Stategic Information Technology
Microsoft Word - BZ400B Assignment 4 ASSIGNMENT 04 BZ400 Strategic Information Technology Directions: Answer in complete sentences Be sure to use correct English, spelling and grammar. Sources must be cited in APA format. Your response should be four (4) double-spaced pages. Margins 1” all sides Headings Bold Type Style and Size Times New Roman 12-point Software MS Word . 1. Describe three (3) options for organizational strategy. 2. Provide three (3) examples of companies that follow each of the selected strategies. 3. Provide a description of how three (3) companies used their strategies for competitive advantage. Lesson 1/Chapter 1.pdf Copyright © 2014 Pearson Education, Inc. 1 Managers are facing unique challenges as Digital Technologies permeate the workplace Chapter 1 - Managing in the Digital World Copyright © 2014 Pearson Education, Inc. 2 Chapter 1 Learning Objectives Information Systems Today • Describe the characteristics of the digital world and the advent of the Information Age. Evolution of Globalization • Define globalization, describe how it evolved over time, and describe the key drivers of globalization. Information Systems Defined • Explain what an information system is, contrasting its data, technology, people, and organizational components. The Dual Nature of Information Systems • Describe the dual nature of information systems in the success and failure of modern organizations. IS Ethics • Describe how computer ethics impact the use of information systems and discuss the ethical concerns associated with information privacy and intellectual property. Copyright © 2014 Pearson Education, Inc. 3 Information Systems Today Information Systems Today • Learning Objective: Describe the characteristics of the digital world and the advent of the Information Age. Evolution of Globalization • Define globalization, describe how it evolved over time, and describe the key drivers of globalization. Information Systems Defined • Explain what an information system is, contrasting its data, technology, people, and organizational components. The Dual Nature of Information Systems • Describe the dual nature of information systems in the success and failure of modern organizations. IS Ethics • Describe how computer ethics impact the use of information systems and discuss the ethical concerns associated with information privacy and intellectual property. Copyright © 2014 Pearson Education, Inc. 4 Information is a Valuable Resource Copyright © 2014 Pearson Education, Inc. 5 The Rise of the Information Age Copyright © 2014 Pearson Education, Inc. 6 Five IT Megatrends in the Information Age Copyright © 2014 Pearson Education, Inc. 7 Five IT Megatrends in the Information Age: Mobile Computing • Many believe that we’re living in a post-PC era. • In the developing world mobile devices often leapfrog traditional PCs. • Implications: – Increased collaboration – The ability to manage business in real time – New ways to reach customers Copyright © 2014 Pearson Education, Inc. 8 Five IT Megatrends in the Information Age: Social Media • Over 800 million Facebook users share status updates or pictures with friends and family • Organizations use social media to encourage employee collaboration or to connect with their customers Copyright © 2014 Pearson Education, Inc. 9 Five IT Megatrends in the Information Age: Big Data • IDC estimated that in 2011, 1.8 zettabytes of data were generated and consumed • How much is 1.8 zettabytes? 1.8 trillion gigabytes, or the equivalent of 57 billion 32GB iPads (IDC, 2011) • This number is forecast to grow by 50 times by 2020 Copyright © 2014 Pearson Education, Inc. 10 Five IT Megatrends in the Information Age: Cloud Computing • Web technologies enable using the Internet as the platform for applications and data • Many regard cloud computing as the beginning of the “fourth wave” – the applications but also the data reside in the cloud Copyright © 2014 Pearson Education, Inc. 11 Five IT Megatrends in the Information Age: Consumerization of IT • Consumerization may be the most significant trend affecting organizational IT personnel – Today’s employees bring their own devices to work – Initially used for emails / social networking • Now used for other important tasks such as enterprise resource planning – Creates security concerns – Opens up new opportunities Copyright © 2014 Pearson Education, Inc. 12 Evolution of Globalization The Rise of the Information Age • Describe the characteristics of the digital world and the advent of the Information Age. Evolution of Globalization • Learning Objective: Be able to define globalization, describe how it evolved over time, and describe key globalization drivers. Information Systems Defined • Explain what an information system is, contrasting its data, technology, people, and organizational components. The Dual Nature of Information Systems • Describe the dual nature of information systems in the success and failure of modern organizations. IS Ethics • Describe how computer ethics impact the use of information systems and discuss the ethical concerns associated with information privacy and intellectual property. Copyright © 2014 Pearson Education, Inc. 13 Key Factors Enabling Globalization • The fall of the Berlin Wall • The Windows operating system • The Internet — release of the Netscape Web browser • Falling telecommunications costs Copyright © 2014 Pearson Education, Inc. 14 The Rise of Information Systems Outsourcing • Outsourcing: moving of business processes or tasks to another company – Facilitated by declining telecommunication costs – Driven by cost reduction • Reduced labor costs for low-skilled labor: Apple outsourcing manufacturing to China • Reduced labor costs for relatively high-skilled labor: Boeing outsourcing 787 Aeronautical Engineering to Russia Copyright © 2014 Pearson Education, Inc. 15 The Rise of Information Systems Outsourcing: Key Reasons for Outsourcing • 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 source specific capabilities or skills Copyright © 2014 Pearson Education, Inc. 16 Opportunities of Operating in the Digital World • Falling Transportation Costs – Shipping a bottle of wine from Australia to Europe merely costs a few cents • Falling Telecommunication Costs – These have helped create shared perspectives of behavior, desirable goods, and even forms of government • Reaching Global Markets • Accessing a Global Labor Pool – Highly skilled or low cost labor pools exist in many countries which are now economically accessible Copyright © 2014 Pearson Education, Inc. 17 Challenges of Operating in the Digital World • Government – Political instability – Regulatory: privacy, control, standards, censorship • Geopolitical – Time zones, infrastructure – Workforce: welfare, demographics, expertise • Cultural – Working with, providing services too Copyright © 2014 Pearson Education, Inc. 18 Information Systems Defined The Rise of the Information Age • Describe the characteristics of the digital world and the advent of the Information Age. Evolution of Globalization • Define globalization, describe how it evolved over time, and describe the key drivers of globalization. Information Systems Defined • Learning Objective: Explain what an information system is, contrasting its data, technology, people, and organizational components. The Dual Nature of Information Systems • Describe the dual nature of information systems in the success and failure of modern organizations. IS Ethics • Describe how computer ethics impact the use of information systems and discuss the ethical concerns associated with information privacy and intellectual property. Copyright © 2014 Pearson Education, Inc. 19 Data: The Root and Purpose of Information Systems • Data is analyzed and processed into information • When there is an ability to understand the information and make decisions using it, it becomes knowledge Copyright © 2014 Pearson Education, Inc. 20 The Components of Information Systems • Five Components of Information Systems: – People – Telecommunications – Hardware – Data – Software Copyright © 2014 Pearson Education, Inc. 21 People: The Builders, Managers, and Users of Information Systems • An ecosystem of Users, Builders, Managers, and those who study information systems • As the use of information systems grows, so does the need for dedicated IS professionals • Growing demand focused on those with advanced and/or unique skills Copyright © 2014 Pearson Education, Inc. 22 IS Positions Rank Among the Best Jobs in America Rank Career Job Growth (10-year forecast) Median Pay 1 Software developer 32% $82,400 2 Physical therapist 30% $75,900 3 Financial adviser 30% $93,900 4 Civil engineer 24% $74,700 5 Marketing specialist 28% $52,200 6 Management consultant 24% $111,000 7 IT consultant 20% $96,500 8 Database administrator 20% $86,600 9 Financial analyst 20% $62,600 10 Environmental engineer 31% $81,200 Copyright © 2014 Pearson Education, Inc. 23 Organizations: The Context of Information Systems • Information Systems can help organizations – Be more productive and profitable – Gain competitive advantage – Reach more customers – Improve service to their customers • This holds true for all types of organizations— professional, social, religious, educational, and governmental Copyright © 2014 Pearson Education, Inc. 24 The Dual Nature of Information Systems The Rise of the Information Age • Describe the characteristics of the digital world and the advent of the Information Age. Evolution of Globalization • Define globalization, describe how it evolved over time, and describe the key drivers of globalization. Information Systems Defined • Explain what an information system is, contrasting its data, technology, people, and organizational components. The Dual Nature of Information Systems • Learning Objective: by able to describe the dual nature of information systems in the success and failure of modern organizations. IS Ethics • Describe how computer ethics impact the use of information systems and discuss the ethical concerns associated with information privacy and intellectual property. Copyright © 2014 Pearson Education, Inc. 25 Information Systems for Competitive Advantage • FedEx is just one firm using information systems for competitive advantage – Firms of all types and sizes can use information systems to gain or sustain a competitive advantage over their rivals – Whether it is a small mom-and-pop boutique or a large government agency, every organization can find a way to use information technology to beat its rivals Copyright © 2014 Pearson Education, Inc. 26 Why Information Systems Matter • Does IT matter? – A classic article in 2003 pointed out many existing information system elements have become commoditized—argues focus will turn to pure cost reduction – However, the continuous innovation still being seen in information systems has some companies realizing strategic advantage