The document discusses key topics in information technology and e-business, including how IT allows companies to get closer to customers, enter new markets, and streamline business processes. It covers basic IT systems used in organizations like enterprise resource planning (ERP) and customer relationship management (CRM) systems. Emerging trends like wireless internet, peer-to-peer file sharing, blogs and wikis are changing how people and organizations work by bringing customers, partners and suppliers into information networks.

1. Information Technology and E-
Business
Chapter20

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2
Technology and E-Business
 The strategic use of information
technology is one of the defining aspects
of organizational success in today’s world
 Many companies in industries from
manufacturing to entertainment use IT to
Get closer to customers
Enter new markets
Streamline business processes
Manager’s Challenge: Bountiful Mazda

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Technology and
E-Business
 Management of information technology and e-
business
 Basic information technology & information
systems frequently used in organizations
 Fundamental strategies
 Management implications
 Recent information technology trends
Topics
Chapter 20

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Information Technology
 The hardware, software,
telecommunications, database
management, and other technologies
used to store, process, and distribute
information

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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

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6
Information and Management Challenge
 Increasing Challenge for Managers
1. Effectively identify needed information
2. Access useful information
 Magnitude of transforming data into
useful information = introduction of
chief information officer (CIO) position

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Useful Information Characteristics
Time
Currency
Time Period
Content
Accuracy
Relevance
Completeness
Conciseness
Form
Clarity
Detail
Presentation
Source: Adapted from James A. O’Brien, Introduction To Information Systems, 8th ed. (Burr
Ridge, Il:Irwin, 1997),pp284-285

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Types of Information Systems
Operations Information Systems
 Transaction-processing systems
 Process control systems
 Office automation systems
Management Information Systems

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Types of Information Systems
Management Information Systems
 Information-reporting systems
 Decision support systems
 Groupware
 Executive information systems
Experiential Exercise: What is Your MIS Style?

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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, 4th
ed. (Cambridge, Mass.: Course Technology, 1999), 391.
Operations
Information
Systems

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Internet and E-Business
 Internet = global collection of
computer networks linked together
 World Wide Web = (WWW) a
collection of central servers for
accessing information on the internet

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Internet and E-Business
 E-business = any business that takes
place by digital processes over a
computer network rather than in
physical space
 E-commerce = business exchanges
that occur electronically

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Internet Communication Systems
 Intranet = an internal communications
system that uses the technology and
standards of the Internet but is accessible
only to people within the organization
 Extranet = external communicati0ns system
that uses the Internet and is shared by two or
more organizations

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E-Business Strategies
 Strategy = Market Expansion
● Internet division allows a company to
establish direct links to customers and
expand into new markets
● Organization can provide access around
the clock to a worldwide market and reach
new customers
Ethical Dilemma: Manipulative or Not?

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E-Business Strategies
In-House Internet Division
Spin-Off
Strategic Partnerships
Strategy = Productivity and Efficiency

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Strategies for Engaging
Clicks with Bricks
Competitive Business
Environment
E-Business
Strategy
Market expansion
and revenue growth
Increased productivity
and cost efficiency
Benefits
•Add new markets
•Integrate bricks and
clicks
•Increase market size
•Immediate short-term effects
•Measurable productivity impact
•Driven by internal processes
Implementation
In-house division or
partnership
In-house division or
partnership

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E-Marketplaces
 Biggest boom in e-commerce is in business-
to-business (B2B) transactions
– $2.4 trillion and growing in 2004
– B2B marketplaces = intermediary sets up an
electronic marketplace where buyers and sellers
meet, acting as a hub for B2B commerce – online
portal
– Ebay has become a B2B portal

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B2B Marketplace Model
Online portal or
“hub” for B2B
marketplace
Sellers
Buyers
Many
sellers offer
products
and
services
through an
intermediary
to many
buyers

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E-Business Information
Management
ERP, integrate and optimize all the
various business processes across the
entire firm
Enterprise Resource Planning Systems
•Top ERP vendors today host the applications
themselves and offer their products through
Internet portals
•Customers access the applications with
standard browsers

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20
Customer Relationship Management
 Systems that help companies track
customers’ interactions with the firm
and allow employees to call up
information on past transactions

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Knowledge Management
 Process of systematically gathering
knowledge, making it widely available
throughout the organization, and
fostering a culture of learning

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Knowledge Management
 Three Keys
 Data warehousing
 Business intelligence
 Knowledge management portals

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Management Implications of
Information Technology
Improved employee effectiveness
Information overload
Enhanced collaboration
Empowered employees
Increased efficiency

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IT Trends
 Wireless Internet
 Peer-to-Peer File Sharing
 Blogs and Wikis
 Going International

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Information Systems Today
Information technology and e-business
are changing the way people and
organizations work
Customer, partners, and suppliers are
brought into the information network