Chapter 1 IT Supports Organizational Performance in Turbulent Business Environments Information Technology for Management ...
Chapter Outline <ul><li>1.1 Doing Business in the Digital Economy </li></ul><ul><li>1.2 Information Systems and Informatio...
Chapter Outline cont’d <ul><li>1.6 Why Should You Learn About Information Technology? </li></ul><ul><li>1.7 Plan of the Bo...
Learning Objectives <ul><li>Describe characteristics of the digital economy and digital enterprises. </li></ul><ul><li>Def...
Learning Objectives cont’d <ul><li>6.  Explain the function and impacts of social computing and social-networking. </li></...
Figure IT 7eU The Business Performance Management Cycle and IT Model 1- Copyright 2010 John Wiley & Sons, Inc.
Toyota Scion’s Innovative Advertising Strategies <ul><li>The Problem:  Increasingly competitive global marketplace for the...
Toyota Scion’s Innovative Advertising Strategies (continued) <ul><li>Toyota known for its manufacturing innovations. </li>...
Toyota Scion’s Innovative Advertising Strategies (continued) <ul><li>The Solution:  Segmented advertising major media-base...
Toyota Scion’s Innovative Advertising Strategies (continued) <ul><li>In August 2007, Scion launched  Club Scion  to create...
Toyota Scion’s Innovative Advertising Strategies (continued) <ul><li>Toyota Uses Chat to Promote Scion  – smart strategy t...
Toyota Scion’s Innovative Advertising Strategies (continued) Copyright 2010 John Wiley & Sons, Inc. 1- For the 2008 xB SUV...
Toyota Scion’s Innovative Advertising Strategies (continued) <ul><li>Toyota targets children as a means to influence their...
Toyota Scion’s Innovative Advertising Strategies (continued) <ul><li>The Results:   Scion has 80% brand recognition  accor...
Copyright 2010 John Wiley & Sons, Inc. 1- 1.1 Doing Business in the Digital Economy
What is the Digital Economy? <ul><li>Information & entertainment products that are digitized. </li></ul><ul><li>Symbols, t...
Table 1.1 Copyright 2010 John Wiley & Sons, Inc. 1-
Electronic Commerce <ul><li>Siemens AG  established existing old company into transformed digital enterprise and is excell...
Networked Computing – Digital Organization Infrastructure <ul><li>Enables computers to connect to other computers & other ...
Figure 1.1 Digital networked enterprise. Copyright 2010 John Wiley & Sons, Inc. 1-
Buying or Renting a Movie Online Copyright 2010 John Wiley & Sons, Inc. 1- Screenshot 1U.1 Netflix
New Economy <ul><li>Netflix </li></ul><ul><li>Blockbuster </li></ul><ul><li>Movies.yahoo.com </li></ul>Copyright 2010 John...
Figure 1.2 Copyright 2010 John Wiley & Sons, Inc. 1- How customization is done online:  Nike shoes.
Copyright 2010 John Wiley & Sons, Inc. 1- 1.2 Information Systems and Information Technology
Figure 1.3 Copyright 2010 John Wiley & Sons, Inc. 1- A schematic view of an information system.
Figure 1.4 Copyright 2010 John Wiley & Sons, Inc. 1- The basic components of information systems.
Table 1.2 Copyright 2010 John Wiley & Sons, Inc. 1-
Copyright 2010 John Wiley & Sons, Inc. 1- 1.3 Business Performance Management, Business Pressures, Organizational Response...
Figure 1.5 Copyright 2010 John Wiley & Sons, Inc. 1- Business performance management cycle and IT.
Figure 1.6 Copyright 2010 John Wiley & Sons, Inc. 1- Business pressures, organizational performance and responses, and IT ...
Green IT <ul><li>Pushing Green Technology </li></ul>Copyright 2010 John Wiley & Sons, Inc. 1-
Companies Going Green – It’s Good Business Copyright 2010 John Wiley & Sons, Inc. 1- http://www.cbsnews.com/stories/2008/1...
Table 1.3 Copyright 2010 John Wiley & Sons, Inc. 1-
Ethics & IT <ul><li>Governance Gauge: Hail To The Compliance Chiefs  Intelligent Enterprise , March 01, 2005  </li></ul><u...
Copyright 2010 John Wiley & Sons, Inc. 1- 1.4 Strategy for Competitive Advantage and IT Support
Figure 1.7 Porter’s competitive forces model. Copyright 2010 John Wiley & Sons, Inc. 1-
Porter’s Five Competitive Forces that Shape Strategy Copyright 2010 John Wiley & Sons, Inc. 1-
Table 1.4 Copyright 2010 John Wiley & Sons, Inc. 1-
Figure 1.8 Copyright 2010 John Wiley & Sons, Inc. 1- The firm’s value chain. The arrows illustrate the flow of goods & ser...
IT Provides Strategic Advantage <ul><li>The Value of Business Intelligence </li></ul>Copyright 2010 John Wiley & Sons, Inc...
Example of Real-time IT Support Copyright 2010 John Wiley & Sons, Inc. 1-
Some Successful First Movers Copyright 2010 John Wiley & Sons, Inc. 1-
First Mover Advantage Losses Copyright 2010 John Wiley & Sons, Inc. 1-
Information Systems Failures Copyright 2010 John Wiley & Sons, Inc. 1- Nike_Rebounds_How_and_Why_Nike_Recovered_from_Its_S...
Copyright 2010 John Wiley & Sons, Inc. 1- 1.5 Social Computing and Networking and Virtual Worlds
Social Computing Copyright 2010 John Wiley & Sons, Inc. 1- What is Web 2.0?
Social Networks Copyright 2010 John Wiley & Sons, Inc. 1- Click to PCWorld Business Center article for more…. Social Netwo...
Figure 1.9 Plan of the book. Copyright 2010 John Wiley & Sons, Inc. 1-
Copyright 2010 John Wiley & Sons, Inc. 1- 1.8 Managerial Issues
Managerial Issues <ul><li>Recognizing opportunities for using IT and Web-based systems for strategic advantage. </li></ul>...
Minicase : Dartmouth College Goes Wireless  1- Copyright 2010 John Wiley & Sons, Inc. See  Dartmouth College Goes Wireless...
Copyright 2010 John Wiley & Sons, Inc. <ul><li>All rights reserved.  Reproduction or translation of this work beyond that ...
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  1. 1. Chapter 1 IT Supports Organizational Performance in Turbulent Business Environments Information Technology for Management Improving Performance in the Digital Economy 7 th edition John Wiley & Sons, Inc. Slides contributed by Dr. Sandra Reid Chair, Graduate School of Business & Professor, Technology Dallas Baptist University 1-1 Copyright 2010 John Wiley & Sons, Inc.
  2. 2. Chapter Outline <ul><li>1.1 Doing Business in the Digital Economy </li></ul><ul><li>1.2 Information Systems and Information Technology (IT) </li></ul><ul><li>1.3 Business Performance Management, Business Pressures, Organization Responses, and IT Support </li></ul><ul><li>1.4 Strategy for Competitive Advantage and IT Support </li></ul><ul><li>1.5 Social Computing and Networking </li></ul>1-2 Copyright 2010 John Wiley & Sons, Inc.
  3. 3. Chapter Outline cont’d <ul><li>1.6 Why Should You Learn About Information Technology? </li></ul><ul><li>1.7 Plan of the Book </li></ul><ul><li>1.8 Managerial Issues </li></ul>1- Copyright 2010 John Wiley & Sons, Inc.
  4. 4. Learning Objectives <ul><li>Describe characteristics of the digital economy and digital enterprises. </li></ul><ul><li>Define information systems, computer-based information systems and information technology. </li></ul><ul><li>Explain the relationships between performance, environmental pressures, organizational responses, and information technology. </li></ul><ul><li>Identify major pressures in the business environment and describe major organizational responses to them. </li></ul><ul><li>Describe adaptive enterprises and why they are IT-dependent. </li></ul>1- Copyright 2010 John Wiley & Sons, Inc.
  5. 5. Learning Objectives cont’d <ul><li>6. Explain the function and impacts of social computing and social-networking. </li></ul><ul><li>7. Understand the importance of learning about information technology. </li></ul>Copyright 2010 John Wiley & Sons, Inc. 1-
  6. 6. Figure IT 7eU The Business Performance Management Cycle and IT Model 1- Copyright 2010 John Wiley & Sons, Inc.
  7. 7. Toyota Scion’s Innovative Advertising Strategies <ul><li>The Problem: Increasingly competitive global marketplace for the automotive industry. Toyota with introduction of Scion goes directly up against General Motors and the Malibu for the position of #1 car manufacturer. </li></ul>Copyright 2010 John Wiley & Sons, Inc. 1- GM Vs. Gen Y target market Wide target market Toyota
  8. 8. Toyota Scion’s Innovative Advertising Strategies (continued) <ul><li>Toyota known for its manufacturing innovations. </li></ul><ul><li>Aggressive web-presence strategy. </li></ul><ul><li>Generation Y population, those born 1980-1994, expected to be a bigger consumer base than the Baby Boomers and the target market of the Scion. </li></ul><ul><li>PBS Documentary Looks at 'Generation Next‘ </li></ul>Copyright 2010 John Wiley & Sons, Inc. 1-
  9. 9. Toyota Scion’s Innovative Advertising Strategies (continued) <ul><li>The Solution: Segmented advertising major media-based strategy. Search engine marketing products – see demo example by clicking this image: </li></ul><ul><li>Toyota uses Scion Campaign Has Personality-Driven Ads to reach future customers at a very young age according to </li></ul>Copyright 2010 John Wiley & Sons, Inc. 1-
  10. 10. Toyota Scion’s Innovative Advertising Strategies (continued) <ul><li>In August 2007, Scion launched Club Scion to create a virtual reality world site of dance floors, music, & hot tubs for enthusiasts. </li></ul><ul><li>Additional virtual world presence by Scion to attract the maturing Gen Y consumer including: - Secondlife.com - Whyville.com - Gaia.com - There.com </li></ul>Copyright 2010 John Wiley & Sons, Inc. 1-
  11. 11. Toyota Scion’s Innovative Advertising Strategies (continued) <ul><li>Toyota Uses Chat to Promote Scion – smart strategy to tap into the social networks of 18 to 24 year old audience. </li></ul><ul><li>Various providers of live chat software exist such as: </li></ul>Copyright 2010 John Wiley & Sons, Inc. 1-
  12. 12. Toyota Scion’s Innovative Advertising Strategies (continued) Copyright 2010 John Wiley & Sons, Inc. 1- For the 2008 xB SUV, Scion created a special Web site, want2bsquare.com
  13. 13. Toyota Scion’s Innovative Advertising Strategies (continued) <ul><li>Toyota targets children as a means to influence their parents. </li></ul><ul><li>Scion is creating its own broadband channel as a way to move from push to pull marketing where the customer decides what materials to view and when. </li></ul><ul><li>Toyota created its own social network called Scion Speak where Scion’s enthusiasts can socialize, communicate and play. </li></ul>Copyright 2010 John Wiley & Sons, Inc. 1-
  14. 14. Toyota Scion’s Innovative Advertising Strategies (continued) <ul><li>The Results: Scion has 80% brand recognition according to Marketing Vox News (2007). - Amazing jump to #1 ranking due to interactive and community-oriented nature of the Scion online experiences. - Scion website is highly personalized with sophisticated customization tools with offline information integration. </li></ul>Copyright 2010 John Wiley & Sons, Inc. 1-
  15. 15. Copyright 2010 John Wiley & Sons, Inc. 1- 1.1 Doing Business in the Digital Economy
  16. 16. What is the Digital Economy? <ul><li>Information & entertainment products that are digitized. </li></ul><ul><li>Symbols, tokens & concepts. </li></ul><ul><li>Processes & services. </li></ul>Copyright 2010 John Wiley & Sons, Inc. 1- Click on the Wikipedia image for an expanded description & definition of the Digital Economy.
  17. 17. Table 1.1 Copyright 2010 John Wiley & Sons, Inc. 1-
  18. 18. Electronic Commerce <ul><li>Siemens AG established existing old company into transformed digital enterprise and is excellent example of electronic commerce. Click image for homepage & more about changes at Siemens AG. </li></ul>Copyright 2010 John Wiley & Sons, Inc. 1-
  19. 19. Networked Computing – Digital Organization Infrastructure <ul><li>Enables computers to connect to other computers & other electronic devices via telecommunication networks. </li></ul><ul><li>Connections give users access to remote information. </li></ul><ul><li>Users may be connected via wireless networks to public network-Internet (value-added networks (VAN)); Intranets (within organizations only); & connections to business partners (Extranets). </li></ul>Copyright 2010 John Wiley & Sons, Inc. 1-
  20. 20. Figure 1.1 Digital networked enterprise. Copyright 2010 John Wiley & Sons, Inc. 1-
  21. 21. Buying or Renting a Movie Online Copyright 2010 John Wiley & Sons, Inc. 1- Screenshot 1U.1 Netflix
  22. 22. New Economy <ul><li>Netflix </li></ul><ul><li>Blockbuster </li></ul><ul><li>Movies.yahoo.com </li></ul>Copyright 2010 John Wiley & Sons, Inc. 1- Which is better?
  23. 23. Figure 1.2 Copyright 2010 John Wiley & Sons, Inc. 1- How customization is done online: Nike shoes.
  24. 24. Copyright 2010 John Wiley & Sons, Inc. 1- 1.2 Information Systems and Information Technology
  25. 25. Figure 1.3 Copyright 2010 John Wiley & Sons, Inc. 1- A schematic view of an information system.
  26. 26. Figure 1.4 Copyright 2010 John Wiley & Sons, Inc. 1- The basic components of information systems.
  27. 27. Table 1.2 Copyright 2010 John Wiley & Sons, Inc. 1-
  28. 28. Copyright 2010 John Wiley & Sons, Inc. 1- 1.3 Business Performance Management, Business Pressures, Organizational Responses, and IT Support
  29. 29. Figure 1.5 Copyright 2010 John Wiley & Sons, Inc. 1- Business performance management cycle and IT.
  30. 30. Figure 1.6 Copyright 2010 John Wiley & Sons, Inc. 1- Business pressures, organizational performance and responses, and IT support.
  31. 31. Green IT <ul><li>Pushing Green Technology </li></ul>Copyright 2010 John Wiley & Sons, Inc. 1-
  32. 32. Companies Going Green – It’s Good Business Copyright 2010 John Wiley & Sons, Inc. 1- http://www.cbsnews.com/stories/2008/11/06/60minutes/main4579229.shtml 60 Minutes ( cbs news magazine) correspondent Scott Pelley and crew got roughed up at a Chinese dump while working on a story on toxic electronic waste. Click the following link & read/watch the story, Following The Trail Of Toxic E-Waste : An E-Waste Story That'll Make You Want To Quit Tech
  33. 33. Table 1.3 Copyright 2010 John Wiley & Sons, Inc. 1-
  34. 34. Ethics & IT <ul><li>Governance Gauge: Hail To The Compliance Chiefs Intelligent Enterprise , March 01, 2005 </li></ul><ul><li>SOX SUIT: Holding Feet To The Fire Intelligent Enterprise , January 01, 2005 </li></ul><ul><li>Lawsuit Spotlights Loyalty As Well As Ethics Intelligent Enterprise , March 27, 2007 </li></ul><ul><li>A Brief History Of Viral Time Intelligent Enterprise , July 05, 2006 </li></ul><ul><li>Web-based Service Aims to Bridge Gap Between Knowledge Sharing and Copyright Compliance Intelligent Enterprise , June 08, 2006 </li></ul><ul><li>Dating Service Beats Poor Metrics Trend With Privacy Tools Intelligent Enterprise , February 13, 2006 </li></ul><ul><li>The Shift to Holistic Compliance Intelligent Enterprise , June 28, 2005 </li></ul><ul><li>Managing Incentives and Rewards for Financial Compliance Intelligent Enterprise , May 23, 2005 </li></ul><ul><li>Review: An Affordable Escape From Spreadsheet Hell Intelligent Enterprise , May 01, 2005 </li></ul>Copyright 2010 John Wiley & Sons, Inc. 1-
  35. 35. Copyright 2010 John Wiley & Sons, Inc. 1- 1.4 Strategy for Competitive Advantage and IT Support
  36. 36. Figure 1.7 Porter’s competitive forces model. Copyright 2010 John Wiley & Sons, Inc. 1-
  37. 37. Porter’s Five Competitive Forces that Shape Strategy Copyright 2010 John Wiley & Sons, Inc. 1-
  38. 38. Table 1.4 Copyright 2010 John Wiley & Sons, Inc. 1-
  39. 39. Figure 1.8 Copyright 2010 John Wiley & Sons, Inc. 1- The firm’s value chain. The arrows illustrate the flow of goods & services (the internal part of the supply chain). (Source: Drawn by E. Turban)
  40. 40. IT Provides Strategic Advantage <ul><li>The Value of Business Intelligence </li></ul>Copyright 2010 John Wiley & Sons, Inc. 1-
  41. 41. Example of Real-time IT Support Copyright 2010 John Wiley & Sons, Inc. 1-
  42. 42. Some Successful First Movers Copyright 2010 John Wiley & Sons, Inc. 1-
  43. 43. First Mover Advantage Losses Copyright 2010 John Wiley & Sons, Inc. 1-
  44. 44. Information Systems Failures Copyright 2010 John Wiley & Sons, Inc. 1- Nike_Rebounds_How_and_Why_Nike_Recovered_from_Its_Supply_Chain_Disaster Project Management: AT&T Wireless Self-Destructs
  45. 45. Copyright 2010 John Wiley & Sons, Inc. 1- 1.5 Social Computing and Networking and Virtual Worlds
  46. 46. Social Computing Copyright 2010 John Wiley & Sons, Inc. 1- What is Web 2.0?
  47. 47. Social Networks Copyright 2010 John Wiley & Sons, Inc. 1- Click to PCWorld Business Center article for more…. Social Networks Go to Work
  48. 48. Figure 1.9 Plan of the book. Copyright 2010 John Wiley & Sons, Inc. 1-
  49. 49. Copyright 2010 John Wiley & Sons, Inc. 1- 1.8 Managerial Issues
  50. 50. Managerial Issues <ul><li>Recognizing opportunities for using IT and Web-based systems for strategic advantage. </li></ul><ul><li>Who will build, operate, and maintain information systems? </li></ul><ul><li>How much IT? </li></ul><ul><li>What social networking activities should be pursued? </li></ul><ul><li>How important is IT? </li></ul><ul><li>Globalization. </li></ul><ul><li>Ethics and social issues. </li></ul><ul><li>Transforming organization to digital economy. </li></ul>Copyright 2010 John Wiley & Sons, Inc. 1-
  51. 51. Minicase : Dartmouth College Goes Wireless 1- Copyright 2010 John Wiley & Sons, Inc. See Dartmouth College Goes Wireless article in InformationWeek
  52. 52. Copyright 2010 John Wiley & Sons, Inc. <ul><li>All rights reserved. Reproduction or translation of this work beyond that permitted in section 117 of the 1976 United States Copyright Act without express permission of the copyright owner is unlawful. Request for further information should be addressed to the Permission Department, John Wiley & Sons, Inc. The purchaser may make back-up copies for his/her own use only and not for distribution or resale. The Publisher assumes no responsibility for errors, omissions, or damages caused by the use of these programs or from the use of the Information herein. </li></ul>Copyright 2010 John Wiley & Sons, Inc. 1-

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