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Intro_to_Information_Systems_Ch01[1]

Intro_to_Information_Systems_Ch01[1] - Introduction to...

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Introduction to Information Systems
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Chapter 1 The Modern Organization in the Global, Web-Based Environment 1. Differentiate among data, information, and knowledge. 2. Differentiate between information technology architecture and information technology infrastructure. 3. Describe the global business environment and the new information technology infrastructure. 4. Discuss the relationships among business pressures, organizational responses, and information systems. Learning Objectives
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1.1 Information Systems: Concepts and Definitions 1.2 The Global Web-Based Platform 1.3 Business Pressures, Organizational Responses, and IT Support 1.4 Why Are Information Systems Important to You? 1.5 The Plan of This Book Chapter Outline What’s in for me? IT ACC FIN MKT POM HRM MIS 3 Student Web Site Web Quizzes Lecture Slides in PowerPoint Virtual Company ClubIT: Website and Assignments WileyPLUS e-book Flash Cards Software Skills Tutorials: Using Microsoft Office 2007 (Premium Version ONLY) How-To Animations for Microsoft Office (Premium Version ONLY) Web Resources wiley.com/college/rainer
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4 CHAPTER 1 The Modern Organization in the Global, Web-Based Environment Google Puts Its Platform to Work OPENING CASE The Business Problem The IT Solution When the World Wide Web needed new search methods to handle its size and complexity, Sergey Brin and Larry Page developed their PageRank algorithm (an algorithm is a mathe- matical formula) and founded Google ( www.google.com ). PageRank is a complicated mathe- matical formula that determines the relative importance of a Web page by analyzing the number of links to that page, along with other factors. In June 1999, Google focused solely on algorithmic searches, and the company earned revenue by licensing its search technology to other companies. Google’s own Web site had no advertising and no content other than search results. In December 1999, Google intro- duced paid listings, which were short text advertisements identified as “Sponsored Links” that appeared either next to, or interspersed with, search results. By mid-2001, despite hav- ing spent nothing on marketing, Google was the ninth largest U.S. Web site with 24.5 mil- lion unique monthly visitors. In mid-2004, Google had its wildly successful initial public offering (IPO). Given Google’s incredible success, you would think that the company did not have a business problem. However, the company had to consider four possibilities concerning its strategic direction. First, Google could remain a search company and continue to refine its search algorithms and targeted advertising. Second, it could become a portal like Yahoo ( www.yahoo.com ) or Microsoft Network (MSN) ( www.msn.com ). A portal is a Web-based, personalized gateway to a great deal of relevant information from various information sys- tems and the Internet. Third, it could develop its role in electronic commerce (e-commerce) by facilitating transactions. Electronic commerce is the buying and selling of products, ser- vices, or information via computer networks, including the Internet. Fourth, it could de-
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