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| Ways IT systems Transform business: |
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Definition
| increase in wireless technology, shift in advertising, new securities and accounting laws |
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| Personalizing ads based on what people want |
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| Capital Investment in Technology |
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| $500 billion, over 1/2 of capital investment |
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| Ex-Amazon. Has no physical warehouses, business model completely Dependant on internet. |
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| maintaining a worldwide presence through technology. |
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Term
| 6 strategic business objectives that firms invest in IT: |
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Definition
1) Operational excellence
2) New products, services, and business models
3) Customer and supplier intimacy
4) Improved decision making
5) Competitive advantage
6) Survival |
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Definition
| Improvement of efficiency to attain higher profitability |
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| New products, services, and business models: |
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Definition
Information systems and technology a major enabling tool for new products, services, business models
Examples: Apple’s iPod, iTunes, and iPhone, Netflix’s Internet-based DVD rentals |
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| Customer and supplier intimacy: |
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Definition
High-end hotels that use computers to track customer preferences and use to monitor and customize environment
Also:Intimacy with suppliers allows them to provide vital inputs, which lowers costs
Example: J.C.Penney’s information system which links sales records to contract manufacturer |
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