ADMS 2511 Chapter all: ADMS2511 Full Summary Notes

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14 Oct 2015
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Chapter 1 The Modern
Organization in the Global, Web-
Based Environment
INFORMATION SYSTEMS: CONCEPTS AND DEFINITIONS – the purpose of IS is to get the
right information to the right people at the right time. Data and knowledge are closely related to
IS.
Data, information, and knowledge – data items are information that are recorded, classified
and stored but not organized. Information is data that has been organized so they have
meaning. Knowledge is data that has been organized and processed to convey understanding,
experience, and expertise.
Information technology architecture – a high-level map or plan or the information assets in
an organization. It shows how all aspects of IT in an organization fit together.
Information technology infrastructurethis consists of physical facilities, IT components, IT
services, and IT personnel that support the entire organization. IT platform is a part of the
infrastructure, which includes wireless communication, software, hardware etc. the IT services
in addition to that, like system development, managing security and risk and data management
make IT infrastructure.
THE GLOBAL WEB-BASED PLATFORM – Globalization is the integration and
interdependence of economic, social, cultural and ecological facets of life, enabled by rapid
advances in IT.
The three stages of globalization the first era lasted from 1492 to 1800, which was backed
by horse, wind, and steam power. The second era, from 1800 to 2000 which had multinational
companies, telecommunications, and the internet. After 2000, globalization was driven by
Thomas Friedman’s “flatterners”. Those are:
1. Fall of the Berlin Wall – took place on November 9, 1989 which enabled countries to
move to free-market systems. Many countries joined the EU too.
2. Netscape now a public offering – this was a first user-friendly browser which made
navigation easy
3. Development of workflow software – this enabled computer applications to interoperate,
or communicate and work with one another without human intervention
4. Uploading – this took form or blogs, wikis and open-source software.
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5. Outsourcing – having another company perform a specific function of your company to
lower costs and concentrate on core-competencies.
6. Offshoring – when a company moves an entire operation to another country.
7. Supply chaining – when companies, their suppliers and customers collaborate and share
information.
8. Insourcing – delegates operations within a business to another company which
specializes in those operations.
9. Informing – the ability to search for information, best illustrated by search engines
10. The steroids – these amplify the other flatteners. These are new types of information
technologies, instant messaging, file sharing, and advances in computer graphics.
The flat world is made possible by the global, Web-based platform.
BUSINESS PRESSURES, ORGANIZATIONAL RESPONSES, AND IT SUPPORTsome of
the major pressures for modern organizations are:
Business pressures – the combination of social, legal, economic, physical, and political factors
that affect business activities.
Market pressures – generated by global economy and strong competition
oGlobal economy and strong competition – global economy exists due to the
emergence of web based platforms. NAFTA and currencies such as Euro have
contributed to it. Rise of Asian countries as powerhouses is another factor.
Countries which offer lower cost labor are also factors
oThe changing nature of the workforce – it is becoming more diversified and also
increasing number of people work in different positions and also from home
oPowerful customers – they are more knowledgeable now and firms try to know
more about their customers to serve them better.
Technology Pressures – two main pressures are technological innovation and
information overload
oTechnological Innovation and Obsolescence – Technology is rapidly becoming
obsolete as new one is emerging rapidly.
oInformation overload – the information online doubles approximately every year.
To be able use this effectively is a challenge as too much information may
convolute things.
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Societal/Political/Legal pressures – this includes social responsibility, government,
regulation/deregulation, spending for social programs, spending to protect against
terrorism, and ethics.
oSocial responsibility – these are effort by organizations for the social environment
and are called organization social responsibility. Digital divide refers to the
gap between those who have access to information and communications
technology and those who do not. Organizations are trying to close this divide
around the world.
oCompliance with government regulations and deregulation – government
regulates business practices regarding health, safety, environment control and
equal opportunity.
oProtection against terrorist attacks – companies now protect themselves against
attacks. Army reserves may be called upon creating personnel problems for
companies.
oEthical issues – these are the rights and wrongs as perceived by the society. IT
raises concerns such as monitoring, invasion of privacy etc.
Organizational Responses – organizations respond to these pressures by:
Strategic systems – enable organizations to increase their market share or profits.
Customer focus – they try to provide superb customer service to keep customers happy.
Numerous IT tools have been designed to do this on websites etc.
Make-to-order and mass customization – it is an attempt to perform make to order on a
large scale, it called mass customization. A large quantity of identical items are
purchased and customers can choose to customize.
E-business and E-Commerce – includes doing business online.
WHY ARE INFORMATION SYSTEMS IMPORTANT? – They are integral to life and offer career
opportunities. We use telephones, smartphones, we have our calendars electronically, and
perform tasks such as email, instant messaging and text messaging through IS.
GLOSSARY
customer relationship management (CRM) An enterprisewide effort to acquire and retain
customers, often
supported by IT.
cybercafés Public places in which Internet terminals are available, usually for a small fee.
data items An elementary description of things, events, activities, and transactions that are
recorded, classified, and stored but are not organized to convey any specific meaning.
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