role impacts of is notes

8/3/2019 Role Impacts of is Notes

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Communication earn ng, row eve opmen

Entertainment

o ty Survival


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WhatISDoes

(Functions) WhatIS

Delivers...

Capture

Process

ene s

Generate

Store

Speed

Consistenc

Retrieve

Precision

e a y


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Learnability:Howeasyisitforuserstoaccomplishbasictasksthers me eyencoun er e es gn

Efficiency:Onceusershavelearnedthedesign,howquicklycan

Memorability:When

users

return

to

the

design

after

aperiod

of

not

,

Errors:Howmanyerrorsdousersmake,howseverearethese,

Satisfaction:Howpleasantisittousethedesign?


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Mana ementFunctions


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Greaterparticipation

in

foreign

trade

reduces

Globaltradeintechnologyintensiveproducts

registeredthehighestgrowthrateinallthe

regionsexcept

Latin

America


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Informationandcommunicationtechnology(ICT)infrastructureis

OpposingView:ToomuchstockisgiventoICTexpansionasanengineofgrowth,whilenotenoughattentionisgiventohumancapital,health,andcivi in rastructure roa s,c eanwater,e ectricity,etc. 2

Countered:

ICT

infrastructure

expansion:

andtransportation

allowsfornewmethodsofcrossborderinvestmentsandtheexpansionof

activitiesvitaltothenewglobaleconomy connectivityandseamlesscommunicationarerevolutionizingthestructuresofeconomicexchange.[3]


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TheimpactofICTsextendsbeyondtheeconomicdomain,with+ve

spillovereffectsonvariousdimensionsofsociallife: enhancelearning[1.a]

improvehealth

care

[1.b]

empowermarginalizedwomen[1.c]

maintaingoodgovernance[1.e]

Developingcountries

may

not

see

the

same

returns

on

their

ICT

nvestmentsas eve ope countr es.I T eg nsto e vergross omest cproduct(GDP)percapitagrowthonlyafteracertainthresholdofICTdevelopmentisattained.[2]

Unlikedeveloped

countries,

developing

countries

have

little

of

the

supportinginfrastructurenecessaryfortheexpansionandutilizationoftheproductivecapacityofICTs[3]

Networkexpansion&efficiency&Privatisation


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EconomicfactorsarecorrelatedwithICTexpansion(95%conf.)

ICT services are rice sensitive

Universitieshave

the

largest

impact

on

ICT

ns u onsarene userso

Graduateshavehigherannualincomes

GraduatesengageICTintheirproductivecapacity

ICTexpansionisafunctionof(road)transportinfrastructure


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Trans ortation Ener &Industr

Education Securit

Agriculture Bankin &Finance

HealthCare

Printing&

Packaging

Construction

Education

Food&Beverage

Travel,Transportation&

Media,Music&

Entertainment

Transshipment

Science,R&D,Innovation

Advertising

ProfessionalServices


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,

Classical:structure

and

requirements

to

sustain

it

HumanRelations:people;groupandindividualneeds

Systems:responsetoexternalandinternalinfluences

Contingency:balanceofanumberofkeyvariables(structure;strategy;staffingetc.)


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intricatehumanstrategiesdesignedtoachieveobjectives~Argyris (1960)

theirmachinestoaccomplishgoals~Simon1979

systemsofinterdependenthumanbeings~Pugh(1990)

ameansofworkingwithotherstoachievegoals~Stewart(1994)


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Administration

Businesses:Profit

Motive

Drucker: ur oseisnottoearn rofit rofitisameasureofhowwellthebusinessperforms i.e.creatin acustomer ortransaction


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Pro rietor SelfOwner

SoleTraders

FamilyBusiness

Ownership

of

Assets:

Partnerships General

xposure o

Liability

Shareof

Profit

Limited Controlof

Corporations PrivateLimitedLiability

DecisionMaking

Execution Authority

Communication


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1. workinginward

(improving

afirms

internal

processes

and

structure)

. withcustomers)and

3. workingacross(improvingitsprocessesandrelationshipswithitsbusiness

partners)

Egs:

Grain er GEPowerS stems WireNovaScotia TheShi in

Industry,Cisco

Systems

and

UPS

Supply

Chain

Solutions,

Semco,S.A.,ADayintheLifeofanElancer,GeneralMillsandLandOLakes,SaraLeeBakeryGroup,andDellComputer

315


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WorkingInward:

Connectivity

&

Belonging

WorkingOutward:

Customers&Services

or ng

cross:Suppliers&Backoffice

316

Figure31StrategicUsesofInformationSystems


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Use of the Internet b businesses in mid late 90s

set

off

a

revolution

in

the

use

of

IT

t z ngt e nternettocon uct us ness ecamet estrategicuseofIT

Strategic=havingasignificant,longtermimpactonafirmsgrowth,industryand$$

317


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IntroductionLast

20

Years

Strategic

Uses

of

IT

,

hottopic

=end

user

computing

(working

HelpemployeeslearnaboutPCs

strategicusefocusedoutwardtogain

Nowconsiderednormal=competitivenecessity

Vs.competitiveadvantage

318


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IntroductionLast

20

Years

Strategic

Uses

of

IT

cont.

Strategicuse

attention

turned

inward

to

=

totallyredesignhowtheenterpriseoperated

Introductionof

ERP

systems

was

also

aimed

at

internaloperations,specificallyprovidingsingle

319


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IntroductionLast

20

Years

Strategic

Uses

of

IT

cont.

.

Internetspotential

becoming

evident

= u w u

competitiveadvantage

MostestablishedfirmsinitiallyusedtheInternet

technologyinternally,buildingintranetstoimprove

company

processes Publishingeforms

Accompanyingworkflowprocesses

320


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IntroductionLast

20

Years

Strategic

Uses

of

IT

cont.

Useof

the

Internet

for

business

underway

Burstingofthedotcombubble

EBusiness as ecomemorerea ity ase

IntegrationoftheInternetintohowcompaniesworkhas

proceeded

early00s

Theme = levera in traditional o erations b usin the

Internetto

work

more

closely

with

others

forbricksandmortarfirms

2006

Barbara

C.

McNurlin.

PublishedbyPearson

Education.

321


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IntroductionLast

20

Years

Strategic

Uses

of

IT

cont.

2005 Somethinghaschanged

EspeciallywithregardstotheuseofITforcompetitive

advantage

SomemayquestionITsabilitytogivecompaniesa

competitiveedgebutitisabsolutelynecessaryfor

competitiveparity

Beingused

strategically:

Inward

Across

322


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IntroductionWhither

the

Internet

Revolution?

Isthe

Information

Revolution

dead?

BritishRailwayRevolution mid1800s

10

fold

increase

after

the

boom

Duringboom=greatexcitementandsmallcompanies

flourished

After=glamourgone.Businessbecameseriousandfullofhard

Industrybecameorderlyandprofitsbegantoreflectrealreturns

Connectingindustries

ace orspace o owe y e rea ea

323


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IntroductionWhither

the

Internet

Revolution?

cont.

We are now in a eriod where or anizations are

re

architecting

themselves

around

Internet

technologies

Realgains

will

come

when

Internet

technology

a aptstoorganizationsan peop e Whenthetechnologydisappearsandbecomespartof

life

Itwill

be

quiet

compared

to

frenzy

of

99/00

but

manythinkitwillbeagiantrevolution

324


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IntroductionThe

Cheap

Revolution

to

buying

cheapgenericproducts

CheapTech

Google=runson100,000cheapservers

Onebreaks

=discards

Dellification

MovedfromsellingPCstoalsosellingservers,printers,storagedevices.

Labor outsourcingto

other

countries

Filmproduction camcordersetc.

Software LinuxVs.Microsoft

Telecommunications VoiceoverIP

325


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E

Business

Drivers

acceptance

of

e

business: Wideaccesstoapublicnetwork

Standardcommunicationprotocol

Standarduserinterface

,reducingaccessandcommunicationscosts PreInternet 95%ofFortune500usedEDIVs.2%ofallU.S.companies

Withstandardized

communication

protocols

and

user

interfaces,implementationandtrainingcostsarefarlower

,thesystems,allowingrapidgrowth

326


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HarvardBusiness

Review

May

2003

Bottomline=ITdoesntmatteranymore,atleastnotstrategically

ITis

an

infrastructure

technology,

like

rail,

electricity,

telephoneetc.

Suchtechnologycancreateastrategicadvantageforanindividualfirmatthebeginningofitslifecyclewhenitis

Carr=IT

is

now

at

the

end

of

build

out

and

is

neither

proprietaryorexpensive

=Acommodit whichisavailabletoan oneandwont ivean individualfirmacompetitiveadvantage

327


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.

Reachedtheendofitsbuildout:1. PowerofITnowoutstripstheneedsofbusiness

2. ITprices

have

dropped

=now

affordable

3. CapacityofInternethascaughtupwithdemand(fibresurplus)

4. Manyvendorswanttobeseenasutilities

5. Investmentbubblehasburst

Whenaninfrastructuretechnologyreachestheendofitsbuildout,itsimplybecomesacostofdoingbusiness

AlthoughIT

is

necessary

for

competitiveness,

Competitiveadvantagecomesfromthefirmsbusinessmodel

328


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MISManager:Considerations2

1960s 1970s 1980s 1995+

Roleof

IS Efficiency Effectiveness Strategic Value

Creation

JustificationROI

Productivity&Com etitiveness Addin Value

o ua y


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MISManager:Considerations

organiastional systems.

IScontributestoboththerevenueandexpense

sidesof

the

Balance

Sheet.

Need

to

consider

IS

Strategies.

Technologysupports

and

consumes

significant

resourcesofanorganization.Needtoevaluatenvestmentper ormancean n ormat onnee s.


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ITCapitalInvestmentITCapitalInvestment

, , ,communicationsequipment,grewfrom32%to51%between1980and2008.


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Totalinvestmentreachedonetrilliondollarsin2008,withover500

billion dollars of that invested in information technolo .

Whyit

is

that

the

percentage

of

total

investment

devoted

to

IT

has

increasedsomuchsince1980?

Otherkindsofcapitalinvestmentaremachineryandbuildings.

Whywould

firms

increase

IT

investment

faster

than

machinery

and

.

Capitalsubstitution:thepriceofITcapitalhasbeenfallingex onentiall whilethe riceofmachineandbuildin shasbeen

growingat

slightly

more

than

the

rate

of

inflation.

Whereverpossible,firmswouldmuchratherinvestinmoreITthan

greater. Whynotinvestintelework ITsystemsratherthanbuildingan

expensive

new

office

tower?


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VariationinReturnsonITInvestmentVariationinReturnsonITInvestmentAlthough,onaverage,investmentsintechnologyproducereturns

far

above

osere urne y

otherinvestments,thereisconsiderablevariationacrossfirms.


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Quadrant1re resentsfirmsthatinvestmuchlessinITbutstillreceivestrongreturns.

Quadrant2representsfirmsthatinvestagreatdealinITandreceiveagreatdealinreturns.

Quadrant3representsfirmsthatinvestmuchlessinITandreceive oorreturns.

Quadrant4representsfirmsthatinvestagreatdealinITbutreceivepoorreturns.


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Services)

Costs

of

Production ManagementCosts

CostsofInformation

Costsof

Market

Participation

&

Engagement


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FlatterOrganizationStructures

ommun ca on eac

Automated

Information

Access Decisionmakingcycletimes

TechnologyInteraction

NatureofWork

Teambasedcoordination&collaboration

MeasurementofEffort(trendtowardsdeliverables)

Consider:

Shifttowardknowledgebasedwork

ProductivityParadox:areemployeesmoreefficient?


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Culture: NormsandValuesthatguidebehaviour andpriorities

Learning Access

DeliveryMethods

Motivation Processofengagement

Change Process&Speedofchange

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