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Information Technology (IT)

a field concerned with the use of technology in managing and processing information

Management Information Systems (MIS)

a general name for the business function and academic discipline covering the application of people, technologies, and procedures

3 important things to understand when learning about IT

Data information and Business intelligence
IT resources
IT cultures

Data

raw facts that describe the characteristics of an event

Information

data converted into a meaningful and useful context

Business intelligence

refers to applications and technologies that are used to gather, provide acccess to, and analyze data to support decision-making efforts.

Key parts of the IT department

People
Information
Information Technology

4 Organizational Information Cultures

information-functional culture
information-sharing culture
information-inquiring culture
information-discovery culture

information-functional culture

use info to exercise power over others

information-sharing culture

trust each other to use info to improve performance

information inquiring culture

search for information to better understand the future

information discovery culture

open to new insights about crisis and radical changes

chief information officer responsibilities

oversee all uses of information technology
ensure strategic alignment of IT with business goals

chief technology officer responsibilities

ensuring the efficiency of IT systems

chief security officer responsibilities

ensure safety of IT systems and develop strategies to safeguard against attacks

chief knowledge officer

responsible for collecting, maintaining and distributing the organizations knowledge

what is one of the greatest challenges today between business personnel and IT personnel?

communication

the success of an IT system is..

difficult to measure

Key performance indicators

measures that are tied to business drivers

2 primary types of IT metrics

Efficiency and effectiveness

Efficiency IT metrics

measures the performance of the IT system

Effectiveness IT metrics

measures the impact IT has on business processes and activities

Benchmarks

baseline values the system seeks to attain

Benchmarking

process of continuously measuring system results, comparing them and innovating new ways to improve

competitive advantage

a product or service that customers place a greater value on

first mover advantage

occurs when an organization can impact the market share by being the first

Environmental scanning

the acquisition and analysis of events and trends in the environment external to an organization

3 common tools used to analyze and develop competitive advantage

five forces model
three generic strategies
value chain analysis

Five forces model

buyer power
supplier power
threat of substitution
threat of new entrants
rivalry with competitors

Buyer power

high when buyers have many choices and low when choices are few

How does an organization reduce buyer power

make customers want to buy from only them

Loyalty programs

reward customers based on the amount of business they do with a particular organization

supplier power

high when buyers have few choices and low when buyers have many choices

supply chain

consists of all parties involved in getting a product

business to business marketplace

an internet based service that brings together many buyers and sellers

private exchange

a type of B2B market place where a single buyer posts its needs and then opens the bidding to any supplier

reverse auction

an auction format where bids get lower and lower and the lowest bidding supplier wins

threat of substitute products or services

is high when there are many alternatives and low when there are few

switching costs

costs that can make customers reluctant to switch to another product

threat of new entrants

high when it is easy for new competitors to enter a market and low when there are entry barriers

rivalry among existing competitors

high when competition is fierce and low when competition is more complacent

3 generic strategies

broad cost leadership
broad differentiation
focused strategy

business process

a standardized set of activities that accomplish a specific task

value chain approach

views an organization as a series of processes

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