lecture 1)
Business Information Systems:
- how IS helps managing information resources
- how organizations can benefit from IS’s
- what organizational impact is of recent technological innovations
- managerial focus, structural, cultural, technical, security
- outsourcing, offshoring, how cultures differ to IS use and adoption
Zoom / Teams:
+: available to meet from home without having to be at a location
+: time efficient and cost efficient
-: less interaction, due to reduced richness of conversation, technical issues, low IT skills
-: privacy issues
digital innovation = a product, process or business model that is perceived as new,
requires some significant changes on the part of the adopters and is embodied in / enabled
by IT
three characteristics of digital innovation:
1) digitalization = taking something that used to be physical or analog, and transforming
it to be digital
2) Moore’s law = rapid performance improvements of IT components, due to doubling
the number of transistors in an integrated circuit, approximately every 2 years
3) network effects = the value of innovations increase, when more people use it
→ in Zoom:
1) digitalization; from face-to-face meetings to virtual meetings
2) Moore’s law; possible by exponential growth in computing power, data processing,
smarter algorithms, networking capacity
3) network effects; if there were no users of Zoom, there is no point in using it
new technologies enable transformations in the way we live and work + how companies
organize + the structure of entire industries
- managers need to understand these transformations to be effective
- managers have the opportunity to become ‘digital innovators’
digital world = proliferation of mobile devices, tablets, iphones and
smartphones
- new way of working and socializing
digital density = the amount of connected data per unit of activity
information technology (IT) can be found anywhere
- hardware, software, networks / telecommunications
information technology (IT) = the study or use of systems (computers and
telecommunications), for storing, retrieving and sending information
information systems (IS) are used to connect people to the organization and process data
- because of rapid technological developments, drastic changes in how organizations
deal with information
,IT megatrends:
1) mobile = technology that goes where the user goes; two-way portable communication
devices, computing devices and networking technology that connects them
2) social media = apps and networking systems
3) internet of things = global connectivity; connecting devices and people to make up
the fundamental infrastructure of our society
4) cloud computing = time-sharing of costly resources and advantages of the
economies of scale; performing computations in consumer-oriented applications;
extensive network of remote servers around the world which store and manage data
5) big data = our ability to collect and analyze the vast amounts of data we are now
generating in the world
IT, people and organizations are interrelated, and thus not
separable
data = raw symbols, such as characters, numbers, sound, light pulses etc
- have no meaning in / of themselves; little value until processed
- recorded by observation or research
information = a representation of reality that can help to answer questions about who, what,
where and when
- results from formatting, organizing and processing of data to make the data useful
- relevant and meaningful to human recipients
knowledge = the ability to understand information, form opinions, make decisions or
predictions based on information
- based on skills + experience + accumulated learning + judgement
- result of activities and related information processing; needed for decision-making
and relating data and information
information systems (IS) = combinations of (1) hardware, software and
telecommunications networks, that (2) people build and use to collect, create, and distribute
useful data in (3) organizational settings
- primary function: to convert data into information
- information technology is a part of an IS
information systems are used to process organizational information →
there is an increasing need for information and increasing availability of
data
information systems are needed for technological innovation
how to deal with the information?
- reduce the need for information processing
- create buffers, reduce coordination
- increase capacity for information processing
- information systems & technological capabilities
technological capabilities = the firm’s ability to design and develop new process, product,
and upgrade knowledge and skills about the physical environment; and transforming the
knowledge into instructions and designs for efficient creation of desired performance
,developments and increasing capacity in IT:
digital innovation = digitalization, increasing capacity, network effects
- hardware: smaller, processing capacity, storage capacity, functions, networks
- hardware = physical components and other internal components connected
to it; cannot be renewed with extra capabilities, which require hardware
changes
- software: smarter, modular, interconnected
- software = utility programs, a set of instructions written in programming
languages; evolving through releases of adding new features and rewriting
existing knowledge to support features
- network: larger scope, mobile, transmission capacity, interconnected
- network = organization of IT systems interconnected to exchange data and
comprising the components of interconnected IT systems and their interface
with the supporting data or communications networks
digital innovation has increased the amount of available information, and our capacity to
store and transmit it
- challenge: to turn the data into information
- challenge: deriving value from all the untapped data
IS is positively related to organizational performance:
1) financial results
2) operational efficiency
3) competitive advantage
Valacich & Schneider:
- automate = doing things more efficiently,
accurately, consistently
- learning = doing things better, based on
available information and to informate
- supporting strategy = doing things smarter;
redefining business and industry processes
and relationships (transform)
technology is not a magic bullet
- implementing a new technology will not improve performance all by itself
- technological determinism = media technology shapes how we as individuals
in a society think, feel and act and how society operates as we move from
one technological age to another → theory that shows that technological
development is the key mover in history and societal change
- managing IS requires an integrative vision
- aligning business and IT → socio-technical approach
IS as a career: software analysts and testers, data scientists, computer system analysts,
information security analysts, computer and IS managers, software developers
lecture 2)
Case: Boeing and the 787 Dreamliner
, situation of Boeing around 2000:
- fierce competition; Airbus
- complex supply chain; 3.800 suppliers so little value from relationships
787 Dreamliner:
- closer relationships, fewer suppliers
- from supply chain (= a collection of companies and processes involved in
everything; from extracting raw materials to moving a product from suppliers of raw
materials to suppliers of intermediate components, then to the final production and to
the customer), to supply network (= the flow of materials from suppliers to
customers, various interrelated parties involved in moving raw materials, intermediate
components, and the end product within the production process)
- new business strategy, thus new IS strategy
787 game changer; light, fuel efficient, long-range plane
787 as figurehead of new strategy:
- new composition of materials
- electric systems to replace hydraulic systems
- cutting edge technologies and cutting edge knowledge
supply network = the flow of materials from suppliers to customers, various interrelated
parties involved in moving raw materials, intermediate components, and the end product
within the production process
- from build to print, to build to performance → final assembly reduced from 30 to 3
days
- 50 tier 1 suppliers / strategic partners; responsible for engineering and manufacturing
of sub-parts of the aircraft & responsible for coordinating with tier 2 and tier 3
suppliers
- designed and built with global outsourcing partners
- focus on large-scale system integration
new 21st century business strategy:
- focus on innovation
- knowledge- and resource-sharing company
- core competencies: integration of large and complex systems
- from vertical organizations to virtual networks; focus on global outsourcing
- from manufacturer to system integrator (integration of softwares and hardware
systems)
new information systems strategy (IS strategy):
- IT-enabled virtual integration; global collaboration environment and virtualizing as
much of the process as possible
- phasing out older systems / legacy systems
- decentralization of IT