1、1.1 2006 by Prentice Hall1.2 2006 by Prentice Hall1Chapter 1.3 2006 by Prentice HallOBJECTIVES Explain why information systems are so important today for business and management Evaluate the role of information systems in todays competitive business environment Assess the impact of the Internet and
2、Internet technology on business and government 1.4 2006 by Prentice Hall Define an information system from both a technical and business perspective and distinguish between computer literacy and information systems literacy Identify the major management challenges to building and using information s
3、ystems OBJECTIVES (Continued)1.5 2006 by Prentice HallDaimlerChrysler Case Challenge: 104 plants, 37 countries, 14,000 suppliers Solutions: Integrated Volume Planning System connects demand side of business with suppliers, reducing inventories. Powerway helps 3,400 suppliers track parts and quality,
4、 reducing errors. Demonstrates ITs role in operational excellence, better quality products, and agilitytime to market Illustrates the emerging digital firm landscape where information can flow seamlessly among business partners to create a superior customer experience1.6 2006 by Prentice HallWHY INF
5、ORMATION SYSTEMS? 1.7 2006 by Prentice Hall IT is the largest single component of capital investment in the United States. About $1.8 trillion is spent each year by American businesses. Managers and business students need to know how to invest this capital wisely. The success of your business in the
6、 future may well depend on how you make IT investment decisions. WHY INFORMATION SYSTEMS?1.8 2006 by Prentice HallFigure 1-1WHY INFORMATION SYSTEMS?Source: Based on the data in U.S. Department of Commerce, Bureau of Economic Analysis, National Income and Product Accounts, Tables 5.2 and 5.8, 2004.1.
7、9 2006 by Prentice Hall WHY INFORMATION SYSTEMS?1.10 2006 by Prentice HallFigure 1-2WHY INFORMATION SYSTEMS?1.11 2006 by Prentice Hall IT is one of the most important tools managers have to increase productivity and efficiency of businesses. According to the Federal Reserve Bank, IT has reduced the
8、rate of inflation by 0.5 to 1% in the last decade. For firms this means IT is a major factor in reducing costs. It is estimated that IT has increased productivity in the economy by about 1% in the last decade. For firms this means IT is a major source of labor and capital efficiency. WHY INFORMATION
9、 SYSTEMS?Productivity:1.12 2006 by Prentice Hall Create competitive advantage: IT makes it possible to develop competitive advantages. New Business Models: Dell Computer has built its competitive advantage on an IT enabled build-to-order business model that other firms have not been able to imitate.
10、 WHY INFORMATION SYSTEMS?Strategic Opportunity and Advantage:1.13 2006 by Prentice Hall Create new services: eBay has developed the largest auction trading platform for millions of individuals and businesses. Competitors have not been able to imitate its success. Differentiate yourself from your com
11、petitors: Amazon has become the largest book retailer in the United States on the strength of its huge online inventory and recommender system. It has no rivals in size and scope. WHY INFORMATION SYSTEMS?Strategic Opportunity and Advantage:1.14 2006 by Prentice Hall Carr has written that whatever ad
12、vantages firms build using IT can be easily copied by competitors. This view is not supported by the evidence: Amazon, eBay, Dell, Wal-Mart and Apples iTunes are just a few firms that have built and maintained technology-based advantages.How Much Does IT Matter?WHY INFORMATION SYSTEMS?1.15 2006 by P
13、rentice Hall Commoditization of technology is typically a spur to innovation and new business models, products and services. Competitive advantage derives not from the technology, but on how businesses use the technology. Innovations in business processes, management and organization are not easily
14、copied from one firm to another.How Much Does IT Matter?WHY INFORMATION SYSTEMS?1.16 2006 by Prentice Hall Internet growth and technology convergence Transformation of the business enterprise Why IT Now? Digital Convergence and the Changing Business Environment Growing impact of IT in business firms
15、 can be assessed from the following five factors:WHY INFORMATION SYSTEMS?1.17 2006 by Prentice Hall Growth of a globally connected economy Growth of knowledge and information-based economies Emergence of the digital firm WHY INFORMATION SYSTEMS?Why IT Now? Digital Convergence and the Changing Busine
16、ss Environment (Continued)1.18 2006 by Prentice Hall Growth of the Internet: 120 million online in the United States, 500 million global users The Internet is bringing about a convergence of telecommunications and computing: VoIP telephones. WHY INFORMATION SYSTEMS?The Internet and Technology Conver
17、gence:1.19 2006 by Prentice Hall Growth in e-business, e-commerce, and e-government Internet is bringing about rapid changes in markets and market structure: financial services and banking such as eT. The Internet is making many traditional business models obsolete: the corner music store and video
18、store. WHY INFORMATION SYSTEMS?The Internet and Technology Convergence: 1.20 2006 by Prentice Hall Flattening Decentralization FlexibilityWHY INFORMATION SYSTEMS?Transformation of the Business Enterprise:1.21 2006 by Prentice Hall Location independence Low transaction and coordination costs Empowerm
19、ent Collaborative work and teamwork WHY INFORMATION SYSTEMS?Transformation of the Business Enterprise (Continued):1.22 2006 by Prentice Hall Management and control in a global marketplace Competition in world markets Global workgroups Global delivery systems WHY INFORMATION SYSTEMS?Globalization: 1.
20、23 2006 by Prentice Hall Knowledge and information-based economies New products and services Knowledge as a central productive and strategic assetWHY INFORMATION SYSTEMS?Rise of the Information Economy:1.24 2006 by Prentice Hall Time-based competition Shorter product life Turbulent environment Limit
21、ed employee knowledge base WHY INFORMATION SYSTEMS?Rise of the Information Economy (Continued): 1.25 2006 by Prentice HallThe Growth of the Information Economy Figure 1-3WHY INFORMATION SYSTEMS?Source: U.S. Department of Commerce, Bureau of the Census, Statistical Abstract of the United States, 2003
22、, Table 615; and Historical Statistics of the United States, Colonial Times to 1970, Vol. 1, Series D, pp. 182-232.1.26 2006 by Prentice Hall Digitally enabled relationships with customers, suppliers, and employees Core business processes accomplished using digital networks Digital management of key
23、 corporate assetsWHY INFORMATION SYSTEMS?Emergence of the Digital Firm: 1.27 2006 by Prentice Hall Agile(灵活)(灵活) sensing and responding to environmental changes Seamless(无缝)(无缝) flow of information within the firm, and with strategic partners WHY INFORMATION SYSTEMS?Emergence of the Digital Firm (Co
24、ntinued): 1.28 2006 by Prentice HallFigure 1-4WHY INFORMATION SYSTEMS?1.29 2006 by Prentice HallPERSPECTIVES ON INFORMATION SYSTEMS What Is an Information System? A set of interrelated components that collect (or retrieve), process, store, and distribute information to support decision making and co
25、ntrol in an organization 1.30 2006 by Prentice HallPERSPECTIVES ON INFORMATION SYSTEMS What is an Information System? (Continued) Data: Streams of raw facts representing events such as business transactions Information: Clusters of facts meaningful and useful to human beings in the processes such as
26、 making decisions1.31 2006 by Prentice HallPERSPECTIVES ON INFORMATION SYSTEMS Data and Information Figure 1-51.32 2006 by Prentice HallPERSPECTIVES ON INFORMATION SYSTEMS Functions of an Information System Figure 1-61.33 2006 by Prentice Hall PERSPECTIVES ON INFORMATION SYSTEMS Computer-Based Infor
27、mation System (CBIS)1.34 2006 by Prentice HallPERSPECTIVES ON INFORMATION SYSTEMS Information systems are more than just technology. Businesses invest in IS in order to create value and increase profitability. A Business Perspective on Information Systems 1.35 2006 by Prentice Hall PERSPECTIVES ON I
28、NFORMATION SYSTEMS A Business Perspective on Information Systems (Continued) 1.36 2006 by Prentice HallPERSPECTIVES ON INFORMATION SYSTEMS The Business Information Value Chain Figure 1-71.37 2006 by Prentice HallPERSPECTIVES ON INFORMATION SYSTEMS Information Systems Are More than Computers Figure 1
29、-81.38 2006 by Prentice Hall PERSPECTIVES ON INFORMATION SYSTEMS 1.39 2006 by Prentice Hall PERSPECTIVES ON INFORMATION SYSTEMS Major Business Functions Rely on Information Systems1.40 2006 by Prentice HallThree Important Dimensions of Information Systems Organizations Managers Technology PERSPECTIV
30、ES ON INFORMATION SYSTEMS You will need to understand and balance these dimensions of information systems in order to create business value. Dimensions of Information Systems 1.41 2006 by Prentice Hall People Structure Business processes Culture Politics PERSPECTIVES ON INFORMATION SYSTEMS The Organ
31、izational Dimension of Information Systems1.42 2006 by Prentice HallManagers are: PERSPECTIVES ON INFORMATION SYSTEMS The Management Dimension of Information Systems1.43 2006 by Prentice HallPERSPECTIVES ON INFORMATION SYSTEMS The Management Dimension of Information Systems (Continued)1.44 2006 by P
32、rentice Hall PERSPECTIVES ON INFORMATION SYSTEMS The Technology Dimension of Information Systems 1.45 2006 by Prentice Hall PERSPECTIVES ON INFORMATION SYSTEMS The Technology Dimension of Information Systems (Continued) 1.46 2006 by Prentice HallComplementary assets: New business processes Managemen
33、t behavior Organizational culture Training PERSPECTIVES ON INFORMATION SYSTEMS Complementary Assets and Organizational Capital1.47 2006 by Prentice Hall Supportive business culture that values efficiency and effectiveness Efficient business processes, decentralization of authority Highly distributed
34、 decision rights A strong information system (IS) development team PERSPECTIVES ON INFORMATION SYSTEMS Organizational capital: 1.48 2006 by Prentice HallPERSPECTIVES ON INFORMATION SYSTEMS Variation in Returns on Information Technology Investment Figure 1-9Source: Based on Erik Brynjolfsson and Lori
35、n M. Hitt, “Beyond Computation: Information Technology, Organizational Transformation and Business Performance.” Journal of Economic Perspectives 14, no. 4 (Fall 2000). Used with permission of the American Economic Association.1.49 2006 by Prentice HallCONTEMPORARY APPROACHES TO INFORMATION SYSTEMS
36、Sociotechnical Systems Optimize systems performance: Technology and organization Organizations mutually adjust to one another until fit is satisfactory 1.50 2006 by Prentice HallCONTEMPORARY APPROACHES TO INFORMATION SYSTEMS A Sociotechnical Perspective on Information Systems Figure 1-111.51 2006 by
37、 Prentice HallThe Challenge of Information Systems: Key Management Issues The information systems investment challenge: How can organizations obtain business value from their information systems? The strategic business challenge: What complementary assets are needed to use information technology eff
38、ectively? The globalization challenge: How can firms understand the business and system requirements of a global economic environment?1.52 2006 by Prentice HallThe Challenge of Information Systems: Key Management Issues The information technology infrastructure challenge: How can organizations develop an information technology infrastructure that can support their goals when business conditions and technologies are changing so rapidly? Ethics and security: How can organizations ensure that their information systems are used in an ethically and socially responsible manner?