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CHAPTER ONE OVERVIEW. SECTION 1.1 – INFORMATION SYSTEMS IN BUSINESS Information Technology’s Role in Business Information Technology Basics Roles and Responsibilities in Information Technology Measuring Information Technology’s Success SECTION 1.2 – BUSINESS STRATEGY

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chapter one overview
CHAPTER ONE OVERVIEW
  • SECTION 1.1 – INFORMATION SYSTEMS IN BUSINESS
    • Information Technology’s Role in Business
    • Information Technology Basics
    • Roles and Responsibilities in Information Technology
    • Measuring Information Technology’s Success
  • SECTION 1.2 – BUSINESS STRATEGY
    • Identifying Competitive Advantages
    • The Five Forces Model – Evaluating Business Segments
    • The Three Generic Strategies – Creating a Business Focus
    • Value Chain Analysis – Targeting Business Processes
information technology basics
INFORMATIONTECHNOLOGY BASICS
  • Information technology (IT) – a field concerned with the use of technology in managing and processing information
  • When beginning to learn about information technology it is important to understand the following:
    • Data, information, and business intelligence
    • IT resources
    • IT cultures
information
INFORMATION
  • 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
it resources
IT RESOURCES
  • People use
  • Information technology to work with
  • Information
it cultures
IT CULTURES
  • Organizational information cultures include:
    • Information-functional culture
    • Information-sharing culture
    • Information-inquiring culture
    • Information-discovery culture
roles and responsibilities in it
ROLES AND RESPONSIBILITIES IN IT
  • Information technology is a relatively new functional area, having only been around formally for around 40 years
  • Recent IT strategic positions include:
    • Chief Information Officer (CIO)
    • Chief Technology Officer (CTO)
    • Chief Security Officer (CSO)
    • Chief Privacy Officer (CPO)
    • Chief Knowledge Office (CKO)
roles and responsibilities in it1
ROLES AND RESPONSIBILITIES IN IT

Skills pivotal for success in executive IT roles

measuring it s success
MEASURING IT’S SUCCESS
  • Key performance indicator(KPI) – measures that are tied to business drivers
    • Efficiency IT metric – measures the performance of the IT system itself including throughput, speed, and availability
    • Effectiveness IT metric – measures the impact IT has on business processes and activities including customer satisfaction, conversion rates, and sell-through increases
    • Benchmarking – a process of continuously measuring system results, comparing results (benchmark values), and identifying improvements
identifying competitive advantages
IDENTIFYING COMPETITIVE ADVANTAGES
  • 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
the five forces model evaluating business segments
THE FIVE FORCES MODEL – EVALUATING BUSINESS SEGMENTS
  • Porter’s Five Forces Model determines the relative attractiveness of an industry
the three generic strategies
THE THREE GENERIC STRATEGIES
  • Organizations typically follow one of Porter’s three generic strategies when entering a new market
value creation
VALUE CREATION

Value Chain

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