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McGraw-Hill/Irwin © 2008 The McGraw-H il l Companies, Al l Rights Reserved

Unit 1

Achieving Business Success



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Unit One

• Chapter One – Business Driven Technology

• Chapter Two – Identifying Competitive Advantages

• Chapter Three – Strategic Initiatives for Implementing Competitive Advantages

• Chapter Four – Measuring the Success of StrategicInitiatives

• Chapter Five – Organizational Structures thatSupport Strategic Initiatives



McGraw-Hill/Irwin © 2008 The McGraw-H il l Companies, Al l Rights Reserved

Chapter 1

Business Driven

Technology



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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



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Learning Outcomes

1.3 Identify four different departments in a

typical business and explain how

technology helps them to work together

1.4 Compare the four different types of

organizational information cultures and

decide which culture applies to your school



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Information Technology’s Role in

Business

• Information technology is everywhere in business



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Information Technology’s Impact on

Business Operations



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Business Operations

Customer service: click-to-talk, callscripting, auto answering, call centers

Finance: accounting packages, Sarbanes

OxleySales and marketing: campaign

management, customer relationship

managementOperations: supply chain management

Human resources: software to track

employees at risk of leaving



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Business Operations



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Business Operations

•Reduce costs/ improve productivity: supplychain management, enterprise resource

planning

•Improve customer satisfaction/loyalty:customer relationship management, loyalty

programs

•Create competitive advantage: business

intelligence/data warehousing



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Business Operations

•Generate growth: sales managementsystems

•Streamline supply chain: demand planning

software•Global expansion: e-business



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Business Operations



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Business Operations

•Accounting provides quantitative

information about the finances of the

business including recording, measuring,

and describing financial information

•Finance deals with the strategic financial

issues associated with increasing the value

of the business, while observing applicablelaws and social responsibilities



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Business Operations

•Human resources includes the policies,

plans, and procedures for the effective

management of employees (human

resources)

•Sales is the function of selling a good or

service and focuses on increasing

customer sales, which increases companyrevenues



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Business Operations

•Marketing is the process associated withpromoting the sale of goods or services. The

marketing department supports the sales

department by creating promotions that helpsell the company’s products

•Operations management (also called

production management ) includes the

methods, tasks, and techniques

organizations use to produce goods and

services. Transportation (also called logistics)

is part of operations management.



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Business Operations

Management information systems (MIS)

is 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



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Business Operations

• Organizations

typically operate by

functional areas or

functional silos

• Functional areas

are interdependent



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Business Operations

–Sales and Marketing – forecasting, segmentation,

advertising, promotions

–Operations and Logistics – purchasing,

supplying, receiving, transportation –Accounting and finance – accounting, planning,

budgeting, tax, costs

–Human resources – hiring, training, benefits, andpayroll



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Information Technology Basics

• Info rmat ion techno logy (IT) – a fieldconcerned with the use of technology inmanaging and processing information

• Information technology is an importantenabler of business success and

innovation



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• Management info rmation systems (MIS) – a

general name for the business function and

academic discipline covering the application of

people, technologies, and procedures to solvebusiness problems

• MIS is a business function, similar to

Accounting, Finance, Operations, and Human

Resources



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• When beginning to learn about

information technology it is important to

understand

– Data, information, and business intelligence

– IT resources

– IT cultures



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Data, Information, and BI

• Data - raw facts that describe the

characteristic of an event

• Informat ion - data converted into a

meaningful and useful context

• Bus iness intell igence – applications and

technologies that are used to support

decision-making efforts



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• Data in an Excel Spreadsheet



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• Data turned into information



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• Information turned into Business Intelligence



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IT Resources

• People use

• Information

technology to

work with

• Information



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IT Resources

• IT in and of itself is not useful unless the right

people know how to use and manage it

efficiently and effectively

• People, information, and informationtechnology (in that order of priority) are

inextricably linked

• If one fails, they all fail

• People useInformation technology to work

with Information



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IT Cultures

• Organizational information cultures

include:

– Information-functional culture

– Information-sharing culture

– Information-inquiring culture

– Information-discovery culture



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Cont..

• Information-Functional Culture -

Employees use information as a means of

exercising influence or power over others.

For example, a manager in sales refusesto share information with marketing. This

causes marketing to need the sales

manager’s input each time a new salesstrategy is developed.



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Cont..

• Information-Sharing Culture -

Employees across departments trust each

other to use information (especially about

problems and failures) to improveperformance.

• Information-Inquiring Culture -

Employees across departments search for information to better understand the future

and align themselves with current trends

and new directions.



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Cont..

• Information-Discovery Culture -

Employees across departments are open

to new insights about crisis and radical

changes and seek ways to createcompetitive advantages.

OPENING CASE STUDY QUESTIONS



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OPENING CASE STUDY QUESTIONS Apple-Merging Technology, Business, and

Entertainment

1. Explain how Apple achieved business success

through the use of information, information

technology, and people

2. Describe the types of information employees at an

Apple store require and compare it to the types of

information the executives at Apple’s corporate

headquarters require. Are there any links between

these two types of information?

3. Identify the type of information culture that would have

the greatest negative impact on Apple’s operations



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CHAPTER ONE CASE

The World is Flat – Thomas Friedman

• Thomas Friedman describes the

unplanned cascade of technological and

social shifts that effectively leveled the

economic world, and “accidentally madeBeijing, Bangalore, and Bethesda next-

door neighbors”



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CHAPTER ONE CASE

The World is Flat – Thomas Friedman

• Thomas Friedman’s 10 Forces That Flattenedthe World1.Fall of the Berlin Wall

2.Netscape IPO

3.Work flow software4.Open-sourcing

5.Outsourcing

6.Offshoring

7.Supply-chaining8.Insourcing

9.Informing

10.Wireless



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Chapter One Case Questions

1. Do you agree or disagree with Friedman’sassessment that the world is flat? Be sure to justifyyour answer

2. What are the potential impacts of a flat world for astudent performing a job search?

3. What can students do to prepare themselves for

competing in a flat world?

4. Identify a current flattener not mentioned onFriedman’s list

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