Information Technology and  E-Business CHAPTER 15 0
Learning Objectives <ul><li>Explain the importance of information technology for organizations and discuss specific ways i...
Learning Objectives  (contd.) <ul><li>Describe enterprise resource planning and customer relationship management systems. ...
Technology and E-Business <ul><li>The strategic use of information technology is one of the defining aspects of organizati...
Information Technology <ul><li>The hardware, software, telecommunications, database management, and other technologies use...
Implications of IT for Managers Exhibit 15.1 0
Data versus Information Data - Raw, non-summarized , and unanalyzed facts and figures Information - Data that have been co...
Types of Information Systems <ul><li>Operations Information Systems </li></ul><ul><ul><li>Transaction-processing systems <...
Types of Information Systems <ul><li>Management Information Systems     Information-reporting systems    Decision suppor...
Basic Elements of Management  Information Systems Management Information Systems Reporting Systems Decision Support System...
Internet and E-Business <ul><li>Internet  = global collection of computer networks linked together </li></ul><ul><li>World...
Internet and E-Business <ul><li>E-business  = any business that takes place by digital processes over a computer network r...
Internet Communication Systems <ul><li>Intranet  = an internal communications system that uses the  technology and standar...
E-Business Strategies <ul><li>Strategy  = Market Expansion </li></ul><ul><ul><li>Internet division allows a company to est...
E-Business Strategies In-House Internet Division Spin-Off Strategic Partnerships Strategy  = Productivity and Efficiency 0
Strategies for Engaging  Clicks with Bricks Competitive Business Environment E-Business Strategy Market expansion and reve...
E-Marketplaces <ul><li>Biggest boom in e-commerce is in business-to-business (B2B) transactions </li></ul><ul><ul><li>$2.4...
B2B Marketplace Model Online portal or “hub” for B2B marketplace Sellers Buyers Many sellers offer products and services t...
E-Business Information Management ERP, integrate and optimize all the various business processes across the entire firm En...
Customer Relationship Management <ul><li>Systems that help companies track customers’ interactions with the firm and allow...
Knowledge Management <ul><li>Process of systematically gathering knowledge, making it widely available throughout the orga...
Knowledge Management <ul><ul><li>Data warehousing </li></ul></ul><ul><ul><li>Business intelligence </li></ul></ul><ul><ul>...
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Information Technology and E-Business

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Information Technology and E-Business

  1. 1. Information Technology and E-Business CHAPTER 15 0
  2. 2. Learning Objectives <ul><li>Explain the importance of information technology for organizations and discuss specific ways in which IT has changed the manager’s job. </li></ul><ul><li>Describe new developments in information technology and identify the different types of IT systems used in organizations. </li></ul><ul><li>Tell how information systems support daily operations and decision making. </li></ul><ul><li>Summarize the key components of e-business and explain e-business strategies. </li></ul>0
  3. 3. Learning Objectives (contd.) <ul><li>Describe enterprise resource planning and customer relationship management systems. </li></ul><ul><li>Explain the importance of knowledge management and business intelligence in today’s organizations. </li></ul>0
  4. 4. Technology and E-Business <ul><li>The strategic use of information technology is one of the defining aspects of organizational success in today’s world </li></ul><ul><li>Many companies in industries from manufacturing to entertainment use IT to </li></ul><ul><ul><li>Get closer to customers </li></ul></ul><ul><ul><li>Enter new markets </li></ul></ul><ul><ul><li>Streamline business processes </li></ul></ul>0
  5. 5. Information Technology <ul><li>The hardware, software, telecommunications, database management, and other technologies used to store, process, and distribute information </li></ul>0
  6. 6. Implications of IT for Managers Exhibit 15.1 0
  7. 7. Data versus Information Data - Raw, non-summarized , and unanalyzed facts and figures Information - Data that have been converted into a meaningful and useful context for the receiver 0
  8. 8. Types of Information Systems <ul><li>Operations Information Systems </li></ul><ul><ul><li>Transaction-processing systems </li></ul></ul><ul><ul><li>Process control systems </li></ul></ul><ul><ul><li>Office automation systems </li></ul></ul>0
  9. 9. Types of Information Systems <ul><li>Management Information Systems  Information-reporting systems  Decision support systems  Groupware  Executive information systems </li></ul>0
  10. 10. Basic Elements of Management Information Systems Management Information Systems Reporting Systems Decision Support Systems Executive Information Systems Group Decision Support System Corporate and External Databases Source: Adapted from Ralph M. Stair and George W. Reynolds, Principles of Information Systems: A Managerial Approach, 4 th ed. (Cambridge, Mass.: Course Technology, 1999), 391. Operations Information Systems Exhibit 15.3 0
  11. 11. Internet and E-Business <ul><li>Internet = global collection of computer networks linked together </li></ul><ul><li>World Wide Web = (WWW) a collection of central servers for accessing information on the internet </li></ul>0
  12. 12. Internet and E-Business <ul><li>E-business = any business that takes place by digital processes over a computer network rather than in physical space </li></ul><ul><li>E-commerce = business exchanges that occur electronically </li></ul>0
  13. 13. Internet Communication Systems <ul><li>Intranet = an internal communications system that uses the technology and standards of the Internet but is accessible only to people within the organization </li></ul><ul><li>Extranet = external communicati0ns system that uses the Internet and is shared by two or more organizations </li></ul>0
  14. 14. E-Business Strategies <ul><li>Strategy = Market Expansion </li></ul><ul><ul><li>Internet division allows a company to establish direct links to customers and expand into new markets </li></ul></ul><ul><ul><li>Organization can provide access around the clock to a worldwide market and reach new customers </li></ul></ul>0
  15. 15. E-Business Strategies In-House Internet Division Spin-Off Strategic Partnerships Strategy = Productivity and Efficiency 0
  16. 16. Strategies for Engaging Clicks with Bricks Competitive Business Environment E-Business Strategy Market expansion and revenue growth Increased productivity and cost efficiency Benefits <ul><li>Add new markets </li></ul><ul><li>Integrate bricks and clicks </li></ul><ul><li>Increase market size </li></ul><ul><li>Immediate short-term effects </li></ul><ul><li>Measurable productivity impact </li></ul><ul><li>Driven by internal processes </li></ul>Implementation In-house division or partnership In-house division or partnership Exhibit 15.6 0
  17. 17. E-Marketplaces <ul><li>Biggest boom in e-commerce is in business-to-business (B2B) transactions </li></ul><ul><ul><li>$2.4 trillion and growing in 2004 </li></ul></ul><ul><ul><li>B2B marketplaces = intermediary sets up an electronic marketplace where buyers and sellers meet, acting as a hub for B2B commerce – online portal </li></ul></ul><ul><ul><li>EBay has become a B2B portal </li></ul></ul>0
  18. 18. B2B Marketplace Model Online portal or “hub” for B2B marketplace Sellers Buyers Many sellers offer products and services through an intermediary to many buyers Exhibit 15.7 0
  19. 19. E-Business Information Management ERP, integrate and optimize all the various business processes across the entire firm Enterprise Resource Planning Systems <ul><li>Top ERP vendors today host the applications themselves and offer their products through Internet portals </li></ul><ul><li>Customers access the applications with standard browsers </li></ul>0
  20. 20. Customer Relationship Management <ul><li>Systems that help companies track customers’ interactions with the firm and allow employees to call up information on past transactions </li></ul>0
  21. 21. Knowledge Management <ul><li>Process of systematically gathering knowledge, making it widely available throughout the organization, and fostering a culture of learning </li></ul>0
  22. 22. Knowledge Management <ul><ul><li>Data warehousing </li></ul></ul><ul><ul><li>Business intelligence </li></ul></ul><ul><ul><li>Knowledge management portals </li></ul></ul>Technologies that facilitate knowledge management 0

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