information technology and e-business

Information Technology and E-Business

Information Technology and E-BusinessCHAPTER 15CHAPTER 15

2 Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved.

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.


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.


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


Information TechnologyInformation Technology

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


Implications of IT for ManagersImplications of IT for Managers

Exhibit 15.1


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


Types of Information SystemsTypes of Information Systems

Operations Information Systems Transaction-processing systems Process control systems Office automation systems


Types of Information SystemsTypes of Information Systems

Management Information Systems

Information-

reporting systems

Decision support systems

Groupware

Executive information

systems


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


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


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


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


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


E-Business StrategiesE-Business Strategies

In-House Internet Division

Spin-Off

Strategic Partnerships

Strategy = Productivity and Efficiency


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


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


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


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


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


Knowledge ManagementKnowledge Management

Process of systematically gathering

knowledge, making it widely

available throughout the

organization, and fostering a culture

of learning


Knowledge ManagementKnowledge Management

Data warehousing Business intelligence Knowledge management portals

Technologies that facilitate knowledge management