Improving Performance in the Digital Economy

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Chapter 15


Impact of IT on Enterprises, Users,

and the Environment


Information Technology for Management

Improving Performance in the Digital Economy


7
th

edition

John Wiley & Sons, Inc.


Slides contributed by Dr. Sandra Reid

Chair, Graduate School of Business & Professor, Technology

Dallas Baptist University

Turban and Volonino

15
-
1

Copyright 2010 John Wiley & Sons, Inc.

Chapter Outline


15.1 New and Accelerating Trends in IT


15.2 Current Perspectives on the Enterprise
Web 2.0


15.3 Operating Greener Businesses and Eco
-
Friendly Data Centers


15.4 Impacts of Too Much Information and
Connectivity


15.4 Managerial Issues

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Copyright 2010 John Wiley & Sons, Inc.

Learning Objectives

1.
Recognize trends in IT that are affecting business
processes, competition, and workers.

2.
Describe ways that IT can help conserve natural
resources and protect the environment.

3.
Identify key uses of Web 2.0 technologies that
gave rise to the concept of Enterprise 2.0.

4.
Understand green business practices and data
center designs.



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Copyright 2010 John Wiley & Sons, Inc.

Learning Objectives


cont’d

5. Understand the complexity of the effects of
technological progress on labor markets and
individual employees.

6.
Discuss the impacts of IT on the quality of life
and interpersonal relationships.

7.
Recognize the physical and emotional issues
related to the proliferation of IT.


Copyright 2010 John Wiley & Sons, Inc.

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Copyright 2010 John Wiley & Sons, Inc.

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Figure IT7eU


Figure 15.1

Copyright 2010 John Wiley & Sons, Inc.

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The Center for Nanoscale Materials’ nanoscope, the world’s most powerful X
-
ray microscope. (Courtesy of U.S. Department of Energy’s Argonne National
Laboratory.)


Problems



lab & computing facilities needed
extensive processing power which would
consume huge amounts of energy & generate
extreme heat.


Solution



high performance computer cluster
with Intel processors.


Results



computing infrastructure delivers
computing power & data transfer rate required to
capture & analyze large amounts of data in real
time.

Copyright 2010 John Wiley & Sons, Inc.

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Copyright 2010 John Wiley & Sons, Inc.

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15.1 New and Accelerating Trends in IT

Kurzweil’s Law of Accelerating Returns


During this century, there will be roughly
20,000 years of progress based on today’s
rate.


Equivalent of 4,000 years of technological
advancement will occur from 2000 to 2010.


By 2020, we will have workable artificially
intelligent brain that can recognize patterns
the way human brains do.

Copyright 2010 John Wiley & Sons, Inc.

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The Law of Accelerating Returns

by


Ray
Kurzweil


Robotics


Engaged in sports, war, medicine, business,
entertainment, leisure & home care.


Nanobots will be highly intelligent & make
smart decisions in many areas of applications.


Increasingly substitute for humans.


U.S. Department of Defense is working on
creating robot armies that will operate
autonomously.


Copyright 2010 John Wiley & Sons, Inc.

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Robotics


cont’d


IBM Consulting uses software programs that
choose & allocate resources for projects
better & faster than humans can.


Cisco is using software programs to replace
humans in HR, finance, customer services &
other staff areas.

Copyright 2010 John Wiley & Sons, Inc.

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Quantum Leaps Driven by IT


In mid
-
1990s


emerged the Web, with it the
Internet & e
-
commerce; enterprise
information systems such as CRM, SCM & ERP
developed to improve performance.


End
-
user driven technologies such as Web 2.0
and social networking, & social media.


Shift away from centralized IT to business
units & giving consumers an active role via
social marketing & feedback.

Copyright 2010 John Wiley & Sons, Inc.

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Telemedicine & Telehealth


Telemedicine or telehealth technologies will help in
increasing number of patients who physicians treat
remotely & in lowering costs & travel times associated
with treatment.


Telemedicine is use of telecommunication networks to
provide medical information & services.


Telehealth is use of electronic information &
telecommunications technologies to support
preventative & curative long
-
distance clinical health
care, education, public health & health administration.


Patients may be monitored remotely.

Copyright 2010 John Wiley & Sons, Inc.

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Mobile Technology in Medicine


Allows specialist to triage, diagnose, &
monitor remote medical cases by viewing data
& images conveyed wirelessly to their
locations.


Allows access to medical records & reference
materials related to a specific patient’s case.

Copyright 2010 John Wiley & Sons, Inc.

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Urban Planning with Wireless Sensor Networks


Adverse effects associated with traffic congestion
can be alleviated with deployment of sensors &
wireless networks.


System will alert drivers to empty parking spaces.


IT solutions will have series of positive effects on
transportation, economy & environment.


Dozen major cities are in discussions currently
with technology companies to deploy smart
parking systems.

Copyright 2010 John Wiley & Sons, Inc.

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Offshore Outsourcing


Software development & call center operations are
most prevalent.


Expanding into such activities as processing insurance
claims, transcribing medical records, engineering &
design work, financial analysis, market research among
others.


Concerns surrounding identity theft & privacy issues
with confidential data. Standards in one country may
vary extensively with the contracted offshore country.


Ethical issues continue to be of major concern to U.S.
workers.


Copyright 2010 John Wiley & Sons, Inc.

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Business Process Outsourcing


Entire business processes are being outsourced
to greater extents similar to way manufacturing
has been outsourced for decades.


BPO is process of hiring another company to
handle business activities. Distinct from IT
outsourcing which focuses on hiring third
-
party
company or provider to do IT
-
related activities
such as application management & development,
data center operations, or testing & quality
assurance.

Copyright 2010 John Wiley & Sons, Inc.

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Article for more
-

BPO
-

What is Business Process Outsourcing?


SOA Delivery Models


SOA is infrastructure in which software
applications are broken into modular
components called services.


Example
-

Installing an SOA helped NYC
-
based
Coty, Inc., accomplish 3 major business goals
in less than 6 months: absorb IT infrastructure
of newly acquired company; connect to new
procurement system; & to implement new
SAP system in Western Europe.

Copyright 2010 John Wiley & Sons, Inc.

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Article for more
-

The future of SOA
--

A service
-
based delivery
model with Web 2.0 capabilities


Copyright 2010 John Wiley & Sons, Inc.

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15.2 Current Perspectives on the Enterprise
Web 2.0

Enterprise 2.0 & What It Can Do For You


Began as a way to collaborate using blogs, or
comment forums, within companies, or
between, & with partners or customers.


Builds business intelligence. KM becomes
more decentralized.


Provides users with critical customer
information instantly.


Real
-
time, secure access to business
performance information on mobile devices.

Copyright 2010 John Wiley & Sons, Inc.

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Presence, Location & Privacy


Social networking capability such as IM on
facebook enables users to know when friends are
online. iPhone built
-
in location awareness
capabilities expand the concept to exact physical
location.


Provides audit trail to track people’s movements.


Many privacy & legal issues arise when harm
results from so much awareness & connectivity.

Copyright 2010 John Wiley & Sons, Inc.

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Copyright 2010 John Wiley & Sons, Inc.

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15.3 Operating Greener Businesses
and Eco
-
Friendly Data Centers

Green Computing


Enterprises Need To…


Identify desktops to virtualize. Results in savings
in energy, space & recycling.
Video

on
virtualization.


Identify & turn off unused computers.


Enable power management features.


Replace old technologies


Institute green supply chain to include
procurement, manufacturing, warehousing,
distribution, etc.

Copyright 2010 John Wiley & Sons, Inc.

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Global Green Initiatives


RoHS Directive in European Union


restricts
use of certain hazardous substances in
electrical & electronic equipment. China has
passed its own initiative to RoHS legislation.


California’s Electronic Waste Recycling Act


prohibits sale of electronic devices banned by
EU’s RoHS.


States have enacted mercury & PBDE bans.

Copyright 2010 John Wiley & Sons, Inc.

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Table 15.1

Copyright 2010 John Wiley & Sons, Inc.

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Copyright 2010 John Wiley & Sons, Inc.

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15.4 Impacts of Too Much Information
and Connectivity

Information Overload


Huge amounts of data can be collected almost
instantly.


Possible to penetrate virtually every barrier.


Intelligent software to process data.


Exponential increase in speed.

Copyright 2010 John Wiley & Sons, Inc.

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Information Quality


Mandated by Data Quality Act of 2001 &
Sarbanes
-
Oxley Act of 2002.

(
Summary of the Provisions of the Sarbanes
-
Oxley Act of 2002
)


Acts make CEO & CFO personally responsible &
liable for quality of financial information that
firms release to stockholders or file with SEC.


Lots of relevant & important data may be
omitted.

Copyright 2010 John Wiley & Sons, Inc.

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Spam


Indiscriminately broadcasting unsolicited
messages via e
-
mail & over Internet.


Cost U.S. businesses $42 billion in 2008; $140
billion worldwide in 2008 .


Lowers productivity by employees who have
to deal with these unwanted messages.


Anti
-
green as it wastes computing power.


Profitable to originators.

Copyright 2010 John Wiley & Sons, Inc.

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Table 15.2

Copyright 2010 John Wiley & Sons, Inc.

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Dehumanization & Other Psychological Impacts


Many feel loss of identity.


Many have increased productivity.


Many have created personalization through
blogs & wikis.


May cause depression & loneliness due to
isolation.


May damage social, moral & cognitive
development of school
-
age children.

Copyright 2010 John Wiley & Sons, Inc.

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Impacts on Health & Safety


Job stress can occur with demand for
increased productivity. Managers must
provide training, redistribute workload & add
employees.


Carpal Tunnel Syndrome may become
increasingly common, but may be diminished
with ergonomically well designed equipment.

Copyright 2010 John Wiley & Sons, Inc.

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Table 15.3

Copyright 2010 John Wiley & Sons, Inc.

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Copyright 2010 John Wiley & Sons, Inc.

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15.5 Managerial Issues

Managerial Issues


Offshore IT & business process outsourcing


legal & ethical considerations as well as
impact upon morale.


Managing & evaluating nonpresent workers


may save billions of gallons & dollars
associated with fuel. Requires
communications & secure network
connections. Effective performance
evaluations is different yet critical.

Copyright 2010 John Wiley & Sons, Inc.

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Managerial Issues


cont’d


Information overload


stress can negatively
impact employees & productivity. Greater
investment in filtering software, DSS & expert
systems may help.


High quality information


critical to business
operations. Governed by regulations such as
Sarbanes
-
Oxley Act.


Displacement of employees with IT


potentially
disruptive technologies that may displace.

Copyright 2010 John Wiley & Sons, Inc.

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Managerial Issues


cont’d


Electronic surveillance


may reduce exposure
to crime, but may result in employee
resentment. May erode individual privacy.


Social & ethical


lack of common framework
for deciding what is & what is not ethical.
Globalization & Internet may undermine
moral responsibility.

Copyright 2010 John Wiley & Sons, Inc.

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Copyright 2010 John Wiley & Sons, Inc.

All rights reserved. Reproduction or translation of
this work beyond that permitted in section 117 of
the 1976 United States Copyright Act without
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unlawful. Request for further information should
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John Wiley & Sons, Inc. The purchaser may make
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-
up copies for his/her own use only and not
for distribution or resale. The Publisher assumes
no responsibility for errors, omissions, or
damages caused by the use of these programs or
from the use of the Information herein.

Copyright 2010 John Wiley & Sons, Inc.

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