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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 METRICS

  • 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 METRICS

  • Porter’s Five Forces Model determines the relative attractiveness of an industry


The three generic strategies
THE THREE GENERIC STRATEGIES METRICS

  • Organizations typically follow one of Porter’s three generic strategies when entering a new market


Value creation
VALUE CREATION METRICS

Value Chain


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