information technology and e-business
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Information Technology and E-Business
Information Technology and E-BusinessCHAPTER 15CHAPTER 15
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Learning ObjectivesLearning Objectives
Explain the importance of information technology for organizations and discuss specific ways in which IT has changed the manager’s job.
Describe new developments in information technology and identify the different types of IT systems used in organizations.
Tell how information systems support daily operations and decision making.
Summarize the key components of e-business and explain e-business strategies.
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Learning Objectives (contd.)Learning Objectives (contd.)
Describe enterprise resource planning and customer relationship management systems.
Explain the importance of knowledge management and business intelligence in today’s organizations.
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Technology and E-BusinessTechnology 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
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Information TechnologyInformation Technology
The hardware, software, telecommunications, database management, and other technologies used to store, process, and distribute information
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Implications of IT for ManagersImplications of IT for Managers
Exhibit 15.1
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Data versus InformationData 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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Types of Information SystemsTypes of Information Systems
Operations Information Systems Transaction-processing systems Process control systems Office automation systems
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Types of Information SystemsTypes of Information Systems
Management Information Systems
Information-
reporting systems
Decision support systems
Groupware
Executive information
systems
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Basic Elements of Management Information Systems
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
Exhibit 15.3
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Internet and E-BusinessInternet 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-BusinessInternet 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 SystemsInternet 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 StrategiesE-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
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E-Business StrategiesE-Business Strategies
In-House Internet Division
Spin-Off
Strategic Partnerships
Strategy = Productivity and Efficiency
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Strategies for Engaging Clicks with Bricks
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
ImplementationIn-house division or partnership
In-house division or partnership
Exhibit 15.6
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E-MarketplacesE-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 ModelB2B 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
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E-Business Information ManagementE-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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Customer Relationship ManagementCustomer 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 ManagementKnowledge Management
Process of systematically gathering
knowledge, making it widely
available throughout the
organization, and fostering a culture
of learning
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Knowledge ManagementKnowledge Management
Data warehousing Business intelligence Knowledge management portals
Technologies that facilitate knowledge management