Chapter 1: Business Driven Technology.

Nursuhada Bt Abd Ghafar 4C BM111.

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.

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

  *Information Technology Project Goals.

    81% of Reduce Costs/Improve Productivity.
    71% of Improve Customer Satisfaction/Loyalty.
    66% of Create Competitive advantage.
    54% of Generate Growth.
    37% of Streamline Supply Chain.
    16% of Global Expansion.
 
  *Common Departments in an Organization.
         
         ~ACCOUNTING.            ~MARKETING.        ~OPERATIONS MANAGEMENT.
               
              ~HUMAN RESOURCES.               ~PRODUCTION MANAGEMENT.

        ~FINANCE.         ~SALES.            ~MANAGEMENT INFORMATION SYSTEMS.

• Organizations typically operate by functional areas or functional silos
• Functional areas are interdependent

 MARKETING <> Sales    > Accounting  > Human resources   > Logistics   > Operations
         
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, Operation, and Human Resources.

 -When beginning to learn about information technology it is important to understand :

* 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 : 1. people use
                         2. information technology to work with
                         3. information
* IT cultures :
 1. 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.
 2. information-sharing culture :
     -employees across departments trust each other to use information ( especially about
       problems and failures) to improve performance.
 3. information-inquiring culture :
     -employees across departments search for information ti better understand the future 
      and align themselves with current trends and new directions.
 4. information-discovery culture :
     -employees across departments are open to new insights about crisis and radical
       changes and seek ways to create competitive advantages.