Chapter 1 + case study

1. How can information technology support a company's business processes and decision making and give it a competitive advantage? GIve examples to illustrate your answer.

The term information technology refers to the various hardware, software, networking, and data management parts that are a neccessity for the system to function (pg. 8). Businesses regularly utilize computer-based information systems in order to record customer purchases, keep track of inventory, pay employees, buy new merchandise, and evaluate sales trends. Without the support of information technology, businesses would ultimately fall apart. For example if a business did not choose to use computer-based information systems, they wouldn't be able to evaluate what items were selling better than others and ultimately lose valuable information for future success. Information technology can also aid in decision making for a business. Decisions are made based on analysis provided by computer-based information systems. For example a store manager may make the decision whether to discontinue an item for sale or keep it on the floor due to analysis of sales trends provided by computer-based systems. Lastly information technology helps business gain a competitive advantage. A competitive advantage is gained through computer-based information systems by applying innovative application of information technologies (pg. 9). For example a store manager installing touch screen kiosks throughout the organization could potentially attract the competitors customers.

2. How does the use of the Internet, intranets, and extranets by companies today support their business processes and activities?

Today businesses depend on the internet, intranets, and extranets to implement and manage innovative e-business applications (fig. 1.5, pg. 13). Companies are using the internet to web-enable