Chapter 1 Business Driven Technology Chapter 1: Management Information Systems: Business Driven MIS MANGT 366 Information Technology for Business

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Class Focus this semester

Business Driven Technology – Business initiatives should drive technology choices • Business needs first: technology supports those needs • Core business fundamentals are constant or get better: technology changes • Business Intelligence – How do we acquire it?

– What do we do with it?

– – How do we use it?

Defined: A broad category of applications and technologies for gathering, storing, analyzing and providing access to data to help users make • D decision making Also referred to as • Management 665 Business Analytics and Data Mining B Big Data Analytics: Answers from Big Data

Information Technology’s Role in Business

• Information technology is

Information Technology’s Impact on Business Operations

• For a long time, the different parts of a business were organized by independent functional areas or functional silos: everyone thought that what happened in one part of the business was totally independent from other areas of the business.

While you might think that each of the different areas of a business are independent, they are actually because they require information from around the organization in order to operate. They do

Information Technology (IT)

• In order to be successful in business, you must understand – Using IT and/or spending lots of money on IT will not equal business success.

• IT is used to – IT by itself does not get the job done.

– IT is only useful if the right people know and effectively.

of people • IT is (and if you don’t know how to use the tool, then you won’t be successful)

The function of the IT department is to get p , t and procedures to work together • In order for this to happen, it is important to understand – Data, information and business intelligence – IT resources • Information technology is and if you want to be successful in business, you need to understand technology.

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Data

the characteristic of an event Data recording sales events in an Excel Spreadsheet Without analyzing the data, it is just a

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Information

Data information Data turned into information is One person’s information might be (store manager vs CEO)

You can analyze that data even further by to gain

help us gain a better understanding of our data and information: primary business analysis tool

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Business Intelligence

The analysis of data and information from to gain a business – Analyze – Attempt to determine – P impacting your analytics (develop models to predict behavior) – Used in business decision-making (Data Analytics) • These multiple sources include: – Suppliers Customers – Competitors Business partners – Data from industry Data from governmental sources • Manipulate multiple variables from multiple sources (sometimes even manipulate hundreds of variables) to of the data.

What is Business Intelligence (BI)?

P

use

Information technology

IT Resources

I

• The single most important resource in any organization is . Your greatest asset is your (your ability to think). – Information technology (IT) is simply a you that helps

• • • Important IT Skills for Functional Areas Accounting • Finance – – – – Accounting Information Systems S D Management Web Research and – – – – S Modeling S Analysis to identify and measure risk.

Database Management Web sites and Search Engines – Network • Marketing Management – – – – E S software Database Management – – – C S Management Software ( Database Management, Data Web sites and web portals – Communications software and desktop publishing Operations Management – – Advanced Statistical techniques and advanced spreadsheet modeling Scheduling software, software, software )

The following slides are details related to the prior slide. I won’t specifically talk about these details in class, but you do need to study them because they provide additional information related to the specific IT skills that are typically needed for employees in the various business functional areas

Accounting

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Accounting Information Systems

: almost all accounting systems are computerized.

Database Management

: Accounting information is stored in databases and that info. is used to create accounting reports.

Database Design

: In order to audit accounting systems, accountants must understand the design of the database and be able to follow transactions through the system.

Web Research

: Accountants frequently consult rules and regulations available on the Internet: must be able to rapidly search for and apply information found.

Network Security

: Knowledge of a company’s computer systems and networks is required to assure the security of a company’s information.

Spreadsheet modeling

: financial projections and analyses require extensive use of electronic spreadsheets and accountants must be very skilled in the use of spreadsheets.

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Finance

Spreadsheet modeling

: advanced knowledge is essential as you forecast cash flows and evaluate changes in assumptions.

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Statistical Packages and Statistical Analysis

: Used to help decision makers identify and measure project risk.

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Database Management

: Must be able to create, maintain and manipulate financial measures stored in a database.

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Internet Sites and Web Portals

: Corporations use web sites to provide investors with company information. Automated bill paying impacts both accounts receivable and accounts payable.

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Search Engines

: Must be able to accurately and efficiently gather required business information from external sources.

• Must

understand the technological strategy and technological innovation being used in the industry

. For example, what are banks doing?

Marketing

• Must understand the use of

Customer Relationship Management (CRM) software

and how it can be used to manage relationships with customers.

• • Must understand

Budget Analysis/Impact Software and Spreadsheet Software:

Used to evaluate financial feasibility of new products and services, as well as advertising and promotion strategies. Must be able to run “What If” scenarios.

Database Management

: Marketers work with vast amount of information that is stored in databases, and you must know how that information is organized and how it can be accessed.

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Data Warehouses and Data-Mining Tools

analyze it.

provide a way to summarize large amounts of information and understand it from a different perspective. Must be able to extract information from a data warehouse and be able to • Must be able to work with

communications support software,

including email and contact management software.

• Must be familiar with

desktop publishing software

create marketing materials. which is often used to

Management

• Must understand the role of

Enterprise Resource Planning Systems (ERP)

and how ERP systems promote the corporate wide sharing and communication of information.

• Managers use

spreadsheets

to calculate value, display financial information and work with numbers.

• • The information used by managers and the people that they supervise can be found in

databases

.

Internet Sites and Web Portals

: Corporations use web sites to display and access information, as well as link employees, recruiters and other institutions.

• One of the new areas of business is

Electronic Commerce

, and managers must understand the potential of information technology and the skills needed to be successful in business to-business and business-to-consumer electronic commerce.

Production and Operations Management

• For most careers in POM, a detailed knowledge of

statistical tools and techniques

is essential.

•

Advanced decision support spreadsheet functions,

careers.

such as goal seeking, optimization, and statistical tools, provides support for many POM • A knowledge of work with each department of a company, integrating solutions to maximize customer value.

Supply Chain Management Systems

allows a person to • Must have an understanding of

Material Requirements Planning Software

(part of ERP) and how the business operates from beginning to end and how to optimally model those operations.

• Must be able to use resources (people, plant equipment, transportation modes, manufacturing operations).

scheduling software

to optimally schedule business • Must be proficient in the use of

Data-Mining Tools

techniques in order to be able to find relationships in the information contained within data warehouses. and other statistical