IMS 554 INFORMATION MARKETING for INFORMATION SYSTEMS DEPARTMENT CHAPTER 4INFORMATIONMARKETING Pn Hasnah Hashim Lecturer Faculty of Information Management.

IMS 554INFORMATION MARKETING for

INFORMATION SYSTEMS DEPARTMENTCHAPTER 4

INFORMATION INFORMATION MARKETINGMARKETING

Pn Hasnah HashimLecturer

Faculty of Information ManagementUniversiti Teknologi MARAPuncak Perdana Campus

[email protected]

INFORMATION MARKETING

1. Main Functions of Information Systems Department (ISD)

2. Managing IT in an Organisation 3. Marketing Information Systems 4. Marketing Research Process 5. Strategic Information Systems Planning6. Information Marketing7. Information Consumers8. Market Segmentation, Targeting, and Positioning for

Competitive Advantage.9. Information Marketing Mix10. Implementation and Evaluation

2

1.0 Main Functions of Information Systems Department (ISD)

Systems Development Systems Analysis and Design Application Programming Development Support: Development Centre

Operations Computer Operations: Data Centres Data Entry Production Control and Support

3


Technical Services

User Services: Information Centres Data Administration Network Management Technology Management Capacity Management

4


2.0 Managing IT in an Organization 5

Man

age

IS D

epar

tmen

t

Plan

IS D

epar

tmen

t

Perfo

rm IT

Cus

tom

er R

elat

ions

Market IT to Business Units

Align Business and IT

Manage Enterprise Architecture

Develop and DeployProducts and Services

Deliver and Support Products and Services


6

3.0 Marketing Information System Concept

A marketing information system is a continuing and interacting structure of people, equipment, and procedures to gather, sort, analyse, evaluate, and distribute pertinent, timely, and accurate information for use by marketing decision makers to improve their marketing planning, implementation, and control.


7

Internal reportssystem

Marketing research system

Marketing intelligence

system

Analyticalmarketing

system

Market segmentTarget markets

CompetitorsMacroenvironment

forces

AnalysisPlanning

DevelopmentImplementation

Evaluation

Marketing Environment

Information SystemsDepartment

Marketing Information System

Marketing decisions and communications

Marketinginformation

Marketinginformation


Marketing Information System Concept cont…

Internal reports system include reports on orders, sales, receivables, payables etc.

Marketing intelligence system supplies happenings data. It is defined as the set of procedures and sources used by executive to obtain their everyday information about pertinent developments in the marketing environment.

8


Marketing Information System Concept cont..

Marketing research system is the systematic design, collection, analysis, and reporting of data and findings relevant to a specific marketing situation facing the company.

Analytical marketing system is the decision support system.

9


10

ISD requires marketing information database to make decision:

List of information systems currently running, under development, and for future plan.

Inventory of information systems resources like hardware, software, people, data, and network.

Information on handling enhancement requests and bug fix requests.


4.0 Marketing Research Process

The process of planning, collecting, and analysing data relevant to a marketing decision.

Marketing research has three roles: Descriptive includes gathering and presenting factual statements Diagnostic includes explaining data Predictive is to address “what if” questions

Strategic IS Planning can be used as a marketing research process for ISD.

Business Process Reengineering (BPR) for the whole company can be considered as marketing research process. 11


5.0 Strategic Information System Planning Objectives

Four main objectives: Business Alignment: aligning investment in IT with a

company’s business vision and strategic business goals.

Competitive Advantage: Exploiting IT to create innovative and strategic business IS for competitive advantage.

12


Resource Management: Developing plans for the efficient and effective management of a company’s IS resources, including IS personnel, hardware, software, data, and network resources.

Technology Architecture: Developing technology policies and designing an IT architecture for the organization

13


Strategic Information System Planning cont…

Strategic IS planning is the process of deciding what will be done, who will do it, when they will do it, how it will be done, and what are the desired results.

Understanding and translating the business plan is a prerequisite to the strategic IS planning.

14


The objective of IS planning is to align the business effort and IT effort strategically.

Selecting systems to invest in: the decision to build an information system is an investment decision, as is the decision about which capabilities to include in the system.

15


Strategic Information System Planning

16

Determine Business

Drivers

Develop Tactical IS Plans

MakeComparativeAssessments

CreateBusiness

Vision

Developand AlignStrategies

Design IT

Architecture

Strategic planning uses a business vision and drivers to create an IT architecture and tactical IS plans for the business use of information

technology.


The Information System Plan as Part of the Business Plan

17

•Competition•Resources•Ambitions

•History•Ability to change

GoalsObjectivesPriorities

BUSINESS PLAN•Sales and marketing plan•Production plan•Finance plan•Human resources plan•Information system plan


Strategic Alignment of Business and IT18

IT Infrastructureand processes

Business needs, opportunities, and strategy

Business organisation

and processes

IT needs, opportunities, and strategy

Business domain IT domain

The dark arrows represent business requirements as the starting point for strategic alignment betweenbusiness and IT. The light arrows illustrate a completely opposite set of linkages that start with strengths

and shortcomings in the IT domain.

6.0 Information Marketing

A managerial process whereby individuals and groups achieving business objectives through creating and exchanging information and value with others.

Information is the products and services, and value is the benefit to the business.

Information marketing is the managerial process to deliver information products and services to the information consumers.

19


IS department in an organisation is responsible to provide information products and services to the rest of the company i.e. user departments or information consumers.

The external customers are the real customers that will consume and benefit from the information products and services.

20


7.0 Information Consumer

In an organization the information consumers are the user departments and their customers.

This can be seen from the organization’s structure chart which shows the various departments and divisions such as finance, human resource, production, operations, corporate planning, marketing, sales etc.

21


The internal information consumers are divided into three levels:

Top management such as managing director, chief executive officer, executive director, and departmental heads.

Middle management can be line managers, operational managers, executives, administrators etc.

Lower management includes clerical, supervisors, officers etc.

22


8.0 Market Segmentation, Targeting and Positioning for Competitive Advantage

Segmentation - portfolio management by functional area or industry i.e. Marketing, Sales, Finance, and Production Departments.

Targeting - Business Process Reengineering (BPR) and Business Needs. Example, revenue generating, reducing cost and increase profit etc.

23


Positioning - Provide total IT solution to meet the long term business needs.

Competitive Advantage - Identify the

portfolio management or specific supporting area business focus one-stop IT service provider

24


Process of dividing a market into meaningful, relatively similar, and identifiable segments or groups of user departments.

Portfolio management by industry, functional, geographic, process, product, or user departmentalization i.e. Marketing, Sales, Finance, and Production Departments.

25


Business market consists of four major categories of customers namely

producers such as construction, manufacturing, transportation, finance, real estate, and food service firms.

resellers include retailers and wholesalers. government include federal, state, and local authority,

and institutions include schools, hospitals, colleges and

universities, mosques, labour unions, civic clubs, foundations, and other non-profit organisations.

26


Process to design, implement, and maintain a marketing mix intended to meet the needs of that group, resulting in mutually satisfying exchanges.

Strategies for selecting target markets Undifferentiated targeting views the market as one big

market with no individual segments and thus requires a single marketing mix.

Concentrated targeting is used to select one segment of a market for targeting marketing efforts.

Multisegment targeting chooses two or more well-defined market segments and develops a distinct marketing mix for each.

27


Developing a specific marketing mix to influence potential user departments’ (customers’) overall perception of an IS products and services, and Information Systems Department.

Strategic positioning by providing total IT solution to meet the long term business needs in areas like: cost and efficiency improvement performance improvement in business effectiveness global market penetration product and service transformation

To be preferred IT solution provider for the company. Reposition is to change user departments’ perceptions of

IS products and services in relation to competing providers.28


9.0 Information Marketing Mix

9.1 Information Products 9.2 Information Services9.3 Information Pricing considerations and Approaches9.4 Information Promotion9.5 Management Involvement and Governance

29


9.1 Information Products

Information products consist of the organization support systems such as the following:

Decision Support System - helps the decision maker utilise data and models to solve unstructured problems, frequently used DSS is a spreadsheet package. Example Yield Management system.

Group Decision Support System - special software and physical facilities, such as a conference room containing PCs for each person in the room helps identify issues and evaluate alternative decisions and actions. Example, Operations Dispatch of flights.

Executive Information System - is a type of DSS, but in general it tends to be data oriented rather than model oriented.

30


Groupware - sometimes called “coordination software” because it helps managers coordinate the work of others in the firm to ensure that the resources of the firm are applied to achieving its objectives.

Multimedia - generally defined as a combination of different presentation media are coordinated through a PC workstation. Media includes artwork or still picture, full or partial motion video, sound, text, graphics, and animation.

31


9.2 Information Services

Provide support to user departments in systems development, systems operations, and technical services activities.

Information services staff should help select the needed tools and systems, and perform the following duties: Solving immediate problems for users on the telephone or through

e-mail. Teaching courses about available computers and software

packages.

32


Consulting on the use of packages and languages. Providing assistance in deciding on the acquisition of computers and

peripherals. Helping users by extracting, merging, and reformatting data on

company databases, and making the data available in a file for easy access by users.

33


9.3 Information Pricing Considerations and Approaches

Information Systems Department (ISD) can be operated as cost centre or profit centre.

In a cost centre operation, the pricing is the cost of operating the ISD.

In a profit centre operation, the pricing is charged with a markup price over the cost price.

Chargeback accounting system motivates efficient system usage by assigning to user organizations costs for information systems and related resources.

34


9.4 Information Promotion

The information products and services can be promoted by

Informative promotion increase the awareness of a new information product class, or

product attribute Explaining how the information product works Suggesting new uses for an information product Building a company image

35


Persuasive promotion Changing users’ perceptions of information product attributes Influencing users to buy now

Reminder promotion Reminding users that the information product may be needed in the

near future Reminding users where to buy the information product Maintaining user awareness

36


9.4.5 Information Promotion MethodThe information products and services can be promoted by Informative promotion on new and emerging information

technologies through seminar, conference, workshop, awareness campaign etc.

Persuasive promotion on having the IT solution for specific business problem by having Management involvement and governance in IT activities Meeting to provide solution on current information needs Joint Application Design/Development (JAD) Prototyping using rapid application development (RAD) tools Pilot project

Reminder promotion on anticipation of future needs through planning session.

37


9.5 Management Involvement and Governance

The experiences of successful organisations reveal that extensive and meaningful managerial and end user involvement is the key ingredient of high-quality information systems performance.

Thus shape the response of management to the challenge of improving the business value of information technology.

38


9.5.1 Levels of Management Involvement

Executive IT Committee Many organisations use an executive IT committee of top

executives to do strategic IS planning and to coordinate the development of major IS projects.

IT Steering Committee A steering committee of business units managers, operating

managers, and management personnel from ISD may be created to oversee the progress of critical systems development projects.

39


End User Management End user managers must also accept their responsibilities for

managing the resources and quality of IS and services within their business units and workgroups.

40


10. Implementation and Evaluation

Implementation strategies include using: System Development Life Cycle (SDLC)

A methodology to design and develop application system.

Rapid Application Development (RAD) powerful software tools and CASE to respond rapidly

to users with prototype applications and requires heavy involvement of those who will use the system.

41


Joint Application Design (JAD)A group of systems analysts, programmers, and users

can jointly and interactively design new applications. End User Development

IS professionals play a consulting role while the users do their application development.

42


10.1 Evaluation Marketing Plan

Evaluation entails gauging the extent to which marketing objectives have been achieved during a specified time period.

Common reasons for failing to achieve a marketing objective are:

unrealistic marketing objectives inappropriate marketing strategy poor implementation changes in the environment after the objectives was specified

and the strategy was implemented.

43


10.2 Evaluation Factors for IS Services

The factors focus on the quality of support services: Performance - actual versus plan. Systems development - availability of IS personnel &

other resources and their quality and cost. Maintenance - ability to provide system maintenance

and its quality and cost. Conversion - extent of providing systems development,

programming, and hardware installation services.

44


Training - provide necessary training and its quality and cost.

Backup - availability of similar computer facilities for emergency backup purposes.

Accessibility - availability of local or regional support that offers sales, systems development, and hardware maintenance services.

Business position - financially stable and strong parent company with good industry market prospects.

Hardware and Software - support interoperability, compatibility, and multi-vendor platform.

45


Thank You

46

IMS 554 INFORMATION MARKETING for INFORMATION SYSTEMS DEPARTMENT CHAPTER 4INFORMATIONMARKETING Pn Hasnah Hashim Lecturer Faculty of Information Management.

Documents

marketing information

information marketing4

information marketing2

accurate information

information marketing5

everyday information

marketing planning

marketing research system