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Page 1: ch01

Ch

ap

ter 1

IT S

up

po

rts Org

an

izatio

na

l Pe

rform

an

ce

in T

urb

ule

nt B

usin

ess E

nv

iron

me

nts

Info

rma

tion

Tech

no

log

y fo

r Ma

na

ge

me

nt

Imp

rov

ing

Pe

rform

an

ce in

the

Dig

ital E

con

om

y

Turban and Volonino

7th

ed

ition

Joh

n W

iley

& S

on

s, Inc.

Slid

es co

ntrib

ute

d b

y D

r. Sa

nd

ra R

eid

Ch

air, G

rad

ua

te S

cho

ol o

f Bu

sine

ss & P

rofe

ssor, Te

chn

olo

gy

Da

llas B

ap

tist Un

ive

rsity

Turban and Volonino

1-1

Co

pyrig

ht 2

01

0 Jo

hn

Wile

y &

So

ns, In

c.

Ch

ap

ter O

utlin

e

•1

.1 D

oin

g B

usin

ess in

the

Dig

ital E

con

om

y

•1

.2 In

form

atio

n Syste

ms a

nd

Info

rma

tion

Tech

no

log

y

(IT)

•1

.3 B

usin

ess P

erfo

rma

nce

Ma

na

ge

me

nt, B

usin

ess

•1

.3 B

usin

ess P

erfo

rma

nce

Ma

na

ge

me

nt, B

usin

ess

Pre

ssure

s, Org

an

izatio

n R

esp

on

ses, a

nd

IT S

up

po

rt

•1

.4 S

trate

gy fo

r Co

mp

etitive

Ad

van

tag

e a

nd

IT

Su

pp

ort

•1

.5 S

ocia

l Co

mp

utin

g a

nd

Ne

two

rkin

g

1-2

Co

pyrig

ht 2

01

0 Jo

hn

Wile

y &

So

ns, In

c.

Ch

ap

ter O

utlin

e co

nt’d

•1

.6 W

hy

Sh

ou

ld Yo

u Le

arn

Ab

ou

t Info

rma

tion

Tech

no

log

y?

•1

.7 P

lan

of th

e B

oo

k

•1

.8 M

an

ag

eria

l Issue

s•

1.8

Ma

na

ge

rial Issu

es

1-3

Co

pyrig

ht 2

01

0 Jo

hn

Wile

y &

So

ns, In

c.

Lea

rnin

g O

bje

ctive

s

1.

De

scribe

cha

racte

ristics of th

e d

igita

l eco

no

my

an

d

dig

ital e

nte

rprise

s.

2.

De

fine

info

rma

tion

system

s, com

pu

ter-b

ase

d

info

rma

tion

system

s an

d in

form

atio

n te

chn

olo

gy.

3.

Exp

lain

the

rela

tion

ship

s be

twe

en

pe

rform

an

ce,

3.

Exp

lain

the

rela

tion

ship

s be

twe

en

pe

rform

an

ce,

en

viro

nm

en

tal p

ressu

res, o

rga

niza

tion

al re

spo

nse

s, an

d

info

rma

tion

tech

no

log

y.

4.

Ide

ntify

ma

jor p

ressu

res in

the

bu

sine

ss en

viro

nm

en

t a

nd

de

scribe

ma

jor o

rga

niza

tion

al re

spo

nse

s to th

em

.

5.

De

scribe

ad

ap

tive e

nte

rprise

s an

d w

hy

the

y a

re IT

-d

ep

en

de

nt.

1-4

Co

pyrig

ht 2

01

0 Jo

hn

Wile

y &

So

ns, In

c.

Lea

rnin

g O

bje

ctive

s con

t’d

6. E

xpla

in th

e fu

nctio

n a

nd

imp

acts o

f socia

l

com

pu

ting

an

d so

cial-n

etw

ork

ing

.

7. U

nd

ersta

nd

the

imp

orta

nce

of le

arn

ing

ab

ou

t

info

rma

tion

tech

no

log

y.

Co

pyrig

ht 2

01

0 Jo

hn

Wile

y &

So

ns, In

c.1

-5

Fig

ure

IT 7

eU

Th

e B

usin

ess P

erfo

rma

nce

Ma

na

ge

me

nt C

ycle

an

d IT

Mo

de

l

1-6

Co

pyrig

ht 2

01

0 Jo

hn

Wile

y &

So

ns, In

c.

Page 2: ch01

Toy

ota

Scio

n’s In

no

va

tive

Ad

ve

rtising

Stra

teg

ies

•T

he

Pro

ble

m:

Incre

asin

gly

com

pe

titive g

lob

al

ma

rketp

lace

for th

e a

uto

mo

tive in

du

stry.

Toyo

ta w

ith in

trod

uctio

n o

f Scio

n g

oe

s dire

ctly

up

ag

ain

st Ge

ne

ral M

oto

rs an

d th

e M

alib

u fo

r

the

po

sition

of #

1 ca

r ma

nu

factu

rer.

the

po

sition

of #

1 ca

r ma

nu

factu

rer.

Co

pyrig

ht 2

01

0 Jo

hn

Wile

y &

So

ns, In

c.1

-7

GM

Vs.

Ge

n Y

targ

et m

ark

et

Wid

e ta

rge

t

ma

rke

t

Toy

ota

Toy

ota

Scio

n’s In

no

va

tive

Ad

ve

rtising

Stra

teg

ies

(con

tinu

ed

)

•To

yota

kn

ow

n fo

r its ma

nu

factu

ring

inn

ova

tion

s.

•A

gg

ressive

we

b-p

rese

nce

strate

gy.

•G

en

era

tion

Y p

op

ula

tion

, tho

se b

orn

19

80

-•

Ge

ne

ratio

n Y

po

pu

latio

n, th

ose

bo

rn 1

98

0-

19

94

, exp

ecte

d to

be

a b

igg

er co

nsu

me

r ba

se

tha

n th

e B

ab

y B

oo

me

rs an

d th

e ta

rge

t ma

rket

of th

e S

cion

.

•P

BS

Do

cum

en

tary

Loo

ks a

t 'Ge

ne

ratio

n N

ex

t‘

Co

pyrig

ht 2

01

0 Jo

hn

Wile

y &

So

ns, In

c.1

-8

Toy

ota

Scio

n’s In

no

va

tive

Ad

ve

rtising

Stra

teg

ies

(con

tinu

ed

)

•T

he

So

lutio

n:

Se

gm

en

ted

ad

vertisin

g m

ajo

r m

ed

ia-b

ase

d stra

teg

y.

Se

arch

en

gin

e m

ark

etin

gp

rod

ucts –

see

de

mo

e

xam

ple

by

clickin

g th

is ima

ge

: e

xam

ple

by

clickin

g th

is ima

ge

:

•To

yota

use

s Scio

n C

am

pa

ign

Ha

s Pe

rson

ality

-D

rive

n A

ds

to re

ach

futu

re cu

stom

ers a

t a ve

ry

you

ng

ag

e a

ccord

ing

to

Co

pyrig

ht 2

01

0 Jo

hn

Wile

y &

So

ns, In

c.1

-9

Toy

ota

Scio

n’s In

no

va

tive

Ad

ve

rtising

Stra

teg

ies

(con

tinu

ed

)

•In

Au

gu

st 20

07

, Scio

n la

un

che

d C

lub

Scio

nto

crea

te a

virtu

al re

ality

wo

rld site

of d

an

ce flo

ors,

mu

sic, & h

ot tu

bs fo

r en

thu

siasts.

•A

dd

ition

al v

irtua

l wo

rld p

rese

nce

by

Scio

n to

Ad

ditio

na

l virtu

al w

orld

pre

sen

ce b

y S

cion

to

attra

ct the

ma

turin

g G

en

Y co

nsu

me

r inclu

din

g:

-S

eco

nd

life.co

m

-W

hy

ville

.com

-G

aia

.com

-T

he

re.co

m

Co

pyrig

ht 2

01

0 Jo

hn

Wile

y &

So

ns, In

c.1

-10

Toy

ota

Scio

n’s In

no

va

tive

Ad

ve

rtising

Stra

teg

ies

(con

tinu

ed

)

•To

yota

Use

s Ch

at to

Pro

mo

te S

cion

–sm

art

strate

gy

to ta

p in

to th

e so

cial n

etw

orks o

f 18

to 2

4 ye

ar o

ld a

ud

ien

ce.

•V

ario

us p

rov

ide

rs of live

cha

t softw

are

exist

•V

ario

us p

rov

ide

rs of live

cha

t softw

are

exist

such

as:

Co

pyrig

ht 2

01

0 Jo

hn

Wile

y &

So

ns, In

c.1

-11

Toy

ota

Scio

n’s In

no

va

tive

Ad

ve

rtising

Stra

teg

ies

(con

tinu

ed

)

Co

pyrig

ht 2

01

0 Jo

hn

Wile

y &

So

ns, In

c.1

-12

For th

e 2

00

8 x

B S

UV

, Scio

n cre

ate

d a

spe

cial W

eb

site,

wa

nt2

bsq

ua

re.co

m

Page 3: ch01

Toy

ota

Scio

n’s In

no

va

tive

Ad

ve

rtising

Stra

teg

ies

(con

tinu

ed

)

•To

yota

targ

ets ch

ildre

n a

s a m

ea

ns to

in

flue

nce

the

ir pa

ren

ts.

•S

cion

is crea

ting

its ow

n b

roa

db

an

d ch

an

ne

l as

a w

ay

to m

ove

from

pu

sh to

pu

ll ma

rketin

g

a w

ay

to m

ove

from

pu

sh to

pu

ll ma

rketin

g

wh

ere

the

custo

me

r de

cide

s wh

at m

ate

rials to

v

iew

an

d w

he

n.

•To

yota

crea

ted

its ow

n so

cial n

etw

ork

calle

d

Scio

n S

pe

ak

wh

ere

Scio

n’s e

nth

usia

sts can

so

cialize

, com

mu

nica

te a

nd

pla

y.

Co

pyrig

ht 2

01

0 Jo

hn

Wile

y &

So

ns, In

c.1

-13

Toy

ota

Scio

n’s In

no

va

tive

Ad

ve

rtising

Stra

teg

ies

(con

tinu

ed

)

•T

he

Re

sults:

Scio

n h

as 8

0%

bra

nd

reco

gn

ition

acco

rdin

g to

Ma

rketin

g V

ox N

ew

s (20

07

).

-A

ma

zing

jum

p to

#1

ran

kin

g d

ue

to

inte

ractive

an

d co

mm

un

ity-o

rien

ted

na

ture

of

inte

ractive

an

d co

mm

un

ity-o

rien

ted

na

ture

of

the

Scio

n o

nlin

e e

xpe

rien

ces.

-S

cion

we

bsite

is hig

hly

pe

rson

alize

d w

ith

sop

histica

ted

custo

miza

tion

too

ls with

offlin

e

info

rma

tion

inte

gra

tion

.

Co

pyrig

ht 2

01

0 Jo

hn

Wile

y &

So

ns, In

c.1

-14

1.1

Do

ing

Bu

sine

ss in th

e D

igita

l Eco

no

my

Co

pyrig

ht 2

01

0 Jo

hn

Wile

y &

So

ns, In

c.1

-15

Wh

at is th

e D

igita

l Eco

no

my

?

•In

form

atio

n &

en

terta

inm

en

t pro

du

cts tha

t are

dig

itized

.

•Sy

mb

ols, to

ken

s & co

nce

pts.

•P

roce

sses &

serv

ices.

•P

roce

sses &

serv

ices.

Co

pyrig

ht 2

01

0 Jo

hn

Wile

y &

So

ns, In

c.1

-16

Click

on

the

Wik

ipe

dia

ima

ge

for a

n

ex

pa

nd

ed

de

scriptio

n &

de

finitio

n o

f

the

Dig

ital E

con

om

y.

Tab

le 1

.1

Co

pyrig

ht 2

01

0 Jo

hn

Wile

y &

So

ns, In

c.1

-17

Ele

ctron

ic Co

mm

erce

•S

iem

en

s AG

esta

blish

ed

existin

g o

ld co

mp

an

y

into

tran

sform

ed

dig

ital e

nte

rprise

an

d is

exce

llen

t exa

mp

le o

f ele

ctron

ic com

me

rce.

Click

ima

ge

for h

om

ep

ag

e &

mo

re a

bo

ut

cha

ng

es a

t Sie

me

ns A

G.

Co

pyrig

ht 2

01

0 Jo

hn

Wile

y &

So

ns, In

c.1

-18

Page 4: ch01

Ne

two

rke

d C

om

pu

ting

–D

igita

l Org

an

izatio

n

Infra

structu

re

•E

na

ble

s com

pu

ters to

con

ne

ct to o

the

r

com

pu

ters &

oth

er e

lectro

nic d

ev

ices v

ia

tele

com

mu

nica

tion

ne

two

rks.

•C

on

ne

ction

s give

use

rs acce

ss to re

mo

te

•C

on

ne

ction

s give

use

rs acce

ss to re

mo

te

info

rma

tion

.

•U

sers m

ay

be

con

ne

cted

via

wire

less n

etw

ork

s to

pu

blic n

etw

ork

-Inte

rne

t (valu

e-a

dd

ed

ne

two

rks

(VA

N)); In

tran

ets (w

ithin

org

an

izatio

ns o

nly

); &

con

ne

ction

s to b

usin

ess p

artn

ers (E

xtran

ets).

Co

pyrig

ht 2

01

0 Jo

hn

Wile

y &

So

ns, In

c.1

-19

Fig

ure

1.1

Dig

ital n

etw

ork

ed

en

terp

rise.

Co

pyrig

ht 2

01

0 Jo

hn

Wile

y &

So

ns, In

c.1

-20

Bu

yin

g o

r Re

ntin

g a

Mo

vie

On

line

Co

pyrig

ht 2

01

0 Jo

hn

Wile

y &

So

ns, In

c.1

-21

Scre

en

sho

t 1U

.1 N

etflix

Ne

w E

con

om

y

Ne

tflix

Blo

ckb

uste

r

Mo

vie

s.ya

ho

o.co

mM

ov

ies.y

ah

oo

.comCo

pyrig

ht 2

01

0 Jo

hn

Wile

y &

So

ns, In

c.1

-22

Wh

ich is b

ette

r?

Fig

ure

1.2

Co

pyrig

ht 2

01

0 Jo

hn

Wile

y &

So

ns, In

c.1

-23

Ho

w cu

stom

izatio

n is d

on

e o

nlin

e: N

ike

sho

es.

1.2

Info

rma

tion

Syste

ms a

nd

Info

rma

tion

Tech

no

log

y

Co

pyrig

ht 2

01

0 Jo

hn

Wile

y &

So

ns, In

c.1

-24

Info

rma

tion

Tech

no

log

y

Page 5: ch01

Fig

ure

1.3

Co

pyrig

ht 2

01

0 Jo

hn

Wile

y &

So

ns, In

c.1

-25

A sch

em

atic v

iew

of a

n in

form

atio

n sy

stem

.

Fig

ure

1.4

Co

pyrig

ht 2

01

0 Jo

hn

Wile

y &

So

ns, In

c.1

-26

Th

e b

asic co

mp

on

en

ts of in

form

atio

n sy

stem

s.

Tab

le 1

.2

Co

pyrig

ht 2

01

0 Jo

hn

Wile

y &

So

ns, In

c.1

-27

1.3

Bu

sine

ss Pe

rform

an

ce M

an

ag

em

en

t,

Bu

sine

ss Pre

ssure

s, Org

an

izatio

na

l Re

spo

nse

s,

Co

pyrig

ht 2

01

0 Jo

hn

Wile

y &

So

ns, In

c.1

-28

Bu

sine

ss Pre

ssure

s, Org

an

izatio

na

l Re

spo

nse

s,

an

d IT

Su

pp

ort

Fig

ure

1.5

Co

pyrig

ht 2

01

0 Jo

hn

Wile

y &

So

ns, In

c.1

-29

Bu

sine

ss pe

rform

an

ce m

an

ag

em

en

t cycle

an

d IT.

Fig

ure

1.6

Co

pyrig

ht 2

01

0 Jo

hn

Wile

y &

So

ns, In

c.1

-30

Bu

sine

ss pre

ssure

s, org

an

izatio

na

l pe

rform

an

ce a

nd

resp

on

ses, a

nd

IT su

pp

ort.

Page 6: ch01

Gre

en

IT

Pu

shin

g G

ree

n Te

chn

olo

gy

Co

pyrig

ht 2

01

0 Jo

hn

Wile

y &

So

ns, In

c.1

-31

Co

mp

an

ies G

oin

g G

ree

n –

It’s Go

od

Bu

sine

ss

60

Min

ute

s (cbs

ne

ws m

ag

azin

e) co

rresp

on

de

nt S

cott P

elle

y a

nd

crew

go

t rou

gh

ed

up

Co

pyrig

ht 2

01

0 Jo

hn

Wile

y &

So

ns, In

c.1

-32

http

://ww

w.cb

sne

ws.co

m/sto

ries/2

00

8/1

1/0

6/6

0m

inu

tes/m

ain

45

79

22

9.sh

tml

60

Min

ute

s (cbs

ne

ws m

ag

azin

e) co

rresp

on

de

nt S

cott P

elle

y a

nd

crew

go

t rou

gh

ed

up

at a

Ch

ine

se d

um

p w

hile

wo

rkin

g o

n a

story

on

toxic e

lectro

nic w

aste

. Click

the

follo

win

g lin

k &

rea

d/w

atch

the

story, F

ollo

win

g T

he

Tra

il Of To

xic E

-Wa

ste :

An

E-W

aste

Sto

ry T

ha

t'll Ma

ke

Yo

u W

an

t To Q

uit Te

ch

Tab

le 1

.3

Co

pyrig

ht 2

01

0 Jo

hn

Wile

y &

So

ns, In

c.1

-33

Eth

ics & IT

•G

ov

ern

an

ce G

au

ge

: Ha

il To T

he

Co

mp

lian

ce C

hie

fs

Inte

llige

nt E

nte

rprise

, Ma

rch 0

1, 2

00

5

•S

OX

SU

IT: H

old

ing

Fe

et To

Th

e F

ire

Inte

llige

nt E

nte

rprise

, Jan

ua

ry 0

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thics

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rch 2

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00

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f Histo

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05

, 20

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ase

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an

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-36

Page 7: ch01

Po

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Tab

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Fig

ure

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Th

e firm

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)

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Page 8: ch01

First M

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Page 9: ch01

1.8

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system

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two

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pu

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lob

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.

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ission

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r fro

m th

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