CHAPTER 1 : ICT AND BUSINESS

Learning Objectives
►

► Understand the effects of ICT on business and their

relationship to globalization.
► Explain why ICT are so essential in business today.
► Define information system and describe its management,
organization, and technology components.
 Learning Objectives (cont.)
► Define complementary assets and explain how they
ensure that information systems provide genuine value to an
organization.
► Describe the different academic disciplines used to study
information systems and explain how each contributes to our
understanding of them.
► Explain what is meant by a sociotechnical systems
perspective.
ICT Definition

Information and communications technology (ICT) is an extended

synonym for information technology (IT), but more specific to the role
of unified communications and the telecommunications.
ICT is to describe a range of technologies for gathering, storing, retrieving,
processing, analysing, and transmitting information.
 ICT in Business

ICT in a business environment can be used for:

□ Recording Data, Storing data, Manipulating data and Retrieving data
□ Administration- Invoices, Communication, Emails
□ Business, Finance and Accounting- Business Plans, Financial
forecasting, Auditing, Market Analysis, Research, Recording
Transactions
□ Communications- email, instant messages, mobile phones
□ Engineering and Creative Art- 2D and 3D Drawing, Modelling,
Simulation
□ Wildlife and Tourism and Hospitality- Animal Tracking, Hotel booking,
GIS
The Role of IS in Business Today
► In the emerging, fully digital firm:
> Significant business relationships are digitally enabled and
mediated.
> Core business processes are accomplished through digital
networks.
> Key corporate assets are managed digitally.
► Digital firms offer greater flexibility in organization and
management.
> Time shifting, space shifting
 Role of IS in Business Today
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Digital Nomad (New Way of Business)
Exercise 1

What is the form of existence and world

view of digital nomadism?
What are the changes people must go
through in order to become true DN?
What are the specific characters of
digital nomadism culture as of
combination of sign systems,
characterized by certain processes,
codes, and media?
 CULTURE OF DIGITAL NOMADS:
ONTOLOGICAL, ANTHROPOLOGICAL, AND
SEMIOTIC ASPECTS
Inna Kuzhefeva -Sagan Tomsk Slate University. RussiatpsaganfchnaiLru

Snezhana Nosova Tomsk State University. Russiasagan99fcpmaii.ru

Abstract
“Digital nomads* (DN) is a metaphor, which used to be nothing but a neologism some time ago (Makimoto,
Manners. 1997). But it presented the essence of the phenomenon so (airly that over the next few years became very
popular in journalism, Moreover, it turned into the commonly used sc tent the term in the interdisciplinary discourse
amongsocialphilosophers,socialscientists,mediatheoreticians,economists,andarchitects.
Digitalnomadsarepeoplewho,intheprocessesoftheirprofessionalactivities(orstudying,creating art,treetime),
are not confined to particular spots through using Internet technologies and mobile connection. Therefore, the
phenomenonofDNbelongssolelytothenetworkinformation-communicationsociety.Itappearedinthecontextoftwo
interdependentglobaltrends:mobilityanddigitalization.
The number of DN increases. At hrst they were the inhabitants of “wireless* megapolises. Today, due to the
development of satellite communication, they can be seen in countryside, cokl and regular deserts, etcetera. In order to
becomeadigitalnomad,itisnotnecessarytobeadedicatedtravelerortomovefromoneplacetoanothermacommon,
physical sense. Themajor pointistobealways“plugged* to theNet through somesorts of gadgets This ’plugging*isthe
keyfactorwhichdeterminesadigitalnomad.
The culture of DN is constantly evolving and turning into the "universal* culture of the network society. In someseme, it
covers various traditional cultures and subcultures and absorbs
Perspectives on Information
Systems
► Information system
> Set of interrelated components
> Collect, process, store, and distribute information > Support
decision making, coordination, and control
► Information vs. data
> Data are streams of raw facts.
> Information is data shaped into meaningful form.
Perspectives on Information Systems

► Three activities of information systems produce information

organizations need:

> Input: Captures raw data from organization or external

environment
> Processing: Converts raw data into meaningful form

> Output: Transfers processed information to

people or activities that use it
Perspectives on Information
Systems

► Technology dimension of information systems:

□ Computer hardware and software
□ Data management technology
□ Networking and telecommunications technology
> Networks, the Internet, intranets and extranets, World
Wide Web
► Perspectives on Information
Systems

► Business perspective on information systems:

> Information system is instrument for creating value >
Investments in information technology will result in superior
returns:
> Productivity increases
> Revenue increases
> Superior long-term strategic positioning
 Since the 1960s,
people have been exposed to as
many as
5,000 advertising messages
per day.
These are the world’s largest corporations, compiled by market capitalization (the
total market value of a company's outstanding shares).

A virtually new world

World, largest listed companies by market capitalisation. Sbn
Sector: ■ Energy ■Financials ■Healthcare ■Industrials ■ !! ■Telecoms

End 2006 2016*

0 200 400 600 0 200 400 600
Apple
Exxon Mobil

General Electric Alphabet

Gazprom Microsoft

Microsoft Berkshire Hathaway

Obgroup Bank of Exxon Mobil

America Royal Amazon
Dutch Shell BP facebook
PetroChina
Johnson & Johnson
 The Business Information Value
Chain Business Processes

Supply Enterprise Customer Knowledge

Chain Management Management Management
Management
Firm
Profitability
and
Strategic
Data T ransfor-mation Dissemination Position
Collection into Business
and Systems
Storage

Planning Coordinating Controlling Modeling and

Decision
Making
Information Processing Activities Management Activities

Business Value

From a business perspective, information systems are part of a series of value-adding activities for
acquiring, transforming, and distributing information that managers can use to improve decision
making, enhance organizational performance, and, ultimately, increase firm profitability.
 Perspectives on Information
Systems
► Complementary assets:
> Assets required to derive value from a primary investment
> Firms supporting technology investments with investment in
complementary assets receive superior returns
> Example: Invest in technology and the people to make it work
properly
Perspectives on Information
Systems
► Complementary assets include:
> Organizational assets, for example:
> Appropriate business model
> Efficient business processes
> Managerial assets, for example:
> Incentives for management innovation
> Teamwork and collaborative work environments >
Social assets, for example:
> The Internet and telecommunications infrastructure >
Technology standards