Ch 1: Managing in the Digital World
Learning Objectives:
1. Describe the characteristics of the digital world, contemporary societal issues of the digital world, and how increasing digital density is shaping the digital future
2. Explain what an information system is, contrasting its data, technology, people, and organizational components
3. Describe the dual nature of information systems in the success and failure of modern organizations
4. Describe how computer ethics affect the use of information systems and discuss ethical concerns associated with information privacy and intellectual property
Playposit:
- Good decision-making depends on access to good data
- An elder couple unable to register for food stamps because they don’t know how to use a computer or the internet is an example of the digital divide
- Increasing telecommunication technology and the spread of the internet have led to there being less isolated regions around the world
- The computing term “cloud” refers to networked infrastructure whose internal details are hidden from us
- 350,000 tweets generated per minute refers to the “velocity” V of big data
“Pervasive Technology”
- Technology is omnipresent and prevalent
- 5.45 billion people use the internat
- 4.2 B are social media users
- Median social media usage per day is 2 hrs and 23 minutes for ppl ages 16 to 64
- 2 hrs 51 mins global avg spent on computer
- Americans spend on avg 4 hrs and 37 mins on their mobile phone per day
The Emergence of the Digital World
- Proliferation of mobile devices around us
- Technology changes enable new ways of working/socialization
o Boundaries between work & leisure time blur
- Many people are left behind
o Correlation btwn computer literacy and ability to compete
o Ppl in rural communities, elderly, disabled, minorities, lag behind national avg for internet success and computer literacy
o Challenge of overcoming the digital divide are greater in developing countries
Globalization & Societal issues in the digital world
- Globalization has led to any opportunities due to falling transportation and telecommunication costs
- Rapid rise of middle class in developing countries enabling companies to reach new customers
- With a decrease in communication costs, global companies now offer skilled professionals in many areas (ex. Call centers in Ireland, software dev in india)
Increased Outsourcing
- Outsourcing: Moving of business processes or tasks to another company
o Companies are outsourcing to utilize workers or reduce costs
- Primary driver is the decrease in communication costs
- Other reasons:
o Reduce or control costs
o Free up internal resources
o Gain access to world-class capabilities
o Reduce time to market
o Etc…
Opportunities of operating in the digital world
- Falling transportation costs, falling communication costs, reach global markets, access a global labor pool
Challenges of Globalization
- Operation challenges:
o Political system differences
o Regulatory environments
o Laws and standards
- Geo-economic challenges:
o Differences in infrastructure
o Demographics
o Welfare
o Workers’ expertise
- Cultural differences
Increasing Digital density enables new value-added interactions and business models
Effects of increasing digital density- connections
- The past: only between organizations
- Then: between people
- Now: connect any element of physical world to digital world, increased mobilities using apps, micro-moments (buy something, contact someone, etc)
Mobile Devices
- Many believe we’re living in a post-pc era, mobile devices often leapfrog PCs
o Implications
§ Ability to manage business in real time
§ New ways to reach customers
§ Consumerization of IT
§ BYOD and security concerns
The Internet of Things (IoT)
- Devices have embedded computers and sensors, enabling connectivity over the internet
- Enables the convergence of IT and operations technology to enable mass-produced customized products.
Cloud Computing
- Web techs enable using the internet as a platform for applications and data
- Applications that used to be installed on individual computers are increasingly kept in the cloud
Effects of increasing digital density- Big Data
- Big Data: An extremely large and complex datasets characterized as being high volume, variety, and velocity.
- By 2025 the worlds data will have grown to 175 zettabytes
- Companies are creating value not from people, but from data
- Volume, Variety, Velocity
Effects of Increasing Digital Density
- Incr amounts of data will lead to new value added interactions and business models
- The network effect refers to the notion that the value of a network increases with the number of other users
Other digital world considerations
- The API Economy
o One key driver of continuous innovations has been the rise of application programming interfaces APIs
§ Website provider can make parts of its functionality or data avail for others to use
§ API: The rules and standards that allow software components to communicate with each other
o Business value of API is twofold
§ Providing APIs can create new revenue streams
§ APIs have become commonplace and important
· EX is google maps
Information systems
- Data, technology, people, organizations
- Information systems: people + information technology : Organized to create, collect, process, store, and distribute useful data
Types of IS Systems
- Social software: social networks, connecting colleagues and friends
- Geographic information system: Site selction for new shopping mall
- Functional area Information system: Planninig system for personal training and work assignments
- Sales force automation, lead generation: Customer relationship management system
- Management Information systems: produce detailed info to help manage a firm or part of a firm
- Decision support system: Provides tools & access to databases to support quantitative decision making
Data: the Root and Purpose of Information Systems
- Alone, not very useful
- Data > Information > Knowledge
- When info/data is understood and used for decisions, it becomes knowledge
- To use information, you need knowledge
Organizations: The Context of Information Systems
- Information systems can help organizations
o Be more productive & profitable
o Gain competitive advantage
o Reach more customers
o Improve service to their customers
- Holds true for all types of organizations—professional, social, religious, educational, and governmental
Information systems gone wrong
- Various corporate database hacks that have led to theft of personal information including financial details (like credit cards)
- A variety of social media “failures”… ones a message has been released its almost impossible to erase it
- Airline computer glitches
Information systems for competitive advantage
- Continuous update and fine tuning provides high quality package tracking and enables fedex to become the leader in express transportation
Computer Ethics
- Collecting and analyzing consumer data may have negative impacts
o Social decay
o Increased consumerism
o Loss of privacy
- Used to describe moral issues and standards of conduct as they pertain to the use of IS systems
Privacy & Privacy concern
- Information privacy: concerned with what information an individual should have to reveal to others
- Privacy on the web: The company that maintains the database of customers is free to sell that data within liits
- E-mail privacy: Legally, there is no right to email privacy
- Data can be combines to form a scarily accurate profile about you
Intellectual property
- Copying digital music and images is effortless – bad legally and ethically
Dynamic Study Module:
- Procurement planning is a supply chain management system
- Financial operations & HR is an enterprise resource planning system
- In order to use information you need knowledge
- Knowledge workers: Relatively well educated professionals who create, modify, and or synthesize knowledge
- Information privacy is concerned with what information an individual should have to reveal to others In the workplace or through other transactions, such as online shopping
- Information can be described as a representation off reality and can help answer questions about who, what, where, and when
- Computer fluency is the ability to independently learn new technologies and asses their impact on your work and life
- Information technology refers to the hardware, software, and network components of an information system
Honey’s communication
- Honey tells its customers they search the web and find the best coupon codes
o Honey tells its affiliates, we can selectively choose which coupon codes you want us to reveal to your customers!
ChatGPT
- ChatGPT produces co2 equivalent of over 250 transatlantic flights monthly
- Woman had chatgpt BF, within the next 2 years its predicted that relationships between humans and AI will be normalized
