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What is Information Technology?  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

 IT is more than the sum of its individual parts 1-1

Introduction to Information Technology 2nd Edition Turban, Rainer & Potter © 2003 John Wiley & Sons, Inc.

Chapter 1: Introduction: Business and Information Technology Prepared by: Roberta M. Roth, Ph.D. University of Northern Iowa 1-2

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. 1-3

Today’s Business Environment Characterized by: Rapid Change Complexity Global Economy Hyper-competition Customer Focus Businesses face pressure to

produce more with fewer resources 1-4

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. 1-6

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. 1-7

What is an Information System? A system that collects, processes,

stores, analyzes, and distributes information. Calculations

Data Instructions

Collect Inputs

Process And Transform

Produce Outputs

Reports

Store

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What Makes Information Useful?  It is accurate  Free of errors

 It is complete  Includes everything needed

 It is flexible  Can be viewed in various ways

 It is reliable  Results are always consistent

 It is relevant  Applies to the issue under study

 It is timely  Available when needed

 It is verifiable  Basis for results can be traced

 It is accessible  All those who need the information can get to it

 It is secure  Free from contamination (accidental or deliberate)

1-9

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. 1-10

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. 1-11

Key Technical Trends to Monitor  Constantly improving

     

cost-performance ratio Increasing storage and memory User friendly interfaces Client/server architecture Network computers Enterprise-wide computers Intranets and extranets

 Data mining  Object-oriented       

environment Electronic document management Multimedia Intelligent systems Portable computing Internet expansion Electronic commerce Integrated home computing 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 1-13

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. 1-14

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) 1-15