Role of Ict in a Business
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
$$ TIME
LOW
SUPPLY
HIGH
GROWTH & PROFITABILITY
OUTPUT - Strategy
COMPETITIVE
(MARKETS)
INNOVATION (Cont Improvement) COST
FOCUS
DIFFERENTIATION
COMPETING
TRADITIONAL WAYS:
– COST: Low cost producer of good or service – DIFFERENTIATION: Enhancing perception of product or service – Focus: Sales information, just-in-time materials, better cash management
*
GOAL: PROVIDING VALUE TO A STAKEHOLDER
NEED
OWNER/SHAREHOLDER (price of company stock)
EMPLOYEES SUPPLIER
Organization Transformation process
WINDOW OF OPPORTUNITY
CUSTOMER
Value chain
VISION/MISSION What sets the organization apart from other organisations and identifies
DATA INFORMATION KNOWLEDGE
INTELLIGENCE •Forms of Information •Human Information Sources •NOT ALL SEEN AS A COST, BUT USE AS A ASSET??
(Data -- Information – Intelligence Knowledge (Implicit/tacit) INNOVATION
WHY ARE WE IN BUSINESS ???
TO MAKE MONEY!!!
Systems Approach
ENVIRONMENT
INPUT
PROCESS (Transformation Structuring)
OUTPUT
Competitive
PROVIDING VALUE TO A CUSTOMER
NEED
Organization Transformation process
CUSTOMER
For Profit Organization
Maximize shareholder value make money (E = A-L)
WINDOW OF OPPORTUNITY
ENVIRONMENT FORCES
ORGANISATION
WINDOW OF OPPORTUNITY
PESTE INDUSTRY
ORGANISATION
INPUT FACTORS
(PROCESS/VALUE CHAIN)
Porter Five Competitive Forces
Threat of new Entrants
Supplier Power
Industry Competition
Customer Power
Threat of Substitute Products
Entrepreneurial Monopoly
Competition
WINDOW OF OPPORTUNITY
HIGH
DEMAND
$$
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