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Business, Information Technology and Society

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Business, Information Technology and Society Business, Information Technology and Society This text reveals the enormous impact of modern information technology on busi- ness and society. It presupposes no previous study of information technology or of business, so represents an extremely readable introduction to the subject for both students of business as well as for students of information technology. Business, Information Technology and Society emphasizes the worldwide impact of new trends described and draws upon examples from the USA, Europe, Japan and the newly industrialized countries of the Pacific Rim. The book highlights the dif- fering use of information technology in a variety of organizations – including man- ufacturing, services, the public sector and not-for-profit organizations – and the way this is constrained by the wider society within which such organizations operate. Modern information technology (IT) is the result of a convergence between modern digital computing and communication technologies. The importance of IT is as the core of an ‘Information System’ which consists of a series of interac- tions between people, data, hardware and software, organizations and their social environment. The theme of this book is that the way in which computing technology devel- ops and is applied is the result of social decision-making. Stephen D. Tansey emphasizes the need to make conscious choices both in society as a whole and within organizations using the technology to ensure that it is used to serve the public interest in society and the strategy of the organization concerned. Stephen D. Tansey has taught introductory courses on the business and social implications of information technology for the past fourteen years. He is a member of the Information Systems Group of the Business School at Bournemouth University. He also teaches Politics, and is the author of the success- ful introductory textbook Politics: the Basics (also published by Routledge, now in its second edition). Geoffrey Darnton and John Wateridge are also members of the Information Systems Group of Bournemouth University Business School. Geoffrey Darnton is co-author of several books, including Information in the Enterprise: It’s More Than Technology; John Wateridge has contributed extensively to the International Journal of Project Management. Business, Information Technology and Society Stephen D. Tansey with contributions by Geoffrey Darnton and John Wateridge London and New York To the memory of Alisha May Tansey 9 March 2001–1 October 2001 First published 2003 by Routledge 11 New Fetter Lane, London EC4P 4EE Simultaneously published in the USA and Canada by Routledge 29 West 35th Street, New York, NY 10001 Routledge is an imprint of the Taylor & Francis Group This edition published in the Taylor & Francis e-Library, 2003. © 2003 Stephen D. Tansey, Geoffrey Darnton and John Wateridge The right of Stephen D. Tansey, Geoffrey Darnton and John Wateridge to be identified as the Authors of this Work has been asserted by them in accordance with the Copyright, Designs and Patents Act 1988 All rights reserved. No part of this book may be reprinted or reproduced or utilized in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers. British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloging in Publication Data A catalog record for this book has been requested ISBN 0-203-45467-7 Master e-book ISBN ISBN 0-203-76291-6 (Adobe eReader Format) ISBN 0-415-19213-7 (pbk) ISBN 0-415-19212-9 (hbk) Contents List of figures viii List of tables ix List of case studies x List of boxes xi List of exercises xiii Introduction xv Acknowledgements xviii PART I The environment of computing 1 1 The environment of computing: a systems approach 3 Topics 3 Business and information technology 3 Information systems 4 Systems thinking 10 Systems analysis 14 Technical systems: hardware and software 19 Social systems 33 Technology and social systems 34 Recommended reading 36 2 The IT industry and the information economy 37 Topics 37 A complex industry 38 The global information matrix 59 Information economics 62 A new industrial revolution? 68 Defining and measuring the information economy 73 IT and employment 74 Recommended reading 77 vi Contents 3 Government, globalization and information technology 78 Topics 78 Government and the economy 78 The role of government in relation to IT 79 National and regional approaches to IT 93 Globalization, information technology and government 100 Recommended reading 104 4 Regulating computing 105 Topics 105 Computers and privacy 105 IT standards 112 Intellectual property and IT 115 Organizational information management rules 123 Governing the Internet 126 Legal regulation and computer abuse 126 Answers to questions on intellectual property 134 Recommended reading 134 PART II The workplace and IT 135 5 IT and organizations 137 Topics 137 Organizations and IT: background 137 Competitive advantage and IT 142 Information strategy 150 Managing IT projects 155 The future of IT and organizations 171 Discussion of stakeholder exercises 171 Recommended reading 173 6 IT and jobs 174 Topics 174 IT and the quality of jobs 174 Ergonomics and IT 176 The design of jobs with IT 184 Industrial relations and IT 191 Teleworking 194 Gender and IT 195 Contents vii Management skills and IT 198 Recommended reading 201 PART III IT and the environment 203 7 IT and society: the need for choice 205 Topics 205 The social implications of an information society 205 Leisure and the home 206 Education and information technology 207 Culture and cyberspace 211 IT and divisions in society 214 Communities and IT 216 The physical environment and IT 222 Democracy, government and IT 224 Information technology in a democratic society 228 Conclusion 229 Recommended reading 229 Glossary, including acronyms and abbreviations 230 On-line resources 239 Bibliography 241 Index 249 Figures 1.1 An organizational information system 6 1.2 The systems development process 15 1.3 Basic features of a computer 20 2.1 Stages of industry growth 52 2.2 Segments of the US economy 65 2.3 Estimated international growth in information employment 74 3.1 R&D cycle 80 5.1 Gibson and Nolan’s four-stage model 140 5.2 Nolan’s six-stage model of IT growth 141 5.3 Business process re-engineering or redesign 153 6.1 The human/machine interface 1 178 6.2 The human/machine interface 2 178 6.3 Ergonomics as a multi-factor study 179 6.4 Alternative typewriter keyboards 181 Tables 1.1 Generations of information and communication technology 9 2.1 IT industry by value chain contribution, 1992 52 2.2 IT industry evolution, 1964–2015 53 3.1 Multinationals and countries compared 102 5.1 Stakeholders in information technology projects 165 6.1 Key competencies for hybrid managers 199 7.1 Web users, by language 215 7.2 Net users on-line by area, December 2000 215 Case studies 2.1 An original equipment manufacturer: Dell 39 2.2 A software house: Borland International 40–2 2.3 An infrastructure operator: AT&T Corp 44–5 2.4 A ‘publisher’: AltaVista 46–8 2.5 Information services provider: EDS49 2.6 An intensive information user: HSBC bank 50–1 3.1 Microsoft and the courts 85–6 3.2 Singapore: from intelligent island to global infocomm capital? 99 4.1 Revising the Data Protection Act in the United Kingdom (95/46/EC) 109–10 5.1 IT and competitive advantage: Ford 145 5.2 IT and competitive advantage: American Airlines 146 5.3 IT and competitive advantage: J. Sainsbury plc 147–8 5.4 IT and competitive advantage: the Open University 148 7.1 Spinal muscular atrophy: self-help on the web 218 7.2 Some unusual US local community networks 221 7.3 Digital Amsterdam 221 Boxes 1.1 The uses of computers in business 4 1.2 Key types of business information 5 1.3 Criteria for a good management information system 7 1.4 Examples of information work 7 1.5 Benefits of the system life cycle approach 15 1.6 Components of data flow diagrams 18 1.7 Entity relationship modelling 19 1.8 Input devices for computers 21 1.9 How electronic computers remember 22 1.10 How binary numbers represent graphics 23 1.11 Computing generations 27 1.12 Computing trends 29 2.1 Different types of communications producers 38 2.2 Ten theses relating to the Internet economy 56 2.3 Main facilities offered on the Internet 61 2.4 Is information a factor of production? 63 2.5 Information has special economic properties 64 2.6 Summary of macro-economic relationships between activity and technology 66 2.7 Societies, production and information 72 3.1 Challenges to the nation-state 101 4.1 Data protection rules 107 4.2 Levels of standardization 113 4.3 Varieties of intellectual property 117 4.4 Comparison of patent and copyright 119 4.5 Objectives of organizational information rules 123 5.1 Corporate strategies to use IT for competitive advantage 149 5.2 Informal political tactics in organizations 168 6.1 Health problems with VDUs 177 6.2 Definitions of ergonomics 177 6.3 Key aspects of the ergonomic approach 179 6.4 Legislative guidelines for the use of VDU equipment 184 6.5 McGregor’s ‘Theory X’ 185 xii Boxes 6.6 McGregor’s ‘Theory Y’ 186 6.7 Maslow’s hierarchy of needs 187 6.8 Zuboff’s automating approach 188 6.9 Zuboff’s informating approach 188 6.10 New technology agreements 193 7.1 OnyerBikes: fund-raising through the web 219 Exercises 4.1 Data protection 112 4.2 Intellectual property 121 5.1 Competitive advantage 149 5.2 Stakeholding and IT 169–70 6.1 Job design and IT 190–1 7.1 Educational reform 210 Introduction This book is primarily intended as an undergraduate text that introduces students to the enormous impact of modern information technology on business.
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