and the people
using them to collect/create/distribute useful data.
A. Data:
1. Data – unorganized facts /figures;
“raw material”
NOTE: text says “unformatted information” – this is
WRONG!!!!!
2. Information – data organized so that
it has value to the organization
3. Knowledge – understanding and knowing how to
use information
B. Hardware, Software, and Telecommunications
Networks: The Components of Information
Systems – Computer Based Information Systems (see the CBIS link on the course
website, and the corresponding lecture notes) – we use computer systems and
networks today to do the tasks that were previously done manually
C. People:
The Builders and Managers of Information Systems – people are a part of
the information system as builders and users.
1. Careers in Information Systems – many of the
best paying jobs today are in the computer systems or information systems
fields; labor statistics predict a continued rise in the need for IS Managers
in all industries, not just h/w & s/w, as more industries become more
dependent on IS, IT, & IS professionals
2. What Makes IS Personnel So Valuable? Today, IS personnel are not just geeks, but
polished business professionals, competent in both business and technology;
well-trained, highly skilled, well paid, prestigious, persons who play pivotal
role in success of the firm
a. Technical Competency – h/w, s/w, security,
networking; technical competency difficult to maintain because technology changes
so quickly
b. Business Competency – very important today
for IS professionals, must be competent in both technical and business areas to
manage both people, projects, and technology
c. Systems Competency – must understand how to
build and integrate systems to solve business problems
3. Finding Qualified Personnel – to utilize IS
organizations need a highly trained workforce.
Finding the people with the right skills can be difficult, and in some
areas it is impossible. How can you
attract (and retain) talented and qualified workers?
D. Organizations: The Context of Information Systems – IS are
used to solve business problems, gain competitive advantage, and help a firm be
more productive and profitable
1. Types of Information Systems (see class notes
on CBIS)
2. Organizing the Information Systems Function –
all research indicates the continued integration of systems and information
technology as a means to gain competitive advantage and increase productivity
a. Early History: Poor Service and Worse Attitudes – ownership
of systems and who-knows-best
b. The Rise and Fall of End-User Development –
EUD was once considered the solution to backlogs and poor IS service, but the
weaknesses have mostly outweighed the benefits, & most IS development today
is left to the professionals
c. The Modern Information Systems Organization –
more co-operative, service mentality (clients & customers); move from
mainframes to distributed systems and client/server architectures (with
ubiquitous PCs) has forced changes in attitudes to service mentality
3. The Spread of Technology in Organizations –
Many systems personnel are placed in a business unit along with users. It is not uncommon for systems personnel to
have formal education, training, and work experience in both technology and in
the functional area that they support.
As IS spread through an organization, the IS personnel often have a
dual-reporting relationship, reporting to both the central IS group and the
functional business area they serve.
IV.
The Dual Nature of Information Systems
A. Case in Point: An Information System Gone Awry: Software Glitch Stops Hybrid Vehicle (or
Doesn’t?)
B. Case in Point: An Information System That Works: FedEx
C. Information Systems for Competitive Advantage
– IS are not developed because someone wants something faster, but as a
strategic method to gain competitive advantage over rivals
D. Why Information Systems Matter – IS and IT
are a necessary part of doing business in the world today; they drive
competitive advantage, create efficiencies, and enable products and services
that are simply not possible without the IS/IT function; focus on competitive
advantage; think of cost vs. benefits.
Nicholas Carr, “IT Doesn’t Matter”,
2003 – as IT becomes more pervasive, ubiquitous, and standardized it becomes an
absolutely necessary commodity that should focus on cost reduction and risk
mitigation; IT for differentiation or competitive advantage is futile. While the article caused quite a stir in academia
and industry, most people disagreed.
V.
IS Ethics – the issues and standards of conduct as they pertain to the
use of information systems
NOTE – Not in text:
Ethical – from
Greek “ethos” meaning “acceptable”; however the use means “right”, unchanging,
regardless of time, location or situation
Moral – from
Latin “mores” meaning acceptable; however the use means “acceptable” and it may
change over time, location, or situation
Legal – has
nothing to do with either ethical or moral, simply proscribed behavior given by
one person or a group of people, usually written down
A. Information Privacy – what rights do you have
to keep someone else from knowing what you do online or with a computer?
NOTE – Not
in text:
Courts have
ruled that you have rights regarding information kept about you:
1. you have the right to know what information
is being kept about you;
2. you have the right to know what they are
doing with that information;
3. you have the right to correct the information
if it is incorrect.
1. How to Maintain Your Privacy Online
B. Information Accuracy – is the information
correct?
C. Information Property – information may belong
to someone
1. Data Privacy Statements – what can a firm do
with your information?
D. Information Accessibility – do you have a
right to certain information? Do others
have a right to see your information? Do
you have a right to an Internet connection to use to get to this information? (and
who is responsible to provide that connection?)
NOTE: (NOT IN TEXT) PAPA
– Privacy, Accuracy, Property, Accessibility (or Accountability) – KNOW THIS!!!!! (exam question – exam #3?)
E. The Need for a Code of Ethical Conduct –
technology has moved faster than the courts in situations that need guidelines
for right/wrong/legal/illegal. Law
enforcement and the courts are always playing catch-up with criminals.
1. Responsible Computer Use – the Computer
Ethics Institute suggests guidelines for proper use of computers and
information systems; prohibited are:
a. Using a computer to harm others
b. Interfering with other’s computer work
c. Snooping in other’s files
d. Using a computer to steal
e. Using a computer to bear false witness
(lying)
f. Copying/using proprietary software without
payment
g. Unauthorized use of computer resources
h. Appropriating other’s intellectual output
F. The Digital Divide - those with access to
information and technology (and know how to use it!) are much more successful
than those without that access; the gap is shrinking, but there are still
challenges to be met. Outside the U.S.
the gap is wider and the challenges are greater.