Gallaugher ch 1 ppt

Information Systems: A
Manager’s Guide to Harnessing
Technology, version 2.0
John Gallaugher
© 2013, published by Flat World Knowledge 1-1

© 2013, published by Flat World Knowledge
Published by:
Flat World Knowledge, Inc.
© 2013 by Flat World Knowledge, Inc. All rights reserved. Your use of this work is subject to
the License Agreement available here http://www.flatworldknowledge.com/legal. No part of
this work may be used, modified, or reproduced in any form or by any means except as
expressly permitted under the License Agreement.
1-2

Chapter 1
Setting the Stage:
Technology and the Modern
Enterprise
1-3

Learning Objective
• Appreciate how in recent years, technology has
helped bring about radical changes across industries
and throughout societies
1-4

Technology: Changing Business
Landscapes
• Billions of people have access to computing and
telecommunications
• Google, Twitter, and Facebook have changed the
way firms advertise and people communicate
– Open source software has lowered computing costs
• Cloud computing and software as a service
– Turned high-powered computing into a utility
available to even the smallest businesses and
nonprofits
1-5

Technology: Changing Business
Landscapes
• New technologies have:
– Fueled globalization
– Redefined concepts of software and computing
– Crushed costs
– Fueled data-driven decision making
– Raised privacy and security concerns
1-6

Learning Objective
• Identify firms across hardware, software, and
Internet businesses that were founded by people in
their twenties
1-7

It’s a Young People’s
Revolution
• Many of the world’s most successful technology
firms were created by young people
– Bill Gates - Undergraduate when he left college to
found Microsoft
– Michael Dell - Sophomore when he began building
computers at the University of Texas
1-8

Learning Objectives
• Understand the degree to which technology has
permeated every management discipline
• Learn that tech careers are varied, richly rewarding,
and poised for continued growth
1-9

Technology: Growing Importance
• All modern managerial disciplines have been
impacted by technology
• Tech knowledge has become a key differentiator for
a job seeker
• With computing getting cheaper and faster, it is
being used everywhere
1-10

Finance
• Tech industry continually develops new businesses
– Suited to IPO markets
• Tech firms are actively involved in mergers and
acquisitions (M&A)
• Technology acts as an opportunity catalyst or a
disruptive wealth destroyer
• Finance careers
– Lending to tech firms
– Evaluating the role of technology in firms in an
investment portfolio
1-11

Table 1.1 –
2012 Tech Deals by Sector
1-12
Source: “US Technology M&A Insights 2013,” PwC, March 2013.

Table 1.2 –
Acquisition Deals by Firm
1-13
Source: The Deal, May 7, 2012

Accounting
• Reliability of any audit is tied to the reliability of the
underlying technology
• Increased regulation has strengthened the link
between accounting and technology
– Sarbanes-Oxley Act: Raised the executive and board
responsibilities and ties criminal penalties to certain
accounting and financial violations
• Major accounting firms have spawned tech-focused
consulting practices
1-14

Marketing
• Firms use online channels to track and monitor
consumer activities
• Firms are shifting spending from traditional media to
the Web because of its ability to:
– Track customers
– Analyze campaign results
– Modify tactics
• Firms are using apps to develop location-based
messages and services and for cashless payment
1-15

Marketing
• Firms are using social media to:
– Generate sales
– Improve their reputations
– Better serve customers
– Innovate
1-16

Marketing
• Central components of the new marketing toolkit
– Search engine marketing (SEM)
– Search engine optimization (SEO)
– Customer relationship management (CRM)
– Personalization systems
– Managing the balance between gathering data and
respecting consumer privacy
1-17

Operations
• Tech-centric operations
– Quality programs
– Process redesign
– Supply chain management
– Factory automation
– Service operations
1-18

Human Resources
• Knowledge management systems are transforming
into social media technologies
– Helps in organizing and leveraging teams of experts
• Technology is used for employee training, screening,
and evaluation
• Recruiting has moved online
– Grounded in information systems that search
databases for specific skill sets
– Job seekers write resumes with key words as the first
cut can be made by a database search program
1-19

Human Resources
• Professional social networks have put added
pressure on employee satisfaction and retention
• Some students with their thoughtful blog posts,
compelling LinkedIn presence, and Twitter activities
set themselves apart from their counterparts
1-20

Law
• Activity has increased in the areas of intellectual
property, patents, piracy, and privacy
• Firms need legal teams with the skills to:
– Determine whether a firm can legally do what it plans
– Help them protect proprietary methods and content
– Help enforce claims in the home country and abroad
1-21

Information Systems Careers
• Programmers
• Experts in user-interface design, process design, and
strategy
• Consulting and field engineering
• Chief information officer
• Chief technology officer
• C-level specialties in emerging areas
– Chief information security officer (CISO)
– Chief privacy officer (CPO)
1-22

Future of Students
• Intersection of business and technology must be
studied to develop critical-thinking skills
– To evaluate new, emerging technologies
• Those not trained to evaluate and make decisions
risk irrelevance, marginalization, and failure
1-23

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