1. IMS 554 INFORMATION MARKETING for INFORMATION SYSTEMS DEPARTMENT CHAPTER 1 INTRODUCTION to BUSINESS Pn Hasnah Hashim Lecturer Faculty of Information Management Universiti Teknologi MARA Puncak Perdana Campus hasnahhashim@salam.uitm.edu.my

2. 1.Definition of Business 2.Information Technology in Business 3.Business Organization 4.Information System Department (ISD) 5.Information Users 6.Definition of Marketing INTRODUCTION TO BUSINESS

3. 1.0Definitions of Business INTRODUCTION TO BUSINESS economic system in which goods and services are exchanged for one another or money, on the basis of their perceived worth. Every business requires some form of investment and a sufficient number of customers to whom its output can be sold at profit on a consistent basis from BusinessDictionary.com

4. Definitions of Business cont.. INTRODUCTION TO BUSINESS A business (also called a company, enterprise or firm) is a legally recognized organization designed to provide goods and/or services to consumers. from Wikipedia.org

5. Some other definitions of Business cont.. INTRODUCTION TO BUSINESS an organization or enterprising entity engaged in commercial, industrial or professional activities. commercial enterprise, profession, or trade operated for the purpose of earning a profit by providing a product or service; also called business enterprise. from Answers.com

6. Classifications of business There are many types of businesses, and because of this, businesses are classified in many ways. One of the most common focuses on the primary profit-generating activities of a business: i. Agriculture ii. Financial iii. Manufacturer iv. Real Estate v. Retailers/ Distributors vi. Service Businesses vii. Transportation viii. Utilities INTRODUCTION TO BUSINESS

7. 2.0Information Technology in Business IT is used in any business since 1950’s from electronic data processing to now, Enterprise and Global Internet working system. There are tremendous amount of information which are stored in computer files. It has become another major management function to manage the information and technology resources INTRODUCTION TO BUSINESS

8. Information Technology in Business cont.. Creates new relationships between customers and suppliers who electronically link themselves together. Provides mechanisms through groupware for coordinating work and creating a knowledge base of organizational intelligence. Makes it possible for the organization to capture the knowledge of its employees and provide access to it throughout the organization. Provides the manager with electronic alternatives to face-to- face communications and supervision. Provides developing countries with opportunities to compete with the industrialized nations. INTRODUCTION TO BUSINESS

9. 3.0Business Organization is a body with interrelated subsystems working together towards common business goals or objectives by complementing each of the subsystems interdependently. The subsystems are super ordinate goals, technical, structural, psychosocial, and managerial. INTRODUCTION TO BUSINESS

10. Example of business organization in transportation industry:  Goals and Objectives is a projected state of affairs that a person or a system plans or intends to achieve - a personal or organizational desired end-point in some sort of assumed development.  Organization Structure the form of an organization that is evident in the way divisions, departments, functions, and people link together and interact. INTRODUCTION TO BUSINESS

11.  Corporate Strategy Launching “Customer-Driven Strategy” campaign. It involves all levels of employees company wide. It is to shift the employees’ focus from task-oriented to customer-oriented, internal and external  Human Resource The recruitment and hiring of employees will be based on their qualification and experience in the field of tasks to be performed. For example drivers, administrators, technicians, accountants, executives, officers, etc. INTRODUCTION TO BUSINESS

12.  Technology Using the technology of computer-based information systems. Microcomputer, midrange and mainframe computer systems are the variety of technology that can be employed to support the business operations, decision etc. Global internetworked information systems require the above technology to operate the business. INTRODUCTION TO BUSINESS

13. 4.0Information Systems Department (ISD) is established to look into the management issues relating to information technology as the rate of growth in IT usage and spending increases. INTRODUCTION TO BUSINESS

14. 5.0Information Users are the internal and external information consumers that represent the end of the line for the information product and services.  Internal users End Users from all the departments and division in the organization  External users The business partner, supplier, manufacturer, the customer. INTRODUCTION TO BUSINESS

15. 6.0Definitions of Marketing management process through which goods and services move from concept to customer. As a philosophy, it is based on thinking about the business in terms of customer needs and their satisfaction. from businessdictionary.com INTRODUCTION TO BUSINESS

16. some other definitions of Marketing cont… the management process responsible for identifying, anticipating and satisfying customer requirements profitably The Chartered Institute of Marketing Marketing is not about providing products or services it is essentially about providing changing benefits to the changing needs and demands of the customer P.Tailor of www.learnmarketing.net INTRODUCTION TO BUSINESS

17. The 3C's model of Kenichi Ohmae The 3C’s model points out that a strategist should focus on three key factors for success. In the construction of a business strategy, three main players must be taken into account: A. The Corporation B. The Customer C. The Competitors Only by integrating these three C’s (Corporation, Customer, Competitors) in a strategic triangle, a sustained competitive advantage can exist. Ohmae refers to these key factors as the three C’s or strategic triangle. INTRODUCTION TO BUSINESS

18. 3C's model: Customer-based strategies are the basis of all strategy...."There is no doubt that a corporation's foremost concern ought to be the interest of its customers rather than that of its stockholders and other parties. In the long run, the corporation that is genuinely interested in its customers is the one that will be interesting to investors".

19. A.The Corporation The Corporation needs strategies aiming to maximize the corporation’s strengths relative to the competition in the functional areas that are critical to achieve success in the industry. B.The Competitor Competitor based strategies can be constructed by looking at possible sources of differentiation in functions such as: purchasing, design, engineering, sales and servicing. INTRODUCTION TO BUSINESS

20. C.The Customer Clients are the base of any strategy according to Ohmae. Therefore, the primary goal supposed to be the interest of the customer and not those of the shareholders for example. In the long run, a company that is genuinely interested in its customers will be interesting for its investors and take care of their interests automatically. Segmentation is helping to understand the customer. INTRODUCTION TO BUSINESS

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