CHAPTER 1

BUSINESS DRIVEN TECHNOLOGY

Ø  Information technology can be found everywhere in business.

Ø  Some of Information Technology’s impact on business operation are:-

1) Business function receiving greatest benefits from Information Technology that are:-

-    CUSTOMER SERVICE = 70%

-    FINANCE = 51%

-    SALES AND MARKETING = 42%

-    IT OPERATIONS = 39%

-    OPERATIONS MANAGEMENT = 31%

-    HR = 17%

-    SECURITY = 17%

2) Information Technology also has project goals that are:-

- REDUCE COST/IMPROVE PRODUCTIVITY = 81%

- IMPROVE CUSTOMER SATISFACTION/LOYALTY = 71%

- CREATE COMPETITIVE ADVANTAGE = 66%

- GENERATE GROWTH = 54%

- STREAMLINE SUPPLY CHAIN = 37%

- GLOBAL EXPENSION = 16%

3) Common departments in an organization are:-

- ACCOUNTING              - MARKETING

- OPERATING MANAGEMENT    - HUMAN RESOURCES

- PRODUCTION MANAGEMENT   - FINANCE

- SALES                   - MANAGEMENT INFORMATION SYSTEMS

Ø  Information Technology (IT) is a field concerned with the use of technology in managing and processing information, also an important enabler of business success and innovation.

Ø  While Management Information System(MIS) is a general name for the business function and academic discipline covering the application of people, technologies, and procedures to solve business problems.

Ø  MIS also a business function similar to Accounting, Finance, Operations and Human Resources.

Ø  It is important to understand data, information, and business intelligence IT resources also IT cultures when learn about IT.

Ø  DATA is raw facts that describe the characteristic of an event.

Ø  INFORMATION is data converted into a meaningful and useful context.

Ø  BUSINESS INTELLIGENCE is application and technologies that are used to support decision making efforts.

Ø  There are a few types of data, information and business intelligence such as data in an Excel Spreadsheet, data turned into information and information turned into Business Intelligence.

Ø  There are 3 IT resources that are people use, information technology to work with and information.

Ø  For IT cultures, organizational information cultures include Information-Functional Culture Information-Sharing Culture, Information-Inquiring Culture and Information-Discovery Culture.

Ø  INFORMATION-FUNCTIONAL CULTURE is employees use information as a means of exercising influence or power over others.

Ø  INFORMATION-SHARING CULTURE is employees across department trust each other to use information to improve performance.

Ø  INFORMATION-INQUIRING CULTURE is employees across departments search for information to better understand the future and align themselves with current trends and new directions.

Ø  INFORMATION-SHARING CULTURE is employees across departments are open to new insights about crisis and radical changes and seek ways to create competitive advantages.