CHAPTER 1 

BUSINESS DRIVEN TECHNOLOGY.

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.

• Business functions receiving the greatest benefits from information technology.

 

Customer Service	70%
Finance	51%
Sales and Marketing	42%
IT Operations	39%
Operations Management	31%
HR	17%
Security	17%

 

INFORMATION TECHNOLOGY'S IMPACT ON BUSINESS OPERATIONS.

• Information Technology Project Goals.
  
  

  Reduce Costs/Improve Productivity.	81%
  Improve customer satisfactory/loyalty.	71%
  Create competitive advantage.	66%
  Generate growth.	54%
  Streamline supply chain.	37%
  Global expansion.	16%

    
  
  
  INFORMATION TECHNOLOGY'S IMPACT ON BUSINESS OPERATIONS.  
    
  COMMON DEPARTMENTS IN AN ORGANIZATION.
  
  
  1. Accounting
  2. Marketing
  3. Operations Management
  4. Human Resources
  5. Production Management
  6. Finance
  7. Sales
  8. Management Operation Systems.  
  
  
  
  
  INFORMATION TECHNOLOGY’S IMPACT ON BUSINESS OPERATIONS
  ·         Organizations typically operate by functional areas or functional silos.
  ·         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
  -Data, information, and business intelligence IT resources.
  -IT cultures
  
  
  
  
  INFORMATION
  ·         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 RESOURCES
  ~  People use
  ~Information technology to work with
  ~Information 
  
  
                                             
  
  
  
  
  IT CULTURES
  Ø  Organizational information cultures include:
                               i.            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 ach time a new sales strategy is developed.
                             ii.            Information-Sharing Culture - Employees across departments trusts each other to use information (especially about problems and failures) to improve performance.
                           iii.            Information-Inquiring Culture – Employees across departments search for information to better understand the future and align themselves with current trends and new directions.
                            iv.            Information-Discovery Culture – Employees across department are open to new insights about crisis and radical changes and seek ways to create competitive advantages.
  
  
  
  
  
  
  
  
                                                  [ END OF CHAPTER ONE]