information technology and e- business chapter 20

Information Technology and E-Business

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pter

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Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.

Technology and E-Business

The strategic use of information technology is one of the defining aspects of organizational success in today’s world

Many companies in industries from manufacturing to entertainment use IT to

Get closer to customers Enter new markets Streamline business processes

Manager’s Challenge: Bountiful Mazda

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Technology and E-Business

Management of information technology and e-business

Basic information technology & information systems frequently used in organizations

Fundamental strategies

Management implications

Recent information technology trends

Topics Topics Chapter 20Chapter 20

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Information Technology

The hardware, software, telecommunications, database management, and other technologies used to store, process, and distribute information

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Data versus Information

Data- Raw, non-summarized , and unanalyzed facts and figures

Information- Data that have been converted into a meaningful and useful context for the receiver

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Information and Management Challenge

Increasing Challenge for Managers1. Effectively identify needed information

2. Access useful information

Magnitude of transforming data into useful information = introduction of chief information officer (CIO) position

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Useful Information Characteristics

TimeCurrency

Time Period

Content Accuracy Relevance

Completeness

Conciseness

Form Clarity Detail Presentation

Source: Adapted from James A. O’Brien, Introduction To Information Systems, 8th ed. (Burr Ridge, Il:Irwin, 1997),pp284-285

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Types of Information Systems

Operations Information Systems Transaction-processing systems Process control systems

Office automation systems

Management Information Systems

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Types of Information Systems


Information-reporting

systems Decision

support systems

Groupware Executive information systems

Experiential Exercise: What is Your MIS Style?

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Basic Elements of Management Information Systems


Reporting Systems

Decision Support Systems

Executive Information Systems

Group Decision Support System

Corporate and External Databases

Source: Adapted from Ralph M. Stair and George W. Reynolds, Principles of Information Systems: A Managerial Approach, 4th ed. (Cambridge, Mass.: Course Technology, 1999), 391.

Operations Information Systems

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Internet and E-Business

Internet = global collection of computer networks linked together

World Wide Web = (WWW) a collection of central servers for accessing information on the internet

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Internet and E-Business

E-business = any business that takes place by digital processes over a computer network rather than in physical space

E-commerce = business exchanges that occur electronically

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Internet Communication Systems

Intranet = an internal communications system that uses the technology and standards of the Internet but is accessible only to people within the organization

Extranet = external communicati0ns system that uses the Internet and is shared by two or more organizations

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E-Business Strategies

Strategy = Market Expansion● Internet division allows a company to

establish direct links to customers and expand into new markets

● Organization can provide access around the clock to a worldwide market and reach new customers

Ethical Dilemma: Manipulative or Not?

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E-Business Strategies

In-House Internet Division

Spin-Off

Strategic Partnerships

Strategy = Productivity and Efficiency

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Strategies for Engaging Clicks with Bricks

Competitive Business Environment

E-Business Strategy

Market expansion and revenue growth

Increased productivity and cost efficiency

Benefits•Add new markets•Integrate bricks and clicks•Increase market size

•Immediate short-term effects•Measurable productivity impact•Driven by internal processes

ImplementationIn-house division or partnership

In-house division or partnership

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E-Marketplaces

Biggest boom in e-commerce is in business-to-business (B2B) transactions– $2.4 trillion and growing in 2004– B2B marketplaces = intermediary sets up an

electronic marketplace where buyers and sellers meet, acting as a hub for B2B commerce – online portal

– Ebay has become a B2B portal

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B2B Marketplace Model

Online portal or “hub” for B2B marketplace

Sellers

Buyers

Many sellers offer products and services through an intermediary to many buyers

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E-Business Information Management

ERP, integrate and optimize all the various business processes across the entire firm

Enterprise Resource Planning Systems

•Top ERP vendors today host the applications themselves and offer their products through Internet portals

•Customers access the applications with standard browsers

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Customer Relationship Management

Systems that help companies track

customers’ interactions with the firm

and allow employees to call up

information on past transactions

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Knowledge Management

Process of systematically gathering

knowledge, making it widely available

throughout the organization, and

fostering a culture of learning

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Knowledge Management

Three Keys Data warehousing Business intelligence Knowledge management portals

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Management Implications of Information Technology

Improved employee effectiveness

Information overload

Enhanced collaboration

Empowered employees

Increased efficiency

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IT Trends

Wireless Internet Peer-to-Peer File Sharing Blogs and Wikis Going International

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Information Systems Today

Information technology and e-business are changing the way people and organizations work

Customer, partners, and suppliers are brought into the information network

information technology and e- business chapter 20

Documents

information slide

needed information

figures information

information data raw

division of thomson

receiver slide

management challenge

course technology