L Ch 1 LEARNING OBJECTIVES n n n

L Ch 1: LEARNING OBJECTIVES n n n What is an information system? COMPUTER LITERACY versus INFORMATION SYSTEMS LITERACY Understand impact of information systems on organization & management Understand MAJOR MANAGEMENT CHALLENGES TO BUILDING, USING INFORMATION SYSTEMS DESCRIBE ELECTRONIC COMMERCE & ELECTRONIC BUSINESS, RELATIONSHIP TO INTERNET & DIGITAL TECHNOLOGY Sheu 1

Some Terms n COMPUTER-BASED INFORMATION SYSTEMS (CBIS) • • • n Formal systems Fixed definition of data, procedures Collecting, storing, processing, dissemination, using data Information system may not be computer-based CBIS is broader than MIS Data vs Information vs Knowledge • Data: stream of raw facts before they have been organized into a meaningful form • Information: data that have been shaped into a form that is meaningful & useful to human • Knowledge: abstracted / generalized understanding of information. Organized body of information n KNOWLEDGE- AND INFORMATION-INTENSE PRODUCTS • PRODUCTS THAT REQUIRE A GREAT DEAL OF LEARNING & KNOWLEDGE TO PRODUCE Sheu 2

More Terms n Knowledge workers: n Data Workers: n Production (or service) Workers: n Internet /Intranet /Extranet Sheu 3

BUSINESS ENVIRONMENT n GLOBALIZATION – – – n INDUSTRIAL ECONOMIES – – n Management & Control Competition in world markets Global work group Globally delivered Future dep on ability to operate globally Industrial eco => knowledge/info – based econ. Knowledge-and-info-intense product Time-base competition Shorter product life (NB MKT life / R&D cycle time) TRANSFORMATION OF THE ENTERPRISE – Centralized => DECENTRALIZATION – Structured org. / specialist => FLEXIBLE / GENERALIST – Location dependent => LOCATION INDEPENDENCE – LOW TRANSACTION COSTS Sheu 4

FUNCTIONS OF AN INFORMATION SYSTEM ENVIRONMENT Customers Suppliers ORGANIZATION INFORMATION SYSTEM INPUT PROCESS OUTPUT FEEDBACK Regulatory Agencies Stockholders Sheu Competitors 5

New Roles of Information Systems in Org n n n Technical changes => managerial control => Institutional core activities (fg 1. 7) Interdependence with org & business strategies (fg 1. 6) Creating great impacts and opport. – Enabling new business model • • – Network revolution & internet • – Fewer levels / more power for lower-level Manage employee globally Redefine Org. boundary: Virtual org. (fg 1. 9) (mfg driven) Mass production => (Customer-driven) Customization / (technology-enable) Mass customization What you can do on internet tbl 1. 3 Changing management process • • ERP (Skip hierarchical reports) EC & EB (tbl 1. 5, fg 1. 11) Sheu 6

ELECTRONIC COMMERCE vs ELECTRONIC BUSINESS EC: n INTERNET LINKS BUYERS, SELLERS n LOWERS TRANSACTION COSTS n GOODS & SERVICES ADVERTISED, BOUGHT, EXCHANGED WORLDWIDE n BUSINESS-TO-BUSINESS TRANSACTIONS INCREASING EB: n INTRANET: BUSINESS BUILDS PRIVATE, SECURE NETWORK • E-MAIL, WEB DOCUMENTS, GROUP SOFTWARE EXTENDS EFFECTIVE COMMUNICATION & CONTROL • VIRTUAL ORGANIZATION (fg 1. 9) Sheu 7

ENTERPRISE RESOURCE PLANNING SOFTWARE INTEGRATES ALL FACETS: n PLANNING, MANUFACTURING, INVENTORY, SALES, FINANCE, ACCOUNTING n TRANSACTIONS ALERT ALL INVOLVED FACTORS n UPDATES FILES, SPEEDS ACTION, CUTS COST * Sheu 8

CHALLENGE OF INFO SYSTEMS n STRATEGIC: – The power of IT grown much rapidly than the ability of org to take adv of the IT. – How can org. use IT to enhance competitiveness & effectiveness n GLOBALIZATION: – How can firm understand the business & sys req. of a global environment. n INFO ARCHITECTURE & CULTURAL INERTIA – How can org. design info sys architecture to fully support business goal. – How to overcome organizational inertia. (Often require re-design org and change many people’s job and work behaviors) n INVESTMENT: – A new system costs a lot. Is the investment worthwhile? n RESPONSIBILITY & CONTROL: – How can org design system that people can control & understand – How can we ensure that IS is used ethically & responsibly? Sheu 9