CHAPTER 1: BUSINESS DRIVEN TECHNOLOGY

IFORMATION TECHNOLOGY ( IT )- A field concern with the use of technology in managing and processing information. Information technology is an important enabler of businesss success and innovation

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MANAGEMENT INFORMATION SYSTEM ( MIS )- business function and academic discipline covering the application of people, technologies, and procedures to solve business problems

Student who understand business along with the power associated with the information age will create their own opportunities even new industry.

The core drivers of the information age are:

• DATA
• INFORMATION TECHNOLOGY
• BUSINESS INTELLIGENCE
• KNOWLEDGE

DATA

Raw fact that describe the characteristic of an event

Example: Amount sold, Customer number, Quantity ordered, Order date

INFORMATION

Data converted into a meaningful and useful context

Example: best-selling product, best customer, worst selling product, worst customer

BUSINESS INTELLIGENCE

Information collected from multiple sources that analyze pattern, trends, and relationships for strategic decision making.

Example: Lowest sales per week compared with the economic interest rate, Best selling product by month compared to sport season and city wins and losses.

KNOWLWDGE

The skills, experience, and expertise, coupled with information and intelligence, that creates a person’s intellectual resources.

Example: Listing product that are about to expire first to expire first on the menu or creating them as a daily special to move the product.

Each department performs its own activities. Although each department has its own focus and data, none can work independently if company is to operate as a whole. It is easy to see how a business decision made by one department can affect other departments. For to be successful, all departments must work together as a single unit sharing common information and not operate independently.

IT RESOURCES- People use information technology to work with information.

IT CULTURES

INFORMATION FUNTIONAL CULTURE

·                  Employees use information as a means of exercising influence or power over others.

·                  Example: a manager in sales refuses to share information with makerting. This causes marketing to need the sales manager’s input each time a new sales strategy is developed.

INFORMATION SHARING CULTURE

          Employees across departments trust each other to use information especially about problem and failures to improve performance.

INFORMATION INQUIRING CULTURE

         Employees across departments search for better understand the future and align themselves with  current trends and new direction.

INFORMATION DISCOVERY CULTURE 

      Employees across departments are open to new insights about crisis and radical changes and seeK ways to create competitive advantage