Fluent Essays

Discussion: (250-300 words)  This week we focus on globalization concepts.  Please explain the concept of globalization and the role information technology has in the global market.  Assignment (2 pages in total  (one page for each topic) ):  Information Systems for Business and Beyond Questions Chapter 11 – study questions 1-10, Exercise 1 Chapter 12 – study questions 1-11, Exercise 1 Information Technology and Organizational Learning Assignment: Chapter 9 – Review the section on Establishing a Security Culture.  Review the methods to reduce the chances of a cyber threat noted in the textbook.  Research other peer-reviewed source and note additional methods to reduce cyber-attacks within an organization. Chapter 10 – Review the section on the IT leader in the digital transformation era.  Note how IT professionals and especially leaders must transform their thinking to adapt to the constantly changing organizational climate.  What are some methods or resources leaders can utilize to enhance their change attitude? Practical connection Assignment ( three pages in length ):   This week select an organization that has a Global platform (they operate in more than one country), that has demonstrated operational excellence.  In this paper, perform the following activities: Name the organization and briefly describe what good or service they sell and where they operate. Note how they are a differentiator in the market. Note the resources used to ensure success in their industry (remember resources are comprised of more than just people). Explain what actions the company took to achieve operational excellence. Information Technology and Organizational Learning Managing Behavioral Change in the Digital Age Third Edition http://taylorandfrancis.com Information Technology and Organizational Learning Managing Behavioral Change in the Digital Age Third Edition Arthur M. Langer CRC Press Taylor & Francis Group 6000 Broken Sound Parkway NW, Suite 300 Boca Raton, FL 33487-2742 © 2018 by Taylor & Francis Group, LLC CRC Press is an imprint of Taylor & Francis Group, an Informa business No claim to original U.S. Government works Printed on acid-free paper International Standard Book Number-13: 978-1-4987-7575-5 (Paperback) International Standard Book Number-13: 978-1-138-23858-9 (Hardback) This book contains information obtained from authentic and highly regarded sources. Reasonable efforts have been made to publish reliable data and information, but the author and publisher cannot assume responsibility for the validity of all materials or the consequences of their use. 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Visit the Taylor & Francis Web site at http://w w w.taylorandfrancis.com and the CRC Press Web site at http://w w w.crcpress.com v Contents Fo r e w o r d xi Ac k n o w l e d g m e n t s xiii Au t h o r xv I n t r o d u c t I o n xvii c h A p t e r 1 th e “ r Av e l l” c o r p o r At I o n 1 Introduction 1 A New Approach 3 The Blueprint for Integration 5 Enlisting Support 6 Assessing Progress 7 Resistance in the Ranks 8 Line Management to the Rescue 8 IT Begins to Reflect 9 Defining an Identity for Information Technology 10 Implementing the Integration: A Move toward Trust and Reflection 12 Key Lessons 14 Defining Reflection and Learning for an Organization 14 Working toward a Clear Goal 15 Commitment to Quality 15 Teaching Staff “Not to Know” 16 Transformation of Culture 16 Alignment with Administrative Departments 17 Conclusion 19 v i Contents c h A p t e r 2 th e It d I l e m m A 21 Introduction 21 Recent Background 23 IT in the Organizational Context 24 IT and Organizational Structure 24 The Role of IT in Business Strategy 25 Ways of Evaluating IT 27 Executive Knowledge and Management of IT 28 IT: A View from the Top 29 Section 1: Chief Executive Perception of the Role of IT 32 Section 2: Management and Strategic Issues 34 Section 3: Measuring IT Performance and Activities 35 General Results 36 Defining the IT Dilemma 36 Recent Developments in Operational Excellence 38 c h A p t e r 3 te c h n o l o gy A s A vA r I A b l e A n d re s p o n s I v e o r g A n I z At I o n A l d y n A m I s m 41 Introduction 41 Technological Dynamism 41 Responsive Organizational Dynamism 42 Strategic Integration 43 Summary 48 Cultural Assimilation 48 IT Organization Communications with “ Others” 49 Movement of Traditional IT Staff 49 Summary 51 Technology Business Cycle 52 Feasibility 53 Measurement 53 Planning 54 Implementation 55 Evolution 57 Drivers and Supporters 58 Santander versus Citibank 60 Information Technology Roles and Responsibilities 60 Replacement or Outsource 61 c h A p t e r 4 o r g A n I z At I o n A l l e A r n I n g th e o r I e s A n d te c h n o l o gy 63 Introduction 63 Learning Organizations 72 Communities of Practice 75 Learning Preferences and Experiential Learning 83 Social Discourse and the Use of Language 89 Identity 91 Skills 92 v iiContents Emotion 92 Linear Development in Learning Approaches 96 c h A p t e r 5 m A n A g I n g o r g A n I z At I o n A l l e A r n I n g A n d te c h n o l o gy 109 The Role of Line Management 109 Line Managers 111 First-Line Managers 111 Supervisor 111 Management Vectors 112 Knowledge Management 116 Ch ange Management 120 Change Management for IT Organizations 123 Social Networks and Information Technology 134 c h A p t e r 6 o r g A n I z At I o n A l tr A n s F o r m At I o n A n d t h e bA l A n c e d s c o r e c A r d 139 Introduction 139 Methods of Ongoing Evaluation 146 Balanced Scorecards and Discourse 156 Knowledge Creation, Culture, and Strategy 158 c h A p t e r 7 vI r t uA l te A m s A n d o u t s o u r c I n g 163 Introduction 163 Status of Virtual Teams 165 Management Considerations 166 Dealing with Multiple Locations 166 Externalization 169 Internalization 171 Combination 171 Socialization 172 Externalization Dynamism 172 Internalization Dynamism 173 Combination Dynamism 173 Socialization Dynamism 173 Dealing with Multiple Locations and Outsourcing 177 Revisiting Social Discourse 178 Identity 179 Skills 180 Emotion 181 c h A p t e r 8 sy n e r g I s t I c u n I o n o F It A n d o r g A n I z At I o n A l l e A r n I n g 187 Introduction 187 Siemens AG 187 Aftermath 202 ICAP 203 v iii Contents Five Years Later 224 HTC 225 IT History at HTC 226 Interactions of the CEO 227 The Process 228 Transformation from the Transition 229 Five Years Later 231 Summary 233 c h A p t e r 9 Fo r m I n g A c y b e r s e c u r I t y c u lt u r e 239 Introduction 239 History 239 Talking to the Board 241 Establishing a Security Culture 241 Understanding What It Means to be Compromised 242 Cyber Security Dynamism and Responsive Organizational Dynamism 242 Cyber Strategic Integration 243 Cyber Cultural Assimilation 245 Summary 246 Organizational Learning and Application Development 246 Cyber Security Risk 247 Risk Responsibility 248 Driver /Supporter Implications 250 c h A p t e r 10 d I g I tA l tr A n s F o r m At I o n A n d c h A n g e s I n c o n s u m e r b e h Av I o r 251 Introduction 251 Requirements without Users and without Input 254 Concepts of the S-Curve and Digital Transformation Analysis and Design 258 Organizational Learning and the S-Curve 260 Communities of Practice 261 The IT Leader in the Digital Transformation Era 262 How Technology Disrupts Firms and Industries 264 Dynamism and Digital Disruption 264 Critical Components of “ Digital” Organization 265 Assimilating Digital Technology Operationally and Culturally 267 Conclusion 268 c h A p t e r 11 I n t e g r At I n g g e n e r At I o n y e m p l oy e e s t o Ac c e l e r At e c o m p e t I t I v e A dvA n tA g e 269 Introduction 269 The Employment Challenge in the Digital Era 270 Gen Y Population Attributes 272 Advantages of Employing Millennials to Support Digital Transformation 272 Integration of Gen Y with Baby Boomers and Gen X 273 i xContents Designing the Digital Enterprise 274 Assimilating Gen Y Talent from Underserved and Socially Excluded Populations 276 Langer Workforce Maturity Arc 277 Theoretical Constructs of the LWMA 278 The LWMA and Action Research 281 Implications for New Pathways for Digital Talent 282 Demographic Shifts in Talent Resources 282 Economic Sustainability 283 Integration and Trust 283 Global Implications for Sources of Talent 284 Conclusion 284 c h A p t e r 12 to wA r d b e s t p r A c t I c e s 287 Introduction 287 Chief IT Executive 288 Definitions of Maturity Stages and Dimension Variables in the Chief IT Executive Best Practices Arc 297 Maturity Stages 297 Performance Dimensions 298 Chief Executive Officer 299 CIO Direct Reporting to the CEO 305 Outsourcing 306 Centralization versus Decentralization of IT 306 CIO Needs Advanced Degrees 307 Need for Standards 307 Risk Management 307 The CEO Best Practices Technology Arc 313 Definitions of Maturity Stages and Dimension Variables in the CEO Technology Best Practices Arc 314 Maturity Stages 314 Performance Dimensions 315 Middle Management 316 The Middle Management Best Practices Technology Arc 323 Definitions of Maturity Stages and Dimension Variables in the Middle Manager Best Practices Arc 325 Maturity Stages 325 Performance Dimensions 326 Summary 327 Ethics and Maturity 333 c h A p t e r 13 c o n c l u s I o n s 339 Introduction 339 g l o s s A ry 357 re F e r e n c e s 363 I n d e x 373 http://taylorandfrancis.com x i Foreword Digital technologies are transforming the global economy. Increasingly, firms and other organizations are assessing their opportunities, develop- ing and delivering products and services, and interacting with custom- ers and other stakeholders digitally. Established companies recognize that digital technologies can help them operate their businesses with greater speed and lower costs and, in many cases, offer their custom- ers opportunities to co-design and co-produce products and services. Many start-up companies use digital technologies to develop new prod- ucts and business models that disrupt the present way of doing busi- ness, taking customers away from firms that cannot change and adapt. In recent years, digital technology and new business models have dis- rupted one industry after another, and these developments are rapidly transforming how people communicate, learn, and work. Against this backdrop, the third edition of Arthur Langer’ s Information Technology and Organizational Learning is most welcome. For decades, Langer has been studying how firms adapt to new or changing conditions by increasing their ability to incorporate and use advanced information technologies. Most organizations do not adopt new technology easily or readily. Organizational inertia and embed- ded legacy systems are powerful forces working against the adoption of new technology, even when the advantages of improved technology are recognized. Investing in new technology is costly, and it requires x ii Foreword aligning technology with business strategies and transforming cor- porate cultures so that organization members use the technology to become more productive. Information Technology and Organizational Learning addresses these important issues— and much more. There are four features of the new edition that I would like to draw attention to that, I believe, make this a valuable book. First, Langer adopts a behavioral perspective rather than a technical perspective. Instead of simply offering norma- tive advice about technology adoption, he shows how sound learn- ing theory and principles can be used to incorporate technology into the organization. His discussion ranges across the dynamic learning organization, knowledge management, change management, com- munities of practice, and virtual teams. Second, he shows how an organization can move beyond technology alignment to true technol- ogy integration. Part of this process involves redefining the traditional support role of the IT department to a leadership role in which IT helps to drive business strategy through a technology-based learn- ing organization. Third, the book contains case studies that make the material come alive. The book begins with a comprehensive real-life case that sets the stage for the issues to be resolved, and smaller case illustrations are sprinkled throughout the chapters, to make concepts and techniques easily understandable. Lastly, Langer has a wealth of experience that he brings to his book. He spent more than 25 years as an IT consultant and is the founder of the Center for Technology Management at Columbia University, where he directs certificate and executive programs on various aspects of technology innovation and management. He has organized a vast professional network of tech- nology executives whose companies serve as learning laboratories for his students and research. When you read the book, the knowledge and insight gained from these experiences is readily apparent. If you are an IT professional, Information Technology and Organi­ zational Learning should be required reading. However, anyone who is part of a firm or agency that wants to capitalize on the opportunities provided by digital technology will benefit from reading the book. Charles C. Snow Professor Emeritus, Penn State University Co­Editor, Journal of Organization Design x iii Acknowledgments Many colleagues and clients have provided significant support during the development of the third edition of Information Technology and Organizational Learning. I owe much to my colleagues at Teachers College, namely, Professor Victoria Marsick and Lyle Yorks, who guided me on many of the the- ories on organizational learning, and Professor Lee Knefelkamp, for her ongoing mentorship on adult learning and developmental theo- ries. Professor David Thomas from the Harvard Business School also provided valuable direction on the complex issues surrounding diver- sity, and its importance in workforce development. I appreciate the corporate executives who agreed to participate in the studies that allowed me to apply learning theories to actual organizational practices. Stephen McDermott from ICAP provided invaluable input on how chief executive officers (CEOs) can success- fully learn to manage emerging technologies. Dana Deasy, now global chief information officer (CIO) of JP Morgan Chase, contributed enormous information on how corporate CIOs can integrate tech- nology into business strategy. Lynn O’ Connor Vos, CEO of Grey Healthcare, also showed me how technology can produce direct mon- etary returns, especially when the CEO is actively involved. And, of course, thank you to my wonderful students at Columbia University. They continue to be at the core of my inspiration and love for writing, teaching, and scholarly research. http://taylorandfrancis.com x v Author Arthur M. Langer, EdD, is professor of professional practice of management and the director of the Center for Technology Management at Columbia University. He is the academic direc- tor of the Executive Masters of Science program in Technology Management, vice chair of faculty and executive advisor to the dean at the School of Professional Studies and is on the faculty of the Department of Organization and Leadership at the Graduate School of Education (Teachers College). He has also served as a member of the Columbia University Faculty Senate. Dr. Langer is the author of Guide to Software Development: Designing & Managing the Life Cycle. 2nd Edition (2016), Strategic IT: Best Practices for Managers and Executives (2013 with Lyle Yorks), Information Technology and Organizational Learning (2011), Analysis and Design of Information Systems (2007), Applied Ecommerce (2002), and The Art of Analysis (1997), and has numerous published articles and papers, relating to digital transformation, service learning for underserved popula- tions, IT organizational integration, mentoring, and staff develop- ment. Dr. Langer consults with corporations and universities on information technology, cyber security, staff development, man- agement transformation, and curriculum development around the Globe. Dr. Langer is also the chairman and founder of Workforce Opportunity Services (www.wforce.org), a non-profit social venture x v i Author that provides scholarships and careers to underserved populations around the world. Dr. Langer earned a BA in computer science, an MBA in accounting/finance, and a Doctorate of Education from Columbia University. x v ii Introduction Background Information technology (IT) has become a more significant part of workplace operations, and as a result, information systems person- nel are key to the success of corporate enterprises, especially with the recent effects of the digital revolution on every aspect of business and social life (Bradley & Nolan, 1998; Langer, 1997, 2011; Lipman- Blumen, 1996). This digital revolution is defined as a form of “ dis- ruption.” Indeed, the big question facing many enterprises today is, How can executives anticipate the unexpected threats brought on by technological advances that could devastate their business? This book focuses on the vital role that information and digital technology orga- nizations need to play in the course of organizational development and learning, and on the growing need to integrate technology fully into the processes of workplace organizational learning. Technology personnel have long been criticized for their inability to function as part of the business, and they are often seen as a group outside the corporate norm (Schein, 1992). This is a problem of cultural assimila- tion, and it represents one of the two major fronts that organizations now face in their efforts to gain a grip on the new, growing power of technology, and to be competitive in a global world. The other major x v iii IntroduCtIon front concerns the strategic integration of new digital technologies into business line management. Because technology continues to change at such a rapid pace, the ability of organizations to operate within a new paradigm of dynamic change emphasizes the need to employ action learning as a way to build competitive learning organizations in the twenty-first century. Information Technology and Organizational Learning integrates some of the fundamental issues bearing on IT today with concepts from organizational learning theory, providing comprehensive guidance, based on real-life business experiences and concrete research. This book also focuses on another aspect of what IT can mean to an organization. IT represents a broadening dimension of business life that affects everything we do inside an organization. This new reality is shaped by the increasing and irreversible dissemination of technology. To maximize the usefulness of its encroaching presence in everyday business affairs, organizations will require an optimal understanding of how to integrate technology into everything they do. To this end, this book seeks to break new ground on how to approach and concep- tualize this salient issue— that is, that the optimization of information and digital technologies is best pursued with a synchronous imple- mentation of organizational learning concepts. Furthermore, these concepts cannot be implemented without utilizing theories of strategic learning. Therefore, this book takes the position that technology liter- acy requires individual and group strategic learning if it is to transform a business into a technology-based learning organization. Technology­ based organizations are defined as those that have implemented a means of successfully integrating technology into their process of organiza- tional learning. Such organizations recognize and experience the real- ity of technology as part of their everyday business function. It is what many organizations are calling “ being digital.” This book will also examine some of the many existing organi- zational learning theories, and the historical problems that have occurred with companies that have used them, or that have failed to use them. Thus, the introduction of technology into organizations actually provides an opportunity to reassess and reapply many of the past concepts, theories, and practices that have been used to support the importance of organizational learning. It is important, however, not to confuse this message with a reason for promoting organizational x i xIntroduCtIon learning, but rather, to understand the seamless nature of the relation- ship between IT and organizational learning. Each needs the other to succeed. Indeed, technology has only served to expose problems that have existed in organizations for decades, e.g., the inability to drive down responsibilities to the operational levels of the organization, and to be more agile with their consumers. This book is designed to help businesses and individual manag- ers understand and cope with the many issues involved in developing organizational learning programs, and in integrating an important component: their IT and digital organizations. It aims to provide a combination of research case studies, together with existing theories on organizational learning in the workplace. The goal is also to pro- vide researchers and corporate practitioners with a book that allows them to incorporate a growing IT infrastructure with their exist- ing workforce culture. Professional organizations need to integrate IT into their organizational processes to compete effectively in the technology-driven business climate of today. This book responds to the complex and various dilemmas faced by many human resource managers and corporate executives regarding how to actually deal with many marginalized technology personnel who somehow always operate outside the normal flow of the core business. While the history of IT, as a marginalized organization, is rela- tively short, in comparison to that of other professions, the problems of IT have been consistent since its insertion into business organiza- tions in the early 1960s. Indeed, while technology has changed, the position and valuation of IT have continued to challenge how execu- tives manage it, account for it, and, most important, ultimately value its contributions to the organization. Technology personnel continue to be criticized for their inability to function as part of the business, and they are often seen as outside the business norm. IT employees are frequently stereotyped as “ techies,” and are segregated in such a way that they become isolated from the organization. This book pro- vides a method for integrating IT, and redefining its role in organiza- tions, especially as a partner in formulating and implementing key business strategies that are crucial for the survival of many companies in the new digital age. Rather than provide a long and extensive list of common issues, I have decided it best to uncover the challenges of IT integration and performance through the case study approach. x x IntroduCtIon IT continues to be one of the most important yet least understood departments in an organization. It has also become one of the most significant components for competing in the global markets of today. IT is now an integral part of the way companies become successful, and is now being referred to as the digital arm of the business. This is true across all industries. The role of IT has grown enormously in companies throughout the world, and it has a mission to provide stra- tegic solutions that can make companies more competitive. Indeed, the success of IT, and its ability to operate as part of the learning organization, can mean the difference between the success and failure of entire companies. However, IT must be careful that it is not seen as just a factory of support personnel, and does not lose its justification as driving competitive advantage. We see in many organizations that other digital-based departments are being created, due to frustration with the traditional IT culture, or because they simply do not see IT as meeting the current needs for operating in a digital economy. This book provides answers to other important questions that have challenged many organizations for decades. First, how can manag- ers master emerging digital technologies, sustain a relationship with organizational learning, and link it to strategy and performance? Second, what is the process by which to determine the value of using technology, and how does it relate to traditional ways of calculating return on investment, and establishing risk models? Third, what are the cyber security implications of technology-based products and services? Fourth, what are the roles and responsibilities of the IT executive, and the department in general? To answer these questions, managers need to focus on the following objectives: • Address the operational weaknesses in organizations, in terms of how to deal with new technologies, and how to bet- ter realize business benefits. • Provide a mechanism that both enables organizations to deal with accelerated change caused by technological innovations, and integrates them into a new cycle of processing, and han- dling of change. • Provide a strategic learning framework, by which every new technology variable adds to organizational knowledge and can develop a risk and security culture. x x iIntroduCtIon • Establish an integrated approach that ties technology account- ability to other measurable outcomes, using organizational learning techniques and theories. To realize these objectives, organizations must be able to • create dynamic internal processes that can deal, on a daily basis, with understanding the potential fit of new technologies and their overall value within the structure of the business; • provide the discourse to bridge the gaps between IT- and non- IT-related investments, and uses, into one integrated system; • monitor investments and determine modifications to the life cycle; • implement various organizational learning practices, includ- ing learning organization, knowledge management, change management, and communities of practice, all of which help foster strategic thinking, and learning, and can be linked to performance (Gephardt & Marsick, 2003). The strengths of this book are that it integrates theory and practice and provides answers to the four common questions mentioned. Many of the answers provided in these pages are founded on theory and research and are supported by practical experience. Thus, evidence of the performance of the theories is presented via case studies, which are designed to assist the readers in determining how such theories and proven practices can be applied to their specific organization. A common theme in this book involves three important terms: dynamic , unpredictable , and acceleration . Dynamic is a term that rep- resents spontaneous and vibrant things— a motive force. Technology behaves with such a force and requires organizations to deal with its capabilities. Glasmeier (1997) postulates that technology evolution, innovation, and change are dynamic processes. The force then is tech- nology, and it carries many motives, as we shall see throughout this book. Unpredictable suggests that we cannot plan what will happen or will be needed. Many organizational individuals, including execu- tives, have attempted to predict when, how, or why technology will affect their organization. Throughout our recent history, especially during the “ digital disruption” era, we have found that it is difficult, if not impossible, to predict how technology will ultimately benefit or x x ii IntroduCtIon hurt organizational growth and competitive advantage. I believe that technology is volatile and erratic at times. Indeed, harnessing tech- nology is not at all an exact science; certainly not in the ways in which it can and should be used in today’ s modern organization. Finally, I use the term acceleration to convey the way technology is speeding up our lives. Not only have emerging technologies created this unpre- dictable environment of change, but they also continue to change it rapidly— even from the demise of the dot-com era decades ago. Thus, what becomes important is the need to respond quickly to technology. The inability to be responsive to change brought about by technologi- cal innovations can result in significant competitive disadvantages for organizations. This new edition shows why this is a fact especially when examining the shrinking S-Curve. So, we look at these three words— dynamic, unpredictable, and acceleration— as a way to define how technology affects organizations; that is, technology is an accelerating motive force that occurs irregularly. These words name the challenges that organizations need to address if they are to manage technological innovations and integrate them with business strategy and competi- tive advantage. It only makes sense that the challenge of integrating technology into business requires us first to understand its potential impact, determine how it occurs, and see what is likely to follow. There are no quick remedies to dealing with emerging technologies, just common practices and sustained processes that must be adopted for organizations to survive in the future. I had four goals in mind in writing this book. First, I am inter- ested in writing about the challenges of using digital technologies strategically. What particularly concerns me is the lack of literature that truly addresses this issue. What is also troublesome is the lack of reliable techniques … Biola University Biola University Digital Commons @ Biola Digital Commons @ Biola Open Textbooks 2019 Information Systems for Business and Beyond Information Systems for Business and Beyond David T. Bourgeois Biola University James L. Smith Shouhong Wang Joseph Mortati Follow this and additional works at: https://digitalcommons.biola.edu/open-textbooks Part of the Databases and Information Systems Commons, Information Security Commons, Management Information Systems Commons, Programming Languages and Compilers Commons, and the Systems Architecture Commons Recommended Citation Recommended Citation Bourgeois, David T.; Smith, James L.; Wang, Shouhong; and Mortati, Joseph, "Information Systems for Business and Beyond" (2019). 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DAVID BOURGEOIS JOSEPH MORTATI, SHOUHONG WANG, AND JAMES SMITH Information Systems for Business and Beyond (2019) pg. 2 Information Systems for Business and Beyond (2019) by David Bourgeois is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License, except where otherwise noted. This book was initially developed in 2014 by Dr. David Bourgeois as part of the Open Textbook Challenge funded by the Saylor Foundation. This 2019 edition is an update to that textbook. This book was produced with Pressbooks (https://pressbooks.com) and rendered with Prince. Information Systems for Business and Beyond (2019) pg. 3 https://creativecommons.org/licenses/by-nc/4.0/ https://www.saylor.org/2011/10/open-textbook-challenge-making-textbooks-available/ https://saylor.org/ http:https://pressbooks.com Information Systems for Business and Beyond Updated edition: August 1, 2019 DAVID T. BOURGEOIS, PH.D. JAMES L. SMITH, PH.D. SHOUHONG WANG, PH.D. JOSEPH MORTATI, MBA Information Systems for Business and Beyond (2019) pg. 4 Copyright Information Systems for Business and Beyond (2019) by David Bourgeois is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License, except where otherwise noted. https://opentextbook.site/informationsystems2019 https://creativecommons.org/licenses/by-nc/4.0/ Book Contributors Information Systems for Business and Beyond was originally developed in 2014 by David T. Bourgeois Ph.D. Updates for the 2019 edition were graciously contributed by: • James L. Smith Ph.D. (all chapters) • Shouhong Wong, Ph.D. (chapters 4 and 8) • Joseph Mortati, MBA (chapter 10) Information Systems for Business and Beyond (2019) pg. 6 Changes from Previous Edition Information Systems for Business and Beyond was written by Dr. David Bourgeois and originally published in 2014 as part of the Open Textbook Challenge at the Saylor Foundation. Since then, it has been accessed thousands of time and used in many courses worldwide. This 2019 update to the textbook brings it up to date and adds many new topics. True to its open textbook roots, many of the updates have come from the community of instructors and practitioners who are passionate about information systems. See the page Book Contributors to see the primary contributors to this edition. A majority of the changes listed below were made by Dr. James Smith, who did a revision to this text in 2018. Here is a summary of the changes made: Overall • New and updated images, especially those related to statistics, in order to bring them up to date. • References brought up to date. • Added labs for every chapter. • Added an index. • Editing for consistency. Chapter 1: What is an information system? • Added video: Blum’s fibre optic TED Talk Information Systems for Business and Beyond (2019) pg. 7 Chapter 2: Hardware • Removed text which discussed increasing dependency on tablets and decreasing use of desktops • Clarification of bit vs. byte, binary vs. digital. Added tables to Understanding Binary sidebar • Added Huang’s Law on graphics processor units • Modified text regarding Moore’s Law to state that his law is no longer able to be maintained Chapter 3: Software • Added information about Ubuntu Linux • Added information about Tableau • Supply Chain Management: added an emphasis on use of Information Systems up and down supply chain by Walmart to gain competitive advantage Chapter 4: Data and Databases • Database schemas redesigned • Data types added • SQL examples include output • NoSQL described • Data Dictionary re-ordered to column name • New section on “Why database technology?” • Differentiation of data, information, and knowledge • Section on Data models • Changed illustrative example of database tables and relationships. Information Systems for Business and Beyond (2019) pg. 8 • Updated section on Business Intelligence to focus on the rise of analytics and data science. Includes a new “What is Data Science?” sidebar. Chapter 5: Networking and Communication • History of ARPANET initial four nodes, etc. • Metcalfe’s Law Chapter 6: Information Systems Security • Added information on blockchain and Bitcoin. Chapter 8: Business Processes • Introduce tools (DFD, BPMN, UML) of business process modeling • Introduce examples of DFD. Chapter 10: Information Systems Development • Java sample code • Mismanaging Change side bar • Added section on mobile development. • Added sidebar on risks of end-user computing • Added Eclipse IDE Information Systems for Business and Beyond (2019) pg. 9 Chapter 11: Globalization and the Digital Divide • World 3.0 written by economist Pankaj Ghemawat; also, his TED talk video Chapter 12: The Ethical and Legal Implications of Information Systems • Facebook and Cambridge Analytics data privacy • General Data Protection Regulation section Chapter 13: Trends in Information Systems • Waze mapping app • Drone video • Drone blood delivery in Kenya video • Added sidebar on Mary Meeker and her Internet Trends report Information Systems for Business and Beyond (2019) pg. 10 How you can help This is an open textbook and relies on the support of its users to stay relevant and available. Here’s how you can help: 1. Let us know you are using this textbook. ◦ If you are an instructor, please let us know you’ve adopted this textbook by filling out the instructor survey. ◦ If you are not an instructor, please fill out the student survey. 2. Let us know how to improve the textbook. If you have suggestions, please let us know by filling out our feedback form. 3. Finally, the domain, web hosting, security, backup and export tools used by this textbook are not free. Please consider supporting us financially through PayPal. Please note: this donation goes directly to Imperial Digital LLC, the company hosting and supporting this open textbook project. All contributions are marked as donations towards this open textbook project. Information Systems for Business and Beyond (2019) pg. 11 https://docs.google.com/forms/d/e/1FAIpQLSfF869qKL-ddztjZKTLxdeqDslpuZRGlmV3ccdJAUEzUtxo8Q/viewform https://docs.google.com/forms/d/e/1FAIpQLScdszjD9mXsCd8IBbTraPJt8rgIJ_I2eIEJuJakqKmd31K5XQ/viewform https://docs.google.com/forms/d/e/1FAIpQLScdszjD9mXsCd8IBbTraPJt8rgIJ_I2eIEJuJakqKmd31K5XQ/viewform https://docs.google.com/forms/d/e/1FAIpQLScdszjD9mXsCd8IBbTraPJt8rgIJ_I2eIEJuJakqKmd31K5XQ/viewform https://docs.google.com/forms/d/e/1FAIpQLSfhClva6Vcu10_xxFgLqWapKewr44NmoHsEy108alfomMg3bA/viewform https://docs.google.com/forms/d/e/1FAIpQLSfhClva6Vcu10_xxFgLqWapKewr44NmoHsEy108alfomMg3bA/viewform https://docs.google.com/forms/d/e/1FAIpQLSfhClva6Vcu10_xxFgLqWapKewr44NmoHsEy108alfomMg3bA/viewform https://www.paypal.com/cgi-bin/webscr?cmd=_s-xclick&hosted_button_id=UBXGVAUNGK5U8&source=url Introduction Welcome to Information Systems for Business and Beyond. In this book, you will be introduced to the concept of information systems, their use in business, and how information systems can be used to gain competitive advantage. Audience This book is written as an introductory text, meant for those with little or no experience with computers or information systems. While sometimes the descriptions can get a bit technical, every effort has been made to convey the information essential to understanding a topic while not getting overly focused in detailed terminology. Chapter Outline The text is organized around thirteen chapters divided into three major parts, as follows: • Part 1: What Is an Information System? ◦ Chapter 1: What Is an Information System? – This chapter provides an overview of information systems, including the history of how information systems got to where it is today. ◦ Chapter 2: Hardware – This is a discussion of information systems hardware and how it works. You will look at different computer parts and learn how they interact. Information Systems for Business and Beyond (2019) pg. 12 ◦ Chapter 3: Software – Without software, hardware is useless. This chapter covers software and the role it plays in an organization. ◦ Chapter 4: Data and Databases – This chapter explores how organizations use information systems to turn data into information that can then be used for competitive advantage. Special attention is paid to the role of databases. ◦ Chapter 5: Networking and Communication – Today’s computers are expected to also be communication devices. This chapter reviews the history of networking, how the Internet works, and the use of networks in organizations today. ◦ Chapter 6: Information Systems Security – This chapter discusses the information security triad of confidentiality, integrity, and availability. Different security technologies are reviewed, and the chapter concludes with a primer on personal information security. • Part 2: Information Systems for Strategic Advantage ◦ Chapter 7: Does IT Matter? – This chapter examines the impact that information systems have on an organization. Can IT give a company a competitive advantage? This chapter discusses the seminal works by Brynjolfsson, Carr, and Porter as they relate to IT and competitive advantage. ◦ Chapter 8: Business Processes – Business processes are the essence of what a business does, and information systems play an important role in making them work. This chapter will discuss business process management, business process reengineering, and ERP systems. ◦ Chapter 9: The People in Information Systems – This chapter will provide an overview of the different types of people involved in information systems. This includes Information Systems for Business and Beyond (2019) pg. 13 people who create information systems, those who operate and administer information systems, those who manage information systems, and those who use information systems. ◦ Chapter 10: Information Systems Development – How are information systems created? This chapter will review the concept of programming, look at different methods of software development, review website and mobile application development, discuss end-user computing, and look at the “build vs. buy” decision that many companies face. • Part 3: Information Systems beyond the Organization ◦ Chapter 11: Globalization and the Digital Divide – The rapid rise of the Internet has made it easier than ever to do business worldwide. This chapter will look at the impact that the Internet is having on the globalization of business and the issues that firms must face because of it. It will also cover the concept of the digital divide and some of the steps being taken to alleviate it. ◦ Chapter 12: The Ethical and Legal Implications of Information Systems – The rapid changes in information and communication technology in the past few decades have brought a broad array of new capabilities and powers to governments, organizations, and individuals alike. This chapter will discuss the effects that these new capabilities have had and the legal and regulatory changes that have been put in place in response. ◦ Chapter 13: Future Trends in Information Systems – This final chapter will present an overview of some of the new technologies that are on the horizon. From wearable technology to 3-D printing, this chapter will provide a look forward to what the next few years will bring. Information Systems for Business and Beyond (2019) pg. 14 For the Student Each chapter in this text begins with a list of the relevant learning objectives and ends with a chapter summary. Following the summary is a list of study questions that highlight key topics in the chapter. In order to get the best learning experience, you would be wise to begin by reading both the learning objectives and the summary and then reviewing the questions at the end of the chapter. For the Instructor Instructors: if you have adopted this book for your course, would you be so kind as to let us know in the instructor survey? Learning objectives can be found at the beginning of each chapter. Of course, all chapters are recommended for use in an introductory information systems course. However, for courses on a shorter calendar or courses using additional textbooks, a review of the learning objectives will help determine which chapters can be omitted. At the end of each chapter, there is a set of study questions and exercises (except for chapter 1, which only offers study questions). The study questions can be assigned to help focus students’ reading on the learning objectives. The exercises are meant to be a more in-depth, experiential way for students to learn chapter topics. It is recommended that you review any exercise before assigning it, adding any detail needed (such as length, due date) to complete the assignment. Some chapters also include lab assignments. As an open textbook, support for supplemental materials relies on the generosity of those who have created them and wish to share them. Supplemental materials, including slides and quizzes, are located on the home page for this book. If you wish to contribute materials that you have created, please fill out the instructor survey and communicate that fact. Information Systems for Business and Beyond (2019) pg. 15 https://docs.google.com/forms/d/e/1FAIpQLSfF869qKL-ddztjZKTLxdeqDslpuZRGlmV3ccdJAUEzUtxo8Q/viewform https://opentextbook.site/ https://docs.google.com/forms/d/e/1FAIpQLSfF869qKL-ddztjZKTLxdeqDslpuZRGlmV3ccdJAUEzUtxo8Q/viewform PART I: WHAT IS AN INFORMATION SYSTEM? Information Systems for Business and Beyond (2019) pg. 16 Chapter 1: What Is an Information System? Upon successful completion of this chapter, you will be able to: • Define what an information system is by identifying its major components; • Describe the basic history of information systems; and • Describe the basic argument behind the article “Does IT Matter?” by Nicholas Carr. Introduction Welcome to the world of information systems, a world that seems to change almost daily. Over the past few decades information systems have progressed to being virtually everywhere, even to the point where you may not realize its existence in many of your daily activities. Stop and consider how you interface with various components in information systems every day through different Information Systems for Business and Beyond (2019) pg. 1 electronic devices. Smartphones, laptop, and personal computers connect us constantly to a variety of systems including messaging, banking, online retailing, and academic resources, just to name a few examples. Information systems are at the center of virtually every organization, providing users with almost unlimited resources. Have you ever considered why businesses invest in technology? Some purchase computer hardware and software because everyone else has computers. Some even invest in the same hardware and software as their business friends even though different technology might be more appropriate for them. Finally, some businesses do sufficient research before deciding what best fits their needs. As you read through this book be sure to evaluate the contents of each chapter based on how you might someday apply what you have learned to strengthen the position of the business you work for, or maybe even your own business. Wise decisions can result in stability and growth for your future enterprise. Information systems surround you almost every day. Wi-fi networks on your university campus, database search services in the learning resource center, and printers in computer labs are good examples. Every time you go shopping you are interacting with an information system that manages inventory and sales. Even driving to school or work results in an interaction with the transportation information system, impacting traffic lights, cameras, etc. Vending machines connect and communicate using the Internet of Things (IoT). Your car’s computer system does more than just control the engine – acceleration, shifting, and braking data is always recorded. And, of course, everyone’s smartphone is constantly connecting to available networks via Wi-fi, recording your location and other data. Can you think of some words to describe an information system? Words such as “computers,” “networks,” or “databases” might pop into your mind. The study of information systems encompasses a broad array of devices, software, and data systems. Defining an Information Systems for Business and Beyond (2019) pg. 2 - information system provides you with a solid start to this course and the content you are about to encounter. Defining Information Systems Many programs in business require students to take a course in information systems. Various authors have attempted to define the term in different ways. Read the following definitions, then see if you can detect some variances. • “An information system (IS) can be defined technically as a set of interrelated components that collect, process, store, and distribute information to support decision making and control in an organization.” 1 • “Information systems are combinations of hardware, software, and telecommunications networks that people build and use to collect, create, and distribute useful data, typically in organizational settings.” 2 • “Information systems are interrelated components working together to collect, process, store, and disseminate information to support decision making, coordination, control, analysis, and visualization in an organization.” 3 As you can see these definitions focus on two different ways of describing information systems: the components that make up an information system and the role those components play in an organization. Each of these need to be examined. Information Systems for Business and Beyond (2019) pg. 3 The Components of Information Systems Information systems can be viewed as having five major components: hardware, software, data, people, and processes. The first three are technology. These are probably what you thought of when defining information systems. The last two components, people and processes, separate the idea of information systems from more technical fields, such as computer science. In order to fully understand information systems, you will need to understand how all of these components work together to bring value to an organization. Technology Technology can be thought of as the application of scientific knowledge for practical purposes. From the invention of the wheel to the harnessing of electricity for artificial lighting, technology has become ubiquitous in daily life, to the degree that it is assumed to always be available for use regardless of location. As discussed before, the first three components of information systems – hardware, software, and data – all fall under the category of technology. Each of these will be addressed in an individual chapter. At this point a simple introduction should help you in your understanding. Hardware Hardware is the tangible, physical portion of an information system – the part you can touch. Computers, keyboards, disk drives, and Information Systems for Business and Beyond (2019) pg. 4 Flash drives are all examples of systems hardware. How these hardware components function and work together will be covered in Chapter 2. Software Software comprises the set of instructions that tell the hardware what to do. Software is not tangible – it cannot be touched. Programmers create software by typing a series of instructions telling the hardware what to do. Two main categories of software are: Operating Systems and Application software. Operating Systems software provides the interface between the hardware and the Application software. Examples of operating systems for a personal computer include Microsoft Windows and Ubuntu Linux. The mobile phone operating system market is dominated by Google Android and Apple iOS. Application software allows the user to perform tasks such as creating documents, recording data in a spreadsheet, or messaging a friend. Software will be explored more thoroughly in Chapter 3. Data The third technology component is data. You can think of data as a collection of facts. For example, your address (street, city state, postal code), your phone number, and your social Information Systems for Business and Beyond (2019) pg. 5 networking account are all pieces of data. Like software, data is also intangible, unable to be seen in its native state. Pieces of unrelated data are not very useful. But aggregated, indexed, and organized together into a database, data can become a powerful tool for businesses. Organizations collect all kinds of data and use it to make decisions which can then be analyzed as to their effectiveness. The analysis of data is then used to improve the organization’s performance. Chapter 4 will focus on data and databases, and how it is used in organizations. Networking Communication Besides the technology components (hardware, software, and data) which have long been considered the core technology of information systems, it has been suggested that one other component should be added: communication. An information system can exist without the ability to communicate – the first personal computers were stand-alone machines that did not access the Internet. However, in today’s hyper-connected world, it is an extremely rare computer that does not connect to another device or to an e-network. Technically, the networking communication component is made up of hardware and software, but it is such a core feature of today’s information systems that it has become its own category. Networking will be covered in Chapter 5. Information Systems for Business and Beyond (2019) pg. 6 People Jeff Bezos, Amazon CEO When thinking about information systems, it is easy to focus on the technology components and forget to look beyond these tools to fully understand their integration into an organization. A focus on the people involved in information systems is the next step. From the front-line user support staff, to systems analysts, to developers, all the way up to the chief information officer (CIO), the people involved with information systems are an essential element. The people component will be covered in Chapter 9. Process The last component of information systems is process. A process is a series of steps undertaken to achieve a desired outcome or goal. Information systems are becoming more integrated with organizational processes, bringing greater productivity and better control to those processes. But simply automating activities using technology is not enough – businesses looking to utilize information systems must do more. The ultimate goal is to improve processes both internally and externally, enhancing interfaces with suppliers and customers. Technology buzzwords such as “business process re-engineering,” “business process management,” and “enterprise resource planning” all have to do with the continued improvement of these business procedures and the integration of technology with them. Businesses hoping to gain a competitive advantage over their competitors are highly focused on this Information Systems for Business and Beyond (2019) pg. 7 component of information systems. The process element in information systems will be discussed in Chapter 8. The Role of Information Systems You should now understand that information systems have a number of vital components, some tangible, others intangible, and still others of a personnel nature. These components collect, store, organize, and …