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Information Society & E-Government (E)

WS 2004

406281 VO D3: Politische Soziologie

Opening Lecture - October 11, 2004

Institute of Government and Comparative Social Science Walter Frisch


walter.frisch@univie.ac.at http//www.univie.ac.at/frisch/isegov Mobile 0664 - 2155301

Impacts of IT Living in the Information Society Oct 11, Oct 25 - Nov 8- Nov 29 Exam/Paper Dec 13 - Jan 17, 2005
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U.S.Vice President Al Gore meets Dr.Frisch on issues of Internet-Connectivity

Learning Objectives
Understand the major impacts of information technology on organizations, individuals, and society. Consider the potential dehumanization of people by computers and other potential negative impacts of information technology. Identify the major impacts of information technology on organizational structure, power, jobs, supervision, and decision making. Identify some of the major societal impacts of the Web. Understand the role and impact of virtual communities.
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Does IT have only Positive Effects?


While our society generally embraces IT, there are many people who believe that humankind is threatened by the evolution of technology. We must be aware of ITs effect on us as individuals and as members of organizations and society. Questions arise, such as;
Will society have any control over the decisions to deploy technology? Where will technology critics be able to make their voices heard? Who will investigate the costs and risks of technologies, and who is going to pay for that investigation?

Life Cycle of a Microprocessor


Demand

Moores La w

Pentium Pro Pentium II Merced

Pentium 486 386 286 8086

Time
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The number of transistors on a chip has doubled approximately every 1824 months for the past 30 yearsas well as concurrent reductions in the cost of technology - a trend referred to as Moores Law .
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Internet Domain Survey Host Count

PC usage in households in EU-15, April 2000 (%)

Age groups of EU-15 households with Internet connection, 2000 (%)

Technological components of ICT systems

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IT Adoption Rates and the Economy

Case: Wearable Computers


For years, many mobile employees were unable to enjoy the new technologies designed to make employees work or feel better.

USA CHINA JAPAN Population 278 million 1,3 billion 127 million GDP $10 trillion; 4.5 trillion; $3 trillion Internet Usage: 148 million 46 million 65 million Internet 1 3 2 Rank Strategic Planning Assumption: By 2005,China will have the highest number of Internet users in the world (0.9 probability).
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The use of wireless devices that can communicate with each other and with remote IS is increasing very rapidly (m-commerce).
Such systems could easily include GPS (global positioning systems).

So far only a few companies make and sell wearables for mobile workers, but this is expected to change in the future.

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Key Issues Globalization of IT


1.How will enterprises and governments exploit IT to develop global economic power? 2.How will IT connectivity and telecommunications capabilities develop globally and what will be the implications? 3.How will global business exploit applications and middleware to meet diverse multinational business needs? 4.Will struggles over taxation,privacy,security,trade and other issues surrounding the Internet hinder its full economic potential? Strategic Planning Assumption: By 2005, less than 10 percent of the world s population will not have at least some form of access to the Internet (0.4 probability).
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Structure, Authority & Job Content


Flatter Organizational Hierarchies
An increased span of control.

Blue-to-white Collar Staff Ratio


The number of professionals and specialists could decline.

Special Units
Technology center, e-commerce center, etc.

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Structure, Authority & Job Content (cont.)


Centralization of Authority
Greater empowerment and decentralization.

Personnel Issues
Employee Career Ladders
The use of IT may short-cut a portion of the learning curve.

Power and Status


Online knowledge bases may reduce the power of certain professional groups.

Changes in Supervision
Electronic supervision.

Job Content
If job content changes, people may need training, re-skilling.

Other Considerations
Job qualifications, training, worker satisfaction.

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The Managers Job


IT changes the way Managers make decisions in the following ways;

Organizational Changes
The use of computer-assisted communication technologies leads to the following organizational changes
A large number and variety of people participating in decision making. A decrease in the number and variety of people participating in traditional face-to-face communication. Fewer organizational levels involved in authorizing actions. More rapid and accurate identification of problems and opportunities, so better decisions are made. Organizational intelligence that is more accurate, comprehensive, timely, and available. Shorter time required to authorize actions and make decisions.

Automation of routine decisions (e.g,. frontline employee). Less expertise required for many decisions. Less reliance on experts to provide support to top executives. Empowerment of lower and medium levels of management. Decision making undertaken by non-managerial employees. Power redistribution among managers, and power shifts down the organization.

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Impacts of Individuals at Work


Job Satisfaction
Dissatisfied Managers

Impacts of Individuals at Work


Information Anxiety
Frustration with the quality of the information available on the Web. Too many sources online. Frustration with the guilt associated with not being better informed.

Dehumanization & Psychological Impacts


Isolation and the Internet

Impacts on Health & Safety


Job Stress Repetitive Strain Injuries Ergonomics
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IS & the Individual


+ E-Government

Social Impacts
Opportunities for People with Disabilities Quality of Life Improvements
Potential positive uses of Robots
E.g., Case: Laying Fiber Optic Cables. E.g., Case: Cleaning Train Stations in Japan

Improvements in Health Care Crime Fighting and Other Benefits

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Technology & Crime


One of the major debates surrounding IT involves situations in which police are using technology to reduce crime.
Scanning Crowds for Criminals. Casinos use face recognition systems to identify undesirables. The U.K. police have, since 1998, been using a similar system in East London borough with 300 cameras. Many banks, gas stations, convenience stores, and even elevators use the system.

Cultural Lag
Cultural Lag Thesis:
An inherent conflict exists between the rapid speed of modern technological advances and the slower speed at which ethical guidelines for utilization of new technologies are developed. A failure to develop broad social consensus on appropriate applications of modern technology may lead to;
breakdowns in social solidarity the rise of social conflict.

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IT & Society
three different views on how IT and society are changing one another: View #1: Becoming socialized means learning what kinds of behavior are appropriate in a given social situation. View #2: Newly internetworked IT allows people acting in their own selfinterest to indirectly affect the experiences of other people. View #3 There is a move away from a hierarchical society into a society in which boundaries are more permeable.
glocalization- simultaneously being intensely global & intensely local

Virtual Society
The term virtual society refers to all components that are part of a societys culture based on the functional rather than the physical structure.

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IT & Employment Levels


A major attribute associated with automation is the replacement of people by machines. There is no doubt that many people have been displaced by automation, but many more have gained employment due to automation.
Computers encourage competition, which leads to a decline in prices. Lower prices mean higher demand, which, in turn, creates more jobs. The computer industry itself has created millions of new jobs.

Is Mass Unemployment Coming?


Massive Unemployment Will Come
Benefit/ cost advantage of computers increases with time. Less skilful employees are needed. Shifting displaced employees to services is getting difficult. Many employees lost their jobs in the 1990s. Hidden unemployment exists in many organizations. E-commerce will cause millions of intermediaries/ agents to lose their jobs.
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No Massive Unemployment
New occupations and jobs have always been created by automation. There is much less unemployment in countries that use more automation. Work can be expanded to accommodate everyone. Conversion to automation is slow, and the economy can adjust. Many tasks cannot be fully automated. There will always be some areas where people are better than machines.
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Digital Divide
Digital Divide the gap between those that have information technology and those that do not.
Within countries and among countries. In 2001, only 5 % of the worlds population used the Web, and the vast majority of this 5 % was located in the developed world. Yet the Web has the potential to turn poor countries such as India into economic powerhouses & dissolve rigid social barriers. Cyber cafes - One instrument for closing the digital divide.

Globalization & Free Speech


International Implications
Many countries, willingly or unwillingly, knowingly or unknowingly, are being westernized as a result of information about western ways of life and values flowing freely across borders.

Challenge to Free Speech


The problem of Internet pornography is very serious Some countries take an entirely different line with respect to freedom of speech

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Social Responsibility
Social Responsibility.
Organizations need to be motivated to utilize IT to improve the quality of life in the workplace.

Virtual Community
A virtual community is one in which the interaction is done by using the Internet. Also known as an Internet community or an electronic community. An Internet community may have millions of members and as a result could have significant effects on e-markets.
GeoCities (geocities.com) has grown to many million members in less than two years.

Social Services and Privacy.


Conflicting public pressures may rise to suppress the use of IT because of concerns about privacy and Big Brother government.
E.g. Hong Kong ID Cards

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Elements of the Virtual Society


Category
Communication

Types of Virtual Communities


Communities of Transactions - facilitate buying and selling. Communities of Interest or Purpose - people have the chance to interact with each other on a specific topic.
Rugby365.com gets rugby fans, and music lovers go to mp3.com.

Element Bulletin boards, Chat rooms\threaded discussions (string Q&A), E-mail and instant messaging, Private mailboxes, Newsletters, Web postings, Voting Directories and yellow pages, Search engine, Membergenerated content, Links to information sources, Expert advice E-catalogs, e-shopping carts, Advertisements, Auctions of all types, Classified ads, Bartering online, Classified advertisement mail and instant messaging
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Information

Communities of Relations or Practice - are organized around certain life experiences, situation, or vacations. Communities of Fantasy - participants create imaginary environments.

E-Commerce Element

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Business Aspects of E-communities


Value creation arises in virtual communities because the community brings together consumers of specific demographics and interests. This presents opportunities for transacting business, and for communicating messages about products and services. E-communities can attract advertising revenues from advertisers eager to communicate their messages to a specific target audience. Opportunities also arise for collecting valuable marketing information.

Value Creation in Virtual Communities

demographics and psychographics of members


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The IRM Model Information Resource System

INPUT

PROCESS

OUTPUT

FEEDBACK

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Lessons Learned
The major concern of most organizations today is how to transform themselves to a new organization adaptable to the new economy. The key to survival is the ability to properly and quickly adapt to changes in the environment. Change in the business environment is demonstrated not only in the increased competition and globalization, but also in industry structures, distribution channels, production systems, and more. IT can also save organizations, helping them to adjust and survive. IT is the major driver of the new economy.
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Digital Economy Ready


Actions organizations can take to become digital-economy ready;
Build strategic information systems and use innovations such as electronic auctions and exchanges. Create effective and efficient communication and collaboration networks. Examine possible new models and initiatives of e-commerce Examine supply chains. Make a continuous effort to increase productivity, quality, security, and effectiveness in every facet of the organizations operations.

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Digital Economy Ready (cont.)


In moving to a digital-economy-ready status, carefully plan IT systems in coordination with the business plans they intend to support. Increase recognition of knowledge, its creation, preservation, storage, and dissemination. Support managerial decisions with IT and especially the Web. Have the ability to process a large amount of data. Facilitate innovation and creativity in digital economy applications by using intelligent systems.

Digital Economy Ready (cont.)


Carefully address the economies of IT in general and e-commerce in particular, including outsourcing, when moving to the new economy. Properly build and deploy information systems that will provide for internal efficiency and connect to the many business partners. Manage the increasing information resources in both business units and a centralized IS department. Address organizational, personal, and socioeconomic issues associated with the increase use of IT.

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Managerial Issues
Supporting the disabled. Culture is important. The impact of the Web. Making money from electronic communities.

Jack Welchs Three Stages of Globalization


1.We sell our product there 2.We make and sell our product there 3.We source the intellect there, sell products everywhere I saw a chart this morning in our lighting business. Average cost of an engineer: $150,000 in Wheeler Park in Cleveland,Ohio.The average price in our R&D center outside Shanghai:$17,000. Average price in India: $12,000 Ph.Ds.; Hungary:$24,000. Gartner:Stage 4: You get a nice CEO for $100,000!
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Information anxiety may create problems. IT can cause layoffs.

Perception of Global Business Change


Q: Where do you live? A: California Q: Where do you work? A: San Jose,California Q: What is your job title? A: CEO Q: Where are your offices located? A:USA,Austria,Sweden,Italy,Malaysia,Singapore,China,Mexico Q:What is your company revenue? A:$3 billion last quarter Q:What is your company name? A:Flextronics Q:Where is your corporate headquarters? A:Singapore!
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