What is Information Technology?

 Cell phones?
• Automated calls to sales agents

 PC’s?
• Interconnected computers sharing data and other

resources

 PBX’s?
• Bring up customer accounts based upon ANI

before customer even has to provide their name

 IT is more than the sum of its individual parts
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Introduction to Information Technology
2nd Edition Turban, Rainer & Potter © 2003 John Wiley & Sons, Inc.

Chapter 1: Introduction: Business and Information Technology
Prepared by: Roberta M. Roth, Ph.D. University of Northern Iowa
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Chapter Preview
 In this chapter, we will study:  Marketplace pressures faced by today’s businesses and various tactical and strategic responses.  The distinction between data, information, and knowledge.  The characteristics of high quality information.  The components of an information system.  The capabilities organizations expect of information systems.  Opportunities to use information systems strategically.
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Today’s Business Environment
Characterized by: Rapid Change Complexity Global Economy Hyper-competition Customer Focus Businesses face pressure to

produce more with fewer resources
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Organizational Responses
Pressures provoke proactive and

reactive organizational responses. Business responses to pressures may involve use of Information Technology and Information Systems. In some cases, IT is the only solution to business pressures. Knowledge of IT capabilities is essential to today’s businesspeople.
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Why Should You Learn About IT?
 What can be done with IT and the

consequences of using IT are very interesting.  Organizational structure, management, and business processes are often changed with IT.  Career opportunities are abundant in IT.  IT affects every business functional area.
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Some Key Definitions
Data: raw facts; collected, not

organized. Information: data organized in a meaningful way. Knowledge: information organized to convey understanding, experiences, accumulated learning, or expertise.
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What is an Information System?
A system that collects, processes,

stores, analyzes, and distributes information.
Data Instructions Collect Inputs Process And Transform Produce Outputs Calculations Reports

Store

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What Makes Information Useful?
 It is accurate
 Free of errors

 It is relevant
 Applies to the issue under study

 It is complete
 Includes everything needed

 It is timely
 Available when needed

 It is flexible
 Can be viewed in various ways

 It is verifiable
 Basis for results can be traced

 It is reliable
 Results are always consistent

 It is accessible
 All those who need the information can get to it

 It is secure
 Free from contamination (accidental or deliberate)
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What is Meant by a “Computer-Based Information System”? An information system using computer and telecommunications technology to perform its intended tasks.
Employs some combination of hardware, software, database, network, procedures, and people.

An information system developed

to provide a solution to a business problem.
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 Fast, accurate processing of business

Organizations Have High Expectations of Their Information Systems

transactions.  Storage, retrieval, analysis, and data sharing to
 Increase communication  Reduce overload  Span organizational boundaries  Support and improve decision making.

 Distinctive capabilities providing

competitive advantage.
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Key Technical Trends to Monitor
 Constantly improving

     

cost-performance ratio Increasing storage and memory User friendly interfaces Client/server architecture Network computers Enterprise-wide computers Intranets and extranets

 Data mining  Object-oriented       

environment Electronic document management Multimedia Intelligent systems Portable computing Internet expansion Electronic commerce Integrated home computing
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Using IT Strategically
 Businesses today must understand how

IT can shape and refine business strategy
 Porter’s Strategic Analysis Model
• Helps in understanding strategic forces affecting

organizations in particular industries • IT can be applied to strengthen and support a specific business strategy

 Value Chain
• Helps in identifying ways IT can improve the

quality and efficiency of organizational processes
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Chapter Summary
Today’s businesses face myriad

pressures. Information technology provides tools and capabilities to respond to those pressures. Knowledge of IT and its applications helps businesspeople develop business strategies that effectively employ IT.
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Chapter 1: Terms & Concepts
Information Technology Internet Just-In-Time Inventory Total Quality Management (TQM) Business Process Re-engineering (BPR) Enterprise Resource Planning (ERP) Electronic Commerce (e-Commerce) Information System (IS) Data/Information/Knowledge Computer-Based Information System (CBIS)
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