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Copyright 2010 John Wiley & Sons, Inc.
Chapter 1
IT Supports Organizational Performancein Turbulent Business Environments
Information Technology for ManagementImproving Performance in the Digital Economy
7th editionJohn Wiley & Sons, Inc.
Slides contributed by Dr. Sandra ReidChair, Graduate School of Business & Professor, Technology
Dallas Baptist University
Turban and
Volonino
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Copyright 2010 John Wiley & Sons, Inc.
Learning Objectives1. Describe characteristics of the digital economy and digital
enterprises.2. Define information systems, computer-based information
systems and information technology.3. Explain the relationships between performance, environmental
pressures, organizational responses, and information technology.4. Identify major pressures in the business environment and
describe major organizational responses to them.5. Describe adaptive enterprises and why they are IT-dependent.6. Explain the function and impacts of social computing and social-
networking.7. Understand the importance of learning about information
technology.
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Copyright 2010 John Wiley & Sons, Inc.
The Business Performance Management Cycle and IT Model
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Copyright 2010 John Wiley & Sons, Inc.
Toyota Scion’s Innovative Advertising Strategies
• The Problem: Increasingly competitive global marketplace for the automotive industry. Toyota with introduction of Scion goes directly up against General Motors and the Malibu for the position of #1 car manufacturer.
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GM Vs.
Gen Y target market
Wide target market
Toyota
Copyright 2010 John Wiley & Sons, Inc.
Toyota Scion’s Innovative Advertising Strategies (continued)
• Toyota known for its manufacturing innovations.
• Aggressive web-presence strategy.• Generation Y population, those born 1980-
1994, expected to be a bigger consumer base than the Baby Boomers and the target market of the Scion.
• PBS Documentary Looks at 'Generation Next‘
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Copyright 2010 John Wiley & Sons, Inc.
Toyota Scion’s Innovative Advertising Strategies (continued)
• The Solution: Segmented advertising major media-based strategy.
Search engine marketing products – see demo example by clicking this image:
• Toyota uses Scion Campaign Has Personality-Driven Ads to reach future customers at a very young age according to
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Copyright 2010 John Wiley & Sons, Inc.
Toyota Scion’s Innovative Advertising Strategies (continued)
• In August 2007, Scion launched Club Scion to create a virtual reality world site of dance floors, music, & hot tubs for enthusiasts.
• Additional virtual world presence by Scion to attract the maturing Gen Y consumer including:- Secondlife.com- Whyville.com- Gaia.com- There.com
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Copyright 2010 John Wiley & Sons, Inc.
Toyota Scion’s Innovative Advertising Strategies (continued)
• Toyota Uses Chat to Promote Scion – smart strategy to tap into the social networks of 18 to 24 year old audience.
• Various providers of live chat software exist such as:
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Copyright 2010 John Wiley & Sons, Inc.
Toyota Scion’s Innovative Advertising Strategies (continued)
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For the 2008 xB SUV, Scion created a special Web site, want2bsquare.com
Copyright 2010 John Wiley & Sons, Inc.
Toyota Scion’s Innovative Advertising Strategies (continued)
• Toyota targets children as a means to influence their parents.
• Scion is creating its own broadband channel as a way to move from push to pull marketing where the customer decides what materials to view and when.
• Toyota created its own social network called Scion Speak where Scion’s enthusiasts can socialize, communicate and play.
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Copyright 2010 John Wiley & Sons, Inc.
Toyota Scion’s Innovative Advertising Strategies (continued)
• The Results: Scion has 80% brand recognition according to Marketing Vox News (2007).
- Amazing jump to #1 ranking due to interactive and community-oriented nature of the Scion online experiences.
- Scion website is highly personalized with sophisticated customization tools with offline information integration.
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Copyright 2010 John Wiley & Sons, Inc. 1-12
1.1 Doing Business in the Digital Economy
Copyright 2010 John Wiley & Sons, Inc.
What is the Digital Economy?
• Information & entertainment products that are digitized.
• Symbols, tokens & concepts.• Processes & services.
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Click on the Wikipedia image for an expanded description & definition of the Digital Economy.
Copyright 2010 John Wiley & Sons, Inc. 1-14
Copyright 2010 John Wiley & Sons, Inc.
Electronic Commerce
• Siemens AG established existing old company into transformed digital enterprise and is excellent example of electronic commerce.
Click image for homepage & more about changes at Siemens AG.
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Copyright 2010 John Wiley & Sons, Inc.
Networked Computing – Digital Organization Infrastructure
• Enables computers to connect to other computers & other electronic devices via telecommunication networks.
• Connections give users access to remote information.
• Users may be connected via wireless networks to public network-Internet (value-added networks (VAN)); Intranets (within organizations only); & connections to business partners (Extranets).
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Copyright 2010 John Wiley & Sons, Inc.
Figure 1.1 Digital networked enterprise.
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Copyright 2010 John Wiley & Sons, Inc.
Buying or Renting a Movie Online
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Screenshot 1U.1 Netflix
Copyright 2010 John Wiley & Sons, Inc.
New Economy
Netflix
Blockbuster
Movies.yahoo.com
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Which is better?
Copyright 2010 John Wiley & Sons, Inc.
Figure 1.2
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How customization is done online: Nike shoes.
Copyright 2010 John Wiley & Sons, Inc. 1-21
1.2 Information Systems and Information Technology
Copyright 2010 John Wiley & Sons, Inc.
Figure 1.3: A schematic view of an information system.1-22
Copyright 2010 John Wiley & Sons, Inc.
Figure 1.4: The basic components of information systems.1-23
Copyright 2010 John Wiley & Sons, Inc. 1-24
Copyright 2010 John Wiley & Sons, Inc. 1-25
1.3 Business Performance Management, Business Pressures, Organizational Responses, and IT Support
Copyright 2010 John Wiley & Sons, Inc.
Figure 1.5: Business performance management cycle and IT.1-26
Copyright 2010 John Wiley & Sons, Inc.
Figure 1.6: Business pressures, organizational performance and responses, and IT support.
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Copyright 2010 John Wiley & Sons, Inc.
Green IT
Pushing Green Technology
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Copyright 2010 John Wiley & Sons, Inc.
Companies Going Green – It’s Good Business
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http://www.cbsnews.com/stories/2008/11/06/60minutes/main4579229.shtml
60 Minutes (cbs news magazine) correspondent Scott Pelley and crew got roughed up at a Chinese dump while working on a story on toxic electronic waste. Click the following link & read/watch the story, Following The Trail Of Toxic E-Waste :
An E-Waste Story That'll Make You Want To Quit Tech
Copyright 2010 John Wiley & Sons, Inc. 1-30
Copyright 2010 John Wiley & Sons, Inc.
Ethics & IT• Governance Gauge: Hail To The Compliance Chiefs
Intelligent Enterprise , March 01, 2005 • SOX SUIT: Holding Feet To The Fire
Intelligent Enterprise , January 01, 2005 • Lawsuit Spotlights Loyalty As Well As Ethics
Intelligent Enterprise , March 27, 2007 • A Brief History Of Viral Time
Intelligent Enterprise , July 05, 2006 • Web-based Service Aims to Bridge Gap Between Knowledge Sharing and Copyright Compliance
Intelligent Enterprise , June 08, 2006 • Dating Service Beats Poor Metrics Trend With Privacy Tools
Intelligent Enterprise , February 13, 2006 • The Shift to Holistic Compliance
Intelligent Enterprise , June 28, 2005 • Managing Incentives and Rewards for Financial Compliance
Intelligent Enterprise , May 23, 2005 • Review: An Affordable Escape From Spreadsheet Hell
Intelligent Enterprise , May 01, 2005
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Copyright 2010 John Wiley & Sons, Inc. 1-32
1.4 Strategy for Competitive Advantage and IT Support
Copyright 2010 John Wiley & Sons, Inc.
Figure 1.7 Porter’s competitive forces model. 1-33
Copyright 2010 John Wiley & Sons, Inc.
Porter’s Five Competitive Forcesthat Shape Strategy
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Copyright 2010 John Wiley & Sons, Inc. 1-35
Copyright 2010 John Wiley & Sons, Inc.
Figure 1.8: The firm’s value chain
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The arrows illustrate the flow of goods & services (the internal part of the supply chain). (Source: Drawn by E. Turban)
Copyright 2010 John Wiley & Sons, Inc.
Some Successful First Movers
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Copyright 2010 John Wiley & Sons, Inc.
Information Systems Failures
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Nike_Rebounds_How_and_Why_Nike_Recovered_from_Its_Supply_Chain_Disaster
Project Management: AT&T Wireless Self-Destructs
Copyright 2010 John Wiley & Sons, Inc. 1-39
1.5 Social Computing and Networking and Virtual Worlds
Copyright 2010 John Wiley & Sons, Inc.
Social Computing
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What is Web 2.0?
Copyright 2010 John Wiley & Sons, Inc.
Social Networks
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Click to PCWorld Business Center article for more…. Social Networks Go to Work
Copyright 2010 John Wiley & Sons, Inc.
Figure 1.9 Plan of the book.
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Copyright 2010 John Wiley & Sons, Inc.
1.8. Managerial Issues
• Recognizing opportunities for using IT and Web-based systems for strategic advantage.
• Who will build, operate, and maintain information systems?
• How much IT?• What social networking activities should be pursued?• How important is IT?• Globalization.• Ethics and social issues.• Transforming organization to digital economy.
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Copyright 2010 John Wiley & Sons, Inc.
Copyright 2010 John Wiley & Sons, Inc.
All rights reserved. Reproduction or translation of this work beyond that permitted in section 117 of the 1976 United States Copyright Act without express permission of the copyright owner is unlawful. Request for further information should be addressed to the Permission Department, John Wiley & Sons, Inc. The purchaser may make back-up copies for his/her own use only and not for distribution or resale. The Publisher assumes no responsibility for errors, omissions, or damages caused by the use of these programs or from the use of the Information herein.
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