ITM 102 Lecture Notes - Lecture 1: Product Differentiation, Competitive Advantage, Chief Privacy Officer
130 views2 pages
For unlimited access to Class Notes, a Class+ subscription is required.
ITM102 - Business Driven Information Systems - Lecture 1: Information and Business
Competing in the Information Age
● Businesses survive through innovation (i.e. Amazon, Netflix and most banks are
examples of continuing or existing innovation that draws customers).
● These organizations operate through functional silos, or areas each of which have their
own specialization. Important to note that functional areas are interdependent.
○ Some of these areas include: sales and marketing, operations and logistics,
accounting and finance, human resources.
○ Although each department is unique, they all require each other to provide a
synergistic operating environment.
● Information systems - computer-based tool that people used to support information
processing needs in an organization.
● Management information systems - the function that oversees information systems
hardware and implements the goals of an organization.
● Data - raw facts use to describe an event.
○ Information - data converted into meaningful text.
■ Knowledge - information that can be enacted upon (i.e. actionable
Information system cultures
● Information-functional - employees use information as a means of exercising influence.
● Information-sharing - employees across departments trust and exchange information.
● Information-inquiring - employees across departments search for information to better
understand and align themselves to the organization.
● Information-discovery - employees across departments seek to open new informational
● Chief information officer - oversees the use of IT.
○ Chief knowledge officer - responsible for collecting and maintaining organization
■ Chief privacy officer - ensures the legal and ethical use of information.
■ Chief security officer - ensures information system safety and protection.
■ Chief technology officer - ensures speed and accuracy of information.
● Competitive advantage - product or service that customers prefer over others.
● First-mover advantage - occurs when an organization is the first to create or enter a
● Environmental scanning - analyzing trends in an environment outside an organization.
● Buyer power - when buyers affect product price.
○ Switching costs - manipulating costs to make customers loyal.
○ Loyalty program - rewarding customers based on continuous service.
● Supplier power - high when buyers have few choices; low when there are many.
○ Supply chain - consists of all parties involved in the creation of a product.