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chapter 1 BIS

STUDY
PLAY
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