1. CIS 2200 Kannan Mohan Department of CIS Zicklin School of Business, Baruch College

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3. Why are we here? What has changed because of IT? 1-3

4. What is IT? What is IS? Does IT matter? If yes, how? How can organizations use IT to gain competitive advantage? Why do some IT investments fail while others succeed? 1-4

5. Information technology: The hardware and software a business uses to achieve objectives Information system: Interrelated components that manage information to: Support decision making and control Help with analysis, visualization, and product creation 1-5

6. 1-6

7. Information Systems Organization Technology People 1-7

8. Source: (Silver et al, 1995) 1-8

9. 1-9 Access to computing and telecommunications Changing the way firms advertise and people communicate Lowered computing costs Pervasive impact of technology – across business disciplines

10. 1-10 Sophisticated, high-powered computing is turning into a utility via: Cloud computing Software as a service New technologies have also: Fueled globalization Fueled data-driven decision making Raised privacy and security concerns

11. Accounting Finance Marketing HR Operations Law

12. 1-12 Programmers Experts in user-interface design, process design, and strategy Consulting and field engineering Chief information officer “C-level” specialties in emerging areas Chief information security officer (CISO) Chief privacy officer (CPO)

13. Operational excellence New products, services, and business models Customer and supplier intimacy Improved decision making Competitive advantage Survival 1-13

14. Improved efficiency results in higher profits Helping improve efficiency and productivity E.g. Wal-Mart: Power of combining information systems and best business practices to achieve operational efficiency—and $348 billion in sales in 2007 Most efficient store in world as result of digital links between suppliers and stores 1-14

15. Enabling firms to create new products, services, and business models Business model: How a company produces, delivers, and sells its products and services E.g. Music industry Drastic changes in business models in recent years Apple: Successful innovations – iPod, iTunes, etc. 1-15

16. Customers who are served well become repeat customers who purchase more Mandarin Oriental hotel Uses IT to foster an intimate relationship with its customers, keeping track of preferences, etc. Close relationships with suppliers result in lower costs JCPenney IT to enhance relationship with supplier in Hong Kong 1-16

17. Managers being swamped with data that is not timely or helpful Real-time data improves ability of managers to make decisions Verizon: Web-based digital dashboard to update managers with real-time data on customer complaints, network performance, and line outages 1-17

18. Often results from achieving business objectives Advantages over competitors: Charging less for superior products, better performance, and better response to suppliers and customers Toyota: Uses TPS (Toyota Production System) to achieve high levels of efficiency and quality 1-18

19. Investment in IS out of necessity Simply the cost of doing business Keeping up with competitors - ATMs? Federal and state regulations and reporting requirements 1-19

20. How can IT transform your business? How has IT impacted the various areas of business? What are the key business drivers for IS? What are the dimensions and functions of IS? 1-20