Industrial Revolutions and Technology

Industrial Revolutions and Technology

• The world has experienced four industrial revolutions.
• The First Industrial Revolution (1750s-1800s) used steam engines, mechanized production, and established factories.
• The Second Industrial Revolution (late 1800s-early 1900s) focused on electricity, mass production, and improved transportation.
• The Third Industrial Revolution (1950s-2000s) saw the rise of digital technology, computers, and automation.
• The Fourth Industrial Revolution (2000s-Present) involves AI, robotics, IoT, 3D printing, and smart factories.
• Technology has led to faster, cheaper, and more efficient production.

Mass Customization

• Mass customization involves offering individually tailored products or services using mass production resources.
• Examples include 3D-printed jewelry/medical implants and customized shoes.

Information Systems in Business Today

• Emerging mobile digital platforms and the increasing use of "big data" are transforming business.
• Big Data refers to extremely large data sets analyzed computationally to identify patterns, trends, and associations, especially related to human behavior.
• Significant IT investment goes into managing and maintaining "big data," including growth in cloud computing.
• Globalization offers opportunities, namely the drastic reduction in operating costs due to the Internet.
• Globalization increases foreign trade/outsourcing and presents challenges and opportunities.

IT Capital investment

• Information technology capital investment, including hardware, software, and communications equipment, rose from 32% to 52% of all invested capital between 1980 and 2009.

AI-Powered Mobile Apps

• The AI-Powered Mobile Apps Case Study helps with understanding how AI Mobile Applications can help run businesses

Digital Firms

• A digital firm is characterized by digitally enabled and mediated business relationships with customers, suppliers, and employees.
• Digital firms are more likely than traditional firms to benefit from globalization.
• Digital firms can access information needed for key decisions anytime, anywhere.

Space Shifting vs. Time Shifting

• Time shifting means conducting business continuously, 24/7, instead of within narrow "workday" time bands (9 a.m. to 5 p.m.).
• Space shifting involves work taking place in a global workshop and within national boundaries.
• Space shifting means that work is physically accomplished wherever it's best suited globally

Six Strategic Business Objectives

• Growing interdependence means to use information technology to implement corporate strategies and achieve corporate goals.
• Business firms invest heavily in information systems to achieve six strategic business objectives: operational excellence, new products/services/business models, customer and supplier intimacy, improved decision-making, competitive advantage, and survival.

Operational Excellence

• Operational excellence is the continuous effort by businesses to improve the efficiency of their operations for higher profitability.
• Info systems and technology are important tools for achieving efficiency and productivity, linked with changes in business practices and management behavior.

New Products, Services, and Business Models

• Information systems help produce new products, services, and business models.
• A business model describes how a company produces, delivers, and sells a product or service to create wealth.

Apple's Influence on the Music Industry

• The old model of music distribution was vinyl, tapes, and CDs.
• The new model is online, legal music distribution.
• Apple revolutionized music distribution with iTunes and integrated music with its own technology ecosystem.
• Apple continued innovation with the iPad & iPhone.
• Apple transformed the music industry, making digital music the new norm.

Customer and Supplier Intimacy

• Customer loyalty depends on good service and personalized experiences
• Loyalty relies on consistent quality/reliability, and competitive pricing/rewards are also important
• Supplier partnerships rely on strong communication/collaboration, long-term relationships/trust, and fair pricing/consistent demand.
• Businesses with millions of customers/suppliers need data-driven insights and engagement strategies.

Improved Decision-Making

• Challenges for managers include operating in an information fog with poor access to timely data, relying on forecasts, best guesses, and luck which all leads to over/underproduction, misallocation of resources, and poor response times.
• Impact include higher costs and lost customers
• For decision-making, real-time data from information systems improves efficiency and accuracy

Competitive Advantage

• Doing things better than competitors, charging less for superior products.
• Responding to customers and suppliers in real-time leads to higher sales and profits that competitors cannot match.

Survival

• Firms invest in information systems and technologies as necessities of doing business.
• Necessities are driven by industry-level changes.

Information Systems

• An information system is a set of interrelated components that collect, process, store, and distribute information.
• Information systems support decision-making and control in an organization.

Dimensions of Information Systems

• Effective use of information systems needs an understanding of organizations, management, and information technology.
• Information systems create value as an organizational and management solution to environmental challenges.

Perspectives on Information Systems

• Three activities of information systems produce required information.
• Input captures raw data.
• Processing converts data into meaningful form.
• Output transfers information to people/activities.
• Feedback evaluates or corrects the input stage.

Technology Dimension

• Computers and software are the technical foundation, tools similar to materials for building a house.
• Infrastructure includes: computer hardware, computer software, data management technology, networking infrastructure.
• Networks include the Internet, intranets, and extranets.
• The World Wide Web completes the infrastructure.
• These shared resources form the firm’s information technology (IT) infrastructure.

Computer Software

• Computer software consists of preprogrammed instructions that control and coordinate the hardware in an information system.

Computer Hardware

• Computer hardware is physical equipment used for input, processing, and output tasks
• It includes computers of different sizes/shapes, mobiles, input/output/storage devices, telecommunications devices to link computers.

Data Management Technology

• Data management technology is software for organizing data on physical storage media.

Networking and Telecommunications

• Networking and telecom technology links pieces of hardware with both physical devices and software.
• A network links two or more computers to share data or resources, such as a printer.

Internet

• The Internet is the world's largest network.
• Nearly 2.3 billion users in over 230 countries connect to different networks using global universal standards

Internet vs. Extranet vs. Intranet

• Internal corporate nets based on Internet technology are called intranets.
• Private intranets extended to authorized users outside the organization are extranets for firms to coordinate.
• Extranets can work to coordinate with other firms for making purchases, collaborating on design, and other interorganizational work.

World Wide Web

• The World Wide Web is a service provided by the Internet that uses universally accepted standards for storing, retrieving, formatting, and displaying in a page format
• Web pages include things like text, graphics, and video, and are linked to additional locations on the Web.

Data Vs Information

• Data are raw facts representing events or occurrences, not yet organized or meaningful.
• Information is data that has been processed and organized to become meaningful and useful.

What is new in MIS in Technology?

• Major business applications are delivered through an Internet service (SaaS)
• Companies look for insights from data from Web traffic, email and social media

Management Responsibilities

• Managers will understand organizational challenges.
• Managers will formulate strategies and allocate resources.
• Managers need to exercise responsible leadership for success.
• Managers will innovate services, products and business models

Improving Coordination via MIS

• Companies use online collaboration and social networking to improve coordination, collaboration and knowledge sharing
• More powerful data analytics are providing real-time information
• Virtual meetings reduce travel time and costs while improving collaboration.

Organization's Hierarchy of Authority

• Organizations have a hierarchy of authority and responsibility.
• The hierarchy includes: senior, middle, and operational management.
• The hierarchy includes: knowledge, data, production or service workers.

Contemporary Approach to Information Systems

• The Technical Approach emphasizes mathematically based models for information systems, physical technologies, and formal capabilities.
• The Behavioral Approach is concerned with issues in development and long-term maintenance of systems.

Technical Approach to Info systems

• Focuses on mathematically based models to study and optimize systems
• Focuses on technology and formal system capabilities
• Computer Science covers computability and data storage
• Managment Science covers making decisions and practices
• Operations Research covers optimization for transportation and costs

Behavioral Approach to IS

• Emphasizes behavioral issues in systems development and maintenance
• Concerned with integration, design, implementation, utilization and management
• Sociology - impact on groups and organizations
• Psychology - perception and decision making
• Economics - market dynamics and cost structures.

Sociotechnical Systems Perspective

• Balances technical (IT capabilities) and social (organizational needs) aspects.
• Encourages mutual adaptation between technology, organizations, and individuals.
• Technology must align with user needs and business goals for optimization.

Business Perspective on IT

• IT does not guarentee returns
• The IT system is an instrument of value
• Revenue and Productivity increase
• It is important to have the right business model
• Organizational and management capital is also important

The Business Information Value Chain

• Acquire raw data to transform into information
• Information helps companies increase efficiency and have stronger profits.
• Info systems help with value by improving decision making and performance.
• Organizational and management help to overcome different business challenges

Complementary Assets

• Needed to derive value from a primary investment
• Firms need investments to receive strong returns
• Invest in technology and the people to ensure it works well