1.  INFORMATION SYSTEMS IN BUSINESS
 Information
 Data that has been organized
 Data that has been interpreted
 Data
 Raw facts that describe the characteristics of an event
 Limitless and present everywhere
 Business Intelligence
 Gathers Information
 Accesses Information
 Helps Analyze Information
 Information Technology
 What an Information Technology do?
Reduces costs
Improves productivity
Increases customer satisfaction
Increases Customer loyalty
Generates a Competitive Advantage
Generates Growth
Streamlines the Supply Chain
Drives Global Expansion
 Who does it?
Chief Information Officer (CIO)
o Strategic application of Information Technology
Chief Technology Officer (CTO)

2. o Hardware
o Infrastructure
Chief Security Officer (CSO)
o Ensures information safety and security
Chief Privacy Officer (CPO)
o Ethical and legal use of information
Chief Knowledge Officer (CKO)
o Collects, maintains, and distributes knowledge
Tactical Personnel
o Makes sure it gets done
 BUSINESS STRATEGY
 Identifying Competitive Advantages
 Measuring Success - Using Information Technology
Effectiveness: Impact
Efficiency: Performance
Impact: Usability
o Satisfaction – how satisfied are people with these
applications
o Conversion – changing interest to actually buying
o Financial – managing finances
Efficiency: Throughput
o Transaction speed
o Uptime – how often are things up and running properly
o Accuracy
o Traffic – typically web traffic
o Response time

3. Benchmarking
o Comparing against best practices to find ways to make
improvements
Competitive Advantages
o Competitive Advantage – product or service that consumers
place a greater advantage than similar item from
competitor
o First- Mover Advantage – being first to the market with a
competitive advantage
 The Five Forces Model
 Buyer Power
High when many choices of whom to buy from
Low when there are few choices
Power of channels
Power of end users
 Supplier Power
High when many choices of whom to buy from
Low when there are few choices
Power of Suppliers
 Threat of Substitute Products or Services
High when there are many alternatives to a product or service to
choose from
Low when there are few alternatives to a product or service to
choose from
 Threat of New Entrants
High when it is easy for new competitors to enter
Low when there are significant entry barriers
 Rivalry Among Existing Competitors

4. High when competition is fierce
Low when competition is complacent