heygen_uk.txt

Welcome to the first unit of the video lecture series on the fundamentals of business informatics. Today, we will broadly discuss the discipline of business informatics and examine three related topics. Firstly, the concept of digital transformation, then what constitutes an information system and the topics that business informatics deals with. Why is this topic relevant for you in the study of business at all?  
Let’s take a look at global IT expenditures, where we can clearly identify an increasing trend and also see a sharp rise in expenditures around the beginning of the COVID-19 pandemic. Additionally, we can observe that these expenditures do not return to their original levels. Let’s take a look at the press review, where the topic of digitalization is repeatedly discussed. Government services are expected to be increasingly enabled digitally in the future. Technology is integrated into your home through smartphone applications and digitalisation creates growth, new value creation and new jobs. And in the recent announcement by the president of the Austrian computer society it is important to engage with this topic. We can see that IT is an omnipresent topic that has become embedded in our society. Nowadays we might book and share our cars through a platform, we listen to music via streaming service provider and we can relatively easily equip our own four walls with smart technology. And for this reason, the first point we will discuss here is the digital transformation. 
We will first look at the definition of the term, then delve into the three dimensions of digitalization and then consider the challenges and issues that are particularly relevant in the context of digitalisation in business and society. Let's look at the definition by Leimeister of what digitalisation is and what is understood by digitalisation. If we take a closer look, we see that digitalisation is understood as the changes and the outcomes in all parts of human society that arise from the increased application of digital technologies. Yes, and coming from this definition, we can now look at these three dimensions of digitalization here according to Leimeister. And if we look at that, we have these three dimensions with the external focus, the internal focus and the result, the result being a smart product or service which together form the digital business. 
Let's take a closer look at this. First dimension, internal focus, the x-axis. This concerns digital processes within and between companies, which are also supported by Information Systems. And these are primarily processes, that take place in the background, backstage processes, that can be supported and also changed through digitalisation. And this is especially true in the German-speaking area of business informatics, where process management and business process management or coo fields. We will hear more about this later and an example of this would be the support provided by an Erp system, enterprise resource planning system, which we will also discuss further later on. But through such a system, through such an information system business processes in the company can now be supported. This is the first dimension, this internal focus on backstage processes, the processes that take place within and also between companies.
All right and if we move on to the second dimension, the external focus, it is primarily about the interface with the customer. The design of offerings in terms of their users’ front stage. Here we take into account the requirements of customers and the key term would be this user-oriented approach. Here too, in the example image the configurations of a product are explicitly tailored to the customer and yes, these configuration systems are indeed a means of customisation. This is the second dimension of the external Focus. 
And if you then move on to the third dimension the z-axis towards the back with the smart product and service, it concerns a new aspect of the digitalisation of a performance outcome. What does that mean? Now if you look at the picture here with Lego the child is playing quite normally with Lego maybe with an analog instruction manual but we're through digitalisation and perhaps a mobile device through a QR code that I can scan somewhere can I further expand the result. I can supplement it and thereby perhaps control the mission via an iPad and assemble this toy through this mission. So, this would also be the key word here with second screening, this Lego construction kit, that is being expanded here. So, it is mainly about this aspect that through digitalisation I can simply expand and complement the product, which is already available in an analog form, whether it is the product itself or the service. 
Yes, so to summarize once again these three dimensions external Focus, internal focus and 2001 lead to the results of the digital business and this now offers us opportunities to think in these dimensions, to develop strategies as a company. And also, to say as a company okay, we want to position ourselves explicitly in this one dimension or we want to try to position ourselves in all dimensions and all of this, this digitalisation, this topic of the possibilities it offers changes business models, provides new opportunities to conduct and implement new business models and alters the value creation of products and services. 
Next, we will look at the challenges and issues of digitalization. There are simply buzzwords, that are repeatedly used and appear in the media and everywhere. And if we take a closer look for example there is one of these passwords is cloud computing 2001. Many services are outsourced and data processing is outsourced to service data centres. This means that it is a challenge and also a possible new business model and a business model that is also being driven forward. Similarly, the internet of things. You have your smart fridge at home or your connected intelligence components in the household. All this brings new potential and also new challenges that need to be addressed. Similarly, all the data volumes that arise, Big Data, which is a term often used in this context, need to be managed, processed and can then especially be used for analysis to make better forecast.
Next topic, IT security in 2001, a topic that is becoming increasingly relevant simply put cybercrime is ubiquitous in this context and is becoming increasingly prevalent we need to take care of this and also ask the question: Are our data secure? Are they being safely stored? What do I do in the event of an attack or in the event of data loss? I need to solve all these issues. Exactly and of course one topic, artificial intelligence, is currently being very prominently covered in the media. Agents that assist us in making decisions, agents that might possibly also handle private vacation bookings in the future but also agents that support us in making business decisions, all this holds potential on one side but also dangers and these challenges must of could be faced and resolved. Furthermore, augmented reality, virtual reality, this topic of expanding the visual environment and integrating it into the work environment is something that offers a lot of potential and many new possibilities. And similarly, here, the question is: How will the environment change in this regard? Yes, and blockchain for example, as a new concept which could and will change the banking sector and the way we manage transactions. In the long-term, there are of course challenges and questions that certainly need to be addressed. Ultimately the question of sustainability and ethical computing arises where discussions need to be initiated. We need to consider how we handle data and how we can operate data centres sustainably, energy as well as data. Our precious resources here that means we need to ensure that this is used sustainably and ethically.