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BUSINESS DRIVEN TECHNOLOGY

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Title: BUSINESS DRIVEN TECHNOLOGY


1
BUSINESS DRIVEN TECHNOLOGY UNIT 1 Achieving
Business Success Through Information
Technology OPENING CASE How Levis Got Its Jeans
into Wal-Mart
2
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

3
BUSINESS DRIVEN TECHNOLOGY Chapter One
Business Driven Technology Overview
4
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

5
CHAPTER ONE OVERVIEW
  • Provides an overview of the units in the text
  • Introduces important business and technology
    concepts

6
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

7
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

8
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

9
Types of Information Systems
Start
10
UNIT 1 ACHIEVING BUSINESS SUCCESS THROUGH
INFORMATION TECHNOLOGY
  • People use
  • Information technology to work with
  • Information

11
UNIT 2 MANAGING INFORMATION FOR BUSINESS
INITIATIVES
  • Unit 2 introduces
  • Information quality
  • Databases
  • Database management systems
  • Data mining
  • Data warehouses

12
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

13
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

14
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

15
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)

16
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

17
UNIT 3 ENHANCING BUSINESS DECISIONS
Start
18
UNIT 3 ENHANCING BUSINESS DECISIONS
  • Organizational employees have unique information
    processing and analyzing needs

19
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

20
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

21
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

22
UNIT 4 CREATING COLLABORATIVE PARTNERSHIPS IN
BUSINESS
  • Collaboration system supports the work of teams
    by facilitating the sharing and flow of
    information

23
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

24
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

25
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

26
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

27
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

28
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

29
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

30
CHAPTER ONE CASETechnology in Business
  • 24 million households in the United States had
    broadband connections in 2003

31
CHAPTER ONE CASETechnology in Business
  • Online advertising revenue hit 3 billion in 2003

32
CHAPTER ONE CASETechnology in Business
  • According to eMarketer, the global Internet
    population was over 633 million in 2003

33
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?
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