CHAPTER. 1 .. Business Driven Technology

Information Technology's (IT) Role in Business

* Information technology is everywhere in business.

IT Impact on Business Operations

1. Business functions receiving the greatest benefits from  IT.

- Customer Service                70%

- Finance                                 51 %

- Sales & 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 departments in an organization

• Accounting
• Finance
• HR
• Marketing
• Management Information System (MIS)
• Operations Management
• Production Management
• Sales

* Organizations typically operate by functional areas or functional silos.

* Functional areas are interdependant (work together)

• Mkt (marketing)
• Operations 
• Logistics
• HR (human resources)
• Acc (Accounting) 
• Sales

Information Technology BASICS

Information Technology = A field concerned with the use of technology in managing &
processing information.

* IT is an important enabler of business success and innovation.

Management Information System (MIS) = A general name for the business function and academic discipline covering the application of people, technologies, and procedures to solve business problems. 

* MIS is a business function, similar to Accounting, Finance, Operations, and Human Resources. (AcFinOper,HR)

WHAT IS DATA, INFORMATION, BUSINESS INTELLIGENCE ??

DATA = Raw facts that describe the characteristics of an event.

INFORMATION = DATA converted into a meaningful and useful context.

BUSINESS INTELLIGENCE = Applications and technologies that are used to support desicion-making efforts.

IT RESOURCES

• People
• Information Technology (IT)
• Information

* people use information technology to work with information.

IT CULTURES  - Organizatinal Information cultures include :

1. 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 causes marketing to need the sales manager's input each time a new sales strategy is developed. 

2. Information - Sharing Culture.

            * Employees across departments trust each other to use information (especially about problems and failures) to improve performance.

3. Information - Inquiring Culture.

            * Employees across departments search for information to better understand the future and align themselves with current trends and new directions.

4. Information - Discovery Culture.

            * Employees across departments are open to new insights about crisis and radical changes and seek ways to create competitive advantages.

                                             END OF CHAPTER ONE 

                                              GOOD LUCK !!!  ")