413TeChnology as a vaRiable anD Responsive oRganiz.docx

41
3
TeChnology as a
vaRiable anD Responsive
oRganizaTional Dynamism
Introduction
This chapter focuses on defining the components of technology
and
how they affect corporate organizations. In other words, if we
step
back momentarily from the specific challenges that information
tech-
nology (IT) poses, we might ask the following: What are the
generic
aspects of technology that have made it an integral part of
strategic and
competitive advantage for many organizations? How do
organizations
respond to these generic aspects as catalysts of change?
Furthermore,
how do we objectively view the role of technology in this
context, and
how should organizations adjust to its short- and long-term
impacts?
Technological Dynamism
To begin, technology can be regarded as a variable, independent

of others, that contributes to the life of a business operation. It
is
capable of producing an overall, totalizing, yet distinctive,
effect on
organizations— it has the unique capacity to create
accelerations of
corporate events in an unpredictable way. Technology, in its
aspect of
unpredictability, is necessarily a variable, and in its capacity as
accel-
erator— its tendency to produce change or advance— it is
dynamic.
My contention is that, as a dynamic kind of variable,
technology, via
responsive handling or management, can be tapped to play a
special
role in organizational development. It can be pressed into
service as
the dynamic catalyst that helps bring organizations to maturity
in
dealing not only with new technological quandaries, but also
with
other agents of change. Change generates new knowledge,
which in
turn requires a structure of learning that should, if managed
properly,
42 INFORMATION TECHNOLOGY
result in transformative behavior, supporting the continued
evolution
of organizational culture. Specifically, technology speeds up
events,
such as the expectation of getting a response to an e-mail, and

requires
organizations to respond to them in ever-quickening time
frames.
Such events are not as predictable as those experienced by
individuals
in organizations prior to the advent of new technologies—
particu-
larly with the meteoric advance of the Internet. In viewing
technology
then as a dynamic variable, and one that requires systemic and
cul-
tural organizational change, we may regard it as an inherent,
internal
driving force— a form of technological dynamism.
Dynamism is defined as a process or mechanism responsible for
the
development or motion of a system. Technological dynamism
charac-
terizes the unpredictable and accelerated ways in which
technology,
specifically, can change strategic planning and organizational
behav-
ior/culture. This change is based on the acceleration of events
and
interactions within organizations, which in turn create the need
to
better empower individuals and departments. Another way of
under-
standing technological dynamism is to think of it as an internal
drive
recognized by the symptoms it produces. The new events and
interac-
tions brought about by technology are symptoms of the
dynamism
that technology manifests. The next section discusses how

organiza-
tions can begin to make this inherent dynamism work in their
favor
on different levels.
Responsive Organizational Dynamism
The technological dynamism at work in organizations has the
power
to disrupt any antecedent sense of comfortable equilibrium or an
unwelcome sense of stasis. It also upsets the balance among the
vari-
ous factors and relationships that pertain to the question of how
we
might integrate new technologies into the business— a question
of
what we will call strategic integration— and how we assimilate
the cul-
tural changes they bring about organizationally— a question of
what
we call cultural assimilation. Managing the dynamism,
therefore, is a
way of managing the effects of technology. I propose that these
orga-
nizational ripples, these precipitous events and interactions, can
be
addressed in specific ways at the organizational management
level.
The set of integrative responses to the challenges raised by
technology
43teChnoloGY As A vArIAble And responsIve
is what I am calling responsive organizational dynamism,

which will
also receive further explication in the next few chapters. For
now, we
need to elaborate the two distinct categories that present
themselves
in response to technological dynamism: strategic integration and
cul-
tural assimilation. Figure 3.1 diagrams the relationships.
Strategic Integration
Strategic integration is a process that addresses the business-
strategic
impact of technology on organizational processes. That is, the
business-strategic impact of technology requires immediate
orga-
nizational responses and in some instances zero latency.
Strategic
integration recognizes the need to scale resources across
traditional
business– geographic boundaries, to redefine the value chain in
the
life cycle of a product or service line, and generally to foster
more
agile business processes (Murphy, 2002). Strategic integration,
then,
Technology as an
independent
variable
Creates
Organizational
dynamism

Acceleration of events that
require different
infrastructures and
organizational processes
Requires
Strategic
integration
Cultural
assimilation
Symptoms and
implications
Figure 3.1 Responsive organizational dynamism.
is a way to address the changing requirements of business
processes
caused by the sharp increases in uses of technology. Evolving
tech-
nologies have become catalysts for competitive initiatives that
create
new and different ways to determine successful business
investment.
Thus, there is a dynamic business variable that drives the need
for
technology infrastructures capable of greater flexibility and of
exhib-

iting greater integration with all business operations.
Historically, organizational experiences with IT investment
have
resulted in two phases of measured returns. The first phase
often
shows negative or declining productivity as a result of the
investment;
in the second phase, we often see a lagging of, although
eventual
return to, productivity. The lack of returns in the first phase has
been
attributed to the nature of the early stages of technology
exploration
and experimentation, which tend to slow the process of
organizational
adaptation to technology. The production phase then lags behind
the ability of the organization to integrate new technologies
with
its existing processes. Another complication posed by
technological
dynamism via the process of strategic integration is a
phenomenon we
can call factors of multiplicity — essentially, what happens
when several
new technology opportunities overlap and create myriad
projects that
are in various phases of their developmental life cycle.
Furthermore,
the problem is compounded by lagging returns in productivity,
which
are complicated to track and to represent to management. Thus,
it is
important that organizations find ways to shorten the period
between
investment and technology’ s effective deployment. Murphy

(2002)
identifies several factors that are critical to bridging this delta:
1. Identifying the processes that can provide acceptable
business
returns from new technological investments
2. Establishing methodologies that can determine these
processes
3. Finding ways to actually perform and realize expected
benefits
4. Integrating IT projects with other projects
5. Adjusting project objectives when changes in the business
require them
Technology complicates these actions, making them more
difficult
to resolve; hence the need to manage the complications. To
tackle
these compounded concerns, strategic integration can shorten
life
cycle maturation by focusing on the following integrating
factors:
• Addressing the weaknesses in management organizations in
terms of how to deal with new technologies, and how to bet-
ter realize business benefits
• Providing a mechanism that both enables organizations to
deal with accelerated change caused by technological innova-
tions and integrates them into a new cycle of processing and

handling change
• Providing a strategic learning framework by which every new
technology variable adds to organizational knowledge, par-
ticularly using reflective practices (see Chapter 4)
• Establishing an integrated approach that ties technology
accountability to other measurable outcomes using organiza-
tional learning techniques and theories
To realize these objectives, organizations must be able to
• Create dynamic internal processes that can function on a
daily basis to deal with understanding the potential fit of new
technologies and their overall value to the business
• Provide the discourse to bridge the gaps between IT- and
non-IT-related investments and uses into an integrated system
• Monitor investments and determine modifications to the life
cycle
• Implement various organizational learning practices, includ-
ing learning organization, knowledge management, change
management, and communities of practice, all of which help
foster strategic thinking and learning that can be linked to
performance (Gephardt & Marsick, 2003)
Another important aspect of strategic integration is what
Murphy
(2002) calls “ consequential interoperability,” in which “ the
conse-
quences of a business process” are understood to “ dynamically
trigger
integration” (p. 31). This integration occurs in what he calls
the five

pillars of benefits realization:
1. Strategic alignment: The alignment of IT strategically with
business goals and objectives.
2. Business process impact: The impact on the need for the
organi-
zation to redesign business processes and integrate them with
new technologies.
3. Architecture: The actual technological integration of appli-
cations, databases, and networks to facilitate and support
implementation.
4. Payback: The basis for computing return on investment
(ROI)
from both direct and indirect perspectives.
5. Risk: Identifying the exposure for underachievement or fail-
ure in the technology investment.
Murphy’ s (2002) pillars are useful in helping us understand
how
technology can engender the need for responsive organizational
dyna-
mism (ROD), especially as it bears on issues of strategic
integration.
They also help us understand what becomes the strategic
integration
component of ROD. His theory on strategic alignment and
business
process impact supports the notion that IT will increasingly

serve as an
undergirding force, one that will drive enterprise growth by
identify-
ing the initiators (such as e-business on the Internet) that best
fit busi-
ness goals. Many of these initiators will be accelerated by the
growing
use of e-business, which becomes the very driver of many new
market
realignments. This e-business realignment will require the
ongoing
involvement of executives, business managers, and IT
managers. In
fact, the Gartner Group forecasted that 70% of new software
applica-
tion investments and 5% of new infrastructure expenditures by
2005
would be driven by e-business. Indeed, this has occurred and
contin-
ues to expand.
The combination of evolving business drivers with accelerated
and
changing customer demands has created a business revolution
that
best defines the imperative of the strategic integration
component of
ROD. The changing and accelerated way businesses deal with
their
customers and vendors requires a new strategic integration to
become
a reality rather than remain a concept discussed but affecting
little
action. Without action directed toward new strategic
integration,
organizations would lose competitive advantage, which would

affect
profits. Most experts see e-business as the mechanism that will
ulti-
mately require the integrated business processes to be realigned,
thus
providing value to customers and modifying the customer–
vendor
relationship. The driving force behind this realignment
emanates from
the Internet, which serves as the principle accelerator of the
change
in transactions across all businesses. The general need to
optimize
resources forces organizations to rethink and to realign business
pro-
cesses to gain access to new business markets.
Murphy’ s (2002) pillar of architecture brings out yet another
aspect
of ROD. By architecture we mean the focus on the effects that
technol-
ogy has on existing computer applications or legacy systems
(old exist-
ing systems). Technology requires existing IT systems to be
modified
or replacement systems to be created that will mirror the new
busi-
ness realignments. These changes respond to the forces of
strategic
integration and require business process reengineering (BPR)
activi-

ties, which represent the reevaluation of existing systems based
on
changing business requirements. It is important to keep in mind
the
acceleration factors of technology and to recognize the amount
of
organizational effort and time that such projects take to
complete. We
must ask the following question: How might organizations
respond to
these continual requirements to modify existing processes? I
discuss
in other chapters how ROD represents the answer to this
question.
Murphy’ s (2002) pillar of direct return is somewhat limited and
nar-
row because not all IT value can be associated with direct
returns, but
it is important to discuss. Technology acceleration is forcing
organiza-
tions to deal with broader issues surrounding what represents a
return
from an investment. The value of strategic integration relies
heavily on
the ability of technology to encapsulate itself within other
departments
where it ultimately provides the value. We show in Chapter 4
that
this issue also has significance in organizational formation.
What this
means is simply that value can be best determined within
individual
business units at the microlevel and that these appropriate-level
busi-
ness units also need to make the case for why certain

investments need
to be pursued. There are also paybacks that are indirect; for
example,
Lucas (1999) demonstrates that many technology investments
are non-
monetary. The IT department (among others) becomes
susceptible to
great scrutiny and subject to budgetary cutbacks during
economically
difficult times. This does not suggest that IT “ hide” itself but
rather
that its investment be integrated within the unit where it
provides the
most benefit. Notwithstanding the challenge to map IT
expenditures
to their related unit, there are always expenses that are central
to all
departments, such as e-mail and network infrastructure. These
types
of expenses can rarely provide direct returns and are typically
allocated
across departments as a cost of doing business.
Because of the increased number of technology opportuni-
ties, Murphy’ s (2002) risk pillar must be a key part of strategic
integration. The concept of risk assessment is not new to an
organiza-
tion; however, it is somewhat misunderstood as it relates to
technology
assessment. Technology assessment, because of the acceleration
factor,
must be embedded within the strategic decision-making process.

This
can only be accomplished by having an understanding of how to
align
technology opportunities for business change and by
understanding
the cost of forgoing the opportunity as well as the cost of delays
in
delivery. Many organizations use risk assessment in an
unstructured
way, which does not provide a consistent framework to
dynamically
deal with emerging technologies. Furthermore, such assessment
needs
to be managed at all levels in the organization as opposed to
being an
event-driven activity controlled only by executives.
Summary
Strategic integration represents the objective of dealing with
emerg-
ing technologies on a regular basis. It is an outcome of ROD,
and it
requires organizations to deal with a variable, that forces
acceleration
of decisions in an unpredictable fashion. Strategic integration
would
require businesses to realign the ways in which they include
technol-
ogy in strategic decision making.
Cultural Assimilation
Cultural assimilation is a process that focuses on the
organizational
aspects of how technology is internally organized, including the

role
of the IT department, and how it is assimilated within the
organiza-
tion as a whole. The inherent, contemporary reality of
technologi-
cal dynamism requires not only strategic but also cultural
change.
This reality demands that IT organizations connect to all aspects
of
the business. Such affiliation would foster a more interactive
culture
rather than one that is regimented and linear, as is too often the
case.
An interactive culture is one that can respond to emerging
technology
decisions in an optimally informed way, and one that
understands the
impact on business performance.
The kind of cultural assimilation elicited by technological dyna-
mism and formalized in ROD is divided into two subcategories:
the
study of how the IT organization relates and communicates with
“ others,” and the actual displacement or movement of
traditional
IT staff from an isolated “ core” structure to a firm-wide,
integrated
framework.
IT Organization Communications with “ Others”
The Ravell case study shows us the limitations and

consequences of
an isolated IT department operating within an organization. The
case
study shows that the isolation of a group can lead to
marginalization,
which results in the kind of organization in which not all
individuals
can participate in decision making and implementation, even
though
such individuals have important knowledge and value.
Technological
dynamism is forcing IT departments to rethink their strategic
posi-
tion within the organizational structure of their firm. No longer
can
IT be a stand-alone unit designed just to service outside
departments
while maintaining its separate identity. The acceleration factors
of
technology require more dynamic activity within and among
depart-
ments, which cannot be accomplished through discrete
communica-
tions between groups. Instead, the need for diverse groups to
engage
in more integrated discourse, and to share varying levels of
techno-
logical knowledge, as well as business-end perspectives,
requires new
organizational structures that will of necessity give birth to a
new
and evolving business— social culture. Indeed, the need to
assimilate
technology creates a transformative effect on organizational
cultures,
the way they are formed and re-formed, and what they will need

from
IT personnel.
Movement of Traditional IT Staff
To facilitate cultural assimilation from an IT perspective, IT
must
become better integrated with non-IT personnel. This form of
inte-
gration can require the actual movement of IT staff into other
depart-
ments, which begins the process of a true assimilation of
resources
among business units. While this may seem like the elimination
of
the integrity or identity of IT, such a loss is far from the case.
The
elimination of the IT department is not at all what is called for
here;
on the contrary, the IT department is critical to the function of
cul-
tural assimilation. However, the IT department may need to be
struc-
tured differently from the way it has been so that it can deal
primarily
with generic infrastructure and support issues, such as e-mail,
net-
work architecture, and security. IT personnel who focus on
business-
specific issues need to become closely aligned with the
appropriate

units so that ROD can be successfully implemented.
Furthermore, we must acknowledge that, given the wide range
of
available knowledge about technology, not all technological
knowl-
edge emanates from the IT department. The question becomes
one of finding the best structure to support a broad assimilation
of
knowledge about any given technology; then, we should ask
how that
knowledge can best be utilized by the organization. There is a
pitfall
in attempting to find a “ standard” IT organizational structure
that
will address the cultural assimilation of technology. Sampler’ s
(1996)
research, and my recent research with chief executives,
confirms that
no such standard structure exists. It is my position that
organizations
must find their own unique blend, using organizational learning
con-
structs. This simply means that the cultural assimilation of IT
may
be unique to the organization. What is then more important for
the
success of organizational development is the process of
assimilation as
opposed to the transplanting of the structure itself.
Today, many departments still operate within “ silos” where
they
are unable to meet the requirements of the dynamic and
unpredictable
nature of technology in the business environment. Traditional

orga-
nizations do not often support the necessary communications
needed
to implement cultural assimilation across business units.
However,
business managers can no longer make decisions without
considering
technology; they will find themselves needing to include IT
staff in
their decision-making processes. On the other hand, IT
departments
can no longer make technology-based decisions without
concerted
efforts toward assimilation (in contrast to occasional partnering
or
project-driven participation) with other business units. This
assimi-
lation becomes mature when new cultures evolve synergistically
as
opposed to just having multiple cultures that attempt to work in
con-
junction with each other. The important lesson from Ravell to
keep
in mind here is that the process of assimilating IT can create
new
cultures that in turn evolve to better support the requirements
estab-
lished by the dynamism of technology.
Eventually, these new cultural formations will not perceive
them-

selves as functioning within an IT or non-IT decision
framework
but rather as operating within a more central business operation
that
understands how to incorporate varying degrees of IT
involvement
as necessary. Thus, organizational cultures will need to fuse
together
to respond to new business opportunities and requirements
brought
about by the ongoing acceleration of technological innovation.
This
was also best evidenced by subsequent events at Ravell. Three
years
after the original case study, it became necessary at Ravell to
inte-
grate one of its business operations with a particular group of
IT staff
members. The IT personnel actually transferred to the business
unit
to maximize the benefits of merging both business and technical
cul-
tures. Interestingly, this business unit is currently undergoing
cultural
assimilation and is developing its own behavioral norms
influenced by
the new IT staff. However, technology decisions within such
groups
are not limited to the IT transferred personnel. IT and non-IT
staff
need to formulate decisions using various organizational
learning
techniques. These techniques are discussed in the next chapter.
Summary

Without appropriate cultural assimilation, organizations tend to
have
staff that “ take shortcuts, [then] the loudest voice will win the
day, ad
hoc decisions will be made, accountabilities lost, and lessons
from suc-
cesses and failures will not become part of ... wisdom”
(Murphy, 2002,
p. 152). As in the case of Ravell Corporation, it is essential,
then, to
provide for consistent governance that fits the profile of the
existing cul-
ture or can establish the need for a new culture. While many
scholars
and managers suggest the need to have a specific entity
responsible for
IT governance, one that is to be placed within the operating
structure
of the organization, such an approach creates a fundamental
problem.
It does not allow staff and managers the opportunity to
assimilate tech-
nologically driven change and understand how to design a
culture that
can operate under ROD. In other words, the issue of governance
is
misinterpreted as a problem of structural positioning or
hierarchy when
it is really one of cultural assimilation. As a result, many
business solu-
tions to technology issues often lean toward the prescriptive,

instead of
the analytical, in addressing the real problem.
Murphy’ s (2002) risk pillar theory offers us another important
component relevant to cultural assimilation. This approach
addresses
the concerns that relate to the creation of risk cultures formed
to deal
with the impact of new systems. New technologies can actually
cause
changes in cultural assimilation by establishing the need to
make cer-
tain changes in job descriptions, power structures, career
prospects,
degree of job security, departmental influence, or ownership of
data.
Each of these potential risks needs to be factored in as an
important
part of considering how best to organize and assimilate
technology
through ROD.
Technology Business Cycle
To better understand technology dynamism, or how technology
acts as
a dynamic variable, it is necessary to define the specific steps
that occur
during its evolution in an organization. The evolution or
business cycle
depicts the sequential steps during the maturation of a new
technology
from feasibility to implementation and through subsequent
evolution.
Table 3.1 shows the five components that comprise the cycle:
feasibil-

ity, measurement, planning, implementation, and evolution.
Table 3.1 Technology Business Cycle
CYCLE COMPONENT COMPONENT DESCRIPTION
Feasibility Understanding how to view and evaluate emerging
technologies, from a
technical and business perspective.
Measurement Dealing with both the direct monetary returns and
indirect nonmonetary
returns; establishing driver and support life cycles.
Planning Understanding how to set up projects, establishing
participation across
multiple layers of management, including operations and
departments.
Implementation Working with the realities of project
management; operating with political
factions, constraints; meeting milestones; dealing with
setbacks; having
the ability to go live with new systems.
Evolution Understanding how acceptance of new technologies
affects cultural
change, and how uses of technology will change as individuals
and
organizations become more knowledgeable about technology,
and
generate new ideas about how it can be used; objective is
established
through organizational dynamism, creating new knowledge and
an
evolving organization.

Feasibility
The stage of feasibility focuses on a number of issues
surrounding
the practicality of implementing a specific technology.
Feasibility
addresses the ability to deliver a product when it is needed in
com-
parison to the time it takes to develop it. Risk also plays a role
in
feasibility assessment; of specific concern is the question of
whether
it is possible or probable that the product will become obsolete
before
completion. Cost is certainly a huge factor, but viewed at a “
high
level” (i.e., at a general cost range), and it is usually geared
toward
meeting the expected ROI of a firm. The feasibility process
must be
one that incorporates individuals in a way that allows them to
respond
to the accelerated and dynamic process brought forth by
technological
innovations.
Measurement
Measurement is the process of understanding how an investment
in
technology is calculated, particularly in relation to the ROI of

an
organization. The complication with technology and
measurement
is that it is simply not that easy to determine how to calculate
such
a return. This problem comes up in many of the issues discussed
by
Lucas (1999) in his book Information Technology and the
Productivity
Paradox. His work addresses many comprehensive issues,
surround-
ing both monetary and nonmonetary ROI, as well as direct ver-
sus indirect allocation of IT costs. Aside from these issues,
there
is the fact that for many investments in technology the attempt
to
compute ROI may be an inappropriate approach. As stated,
Lucas
offered a “ garbage can” model that advocates trust in the
operational
management of the business and the formation of IT
representatives
into productive teams that can assess new technologies as a
regu-
lar part of business operations. The garbage can is an abstract
con-
cept for allowing individuals a place to suggest innovations
brought
about by technology. The inventory of technology opportunities
needs regular evaluation. Lucas does not really offer an
explana-
tion of exactly how this process should work internally. ROD,
how-
ever, provides the strategic processes and organizational–
cultural
needs that can provide the infrastructure to better understand

and
evaluate the potential benefits from technological innovations
using
the garbage can model. The graphic depiction of the model is
shown
in Figure 3.2.
Planning
Planning requires a defined team of user and IT representatives.
This
appears to be a simple task, but it is more challenging to
understand
how such teams should operate, from whom they need support,
and
what resources they require. Let me be specific. …
Chapter 3: Software
Learning Objectives
Upon successful completion of this chapter, you will be
able to:
• define the term software;
• identify and describe the two primary categories of

software;
• describe the role ERP software plays in an
organization;
• describe cloud computing and its advantages and
disadvantages for use in an organization; and
• define the term open-source and identify its
primary characteristics.
Introduction
The second component of an information system is software, the
set of instructions that tells the hardware what to do. Software
is created by developers through the process of programming
(covered in more detail in Chapter 10). Without software, the
hardware would not be functional.
54 | Chapter 3: Software
Types of Software
Software can be broadly divided into two categories: operating
systems and application software. Operating systems manage

the
hardware and create the interface between the hardware and the
user. Application software performs specific tasks such as word
processing, accounting, database management, video games, or
browsing the web.
Operating Systems
An operating system is first loaded into the computer by the
boot program, then it manages all of the programs in the
computer,
including both programs native to the operating system such as
file and memory management and application software.
Operating
systems provide you with these key functions:
1. managing the hardware resources of the computer;
2. providing the user-interface components;
Chapter 3: Software | 55
Linux Ubuntu desktop
3. providing a platform for software developers to write

applications.
All computing devices require an operating system. The most
popular operating systems for personal computers are:
Microsoft
Windows, Apple’s Mac OS, and various versions of Linux.
Smartphones and tablets run operating systems as well, such as
iOS (Apple), Android (Google), Windows Mobile (Microsoft),
and
Blackberry.
Microsoft provided the first operating system for the IBM-PC,
released in 1981. Their initial venture into a Graphical User
Interface
(GUI) operating system, known as Windows, occurred in 1985.
Today’s Windows 10 supports the 64-bit Intel CPU. Recall that
“64-bit” indicates the size of data that can be moved within the
computer.
Apple introduced the Macintosh computer 1984 with the first
commercially successful GUI. Apple’s operating system for the
Macintosh is known as “Mac OS ” and also uses an Intel CPU

supporting 64-bit processing. Mac OS versions have been
named
after mountains such as El Capitan, Sierra, and High Sierra.
Multitasking, virtual memory, and voice input have become
standard features of both operating systems.
The Linux operating system
is open source, meaning
individual developers are
allowed to make modifications
to the programming code.
Linux is a version of the Unix
operating. Unix runs on large
and expensive minicomputers.
Linux developer Linus Torvalds,
a professor in Finland and the creator of Linux, wanted to find a
way
to make Unix run on less expensive personal computers. Linux
has
many variations and now powers a large percentage of web
servers

in the world.
56 | Information Systems for Business and Beyond (2019)
Sidebar: Why Is Microsoft Software So
Dominant in the Business World?
If you’ve worked in business, you may have noticed that almost
all computers in business run a version of Microsoft Windows.
However, in classrooms from elementary to college, there is
almost
a balance between Macs and PCs. Why has this not extended
into
the business world?
As discussed in Chapter 1, many businesses used IBM
mainframe
computers back in the 1960s and 1970s. When businesses
migrated
to the microcomputer (personal computer) market, they elected
to
stay with IBM and chose the PC. Companies took the safe route,
invested in the Microsoft operating system and in Microsoft
software/applications.

Microsoft soon found itself with the dominant personal
computer
operating system for businesses. As the networked PC began to
replace the mainframe computer, Microsoft developed a network
operating system along with a complete suite of programs
focused
on business users. Today Microsoft Office in its various forms
controls 85% of the market.
1
Application Software
The second major category of software is application software.
1. [1]
Image of Microsoft Excel
Application software is utilized directly today to accomplish a
specific goal such as word processing, calculations on a
spreadsheet, or surfing the Internet using your favorite browser.
The “Killer” App
When a new type of digital

device is invented, there are
generally a small group of
technology enthusiasts who
will purchase it just for the joy
of figuring out how it works. A
“killer” application is one that
becomes so essential that large
numbers of people will buy a
device just to run that application. For the personal computer,
the
killer application was the spreadsheet.
The first spreadsheet was created by an MBA student at Harvard
University who tired of making repeated calculations to
determine
the optimal result on a problem and decided to create a tool that
allowed the user to easily change values and recalculate
formulas.
The result was the spreadsheet. Today’s dominant spreadsheet is
Microsoft Excel which still retains the basic functionality of the
first

spreadsheet.
Productivity Software
Along with the spreadsheet, several other software applications
have become standard tools for the workplace. Known as
productivity software, these programs allow office employees to
complete their daily work efficiently. Many times these
applications
come packaged together, such as in Microsoft’s Office suite.
Here is
a list of some of these applications and their basic functions:
• Word processing Users can create and edit documents using
this class of software. Functions include the ability to type and
edit text, format fonts and paragraphs, as well as add, move,
and delete text throughout the document. Tables and images
can be inserted. Documents can be saved in a variety of
electronic file formats with Microsoft Word’s DOCX being the
most popular. Documents can also be converted to other

formats such as Adobe’s PDF (Portable Document Format) or a
.TXT file.
• Spreadsheet This class of software provides a way to do
numeric calculations and analysis, displaying the result in
charts and graphs. The working area is divided into rows and
columns, where users can enter numbers, text, or formulas. It
is the formulas that make a spreadsheet powerful, allowing the
user to develop complex calculations that can change based on
the numbers entered. The most popular spreadsheet package
is Microsoft Excel, which saves its files in the XLSX format.
• Presentation Users can create slideshow presentations using
this class of software. The slides can be projected, printed, or
distributed to interested parties. Text, images, audio, and
visual can all be added to the slides. Microsoft’s PowerPoint is
the most popular software right now, saving its files in PPTX
format.
• Some office suites include other types of software. For
example, Microsoft Office includes Outlook, its e-mail
package, and OneNote, an information-gathering collaboration

tool. The professional version of Office also includes Microsoft
Access, a database package. (Databases are covered more in
Chapter 4.)
Microsoft popularized the idea of the office-software
productivity
bundle with their release of the Microsoft Office Suite. This
package
continues to dominate the market and most businesses expect
employees to know how to use this software. However, many
competitors to Microsoft Office do exist and are compatible
with
the file formats used by Microsoft (see table below). Microsoft
also
offers a cloud-based version of their office suite named
Microsoft
Office 365. Similar to Google Drive, this suite allows users to
edit
and share documents online utilizing cloud-computing
technology.

Utility Software and Programming Software
Utility software includes programs that allow you to fix or
modify
your computer in some way. Examples include anti-malware
software and programs that totally remove software you no
longer
want installed. These types of software packages were created
to
fill shortcomings in operating systems. Many times a
subsequent
release of an operating system will include these utility
functions as
part of the operating system itself.
Programming software’s purpose is to produce software. Most
of
https://commons.wikimedia.org/wiki/User:Wgsimon
Screen shot of Tableau (click to
enlarge)
these programs provide developers with an environment in
which
they can write the code, test it, and convert/compile it into the

format that can then be run on a computer. This software is
typically
identified as the Integrated Development Environment (IDE)
and is
provided free from the corporation that developed the
programming language that will be used to write the code.
Sidebar: “PowerPointed” to Death
As presentation software has
gained acceptance as the
primary method to formally
present information to a group
or class, the art of giving an
engaging presentation is
becoming rare. Many
presenters now just read the
bullet points in the
presentation and immediately bore those in attendance, who can
already read it for themselves. The real problem is not with
PowerPoint as much as it is with the person creating and

presenting.
Author and chief evangelist Guy Kawasaki has developed the
10/20/
30 rule for Powerpoint users. Just remember: 10 slides, 20
minutes,
30 point font.”
2
If you are determined to improve your PowerPoint
skills, read Presentation Zen by Garr Reynolds.
New digital presentation technologies are being developed that
go beyond Powerpoint. For example, Prezi uses a single canvas
for
the presentation, allowing presenters to place text, images, and
2. [2]
https://opentextbook.site/informationsystems2019/wp-
content/uploads/sites/3/2018/07/TABLUE.png
https://opentextbook.site/informationsystems2019/wp-
content/uploads/sites/3/2018/07/TABLUE.png
http://www.amazon.com/gp/product/0321811984
other media on the canvas, and then navigate between these
objects
as they present. Tools such as Tableau allow users to analyze

data in
depth and create engaging interactive visualizations.
Sidebar: I Own This Software, Right?
Well…
When you purchase software and install it on your computer,
are
you the owner of that software? Technically, you are not! When
you
install software, you are actually just being given a license to
use it.
When you first install a package, you are asked to agree to the
terms
of service or the license agreement. In that agreement, you will
find
that your rights to use the software are limited. For example, in
the terms of the Microsoft Office software license, you will find
the following statement: “This software is licensed, not sold.
This
agreement only gives you some rights to use the features
included
in the software edition you licensed.”
For the most part, these restrictions are what you would expect.

You cannot make illegal copies of the software and you may not
use
it to do anything illegal. However, there are other, more
unexpected
terms in these software agreements. For example, many
software
agreements ask you to agree to a limit on liability. Again, from
Microsoft: “Limitation on and exclusion of damages. You can
recover from Microsoft and its suppliers only direct damages up
to
the amount you paid for the software. You cannot recover any
other
damages, including consequential, lost profits, special, indirect
or
incidental damages.” This means if a problem with the software
causes harm to your business, you cannot hold Microsoft or the
supplier responsible for damages.
Applications for the Enterprise
As the personal computer proliferated inside organizations,
control

over the information generated by the organization began
splintering. For instance, the customer service department
creates
a customer database to keep track of calls and problem reports,
and the sales department also creates a database to keep track of
customer information. Which one should be used as the master
list of customers? Or perhaps someone in sales might create a
spreadsheet to calculate sales revenue, while someone in
finance
creates a different revenue document that meets the needs of
their
department, but calculates revenue differently. The two
spreadsheets will report different revenue totals. Which one is
correct? And who is managing all of this information?
Enterprise Resource Planning
In the 1990s
the need to bring an organization’s information back under
centralized control became more apparent. The Enterprise
Resource Planning (ERP) system (sometimes just called
enterprise

software) was developed to bring together an entire
organization
within one program. ERP software utilizes a central database
that
is implemented throughout the entire organization. Here are
some
key points about ERP.
• A software application. ERP is an application that is used by
many of an organization’s employees.
• Utilizes a central database. All users of the ERP edit and save
their information from the same data source. For example, this
means there is only one customer table in the database, there
is only one sales (revenue) table in the database, etc.
• Implemented organization-wide. ERP systems include
functionality that covers all of the essential components of a
business. An organization can purchase modules for its ERP
system that match specific needs such as order entry,
manufacturing, or planning.

ERP systems were originally marketed to large corporations.
However, as more and more large companies began installing
them,
ERP vendors began targeting mid-sized and even smaller
businesses. Some of the more well-known ERP systems include
those from SAP, Oracle, and Microsoft.
In order to effectively implement an ERP system in an
organization, the organization must be ready to make a full
commitment. All aspects of the organization are affected as old
systems are replaced by the ERP system. In general,
implementing
an ERP system can take two to three years and cost several
million
dollars.
So why implement an ERP system? If done properly, an ERP
system can bring an organization a good return on their
investment.
By consolidating information systems across the enterprise and
using the software to enforce best practices, most organizations
see an overall improvement after implementing an ERP.
Business

processes as a form of competitive advantage will be covered in
Chapter 9.
Customer Relationship Management
A Customer Relationship Management (CRM) system manages
an
organization’s customers. In today’s environment, it is
important to
develop relationships with your customers, and the use of a
well-
designed CRM can allow a business to personalize its
relationship
with each of its customers. Some ERP software systems include
CRM modules. An example of a well-known CRM package is
Salesforce.
Supply Chain Management
Supply Chain

Many organizations must deal with the complex task of
managing
their supply chains. At its simplest, a supply chain is the
linkage
between an organization’s suppliers, its manufacturing
facilities,
and the distributors of its products. Each link in the chain has a
multiplying effect on the complexity of the process. For
example,
if there are two suppliers, one manufacturing facility, and two
distributors, then the number of links to manage = 4 ( 2 x 1 x
2 ). However, if two more suppliers are added, plus another
manufacturing facility, and two more distributors, then the
number
of links to manage = 32 ( 4 x 2 x 4 ). Also, notice in the above
illustration that all arrows have two heads, indicating that
information flows in both directions. Suppliers are part of a
business’s supply chain. They provide information such as
price,
size, quantity, etc. to the business. In turn, the business
provides
information such as quantity on hand at every store to the

supplier.
The key to successful supply chain management is the
information
system.
https://commons.wikimedia.org/wiki/Category:Supply_chain#/m
edia/File:A_company%27s_supply_chain_(en).png
A Supply Chain Management (SCM) system handles the
interconnection between these links as well as the inventory of
the products in their various stages of development. As
discussed
previously much of Walmart’s success has come from its ability
to identify and control the supply chain for its products.
Walmart
invested heavily in their information system so they could
communicate with their suppliers and manage the thousands of
products they sell.
Walmart realized in the 1980s that the key to their success was
information systems. Specifically, they needed to manage their
complex supply chain with its thousands of suppliers, thousands

of retail outlets, and millions of customers. Their success came
from being able to integrate information systems to every entity
(suppliers, warehouses, retail stores) through the sharing of
sales
and inventory data. Take a moment to study the diagram
above…look for the double-headed arrow. Notice that data
flows
down the supply chain from suppliers to retail stores. But it also
flows up the supply chain, back to the suppliers so they can be
up to
date regarding production and shipping.
Mobile Applications
Just as with the personal computer, mobile devices such as
smartphones and electronic tablets also have operating systems
and
application software. These mobile devices are in many ways
just
smaller versions of personal computers. A mobile app is a

software
application designed to run specifically on a mobile device.
As shown in Chapter 2, smartphones are becoming a dominant
form of computing, with more smartphones being sold than
personal computers. A greater discussion of PC and smartphone
sales appears in Chapter 13, along with statistics regarding the
decline in tablet sales. Businesses have adjusted to this trend by
increasing their investment in the development of apps for
mobile
devices. The number of mobile apps in the Apple App Store has
increased from zero in 2008 to over 2 million in 2017.
3
Building a mobile app will will be covered in Chapter 10.
Cloud Computing
Historically, for software to run on a computer an individual
copy
of the software had to be installed on the computer. The concept
of
“cloud” computing changes this.
Cloud Computing

The “cloud” refers to applications, services, and data storage
located on the Internet. Cloud service providers rely on giant
server
farms and massive storage devices that are connected via the
Internet. Cloud computing allows users to access software and
data
storage services on the Internet.
You probably already use cloud computing in some form. For
example, if you access your e-mail via your web browser, you
are
3. [3]
using a form of cloud computing if you are using Google
Drive’s
applications. While these are free versions of cloud computing,
there is big business in providing applications and data storage
over
the web. Cloud computing is not limited to web applications. It
can
also be used for services such as audio or video streaming.

Advantages of Cloud Computing
• No software to install or upgrades to maintain.
• Available from any computer that has access to the Internet.
• Can scale to a large number of users easily.
• New applications can be up and running very quickly.
• Services can be leased for a limited time on an as-needed
basis.
• Your information is not lost if your hard disk crashes or your
laptop is lost or stolen.
• You are not limited by the available memory or disk space on
your computer.
Disadvantages of Cloud Computing
• Your information is stored on someone else’s computer.
• You must have Internet access to use it.
• You are relying on a third-party to provide these services.
Cloud computing has the ability to really impact how
organizations manage technology. For example, why is an IT
department needed to purchase, configure, and manage personal

computers and software when all that is really needed is an
Internet
connection?
Using a Private Cloud
Many organizations are understandably nervous about giving up
control of their data and some of their applications by using
cloud
computing. But they also see the value in reducing the need for
installing software and adding disk storage to local computers.
A
solution to this problem lies in the concept of a private cloud.
While
there are various models of a private cloud, the basic idea is for
the cloud service provider to section off web server space for a
specific organization. The organization has full control over
that
server space while still gaining some of the benefits of cloud
computing.

Virtualization
Virtualization is the process of using software to simulate a
computer or some other device. For example, using
virtualization
a single physical computer can perform the functions of several
virtual computers, usually referred to as Virtual Machines
(VMs).
Organizations implement virtual machines in an effort to reduce
the number of physical servers needed to provide the necessary
services to users. This reduction in the number of physical
servers
also reduces the demand for electricity to run and cool the
physical
servers. For more detail on how virtualization works, see this
informational page from VMWare.
http://www.vmware.com/virtualization/virtualization-
basics/how-virtualization-works.html
http://www.vmware.com/virtualization/virtualization-
basics/how-virtualization-works.html
Example program “Hello World”

written in Java
Software Creation
Modern software applications
are written using a
programming language such as
Java, Visual C, C++, Python, etc.
A programming language
consists of a set of commands
and syntax that can be
organized logically to execute
specific functions. Using this language a programmer writes a
program (known as source code) that can then be compiled into
machine-readable form, the ones and zeroes necessary to be
executed by the CPU. Languages such as HTML and Javascript
are
used to develop web pages.
Open-Source Software
When the personal computer was first released, computer
enthusiasts banded together to build applications and solve

problems. These computer enthusiasts were motivated to share
any
programs they built and solutions to problems they found. This
collaboration enabled them to more quickly innovate and fix
problems.
As software began to become a business, however, this idea of
sharing everything fell out of favor with many developers.
When a
program takes hundreds of hours to develop, it is
understandable
that the programmers do not want to just give it away. This led
to a
new business model of restrictive software licensing which
required
payment for software, a model that is still dominant today. This
model is sometimes referred to as closed source, as the source
code
is not made available to others.
There are many, however, who feel that software should not be

restricted. Just as with those early hobbyists in the 1970s, they
feel
that innovation and progress can be made much more rapidly if
they share what has been learned. In the 1990s, with Internet
access
connecting more people together, the open-source movement
gained steam.
Open Office Suite
Open-source software makes the source code available for
anyone to copy and use. For most people having access to the
source code of a program does little good since it is challenging
to
modify existing programming code. However, open-source
software
is also available in a compiled format that can be downloaded
and
installed. The open-source movement has led to the
development
of some of the most used software in the world such as the
Firefox
browser, the Linux operating system, and the Apache web

server.
Many businesses are wary of open-source software precisely
because the code is available for anyone to see. They feel that
this
increases the risk of an attack. Others counter that this openness
actually decreases the risk because the code is exposed to
thousands of programmers who can incorporate code changes to
quickly patch vulnerabilities.
There are thousands of open-source applications available for
download. For example, you can get the productivity suite from
Open Office. One good place to search for open-source software
is
sourceforge.net, where thousands of programs are available for
free
download.
Summary
Software gives the instructions that tell the hardware what to
do.

There are two basic categories of software: operating systems
and
applications. Operating systems interface with the computer
hardware and make system resources available. Application
software allows users to accomplish specific tasks such as word
processing, presentations, or databases. This group is also
referred
to as productivity software. An ERP system stores all data in a
centralized database that is made accessible to all programs and
departments across the organization. Cloud computing provides
access to software and databases from the Internet via a web
browser. Developers use various programming languages to
develop
software.
Study Questions
1. Develop your own definition of software being certain to
explain the key terms.
2. What are the primary functions of an operating system?
3. Which of the following are operating systems and which are
applications: Microsoft Excel, Google Chrome, iTunes,

Windows, Android, Angry Birds.
4. What is your favorite software application? What tasks does
it
help you accomplish?
http://sourceforge.net/
5. How would you categorize the software that runs on mobile
devices? Break down these apps into at least three basic
categories and give an example of each.
6. What does an ERP system do?
7. What is open-source software? How does it differ from
closed-
source software? Give an example of each.
8. What does a software license grant to the purchaser of the
software?
Exercises
1. Find a case study online about the implementation of an ERP
system. Was it successful? How long did it take? Does the case

study tell you how much money the organization spent?
2. If you were running a small business with limited funds for
information technology, would you consider using cloud
computing? Find some web-based resources that support your
decision.
3. Go to sourceforge.net and review their most downloaded
software applications. Report on the variety of applications you
find. Then pick one that interests you and report back on what
it does, the kind of technical support offered, and the user
reviews.
4. Review this article on the security risks of open-source
software. Write a short analysis giving your opinion on the
different risks discussed.
5. List three examples of programming languages? What
features
in each language makes it useful to developers?
http://sourceforge.net/
http://www.zdnet.com/six-open-source-security-myths-
debunked-and-eight-real-challenges-to-consider-7000014225

Lab
1. Download Apache Open Office and create a document. Note:
If
your computer does not have Java Runtime Environment (JRE)
32-bit (x86) installed, you will need to download it first from
this site.Open Office runs only in 32-bit (x86) mode. Here is a
link to the Getting Started documentation for Open Office.
How does it compare to Microsoft Office? Does the fact that
you got it for free make it feel less valuable?
1. Statista. (2017). Microsoft – Statistics & Facts. Retrieved
from
https://www.statista.com/topics/823/microsoft/
2. Kawasaki, G. (n.d.). The 10/20/30 Rules for PowerPoint.
Retrieved from https://guykawasaki.com/the_102030_rule/.↵
3. Statista. (2018). Number of apps in Apple App Store July
2008 to
January 2017. Retrieved from …
Assignment 1
Textbook:Information Systems for Business and Beyond
Please answer the following

From Chapter 3 – Answer Study questions 1-8 and Exercise 2
From Chapter 2 – Answer Study questions 1-13 and Exercise 5
All the above questions should be submitted in one Word
document
Please understand that Plagiarism will not be tolerated and will
result in a zero grade.
Submission Requirements
Font: Times New Roman, size 12, double-space
Citation Style: APA
Length: At least six Pages
References: Please use citations and references where
appropriate
No Plagiarism
Assignment 2
Textbook:Information Technology and Organizational Learning
Please answer the Following
From Chapter 3 – Complete the two essay assignments noted
below:
1. Review the strategic integration section. Note what strategic
integration is and how it ties to the implementation of
technology within an organization.
2. Review the information technology roles and responsibilities
section. Note how IT is divided based on operations and why
this is important to understand within an organization.
Submission Requirements
Font: Times New Roman, size 12, double-space
Length: At least two Pages
Citation Style: APA
References: Please use citations and references where
appropriate
No Plagiarism
The above submission should adhere to APA formatting
standards. Remember the page length does not include the APA
cover page or any references. Please understand that Plagiarism
will not be tolerated and will result in a zero grade.

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