MGT300(INFORMATION TECHNOLOGY IN BUSINESS)

CHAPTER ONE - BUSINESS DRIVEN TECHNOLOGY

INFORMATION TECHNOLOGY'S ROLE IN BUSINESS 

Learning outcomes

- compare management information system (MIS) and information technologies (IT)

- describe the relationship among people, information technology, and information

- identify four different department in a typical business and explain how technology helps them to work     together.

- compare the four the different types of organizational information cultures and decide which cultures applies to your school.

• Information technology is everywhere in business

                             


INFORMATION TECHNOLOGY'S IMPACT ON BUSINESS OPERATIONS

• Which types of IT services can be used to meet these types of goals
• Reduce costs/improve productivity:supply chain management,enterprise resources planning
• Improve customer satisfaction/loyalty:customer relationship management,loyalty programs
• Create competitive advantage: business intelligence/data warehousing
• Generate growth:sales management systems
• Streamline supply chain:demand planning software
• Global expansion:e-business

• Describe a few of the types of IT services each business function might be receiving from IT
• Customer service: click-to-talk,call scripting,auto answering,call centers
• Finance:accounting packages,Sarbanes Oxley
• Sales and marketing: campaign management,customer relationship management
• Operations: supply chain management
• Human Resources:software to track employees at risk of leaving

• This is an excellent opportunity to discuss each business area and ensure your student have a solid understanding of business in general:
• Accounting provides quantitative information about the finance of the business including recording,measuring,and describing financial information
• Finance deals with the strategic financial issues associated with increasing the value of the business,while observing applicable laws and social responsibilities
• Human Resources includes the policies,plans,and procedures for the effective management of employees(Human Resources)
• Sales is the function of selling a good and service and focuses on increasing customer sales,which increases company revenues.
• Marketing is the process associated with promoting the sale of goods and services.The marketing department supports the sales department by creating promotions that help sell the company's product.
• Operation management(also called production management)includes the methods,tasks and techniques organizations use to produce goods and service.Transportation(also called logistics) is part of operations management
• Management information systems(MIS) is the function that plans for,develops,implements,and maintains IT hardware,software,and the portfolio of applications that people use to support the goals of an organization

• Each functional area undertakes a specific core business function
• sales and marketing-forecasting,segmentation,advertising,promotions
• operations and logistic-purchasing,supplying,receiving,transportation
• accounting and finance-accounting,planning,budgeting,tax,costs
• human resources-hiring,training,benefits,and payroll(hire a new workers)

• It does not equal or represent business success and innovation,it is simply an enabler of business success and innovation
• Will spending large amounts of money on IT guarantee automatic success?
• Spending large amounts of money on IT will not guarantee on organization automatic success
• Organizations need to allocate resources on the right types of IT that correctly support their business operations to be successful

• MIS is not technology
• MIS is a business function
• Most of organizations have an IT department that is responsible for performing the MIS function
• This is similar to an organization having an Accounting department that is responsible for performing the accounts payable and accounts payable and accounts receivable functions

• When beginning to learn about information technology it is important to understand

1. Data,information,and business intelligence
2. IT resources
3. IT cultures

• 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 support decision-making efforts

• Data turned into information
• By analyzing the data we can start to understand the information that the data is telling us
• The above figure displays all chicken orders,which customers purchased chicken,for sales representative Roberta Cross

• Data in an excel spreadsheet 
•  Product name - just a name
•      Without analyzing the data is just a bunch of names and numbers

IT Resources               

• People use
• Information technology to work with
• Information

IT Cultures

• Organizational information cultures