Role of Ict in a Business

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ROLE OF INFORMATION
DATA INFORMATION KNOWLEDGE

INTELLIGENCE •Forms of Information •Human Information Sources •NOT ALL SEEN AS A COST, BUT USE AS A ASSET??

(Data -- Information – Intelligence Knowledge (Implicit/tacit) INNOVATION

WHY ARE WE IN BUSINESS ???

TO MAKE MONEY!!!

Systems Approach
ENVIRONMENT

INPUT

PROCESS (Transformation Structuring)

OUTPUT

Competitive

PROVIDING VALUE TO A CUSTOMER
NEED

Organization Transformation process

CUSTOMER

For Profit Organization

Maximize shareholder value make money (E = A-L)

WINDOW OF OPPORTUNITY
ENVIRONMENT FORCES
ORGANISATION
WINDOW OF OPPORTUNITY

PESTE INDUSTRY
ORGANISATION

INPUT FACTORS

(PROCESS/VALUE CHAIN)

Porter Five Competitive Forces
Threat of new Entrants

Supplier Power

Industry Competition

Customer Power

Threat of Substitute Products

Entrepreneurial Monopoly

Competition
WINDOW OF OPPORTUNITY

HIGH

DEMAND

$$

TIME
LOW

SUPPLY

HIGH

SURVIVAL = GROWTH & PROFITABILITY

ORGANISATION $$

WINDOW OF OPPORTUNITY

WINDOW OF OPPORTUNITY

INDUSTRY

PROFITABILITY

Entrepreneurial Monopoly

Competition

Profitability
Output (Price) – Cost (Input + transformation)

HIGH

Productivity
(Output/Input) x 100%

DEMAND

$$ TIME

LOW

SUPPLY

HIGH

GROWTH & PROFITABILITY

OUTPUT - Strategy

COMPETITIVE

(MARKETS)

INNOVATION (Cont Improvement) COST

FOCUS
DIFFERENTIATION

COMPETING


TRADITIONAL WAYS:
– COST: Low cost producer of good or service – DIFFERENTIATION: Enhancing perception of product or service – Focus: Sales information, just-in-time materials, better cash management

*

GOAL: PROVIDING VALUE TO A STAKEHOLDER
NEED

OWNER/SHAREHOLDER (price of company stock)
EMPLOYEES SUPPLIER

Organization Transformation process

WINDOW OF OPPORTUNITY

CUSTOMER

Value chain

VISION/MISSION What sets the organization apart from other organisations and identifies the scope of its operations. A specification of the firm’s ultimate goals (How does it intent to survive, grow and be prosperous) . Interpretations of questions that heighten the organisation’s sense of purpose. In order to achieve this, questions like; “what business are we in?” “what is our core business?”, “who are our customers?”, and “why does the organisation exist?” need to be answered. During these formulation stages, social responsibility should be a critical consideration for strategic decision-makers, since the mission statement must express how the company intents to contribute to the societies that sustain it.

Systems Approach
ENVIRONMENT

INPUT

PROCESS (Transformation Structuring)

OUTPUT

Competitive

TRANSFORMATION
Entrepreneur FIN RAW MAT INFO

•MAN*MACHINE •MONEY*MATERIALS •METHODS (TECH)*(MARKETS) + INFO

OUTPUT
WINDOW OF OPPORTUNITY

HR
TECH INPUT FACTORS

TRANSFORMATION

6 M’s
•MAN
•MONEY •METHODS

*MACHINE
*MATERIALS *(MARKETS)

• + INFORMATION (NEED IT TO MANAGE OTHER RESOURCES)

General Management - PLOC

Budget Cost Infra

Tech

Fin

HR
Raw - Material

Time

ICT’S Impact
START

Input Factors

*MACHINE •MONEY* MATERIALS •METHODS *(MARKETS) • + INFORMATION PROFILE

•MAN

OUTPUT

WINDOW OF OPPORTUNITY

ENVIRONMENT

MEASURE OF ICT’S VALUE ROI Employee Satisfaction Earnings Growth

OWNER/SHAREHOLDER (price of company stock)

Market Share

EMPLOYEES SUPPLIER

Organization Transformation process

CUSTOMER

Supplier Satisfaction

Value chain
Total Cost of Ownership

Customer Satisfaction
Profitability
Output (Price) – Cost (Input + transformation)

Productivity
(Output/Input) x 100%

ICT

Business

COMPETITIVE INTELLIGENCE

EXTERNAL ENVIRONEMNT
Mission S=G&P OBJECTIVES
PROFILE (S W) ENVIRONMENT

SYNTHESIS

(O T) PESTE/

COST FOCUS

PORTER’s 5

Porter 5 Forces

DIFF

WINDOW OF OPPORTUNITY

(PROCESS/VALUE CHAIN)

Porter Five...
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