BUSINESS DRIVEN TECHNOLOGY

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BUSINESS DRIVEN TECHNOLOGY UNIT 1 Achieving
Business Success Through Information
Technology OPENING CASE How Levis Got Its Jeans
into Wal-Mart
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Unit One

• The chapters in this unit include
• Chapter One Business Driven Technology Overview
• Chapter Two Identifying Competitive Advantages
• Chapter Three Strategic Initiatives for
  Implementing Competitive Advantages
• Chapter Four Measuring the Success of Strategic
  Initiatives
• Chapter Five Organizational Structures That
  Support Strategic Initiatives

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BUSINESS DRIVEN TECHNOLOGY Chapter One
Business Driven Technology Overview
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LEARNING OUTCOMES

• 1.1 Compare management information systems (MIS)
  and information technology (IT)
• 1.2 Describe the relationships among people,
  information technology, and information
• 1.3 Describe why people at different levels of an
  organization have different information needs

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CHAPTER ONE OVERVIEW

• Provides an overview of the units in the text
• Introduces important business and technology
  concepts

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UNIT 1 ACHIEVING BUSINESS SUCCESS THROUGH
INFORMATION TECHNOLOGY

• Unit 1 introduces several business strategies
  including
• Porters Five Forces
• Porters three generic strategies
• Value chain analysis
• Supply chain management
• Customer relationship management
• Enterprise resource planning
• IT efficiency and IT effectiveness metrics
• Organizational structures

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UNIT 1 ACHIEVING BUSINESS SUCCESS THROUGH
INFORMATION TECHNOLOGY

• Information technology (IT) any computer-based
  tool that people use to work with information and
  support the information and information-processing
  needs of an organization
• Information technology is an important enabler of
  business success and innovation

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UNIT 1 ACHIEVING BUSINESS SUCCESS THROUGH
INFORMATION TECHNOLOGY

• Management information systems (MIS) the
  function that plans for, develops, implements,
  and maintains IT hardware, software, and the
  portfolio of applications that people use to
  support the goals of an organization
• MIS is a business function, similar to
  Accounting, Finance, Operations, and Human
  Resources

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Types of Information Systems
Start
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UNIT 1 ACHIEVING BUSINESS SUCCESS THROUGH
INFORMATION TECHNOLOGY

• People use
• Information technology to work with
• Information

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UNIT 2 MANAGING INFORMATION FOR BUSINESS
INITIATIVES

• Unit 2 introduces
• Information quality
• Databases
• Database management systems
• Data mining
• Data warehouses

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UNIT 2 MANAGING INFORMATION FOR BUSINESS
INITIATIVES

• Organizations must manage information properly.
  That is, an organization must
• Determine what information it requires
• Acquire that information
• Organize the information in a meaningful fashion
• Assure the information's quality
• Provide software tools so that employees
  throughout the organization can access the
  information they require

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UNIT 2 MANAGING INFORMATION FOR BUSINESS
INITIATIVES

• At the heart of all management information
  systems is a database and DBMS
• Database maintains information about various
  types of objects (inventory), events
  (transactions), people (employees), and places
  (warehouses)
• Database management system (DBMS) software
  through which users and application programs
  interact with a database

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UNIT 2 MANAGING INFORMATION FOR BUSINESS
INITIATIVES

• There are two primary ways that users obtain
  information from a database
• Direct user interaction
• Indirect user interaction

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UNIT 3 ENHANCING BUSINESS DECISIONS

• Unit 3 introduces the role of IT in strategic
  decision making and covers
• Data marts
• Data-mining tools
• Digital dashboards
• Supply chain management (SCM)
• Customer relationship management (CRM)
• Enterprise resource planning (ERP)

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UNIT 3 ENHANCING BUSINESS DECISIONS

• Business intelligence, gained through OLTP and
  OLAP, enables organization to make strategic
  business decisions
• Business intelligence a broad, general term
  describing information that people use to support
  their decision-making efforts
• Online transaction processing (OLTP) the
  capturing of transaction and event information
• Online analytical processing (OLAP) the
  manipulation of information to create business
  intelligence in support of strategic decision
  making

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UNIT 3 ENHANCING BUSINESS DECISIONS
Start
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UNIT 3 ENHANCING BUSINESS DECISIONS

• Organizational employees have unique information
  processing and analyzing needs

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UNIT 3 ENHANCING BUSINESS DECISIONS

• Many organizations use data warehouses and
  data-mining tools to support strategic decision
  making
• Data warehouse a logical collection of
  information gathered from many different
  operational databases that supports business
  analysis activities and decision-making tasks
• Data-mining tools use a variety of techniques
  to find patterns and relationships in large
  volumes of information and infer rules from them
  that predict future behavior and guide decision
  making

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UNIT 4 CREATING COLLABORATIVE PARTNERSHIPS IN
BUSINESS

• Unit 4 focuses on IT support for collaborative
  partnerships, both internal to an organization
  and external with its business partners and
  suppliers
• Unit 4 covers
• Collaboration systems
• Information partnerships
• Outsourcing

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UNIT 4 CREATING COLLABORATIVE PARTNERSHIPS IN
BUSINESS

• Organizations create and use teams, partnerships,
  and alliances to
• Undertake new initiatives
• Address both minor and major problems
• Capitalize on significant opportunities
• Organizations create teams, partnerships, and
  alliances both internally with employees and
  externally with other organizations

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UNIT 4 CREATING COLLABORATIVE PARTNERSHIPS IN
BUSINESS

• Collaboration system supports the work of teams
  by facilitating the sharing and flow of
  information

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UNIT 4 CREATING COLLABORATIVE PARTNERSHIPS IN
BUSINESS

• Organizational collaboration systems include
• Groupware supports team interaction and dynamics
  including calendaring, scheduling, and
  videoconferencing
• Document management systems (DMS) supports the
  electronic capturing, storage, distribution,
  archival, and accessing of documents
• Knowledge management systems (KMS) supports the
  capturing and use of organizational know how
• Project management software supports long-term
  and day-to-day management and execution of a
  project

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UNIT 4 CREATING COLLABORATIVE PARTNERSHIPS IN
BUSINESS

• Organizations form alliances and partnerships
  with other organizations based on their core
  competency
• Core competency is an organizations key
  strength, a business function that it does better
  than any of its competitors
• Core competency strategy an organization chooses
  to focus specifically on its core competency and
  forms partnerships with other organizations to
  handle nonstrategic business processes

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UNIT 4 CREATING COLLABORATIVE PARTNERSHIPS IN
BUSINESS

• Information technology can make a business
  partnership easier to establish and manage
• Information partnership occurs when two or more
  organizations cooperate by integrating their IT
  systems, thereby providing customers with the
  best of what each can offer
• The Internet has dramatically increased the ease
  and availability for IT-enabled organizational
  alliances and partnerships

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UNIT 5 TRANSFORMING ORGANIZATIONS

• Unit 5 explores the power of IT to transform an
  organization, including
• 21st century organizations
• Innovation
• Systems development
• Project management
• Future trends

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UNIT 5 TRANSFORMING ORGANIZATIONS

• Some business environment observers have an
  ominous vision of the future - digital Darwinism
  organizations which cannot adapt to new demands
  are doomed to extinction

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OPENING CASE STUDY QUESTIONSHow Levis Got Its
Jeans into Wal-Mart

• Explain how Levis achieved business success
  through the use of information, information
  technology, and people
• Describe the types of Levis jeans information
  staff employees at a Wal-Mart store require and
  compare it to the types of Levis jeans
  information the executives at Wal-Marts
  corporate headquarters require
• Arrange the five units covered in this text and
  rank them in order of greatest to least impact on
  Levis competitive strategy

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CHAPTER ONE CASETechnology in Business

• Forester Research prediction that online retail
  sales would hit 101.1 billion in the United
  States came true in 2003

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CHAPTER ONE CASETechnology in Business

• 24 million households in the United States had
  broadband connections in 2003

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CHAPTER ONE CASETechnology in Business

• Online advertising revenue hit 3 billion in 2003

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CHAPTER ONE CASETechnology in Business

• According to eMarketer, the global Internet
  population was over 633 million in 2003

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CHAPTER ONE CASE QUESTIONS

• Review the graphs in Figures 1.7 through 1.10 and
  explain why it is critical that businesses
  understand and embrace the Internet
• Explain the correlation between the online retail
  sales graph (Figure 1.7) and the online
  advertising revenue graph (Figure 1.9)
• The number of Internet users worldwide is two
  years ahead of its forecast. What are the
  potential impacts that underestimating the number
  of global Internet users might have on a
  business?