Chapter 1 - Business Driven Technology

LEARNING OUTCOMES

1.1 Compare management information system (MIS) and information technology (IT)

1.2 Describe the relationships among people, iinformation technology, and information

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

INFORMATION TECHNOLOGY'S ROLE IN BUSINESS

• Information technology is everywhere in business

INFORMATION TECHNOLOGY'S IMPACT ON BUSINESS OPERATIONS

Business Functions Receiving The Greatest Benefits from Information Technology

1.  Customer Service           - 70%
2.  Finance                           - 51%
3.  Sales and Marketing       - 42%
4.  IT Operations                  - 39%
5.  Operations Management - 31%
6.  HR                                   - 17%
7.  Security                           - 17%

Information Technology Project Goals

1.  Reduce Costs / Improve Productivity        - 81%
2.  Improve Customer Satisfaction / Loyalty  - 71% 
3.  Create Competitive Advantage                  - 66%
4.  Generate Growth                                        - 54%
5.  Streamline Supply Chain                            - 37%
6. Global Expansion                                        - 16%

Common Departments In An Organization

• Accounting
• Marketing
• Operations Management
• Human Resources
• Production Management
• Finance
• Sales
• Management Information Systems

1. Organizations typically operate by functional areas or functional silos
2. Functional areas are interdependent

INFORMATION TECHNOLOGY BASICS

• Information technology (IT) - a field concerned with the use of technology in managing and processing information
• Information technology is an important enabler of business success and innovation
• Management information systems (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
• When beginning to learn about information technology it is important to understand

1. Data, information, and business intelligence IT resources
2. IT cultures

INFORMATION

• 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 decision-making efforts

DATA, INFORMATION AND BI

Data in an Excel Spreadsheet

Data turned into information

Information turned into Business Intelligence

IT RESOURCES

• People use
• Information technology to work with
• Information                                                                                                                              

IT CULTURES

• Organizational information cultures include:
• 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.
• Information-Sharing Culture - Employees across departments trust each other to use information (especially about problems and failures) to improve performance.
• Information-Inquiring Culture - Employees across departments search for information to better understand the future and align themselves with current trends and new directions.
• Information-Discovery Culture - Employees across departments are open to new insights about crisis and radical changes and seek ways to create competitive advantages.