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W09_MGCR331_Session_2_sv1

W09_MGCR331_Session_2_sv1 - MGCR 331 Information Systems IT...

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MGCR 331 – Information Systems IT Impacts on Organizations Session 2: Th September 4, 2008 The Modern IT Organization
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Today’s Class Why are information systems important and how have they evolved? Why are information systems important to you? Information Systems: Concepts and Definitions The Global, Web-Based Platform Business Pressures, Organizational Responses, and IT Support Jan 8, 2009 2
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LEARNING OBJECTIVES Examine the importance of IS Differentiate among data, information, and knowledge Differentiate between information technology infrastructure and information technology architecture Describe the global business environment and the new information technology infrastructure Discuss the relationships among business pressures, organizational responses, and information systems Examine how information systems are used by different functional areas in an organization Jan 8, 2009 3
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Is there any business process that has not been influenced by IT? Jan 8, 2009 4 Yes No 81% 19% 1. Yes 2. No
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Got Milk? Jan 8, 2009 5
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IT and business processes Every business process has now become: Digital : all analog content and processes are being digitized Virtual : the process of manipulating digitized content can be done at very high speeds, often without the physical presence of users Mobile : thanks to wireless technologies, computing, connecting, collaborating can be done anywhere Personal : Individuals can perform all these processes on their own computing devices Jan 8, 2009 6
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Addicted to IT Video: The Transformation Age: “Addicted to IT” Jan 8, 2009 7
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Organizational System Jan 8, 2009 8 Process Task Organization Structure Customers Suppliers Customer service Communi -cation Supply chain Industry Merging industries EDI; collaboration Social networking; online communities Customer self- service Re-shifting job structures Online banking Virtual teams
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IT: Now and Then Jan 8, 2009 9
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IT evolution: Price versus Output Jan 8, 2009 10 Source: U.S. Government Stats; http://www.econ.yale.edu/~nordhaus/homepage/sweden%20061300c.PDF Datapoint 2200
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Does IT Matter? Jan 8, 2009 11 MAIN THESIS IT is a commodity and can be easily copied and acquired IT cannot provide competitive advantage Firms overestimated the strategic value of IT and overspent on technology IT Doesn’t Matter!
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Jan 8, 2009 12 Impact of IT Investments: $2 trillion (into computers, software and other technological products) Productivity Increase: 2.6 percent/year (contrast with 1.4 percent annual increase from1974 to 1995) Source: Scott Thurm, "Technology Spurs Economic Expansion," Wall Street Journal, January 31, 2000 http://www.ncpa.org/pd/economy/pd013100d.html
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