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5. BUSINESS DRIVEN TECHNOLOGY
UNIT 1: Achieving Business Success Through Information Technology
OPENING CASE
How Levi’s Got Its Jeans into Wal-Mart

6. Unit One Chapter One – Business Driven Technology Overview
Chapter Two – Identifying Competitive Advantages
Chapter Three – Strategic Initiatives for Implementing Competitive Advantages
Chapter Four – Measuring the Success of Strategic Initiatives
Chapter Five – Organizational Structures That Support Strategic Initiatives

7. Business Driven Technology Overview
Chapter One
Business Driven Technology Overview

8. Learning Outcomes
Compare management information systems (MIS) and information technology (IT)
Describe the relationships among people, information technology, and information
Describe why people at different levels of an organization have different information needs

9. Chapter One Overview Provides an overview of the units in the text
Introduces important business and technology concepts

10. UNIT 1 – Achieve Business Success through IT
Unit 1 introduces several business strategies including:
Porter’s Five Forces
Porter’s three generic strategies
Value chain analysis
Supply chain management
Customer relationship management
Enterprise resource planning
IT efficiency and IT effectiveness metrics
Organizational structures

11. UNIT 1 – Achieve Business Success through IT
Information technology (IT) – any computer-based tool that people use to work with information and support the information and information-processing needs of an organization
Information technology is an important enabler of business success and innovation

12. UNIT 1 – Achieve Business Success through IT
Management information systems (MIS) – the function that plans for, develops, implements, and maintains IT hardware, software, and the portfolio of applications that people use to support the goals of an organization
MIS is a business function, similar to Accounting, Finance, Operations, and Human Resources

13. Types of Information Systems

14. UNIT 1 – Achieve Business Success through IT
People use
Information technology to work with
Information

15. UNIT 2 – Managing Information for Business Initiatives
Unit 2 introduces:
Information quality
Databases
Database management systems
Data mining
Data warehouses

16. UNIT 2 – Managing Information for Business Initiatives
Organizations must manage information properly. That is, an organization must:
Determine what information it requires
Acquire that information
Organize the information in a meaningful fashion
Assure the information's quality
Provide software tools so that employees throughout the organization can access the information they require

17. UNIT 2 – Managing Information for Business Initiatives
At the heart of all management information systems is a database and DBMS
Database – maintains information about various types of objects (inventory), events (transactions), people (employees), and places (warehouses)
Database management system (DBMS) – software through which users and application programs interact with a database

19. UNIT 3 – Enhancing Business Decisions
Unit 3 introduces the role of IT in strategic decision making and covers:
Data marts
Data-mining tools
Digital dashboards
Supply chain management (SCM)
Customer relationship management (CRM)
Enterprise resource planning (ERP)

20. UNIT 3 – Enhancing Business Decisions
Business intelligence, gained through OLTP and OLAP, enables organization to make strategic business decisions
Business intelligence – a broad, general term describing information that people use to support their decision-making efforts
Online transaction processing (OLTP) – the capturing of transaction and event information
Online analytical processing (OLAP) – the manipulation of information to create business intelligence in support of strategic decision making

21. Organizational employees have unique information processing and analyzing needs

22. UNIT 3 – Enhancing Business Decisions
Many organizations use data warehouses and data-mining tools to support strategic decision making
Data warehouse – a logical collection of information – gathered from many different operational databases – that supports business analysis activities and decision-making tasks
Data-mining tools – use a variety of techniques to find patterns and relationships in large volumes of information and infer rules from them that predict future behavior and guide decision making

23. UNIT 4 – Creating Collaborative Partnerships in Business
Unit 4 focuses on IT support for collaborative partnerships, both internal to an organization and external with its business partners and suppliers
Unit 4 covers:
Collaboration systems
Information partnerships
Outsourcing

24. UNIT 4 – Creating Collaborative Partnerships in Business
Organizations create and use teams, partnerships, and alliances to:
Undertake new initiatives
Address both minor and major problems
Capitalize on significant opportunities
Organizations create teams, partnerships, and alliances both internally with employees and externally with other organizations

25. Collaboration system – supports the work of teams by facilitating the sharing and flow of information

26. Organizational collaboration systems include:
Groupware –supports team interaction and dynamics including calendaring, scheduling, and videoconferencing
Document management systems (DMS) – supports the electronic capturing, storage, distribution, archival, and accessing of documents
Knowledge management systems (KMS) – supports the capturing and use of organizational “know how”
Project management software – supports long-term and day-to-day management and execution of a project

27. Organizations form alliances and partnerships based on their core competency
Core competency – is an organization’s key strength, a business function that it does better than any of its competitors
Core competency strategy –an organization chooses to focus specifically on its core competency and forms partnerships with other organizations to handle nonstrategic business processes

28. UNIT 4 – Creating Collaborative Partnerships in Business
IT can make a business partnership easier to establish and manage
Information partnership – occurs when two or more organizations cooperate by integrating their IT systems, thereby providing customers with the best of what each can offer
The Internet has dramatically increased the ease and availability for IT-enabled organizational alliances and partnerships

29. UNIT 5 – Transforming Organizations
Unit 5 explores the power of IT to transform an organization, including:
21st century organizations
Innovation
Systems development
Project management
Future trends

30. Digital Darwinism – organizations which cannot adapt to new demands are doomed to extinction

31. Opening Case Study Questions: How Levi’s Got Its Jeans into Wal-Mart
Explain how Levi’s achieved business success through the use of information, information technology, and people
Describe the types of Levi’s jeans information staff employees at a Wal-Mart store require and compare it to the types of Levi’s jeans information the executives at Wal-Mart’s corporate headquarters require
Arrange the five units covered in this text and rank them in order of greatest to least impact on Levi’s competitive strategy

32. Forester Research prediction that online retail sales would hit $101
Forester Research prediction that online retail sales would hit $101.1 billion in the United States came true in 2003

33. 24 million households in the United States

34. Online advertising revenue hit $3 billion in 2003

35. According to eMarketer, the global Internet population was over 633 million in 2003

36. Chapter One Case Questions
Review the graphs in Figures 1.7 through 1.10 and explain why it is critical that businesses understand and embrace the Internet
Explain the correlation between the online retail sales graph (Figure 1.7) and the online advertising revenue graph (Figure 1.9)
The number of Internet users worldwide is two years ahead of its forecast. What are the potential impacts that underestimating the number of global Internet users might have on a business?