Chapter 1

Business Driven
Technology

McGraw-Hill/Irwin 2008 The McGraw-Hill Companies, All Rights Reserved

 Learning Outcomes
1.1 Compare management information
systems (MIS) and information
technology (IT)

1.2 Describe the relationships among

people, information technology, and
information

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 Learning Outcomes
1.3 Identify four different departments in a
typical business and explain how
technology helps them to work together

1.4 Compare the four different types of

organizational information cultures and
decide which culture applies to your
school

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Information Technologys Role in
Business
Information technology is everywhere in business

1-4
Information Technologys Impact on
Business Operations

1-5
Information Technologys Impact on
Business Operations

1-6
Information Technologys Impact on
Business Operations

1-7
Information Technologys Impact on
Business Operations
Organizations
typically operate by
functional areas or
functional silos

Functional areas
are interdependent

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Information Technology Basics
Information technology (IT) a field
concerned with the use of technology in
managing and processing information

Information technology is an important

enabler of business success and
innovation

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Information Technology Basics
Management information systems (MIS) a
general name for the business function and
academic discipline covering the application of
people, technologies, and procedures to solve
business problems

MIS is a business function, similar to

Accounting, Finance, Operations, and Human
Resources

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Information Technology Basics
When beginning to learn about
information technology it is important to
understand
Data, information, and business intelligence
IT resources
IT cultures

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 Information
Data - raw facts that describe the
characteristic of an event

Information - data converted into a

meaningful and useful context

Business intelligence applications and

technologies that are used to support
decision-making efforts
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 Data, Information, and BI
Data in an Excel Spreadsheet

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 Data, Information, and BI
Data turned into information

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 Data, Information, and BI
Information turned into Business Intelligence

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 IT Resources

People use

Information
technology to
work with

Information

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 IT Cultures
Organizational information cultures
include:
Information-Functional Culture - Employees
use information as a means of exercising
influence or power over others. For example, a
manager in sales refuses to share information
with marketing. This causes marketing to need
the sales managers input each time a new
sales strategy is developed.

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 IT Cultures
Information-Sharing Culture -
Employees across departments trust each
other to use information (especially about
problems and failures) to improve
performance.

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 IT Cultures
Information-Inquiring Culture -
Employees across departments search for
information to better understand the future
and align themselves with current trends
and new directions.
Information-Discovery Culture -
Employees across departments are open
to new insights about crisis and radical
changes and seek ways to create
competitive advantages. 1-19
END OF CHAPTER ONE

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