The Digital Enterprise: Challenges and Opportunities in the Global Economy
The Challenge of Business Strategy in the Digital Enterprise
How can companies leverage information technology to enhance competitiveness, efficiency, and digital capabilities?
The Challenge of Globalization
Understanding Business Requirements and Systems in a Global Economic Environment
The Challenge of Information Architecture
Creating an Information Architecture and Infrastructure to Support Organizational Goals in Changing Environments
The Challenge of Investing in Systems
Determining the Business Value of Information Systems
The Challenge of Accountability and Control
Ensuring Ethical and Socially Responsible Use of Information Systems
Four Major Changes in the Global Business Environment
- Emergence of the Global Economy
- Transformation of Industrial Economies
- The Emerging Digital Firm
- Transformation of the Commercial Enterprise
Emergence of a Global Economy
- Management and Control in a Global Market
- Competition in World Markets
- Global Working Groups
- Global Delivery Systems
Transformation in the Industrial Economy
- Knowledge and Information-Based Products and Services
- New Productivity
- Knowledge as a Central Productive and Strategic Asset
Transformation in the Industrial Economy (Continued)
- Competition Based on Time
- Shorter Product Life Cycles
- Turbulent Environments
- Limited Employee Knowledge Base
Transformation in the Company
- Flattening
- Decentralization
- Flexibility
- Location Independence
- Low Transaction Costs and Coordination
- Empowerment
- Collaborative and Team Work
The Emergence of the Digital Enterprise
- Digital Communication with Customers, Suppliers, and Employees
- Business Processes Implemented Through Digital Networks
- Digital Administration as a Key Corporate Asset
- Rapid Response to Environmental Changes
Four Main Systems of the Digital Enterprise
- Supply Chain Management Systems
- Customer Relationship Management Systems
- Enterprise Systems
- Knowledge Management Systems
Information System
A set of interrelated components that collect (or retrieve), process, store, and distribute information to support decision-making, control, analysis, and visualization within an organization.
Data
Raw facts representing events occurring in organizations or the physical environment before being organized and arranged for human understanding and use.
Information
Data that has been organized and processed into a meaningful and useful form for humans.
Basic Knowledge of Information Systems
Understanding the broader context of information systems, including behavioral knowledge about organizations and individuals using information systems, as well as computer expertise.
Basic Knowledge of Information Technology
Knowledge focused on understanding the operation of computer-based technologies.
Main Business Functions
- Sales and Marketing
- Manufacturing & Production
- Finance
- Accounting
- Human Resources
Key Elements of an Organization
- People: Directors, knowledge workers, data workers, production or service workers, middle managers, operating managers
- Structure: Reflects a clear division of labor, with experts employed and trained for specific functions
- Operating Procedures: Standard Operating Procedures (SOPs) – formal rules for task execution
- Policies: Enable management commitments and conflict resolution
- Culture: Fundamental set of assumptions, values, and ways of doing things accepted by most members
- Stories: Narratives that shape organizational culture and identity
Roles within an Organization
- Directors: Make long-term strategic decisions about products and services
- Middle Managers: Execute plans and programs established by directors
- Operational Managers: Oversee daily operations and optimize performance
Optimizing the Performance of Information Systems
System operation is optimized when technology and the organization work together harmoniously.
Formal Systems
Systems with fixed definitions of data and procedures for collecting, storing, processing, distributing, and using that data.
Information Processing and Business Value
Organizations process information to improve performance and profit. Information processing is a crucial tool for creating business value, supporting management decisions, improving business process execution, and ultimately increasing profitability.