Information Technology's Impact on Business Operations
Information Technology has had an impact on many areas within a business that may include the way Accounting is ran, finance, Human Resources (HR), Sales, Marketing, Operation Management and the Management of Information Systems.
What is IT about - It's the field that's concerned with the managing and processing of information.
MIS - The business function and academic discipline covering the application of people, technologies and procedures.
Technology Basics
When talking about Data it is information and business intelligence - RAW facts that descrube the characteristic of an event.
Information - Data converted into a meningful and useful context - Rows of data in an excel spreadsheet with columns showing what the data represents.
Business Intelligence - Applications and technologies that are used to gather provide access to and analyses data.
To have a successful IT resourced business it involved the following - Information + People + IT = Business Success.
Some Roles you may encounter in IT - Chief Information Officer, Chief Technology Officer, Chief Knowledge Officer and Chief Privacy Officer.
Ways of managing how successful an IT process is include:
KPI - Key Performance Indicators.
Metrics - Are detailed measures that feed KPIs.
Performance Metrics fall into an area that's covered by two parts within the business. Requires input from both IT and Business Professionals.
IT Metrics focus on technology and include; throughput, transaction speed, system availability, information accuracy, web traffic and response time.
Effectiveness can focus on the organizations goals and strategies - Usability, Customer Satisfaction, Conversion rates and Financial.
Business Strategy - To survive and thrive and thrive an organization must create a competitive advantage.
There are two kinds of advantages - Competitive Advantage and First-Mover Advantage. The Competitive - a product or service that an organisation’s customers place a greater value on than similar offerings from a competitor. First-Mover Advantage - occurs when an organisation can significantly impact its market share by being first to market with a competitive advantage.
Porter's Five Forces Model allows us to determine the relative attractiveness of an industry through; Buyer Power, Supplier Power, Threat of Substitute Products or Services, Threat of new entrants and Rivalary among existing Competitors.
Buyer Power - High when buyers have many choices to buy from. Low with loyalty programs etc.
Supplier Power - High when one supplier has concentrated power over an industry. Buyers have few choices of whom to buy from.
Threat of Substitue Products - High when there are many alternatives to a product or a service.
Threat of new Entrants - High when it is easy for new competitors to enter a market. Low with significant entry barriers.
Rivalary among existing competitors - High when competition is fierce in a market and low when competition is more complacent.
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