Ferrell Hirt Ferrell
M: Business
nd
2 Edition
FHF
Managing Information Technology
and
E-Business
FHF
McGraw-Hill/Irwin
Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved.
Information Technology
[
Processes and applications that create
new methods to solve problems,
perform tasks, and manage
communication
]
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4-3
Technology
[
The application of knowledge, including
the processes and procedures to solve
problems, perform tasks, and create new
methods to obtain desired outcomes
]
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4-4
How Technology Impacts Our Lives
• Technology is the driving force in advancing
economic systems and the quality of life
• Improved global access
• Faster productivity growth
• Improved efficiency
• Reduced costs
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4-5
Information Technology (IT)
Is changing traditional products and the way consumers use them
• More adults use
cell phones as their
primary phone
Source: USA Today Snapshot, March 7, 2009, A1.
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4-6
Managing Information
Data
• Numerical or verbal descriptions related to
statistics or other items that have not been
analyzed or summarize
The App economy
•Way more than iPhone apps
•A way to reach customers wherever they are
•Increasingly important in business
•A way to connect with, sell to, and gather data
from consumers
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4-7
Managing Information
Knowledge
• An understanding of data gained through study or
experience
Information
• Meaningful and useful interpretation of data and
knowledge that can be used in making decisions
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4-8
Management Information System (MIS)
• Used for organizing and transmitting data into information that
can be used for decision making
• Breaks down time and location barriers
• Global information access
• Anytime, anywhere with wireless
Netflix uses MIS to collect user data and recommend movie choices
• The Netflix Prize of $1 million to improve movie
recommendation accuracy. Over 10% improvement achieved.
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4-9
Information is a major business resource. It is an asset to be developed and
distributed to managers
• Opera Solutions is a global consulting technology company
• Companies only use 1-10% of available data
• Helps companies maximize return from data
• Filter information to make it useful to business
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4-10
MIS and Data Collection
MIS
• Collect data
• Store data
• Update data
• Process and present information
Database
• A collection of data stored in one place and accessible
throughout the network
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4-11
The Internet
A global information system that links many computer
networks together
World Wide Web
• A collection of interconnected websites or pages of text,
graphics, audio, and video within the internet
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4-12
PepsiCo.
Online promotions have made it the #1 soda in China
• 23% of soda market in China
• “Pepsi Creative Challenge” is an online promotion to celebrate
the 60th anniversary of the People’s Republic
• “Go China” online promotion kicked off before the Olympics;
encouraged people to send in patriotic slogans
• Online social media is essential when marketing in China
Source: “Pepsi’s Web-Smart Thrust into China,” Businessweek, September 28, 2009.
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4-13
Intranet
• A network of computers similar to the Internet that is available
only to people inside of an organization
Extranet
• A network of computers that permits selected companies and
other organizations to access the same information and may allow
collaboration and communication about the information
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4-14
History of Information Technology
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4-15
Wireless Technologies
PDA’s
Smartphones
Digital devices
Apple iPhone
Wi-Fi Networks
WiMax
VOIP
RFID
GPS
MMS
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4-16
E-Business
Carrying out the goals of business through utilization of the
internet
• E-Business has the same goal as traditional business
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4-17
E-Business Models
Business-to-Business (B2B)
• Use of the Internet for transactions and communications between
organizations
Business-to-Consumer (B2C)
• Delivery of products and services directly to individual consumers
through the Internet (e-tailers)
Consumer-to-Consumer (C2C)
• Market in which consumers market goods and services to each
other through the Internet
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4-18
Advertising Revenues at the Top Four
Portals as a Percent of Revenues
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Source: Andrew Corn, “Google, Yahoo, AOL, MSN: Big on Internet Advertising,” Seeking Alpha
4-19
Social Media
• Is becoming an increasingly important tool for marketers
• Facebook
• MySpace
• Twitter
• Starbucks, Dell, eBay, and Google all excel at using social
media for marketing
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4-20
Customer Relationship in Managment
Focuses on using information about customers to create strategies
that develop and sustain desirable long-term customer
relationships
• Developing long-term customer relationships
• Building satisfying relationships
• Providing the best product solution for customers
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4-21
Legal and Social Issues
Privacy
• Consumer tracking via Internet purchases
• Data gathering via “cookies”
• Federal Trade Commission (FTC)
• TRUSTe
• Better Business Bureau Online
Spam
• Unsolicited commercial e-mail
• Tracking via Internet purchases
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4-22
Spam Volume by Country
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4-23
Legal and Social Issues (Continued)
Identity Theft
• Criminals obtain personal information allowing them to
impersonate others in order to use their credit to obtain
financial accounts and make purchases
• More than 250,000 cases reported each year in the US
Intellectual Property & Copyrights
• Protecting rights to property including
• Songs
• Movies
• Software
• Ideas & other creative materials
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American Society for Industrial Security (ASIS)
4-24
Intellectual Property Rights
• Google Books trouble with intellectual property rights over
books project
• Scan out-of-print books
• Creation of a large digital library
• Sued by the Authors Guild and the Association of American
Publisher
• Fear it will limit competition
• Possible violation of copyrights
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4-25
Taxing the Internet?
Should states levy a tax on internet sales?
• Some states have lobbied to charge a tax on sales
originating in their states. Revenue would offset
budget shortfalls
Sales Tax Simplification Agreement
• Create more uniform tax laws
• States may exercise the option to collect sales tax on
Internet purchases
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4-26
Dynamic E-Business
Future leaders need strategic understanding of IT and eBusinesses
• Use as a tool to enhance existing businesses
• To give new businesses a competitive edge
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4-27
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4-28