by zeeshan ahmed bhatti n.
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Strategic business objectives of information systems

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By: Zeeshan Ahmed Bhatti. Strategic business objectives of information systems. Strategic Business Objectives of IS. Entire sectors of economy are nearly inconceivable w/out substantial investment in IT E.g., Google, Ebay etc.

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strategic business objectives of is
Strategic Business Objectives of IS
  • Entire sectors of economy are nearly inconceivable w/out substantial investment in IT
    • E.g., Google, Ebayetc.
  • Today no industry can exist without the use of Information Technology
      • Finance, Insurance, Real Estate, Aviation etc.
    • IT has now become the core competence of a firm
      • E.g., HR, Finance etc.
strategic business objectives of is1
Strategic Business Objectives of IS
  • There is an interdependence b/w a firm’s ability to use IT and its ability to implement corporate strategies and goals
      • Depends on what technology it uses?
      • What is that technology capable of doing?
        • E.g., Is that technology capable of achieving what the firms wants to achieve in next 5 or 10 years?
    • Specifically, Businesses invest heavily in IS to achieve 6 strategic business objectives:
      • Operational excellence, new products, services, Customer and supplier intimacy, decision making and competitive advantage
1 operational excellence
1) Operational Excellence
  • Businesses continuously seek to improve efficiency of their operations
      • IS helps managers to achieve that
        • E.g., Wal-Mart (Rev. $447 Billion) has a RetailLink system – As soon as a customer purchases an item, the supplier monitoring the item knows to ship a replacement
2 new products services and business models
2) New Products, Services, and Business Models
  • IS – a major tool for firms to create new products & services
        • Apple Inc. transformed an old business model of music distribution based on vinyl records, tapes, and CDs into an online, legal distribution model based on its own iPod technology platform.
        • Blockbuster and Netflix !!
3 customer supplier intimacy
3) Customer & Supplier Intimacy
  • Business wants Customer Loyalty – Repurchase behavior
      • Ex. Mandarin Oriental Hotels use IS to keep track of their guest preferences – Room temp., Lights; frequently dialed nos. etc
  • Similarly, Business needs to be engaged with suppliers – more engagement : less costs
      • JC Penney stores in US sales’ record appear in Hong Kong (Supplier). They know what sizes, colors and styles are needed.
4 improved decision making
4) Improved Decision Making
  • Many business mgrs operate on an information fog bank
    • Never having right info at the right time to make the right decision
      • E.g., Consider the outage of your Broadband or Cellular Connection
    • Result: Over or Under-production of goods & services, misallocation of resources, and poor response times
    • IS makes it possible to use real-time data
    • E.g., Verizon’s Web-based digital dashboard for customer complaints, network performance, line outages etc.
5 competitive advantage
5) Competitive Advantage
  • Doing things better than your customers
    • E.g., Toyota’s TPS (Toyota Production System) focuses on organizing work to eliminate wastes
    • IS help Toyota implement the TPS and produce vehicles (customized) based on what the customers have actually ordered
6 survival
6) Survival
  • Necessity of doing business
  • Necessities are driven by industry-level changes
    • E.g., Citi Bank’s ATM initiative in NYC in 1977 urged other banks to do so as well
    • Similarly, some govt. regulations make it necessary e.g., in Pakistan PTA’s initiative about customer SIM cards information
so what is an is
So……What is an IS?
  • Information technology (IT) consists of all the hardware and software that a firm needs to use in order to achieve its business objectives
  • An Information system can be defined technically as a set of interrelated components that collect (or retrieve), process, store, and distribute information to support decision making and control in an organization
information vs data
Information Vs Data
  • Data: Streams of raw facts
  • Information: interpretation of data
functions of an is
Functions of an IS
  • Input: Collects raw data from within the organization or from external environment
  • Processing: coverts raw data into meaningful form
  • Output: transfers processed info to its users
  • Feedback: by the members to evaluate or correct the input stage
    • E.g., London2012 Website about number of medals; Inputs? Processing? Outputs? W.r.t. Countries, Players etc.

Organization / Management

    • First Line, Middle Mgrs, Top Executives, Knowledge workers
  • Technology:
    • Hardware: Physical equipment for input, processing, and output activities in an IS
    • Software: pre-programmed instructions that control and coordinate the computer H/W
    • Networking & Telecommunication Tech: links various pieces of H/W and transfers data
    • Internet: Network of networks
    • Intranet: internal corporate networks
    • Extranet: private intranet networks extended outside the firm