Chapter 1 : BUSINESS DRIVEN TECHNOLOGY

BUSINESS DRIVEN TECHNOLOGY 

"Information technology is everywhere in business"

BUSINESS OPERATIONS

Business Functions Receiving the Greatest Benefits from Information Technology 

a) Customer Service

b) Finance

c) IT Operations

d) Human Resources

e) Security

Information Technology Project Goals

a) Reduce Costs/Improve Productivity (81%)

b) Improve Customers Satisfaction/Loyalty (71%)

c) Create Competitive Advantage (66%)

d) Generate Growth (54%)

e) Streamline Supply Chain (37%)

f) Global Expansion(16%)





INFORMATION TECHNOLOGY'S IMPACT ON BUSINESS OPERATIONS

"Organizations typically operate by functional areas or functional silos"

"Functional areas are independent"

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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 :

• Data, information and business intelligence
• IT resources
• IT cultures

Data : 

- Raw facts that describe the characteristic 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 

 

 IT CULTURES 

Organizational information cultures include :

• Informational-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.
• 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.