2. CHAPTER ONE OVERVIEW SECTION 1.1 – INFORMATION SYSTEMS IN BUSINESS
Information Technology’s Role in Business
Information Technology Basics
Roles and Responsibilities in Information Technology
Measuring Information Technology’s Success
SECTION 1.2 – BUSINESS STRATEGY
Identifying Competitive Advantages
The Five Forces Model – Evaluating Business Segments
The Three Generic Strategies – Creating a Business Focus
Value Chain Analysis – Targeting Business Processes

3. INFORMATION TECHNOLOGY’S ROLE IN BUSINESS

4. INFORMATION TECHNOLOGY BASICS
Information technology (IT) – a field concerned with the use of technology in managing and processing information
When beginning to learn about information technology it is important to understand the following:
Data, information, and business intelligence
IT resources
IT cultures

5. INFORMATION
Data - raw facts that describe the characteristic of an event
Information - data converted into a meaningful and useful context
Business intelligence – applications and technologies that are used to gather, provide access to, and analyze data and information to support decision- making efforts

6. IT RESOURCES People use Information technology to work with

7. IT CULTURES Organizational information cultures include:
Information-functional culture
Information-sharing culture
Information-inquiring culture
Information-discovery culture

8. ROLES AND RESPONSIBILITIES IN IT
Information technology is a relatively new functional area, having only been around formally for around 40 years
Recent IT strategic positions include:
Chief Information Officer (CIO)
Chief Technology Officer (CTO)
Chief Security Officer (CSO)
Chief Privacy Officer (CPO)
Chief Knowledge Office (CKO)

9. ROLES AND RESPONSIBILITIES IN IT
Skills pivotal for success in executive IT roles 9

10. MEASURING IT’S SUCCESS
Key performance indicator (KPI) – measures that are tied to business drivers
Efficiency IT metric – measures the performance of the IT system itself including throughput, speed, and availability
Effectiveness IT metric – measures the impact IT has on business processes and activities including customer satisfaction, conversion rates, and sell-through increases
Benchmarking – a process of continuously measuring system results, comparing results (benchmark values), and identifying improvements

11. THE INTERRELATIONSHIPS OF EFFICIENCY AND EFFECTIVENESS IT METRICS

12. What is MIS? M I S

13. What is MIS? I P O

14. Information Age?
What is information?
Value of Information
role of IT

15. What do businesses do? serving each customer’s unique needs
serve customers
mass customization
serving each customer’s
unique needs
No matter what type of business a company is in, they must service the needs of their customers.
Relatively new term, mass customization, indicates a process by which products and services can be tailored to the needs of individual customers. MCI mined their large data base to find calling patterns of their customers and is using that information to provide special plans to people based upon their calling habits.

16. Businesses must effectively use 3 key resources
information
technology
people
information
If using the animation, this slide can be used to create some interactivity. As images are brought up, students can be asked what they signify.
IT can be defined as a set of sophisticated tools.
to serve each customer

17. Customer Moment Of Value
Providing service:
when the customer wants it time
where the customer wants it location
how the customer wants it
form
in a manner guaranteed to satisfy the customer perfect delivery
Moment of Value is often abbreviated as MOV.
Amazon philosophy: Customers want to do business all the time. Business no longer operate from 8 to 5 and capitalized on that fact.
Ford makes cars in Asia in order to sell more cars in Asia. Location location location is a phrase typically associated with realtors especially when they are computed an appropriate selling price for a listing. The idea is that the most wonderful house in a terrible place won’t sell. But even an awful house in a wonderful area will sell. Some customers have the savvy or the money to fix up an awful house in a wonderful area. But, it takes years (if ever) to turn around an area no matter how nice the house.
Dreyer’s Grand Ice Cream Inc. uses the philosophy that the flavors sell the ice cream. So they strive to provide the right ice cream flavor to the right market.
All of these companies exhibit that all-important customer focus.

18. Role of IT To Know: time when customer’s moment of value occurs
location of customer’s moment of value
form of customer’s moment of value

19. right people right information right time KNOWLEDGE IT Helps Provide
We want knowledge and knowledge comes from having information.
IT is a set of tools that can help provide the right people with the right information at the right time.
Goal: best decisions possible about the time, location and form of the customer’s moment of value.
Gaining knowledge through information is the role of IT in today’s information –based business. IT is a set of tools that can be used to provide the right people with the right information at the right time. The goal is improved decision-making about the time, location and form of the customer’s moment of value.
KNOWLEDGE

20. IT Operates in:
the new business environment

21. Characteristics of New Business
Globalization
products from all over
foreign competition
trade blocs
GATT EU
NAFTA
factors affecting globalization include: privatization, deregulation, improved worldwide transportation and telecommunications, the emergence of transnational firms and trade blocs.
NAFTA has opened a market of 134,000,000 people in Chile, Canada and Mexico to US businesses. Is NAFTA a bug or a feature? like most things, there are aspects of each

22. Information – A Key Resource
today’s economy:
wants driven
need more info
large databases
data warehouses
knowing what people need isn’t enough because now they also buy what they want
information is needed on what people’s wants are
clip art is a stylized disk drive

23. E-Commerce hottest topic in business, today accelerated/enhanced by IT
home shopping, banking, etc.
EDI
competitive scanning
distributing info to prospective customers
e-commerce is often called the new business horizon
EDI – electronic data interchange
Both e-commerce and EDI are discussed at length in Chapter 5.

24. Knowledge Worker Computing
provides workers with:
technology
technology power
software
information
technology knowledge
another term used for knowledge worker is a “power user”

25. Characteristics of New Business
globalization
key resource: information
e-commerce
knowledge worker computing

26. Information Technology
information processing tasks
decision-making tasks
shared information & decentralized computing
innovation

27. Information-Processing Tasks
capturing information
conveying information
creating information
cradling information
communicating information

28. Shared Information & Decentralized Computing
access to all information by anyone
through technology spread across the organization

29. Innovation
do business in new ways
create a competitive advantage

30. Information – A New Key Business Resource
data
information
data that is related or summarized is transformed into information

31. Information Types internal external objective subjective
specific operational aspects
external
outside environment
objective
quantifiable description
subjective
attempt at description of unknown

32. Information-Literate Knowledge Worker
requisite skills:
define what information is needed
know how/where to get info
understand what it means
make appropriate decisions
maintain ethical and legal standards
knowledge workers outnumber others 4 to 1