CHAPTER 1

CHAPTER 1

Business Driven Technology

Information Technology’s Role in Business

Understanding information is everywhere in business. Students who understand technology have an advantage in business because gaining a detailed understanding on information technology is important.

Information Technology’s Impact on Business Operations

Business functions receiving the greatest benefit from information technology, along with the common business goals associated with information technology projects such as :

·                           Customer service                    70%

·                           Finance                                    51%

·                           Sales and marketing               42%

·                           IT operations                           39%

·                           Operation management         31%

·                           Human resource                     17%

·                          Security                                   17%

Information technology also helps to achieving the project goals which is :

·                            Reduce costs/improve productivity                81%

·                            Improve customer satisfaction/loyalty           71%

·                            Crate competitive advantage                         66%

·                            Generate growth                                            54%

·                            Streamline supply chain                                 37%

·                            Global expansion                                            16%

Functional areas are interdependent. For an organization to succeed, every department must work together and sharing common information.

Information Technology Basics

Information technology or also known as IT is a field concern with the use of technology in managing and processing information. Information technology is an important enabler of business success and innovation.

Management information systems (MIS) is a general name for the business function and academic discipline covering the application of people, technologies and procedures to solve business problems.

Data, Information, and Business Intelligence

·                        Data                            : raw facts that describe the characteristic of an event.

·                          Information                 : data converted into a meaningful and usefulcontext.

·                        Business intelligence   : applications and technologies that are used to support decision-making efforts.

IT Resources

·                     a.      PEOPLE use

·                     b.      INFORMATION TECHNOLOGY to work with

·                     c.       INFORMATION

Those three key resources are inextricably linked. If, one fails, they all fail. Most important, if one fails, then chances are the business will fail.

        IT Cultures

               Organizational information cultures include:-

·                       Information-Functional Culture

·                       Information-Sharing Culture

·                       Information-inquiring Culture

·                       Information- Discovery Culture