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IT IN BUSINESS

Spring 2012 FAST NU


Saba Pervez

COURSE STRUCTURE
2 LABS AND 1 CLASS SESSION PER WEEK Quizzes 10% Mid Term1&2 20% Projects 20%

Final 50%

CLASS RULES
Dont be late -1 for disturbing the class Will also include some class work from time to time SABA.PERVEZ@NU.EDU.PK

COURSE OBJECTIVES

A thorough understanding of a user-level view of IT, and its role in the society. The ability to use computers to enhance productivity, including effective use of Microsoft Word, PowerPoint, Excel, and Outlook. Good understanding of the worldwide web and internet applications. How IT helps organizations perform more effectively Alignment of IT and business strategy The risks and common pitfalls of IT implementations How e-business is shaping businesses.

COURSE BOOK
Main Text: Efraim Turban and Linda Volonino Information Technology for Management: Improving Performance in the Digital Economy.

THE COMPUTER DEFINED


Electronic device Converts data into information Modern computers are digital

Two

digits combine to make data

Older computers were analog


A

range of values made data

1A-6

COMPUTERS FOR INDIVIDUAL USE

Notebook computers
Small

portable computers Weighs between 3 and 8 pounds About 8 by 11 inches Typically as powerful as a desktop Can include a docking station

1A-7

COMPUTERS FOR INDIVIDUAL USE


1A8

Tablet computers

Newest development in portable computers Input is through a pen Run specialized versions of office products

COMPUTERS FOR ORGANIZATIONS

Network servers
Centralized

computer All other computers connect Provides access to network resources Multiple servers are called server farms Often simply a powerful desktop

1A-9

COMPUTERS FOR ORGANIZATIONS


1A10

Mainframes

Used in large organizations Handle thousands of users Users access through a terminal

COMPUTERS FOR ORGANIZATIONS

Minicomputers
Called

midrange computers Power between mainframe and desktop Handle hundreds of users Used in smaller organizations Users access through a terminal

1A-11

COMPUTERS IN SOCIETY

More impact than any other invention


Changed

work and leisure activities Used by all demographic groups

Computers are important because:


Provide

information to users Information is critical to our society Managing information is difficult

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COMPUTERS IN SOCIETY

Computers at home
Many

homes have multiple computers Most American homes have Internet Computers are used for
Business
Entertainment Communication

Education

1A-13

COMPUTERS IN SOCIETY

Computers in education
Computer

literacy required at all levels

Computers in small business


Makes

businesses more profitable Allows owners to manage

Computers in industry
Computers

are used to design products Assembly lines are automated


1A-14

COMPUTERS IN SOCIETY

Computers in government
Necessary
Police

to track data for population

officers Tax calculation and collection


Governments

were the first computer users

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PARTS OF THE COMPUTER SYSTEM

Computer systems have four parts


Hardware
Software Data

User

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What's in a computer?

Major pieces processor ("central processing unit" or CPU) does the work, controls the rest memory (RAM = random access memory) stores instructions and data while computer is running disks ("secondary storage") stores everything even when computer is turned off other devices ("peripherals")

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PARTS OF THE COMPUTER SYSTEM

Hardware
Mechanical

devices in the computer Anything that can be touched

Software
Tell

the computer what to do Also called a program Thousands of programs exist

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PARTS OF THE COMPUTER SYSTEM

Data
Pieces

of information Computer organize and present data

Users
People

operating the computer Most important part Tell the computer what to do

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INFORMATION PROCESSING CYCLE


Steps followed to process data Input Processing Output Storage

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ESSENTIAL COMPUTER HARDWARE


Computers use the same basic hardware Hardware categorized into four types

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ESSENTIAL COMPUTER HARDWARE

Processing devices
Brains

of the computer Carries out instructions from the program Manipulate the data Most computers have several processors Central Processing Unit (CPU) Secondary processors Processors made of silicon and copper

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ESSENTIAL COMPUTER HARDWARE

Memory devices
Stores

data or programs Random Access Memory (RAM)


Volatile

Stores

current data and programs More RAM results in a faster system


Read

Only Memory (ROM)

Permanent

storage of programs Holds the computer boot directions


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ESSENTIAL COMPUTER HARDWARE

Input and output devices


Allows

the user to interact Input devices accept data


Keyboard,

mouse

Output

devices deliver data


printer, speaker

Monitor,

Some

devices are input and output


screens

Touch

1B-24

ESSENTIAL COMPUTER HARDWARE

Storage devices
Hold

data and programs permanently Different from RAM Magnetic storage


Floppy

and hard drive Uses a magnet to access data


Optical
CD

storage

and DVD drives Uses a laser to access data


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1B-26

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SOFTWARE RUNS THE MACHINE


Tells the computer what to do Reason people purchase computers Two types

System

software Application software

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SOFTWARE RUNS THE MACHINE

System software
Most

important software Operating system


Windows

XP Server 2003

Network

operating system (OS)

Windows

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SOFTWARE RUNS THE MACHINE

Application software
Accomplishes

a specific task Most common type of software


MS

Word

Covers

most common uses of computers

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COMPUTER DATA
Fact with no meaning on its own Stored using the binary number system Data can be organized into files

1B-31

COMPUTER USERS

Role depends on ability


Setup

the system Install software Mange files Maintain the system

Userless computers
Run

with no user input Automated systems


1B-32

Chapter 1

CHAPTER 1

IT Supports Organizational Performance in Turbulent Environments


John Wiley & Sons, Inc.

Copyright 2010 John Wiley & Sons, Inc.

CHAPTER OUTLINE

1.1 Doing Business in the Digital Economy 1.2 Information Systems and Information Technology (IT) 1.3 Business Performance Management, Business Pressures, Organization Responses, and IT Support 1.4 Strategy for Competitive Advantage and IT Support 1.5 Social Computing and Networking
1-2

Copyright 2010 John Wiley & Sons, Inc.

LEARNING OBJECTIVES
1. 2. 3.

4.

5.

Describe characteristics of the digital economy and digital enterprises. Define information systems, computer-based information systems and information technology. Explain the relationships between performance, environmental pressures, organizational responses, and information technology. Identify major pressures in the business environment and describe major organizational responses to them. Describe adaptive enterprises and why they are ITdependent.
1-35

Copyright 2010 John Wiley & Sons, Inc.

BUSINESS PERFORMANCE MANAGEMENT CYCLE AND IT MODEL

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TOYOTA SCIONS INNOVATIVE ADVERTISING STRATEGIES The Problem: Increasingly competitive global marketplace for the automotive industry. Toyota with introduction of Scion goes directly up against General Motors and the Malibu for the position of #1 car Gen Y target market manufacturer.
Wide target market

Copyright 2010 John Wiley & Sons, Inc.

GM

Vs.

Toyota
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Copyright 2010 John Wiley & Sons, Inc.

TOYOTA SCIONS INNOVATIVE ADVERTISING STRATEGIES (CONTINUED)

Toyota known for its manufacturing innovations. Aggressive web-presence strategy. Generation Y population, those born 19801994, expected to be a bigger consumer base than the Baby Boomers and the target market of the Scion.

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Copyright 2010 John Wiley & Sons, Inc.

TOYOTA SCIONS INNOVATIVE ADVERTISING STRATEGIES (CONTINUED)

The Solution: Segmented advertising major media-based strategy. Search engine marketing products see demo example by clicking this image:

Toyota uses Scion Campaign Has Personality-Driven Ads to reach future customers at a very young age according to
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Copyright 2010 John Wiley & Sons, Inc.

TOYOTA SCIONS INNOVATIVE ADVERTISING STRATEGIES (CONTINUED)

Toyota Uses Chat to Promote Scion smart strategy to tap into the social networks of 18 to 24 year old audience. Various providers of live chat software exist such as:

1-40

Chapter 1

DIGITAL ECONOMY NEW ECONOMY


41

E-Business: The use of electronic technologies to transact business Collaboration: People and Organizations interact, communicate, collaborate, and search for information Information Exchange: Storing, processing and transmission of information

Chapter 1

DIGITAL ECONOMY

42

Based on digital technologies (networking, communication etc.) that provide the platform (infrastructure) over which people and organizations interact and collaborate.

Digitized products Digitized financial transactions Everyday objects and appliances equipped with computing capabilities

DIGITAL BUSINESS
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Chapter 1

Chapter 1

MAJOR IT CHARACTERISTICS IN THE DIGITAL ECONOMY


44

Globalization Digital systems Speed (need for real-time transactions) Information overload Markets moving on-line New business models High rate of obsolescence New types of fraud and crimes

Chapter 1

DOING BUSINESS IN THE DIGITAL ECONOMY


45

The digital economy is an economy based on digital technologies, including communication networks
Also

called the Internet economy, the new economy, or the Web economy

Digital infrastructures provide a global platform over which people and organizations interact, communicate, collaborate, and search for information.

Chapter 1

THE GLOBAL PLATFORM OF THE NEW ECONOMY


46

digitizable products;
products

that can be converted to digital format. books, movies, magazines, TV and radio programming, electronic games, music CDs, and computer software.

Consumers and firm conducting financial transaction digitally. Physical goods such as home appliances and automobiles that contain embedded computer chips and connectivity capabilities.

Chapter 1

ELECTRONIC BUSINESS
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Businesses increasingly perform their basic functions: buying and selling goods and services, servicing customers, and collaborating with business partners electronically
This process is known as electronic business (Ebusiness) or electronic commerce (Ecommerce)

NEW ECONOMY VS. OLD ECONOMY


Example
Buying and selling textbook

Old
Visit the bookstore Walk around campus to Departments, Registrars office, etc.

New
Visit web site for publishers and retailers

Registering for classes

Access campus web site

Photography

Buy film, use camera, take Use digital camera picture, take it for processing Use speed pass token; wave over the sensor and go Metro cards electronic 48 cards

Paying for Gasoline

Fill up your car, go inside, pay cash or credit card

Paying for Transportation

Chapter Pay cash, metal tokens 1

Chapter 1

BUSINESS MODELS

49

A business model is a method of doing business by which a company can generate revenue to sustain itself. The model spells out how the company adds value to create a product or service.

Nokia makes and sells cell phones A TV station provides free broadcasting. Its survival depends on a complex model involving advertisers and content providers Internet portals, such as Yahoo, also use a complex business model.

Chapter 1

BUSINESS MODELS

50

To define a business model we need to describe:


Products

and services Business processes Customers and their value proposition Supply chain Revenue model

Chapter 1

DIGITAL AGE BUSINESS MODELS


51

Reverse Auctions

Affiliate Marketing
E-Marketplaces and Exchanges

Chapter 1

DRIVERS FORCING CHANGES IN BUSINESS MODELS


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Business Pressures

Environmental, organizational, and technological factors


React frequently and quickly to both the threats and the opportunities resulting from this new business environment Business Critical Response Activities

A response can be

a reaction to a pressure already in existence, an initiative intended to defend an organization against future pressures, an activity that exploits an opportunity created by changing conditions

THE DRIVERS OF CHANGE

Society Market

Chapter 1 Technology

53

Chapter 1

BUSINESS PRESSURES, ORGANIZATIONAL RESPONSES, AND IT SUPPORT


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Business Pressure - The business environment is the combination of social, legal, economic, physical, and political factors that affect business activities Significant changes in any of these factors are likely to create business pressure on the organization The three types of business pressures faced are: market, technology, and societal pressures.

Chapter 1

ORGANIZATIONAL RESPONSES
55

Strategic Systems: enable organizations to increase market share and/or profits. Customer Focus enable organizations to provide superb customer service and prevent losing customers to competitors.

Chapter 1

ORGANIZATIONAL RESPONSES (CONTINUED)


56

Make-to-Order is a strategy of producing customized products and services Mass Customization is producing a large quantity of items, but customizing them to fit the desire of each customer E-business and E-commerce is the strategy of doing business electronically

Chapter 1

INFORMATION SYSTEM
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An information system (IS) collects, processes, stores, analyzes, and disseminates information for a specific purpose. Like any other system, an information system includes inputs (data, instructions) and outputs (reports, calculations). It processes the inputs by using technology such as PCs and produces outputs that are sent to users or to other systems via electronic networks and a feedback mechanism that controls the operation.

Chapter 1

INFORMATION SYSTEM IS A SYSTEM


58

Chapter 1

COMPUTER BASED INFORMATION SYSTEM


59

Hardware Software Data Network Procedures People

Hardware Software

Data
People Application

More than hardware and software

Chapter 1

THE ADAPTIVE, REAL-TIME ENTERPRISE


60

Recognizes environmental and organizational changes as, or even before, they occur Deals with changes properly and correctly Does not wait for competitors to introduce change (1st mover strategy) Develop an innovation culture Have a scalable and appropriate IT infrastructure

Chapter 1

PORTERS COMPETITIVE FORCES MODEL


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Chapter 1

STRATEGIES OF COMPETITIVE ADVANTAGE


62

Porter:

Cost leadership Differentiation Niche market Growth Alliance Innovation Operational effectiveness Customer orientation Entry barriers Lock in customers or suppliers Increase switching costs

Other strategies

PORTERS VALUE CHAIN


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Chapter 1

Chapter 1

MANAGERIAL ISSUES
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Recognizing opportunities for using IT and Web-based systems. Who will build, operate, and maintain the information systems. How much IT? How much and HOW important is IT? Is the situation going to change? Globalization.

Chapter 1

MANAGERIAL ISSUES (CONTINUED)


65

Ethics and social issues. Transforming the organization to the digital economy.

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