1. Prepared by: Jan Wong DIGITAL ManagingInformation Systemsin Organizations ECONOMY

2. The Learning Outcomes At the end of this session you should be able to: The characteristics of the digital economy and e-business DESCRIBE The major pressures in the business environment and their responses IDENTIFY The role of I.T. in supporting the functional areas across industries DESCRIBE

3. The “New” Economy Getting started… KEYWORDS The use of electronic technologies to transact business. Digital Economy E-Business People and Organizations interact, communicate, collaborate and search for information Collaboration Info Exchange Storing, processing and transmission of information.

4. DIGITAL ECONOMY? THE INTERNET

5. OLDVS NEW ECONOMY Taking Photos the OLD way… Purchase film -> Load into camera -> Take pictures -> Process Film -> Pickup Pictures -> Keep in Album / Share with Family and Friends

6. OLD VS NEW ECONOMY Taking Photos the NEW way… 1st Generation -> Sharing can now be done via email 2nd Generation -> Use of digital camera – without film 3rd Generation -> Integrated into mobile devices, instant sharing, etc

7. BUSINESS “method of doing business by which a company can generate revenue to sustain itself” MODEL It tells how a company adds value to create a product or service (value chain) Examples: Nokia – manufactures and sells mobile phones TV Stations – depends on advertisers and content providers Search engines – advertisers and other value added services How about: Dell? Facebook? Ebay?

8. DIGITAL AGE BUSINESS MODELS Name-Your-Own-Price Consumer sets the price, the system tries to match with sellers Reverse Auctions Lowest, best offered deal wins (tendering) Affiliate Marketing Commission basis E-Marketplaces and Exchanges Buying and selling electronically Electronic Aggregation (group purchasing) Higher the quantity, lower the price (B2B)

12. What forces change? 3 DRIVERS OF CHANGE Society Market Technology

13. Organizational Response 5 WAYS to RESPOND E-Commerce Business Alliances Continuous Improvements Strategic Systems Business Process Reengineering

14. THINGS TO TAKE NOTE Understand how is the Digital Economy different from the old Know the importance of a business model Understand why organizations have to change Know what are the 3 drivers of change Understand what are business pressures Know what are the 5 ways organizations can respond with

15. DIGITAL ECONOMY

16. Coming soon… next class I.T: CONCEPTS ManagementInformation Systemsin Organizations & MANAGEMENT what are information systems? how are they all different?

17. IT’S TIME FOR SOME DISCUSSIONS! Discuss the motivation for becoming an e-business How IT made a difference in the old economy? How does the internet enables new business models? Explain why IT is a business pressure and also an enabler of response activities that counter business pressures Why do some information systems fail? Why mass customization is desirable?