Introduction to the course – what is a digital organization? ............................................................. 4
A digital organization implements information systems .................................................................... 4
to realize its strategic objectives in order to achieve a competitive advantage................................ 4
and create stakeholder value.......................................................................................................... 6
in a rapidly changing environment .................................................................................................. 6
Summary ........................................................................................................................................ 6
Business and IT strategy ............................................................................................................... 7
1. Strategic business objectives of information systems ................................................................ 7
2. Porter’s competitive forces model ...........................................................................................10
3. Disruptive innovation model ...................................................................................................16
4. Value webs, synergies, corecompetencies and network-based strategies – The role of IT in
strategy ..........................................................................................................................................17
Intracompany ............................................................................................................................ 17
Intercompany ............................................................................................................................ 18
5. Digital transformation framework ............................................................................................23
Summary .......................................................................................................................................25
Brainsnacks ...................................................................................................................................25
Organizational dimension of information systems......................................................................... 26
1. What is an information system ................................................................................................26
2. Dimensions of an information system......................................................................................27
Organization .............................................................................................................................. 27
Management ............................................................................................................................. 28
Technology ................................................................................................................................ 28
3. Organizational dimension of an information system .................................................................28
Organization structure ................................................................................................................ 30
Business processes ................................................................................................................... 32
Business culture ........................................................................................................................ 35
Organizational politics................................................................................................................ 36
Organizational environment ........................................................................................................ 36
4. Theories on the impact of IS on organizations ..........................................................................38
Economic impact ....................................................................................................................... 38
Organizational and behavioral impact ......................................................................................... 40
5. Complementary assets ..........................................................................................................40
Summary .......................................................................................................................................42
Brainsnacks ...................................................................................................................................42
,Technology dimensions of information systems ............................................................................ 43
1. Gartner hype cycle & magic quadrant ......................................................................................43
2. Transaction processing systems .............................................................................................45
3. Business intelligence systems ................................................................................................46
Management information systems .............................................................................................. 46
Decision support systems .......................................................................................................... 47
Executive support systems ......................................................................................................... 47
Overview ................................................................................................................................... 48
4. Enterprise applications...........................................................................................................48
Enterprise resource planning (ERP) ............................................................................................. 49
Customer relationship management (CRM) ................................................................................. 53
Supply chain management (SCM) ............................................................................................... 57
Knowledge management systems (KMS) ..................................................................................... 61
Other ways of linking the enterprise ............................................................................................ 62
Challenges ................................................................................................................................ 63
Next-gen .................................................................................................................................... 63
5. Systems for collaboration .......................................................................................................64
Summary .......................................................................................................................................68
Brainsnack .....................................................................................................................................68
E-commerce, digital markets, digital goods .................................................................................. 69
1. Unique features of e-commerce..............................................................................................69
2. E-commerce business and revenue models ............................................................................74
3. Internet marketing ..................................................................................................................76
4. m-commerce.........................................................................................................................79
5. Building e-commerce presence ..............................................................................................80
6. B2B e-commerce ...................................................................................................................81
Summary .......................................................................................................................................83
Brainsnack .....................................................................................................................................83
Decision-making and analytics .................................................................................................... 84
1. Decision-making process .......................................................................................................84
2. Business intelligence and business analytics...........................................................................85
3. Business intelligence users.....................................................................................................94
Summary .......................................................................................................................................97
Brainsnack .....................................................................................................................................97
Securing information systems ...................................................................................................... 98
1. Vulnerability of information systems ........................................................................................98
Malware .................................................................................................................................... 99
Hackers and computer crime ................................................................................................... 103
, Internal threats ........................................................................................................................ 103
Software vulnerability ............................................................................................................... 103
Organized crime ....................................................................................................................... 104
2. Security and control ............................................................................................................. 104
Summary ..................................................................................................................................... 111
Brainsnack ................................................................................................................................... 111
Knowledge management ........................................................................................................... 112
1. Knowledge ........................................................................................................................... 112
2. Knowledge management value chain .................................................................................... 113
3. Enterprise-wide knowledge management systems ................................................................. 115
4. Knowledge work systems...................................................................................................... 117
5. Artificial intelligence and machine learning ............................................................................ 118
Summary ..................................................................................................................................... 118
Brainsnacks ................................................................................................................................. 118
Innovative technologies and digital transformation ..................................................................... 119
1. Industry 4.0.......................................................................................................................... 119
Industrial revolutions ............................................................................................................... 119
2. Innovative technologies ........................................................................................................ 120
A technical revolution is not per definition an industrial revolution .............................................. 126
We need I4.0 paradigm shifts .................................................................................................... 126
3. The IS department ................................................................................................................ 127
, Introduc*on to the course – what is a digital organiza*on?
A digital organiza-on implements informa(on systems
Informa)on technologies:
- Enterprise Applica)ons (ERP, CRM, SCM)
- E-commerce and M-commerce
- Collabora)on systems
- Business Intelligence and Analy)cs
- Knowledge Management Systems (KMS)
- Cybersecurity
- Emerging digital solu)ons (AI, Cloud, Augmented and VR)
- …
Successful technology implementa)on requires more than buying and installing soIware (lots
of soIware bought by companies isn’t being used)
The availability of informa)on technology does not guarantee the (correct) usage of this
technology
Building digital organiza)ons requires more than the mere implementa)on of informa)on
technology
Technology is only one piece of the puzzle
• Digi)zing organiza)ons is an architectural excercise with following building blocks:
o Technology
o Organiza)on
o Management
• Implemen)ng informa)on systems and technology alone does not deliver a
compe))ve advantage
to realize its strategic objec(ves in order to achieve a compe((ve
advantage
strategies for a compe))ve advantage
• Lowest cost à Aldi, IKEA, Ryanair, Colruyt
Ryanair uses technology to be the cheapest one; they use an app so there are no people
needed to answer ques)ons
• Product leadership à Tesla, Apple
Tesla uses app to make their product beTer and to offer extra func)ons
• Customer and supplier in)macy à Tiktok, NeWlix
They want to know you as a customer; app is purely based on data collec)ng