CHAPTER 1

BUSINESS DRIVEN TECHNOLOGY

 

LEARNING OUTCOMES

• Compare management information systems (MIS) and information technology (IT).
• Describe the relationships among people, information technology, and information.
• Identify four different departments in a typical business and explain how technology helps them to work together.
• Compare the four different types of organizational information cultures and decide which culture applies to your school.

INFORMATION TECHNOLOGY'S ROLE IN BUSINESS

 -Information technology is everywhere in business

INFORMATION TECHNOLOGY'S IMPACT ON BUSINESS OPERATIONS

1. Business Functions Receiving the Greatest Benefits from Information Technology

Customer sevices               70%

Finance                               51%

Sales and Marketing           42%

IT operations                      39%

Operations management     31%

HR                                      17%

Security                               17%

2. Information Technology Project Goals 

Reduce costs/ improve productivity        81%
Improve customer satisfaction/ loyalty   71%
Create competitive advantage                 66%
Generate growth                                      54%
Streamline supply chain                           37%
Global Expansion                                     16%

3. Common Department In An Organization

• Organizations typically operate by functional areas or functional silos
• Functional areas are interdependent

INFORMATION TECHNOLOGY BASICS

What is Information Technology (IT)???

IT - a field concerned with the use of technology in managing and processing information.

     - is an important enabler of business success and innovation. 

What is Management Information Systems (MIS)??? 

MIS - a general name for the business function and academic discipline covering the application of               people, technologies, and procedures to solve business problems. 

        - is a business function, similar to Accounting, Finance, Operations and Human Resources. 

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

1. Data - raw facts that describe the characteristic of an event.

DATA IN AN EXCEL SPREADSHEET

2. Information - data converted into a meaningful and useful context. 

DATA TURN INTO INFORMATION

3. Business Intelligence - applications and technologies that are used to support decision-making efforts. 

INFORMATION TURNED INTO BUSINESS INTELLIGENCE

4. IT Resources

• People use
• Information technology to work with
• Information

5. IT Cultures

Organizational information cultures include: 

• Information-Functional Culture

          Employees use information as a means of exercising influence or power over others. 

• Information-Sharing Culture

          Employees across departments trust each other to use information to improve perfomance. 

• 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 insights about crisis and radical changes and               seek ways to create competitive advantages.