MANAGING INFORMATION TECHNOLOGY 7th EDITION

CHAPTER 1 MANAGING IT IN A DIGITAL WORLD

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MANAGING INFORMATION TECHNOLOGY, 7e

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Information Technology (IT):

Computer technology (hardware and software) for processing and storing information and Communications technology (voice and data networks) for transmitting information.

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MANAGING INFORMATION TECHNOLOGY, 7e

Part I Technologies available today and emerging technology trends for hardware, software, networks and data Part II Software applications to support business operations and business intelligence, as well as e-business applications Part III Best practices for acquiring and implementing new systems and managing IT projects Part IV Planning and managing an IS departments resources, as well as managing information security; social/ethical/legal issues
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MANAGING IT IN A DIGITAL WORLD

IT has become more pervasive
- IT is not used only by back-office workers, but also front-line workers - More and more employees are reliant upon IT for accomplishing their work activities

Business managers, not just IT managers, are responsible for IT investments and effective system utilization By the Year 2000, the total annual cost of IT purchases was more than half of the annual capital expenditures of businesses in developed countries IT is linking emerging, developing and developed economies, which can help level the economic playing field
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RECENT INFORMATION TECHNOLOGY TRENDS

Computer Hardware: Faster, Cheaper, Mobile

- Computers have become smaller and faster - Hardware prices have dropped - High growth in small, mobile devices for communications and access to the Internet

Microcomputers (1970s)

IBM Personal Computer (1981)

Personal Digital Assistants [PDAs] introduced (early 1990s)

Laptop Computers outsell desktops (2005)

Smart Phones introduced (2007)

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RECENT INFORMATION TECHNOLOGY TRENDS

But it can be hard to predict long-term IT trends.

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RECENT INFORMATION TECHNOLOGY TRENDS

Computer Software: Integrated, Downloadable, Social Integrated - Standardization has enabled more integration - Many standards are just de facto standards (Microsoft Windows, Office, Internet Explorer) - Many companies have benefitted from Enterprise Systems investments (e.g., electronic health records in hospitals)

Enterprise Systems: Software packages with integrated modules that pass common business transactions across groups, divisions, and geographic locations in real time
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RECENT INFORMATION TECHNOLOGY TRENDS

Computer Software: Integrated, Downloadable, Social Downloadable - Bit-size software programs for smart phones downloadable from App stores - Download speeds have increased so that even large files can be downloaded by users Social - Growth of Web 2.0 (social media) applications (such as Facebook, LinkedIn) - Used by companies for marketing and branding activities - Collaboration tools connect employees across distance
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RECENT INFORMATION TECHNOLOGY TRENDS

Computer Networks: High Bandwidth, Wireless and Cloudy

- High demand for high speed Internet access - Wireless technologies to replace hardwired lines; support for mobile devices anytime/anywhere - Use of Internet to access remote hosts, data storage, and other IT capabilities from the Cloud

ARPANET created (late 1960s)

Introduction of the World Wide Web (early 1990s)

Consumer highspeed Internet connections widely available (early 2000s)

Number of Internet users tops 1 billion (2005)

Wireless Internet access common in many locations (today)

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NEW WAYS TO COMPETE

New ways for businesses to use IT to compete on: Low Cost Competing with other businesses by being a lowcost producer for a good or a service
Automating transaction time Shortening order cycle time Providing operational information for decision making

Differentiation Competing with other businesses by offering products or services that customers prefer due to superiority in product innovativeness, quality or customer service
Giving sales personnel information to better serve customers Providing just-in-time supplies for customers Creating new information-based products Allowing product customization by the consumer

OR Both Low Cost and Differentiation, enabled by IT

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NEW WAYS TO WORK

New ways for people to work using IT:
Telecommuters: Individuals who use mobile technology and/or network connections to work remotely
Pros - Flexibility - Work-life balance

Cons - Feelings of being isolated - Concerns about job promotion opportunities

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NEW WAYS TO WORK

New ways for people to work using IT, continued:
Virtual Teams: Geographically separated work teams whose members communicate through the use of IT
Pros - Workers can be located anywhere - Teams can be composed of members with specialized skills from different business units or companies Cons - Coordination across team members more difficult
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NEW WAYS TO WORK

New ways for people to work using IT, continued:
Free Agents: Individuals who choose to contract out their services and are not tied to an organization
Pros - Work may change more than when an employee of a single organization

Cons - Lack of benefits - Unpredictability in scheduling and work

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MANAGING IT IN ORGANIZATIONS
Information Systems (IS) Department:
The organizational unit or department that has the primary responsibility for managing IT Information Systems departments can vary greatly across businesses, depending on the organizations dependency on IT for: reliable & secure business operations and competitive advantage based on new technologies

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MANAGING IT IN ORGANIZATIONS
Example: IS Organization in Support Mode - Low Need for New Information Technology for competing - Low Need for Reliable & Secure Information Technology for business operations - IT used mostly to support backoffice support functions

Support
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MANAGING IT IN ORGANIZATIONS
Example: IS Organization in Strategic Mode - High Need for New Information Technology for competitive advantage - High Need for Reliable & Secure Information Technology for business operations - Strategically dependent on IT to enable new business strategies
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Strategic
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MANAGING IT IN ORGANIZATIONS
Three Types of IT Resources (Figure 1.1 based on Ross et al.)

- Technology Infrastructure: Computers, software and networks that enable an organization to conduct business and share information across organizational units as well as business partners
- Human Resources: IT professionals and managers who have the needed mix of technology, business and interpersonal skills to plan for, design and manage the other IT resources - Business/IT Relationships: Established relationships between business and IT workers to ensure that the other IT resources are aligned with the business needs
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IT LEADERSHIP ROLES
IT leaders to work closely with the In many have organizations, the senior IT senior leadermanagers is a CIO.o keep the companys IT resources aligned with the business goals

Chief Information Officer (CIO):

A firms high-level general IT manager with both technology and business leadership experience. Together with the organizations executive management team the CIO ensures the alignment of IT resources with business goals and plans for integration of IT for strategic advantage.

Two primary responsibilities: - Computer and communication operations - Acquiring and maintaining applications software
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IT LEADERSHIP ROLES
Example: IS Organization Chart

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COPYRIGHT

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.

Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall

Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall

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