CHAPTER 1

MANAGING IT IN A DIGITAL WORLD

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MANAGING INFORMATION TECHNOLOGY, 7e

.

Information Technology (IT):

Computer technology (hardware and software)
for processing and storing information
and
Communications technology (voice and data networks)
for transmitting information.

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MANAGING INFORMATION TECHNOLOGY, 7e

Part I
Technologies available today and emerging technology trends for
hardware, software, networks and data
Part II
Software applications to support business operations and business
intelligence, as well as e-business applications
Part III
Best practices for acquiring and implementing new systems and
managing IT projects
Part IV
Planning and managing an IS departments resources, as well as
managing information security; social/ethical/legal issues
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MANAGING IT IN A DIGITAL WORLD

IT has become more pervasive
- IT is not used only by back-office workers, but also front-line workers
- More and more employees are reliant upon IT for accomplishing their work
activities

Business managers, not just IT managers, are responsible for IT

investments and effective system utilization
By the Year 2000, the total annual cost of IT purchases was more
than half of the annual capital expenditures of businesses in
developed countries
IT is linking emerging, developing and developed economies,
which can help level the economic playing field
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RECENT INFORMATION TECHNOLOGY TRENDS

Computer Hardware: Faster, Cheaper, Mobile
- Computers have become smaller and faster
- Hardware prices have dropped
- High growth in small, mobile devices for communications and
access to the Internet

Microcomputers
(1970s)

IBM Personal
Computer
(1981)

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Personal Digital
Assistants
[PDAs]
introduced
(early 1990s)

Laptop
Computers
outsell desktops
(2005)

Smart Phones
introduced
(2007)

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RECENT INFORMATION TECHNOLOGY TRENDS

But it can be hard to predict long-term IT trends.

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RECENT INFORMATION TECHNOLOGY TRENDS

Computer Software: Integrated, Downloadable, Social
Integrated
- Standardization has enabled more integration
- Many standards are just de facto standards (Microsoft
Windows, Office, Internet Explorer)
- Many companies have benefitted from Enterprise Systems
investments (e.g., electronic health records in hospitals)

Enterprise Systems:
Software packages with integrated modules that
pass common business transactions across groups,
divisions, and geographic locations in real time
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RECENT INFORMATION TECHNOLOGY TRENDS

Computer Software: Integrated, Downloadable, Social
Downloadable
- Bit-size software programs for smart phones downloadable
from App stores
- Download speeds have increased so that even large files can
be downloaded by users
Social
- Growth of Web 2.0 (social media) applications (such as
Facebook, LinkedIn)
- Used by companies for marketing and branding activities
- Collaboration tools connect employees across distance
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RECENT INFORMATION TECHNOLOGY TRENDS

Computer Networks: High Bandwidth, Wireless and Cloudy
- High demand for high speed Internet access
- Wireless technologies to replace hardwired lines; support for
mobile devices anytime/anywhere
- Use of Internet to access remote hosts, data storage, and other IT
capabilities from the Cloud

ARPANET
ARPANET created
created
(late
(late 1960s)
1960s)

Introduction
Introduction of
of the
the
World
World Wide
Wide Web
Web
(early
(early 1990s)
1990s)

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Consumer highspeed
speed Internet
Internet
connections
connections
widely
widely available
available
(early 2000s)

Number
Number of
of Internet
Internet
users
users tops
tops 1
1
billion
billion
(2005)
(2005)

Wireless
Wireless Internet
Internet
access
access common
common
in
in many
many locations
locations
(today)
(today)

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NEW WAYS TO COMPETE

New ways for businesses to use IT to compete on:
Low Cost Competing with other businesses by being a lowcost producer for a good or a service
Automating transaction time
Shortening order cycle time
Providing operational information for decision making

Differentiation Competing with other businesses by offering

products or services that customers prefer due to superiority in
product innovativeness, quality or customer service

Giving sales personnel information to better serve customers

Providing just-in-time supplies for customers
Creating new information-based products
Allowing product customization by the consumer

OR Both Low Cost and Differentiation, enabled by IT

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NEW WAYS TO WORK

New ways for people to work using IT:
Telecommuters: Individuals who use mobile technology
and/or network connections to work remotely
Pros
- Flexibility
- Work-life balance
Cons
- Feelings of being isolated
- Concerns about job promotion opportunities
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NEW WAYS TO WORK

New ways for people to work using IT, continued:
Virtual Teams: Geographically separated work teams
whose members communicate through the use of IT
Pros
- Workers can be located anywhere
- Teams can be composed of members with specialized
skills from different business units or companies
Cons
- Coordination across team members more difficult
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NEW WAYS TO WORK

New ways for people to work using IT, continued:
Free Agents: Individuals who choose to contract out their
services and are not tied to an organization
Pros
- Work may change more than when an employee of a
single organization
Cons
- Lack of benefits
- Unpredictability in scheduling and work
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MANAGING IT IN ORGANIZATIONS
Information Systems (IS) Department:
The organizational unit or department that has the primary
responsibility for managing IT
Information Systems departments can vary greatly across
businesses, depending on the organizations dependency on IT
for:
reliable & secure business operations and
competitive advantage based on new technologies

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MANAGING IT IN ORGANIZATIONS
Example: IS Organization in Support
Mode
- Low Need for New Information
Technology for competing
- Low Need for Reliable & Secure
Information Technology for
business operations
- IT used mostly to support backoffice support functions

Support
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MANAGING IT IN ORGANIZATIONS
Example: IS Organization in
Strategic Mode
- High Need for New Information
Technology for competitive
advantage
- High Need for Reliable & Secure
Information Technology for
business operations
- Strategically dependent on IT to
enable new business strategies

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Strategic
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MANAGING IT IN ORGANIZATIONS
Three Types of IT Resources (Figure 1.1 based on Ross et al.)
- Technology Infrastructure: Computers, software and networks
that enable an organization to conduct business and share
information across organizational units as well as business partners
- Human Resources: IT professionals and managers who have the
needed mix of technology, business and interpersonal skills to plan
for, design and manage the other IT resources
- Business/IT Relationships: Established relationships between
business and IT workers to ensure that the other IT resources are
aligned with the business needs
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IT LEADERSHIP ROLES
IT leaders have to work closely with the senior managers o keep the
In many organizations, the senior IT leader is a CIO.
companys IT resources aligned with the business goals
Chief Information Officer (CIO):
A firms high-level general IT manager with both technology
and business leadership experience. Together with the
organizations executive management team the CIO ensures the
alignment of IT resources with business goals and plans for
integration of IT for strategic advantage.

Two primary responsibilities:

- Computer and communication operations
- Acquiring and maintaining applications software

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IT LEADERSHIP ROLES
Example: IS Organization Chart

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COPYRIGHT

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or
transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or
otherwise, without the prior written permission of the publisher. Printed in the United States of
America.

Copyright 2012 Pearson Education, Inc.

Publishing as Prentice Hall

Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall

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