MGT300 Chapter 1 : Business Driven Technology

Learning Outcomes
1.1 Compare management information systems (MIS) and information  technology (IT)
1.2 Describe the relationships among people, information technology, and  information
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

Common departments in an organization

• Accounting provides quantitative information about the finances of the business including recording, measuring, and describing financial information.
• Finance deals with the strategic financial issues associated with increasing the value of the business, while observing applicable laws and social responsibilities.
• Human resources (HR) includes the policies, plans, and procedures for the effective management of employees (human resources).
• Sales is the function of selling a good or service and focuses on increasing customer sales, which increases company revenues.
• Marketing is the process associated with promoting the sale of goods of services. The marketing department supports the sales department by creating promotion that help sell the company's products.
• Operations management (also called production management) is the management of systems of processes that convert or transform resources (including human resources) into goods and services.  
• Management information systems (MIS)  is the academic discipline covering the application of people, technologies, and procedures collectively called information systems--to solve business problems.                                                                                                                                                       

 Information Technology's Impact on Business Operations

Organization typically operate by functional areas or functional silos.Functional areas are interdependent.

Information Technology

A field concerned with the use of technology in managing and processing information.Information technology is an important enabler of business success and innovation.

Data, Information, and Business Intelligence

• Data 

Are raw facts that describe the characteristics of an event

• Information 

Is data converted into a meaningful and useful context.

• Business intelligence 

Refers to applications and technologies that are used to gather, provide access to , and analyze data and information to support decision--making efforts.

IT Resources

People use > Information technology to work with > Information

IT Cultures

An organization culture plays a large role in determining how successfully it will share information. 

Culture will influence the way people use information.

An organization's IT culture can directly affect its ability to compete in global market.

Organizational Information Culture

• Information-Functional Culture : 

Employees use information as a means of exercising influence or power over others.

• Information-Sharing Culture : 

Employees across departments trust each other to use information (especially about problems and failures) to improve performance.

• 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 crises and radical changes and seek ways to create competitive advantages.