Chapter 20 Information Technology and EBusiness 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 Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved Technology and E-Business Topics Chapter 20 Management of information technology and ebusiness Basic information technology & information systems frequently used in organizations Fundamental strategies Management implications Recent information technology trends Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved Information Technology The hardware, software, telecommunications, database management, and other technologies used to store, process, and distribute information Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved Data versus Information Data- Raw, nonsummarized , and unanalyzed facts and figures Information- Data that have been converted into a meaningful and useful context for the receiver Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved Information and Management Challenge Increasing Challenge for Managers Effectively identify needed information Access useful information Magnitude of transforming data into useful information = introduction of chief information officer (CIO) position Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved Useful Information Characteristics Time Currency Time Period Content Accuracy Relevance Completeness Form Clarity Detail Presentation Conciseness Source: Adapted from James A O’Brien, Introduction To Information Systems, 8th ed (Burr Ridge, Il:Irwin, 1997),pp284-285 Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved Types of Information Systems Operations Information Systems Transaction-processing systems Process control systems Office automation systems Management Information Systems Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved Types of Information Systems Management Information Systems Information-reporting systems Decision support systems Groupware Executive information systems Experiential Exercise: What is Your MIS Style? Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved Basic Elements of Management Information Systems Corporate and External Databases Operations Information Systems 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 10 Management Information Systems Reporting Systems Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved Decision Support Systems Executive Information Systems Group Decision Support System 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 11 Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved 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 12 Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved 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 13 Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved 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? 14 Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved E-Business Strategies Strategy = Productivity and Efficiency In-House Internet Division Spin-Off Strategic Partnerships 15 Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved Strategies for Engaging Clicks with Bricks Competitive Business Environment E-Business Strategy Benefits Implementation 16 Increased productivity and cost efficiency Market expansion and revenue growth •Add new markets •Integrate bricks and clicks •Increase market size •Immediate short-term effects •Measurable productivity impact •Driven by internal processes In-house division or partnership Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved In-house division or partnership E-Marketplaces Biggest boom in e-commerce is in businessto-business (B2B) transactions – – – 17 $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 Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved B2B Marketplace Model Sellers Many sellers offer products and services through an intermediary to many buyers 18 Online portal or “hub” for B2B marketplace Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved Buyers E-Business Information Management Enterprise Resource Planning Systems ERP, integrate and optimize all the various business processes across the entire firm •Top ERP vendors today host the applications themselves and offer their products through Internet portals •Customers access the applications with standard browsers 19 Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved Customer Relationship Management Systems that help companies track customers’ interactions with the firm and allow employees to call up information on past transactions 20 Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved Knowledge Management Process of systematically gathering knowledge, making it widely available throughout the organization, and fostering a culture of learning 21 Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved Knowledge Management Three 22 Keys Data warehousing Business intelligence Knowledge management portals Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved Management Implications of Information Technology Improved employee effectiveness Increased efficiency Empowered employees Information overload Enhanced collaboration 23 Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved IT Trends Wireless Internet Peer-to-Peer File Sharing Blogs and Wikis Going International 24 Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved 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 25 Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved ... Manager’s Challenge: Bountiful Mazda Copyright © 200 5 by South-Western, a division of Thomson Learning All rights reserved Technology and E-Business Topics Chapter 20 Management of information technology. .. Basic information technology & information systems frequently used in organizations Fundamental strategies Management implications Recent information technology trends Copyright © 200 5 by... reserved Information Technology The hardware, software, telecommunications, database management, and other technologies used to store, process, and distribute information Copyright © 200 5 by