WHAT IS INFORMATION TECHNOLOGY

A Business Case

The popularity of many sports events is increasing, along with the world’s population and the proportion of that population that wants tickets to the events. But the number of seats at many events around the world remains limited by the physical capacity of the stadium or arena that hosts the event. Since a great deal of money is made through sales of event- and team-related merchandise, promoters are searching for ways to increase these sales in ways that overcome the natural limitations on attendance. A good example of such an event is the Australian Tennis Open, whose managers have discovered a way to use Information Technology (IT) to provide greater access to the event and to boost merchandise sales.

The IT Solution

Tennis fans around the world can get a head start on the Australian Tennis Open tennis tournament by visiting the official Web site (ausopen.org) –designed, developed and hosted by IBM. The site provides fans with a “virtual box seat” by allowing them access to real-time scores and images from Melbourne Park, the site of the tournament, plus other information and photos. Tennis fans also can buy Australian Open merchandise from the online store. “The web site adds depth to the overall experience of the Australian Open and significantly expands the tournament’s reach for a global audience,” said Paul McNamee, Australian Open chief executive. “Technology has helped increase international interest in the Australian Open as one of the world’s great sporting events, thanks to increased access for fans in different time zones across Asia, North America and Europe.”

The Results

During the 2001 tournament, 543,843 tennis fans attended and another 975,000 visited the Web site and generated 48 million page views, an increase of 152 percent over the previous year. IBM is the official information technology and Internet supplier to Tennis Australia for the Australian Open. The company provides equipment and services for results and statistics collection; supplies information and graphics to television broadcasters and media; and distributes tournament data through information terminals around Melbourne Park.

What We Learned from Thid Case

Information technonlogies are now in some sense overcoming the laws of physics, particularly as they relate to marketing products and services and transacting business. A customer’s physical presence is now optional for conducting myriad business activities ranging from perusing a catalogue, purchasing, arranging shipping, to contributing feedback to a provider, interacting with other consumers, searching the world for the desired commodity and many other related activities. No segment of the world’s economy remains untouched by the revolutionary power of electronic commerce. For all the powerful advantages to the product or service provider in using the Internet, there is a counterbalancing force that gives consumers much greater ability to enjoy a much broader range of available products and services and to comparison shop for that product or service. In short, the floodgates of information have opened and many traditional business relationships and principles have been uploaded.

Source: Intro to IT, Turban ; Rainer ; Potter

Comprehension Questions

Please state your opinion about what IT is and its role in the above case!