Management ch 20 information technology

Technology and E-Business The strategic use of information technology is one of the defining aspects of organizational success in today’s world  Many companies in industries from ma

Information Technology and

Technology and E-Business

 The strategic use of information

technology is one of the defining aspects

of organizational success in today’s world

 Many companies in industries from

manufacturing to entertainment use IT to

Technology and E-Business

e-business

systems frequently used in organizations

Topics Chapter 20

Information Technology

 The hardware, software,

telecommunications, database management, and other technologies used to store, process, and distribute information

Data versus Information

 Data - Raw,

Information and Management Challenge

 Magnitude of transforming data into useful information = introduction of chief information officer (CIO) position

Useful Information Characteristics

Time

Currency Time Period

Content Accuracy Relevance Completeness

Conciseness

Form Clarity Detail Presentation

Source: Adapted from James A O’Brien, Introduction To Information Systems, 8th ed (Burr Ridge, Il:Irwin, 1997),pp284-285

Types of Information Systems

Operations Information Systems  Transaction-processing

systems  Process control systems

 Office automation systems

Management Information Systems

Types of Information Systems

Management Information Systems

 Information-reporting systems  Decision support systems  Groupware  Executive information systems

Experiential Exercise: What is Your MIS Style?

Basic Elements of Management

Information Systems

Management Information Systems

Reporting Systems

Decision Support Systems

Executive Information Systems

Group Decision Support System

Corporate and

External Databases

Source: Adapted from Ralph M Stair and George W Reynolds,

Principles of Information Systems: A Managerial Approach, 4 th

ed (Cambridge, Mass.: Course Technology, 1999), 391.

Operations

Information

Systems

Internet and E-Business

 Internet = global collection of computer networks linked together

collection of central servers for accessing information on the internet

Internet and E-Business

 E-business = any business that takes place by digital processes over a

computer network rather than in physical space

that occur electronically

Internet Communication Systems

 Intranet = an internal communications system that uses the technology and standards of

the Internet but is accessible only to people within the organization

 Extranet = external communicati0ns system that uses the Internet and is shared by two or more organizations

E-Business Strategies

 Strategy = Market Expansion

establish direct links to customers and expand into new markets

the clock to a worldwide market and reach new customers

Ethical Dilemma: Manipulative or Not?

E-Business Strategies

In-House Internet Division

Spin-Off Strategic Partnerships

Strategy = Productivity and Efficiency

Strategies for Engaging Clicks with Bricks

Competitive Business

Environment

E-Business Strategy Market expansion and revenue growth

Increased productivity and cost efficiency

Benefits

•Add new markets

•Integrate bricks and clicks

•Increase market size

•Immediate short-term effects

•Measurable productivity impact

•Driven by internal processes

Implementation In-house division or In-house division or

business-to-business (B2B) transactions

electronic marketplace where buyers and sellers meet, acting as a hub for B2B commerce – online portal

B2B Marketplace Model

Online portal or

“hub” for B2B marketplace

E-Business Information

Management

ERP, integrate and optimize all the various business processes across the entire firm

Enterprise Resource Planning Systems

•Top ERP vendors today host the applications themselves and offer their products through Internet portals

•Customers access the applications with standard browsers

Customer Relationship Management

customers’ interactions with the firm and allow employees to call up

information on past transactions

Knowledge Management

 Process of systematically gathering knowledge, making it widely available throughout the organization, and

fostering a culture of learning

Management Implications of Information Technology

Improved employee effectiveness

Information overload Enhanced collaboration Empowered employees Increased efficiency

IT Trends

 Wireless Internet

 Peer-to-Peer File Sharing

 Blogs and Wikis

 Going International

Information Systems Today

Information technology and e-business are changing the way people and

organizations work

Customer, partners, and suppliers are brought into the information network