Professional Documents
Culture Documents
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SECTION 1.1
McGraw-Hill/Irwin
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LEARNING OUTCOMES
1. Describe the functional areas of a business and why they must work together for the business to be successful 2. Explain information technologys role in business and how you measure success 3. Compare management information systems (MIS) and information technology (IT) and define the relationships among people, information technology, and information
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LEARNING OUTCOMES
4. Compare the responsibilities of a chief information officer (CIO), chief technology officer (CTO), chief security officer (CSO), chief privacy officer (CPO), and chief knowledge officer (CKO)
5. Explain the gap between IT and the business, along with the primary reason this gap exists
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Information technology (IT) any computer-based tool that people use to work with information and support the information and information-processing needs of an organization Information technology is an important enabler of business success and innovation
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INFORMATION TECHNOLOGY BASICS When beginning to learn about information technology it is important to understand the following:
Information IT resources IT cultures
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Information
Data - raw facts that describe the characteristic of an event Information - data converted into a meaningful and useful context
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IT Resources
People use
Information technology to work with Information
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IT Cultures
Organizational information cultures include:
Information-functional culture Information-sharing culture Information-inquiring culture Information-discovery culture
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Information technology is a relatively new functional area, having only been around formally for around 40 years
Recent IT strategic positions include:
Chief Information Officer (CIO) Chief Technology Officer (CTO) Chief Security Officer (CSO) Chief Privacy Officer (CPO) Chief Knowledge Office (CKO)
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This typically causes a communications gap between the business personnel and IT personnel
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Improving Communications
Business personnel must seek to increase their understanding of IT IT personnel must seek to increase their understanding of the business It is the responsibility of the CIO to ensure effective communication between business personnel and IT personnel
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What might have happened to Apple if its top executives had not supported investment in iPods?
Formulate a strategy for how Apple can use efficiency IT metrics to improve its business Formulate a strategy for how Apple can use effectiveness IT metrics to improve its business
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Why would it be unethical for Apple to sell its iTunes customer information to other businesses?
Evaluate the effects on Apples business if it failed to secure its customers information and it was accidentally posted to an anonymous Web site
SECTION 1.2
BUSINESS STRATEGY
McGraw-Hill/Irwin
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LEARNING OUTCOMES
6. Explain why competitive advantages are typically temporary
7. List and describe each of the five forces in Porters Five Forces Model 8. Compare Porters three generic strategies 9. Describe the relationship between business processes and value chains
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Three common tools used in industry to analyze and develop competitive advantages include:
Porters Five Forces Model Porters three generic strategies Value chains
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Buyer Power
Buyer power high when buyers have many choices of whom to buy from and low when their choices are few
One way to reduce buyer power is through loyalty programs
Loyalty program rewards customers based on the amount of business they do with a particular organization
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Supplier Power
Supplier power high when buyers have few choices of whom to buy from and low when their choices are many
Supply chain consists of all parties involved in the procurement of a product or raw material
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Supplier Power
Organizations that are buying goods and services in the supply chain can create a competitive advantage by locating alternative supply sources (decreasing supplier power) through B2B marketplaces
Business-to-Business (B2B) marketplace an Internet-based service that brings together many buyers and sellers
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Supplier Power
Two types of business-to-business (B2B) marketplaces
Private exchange a single buyer posts its needs and then opens the bidding to any supplier who would care to bid Reverse auction an auction format in which increasingly lower bids are solicited from organizations willing to supply the desired product or service at an increasingly lower price
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Organizations typically follow one of Porters three generic strategies when entering a new market
Broad cost leadership Broad differentiation Focused strategy
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Value Creation
Once an organization chooses its strategy, it can use tools such as the value chain to determine the success or failure of its chosen strategy
Business process a standardized set of activities that accomplish a specific task, such as processing a customers order Value chain views an organization as a series of processes, each of which adds value to the product or service for each customer
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Value Creation
Value Chain
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Value Creation
Value chains with Porters Five Forces
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10. Which of Porters Five Forces did Apple address through its introduction of the iPod?
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1. Do you view this technology as a potential threat to traditional telephone companies? If so, what counterstrategies could traditional telephone companies adopt to prepare for this technology?
2. Using Porters Five Forces describe the barriers to entry for this new technology
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