Lecture 1 Information Technology and Business Objectives n

Lecture 1 Information Technology and Business

Objectives n Why information systems are important for business n Information Strategy vs. Business Strategy n Major role of information systems in business

If you own a company, what do you want your company to be, what do you want from your company, what is the ultimate goal you want from your company? How can you achieve what you want?

Business Strategy and Objective Strategy Objective Ultimate goal Strategies are things that you focus or decide to do in order to fulfill your objectives – High quality product (objective): invest 5% of sales on R&D for five years to design and produce the best quality product (strategy) – Growth, Market Expansion (objective): increase distributors by 5% in two years (strategy)

IT and Business Strategy Once you choose your Business Strategy, Information Strategy or how IT will be used in your company must support the selected Business Strategy; for examples, – DB that stores and provides access to results of previous research – Order processing systems allow dealers to easily order or return products

Information Systems n Major role of information systems applications in business is to provide effective support of company’s strategies for gaining competitive advantage – Strategic role of information systems involves using information technology to develop products, services and capabilities that give a company major advantages over the competitive forces it faces in the global marketplace

Why Information Systems are important for business n Information systems and technologies have become a vital component of successful businesses and organizations – They are essential field of study in business administration and management