Itm Exam 1 Study Guide

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Chapter 1
APPLE CASE STUDY:
Information Systems in Business
-CEO Steve Jobs purchased SoundStep from Jeff Robbin, who wrote codes from scratch to develop the first version of iTunes for the mac. Jobs envisioned a portable iTunes like a discman, 9 months later iPod was born. -Jobs wanted an online store, 18 months after the launch of the iPod, Apples iTunes Music Store opened for business. -Apple- Goal to sell 1 million songs in the first 6 months, sold the songs in 6 days. -John Lin created a remote control.

-There are 500 accessories, 75% of all iPod owners purchase at least one accessory, so 30 million accessories have been sold. iPod economy could be as high as $6 billion. Music industry is suffering. Nike and Apple partnered to create the Nike iPod SportKit, but they discovered that users were becoming a surveillance target.

Information technology goals:
-Reduce costs/improve productivity
-Improve customer satisfaction/loyalty
-Create competitive advantage
-Generate growth
-Streamline supply chain
-Global expansion

Businesses operate by functional areas often called functional silos. These areas are interdependent, so they must work together and not be a “silo.” Examples of departments= accounting, finance, marketing, human resources, management information systems, and operations management.

Information technology is a field concerned with the use of technology in managing and processing information. It represents business success and innovation.

Management information systems (MIS) is a general name for the business function and academic discipline covering the application of people, technologies, and procedures- collectively called information systems- to solve business problems.

Data- raw facts that describe characteristic or an event.
Information- data converted into meaningful and useful context.

Business intelligence refers to applications and technologies that are used to gather, provide access to, and analyze data and information to support decision- making efforts.

People use information technology to work with information which creates success. If one fails, they all fail.

Organizational information Cultures
1.Information-Functional Culture: employees use information as a means of exercising influence or power over others. Employees refuse to share information. 2.Information-Sharing Culture: employees across departments trust each other to use information to improve performance. 3.Information-Inquiring Culture: Employees across departments search for information to better understand the future and align themselves with current trends and new directions. 4.Information-Discovery Culture: Employees across departments are open to new insights about crises and radical changes and seek ways to create competitive advantages.

Chief information officer (CIO) is responsible for (1) overseeing all uses of information technology and (2) ensuring the strategic alignment of IT with business goals and objectives. Reports directly to CEO. The U.S Senate had the first CIO.

Chief technology officer (CTO) is responsible for ensuring the throughput, speed, accuracy, availability, and the reliability of an organizations information technology. Reports to CIO.

Chief security officer (CSO) is responsible for ensuring the security of IT systems and developing strategies and IT safeguards against attacks from hackers ad viruses.

Chief privacy officer (CPO) is responsible for ensuring the ethical and legal use of information within an organization. Newest senior executive position in IT, many are lawyers.

Chief knowledge officer (CKO) is responsible for collecting, maintaining, and distributing the organizations knowledge. Can contribute directly to the bottom line by reducing the learning curve for new employees.

Communication gap between business personnel and IT personnel, because each has their own vocabularies.

It’s hard to measure the success of IT...
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