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BUSINESS DRIVEN TECHNOLOGY

UNIT 1: Achieving Business Success Through Information Technology

OPENING CASEHow Levi’s Got Its Jeans into Wal-Mart

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Unit One 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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Chapter One

Business Driven Technology Overview

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Learning Outcomes

– Compare management information systems (MIS) and information technology (IT)

– Describe the relationships among people, information technology, and information

– 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 – Achieve Business Success through IT Unit 1 introduces several business

strategies including: Porter’s Five Forces Porter’s 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 – Achieve Business Success through IT

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 – Achieve Business Success through IT

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

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UNIT 1 – Achieve Business Success through IT

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:

1. Determine what information it requires2. Acquire that information3. Organize the information in a meaningful

fashion4. Assure the information's quality5. 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 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

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

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

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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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Organizations form alliances and partnerships based on their core competency

Core competency – is an organization’s 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

IT 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

Digital Darwinism – organizations which cannot adapt to new demands are doomed to extinction

Opening Case Study Questions:How Levi’s Got Its Jeans into Wal-Mart

1. Explain how Levi’s achieved business success through the use of information, information technology, and people

2. Describe the types of Levi’s jeans information staff employees at a Wal-Mart store require and compare it to the types of Levi’s jeans information the executives at Wal-Mart’s corporate headquarters require

3. Arrange the five units covered in this text and rank them in order of greatest to least impact on Levi’s competitive strategy

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

24 million households in the United States

Online advertising revenue hit $3 billion in 2003

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

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Chapter One Case Questions

1. Review the graphs in Figures 1.7 through 1.10 and explain why it is critical that businesses understand and embrace the Internet

2. Explain the correlation between the online retail sales graph (Figure 1.7) and the online advertising revenue graph (Figure 1.9)

3. 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?