IT for Management

MBA 131 Module 1

Information Technology
The collection of computing systems used by an organization is termed information technology (IT)

Why should you learn about IT?

A major role of IT is being an enabler and facilitator of organizational activities, processes, and change for increased performance and competitiveness. That role will become more important as time passes. Therefore, it is necessary that every manager learn about IT not only in his or her specialized field, but also in the entire organization and in inter-organizational settings as well.

Why should you learn about IT? (cont d)

Finance specialization
Finance departments use information systems such as business intelligence to monitor world financial markets and to provide quantitative analysis (e.g., for cash flow projections and budgetary control). They use computerized analysis to support financial decision making (e.g. portfolio management)

Why should you learn about IT? (cont d)

Marketing specialization
Marketing now uses customer databases, decision support systems, sales force automation, business intelligence, and data mining software to better perform its functions. The internet has created an entirely new global trading environment.

Why should you learn about IT? (cont d)

Operations specialization
Competing on price, quality, speed, and customer service Production is changing from mass production to on-demand mass customization (e.g., Dell) Supply chain management

Information System
The basic components of information systems are listed below.
Hardware is a set of devices such as processor, monitor, keyboard, and printer Software is a set of programs that instruct the hardware to process data A network is a connecting system that permits the sharing of resources by different computers. It can be wireless Procedures are the set of instructions about how to combine the above components in order to process information and generate the desired output People are those individuals who work with the system, interface with it, or use its output

Real-time system
IS that provides fast enough access to information or data so that an appropriate decision can be made, usually before data or situation changes. Online order payment by credit card is checked for the balance and the amount of the purchase is debited all in one second. This way authorization is given fast enough for both seller and buyer.

Digital Enterprise
An organization that uses computers and information systems to perform or support its activities. The digital enterprise uses IT to accomplish one or more of three basic objectives: Reach and engage customers more effectively Boost employee productivity Improve operating efficiency It also uses converged communication and computing technology to improve business processes and performance. Two major features are e-commerce and networked computing

Digital Enterprise (cont d)

A digital enterprise uses networks of computers to electronically connect All its internal parts via an intranet All its business partners via the Internet or via a secured Internet called extranet, or via value-added private communication lines

Digital Economy
Economy based on digital technologies and whose members are better informed and able to communicate because of IT. Flooded with digital products and services: Information and entertainment products that are digitized (documents, graphics, audios, videos, software) Symbols, tokens, and concepts (tickets, reservations, financial instruments) Processes and services (electronic messaging, auctions, remote education) Characterized by extensive use of IT in general and the Internet in particular. New business models, reduce cost and increase quality, customer service, and speed.

Major IT characteristics in the Digital Economy

Globalization->communication & collaboration; electronic market places, customers, suppliers, and partners Digital systems->TVs, telephones Speed->real-time transactions Information overload->but also intelligent search tools Markets->Markets are moving online (e.g., eBay) Digitization->music, books, pictures, movies Business models and processes->e-commerce Innovation->more patents Obsolescence Opportunities Fraud Wars Organizations->e-business

Mobile computing
Organizations are embracing mobile computing technologies for several reasons:
Field service workers of all kinds need to be more productive (e.g., KSRTC ticket issue) Wireless telecom support for mobility is growing quickly More applications can run both online and offline The prices of notebook computers, wireless handhelds, and smart phones continue to fall and their capabilities increase.