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Business Driven Information Systems

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.

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Business Driven Information Systems

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  1. Business Driven Information Systems

  2. SECTION 1.1 INFORMATION SYSTEMS IN BUSINESS 1-3

  3. INFORMATION TECHNOLOGY’S ROLE IN BUSINESS • Information technology is everywhere in business 1-6

  4. INFORMATION TECHNOLOGY’S ROLE IN BUSINESS 1-7

  5. INFORMATION TECHNOLOGY’S ROLE IN BUSINESS 1-8

  6. INFORMATION TECHNOLOGY’S ROLE IN BUSINESS 1-9

  7. INFORMATION TECHNOLOGY’S ROLE IN BUSINESS • Organizations typically operate by functional areas or functional silos • Functional areas are interdependent 1-10

  8. INFORMATIONTECHNOLOGY BASICS • Information technology (IT) • Information technology is an important enabler of business success and innovation 1-11

  9. INFORMATIONTECHNOLOGY BASICS • Management information systems (MIS) • MIS is a business function, similar to Accounting, Finance, Operations, and Human Resources 1-12

  10. INFORMATION • Data • Information • Business intelligence 1-14

  11. IT RESOURCES • People use • Information technology to work with • Information 1-18

  12. IT CULTURES • Organizational information cultures include: • Information-functional culture • Information-sharing culture • Information-inquiring culture • Information-discovery culture 1-19

  13. 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 1-26

  14. 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? 1-28

  15. 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 1-29

  16. EFFICIENCY AND EFFECTIVENESS METRICS • Efficiency IT metric • Effectiveness IT metric 1-30

  17. BENCHMARKING – BASELINING METRICS • Benchmarks • Benchmarking 1-31

  18. 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 1-33

  19. 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 1-34

  20. 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 1-35

  21. THE INTERRELATIONSHIPS OF EFFICIENCY AND EFFECTIVENESS IT METRICS 1-36

  22. SECTION 1.2 BUSINESS STRATEGY 1-37

  23. IDENTIFYING COMPETITIVE ADVANTAGES • To survive and thrive an organization must create a competitive advantage • Competitive advantage • First-mover advantage 1-39

  24. 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 1-40

  25. THE FIVE FORCES MODEL – EVALUATING BUSINESS SEGMENTS • Porter’s Five Forces Model 1-41

  26. BUYER POWER • Loyalty program 1-42

  27. SUPPLIER POWER • Supply chain 1-43

  28. SUPPLIER POWER • Business-to-Business (B2B) marketplace • Private exchange • Reverse auction 1-44

  29. THREAT OF SUBSTITUTE PRODUCTS OR SERVICES • Switching cost 1-46

  30. THREAT OF NEW ENTRANTS • Entry barrier 1-47

  31. 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 1-48

  32. THE THREE GENERIC STRATEGIES 1-49

  33. VALUE CREATION • Business process • Value chain 1-51

  34. VALUE CREATION Value Chain 1-52

  35. VALUE CREATION • Value chains with Porter’s Five Forces 1-53

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