BUSINESS DRIVEN
TECHNOLOGY
UNIT 1: Achieving Business
Success Through Information
Technology
OPENING CASE
How Levi’s Got Its Jeans into Wal-Mart
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Unit One: Achieving Business
Success through IT
 Chapter One – Business Driven
Technology Overview
 Chapter Two – Identifying Competitive
Advantages
 Chapter Three – Strategic Initiatives for
Implementing Competitive Advantages
 Chapter Four – Measuring the Success of
Strategic Initiatives
 Chapter Five – Organizational Structures
That Support Strategic Initiatives
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Chapter One
Business Driven Technology
Overview
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Learning Outcomes
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Compare management information
systems (MIS) and information
technology (IT)
Describe the relationships among
people, information technology, and
information
Describe why people at different levels
of an organization have different
information needs
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Chapter One Overview
 Provides an overview of the units in
the text
 Introduces important business and
technology concepts
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UNIT 1 – Achieve Business
Success through IT
Unit 1 introduces several business
strategies including:
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Porter’s Five Forces
Porter’s three generic strategies
Value chain analysis
Supply chain management
Customer relationship management
Enterprise resource planning
IT efficiency and IT effectiveness metrics
Organizational structures
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UNIT 1 – Achieve Business
Success through IT
 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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UNIT 1 – Achieve Business
Success through IT
 Management information systems (MIS)
– the function that plans for, develops,
implements, and maintains IT hardware,
software, and the portfolio of
applications that people use to support
the goals of an organization
 MIS is a business function, similar to
Accounting, Finance, Operations, and
Human Resources
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UNIT 1 – Achieve Business
Success through IT
 People use
 Information technology to work with
 Information
IT is not useful unless
the right people know
how to use and manage it
efficiently and effectively
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UNIT 2 – Managing Information for
Business Initiatives
Unit 2 introduces:
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Information quality
Databases
Database management systems
Data mining
Data warehouses
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UNIT 2 – Managing Information for
Business Initiatives
Organizations must manage information
properly. That is, an organization must:
1. Determine what information it requires
2. Acquire that information
3. Organize the information in a meaningful
fashion
4. Assure the information's quality
5. Provide software tools so that employees
throughout the organization can access the
information they require
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UNIT 2 – Managing Information for
Business Initiatives
 At the heart of all management information
systems is a database and DBMS
 Database – maintains information about
various types of objects (inventory), events
(transactions), people (employees), and
places (warehouses)
 Database management system (DBMS) –
software through which users and
application programs interact with a
database
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UNIT 3 – Enhancing Business
Decisions
Unit 3 introduces the role of IT in strategic
decision making and covers:
Data marts
Data-mining tools
Digital dashboards
Supply chain management (SCM)
Customer relationship management
(CRM)
 Enterprise resource planning (ERP)
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What types of business intelligence would a
grocery store find when analyzing its sales info?
 Which products typically sell together?
 Which products sell more on the
weekend as opposed to a weekday?
 Which products are most frequently sold
in the express lane sales?
Many customers in the express lane who
purchased diapers also purchased beer.
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UNIT 3 – Enhancing Business
Decisions
 Business intelligence, gained through OLTP and
OLAP, enables organization to make strategic
business decisions
 Business intelligence – a broad, general term
describing information that people use to
support their decision-making efforts
 Online transaction processing (OLTP) – the
capturing of transaction and event information
 Online analytical processing (OLAP) – the
manipulation of information to create business
intelligence in support of strategic decision
making
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Organizational employees have unique
information processing and analyzing needs
UNIT 3 – Enhancing Business
Decisions
 Many organizations use data warehouses and
data-mining tools to support strategic decision
making
 Data warehouse – a logical collection of
information – gathered from many different
operational databases – that supports business
analysis activities and decision-making tasks
 Data-mining tools – use a variety of techniques
to find patterns and relationships in large
volumes of information and infer rules from
them that predict future behavior and guide
decision making
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UNIT 4 – Creating Collaborative
Partnerships in Business
 Unit 4 focuses on IT support for
collaborative partnerships, both internal to
an organization and external with its
business partners and suppliers
 Unit 4 covers:
 Collaboration systems
 Information partnerships
 Outsourcing
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Almost all organizational activities
are performed in teams
 A marketing executive will need to work
with sales representatives to determine
what is “hot” in the market, what is selling,
and what issues/complaints customers have
before launching a new product
 A customer service representative usually
needs to talk with many coworkers to
discover customer issues and problem
resolution
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UNIT 4 – Creating Collaborative
Partnerships in Business
 Organizations create and use teams,
partnerships, and alliances to:
 Undertake new initiatives
 Address both minor and major problems
 Capitalize on significant opportunities
 Organizations create teams, partnerships,
and alliances both internally with
employees and externally with other
organizations
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Collaboration system – supports the work of
teams by facilitating the sharing and flow of
information
Organizational collaboration systems
include:
 Groupware –supports team interaction and
dynamics including calendaring, scheduling,
and videoconferencing
 Document management systems (DMS) –
supports the electronic capturing, storage,
distribution, archival, and accessing of
documents
 Knowledge management systems (KMS) –
supports the capturing and use of
organizational “know how”
 Project management software – supports longterm and day-to-day management and
execution of a project
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Organizations form alliances and partnerships
based on their core competency
 Core competency – is an organization’s
key strength, a business function that it
does better than any of its competitors
 Core competency strategy –an
organization chooses to focus specifically
on its core competency and forms
partnerships with other organizations to
handle nonstrategic business processes
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UNIT 4 – Creating Collaborative
Partnerships in Business
 IT can make a business partnership easier
to establish and manage
 Information partnership – occurs
when two or more organizations
cooperate by integrating their IT
systems, thereby providing customers
with the best of what each can offer
 The Internet has dramatically increased the
ease and availability for IT-enabled
organizational alliances and partnerships
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UNIT 5 – Transforming
Organizations
 Unit 5 explores the power of IT to
transform an organization, including:
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21st century organizations
Innovation
Systems development
Project management
Future trends
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Digital Darwinism – organizations which cannot
adapt to new demands are doomed to extinction
Opening Case Study Questions:
How Levi’s Got Its Jeans into Wal-Mart
1. Explain how Levi’s achieved business success
through the use of information, information
technology, and people
2. Describe the types of Levi’s jeans information
staff employees at a Wal-Mart store require
and compare it to the types of Levi’s jeans
information the executives at Wal-Mart’s
corporate headquarters require
3. Arrange the five units covered in this text and
rank them in order of greatest to least impact
on Levi’s competitive strategy
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Forester Research prediction that online retail
sales would hit $101.1 billion in the United States
came true in 2003
24 million households in the United States
had broadband connections in 2003
Online advertising revenue hit $3
billion in 2003
According to eMarketer, the global Internet
population was over 633 million in 2003