Beyond the Fortress Fortify Your Content Before it Travels Beyond the Firm Walls.
1 MANAGING THE DIGITAL FIRM: CANADA AND BEYOND CANADA AND BEYOND CHAPTER 1.
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Transcript of 1 MANAGING THE DIGITAL FIRM: CANADA AND BEYOND CANADA AND BEYOND CHAPTER 1.
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MANAGING THE DIGITAL MANAGING THE DIGITAL FIRM:FIRM:
CANADA AND BEYONDCANADA AND BEYOND
CHAPTER 1
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Why Information Systems?
• Organizations need IS to survive and prosper
• New challenges in the Competitive environment– Emergence of the global economy– Transformation of industrial economies– Transformation of the enterprise– Emergence of the digital firm
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What is an Information System?
• A set of interrelated components that – collect (or retrieve),– process, – store, and – distribute information
• to support decision-making and control in an organization.
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DATA vs. INFORMATION
• Raw facts
• Represent events
• E.g. sales from a cash register
• Organized data
• Meaningful to people
• E.g. sales trends, comparison of brands
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Four activities in an IS
1. INPUT 2.PROCESSING 3.OUTPUT
4. FEEDBACK
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A Business Perspective on IS
Info
Systems
ORGANIZATIONS TECHNOLOGY
MANAGEMENT
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Literacy Components
• Computer Literacy– Knowledge of technical dimensions (IT)
• Information Systems Literacy– Broad understanding of computer-based IS– Encompasses management & organizational
dimensions– Includes technical dimensions (IT)
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Approaches to IS
• Technical Approach– Emphasizes mathematically based models to
study IS
• Behavioural Approach
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Two Approaches to IS
SOCIOLOGYSOCIOLOGY
ECONOMICSECONOMICSPSYCHOLOGYPSYCHOLOGY
COMPUTER COMPUTER
SCIENCESCIENCEOPERATIONS OPERATIONS
RESEARCHRESEARCH
MANAGEMENTMANAGEMENT
SCIENCESCIENCE
TECHNICAL APPROACHESTECHNICAL APPROACHES
MISMIS
BEHAVIOURAL APPROACHESBEHAVIOURAL APPROACHES
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The Preferred Approach to IS
IS performance is optimized when both the organization and the technology adjust to each other, until a good fit is obtained
The Sociotechnical Approach:
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The Impact of the Internet
Communicate & Collaborate
Access Information
Participate in Discussions
Supply Information
Find Entertainment
Exchange Business
Transactions
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Digital Organizational Design
• Flattening organizations
• Separating work from location
• Reorganizing workflows
• Increasing organizational flexibility
• Changing management process
• Redefining organizational boundaries
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Internet-based technologies
• Intranet– An internal network based on Internet
technologies
• Extranet– Private intranet that is accessible to
authorized outsiders
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The Emerging Digital Firm
• Electronic market– A marketplace that is created by computer &
communications technologies, linking buyers and sellers
• E-commerce– buying & selling goods and services electronically
• E-business– Organizational communication, coordination &
management using Internet technologies
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The Emerging Digital Firm
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Key Management Issues
• Strategic Challenge: – How can business use IT to become
competitive, effective and digitally enabled?
• Globalization Challenge• Information Architecture & Infrastructure
Challenge• IS Investment Challenge• Responsibility & Control Challenge
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Positive Impacts of IS
• Perform calculations & process paperwork faster than people
• Help companies learn about their customer’s preferences & purchases
• Provide new efficiencies (e.g. ATMs)• Provide advances in medicine• Internet allows distribution of information widely
and quickly
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Negative Impacts of IS
• May replace people & eliminate jobs
• System outages can cause critical shutdowns
• Heavy users may experience health problems
• Internet can be used to distribute illegal copies of software and violate intellectual property regulations
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Case: SK Wheat Pool
• What were the reasons SK Lab had to change its business processes?
• Why Lotus?
• What mgnt, org, and tech issues did the lab have to address?
• What measures could you use for evaluation of success? Was it successful?
• Is SK Lab a digital organization?
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c h a p t e r
11MANAGING THE DIGITAL MANAGING THE DIGITAL
FIRM:FIRM:
CANADA AND BEYONDCANADA AND BEYOND