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1、Chapter 1The Information Age in Which You Live:Changing the Face of BusinessINTRODUCTIONManagement information systems (MIS) helping people perform all tasks related to information processing and management. 3 key resources:1.People2.Information3.Technology MIS RESOURCE #1: INFORMATIONInformationInf
2、ormation is is often often aggregated aggregated data that has data that has meaning such meaning such as average as average age, youngest age, youngest and oldest and oldest customer, and customer, and a histogram of a histogram of customer agescustomer agesDataData raw raw factsfactsMIS RESOURCE #
3、1: INFORMATIONBusiness intelligence Business intelligence collective information that supports important, collective information that supports important, strategic decision makingstrategic decision makingMIS RESOURCE #2: PEOPLEPeople are the most important resource in any organization, with a focus
4、onTechnology literacy knowing how/when to apply technologyInformation literacy knowing how to use informationEthical responsibilitiesMIS RESOURCE #3: INFORMATION TECHNOLOGYFINANCIAL IMPACT OF INFORMATION TECHNOLOGYIT can definitely impact break-even analysisFixed costs costs you incur even if you do
5、nt sell anythingVariable costs costs you incur when you sell something (COGS)Revenue how much you sell one unit forFINANCIAL IMPACT OF INFORMATION TECHNOLOGYReduce Fixed CostsReduce Fixed CostsReduce Variable CostsReduce Variable CostsIncrease RevenueIncrease Revenue Recommendation EnginesRecommenda
6、tion Engines Long-Tail EconomicsLong-Tail Economics Many othersMany othersINDUSTRY IMPACT OF INFORMATION TECHNOLOGYPorters Porters Five Forces Model Five Forces Model helps business people understand the relative helps business people understand the relative attractiveness of an industry and the ind
7、ustrys competitive pressures.attractiveness of an industry and the industrys competitive pressures.Buyer & Supplier PowerBuyer power high when buyers have many choices and low when their choices are fewSupplier power high when buyers have few choices and low when choices are manyThe inverse of each
8、otherThreat of Substitute Products and Services and New EntrantsThreat of substitute products and services high when there are many alternatives for buyersThreat of new entrants high when it is easy for competitors to enter the marketRivalry among existing competitors high when competition is fierce
9、STRATEGY IMPACT OF INFORMATION TECHNOLOGYPorter identified 3 generic business strategies for beating the competition1.Overall cost leadership2.Differentiation3.FocusSTRATEGY IMPACT OF INFORMATION TECHNOLOGYCost leadership Cost leadership - offering - offering the same or better quality the same or b
10、etter quality product or service at a product or service at a price that is less than what price that is less than what any of the competition is any of the competition is able to do able to do DifferentiationDifferentiation - - offering a product or offering a product or service that is service tha
11、t is perceived as being perceived as being “unique” in the “unique” in the marketplacemarketplaceFocus Focus - focusing on offering products or services to a - focusing on offering products or services to a particular segment or buyer group, within a segment of particular segment or buyer group, within a segment of a product line, to a specific geographic market, etc a product line, to a specific geographic market, etc Run-Grow-Transform (RGT) FrameworkRun-grow-transform (RGT) framework the allocation in terms of percentages of IT dollars on various types of business strategies
