What is Information Technology?

 Cell phones?
• Automated calls to sales agents
 PC’s?
• Interconnected computers sharing data and other
resources
 PBX’s?
• Bring up customer accounts based upon ANI
before customer even has to provide their name

 IT is more than the sum of its individual

parts
1-1
 Introduction to Information
Technology
2nd Edition
Turban, Rainer & Potter
© 2003 John Wiley & Sons, Inc.

Chapter 1:
Introduction: Business and Information
Technology

Prepared by:
Roberta M. Roth, Ph.D.
University of Northern Iowa

1-2
 Chapter Preview
 In this chapter, we will study:
 Marketplace pressures faced by today’s
businesses and various tactical and
strategic responses.
 The distinction between data, information,
and knowledge.
 The characteristics of high quality
information.
 The components of an information system.
 The capabilities organizations expect of
information systems.
 Opportunities to use information systems
strategically.
1-3
 Today’s Business Environment
Characterized by:
Rapid Change
Complexity
Global Economy
Hyper-competition
Customer Focus
Businesses face pressure to
produce more with fewer resources

1-4
 Organizational Responses
Pressures provoke proactive and
reactive organizational responses.
Business responses to pressures
may involve use of Information
Technology and Information
Systems.
In some cases, IT is the only
solution to business pressures.
Knowledge of IT capabilities is
essential to today’s
businesspeople. 1-5
Why Should You Learn About IT?
 What can be done with IT and the
consequences of using IT are very
interesting.
 Organizational structure, management,
and business processes are often
changed with IT.
 Career opportunities are abundant in IT.
 IT affects every business functional
area.

1-6
 Some Key Definitions
Data: raw facts; collected, not
organized.
Information: data organized in a
meaningful way.
Knowledge: information organized
to convey understanding,
experiences, accumulated
learning, or expertise.

1-7
 What is an Information System?
A system that collects, processes,
stores, analyzes, and distributes
information.
Data Calculations
Process
Collect Produce
And
Instructions Inputs Outputs
Transform Reports

Store

1-8
What Makes Information Useful?
 It is accurate  It is relevant
 Free of errors  Applies to the issue
under study
 It is complete
 It is timely
 Includes everything  Available when
needed needed
 It is flexible  It is verifiable
 Can be viewed in  Basis for results can
various ways be traced
 It is reliable  It is accessible
 Results are always  All those who need
consistent the information can
get to it
 It is secure
 Free from
contamination
(accidental or 1-9

deliberate)
 What is Meant by a
“Computer-Based Information
System”?
An information system using
computer and telecommunications
technology to perform its intended
tasks.
Employs some combination of
hardware, software, database,
network, procedures, and people.
An information system developed
to provide a solution to a business
problem.
1-10
 Organizations Have High
Expectations of Their Information
Systems
 Fast, accurate processing of business
transactions.
 Storage, retrieval, analysis, and data
sharing to
 Increase communication
 Reduce overload
 Span organizational boundaries
 Support and improve decision making.
 Distinctive capabilities providing
competitive advantage.
1-11
Key Technical Trends to Monitor
 Constantly improving  Data mining
cost-performance  Object-oriented
ratio environment
 Increasing storage  Electronic document
and memory management
 User friendly  Multimedia
interfaces  Intelligent systems
 Client/server  Portable computing
architecture
 Internet expansion
 Network computers
 Electronic commerce
 Enterprise-wide
computers  Integrated home
computing
 Intranets and
extranets 1-12
 Using IT Strategically
 Businesses today must understand how
IT can shape and refine business
strategy
 Porter’s Strategic Analysis Model
• Helps in understanding strategic forces affecting
organizations in particular industries
• IT can be applied to strengthen and support a
specific business strategy
 Value Chain
• Helps in identifying ways IT can improve the
quality and efficiency of organizational processes

1-13
 Chapter Summary
Today’s businesses face myriad
pressures.
Information technology provides
tools and capabilities to respond to
those pressures.
Knowledge of IT and its
applications helps businesspeople
develop business strategies that
effectively employ IT.
1-14
 Chapter 1: Terms & Concepts
Information Technology
Internet
Just-In-Time Inventory
Total Quality Management (TQM)
Business Process Re-engineering (BPR)
Enterprise Resource Planning (ERP)
Electronic Commerce (e-Commerce)
Information System (IS)
Data/Information/Knowledge
Computer-Based Information System (CBIS)

1-15