Chapter 1: Information Systems in Business
1. IT Role in Business
a. Increasing Business Intelligence
b. Facilitate Communication
2. Business Departments Utilizing IT
a. Accounting
b. Finance
c. Human Resources
d. Sales
e. Marketing
f. Operations Management
g. Management Information System
3. Definitions
a. IT: A field concerned with the use of technology in managing and processing information.
b. Management Information Systems (MIS): General name of business function and academic discipline
covering the application of people, technologies, and procedures to
solve problems.
c. Data: Raw that describe the characteristics of an event
d. Information: Data converted into a meaningful and useful context
e. Business Intelligence: Applications and technologies that are used to gather, provide access to, and
analyze data and information to support decision making efforts.
f. Business Process: Standardized set of activities that accomplish a specific task, such as processing a customer’s order.
4. Roles in IT
a. CIO- Chief Information Officer
b. CTO- Chief Technology Officer
c. CSO- Chief Security Officer
d. CPO- Chief Privacy Officer
e. CKO- Chief Knowledge Officer
5. Measuring Success of IT
a. Two main measuring tools that provide to the Key performance indicator (KPI) – measures that are tied to business drivers
i. Effectiveness (impact)- Usability, satisfaction, conversion, financial.
ii. Efficiency (performance)- Throughput, transaction speed, uptime, accuracy, etc.
b. Benchmarks – baseline values the system seeks to attain
c. Benchmarking – a process of continuously measuring system results, comparing results (benchmark values),
and identifying improvements.
6. Porter’s 5 Force Model
a. Threat of substitute product or service
b. Buyer Power
c. Threat of new entrants (bargaining power of channels and end users)
d. Supplier power (bargaining power of suppliers)
e. Rivalry among existing competitors
7. Porter’s Three Generic Strategies
a. Broad Market- Low Cost:Cost Leadership
b. Broad Market- High Cost: Differentiation
c. Narrow Market-Low/High Cost: Focused Strategy
All Information above compiled from below reference
Gordon, B., & Ducham, P. (2011). Information Systems. New York: McGraw-Hill/Irwin.
a. Increasing Business Intelligence
b. Facilitate Communication
2. Business Departments Utilizing IT
a. Accounting
b. Finance
c. Human Resources
d. Sales
e. Marketing
f. Operations Management
g. Management Information System
3. Definitions
a. IT: A field concerned with the use of technology in managing and processing information.
b. Management Information Systems (MIS): General name of business function and academic discipline
covering the application of people, technologies, and procedures to
solve problems.
c. Data: Raw that describe the characteristics of an event
d. Information: Data converted into a meaningful and useful context
e. Business Intelligence: Applications and technologies that are used to gather, provide access to, and
analyze data and information to support decision making efforts.
f. Business Process: Standardized set of activities that accomplish a specific task, such as processing a customer’s order.
4. Roles in IT
a. CIO- Chief Information Officer
b. CTO- Chief Technology Officer
c. CSO- Chief Security Officer
d. CPO- Chief Privacy Officer
e. CKO- Chief Knowledge Officer
5. Measuring Success of IT
a. Two main measuring tools that provide to the Key performance indicator (KPI) – measures that are tied to business drivers
i. Effectiveness (impact)- Usability, satisfaction, conversion, financial.
ii. Efficiency (performance)- Throughput, transaction speed, uptime, accuracy, etc.
b. Benchmarks – baseline values the system seeks to attain
c. Benchmarking – a process of continuously measuring system results, comparing results (benchmark values),
and identifying improvements.
6. Porter’s 5 Force Model
a. Threat of substitute product or service
b. Buyer Power
c. Threat of new entrants (bargaining power of channels and end users)
d. Supplier power (bargaining power of suppliers)
e. Rivalry among existing competitors
7. Porter’s Three Generic Strategies
a. Broad Market- Low Cost:Cost Leadership
b. Broad Market- High Cost: Differentiation
c. Narrow Market-Low/High Cost: Focused Strategy
All Information above compiled from below reference
Gordon, B., & Ducham, P. (2011). Information Systems. New York: McGraw-Hill/Irwin.