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Cell phones?
• Automated calls to sales agents
PC’s?
• Interconnected computers sharing data and other
resources
PBX’s?
• Bring up customer accounts based upon ANI
before customer even has to provide their name
Chapter 1:
Introduction: Business and Information
Technology
Prepared by:
Roberta M. Roth, Ph.D.
University of Northern Iowa
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Chapter Preview
In this chapter, we will study:
Marketplace pressures faced by today’s
businesses and various tactical and
strategic responses.
The distinction between data, information,
and knowledge.
The characteristics of high quality
information.
The components of an information system.
The capabilities organizations expect of
information systems.
Opportunities to use information systems
strategically.
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Today’s Business Environment
Characterized by:
Rapid Change
Complexity
Global Economy
Hyper-competition
Customer Focus
Businesses face pressure to
produce more with fewer resources
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Organizational Responses
Pressures provoke proactive and
reactive organizational responses.
Business responses to pressures
may involve use of Information
Technology and Information
Systems.
In some cases, IT is the only
solution to business pressures.
Knowledge of IT capabilities is
essential to today’s
businesspeople. 1-5
Why Should You Learn About IT?
What can be done with IT and the
consequences of using IT are very
interesting.
Organizational structure, management,
and business processes are often
changed with IT.
Career opportunities are abundant in IT.
IT affects every business functional
area.
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Some Key Definitions
Data: raw facts; collected, not
organized.
Information: data organized in a
meaningful way.
Knowledge: information organized
to convey understanding,
experiences, accumulated
learning, or expertise.
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What is an Information System?
A system that collects, processes,
stores, analyzes, and distributes
information.
Data Calculations
Process
Collect Produce
And
Instructions Inputs Outputs
Transform Reports
Store
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What Makes Information Useful?
It is accurate It is relevant
Free of errors Applies to the issue
under study
It is complete
It is timely
Includes everything Available when
needed needed
It is flexible It is verifiable
Can be viewed in Basis for results can
various ways be traced
It is reliable It is accessible
Results are always All those who need
consistent the information can
get to it
It is secure
Free from
contamination
(accidental or 1-9
deliberate)
What is Meant by a
“Computer-Based Information
System”?
An information system using
computer and telecommunications
technology to perform its intended
tasks.
Employs some combination of
hardware, software, database,
network, procedures, and people.
An information system developed
to provide a solution to a business
problem.
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Organizations Have High
Expectations of Their Information
Systems
Fast, accurate processing of business
transactions.
Storage, retrieval, analysis, and data
sharing to
Increase communication
Reduce overload
Span organizational boundaries
Support and improve decision making.
Distinctive capabilities providing
competitive advantage.
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Key Technical Trends to Monitor
Constantly improving Data mining
cost-performance Object-oriented
ratio environment
Increasing storage Electronic document
and memory management
User friendly Multimedia
interfaces Intelligent systems
Client/server Portable computing
architecture
Internet expansion
Network computers
Electronic commerce
Enterprise-wide
computers Integrated home
computing
Intranets and
extranets 1-12
Using IT Strategically
Businesses today must understand how
IT can shape and refine business
strategy
Porter’s Strategic Analysis Model
• Helps in understanding strategic forces affecting
organizations in particular industries
• IT can be applied to strengthen and support a
specific business strategy
Value Chain
• Helps in identifying ways IT can improve the
quality and efficiency of organizational processes
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Chapter Summary
Today’s businesses face myriad
pressures.
Information technology provides
tools and capabilities to respond to
those pressures.
Knowledge of IT and its
applications helps businesspeople
develop business strategies that
effectively employ IT.
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Chapter 1: Terms & Concepts
Information Technology
Internet
Just-In-Time Inventory
Total Quality Management (TQM)
Business Process Re-engineering (BPR)
Enterprise Resource Planning (ERP)
Electronic Commerce (e-Commerce)
Information System (IS)
Data/Information/Knowledge
Computer-Based Information System (CBIS)
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