CHAPTER ONE OVERVIEW

2. CHAPTER ONE OVERVIEW • SECTION 1.1 – INFORMATION SYSTEMS IN BUSINESS • Information Technology’s Role in Business • Information Technology Basics • Roles and Responsibilities in Information Technology • Measuring Information Technology’s Success • SECTION 1.2 – BUSINESS STRATEGY • Identifying Competitive Advantages • The Five Forces Model – Evaluating Business Segments • The Three Generic Strategies – Creating a Business Focus • Value Chain Analysis – Targeting Business Processes

3. INFORMATION TECHNOLOGY’S ROLE IN BUSINESS

4. INFORMATIONTECHNOLOGY BASICS • Information technology (IT) – a field concerned with the use of technology in managing and processing information • When beginning to learn about information technology it is important to understand the following: • Data, information, and business intelligence • IT resources • IT cultures

5. 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 gather, provide access to, and analyze data and information to support decision-making efforts

6. IT RESOURCES • People use • Information technology to work with • Information

7. IT CULTURES • Organizational information cultures include: • Information-functional culture • Information-sharing culture • Information-inquiring culture • Information-discovery culture

8. ROLES AND RESPONSIBILITIES IN IT • Information technology is a relatively new functional area, having only been around formally for around 40 years • Recent IT strategic positions include: • Chief Information Officer (CIO) • Chief Technology Officer (CTO) • Chief Security Officer (CSO) • Chief Privacy Officer (CPO) • Chief Knowledge Office (CKO)

9. ROLES AND RESPONSIBILITIES IN IT Skills pivotal for success in executive IT roles

10. MEASURING IT’S SUCCESS • Key performance indicator(KPI) – measures that are tied to business drivers • Efficiency IT metric – measures the performance of the IT system itself including throughput, speed, and availability • Effectiveness IT metric – measures the impact IT has on business processes and activities including customer satisfaction, conversion rates, and sell-through increases • Benchmarking – a process of continuously measuring system results, comparing results (benchmark values), and identifying improvements

11. THE INTERRELATIONSHIPS OF EFFICIENCY AND EFFECTIVENESS IT METRICS

12. IDENTIFYING COMPETITIVE ADVANTAGES • 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

13. THE FIVE FORCES MODEL – EVALUATING BUSINESS SEGMENTS • Porter’s Five Forces Model determines the relative attractiveness of an industry

14. THE THREE GENERIC STRATEGIES • Organizations typically follow one of Porter’s three generic strategies when entering a new market

15. VALUE CREATION Value Chain