Furthermore, within the next several years, NTT DoCoMo wish to achieve controlling home automation systems by displaying security monitor images on the cellular terminal displays. Hence, on the way home from work, customers will be able to connect to home automation systems and turn on appliances such as lights and air conditioners through their cellular terminal displays. They can also check the contents of their refrigerators and the expiration dates of products on the shelves and order supplies as well as pay for them with electronic wallets.
3 Relationship between IT & business/Individuals/ Society
3.1 Advantages & Disadvantages of IT
General
Information Technology has become a major component on people and on their lives at the work place in the 21st century. Accordingly, companies do business differently after the arrival of the digital economy. These changes based on IT indeed reconstruct our society as a whole. While our society generally embraces Information Technology and Systems, it is vital to really consider both the positive and negative impacts IT have on business, individuals and society. So that it is possible that humankind have control over the deploying of technology instead of technology have a hold over us. Details of the advantages and disadvantages that IT might have on different areas will be addressed below.
3.2 Impacts on Business
There are many changes IT has brought for the organizations. According to Turban, Mclean and Wetherbe, those changes can be divided into several areas as: the manager’s job; structure, authority, power, job content; and personnel issue. (Turban, Mclean and Wetherbe 2004, Chapter 16)
The Manager’s Job
Turban, Mclean and Wetherbe suggested that IT has changed the manager’s job in decision making process and leadership style. They stated that the most probable areas of organizational change are (Turban, Mclean and Wetherbe, 2004):
- Automation of routine decisions
- Less expertise required for many decisions
- More rapid identification of problems and opportunities (Huber, 1990)
- Less reliance on experts to provide support on top executives
- Empowerment of lower and middle levels of management due to knowledge bases
- Decision making undertaken by non managerial employees
- Power redistribution among manages, and power shifts down the organization. Fewer organizational levels typically are required to authorize action (Huber, 1990).
- Organizational intelligence that is more timely, comprehensive, accurate, and available (Huber, 1990).
- Electronic support of complex decisions
These points conclude that IT has reduced a large amount of time that managers use in the decision-making process. For instance, a manager of NTT DoCoMo might need two personal assistances to do a market research for two weeks on the new i-mode project before setting it up to the actual market. Through the help of web-based intelligent agent, the manager can now do it by himself with a shorter scale of time. As well, during the awaiting of information gathering process, the manager is able to work on the other new research and development project. Cost and time on work undoubtedly decline because the resultant job efficiency by the implementation of Information Technology in this scenario.
However, IT may have negative impacts on another major duty of managers. The leadership style in old time might through the interpersonal communication such as face-to-face channel. In 2004, it is more likely that a manager of NTT DoCoMo communicate with subordinates through e-mail and computerized conferencing. The lack of physical appearance might lessen the effectiveness during the communication process nowadays. As Goleman mentioned that “interpersonal skills… emotional intelligence—the capacity to manage emotions well—is twice as important to success in the workplace as IQ and expertise” (Goleman, 1998). Therefore, it is recommended that the managers pay attentions on their leadership qualities because interpersonal skills on workplace determine the success in the workplace.
Structure, Authority, Power, Job Content, Employee Career Ladders & supervision
A list of impacts of IT from Turban, Mclean and Wetherbe’s theory (2004, Chapter 16) is summarized below. This list is able to demonstrate quickly the meaning of IT may change organizations in its structure, authority, power, job content, employee career ladder and supervision. Many of those impacts in organizations ignite chain reactions on individuals at work. Thus, the scenario of NTT DoCoMo will be brought in on Section 3.3 to best draw the relationship between them.
(Turban, Mclean and Wetherbe, Chapter 16, Table 16.1 & 16.2)
3.3 Impacts on Individuals at Work
“Reduce in the total number of employees, reengineering of business processes, …may result in flatter organizational hierarchies.” (Turban, Mclean and Wetherbe, Chapter 16, Table 16.1 & 16.2) It is predicted that computer intelligence and automation will be capable of replacing almost all labors of the human body within the next fifty years. (totes.com August 28th, 2004) Technology reduces jobs and save cost for the organizations. Headlines such as “SONY to cut 20,000 jobs to reduce costs” (ComputerWeekly.com August 29th, 2004), “HSBC cuts 3,500 management jobs to reduce costs” (ce.cn August 29th, 2004), and “Telstra Puts Profits before Jobs” (Meryment & Heywood, August 29th, 2004) can be read on the newspapers and magazines all the time. As a result, information technology and system indirectly creates frenzy. Individuals at workplace might be unmotivated because the great potential to lose their jobs. In old days, when NTT DoCoMo has a new promotion to its customers, it normally hires a crew of staff into its call center unit, and informs customers through phone calls or mails. In this day and age, different approach is taken. NTT DoCoMo as a leading telecommunication company may just inquire its computer technicians to employ the use of SMS service through mobile to automatically send the promotion information to all its customers. The organization may then save time, cost, and labour in this particular case.
Turban, Mclean and Wetherbe noted four major possible impacts of individuals at work. They are the job dissatisfaction, dehumanization and psychological impacts, information anxiety, and impacts on health and safety. (Turban, Mclean and Wetherbe, August 27 2004) It is proposed that the implementations of IT might result job dissatisfaction because jobs may become more routine and dissatisfying.
This might lead to the second impact, dehumanization and psychological impacts. For instance, during the working hours, many employees face the computer screens all the time. Psychologically, they might feel a loss of identity because of the heavily computerization. In the health perspective, computer vision syndrome might occur “when the viewing requirements of the task being performed exceed the visual capabilities of the person performing the task” (Quible 2001)
Nowadays, corporations have computer software to monitor e-mails, phone conversations, and web-surfing of their employees. Among other things, video surveillance, GPS tracking of company cars, and even the use of infrared badges to determine employee location are methods that have come into play in the workplace. (AMA.com) In psychological aspect, the increasingly intrusive hiring practices to continuous information gathering may also increase the level of uncomfortable feelings or insecurity of individuals at workplace. Or worse to worse, the security guard who has access to the computer spying software program in NTT DoCoMo is currently suffering from severe depression. Due to the permission to spy all employees of the company, he or she now has a easier channel to create harms to others.
3.4 Social Impacts
According to Turban, Mclean and Wetherbe’s theory, both good and bad social implications of IT has shown its impacts on society. Key areas such as opportunities for people with disabilities, quality of life improvements, improvements in health care and crime fighting and so on will be discussed in further details underneath.
The integration of artificial intelligence technologies, such as voice-operate keyboard creates new employment opportunities for people with disabilities. (Turban, Mclean and Wetherbe, Chapter 16) They are now able to work from home for NTT DoCoMo.
With i-mode service NTT DoCoMo has provided to its subscriber, “cellular phone users get easy access to more than 82,000 Internet sites, as well as specialized services such as e-mail, online shopping and banking, ticket reservations, and restaurant advice.” (NTT DoCoMo, 28th August 2004) It improves the quality of life with a reasonable price offer.
4 Major Business Pressures / Responses
4.1 Pressures
The external environment of business consists of many factors that might generate pressures on organizations. Turban, Mclean and Wetherbe in their book Information Technology for Management focuses on three business pressures –market pressures, technology pressures and societal pressures. (Turban, Mclean and Wetherbe, 2004 Chapter 1)
- Market pressures
By the facilitation of advanced telecommunication networks especially by the Internet, the globalization has become a phenomenon everywhere in business practice. Global competition, changing workforce, powerful consumers are the pressures organizations must face if they seriously consider the expansion of their industrial market. To stand on NTT DoCoMo’s position, “Japan's cellular phone market has grown faster than any other market of its kind in the world. By July 2004, Japan had 83 million subscribers - more than half its entire population” with NTT DoCoMo. (NTT DoCoMo, August 28th 2004). This figure does not guarantee the current subscribers will stay forever with NTT DoCoMo. Possible global competition rival such as AT&T might recognize the great potential on Japan’s cellular market one day. Moreover, consumers nowadays are more knowledgeable about the availability and quality of products and services. On the Web, people can easily compare prices and services between different service providers.
- Technology pressures
Telecommunication is a fast growing industry. Today’s hot products and services may be obsolete tomorrow. Hence, technology accelerates the competitive forces. To be an industrial pioneer once does not assure organizational profits always Technological innovation is needed all the time for organizations. In another way, information overload is a key area of technology pressure for all organizations and individuals due to the massive free information availability on the Web.
- Societal pressures
Turban, Mclean and Wetherbe include issues such as social responsibility, government regulations, deregulation, spending for social programs, and ethics as important societal pressures for organizations. (Turban, Mclean and Wetherbe, 2004 Chapter 1) Detailed discussion in this area will be revealed in the following section – corporate responses.
4.2 Responses
Environmental factors as mentioned above alter the way organizations do business dramatically. It creates sophistications. As Turban, Mclean and Wetherbe has stated in the prescribed textbook for this subject, strategic systems for competitive advantage, continuous improvement efforts, business process reengineering (BPR), business alliances, and electronic commerce are the new solutions for today’s external environment. NTT DoCoMo as a pioneered company in its industry will be implemented to further show how those external pressures may be overwhelmed.
Continuous Improvement Efforts
NTT DoCoMo recognizes those potential risks to its business in corresponds to the market pressures. Although they realize that soon the regional cellular phone market will become saturated, they still focus on expanding offerings, with low fees and charges. Simultaneously, they increase the quality of the service in order to remain the current customers. Currently, NTT DoCoMo is engaged in joint developments with IBM Japan to create a video transmission control system, with Nokia to promote open mobile architecture, with IBM Lotus Software to promote corporate usage of W-CDMA-based 3G FOMA services, and with Oracle to develop advanced mobile business solutions. They believe that 3G services will revolutionize the way people conduct their business and personal lives. Thus by creating joint research effort will keep the company’s technology up to date.
Business alliances
NTT DoCoMo is promoting i-mode, third-generation W-CDMA technology, and multimedia services to the world. They work together with other leading organizations in a manner that allows know-how and experience to be shared for the maximum benefit of all. They make financial contributions to a wide range of organizations, offer their proprietary technologies for licensing, and work in a highly collaborative manner.
Strategic Systems for Competitive Advantage
NTT DoCoMo has developed a strong competitive advantage by forming application partnerships that extend far beyond the realm of telecommunications. These partnerships add to the appeal of DoCoMo's products and services; they also add value for all partners, because better i-mode applications attract more customers, and therefore increase revenues and profits.
A recent example of value-adding software developed with a partner is i-appli, enabled by Sun Microsystems' Java technology. NTT DoCoMo has also been engaged in the joint development of new 3G services with prominent application vendors around the world.
5 Components of E-Commerce
According to the definition of electronic commerce by AbsoluteBusiness.com,
“Electric commerce: the conducting of business communication and transactions over networks and through computers. Specifically, ecommerce is the buying and selling of goods and services, and the transfer of funds, through digital communications.” (AbsoluteBusiness.com, 1 September 2004)
However, Turban, Mclean and Wetherbe have defined it in a broader way.
“not just the buying and selling of goods and services, but also servicing customers, collaborating with business partners, conducting e_learning, and conducting electronic transactions within an organization” (Turban, Mclean and Wetherbe 2004, p.177)
Turban, Mclean and Wetherbe have also drawn a framework for e-commerce. It shows that the electronic commerce applications are supported by infrastructure and by five support areas. That is to say, there are five components – people, public policy, marketing and advertising, support services, and business partnerships – for an e-commerce application. Also, the supporting infrastructure includes hardware, software, and networks, ranging from browsers to multimedia. (Turban, Mclean and Wetherbe 2004, p.180)
- People
Turban, Mclean and Wetherbe defines people as the “sellers, buyers, intermediaries, information systems specialists and other employees, and any other participants.” (Turban, Mclean and Wetherbe 2004, p.180)
- Public Policy
Turban, Mclean and Wetherbe defines public policy as the “legal and other policy and regulating issues, such as privacy protection and taxation, that are determined by the government.” (Turban, Mclean and Wetherbe 2004, p.180)
- Marketing and Advertising
Turban, Mclean and Wetherbe defines marketing and advertising as “like any other business, EC usually requires the support of marketing and advertising. This is especially important in B2C online transactions where the buyers and sellers usually do not know each other.” (Turban, Mclean and Wetherbe 2004, p.180)
- Support Services
Turban, Mclean and Wetherbe defines support services as “many services are needed to support EC. These range from payments to order delivery and content creation.” (Turban, Mclean and Wetherbe 2004, p.180)
- Business Partnership
Turban, Mclean and Wetherbe defines business partnership as the “joint ventures, e-marketplaces, and business partnerships of various sorts are common in EC. These occur frequently throughout the supply chain (i.e., the interactions between a company and its suppliers, customers, and other partners). (Turban, Mclean and Wetherbe 2004, p.180)
5.6 Impact of IT on E-commerce Components
NTT DoCoMo start trial on one of the most important factor that might determines a faster growth of e-commerce – the online payments service. People normally see online purchasing an insecure method. NTT DoCoMo however, enables its customers using its 2G and 3G handsets to enjoy on-line shopping at a dedicated portal site and receive bills for purchases together with their monthly mobile phone invoices. NTT DoCoMo expects the new payment service, available to over 38 million i-mode users, to help stimulate mobile e-commerce growth. Without another important component of e-commerce, EDI, NTT DoCoMo is not able to transfer business documents within its business partners.
E-commerce web site such as Yahoo!.com requires advertising support. The web site itself does not generate revenue through its users. Rather, they put banner ads, pop-ups, and customized ads for companies to achieve its advertising purpose.
6 Networked Computing
Definition of Networked computing is – connects several computers and other electronic devices via telecommunication networks (Lecture Notes Week 1 Chapter 1)
6.1 Roles in Business Environment
Networked computing plays an important role in business environment. Network technology enables users to reach other users and access databases anywhere in the organization. It provides interactions between internal as well as external users of the network. Users in the same network is now able to share information on the real time. It helps providing the e-commerce service to customers because if computers are not networked together, it is impossible to make business becomes e-commerce.
- Components of Network Computing
The components of network computing are the hardware, software, service providers, internet, intranet, and extranet. Without computer hardware for input and output, users can not eve read and use computers as a tool. The software requirement for network computing is standards these days. Almost all operating systems include network sharing and configurations. Hence, those are the basic necessity not to just network computing, but to use computer as a tool in business. The Internet, however, is a global network of computer networks that links the computing resources of business, government, and educational institutions using a common computer communication protocol, TCP/IP. Companies may pay the service provider to set up an official protocol for both internal and external users to access its resources online.
6.3 Network Infrastructures NTT DoCoMo adopt to achieve its Information Systems and Technology Goals
Infrastructure is the basic requirement to make the computer system work. There are four major infrastructures of network computing – the Internet, the Web, the intranet and the extranet. NTT DoCoMo adopt the intranet which confined to an organization for its internal use. Also, they adopt extranet which allows secure communication among business partners over the Internet through its i-mode mobile service and offer the users opportunities to do e-commerce through its network. By providing i-mode service, users are now able to get access from remote location with security. This is how NTT DoCoMo maximize the profit through its network infrastructure.
7 Reference List
“AbsoluteBusiness.com: Glossary”, (unknown last update), (AbsoluteBusiness.com) Available: (Accessed 2004 September 3)
Goleman, D. (1998). Working with emotional intelligence. New York: Bantam Books
“HSBC cuts 3,500 management jobs to reduce costs”, (2004 June 18 – last update), (ce.cn) Available: (Accessed: 2004 August 29)
“Information technology for management : Chapter 16”, (unknown last update), (John Wiley & Sons Inc.), Available: (Accessed: 2004 August 27)
“NTT DoCoMo: Company Overview”, (2004 May 21 – last update), (NTT DoCoMo), Available: (Accessed: 2004 August 25)
“NTT DoCoMo: What is i-mode”, (2004 May 21 – last update), (NTT DoCoMo),Available: (Accessed: 2004 August 28)
“NTT DoCoMo: Evolutionary Service”, (2004 August 18 – last update), (NTT DoCoMo),Available: (Accessed: 2004 August 28)
“People Facts: Japan Population Changes 1970 – 2050”, (2001 December 30 – last update), (os-connect.com), Available: (Accessed: 2004 August 27)
Quible, Z.K. (2001) Administrative Office Management: An Introduction.7th. ed., Prentice Hall, Upper Saddle River, New Jersey
“Sony to cut 20,000 jobs to reduce costs”, (2003 October 29 – last update), (ComputerWeekly.com) Available: (Accessed: 2004 August 29)
“Telstra Profits Surge”, (2000 March 9 – last update), (ourcivilisation.com) Available: http//www.ourcivilisation.com/decline/jobs/Telstra.htm (Accessed: 2004 August 29)
“The Naked Employee: How Technology Is Compromising Workplace Privacy”, (unknown last update), (AMA), Available: (Accessed: 2004 August 28)
“The Theory of Advanced Mechanization and Automation of Modern Society”, (unknown last update), (totes.com) Available: (Accessed: 2004 September 3)
Turban, E, Mclean, E & Wetherbe, J 2004, Information technology for management, 4th edn, Wiley USA.
“World’s 400 Best Big Companies”, (2003 April 10 – last update), (Forbes.com), Available: (Accessed: 2004 August 25)