Chapter 1

Turban and Volonino

IT Supports Organizational Performance in Turbulent Business Environments Information Technology for Management Improving Performance in the Digital Economy 7th edition John Wiley & Sons, Inc.
Slides contributed by Dr. Sandra Reid Chair, Graduate School of Business & Professor, Technology Dallas Baptist University

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Chapter Outline
1.1 Doing Business in the Digital Economy 1.2 Information Systems and Information Technology (IT) 1.3 Business Performance Management, Business Pressures, Organization Responses, and IT Support 1.4 Strategy for Competitive Advantage and IT Support 1.5 Social Computing and Networking

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Chapter Outline contd

1.6 Why Should You Learn About Information Technology? 1.7 Plan of the Book 1.8 Managerial Issues

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Learning Objectives
1. 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 ITdependent.
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Learning Objectives contd

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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Figure IT 7eU The Business Performance Management Cycle and IT Model

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Toyota Scions 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.
Gen Y target market Wide target market

GM

Vs.
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Toyota
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Toyota Scions Innovative Advertising Strategies (continued)

Toyota known for its manufacturing innovations. Aggressive web-presence strategy. Generation Y population, those born 19801994, 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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Toyota Scions 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 PersonalityDriven Ads to reach future customers at a very young age according to
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Toyota Scions 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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Toyota Scions 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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Toyota Scions Innovative Advertising Strategies (continued)

For the 2008 xB SUV, Scion created a special Web site, want2bsquare.com
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Toyota Scions 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 Scions enthusiasts can socialize, communicate and play.
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Toyota Scions 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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1.1 Doing Business in the Digital Economy

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What is the Digital Economy?

Information & entertainment products that are digitized. Symbols, tokens & concepts. Processes & services.
Click on the Wikipedia image for an expanded description & definition of the Digital Economy.

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Table 1.1

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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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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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Figure 1.1 Digital networked enterprise.

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Buying or Renting a Movie Online

Screenshot 1U.1 Netflix

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New Economy
Netflix

Blockbuster
Movies.yahoo.com
Which is better?

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Figure 1.2

How customization is done online: Nike shoes.

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1.2 Information Systems and Information Technology

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Figure 1.3

A schematic view of an information system.

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Figure 1.4

The basic components of information systems.

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Table 1.2

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1.3 Business Performance Management, Business Pressures, Organizational Responses, and IT Support

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Figure 1.5

Business performance management cycle and IT.

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Figure 1.6

Business pressures, organizational performance and responses, and IT support.

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Green IT
Pushing Green Technology

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Companies Going Green Its Good Business

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 : http://www.cbsnews.com/stories/2008/11/06/60minutes/main4579229.shtml

An E-Waste Story That'll Make You Want To Quit Tech

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Table 1.3

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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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1.4 Strategy for Competitive Advantage and IT Support

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Figure 1.7 Porters competitive forces model.

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Porters Five Competitive Forces that Shape Strategy

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Table 1.4

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Figure 1.8

The firms value chain. The arrows illustrate the flow of goods & services (the internal part of the supply chain). (Source: Drawn by E. Turban)
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IT Provides Strategic Advantage

The Value of Business Intelligence

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Example of Real-time IT Support

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Some Successful First Movers

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First Mover Advantage Losses

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Information Systems Failures

Nike_Rebounds_How_and_Why_Nike_Recove red_from_Its_Supply_Chain_Disaster

Project Management: AT&T Wireless SelfDestructs

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1.5 Social Computing and Networking and Virtual Worlds

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Social Computing

What is Web 2.0?

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Social Networks

Click to PCWorld Business Center article for more. Social Networks Go to Work

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Figure 1.9 Plan of the book.

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1.8 Managerial Issues

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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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Minicase : Dartmouth College Goes Wireless

See Dartmouth College Goes Wireless article in InformationWeek

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Copyright 2010 John Wiley & Sons, Inc.

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