Role of Ict in a Business

ROLE OF INFORMATION
DATA INFORMATION KNOWLEDGE

INTELLIGENCE •Forms of Information •Human Information Sources •NOT ALL SEEN AS A COST, BUT USE AS A ASSET??

(Data -- Information – Intelligence Knowledge (Implicit/tacit) INNOVATION

WHY ARE WE IN BUSINESS ???

TO MAKE MONEY!!!

Systems Approach
ENVIRONMENT

INPUT

PROCESS (Transformation Structuring)

OUTPUT

Competitive

PROVIDING VALUE TO A CUSTOMER
NEED

Organization Transformation process

CUSTOMER

For Profit Organization

Maximize shareholder value make money (E = A-L)

WINDOW OF OPPORTUNITY
ENVIRONMENT FORCES
ORGANISATION
WINDOW OF OPPORTUNITY

PESTE INDUSTRY
ORGANISATION

INPUT FACTORS

(PROCESS/VALUE CHAIN)

Porter Five Competitive Forces
Threat of new Entrants

Supplier Power

Industry Competition

Customer Power

Threat of Substitute Products

Entrepreneurial Monopoly

Competition
WINDOW OF OPPORTUNITY

HIGH

DEMAND

$$

TIME
LOW

SUPPLY

HIGH

SURVIVAL = GROWTH & PROFITABILITY

ORGANISATION $$

WINDOW OF OPPORTUNITY

WINDOW OF OPPORTUNITY

INDUSTRY

PROFITABILITY

Entrepreneurial Monopoly

Competition

Profitability
Output (Price) – Cost (Input + transformation)

HIGH

Productivity
(Output/Input) x 100%

DEMAND

$$ TIME

LOW

SUPPLY

HIGH

GROWTH & PROFITABILITY

OUTPUT - Strategy

COMPETITIVE

(MARKETS)

INNOVATION (Cont Improvement) COST

FOCUS
DIFFERENTIATION

COMPETING


TRADITIONAL WAYS:
– COST: Low cost producer of good or service – DIFFERENTIATION: Enhancing perception of product or service – Focus: Sales information, just-in-time materials, better cash management

*

GOAL: PROVIDING VALUE TO A STAKEHOLDER
NEED

OWNER/SHAREHOLDER (price of company stock)
EMPLOYEES SUPPLIER

Organization Transformation process

WINDOW OF OPPORTUNITY

CUSTOMER

Value chain

VISION/MISSION What sets the organization apart from other organisations and identifies