Business Driven Technology CHAPTER 01 McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

LEARNING OUTCOMES 1.Describe the information age and the differences between data, information, business intelligence, and knowledge. 2.Identify the different departments in a company and why they must work together to achieve success. 3.Explain systems thinking and how management information systems enable business communications. 1-2

COMPETING IN THE INFORMATION AGE Currently infinite quantities of facts are widely available to anyone who can use a computer Many business leaders have created exceptional opportunities by coupling the power of the information age with traditional business methods 1-3

COMPETING IN THE INFORMATION AGE Examples of the power of business and technology: –Amazon—Not a technology company; primary business focus is selling books –Netflix—Not a technology company; primary business focus is renting videos –Zappos—Not a technology company; primary business focus is selling shoes 1-4

INFORMATION TECHNOLOGY’S ROLE IN BUSINESS Information technology is everywhere in business Understanding information technology provides greater insight to anyone learning about business 1-5

INFORMATION TECHNOLOGY’S IMPACT ON BUSINESS OPERATIONS Organizations typically operate by functional areas or functional silos Functional areas are interdependent IT plays a critical role in deploying enterprisewide initiatives to achieve business goals 1-6

INFORMATION TECHNOLOGY BASICS Information technology (IT)—A field concerned with the use of technology in managing and processing information Information technology is an important enabler of business success and innovation 1-7

INFORMATION TECHNOLOGY BASICS Management information systems (MIS)—A general name for the business function and academic discipline covering the application of people, technologies, and procedures – collectively called information systems – to solve business problems MIS is a business function, similar to Accounting, Finance, Operations, and Human Resources 1-8

INFORMATION TECHNOLOGY BASICS When beginning to learn about information technology it is important to understand the following: –Data, information, and business intelligence –IT resources –The challenge: departmental companies –The solution: management information system 1-9

DATA, INFORMATATION, AND BUSINESS INTELLIGENCE 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 1-10

IT RESOURCES The plans and goals of the IT department must align with the plans and goals of the organization People use Information technology to work with Information 1-11

THE CHALLENGE: DEPARTMENTAL COMPANIES Common Departments Working Independently 1-12

THE SOLUTION: MANAGEMENT INFORMATION SYSTEMS Common Departments Working Interdependently 1-13

THE SOLUTION: MANAGEMENT INFORMATION SYSTEMS Systems thinking—A way of monitoring the entire system by viewing multiple inputs being processed or transformed to produce outputs while continuously gathering feedback 1-14

THE SOLUTION: MANAGEMENT INFORMATION SYSTEMS Management Information Systems (MIS)— A business function, like accounting and human resources, which moves information about people, products, and processes across the company to facilitate decision-making and problem-solving 1-15