Chapter 1

Business Driven Technology

1) Role of Information Technology’s In Business

·         Information technology is so important to anyone and organization of business.

2) Information Technology Impacts on Business Operations.

    Business Function Receiving the Greatest Benefits from Information Technology

·         Customer Service

·         Finance

·         Sales And Marketing

·         IT Operations

·         Operation Management

·         HR

·         Security

    Information Technology Projects Goal

·         Reduce Cost/Improve Productivity

·         Improve Customer Satisfaction/Loyalty

·         Create Competitive Advantage

·         Generate Growth

·         Streamline Supply Chain

·         Global Expansion

    Common Departments in an Organization

·         Account

·         Marketing

·         Human Resource

·         Management Information Systems

·         Sales

·         Operations Management

·         Finance

·         Production Management

Ø  organizations typically operate by functional areas or functional silos

Ø  functional areas are interdependent

Information technology basics

·         Information technology – a field concerned with the use of technology in managing and processing information

      Information technology is an important enabler of business success and innovation

·         Management information system (MIS) – a general name for the business functions and academic discipline covering the applications of people, technologies and procedures to solve business problem

      MIS is a business function, similar to Accounting, Finance, Operations and Human resources.

·         When beginning to learn about information technology it is important to understand

      Data, information, and business intelligence IT resources

      IT cultures

Ø  Data – raw facts that describe the describe that characteristics of an event

Ø  Information – data converted into meaningful and useful context

Ø  Business intelligence – applications and technologies that are used to support decision-making efforts

Information Technology Resources

Ø  People use information technology to work with information

Information technology Cultures

Ø  Organizational information cultures include:

·         Information-Functional Culture – Employees use information as a means of exercising influence or power over others.

      For Example; a manager in sales refuses to share information with marketing

      This cause marketing to need the sales managers’ input each time a new sales strategy is developed.

·         Information-Sharing Culture – Employees across departments trust each other to use information (especially about problems and failures) to improve performance.

·         Information-Inquiring Culture - Employees across departments search for information to better understand the future and align themselves with current trends and new directions

·         Information-Discovery Culture- Employees across departments are open to new sights about crisis and radical changes seek ways to create competitive advantages.