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Business Driven Information Systems. SECTION 1.1. INFORMATION SYSTEMS IN BUSINESS. 1-3. INFORMATION TECHNOLOGY’S ROLE IN BUSINESS. Information technology is everywhere in business. 1-6. INFORMATION TECHNOLOGY’S ROLE IN BUSINESS. 1-7. INFORMATION TECHNOLOGY’S ROLE IN BUSINESS. 1-8. - PowerPoint PPT Presentation
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Chapter 1
Business Driven Information Systems
Chapter 1
SECTION 1.1
INFORMATION SYSTEMS IN BUSINESS
1-3
Chapter 1
INFORMATION TECHNOLOGY’S ROLE IN BUSINESS
• Information technology is everywhere in business
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Chapter 1
INFORMATION TECHNOLOGY’S
ROLE IN BUSINESS
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INFORMATION TECHNOLOGY’S
ROLE IN BUSINESS
1-8
Chapter 1
INFORMATION TECHNOLOGY’S
ROLE IN BUSINESS
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Chapter 1
INFORMATION TECHNOLOGY’S
ROLE IN BUSINESS
• Organizations typically operate by functional areas or functional silos
• Functional areas are interdependent
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Chapter 1
INFORMATION TECHNOLOGY BASICS
• Information technology (IT)
• Information technology is an important enabler of business success and innovation
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Chapter 1
INFORMATION TECHNOLOGY BASICS
•Management information systems (MIS)
• MIS is a business function, similar to Accounting, Finance, Operations, and Human Resources
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Chapter 1
INFORMATION
•Data
• Information
•Business intelligence
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Chapter 1
IT RESOURCES
• People use
• Information technology to work with
• Information
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Chapter 1
IT CULTURES
• Organizational information cultures include: Information-functional culture Information-sharing culture Information-inquiring culture Information-discovery culture
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Chapter 1
THE GAP BETWEEN BUSINESS PERSONNEL AND IT PERSONNEL • Business personnel possess expertise in functional areas such as marketing, accounting, and sales
• IT personnel have the technological expertise
• This typically causes a communications gap between the business personnel and IT personnel
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Chapter 1
MEASURING IT’S SUCCESS
• Questions executives should ask regarding IT systems Is the internal IT operation performing
satisfactorily? Should I outsource some or all of the IT
operations? How is my outsourcer performing? What are the risk factors to consider in an
IT project?
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Chapter 1
MEASURING IT’S SUCCESS
• Key performance indicator (KPI)
• Metrics are detailed measures that feed KPIs
• Performance metrics fall into the nebulous area of business intelligence that is neither technology, nor business centered, but requires input from both IT and business professionals
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Chapter 1
EFFICIENCY AND EFFECTIVENESS METRICS
•Efficiency IT metric
•Effectiveness IT metric
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Chapter 1
BENCHMARKING – BASELINING METRICS
•Benchmarks
•Benchmarking
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Chapter 1
THE INTERRELATIONSHIPS OF EFFICIENCY AND EFFECTIVENESS IT METRICS
• Efficiency IT metrics focus on technology and include: Throughput Transaction speed System availability Information accuracy Web traffic Response time
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THE INTERRELATIONSHIPS OF EFFICIENCY AND EFFECTIVENESS IT METRICS
• Effectiveness IT metrics focus on an organization’s goals, strategies, and objectives and include: Usability Customer satisfaction Conversion rates Financial
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Chapter 1
THE INTERRELATIONSHIPS OF EFFICIENCY AND EFFECTIVENESS IT METRICS
• Security is an issue for any organization offering products or services over the Internet
• It is inefficient for an organization to implement Internet security, since it slows down processing, however, to be effective it must implement Internet security
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Chapter 1
THE INTERRELATIONSHIPS OF EFFICIENCY AND EFFECTIVENESS IT METRICS
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Chapter 1
SECTION 1.2
BUSINESS STRATEGY
1-37
Chapter 1
IDENTIFYING COMPETITIVE ADVANTAGES
• To survive and thrive an organization must create a competitive advantage Competitive advantage
First-mover advantage
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Chapter 1
IDENTIFYING COMPETITIVE ADVANTAGES
• Organizations watch their competition through environmental scanning Environmental scanning
• Three common tools used in industry to analyze and develop competitive advantages include: Porter’s Five Forces Model Porter’s three generic strategies Value chains
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THE FIVE FORCES MODEL – EVALUATING BUSINESS SEGMENTS
•Porter’s Five Forces Model
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Chapter 1
BUYER POWER
• Loyalty program
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SUPPLIER POWER
•Supply chain
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SUPPLIER POWER
•Business-to-Business (B2B) marketplace
Private exchange
Reverse auction
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THREAT OF SUBSTITUTE PRODUCTS OR SERVICES
•Switching cost
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THREAT OF NEW ENTRANTS
•Entry barrier
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RIVALRY AMONG EXISTING COMPETITORS
• Although competition is always more intense in some industries than in others, the overall trend is toward increased competition in just about every industry
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THE THREE GENERIC STRATEGIES
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VALUE CREATION
•Business process
•Value chain
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Chapter 1
VALUE CREATION
Value Chain
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VALUE CREATION
• Value chains with Porter’s Five Forces
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Chapter 1
