Chapter 1 IT Supports Organizational Performancein Turbulent Business EnvironmentsInformation Technology for ManagementImproving Performance in the Digital Economy7th

1. Chapter 1
IT Supports Organizational Performance
in Turbulent Business Environments
Turban and Volonino
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
Copyright 2010 John Wiley & Sons, Inc. 1-1

2. 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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3. Chapter Outline cont’d
• 1.6 Why Should You Learn About Information
Technology?
• 1.7 Plan of the Book
• 1.8 Managerial Issues
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4. 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 IT-
dependent.
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5. Learning Objectives cont’d
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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6. Figure IT 7eU The Business Performance
Management Cycle and IT Model
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7. Toyota Scion’s 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. Toyota
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8. Toyota Scion’s Innovative Advertising Strategies
(continued)
• Toyota known for its manufacturing
innovations.
• Aggressive web-presence strategy.
• Generation Y population, those born 1980-
1994, 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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9. Toyota Scion’s 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 Personality-
Driven Ads to reach future customers at a very
young age according to
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10. Toyota Scion’s 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
Copyright 2010 John Wiley & Sons, Inc. 1-10

11. Toyota Scion’s 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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12. Toyota Scion’s Innovative Advertising Strategies
(continued)
For the 2008 xB SUV, Scion created a special Web site,
want2bsquare.com
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13. Toyota Scion’s 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 Scion’s enthusiasts can
socialize, communicate and play.
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14. Toyota Scion’s 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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15. 1.1 Doing Business in the Digital Economy
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16. 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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17. Table 1.1
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18. 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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19. 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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20. Figure 1.1 Digital networked enterprise.
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21. Buying or Renting a Movie Online
Screenshot 1U.1 Netflix
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22. New Economy
Netflix
Blockbuster
Movies.yahoo.com
Which is better?
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23. Figure 1.2
How customization is done online: Nike shoes.
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24. 1.2 Information Systems and
Information Technology
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25. Figure 1.3
A schematic view of an information system.
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26. Figure 1.4
The basic components of information systems.
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27. Table 1.2
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28. 1.3 Business Performance Management,
Business Pressures, Organizational Responses,
and IT Support
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29. Figure 1.5
Business performance management cycle and IT.
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30. Figure 1.6
Business pressures, organizational performance and responses, and IT support.
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31. Green IT
Pushing Green Technology
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32. Companies Going Green – It’s 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
Copyright 2010 John Wiley & Sons, Inc. 1-32

33. Table 1.3
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34. 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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35. 1.4 Strategy for Competitive Advantage
and IT Support
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36. Figure 1.7 Porter’s competitive forces model.
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37. Porter’s Five Competitive Forces
that Shape Strategy
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38. Table 1.4
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39. Figure 1.8
The firm’s 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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40. IT Provides Strategic Advantage
• The Value of Business Intelligence
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41. Example of Real-time IT Support
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42. Some Successful First Movers
1-42
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43. First Mover Advantage Losses
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44. Information Systems Failures
Nike_Rebounds_How_and_Why_Nike_Recove
red_from_Its_Supply_Chain_Disaster
Project Management: AT&T Wireless Self-
Destructs
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45. 1.5 Social Computing and Networking
and Virtual Worlds
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46. Social Computing
What is Web 2.0?
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47. Social Networks
Click to PCWorld Business Center article for
more…. Social Networks Go to Work
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48. Figure 1.9 Plan of the book.
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49. 1.8 Managerial Issues
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50. 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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51. Minicase :
Dartmouth College Goes Wireless
See Dartmouth College Goes
Wireless article in
InformationWeek
Copyright 2010 John Wiley & Sons, Inc. 1-51

52. Copyright 2010 John Wiley & Sons, Inc.
All rights reserved. Reproduction or translation of
this work beyond that permitted in section 117 of
the 1976 United States Copyright Act without
express permission of the copyright owner is
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damages caused by the use of these programs or
from the use of the Information herein.
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