Informatics Class 2

Digital Economy

digital economy and e-business.
2 Recognize the relationships between

business pressures, organizational responses, and information systems.
3 Identify the major pressures in the business environment and describe the major organizational responses to them.
4 Define computer-based information systems and information technology.
5 Describe the role of information technology in supporting the functional areas, public services and specific industries
6 List the new technology development in the areas of generic and networked computing and Web-based systems.
7 Understand the importance of learning about information technology.

to transact business.
Collaboration: People and Organizations interact, communicate, collaborate and

search for information
Information Exchange: Storing, processing and transmission of information.

Platform concept“

store
Load your camera
Take pictures
Take roll of film to store for

processing
Pickup the film when ready
Select specific photos for enlargement
Mail to family and friends

economy except 6 and 7 were replaced by using a

scanner and emailing
2nd Generation Digital Photography
Use a Digital Camera, no film, no processing.
3rd Generation Digital Photography
Your Digital Camera is now your mobile phone, in your binoculars or a palmtop computer.

by which a company can generate revenue to sustain itself.

The model spells out how the company adds value to create a product or service. (Value- add Chain model )
Apple makes and sells smart phones
A TV station provides free broadcasting. Its survival depends on a complex model involving advertisers and content providers.
Internet portals, such as Yandex, use a complex business model.

Changing

aggregation (buying groups)

factors are creating a highly competitive business environment ; these

factors or forces can change quickly, sometimes in an unpredictable manner.

Therefore, companies need to react frequently and quickly to both the threats and the opportunities resulting from this new business environment. A response can be a reaction to a pressure already in existence, an initiative intended to defend an organization against future pressures, or an activity that exploits an opportunity created by changing conditions.

Business Pressures

Business Critical Response Activities

force change.
Market
Technology
Society

Efficiency
Restructuring business processes
Manufacturer to order
Customer Focus Strategy
Employ E-business tools
Business Alliances
Technology

is required to effectively implement these critical responses.

and disseminates information for a specific purpose. Like any other

system, an information system includes inputs (data, instructions) and outputs (reports, calculations). It processes the inputs by using technology such as PCs and produces outputs that are sent to users or to other systems via electronic networks and a feedback mechanism that controls the operation.

Input

Output

Process

Feedback

Control

promoting products
Determine prices for products

the sale
1-2 year sales forecast

components to produce
New production facilities
Generate the work order

delivery mismatches
Generate the purchase order

labor requirements
Tracking vacation, sick,
Track employee skills
Interviewing employees

Law, his prediction was that the processing power of silicon

chips would double every 18 months.
According to McGarvey & tenornetworks.com, states that the performance of optical communication networks is growing by a factor of 10 every three years
Several new devices and methods to increase storage capacity price performance
Object technology enables the development of self-contained units of software that can be shared
Networked and distributed computing is emerging rapidly Metcalfe’s Law.

Computing and M-Commerce
Wireless networks
Ubiquitous Computing
Smart Devices

& Extranets
The Internet
The Networked Enterprise

in your chosen career if you understand how successful information

systems are built, used, and managed.
You also will be more effective if you know how to recognize and avoid unsuccessful systems and failures.
Developing “Computer” Literacy will only enhance your “Information” Literacy

Who will build, operate, and maintain the information systems. This

is a critical issue because management wants to minimize the cost of IT while maximizing its benefits. Some alternatives are to outsource portions, or even all, of the IT activities, and to divide the remaining work between the IS department and the end users.
How much IT? This is a critical issue related to IT planning. IT does not come free, but not having it may be much costlier.
How important is IT? In some cases, IT is the only approach that can help organizations. As time passes, the comparative advantage of IT increases.
Is the situation going to change? Yes, the pressures will be stronger as time passes. Therefore, the IT role will be even more important.
Globalization. Global competition will have an impact on many companies. However, globalization opens many opportunities, ranging from selling and buying products and services online in foreign markets, to conducting joint ventures or investing in them. IT supports communications, collaboration, and discovery of information regarding all the above.

IT involves many ethical and social issues that are constantly

changing due to new developments in technologies and environments. These topics should be examined any time an IT project is undertaken.
Transforming the organization to the digital economy. The transformation can be done on several fronts. Management should study the opportunities, consider alternatives and prioritize them.