IMS 554INFORMATION MARKETING for

INFORMATION SYSTEMS DEPARTMENT

CHAPTER 1

INTRODUCTION to INTRODUCTION to BUSINESSBUSINESS

Pn Hasnah HashimLecturer

Faculty of Information ManagementUniversiti Teknologi MARAPuncak Perdana Campus

hasnahhashim@salam.uitm.edu.my

1. Definition of Business2. Information Technology in Business3. Business Organization4. Information System Department (ISD)5. Information Users6. Definition of Marketing

INTRODUCTION TO BUSINESS

1.0 Definitions of Business

INTRODUCTION TO BUSINESS

economic system in which goods and services are exchanged for one another or money, on the basis of their perceived worth. Every business requires some form of investment and a sufficient number of customers to whom its output can be sold at profit on a consistent basis

from BusinessDictionary.com

Definitions of Business cont..

INTRODUCTION TO BUSINESS

A business (also called a company, enterprise or firm) is a legally recognized organization designed to provide goods and/or services to consumers.

from Wikipedia.org

Some other definitions of Business cont..

INTRODUCTION TO BUSINESS

an organization or enterprising entity engaged in commercial, industrial or professional activities.

commercial enterprise, profession, or trade operated for the purpose of earning a profit by providing a product or service; also called business enterprise.

from Answers.com

Classifications of business

There are many types of businesses, and because of this, businesses are classified in many ways. One of the most common focuses on the primary profit-generating activities of a business:

i. Agricultureii. Financialiii. Manufactureriv. Real Estatev. Retailers/ Distributorsvi. Service Businessesvii. Transportationviii. Utilities

INTRODUCTION TO BUSINESS

2.0 Information Technology in Business

IT is used in any business since 1950’s from electronic data processing to now, Enterprise and Global Internet working

system. There are tremendous amount of information which are stored in computer files. It has become another major management function to manage the information and technology resources

INTRODUCTION TO BUSINESS

Information Technology in Business cont..

• Creates new relationships between customers and suppliers who electronically link themselves together.

• Provides mechanisms through groupware for coordinating work and creating a knowledge base of organizational intelligence.

• Makes it possible for the organization to capture the knowledge of its employees and provide access to it throughout the organization.• Provides the manager with electronic alternatives to face-to-

face communications and supervision.• Provides developing countries with opportunities to compete

with the industrialized nations.

INTRODUCTION TO BUSINESS

3.0 Business Organization

is a body with interrelated subsystems working together towards common business goals or objectives by complementing each of

the subsystems interdependently. The subsystems are super ordinate goals, technical, structural, psychosocial, and managerial.

INTRODUCTION TO BUSINESS

Example of business organization in transportation industry:

Goals and Objectivesis a projected state of affairs that a person or a system

plans or intends to achieve - a personal or organizational desired end-point in some sort of assumed development.

Organization Structurethe form of an organization that is evident in the way divisions, departments, functions, and people link together and interact.

INTRODUCTION TO BUSINESS

Corporate StrategyLaunching “Customer-Driven Strategy” campaign. It

involves all levels of employees company wide. It is to shift the employees’ focus from task-oriented to customer-oriented, internal and external

Human ResourceThe recruitment and hiring of employees will be based on their qualification and experience in the field of tasks to be performed. For example drivers, administrators,

technicians, accountants, executives, officers, etc.

INTRODUCTION TO BUSINESS

TechnologyUsing the technology of computer-based information systems. Microcomputer, midrange and mainframe

computer systems are the variety of technology that can be employed to support the business operations, decision etc. Global internetworked information systems require the above technology to operate the business.

INTRODUCTION TO BUSINESS

4.0 Information Systems Department (ISD)

is established to look into the management issues relating to information technology as the rate of growth in IT usage and spending increases.

INTRODUCTION TO BUSINESS

5.0 Information Users

are the internal and external information consumers that represent the end of the line for the information product and services.

Internal users End Users from all the departments and division in the organization

External usersThe business partner, supplier, manufacturer, the customer.

INTRODUCTION TO BUSINESS

6.0 Definitions of Marketing

management process through which goods and services move from concept to customer. As a philosophy, it is based on thinking about the business in terms of customer needs and their satisfaction.

from businessdictionary.com

INTRODUCTION TO BUSINESS

some other definitions of Marketing cont…

the management process responsible for identifying , anticipating and satisfying customer requirements profitably

The Chartered Institute of Marketing

Marketing is not about providing products or services it is essentially about providing changing benefits to the

changing needs and demands of the customer P.Tailor of

www.learnmarketing.net

INTRODUCTION TO BUSINESS

The 3C's model of Kenichi Ohmae• The 3C’s model points out that a strategist should focus on three key

factors for success. In the construction of a business strategy, three main players must be taken into account:

A. The CorporationB. The CustomerC. The Competitors

• Only by integrating these three C’s (Corporation, Customer, Competitors) in a strategic triangle, a sustained competitive advantage can exist. Ohmae refers to these key factors as the three C’s or strategic triangle.

INTRODUCTION TO BUSINESS

INTRODUCTION TO BUSINESS

3C's model: Customer-based strategies are the basis of all strategy. ..."There is no doubt that a corporation's foremost concern ought to be the

interest of its customers rather than that of its stockholders and other parties. In the long run, the corporation that is genuinely interested in its

customers is the one that will be interesting to investors".

A. The Corporation

The Corporation needs strategies aiming to maximize thecorporation’s strengths relative to the competition in thefunctional areas that are critical to achieve success in theindustry.

B. The Competitor

Competitor based strategies can be constructed by looking at possible sources of differentiation in

functions such as: purchasing, design, engineering, sales and servicing.

INTRODUCTION TO BUSINESS

C. The Customer

Clients are the base of any strategy according to Ohmae. Therefore, the primary goal supposed to be the interest of the customer and not those of the shareholders for example. In the long run, a company that is genuinely interested in its customers will be interesting for its investors and take care of their interests automatically.

Segmentation is helping to understand the customer.

INTRODUCTION TO BUSINESS

Thank You