It Based on Organisational in Digital Economy
The IT-Based Organization in the Digital Economy
Chapter Preview
This chapter discusses how business is done at the beginning of the twenty-first century and the fundamental and powerful roles that information technologies play in helping businesses survive and prosper in today’s dynamic, competitive, global environment. We describe how various types of pressures, particularly new technologies, are forcing businesses to transition from the Old Economy to the New Economy. We show you how any information system, properly used, can be strategic, meaning that the information system can provide a competitive advantage. We also describe information systems that have failed, often at great cost to the enterprise. We finish up the chapter with an explanation of why you should learn about information technology.
CHAPTER
1
Chapter Outline
1.1 Doing Business in the Digital Economy 1.2 Business Pressures, Organizational Responses, and IT Support 1.3 Competitive Advantage and Strategic Information Systems 1.4 Strategic Information Systems: Examples 1.5 Why Should You Learn About Information Technology?
Learning Objectives
1. Describe the characteristics of the digital economy and e-business. 2. Discuss the relationships among business pressures, organizational responses, and information systems. 3. Describe strategic information systems (SISs) and explain their advantages. 4. Describe Porter’s competitive forces model and how information technology helps companies improve their competitive positions. 5. Describe 12 strategies that companies can use to achieve competitive advantage in their industries.
1
DELTA AIR LINES’ DIGITAL NERVOUS SYSTEM
A major hub-and-spoke airline like Delta (delta.com) has costs that can be 150 percent higher than those of “no-frills” carriers. AirTran, JetBlue, and Southwest are squeezing all the major network carriers, but Delta is feeling it the most. The Atlanta-based company, which lost $1.3 billion in 2002, estimates that 40
Chapter Preview
This chapter discusses how business is done at the beginning of the twenty-first century and the fundamental and powerful roles that information technologies play in helping businesses survive and prosper in today’s dynamic, competitive, global environment. We describe how various types of pressures, particularly new technologies, are forcing businesses to transition from the Old Economy to the New Economy. We show you how any information system, properly used, can be strategic, meaning that the information system can provide a competitive advantage. We also describe information systems that have failed, often at great cost to the enterprise. We finish up the chapter with an explanation of why you should learn about information technology.
CHAPTER
1
Chapter Outline
1.1 Doing Business in the Digital Economy 1.2 Business Pressures, Organizational Responses, and IT Support 1.3 Competitive Advantage and Strategic Information Systems 1.4 Strategic Information Systems: Examples 1.5 Why Should You Learn About Information Technology?
Learning Objectives
1. Describe the characteristics of the digital economy and e-business. 2. Discuss the relationships among business pressures, organizational responses, and information systems. 3. Describe strategic information systems (SISs) and explain their advantages. 4. Describe Porter’s competitive forces model and how information technology helps companies improve their competitive positions. 5. Describe 12 strategies that companies can use to achieve competitive advantage in their industries.
1
DELTA AIR LINES’ DIGITAL NERVOUS SYSTEM
A major hub-and-spoke airline like Delta (delta.com) has costs that can be 150 percent higher than those of “no-frills” carriers. AirTran, JetBlue, and Southwest are squeezing all the major network carriers, but Delta is feeling it the most. The Atlanta-based company, which lost $1.3 billion in 2002, estimates that 40
References: Sitting in the empty club a few hours before opening, you have your initial meeting with Ruben and Lisa. They give you background on the club and tell you about their need to boost their information technology, data management, and decision-making capabilities. Your first task is to get acquainted with the club and its operations, so Lisa has you log in to their website from her desk in their tiny back office. 1. Visit the Club IT website, and answer the following questions: a. What is Club IT’s mission? b. Who is Club IT’s primary clientele? 31 c. What are the current employment opportunities at Club IT? d. What is your boss’ email address? e. What information is available to employees only (password is clubit) 2. Find another nightclub on the Web and describe the information it provides via its web site. Go to Student Website to access the Club IT website on the