8e Daft Chapter 20

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Information Technology andE-Business

Information Technology andE-Business

CHAPTER 20CHAPTER 20



Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved.2

Learning ObjectivesLearning Objectives

Explain the importance of informationtechnology for organizations and discussspecific ways in which IT has changed the

manager¶s job. Describe new developments in information

technology and identify the different types of ITsystems used in organizations.

Tell how information systems support dailyoperations and decision making.

Summarize the key components of e-businessand explain e-business strategies.




Learning Objectives (contd.)Learning Objectives (contd.)

Describe enterprise resource planning andcustomer relationship management systems.

Explain the importance of knowledgemanagement and business intelligence intoday¶s organizations.




Technology and E-BusinessTechnology and E-Business

The strategic use of informationtechnology is one of the defining aspectsof organizational success in today¶s world

Many companies in industries frommanufacturing to entertainment use IT to

Get closer to customers

Enter new markets

Streamline business processes




Information TechnologyInformation Technology

The hardware, software,telecommunications, database

management, and other technologies used to store,process, and distributeinformation




Implications of IT for ManagersImplications of IT for Managers

Exhibit 20.1




Data versus InformationData versus Information

Data- Raw, non-summarized , andunanalyzed facts and figures

Information- Data that have beenconverted into a meaningful anduseful context for the receiver




Types of Information SystemsTypes of Information Systems

Operations Information Systems

Transaction-processing systems

Process control systems Office automation systems




Types of Information SystemsTypes of Information Systems

Management Information

Systems

Information-reporting systems

Decision support systems

Groupware

Executive information systems




Basic Elements of ManagementInformation Systems

Basic Elements of ManagementInformation 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, 4th ed. (Cambridge, Mass.:

Course Technology, 1999), 391.

Operations

Information

Systems

Exhibit 20.3




Internet and E-BusinessInternet and E-Business

Internet = global collection of computer networks linkedtogether

World Wide Web = (WWW) acollection of central servers for accessing information on the

internet




Internet and E-BusinessInternet and E-Business

E-business = any business thattakes place by digital processesover a computer network rather

than in physical space

E-commerce = businessexchanges that occur

electronically




Internet Communication SystemsInternet Communication Systems

Intranet = an internal communicationssystem that uses the technology andstandards of the Internet but is

accessible only to people within theorganization

Extranet = external communicati0ns

system that uses the Internet and isshared by two or more organizations




E-Business StrategiesE-Business Strategies

Strategy = Market Expansion

Internet division allows a company toestablish direct links to customers

and expand into new markets

Organization can provide accessaround the clock to a worldwidemarket and reach new customers




E-Business StrategiesE-Business Strategies

In-House Internet Division

Spin-Off

Strategic Partnerships

Strategy = Productivity and Efficiency




Strategies for EngagingClicks with Bricks

Strategies for EngagingClicks with Bricks

Competitive BusinessEnvironment

E-BusinessStrategy

Market expansionand revenue growth

Increased productivityand cost efficiency

BenefitsAdd new markets

Integrate bricks and

clicksIncrease market size

Immediate short-term effects

Measurable productivity impact

Driven by internal processes

ImplementationIn-house division or partnership

In-house division or partnership

Exhibit 20.6




E-MarketplacesE-Marketplaces

Biggest boom in e-commerce is inbusiness-to-business (B2B) transactions

± $2.4 trillion and growing in 2004

± B2B marketplaces = intermediary sets up anelectronic marketplace where buyers andsellers meet, acting as a hub for B2Bcommerce ± online portal

± EBay has become a B2B portal




B2B Marketplace ModelB2B Marketplace Model

Online portal or

³hub´ for B2B

marketplace

Sellers

Buyers

Manysellers offer productsandservicesthrough an

intermediaryto manybuyers

Exhibit 20.7




E-Business Information ManagementE-Business Information Management

ERP, integrate and optimize all thevarious business processes across the

entire firm

Enterprise Resource Planning Systems

Top ERP vendors today host the applicationsthemselves and offer their products throughInternet portals

Customers access the applications withstandard browsers




Customer Relationship ManagementCustomer Relationship Management

Systems that help companies track

customers¶ interactions with the

firm and allow employees to call up

information on past transactions




Knowledge ManagementKnowledge Management

Process of systematically gathering

knowledge, making it widely

available throughout the

organization, and fostering a

culture of learning




Knowledge ManagementKnowledge Management

Data warehousing

Business intelligence

Knowledge management portals

Technologies that facilitate knowledge management

Documents

8e Daft Chapter 20