Information Technology Summary
The Digital World
Why is IT such a powerful force?
Pervasive, encourages innovation
Improve business processes – allows businesses to use new tools to analyse data
Cash study: Synergy Sports Technology
Problem: lack of hard data usable in decision-making processes; costly and competitive market
Solution: developed new system – collects and organises data using video clips of games
Rise of digital firm
Significant business relationships are digitally enabled and mediated
Core business processes are accomplished through digital networks
Key corporate assets are managed digitally
Greater flexibility in organisation and management – time and space shifting
IT comprises of
Large and powerful servers / PCs, desktops, laptops / Networks, databases
Others
Green computing
New tools: social media, peer-to-peer, blogging, web 2.0
IT-business strategic fit
Growing interdependence between ability to use information technology and ability to implement corporate strategies and achieve corporate goals
Business firms invest heavily in info systems to achieve 6 strategic business objectives
Operational excellence
Improvement in efficiency to attain higher profitability
Info systems, technology an important tool in achieving greater efficiency and productivity
Eg. Wal-Mart’s RetailLink system links suppliers to stores for superior replenishment system
New products, services, business models
Business model: describes how company produces, delivers and sells product or service to create wealth
E.g. Apple’s iPod, iTunes, iPhone; Netflix’s Internet-based DVD rentals
Customer and supplier intimacy
Customer service improves more returning customers increase revenue and profit
Intimacy with suppliers allows them to provide vital inputs that lower costs. E.g. J.C.Penney’s info system links sales records to contract manufacturer
Improved decision making
Lack of accurate information – managers needs to use forecasts/guesses/luck, leading to:
Why is IT such a powerful force?
Pervasive, encourages innovation
Improve business processes – allows businesses to use new tools to analyse data
Cash study: Synergy Sports Technology
Problem: lack of hard data usable in decision-making processes; costly and competitive market
Solution: developed new system – collects and organises data using video clips of games
Rise of digital firm
Significant business relationships are digitally enabled and mediated
Core business processes are accomplished through digital networks
Key corporate assets are managed digitally
Greater flexibility in organisation and management – time and space shifting
IT comprises of
Large and powerful servers / PCs, desktops, laptops / Networks, databases
Others
Green computing
New tools: social media, peer-to-peer, blogging, web 2.0
IT-business strategic fit
Growing interdependence between ability to use information technology and ability to implement corporate strategies and achieve corporate goals
Business firms invest heavily in info systems to achieve 6 strategic business objectives
Operational excellence
Improvement in efficiency to attain higher profitability
Info systems, technology an important tool in achieving greater efficiency and productivity
Eg. Wal-Mart’s RetailLink system links suppliers to stores for superior replenishment system
New products, services, business models
Business model: describes how company produces, delivers and sells product or service to create wealth
E.g. Apple’s iPod, iTunes, iPhone; Netflix’s Internet-based DVD rentals
Customer and supplier intimacy
Customer service improves more returning customers increase revenue and profit
Intimacy with suppliers allows them to provide vital inputs that lower costs. E.g. J.C.Penney’s info system links sales records to contract manufacturer
Improved decision making
Lack of accurate information – managers needs to use forecasts/guesses/luck, leading to: