UBO - Lecture 11 - The IT Environment Within Business

Lecture 11 The IT Environment Within
Business
Understanding Business Organisations
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UnderstandingBusiness
NCC Education Limited V1.0
Understanding Business
Organisations
Lecture 11:
The IT Environment Within Business
The IT Environment Within Business Lecture 11 - 11.2
Scope and Coverage
This topic will cover:
The difference between data and information
How a business uses technology
The use of technologyfor operational purposes
The use of technology for operational purposes
How technology has influenced product research
and design
Key factors in implementing IT systems
The impact of the Internet upon organisations
Learning Outcomes
By the end of this topic, students will be able to:
Understand why the quality of information is
important within an organisation
Explain howtechnologycan enhance the way in
Explain how technology can enhance the way in
which an organisation conducts its business
Describe the role of technology in operational
activities
Explain how the Internet enables radical changes
in organisations
Business
Communications and information management
Operations (e.g. in manufacturing)
P d t d i d h
Why Does an Organisation Use
Technology?
Product design and research
Trends in Technology
Increasing speed of processing and transmission
Increased accuracy and more user-friendly forms
of information
Miniaturisation (i.e. the components used in IT
( p
becoming smaller)
Facilitates control
Influences attitudes and actions
Assists in decision-making
Educates and entertains
Why is Information Important?
Educates and entertains
Business
Producing Information from Data
Data
Raw,
Information
Useful and
Data transformation
Through people,
unanalysed,
facts, figures
and events
relevant
knowledge
Through people,
procedures, hardware,
software, paper etc
Criteria Description
Reliability If only a small part of a document is inaccurate, this will
impact upon the entire document
Timeliness Information is only useful if it is available in time
Quantity There can be a problem in providing too much
information resulting in information overload
Quality of Information
information, resulting in information overload
Relevance Users only want information that is relevant to their
specific needs
Administration:
Office uses such as word processing and spreadsheets
Accountancy uses such as report generation
Business communications:
Using IT in Business
E-mail
Satellite systems
Information gathering:
Databases
Electronic point-of-sale (EPOS) systems
Business
The Components of IT
Microprocessor
Central
Processing Unit
(CPU)
Output
devices
C i ti
Input
devices
Primary storage
Communication
devices
devices
Secondary storage devices
Future impact of IT (x)
Low High
McFarlan & McKenneys IT Grid
Low
Current Impact
of IT (y)
High
Support Turnaround
Factory Strategic
Systems used to collect a range of data
Data is processed
Databases are used to store the data in a variety of
a s
Communications and Information
Management
ways
Decision support systems are used to manipulate
the data
Telecommunication networks transmit the data
within the organisation and to the outside world
Business
Technology is used extensively in operations, e.g.:
Process routine transactions (in every form of business)
J ust-in-time (J IT) manufacturing
MRP (manufacturing resource planning)
EPOS ( l i i f l )
Operations Technology
EPOS (electronic point of sale)
Factory automation (computer numerically controlled
technology)
Chemical technology
Biochemical and bio-molecular technology
Gene and genetic technology
Technology in Research and
Design
Materials technology
Process technology
Aerodynamic technology
Acoustic and audio technologies
Implementing IT systems is not just about
technology
There are social, technical, organisational,
economical and political dimensions
Implementing IT Systems
Important to understand these different aspects
Generally some form of phased development is the
most successful approach
Business
Model Strategies in IT Adoption
and Introduction
1.
Initiation of the
idea to adopt new
technology
2.
Progression/
feasibility
3.
Investment
decision
4.
Planning and system
design
6.
Operationalisation
5.
Installation/
introduction
7.
Post-operationalisation
evaluation
User needs were not fully understood
Greater emphasis was placed on emerging
technologies rather than user requirements
Business changes during development period were
Reasons for Failed Systems
g g p p
not reflected in the system that was delivered
Time and money needed to develop and implement
the system was underestimated
Politics and conflicts emerged which protected the
old system
Internet - can be used for the provision of
information via corporate websites, interaction with
visitors to websites, to facilitate e-commerce and to
transform an organisation into an e-business
The Role of the Internet
Intranet private computer network using Internet
standards that operates within an organisation
Extranet closed collaborative network used to
link an organisation with specific customers,
suppliers or trading partners
Business
Stages in using the Internet
Business
value
Transaction
Integration
Transformation
Time
Information
Interaction
Technology now plays a key role in all organisational
activities
Information is important in facilitating control and assisting
decision-making
Information should be timely, accurate and relevant
Summary
Technology is used extensively in many areas of operations
and research and design
There are social, technical, organisational, economical and
political dimensions to implementing IT successfully
The Internet has transformed the ways in which many
organisations operate
References
Campbell and Craig (2005), Organisations and the
Business Environment, 2nd edition. Butterworth-
Heinemann, Chapter 12, pp 247-260
Boddy, D. (2005), Management: An Introduction,
3rd edition, Prentice Hall, Chapter 20
Boddy, D. (2007), Management: An Introduction,
4th edition, Prentice Hall, Chapter 12
Business
Business
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