Chapter 1: The Modern Organization Functioning in a Global Environment

1)  Business Processes:

·        Business Process: is a collection of related activities that produce a product or a service of value to the organization, its business partners and / or its customers.

·        Business Process Management: is a management technique that includes methods and tools to support the design, analysis, implementation, management, and optimization of business processes.

    2)  Information Systems: Concepts and Definitions:

 

•         Data:

ü Elementary description of things, events, activities and transactions that are recorded, classified and stored but are not organized to convey any specific meaning.

•         Information:

ü Data organized so that they have meaning and value to the recipient.

•         Knowledge:

ü Data and/or information organized and processed to convey understanding, experience, accumulated learning and expertise as they apply to a current problem or activity.

·        Information Technology Architecture: A high-level map or plan of the information assets in an organization, which guides current operations and is a blueprint for future directions.

·        Information Technology Infrastructure: The physical facilities, IT components, IT services and IT management that support an entire organization.

ü IT components consist of hardware, software, telecommunications and networks, and wireless communications.

ü IT services consist of data management, managing security and risk, and systems development.

ü IT personnel use IT components to produce IT services.

ü IT components are basically synonymous with the IT platform.

ü IT infrastructure consists of IT components, IT personnel, and IT services.

3) The Global Web- Based Platform:

3 Stages of Globalization

•         Globalization 1.0

o   * 1492 to 1800

o   *  World went from large to medium-size

o   *  All about countries and muscles

•         Globalization 2.0

o   * 1800 to 2000

o   * World has shrunk from medium to small-size

o   * Key agent of change: multinational companies

•         Globalization 3.0

o   * 2000 – now

o   * World is now tiny.

o   * Key agent of change: software, in conjunction with the global fiber-optic network

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Business Pressure, Organizational Response and IT Support:

  

·        Business Pressure: The business environment is the combination of social, legal, economic, physical, and political factors that affect business activities.  Significant changes in any of these factors are likely to create business pressure on the organization. The three types of business pressures faced are: market, technology, and societal pressures. 

Market Pressure

•         Global Economy and strong competition.

•         Changing Nature of  Workforce:

ü IT enabling people to work at home.

•         Powerful Customers:

ü customers more knowledgeable about availability of products and services

Technology

·        Technological innovation and:obsolescence :

ü Technology  improving

·        Information overload:

ü Internet is bringing flood of information

Societal pressure

•         Social responsibility

•         Government regulations & deregulation

•         Protection against terrorist attack

•         Ethical issues   

: Why are Information Systems Important to You

·        Information Systems and Information Technology are Integral to Your lives:

o   Perform many activities online:

§  Conduct Banking.

§  Pay your Bills.

§  Search for and apply for jobs.

·        Information Systems offer career opportunities:

o   Provide many jobs, existing in emerging areas such as Internet and e- commerce.

·        Information Technology is Used by all Departments:

§  For example: Marketing, Finance...