n INFORMATION AGE – where fortunes spring

from innovative ideas and the clever use of

information
n Business in the Information Age must
compete in challenging market place – one
that is rapidly changing, complex, global,
hyper competitive and customer-focused.
you have to compete in these challenging markets

SISBUSI Course Notes of Dr. H. Ong

n Business Environment – it refers to the
combination of social. Legal economics and
physical factors that affected business
activities
Ex. Many companies restructured their
organizations.

SISBUSI Course Notes of Dr. H. Ong

Ex. Blades Board & Skate Company
- A retailer of ice and inline skates &
snowboards based in New York City.
<The business problem>
- From 1990 to1996, the retailer grew from a
Single Manhattan location to eight stores in
New York City & New Jersey.
- In 1997, the company planned to nearly
double its number of stores and expand to
Boston & Chicago
- The business needs to instantly track sales
and inventory at all of its store.
SISBUSI Course Notes of Dr. H. Ong
<IT Solution>
- Executive at headquarters could keep up with
sales and inventory at all location while each
store would track its own such data
- It uses a specialized software to record
transactional data such as the stock numbers
of item sold, cost, time of sale, and often
customer info.
- - it could help retailers cut costs, increase
profits and serve customers better by making
the most of sales information.
SISBUSI Course Notes of Dr. H. Ong
 <The Results>
- Inventory Control is the key feature for an
expanding business.
- Information can be distributed throughout the
organization (and with allied organizations)
giving knowledge and insight for competitive
decision making and strategic advantage.
ex. shopping -sales information - network and
centralized(increase profits, cuts costs and customer service

SISBUSI Course Notes of Dr. H. Ong

Business Pressures
The business environment in the Information
Age places many pressures or companies.

Firms may respond reactively to a pressure

already in existence, or proactively to an
anticipated pressure.

SISBUSI Course Notes of Dr. H. Ong

 Company responses are typically facilitated to
IT IT is SOMETIMES the solution
• Information Technology – hardware and
software that performs data processing tasks
such as capturing, transmitting, storing,
retrieving, manipulating or displaying data.
• Info Tech is the only solution to business
pressures.
- which are the individual components that
are typically organized into CBIS.
SISBUSI Course Notes of Dr. H. Ong
Business Pressures, Organizational
Responses, and IT Support

outside-pressures
inside - responses

beige/orange-market
red- technology
blue-societal, legal,

SISBUSI Course Notes of Dr. H. Ong

yellow- responses
Business Pressures, Organizational
Responses, and IT Support
Business Pressures
n Market Pressures – are generated by the
global economy and strong competition, the
changing nature of the workforce, and
powerful customer.
n Technology Pressures – consists of those
pressures related to technology
n Societal Pressures – societal, political and
legal aspects

SISBUSI Course Notes of Dr. H. Ong

 Market Pressures

The Global Economy and

Strong Competition

The Changing Nature of the Workforce

Powerful Customers

SISBUSI Course Notes of Dr. H. Ong

 Market Pressures

(1) Global competition for market and for

labor
à Globalization created by a better
telecommunications system has increased
competition for market share and labor
resources.
à Global competition is especially
intensified when governments become
involved through the use of subsidies, tax
policies and import / export regulations
and incentives.
SISBUSI Course Notes of Dr. H. Ong
 Market Pressures
CDR KIng - shift out or shift up (they shift out)
manual vs automated

(2) Need for real-time operations

à Companies in the Information Age no
longer have the luxury of “information
float”
à High-performance telecommunication
technologies can reduce time lag.
Ex. Slow, paper-based, mail-based
transaction and processes are a thing of
the past.
SISBUSI Course Notes of Dr. H. Ong
 Market Pressures

(3) Changing Work Force

- work force is changing rapidly and
becoming more diversified
Ex. More organization are becoming
transnational.
SOHO
Managerial complexity accompanies
growing cultural complexity.
SISBUSI Course Notes of Dr. H. Ong
 Market Pressures

(4) Customer Orientation

Customers ultimately want products “free,
perfect, and now”. These expectations
translate into the need for organizations
demonstrate a customer orientation.
Ex. Customers are demanding even more
detailed information about products
and services.
Customers wants products and services
with high quality and low cost.
SISBUSI Course Notes of Dr. H. Ong
Technology Pressures

n Technological Innovation and Obsolescence

n Information Overload

SISBUSI Course Notes of Dr. H. Ong

Technology Pressures

(5) Technological innovations and

obsolescence
- continuing innovation with computer
technologies
Ex. Means faster obsolescence of
products, shorter life cycles, and
increasing quality standards

SISBUSI Course Notes of Dr. H. Ong

 Technological Innovation and Obsolescence

Obsolescence: Slide Rule

Innovation: Early calculator

SISBUSI Course Notes of Dr. H. Ong
Technological Innovation and Obsolescence
(continued)

Innovation: Telegraph

Obsolescence: Pony Express

SISBUSI Course Notes of Dr. H. Ong
Technological Innovation and Obsolescence
(continued)

Innovation: iPod nano Obsolescence: old phonograph

SISBUSI Course Notes of Dr. H. Ong

Technological Innovation and Obsolescence
(continued)

Innovation:
digital camera

Innovation: “Credit
card” digital camera
Obsolescence: old
analog camera
SISBUSI Course Notes of Dr. H. Ong
Technological Innovation and Obsolescence
(continued)

Obsolescence:
Horse and Buggy

Innovation: Ford Model T

SISBUSI Course Notes of Dr. H. Ong

Technological Innovation and Obsolescence
(continued)

Obsolescence: Manual
typewriter

Innovation: Notebook
computer with word
processing software

SISBUSI Course Notes of Dr. H. Ong

 (6) Information Overload
Information and knowledge that is generated and
stored inside organizations are also increasing
exponentially.
Ex. Internet and other telecommunication networks
increase the amount of information available to
organization and individual.
Managers are at a risk of “analysis paralysis” –
bombarded with so much potentially useful
info. That they feel compelled to consider vast
amounts of it before taking action.
Too much of a good thing
5 to 10% of Internet users have the potential
for an addiction problem. (break-up
marriage, online obsession with MUD
(Multi-User SISBUSI
Dimension)
Course Notes of Dr. H.games.
Ong
Information Overload

SISBUSI Course Notes of Dr. H. Ong

 Societal Pressures

n Social Responsibility
n Government Regulation and Deregulation
n Protection Against Terrorist Attacks
n Ethical Issues

SISBUSI Course Notes of Dr. H. Ong