Information Technology: The Challenge and PotentialA Quick Review - Week 1Work-Centered Analysis FrameworkThe WCA FrameworkAmazon.comSome Common ThemesQuestions?Information Technology: The Challenge and PotentialKey PointPhases in Building and Maintaining SystemsSlide 11IT Based Innovations in Every Business FunctionIT-Based InnovationComputer-Aided DesignCAD in unexpected placesElectronic Data InterchangeCustomers link to suppliers using EDIManufacturingMass Customization: Building a customized bicycleSales and MarketingThe Four P’s of Marketing at Amazon.comDelivery and Logistics SystemsCustomer ServiceFinance SystemsQuestion?Data Processing ProgressDramatic Progress in Processing DataSix Data Processing Functions Performed by ITSix Data Processing Functions Performed by ITMiniaturization: Comparison of a vacuum tube and an integrated circuitProgress in Memory Chip Capacity Since 1973Using a portable computer to give parking ticketsSlide 33Convergence: GPSA leading edge flat panel monitor and a computer terminal from the 1980sThe positive and negative impacts of technical changeObstacles When Applying ITCIS 465 - Fall ‘99 - IT Challenges Page 1Information Technology: The Challenge and PotentialCIS 465 - Fall ‘99 - IT Challenges Page 2A Quick Review - Week 1What is an Information System?•Evolutionary concept•Early emphasis on support of operations, management, analysis, and decision-making in organizations.•Today technology provides support for not only for decision-making, but support for communication and information access. •Our emphasis will be on the support of work systems that use information technology to capture, transmit, store, retrieve, manipulate, and display information.Gorry and Scott-Morton’s Framework•1971 Framework talked of looking at information systems in a decision-making framework. Although limited to just decision-making, it provides a perspective on the wide range of opportunity for information systems support.Work-Centered Analysis FrameworkCIS 465 - Fall ‘99 - IT Challenges Page 4The WCA FrameworkA useful way of thinking about information systems and their relationship to customers and participants from the perspective of a business professional.A work system is a system that produces products for internal and external customers through a business process performed by human participants with the help of information technology.An information system is a particular type of work system that uses information technology to capture transmit store, retrieve, manipulate, or display information, thereby supporting one or more other work systems.CIS 465 - Fall ‘99 - IT Challenges Page 5Amazon.comThe point of this case is not about technology essentially, rather it is about how information systems and information technology can transform business operations.How does Amazon.com provide value for its customers?What has “transformed” in this business?How has competitive advantage changed to competitive necessity?CIS 465 - Fall ‘99 - IT Challenges Page 6Some Common ThemesThe nature of business is changing.•New combinations of product and services.•Limitations of geography are disappearing•technology is changing rapidly•organizations are flatter and less hierarchical.Business professional must participate in all the major phases of building and maintaining IT-enabled systems.Advances in IT will drive business innovation.The success of IT-enabled systems is not guaranteed by using the latest technology.CIS 465 - Fall ‘99 - IT Challenges Page 7Questions?Identify some new products or services that have changed due to information technology?Identify some organizations that have become less hierarchical.CIS 465 - Fall ‘99 - IT Challenges Page 8Information Technology:The Challenge and PotentialCIS 465 - Fall ‘99 - IT Challenges Page 9Key PointBusiness Professionals participate in all the major phases of building and maintaining IT-enabled systems, and therefore need knowledge and skills necessary for that participation.Next Question then….•How are Information Systems Developed?Phases in Building and Maintaining SystemsCIS 465 - Fall ‘99 - IT Challenges Page 11Phases in Building and Maintaining SystemsInitiation•Define the need to change a work system.Development•Acquire and configure necessary hardware, software, and other resources for IT-related and non-IT related functions.Implementation•Make the system operational in the organization.Operation and Maintenance•On-going operation and maintenance of the work system and the information system.CIS 465 - Fall ‘99 - IT Challenges Page 12IT Based Innovations in Every Business FunctionProduct DesignProcurement SystemsManufacturing SystemsSales and MarketingDelivery SystemsCustomer Service SystemsFinance SystemsCIS 465 - Fall ‘99 - IT Challenges Page 13IT-Based InnovationTelecommutingValue ChainProduct Design•computer aided design (CAD)CIS 465 - Fall ‘99 - IT Challenges Page 14Computer-Aided DesignEnable designers to visualize how a product will look.The need to produce physical mock-ups has been significantly reduced.Originally applied in engineering and architecture, it is now being applied in other areas such as surgery, clothes design, and hairdressing.CIS 465 - Fall ‘99 - IT Challenges Page 15CAD inunexpected placesCIS 465 - Fall ‘99 - IT Challenges Page 16Electronic Data InterchangeChanging the entire model of supply chain management in businesses.The cost of processing simple transactions can be reduced by more than an order of magnitude (e.g. purchase orders from $55 ea. To $2.50 ea.).SCM and EDI are essential ingredients to the transformation of relationships between suppliers and customers.The most famous first was at Baxter Healthcare where hospital supplies were ordered directly.CIS 465 - Fall ‘99 - IT Challenges Page 17Customers link to suppliers using EDICIS 465 - Fall ‘99 - IT Challenges Page 18ManufacturingComputer-integrated manufacturing (CIM) integrates the use of technology across the manufacturing process, not just the design phases.The information content of a product is the value that is added through use of information systems rather than not using them.Mass production techniques allows for mass customization.CIS 465 - Fall ‘99 - IT Challenges Page 19Mass Customization:Building a customized bicycleCIS 465 -