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Unformatted text preview: 1 PA R T I IT in the Organization 1. Strategic Use of Information Technology in the Digital Economy 2. Information Technologies: Concepts and Management C H A P T E R 1 Strategic Use of Information Technology in the Digital Economy 1.1 Doing Business in the Digital Economy 1.2 Business Pressures, Organizational Responses, and IT Support 1.3 Information Systems: Definitions and Examples 1.4 Information Technology Developments and Trends 1.5 Why Should You Learn About Information Technology? 1.6 Plan of the Book Minicases: 1. Dartmouth College 2. Wal-Mart Appendix 1A: Porters Models LEARNING OBJECTIVES After studying this chapter, you will be able to: Describe the characteristics of the digital economy and e-business. Recognize the relationships between business pressures, organizational responses, and information systems. Identify the major pressures in the business environment and describe the major organizational responses to them. Define computer-based information systems and information technology. Describe the role of information technology in supporting the functional areas, public services, and specific industries. List the new technology developments in the areas of generic and networked computing and Web-based systems. Understand the importance of learning about information technology. c01.qxd 8/10/04 8:10 PM Page 1 Rkaul-2 Rkaul 2:Desktop Folder:Tempwork:PQ1011(Turbon):08/10: EQA 2 SIEMENS AG IS TRANSFORMING ITSELF INTO AN E-BUSINESS THE PROBLEM Siemens AG ( siemens.com ) is a German-based 150-year-old diversified and global manufacturer. With 484,000 employees, Siemens does business in 190 countries and has 600 manufacturing and R & D (research and development) facilities in over 50 countries. Its product lines and services are extremely var- ied, including communication and information, automation and controls, power, transportation, medical equipment, and lighting. Besides its own 13 operating divisions, Siemens AG has interests in other companies like Bosch (household appliances), Framatome (in Frances nuclear power industry), and Fujitsu computers. Facing hundreds of competitors, most of which are in foreign countries, the company had difficulties expanding its business in a fast-changing business en- vironment and was unable to enjoy the profit margin of some of its competitors. A major problem area was the coordination of the internal units of the company. Another one was the collaboration with so many suppliers and customers. In particular, its supply chain the flow of materials from suppliers through manu- facturing, distribution, and salesis very complex. Finally, it was necessary to find ways to contain costs and to increase customer service....
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- Spring '09