Chapter 1: business driven technology
In every business that we process always use information technology. To understand information technology provides great insight to anyone learning about business. By reviewing a copy of popular business magazines such as Business Week, Fortune,orFast Company it is easy to demonstrate information technology’s role in business. Refer to figure in below, these are business magazines, not technology magazines, yet they are filled with technology. Students who understand about technology have advantages in business, and gaining a detailed understanding of information technology is important to all students regardless of their area of expertise.
The magazines articles typically discuss such topics as databases, customer relationship management, Web services, supply chain management, security, ethics, business intelligenceand so on. They also focus on companies such as Siebel, Oracle, Microsoft and IBM.
Information technology’s impact on business operations
Refer to figure in above, it highlights the business functions receiving the greatest benefit from information technology. In business information technology systems, the common types of information systems used in business organisations are electronicsandmobile commerce systems, transaction processing systems, management information systems and decision support systems.
The achieving’s result outlined in diagram, such as reducing costs, improving productivity and generating growthis not easy. Not likely to generate long-term growth or reduce costs across an entire organization to implementing a new accounting system or marketing plan. Information technologies lead a critical role in deploying such initiatives by facilitating communication and improve business intelligence. For example instant messaging and WiMax allow people across an organization to communication in new and innovative ways.
To understand information technology begins with gaining an understand how business function and information technology’s role in create efficiencies and effectivenessacross the organization.
Information technology basics
· Information technology (IT) is concerned with technology to treat information. The acquisition, processing, storage and dissemination of vocal, pictorial, textual and numerical information by a microelectronics-based combination of computing and telecommunications are its main fields. Or other definition is we use the term information technology or IT to refer to an entire industry.
· IT important to allow of business success and innovation.
· Management information systems (MIS) is a provideinformation which is needed to manage organizations efficiently and effectively. On the other definition, MIS is broadly to a computer-based system that provides managers with the tools for organizing, evaluating and efficiently running their departments.
· To learn about information technology it is important to understand:
Ø Data, information and business intelligence.
Ø IT resources
Ø IT culture
ü Data, information and business intelligence
Data is distinct pieces of information usually formatted in a special way. All software is divided into two general categories: data and programs. Programs are collections of instructions for manipulating data. Data can exist in a variety of forms as numbers or text on pieces of paper, as bits and bytes stored in electronic memory, or as facts stored in a person's mind.
Information in its most restricted technical sense is an ordered sequence of symbols that can be interpreted as a message. For other purpose, information is data that has been verified to be accurate and timely, is specific and organized for a purpose, is presented within a context that gives it meaning and relevance, and that can lead to an increase in understanding and decrease in uncertainty.
Business intelligence is a mainly refers to computer-based techniques used in identifying, extracting and analysing business data, such as sales revenue by products and/or departments, or by associated costs and incomes. For other definition, business intelligence is a broad category of applications and technologies for gathering, storing, analysing, and providing access to data to help enterprise users make better business decisions.
Example:-
v Data in Excel Spread sheet
v Data turned into information
v Information turned into Business Intelligence
ü IT resources
Plans and achievements in the IT department must be in line with what is planned and to be served in the organization. To increase efficiency in manufacturing, retain key customers, seek out new sources of supply and introduce effective financial management.
Putting it all together:
o People use
o Information technology to work with
o Information
ü IT cultures
IT cultures plays a large role in determining how successfully it will share information. It will influence the way people use information (the behaviour) and reflect the importance that the company attribute to the use of information in achieving success or avoid to fail.
• Information-Functional Culture - Employees use information as a means of exercising influence or power over others. For example, a manager in sales refuses to share information with marketing. 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 problems and failures) to improve performance.
• Information-Inquiring Culture - Employees across departments search for information to better understand the future and align themselves with current trends and new directions.
• Information-Discovery Culture - Employees across departments are open to new insights about crisis and radical changes and seek ways to create competitive advantages.
REFERENCES
Baltzan. , Phillips, ,& Haag, (2009). Business Driven Technology. (3 ed., pp. 8-15). United States: MC Graw Hill.
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