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203 Cards in this Set
- Front
- Back
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Business Strategy drives technology decisions, not the reverse
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True
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Organizations determine which technology to use and when to sue it by following a process:
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1. Competition and Industry pressures
2. Business Strategies 3. Business Processes 4. Technology tools |
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Management Information Systems
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planning for, development, management, and use of information tools to help people perform all task related to information processing and managment
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3 most important organizational resources
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People, Information, Information Technology
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Data
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raw facts that describe aparticual phenomenon.
Ex: current temp. price of a movie rental |
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Information
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data that have a particular meaning within a specific context.
Ex: current temp if your deciding what to wear |
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Business Intelligence
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Collective Information
Ex: competitors, business partners, competitive environment |
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Knowledge
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1. Provide contextual explanation for BI
2. Can point toward actions to take to affect BI 3. Intellectual assets: trademarks and patents 4.organizational know-how for things such as best practices |
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Information exhibits high quality only if it is ____, _____, and _____.
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Pertinent, relevant, and useful to you
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Defining information quality
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Timeliness, Location, Form, and Validity
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Timeliness
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Do you have access to information when you need it?
Does the information describe the time period or periods you're considering? |
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Location
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Information is of no value to you if you can't access it
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Form
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Is the information in a form that is most useful to or usable by you- audio, text, video, animation, graphical
Is the information free of errors? |
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Garbage-in Garbage-out (GIGO)
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the information coming into your decision-making process is in bad form, you'll more than likely make a poor decision
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Validity
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Credibility of information
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Informational Flows within organization
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Upward, Downward, Horizontal, Outward/inward
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Upward Flow of Info
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describes the current state of the organization based on its daily transactions.
Ex: Sale occurs @ register |
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Information Granularity
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Extent of detail within the information
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Downward
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Strategies, goals, and directives that originate at a higher level are passed to lower levels
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Horizontal
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Functional business units and work teams.
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Outward/ Inward
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Information is communicated from and to customers, suppliers, distributors, and other partners for the purpose of doing business.
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Internal Information
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specific operational aspects of an organization
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External information
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environment surrounding the organization
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Objective Information
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quantifiable describes something that is KNOWN
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Subjective Information
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attempts to describe something that is UNKNOWN
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Single most important resource in any organization is
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PEOPLE
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Technology- literate knowledge worker
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knows how and when to apply technology.
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Information-literacy knowledge worker
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1.Can define what information is needed
2. Knows how and where to obtain information 3. Understands the information once it is received (can transform the information into business intelligence) |
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Ethics
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principles and standards that guide our behavior toward other people.
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Information Technolgy
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any computer-based tool that people use to work with information and support the information-processing needs of an organization
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2 categorize technology is as either ____, or ____.
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Hardware, Software
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Hardware
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physical devices that make up a computer
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Software
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set of instructions that your hardware executes to carry out a specific task for you.
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Hardware Technology Categories
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1. input device
2. output device 3. storage device 4. Central processing unit 5. Telecommunications device 6. Connecting devices |
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Input Devices:
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to enter information and commands
Ex: Keyboard, mouse, touch screens, game controller, bar code reader |
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Output Device:
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use to see, hear, or otherwise recognize the results of your information-processing request.
Ex: Printer, monitor, speakers |
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Storage Device:
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Store information for use at a later time
Ex: Flash memory card, DVD |
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Central Processing Unit: CPU
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hardware that interprets and executes the system and applications software instructions and coordinates the operation of all the hardware.
Brains of the computer |
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RAM: Random Access Memory
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temporary holding area for the information you're working on as well as the system and application software instructions that the CPU currently needs
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Connecting Device
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USB port into which you would connect a printer, connector cables to connect your printer to the USB port, and internal connecting devices on the motherboard
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2 types of software
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Application and System
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Application Software
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software that enables you to solve specific problems and perform specific task.
Microsoft word, Payroll software |
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System Software
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handles task specific to technology management and coordinates the interaction of all technology devices.
Network operating system software- MAC and Windows XP |
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Porter's Five Force Model
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helps business people understand the relative attractiveness of an industry and the industry's competitive pressures in terms of the following five forces:
1. buyer power 2. supplier power 3. Threat of substitute products and services 4. Threat of new entrants 5. Rivalry among existing competitors |
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Buyer power
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high- buyers have many choices from who to buy
low- when their choices are few |
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Loyalty Programs
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reward customers based on the amount of business they do with a particular organization
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competitive advantage
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providing a product or services in a way that customers value more than what the competition is able to do.
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First mover advantage
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significant impact on gaining market share by being the first to market with a competitive advantage
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Supplier power
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high- buyers have few choice from whom to buy
low- their choices are many Trademarks and Patents to minimize dublication |
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Threat of substitue products or services
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high- many alternatives to a product or service,
low- when there are few alternatives from which to choose |
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Switching cost
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cost that make a customer reluctant to switch to another product or service provider
* have to set up new profile* |
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threat of new entrants
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high- easy for new competitors to enter a market
low- there are significant entry barriers to entering a market |
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entry barrier
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product or service feature that customers have come to expect from organizations in a particular industry and that must be offered by an entering organization to compete and survive
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Rivalry among existing competitors
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high- competition is fierce in a market
low- competition is more complacent |
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3 strategies to beating the competition in any industry
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Overall cost leadership, differentiation, and focus
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Overall cost leadership
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offering the same or better quality product or service at a price that is less than what any of the competition is able to do
Walmart |
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Loss leader
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product sold at or below cost to entice customers into a store in the hope that they will also buy more profitable products.
* usually in back of store* |
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Differentiation
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offering a product or service that is perceived as being "unique" in the marketplace
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Focus
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offering P/S to 1. market segments or buyer group 2. within a segment of a product line 3. a specific geographic market
EX: Restaurants |
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Topline vs. bottomline
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top= increase revenues
new customers, new products bottom=minimize expenses optimizing manufacturing process, decrease transportation cost |
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Customer self- service system
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transaction processing system that places technology in the hands of an organization's customers and allows them to process their own transaction
Online banking, or ATMs |
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Transaction processing system
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system process transactions within an organization
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Run-grow-transform framework
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allocate in terms of percentages how you will spend your IT dollars on various types of business strategies.
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Run
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optimize the execution of activities and processes already in place.
$: offering P/S faster and cheaper than the competition |
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Grow
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increase market reach, product and service offerings, expand market share
$: taking market shares from the competition |
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Transform
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Innovate business processes and/ or products and services in a completely NEW way, move into seemingly different markets
$: new and different means |
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Value-chain Analysis
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systematic approach to assessing and improving the value of business processes within your organization to further increase its competitive strengths
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Value chain
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chain or series of business processes, each of which adds value to your organization's products or services for customers
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Business process
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a standardize set of activities that accomplishes a specific task.
Customer orders, we deliver, support after sale |
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Value chain is made up of _______ and ______
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Primary and support value process
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Primary value process
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takes raw materials and makes, delivers, markets and sells, and services your organization's P/S.
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Primary Value process involves
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1. Inbound logistics: receiving and warehousing raw materials and distributes those raw materials to manufacturing as needed
2. Operations- processing raw materials into finished goods 3. Outbound- warehousing and distributing finished P/S 4. Marketing and Sales- identify customer needs and generate sales 5. Services- supporting customers after the sale of P/S |
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Support Value Process
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firm infrastructure ( culture, structure, control systems, accounting, and legal), human resource management, technology management, and procurement( purchasing raw materials)
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3 important IT implementations of business processes to support those business strategies
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Supply chain management, customer relationship management, and E-collaboration
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Distribution chain
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simple the path a P/S follows from the originator to the end consumer
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Supply chain management
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tracks inventory and information among business processes and across companies
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Supply chain management systems
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an IT system that supports supply chain management activities by automating the tracking of inventory and information among business processes and across companies.
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Inter-modal transportation
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use of multiple channels of transportation- truck, railroad, boat- to move Products from the origin to the destination.
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Primary focus of supply chain management may be describe in terms of ________, _________, and __________.
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overall cost leadership, bottom line initiative, running the organization
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supply chain activities:
1. Fulfillment 2. logistics 3. Production 4. Revenue and profit 5. Costs and price |
1. Fulfillment- ensuring that the right quantity of parts for production or products for sale arrive at the right time
2. Logistics- keeping cost of transporting materials as low as possible consistent with safe and reliable delivery 3. Production- ensuring production lines function smoothly because high-quality parts are available when needed. 4. Revenue and profit- ensuring no sales are lost bc of shelves being empty 5. Cost and Price- keeping the cost of purchased parts and prices of products at acceptable levels |
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Information partnerships
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two or more companies cooperating by integrating their IT systems thereby providing customers with the best of what each can offer
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Customer Relationship Management system
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uses information about customers to gain insight into their wants, needs, and behaviors in order to serve them better
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Multi-channel service delivery
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a company's offering multiple ways in which a customer can interact with it.
Email, fax, phone, web |
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CRM systems typically include such functions as ____, ___, and ___.
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Sales force automation, Customer service and support, and Marketing campaign management and analysis
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Sales force automation
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automatically track all the steps of the sales process.
including contact management, sales lead tracking, sales forecasting and order management, and product knowledge |
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CRM's primary focus is ____, ____, and ___.
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Differentiation and focus, top line initiative, and growing the organzation
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Front office systems
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primary interface btw the customer and the sales channels
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back office systems
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used to fulfill and support customer orders.
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One of the rewards of CRM is competitive advantage through superior performance in CRM functions
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1. devising more effective marketing campaigns based on more precise knowledge of customer needs and wants
2. Assuring that the sales process is efficiently managed 3. Providing superior after-sale service and support, ex: call centers |
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E-collaboration
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1. Work activities with integrated collaboration environments
2. Knowledge management with Knowledge management systems 3. Social networking with Social networking systems 4. E-learning tools 5. Informal collaboration to support open-source information |
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Integrated collaboration environment
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Environment in which virtual teams do their work
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Virtual teams
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teams whose members are located in varied geographic locations and whose work is support by ICE software or by more basic collaboration systems
* support sharing and flow of info* |
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Work flow systems
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facilitate the automation and management of business processes
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Work flow
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defines all the steps or business rules, from beginning to end, required for business process
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Document management system
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manages a document through all the stages of its processing.
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Social networking site
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site on which you post information about yourself, create a network of friends, read about other people, share context such as photos and videos, and communicate with other people
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social networking system
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an IT system that links you to people you know and, from there, to people your contact know
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E-learning tools
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IT-enabled systems that facilitate learning.
Ex: Blackboard |
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wiki
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web site that allows you-as a visitor- to create, edit, change, and often eliminate content- or open source information
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Open source information
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content that is publicly available, free of charge, and most often updateable by anyone
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IT culture
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refers to how the IT function is placed structurally within an organization and the organization's philosophical approach to the development, deployment, and us of IT
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CIO ( chief information officer)
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responsible for overseeing every aspect of an organization's information resource
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CTO ( chief technology officer)
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responsible for overseeing both the underlying IT infrastructure within an organization and the user-facing technologies
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CSO ( chief security officer)
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responsible for the technical aspects of ensuring the security of information such as the development and use of firewalls, intranets, extranets, and anti-virus software
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CPO ( chief privacy officer)
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responsible for ensuring that information is used in an ethical way and the only the right people have access to certain types of information such as financial records, payroll, and health care
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Technology innovation failure
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a reward system for trying new technologies even if they prove to be unsuccessful
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enterprise resource planning (EPR)
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collection of integrated software for business management, accounting, finance, human resources management, project management, inventory management, service and maintenance, transportation,e-business, and supply chain management, customer relationship management, and e-collaboration
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legacy information system (LIS)
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represents a massive, long-term business investment in a software system with a single focus; such as are often brittle, slow and nonextensible
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IT culture has two primary aspects:
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1. Structuring of the IT function
2. Organization's philosophy as to the use of IT |
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3 of the most common ways for "structuring the IT function" in IT Culture
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1. Top-down silo
2. Matrix 3. Fully integrated throughout the organization |
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Top-down silo
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Organization would create a department or IT function that is exclusively devoted to everything related to technology- budgeting, project management, capacity, processing
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Exhibits a strong "command and control" management style of the IT culture
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Top-down silo
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Matrix Approach of IT culture
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you will still find an IT department or function, but the goal here is to maintain IT personnel within the IT department but matrix them across the other functions
Everything becomes more collaborative across the organization |
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Fully integrated approach of IT culture
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many IT personnel are now located within the other functional units, although there is still usually a separate IT department of function.
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ERP results is
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1. integrated information across the board (data, information, business intelligence)
2. One suite of applications 3. a unified interface across the entire enterprise |
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overall, ERP system is expected to improve both
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back office and front-office functions simultaneously
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Online Transaction Processing (OLTP)
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gathering of input information, processing that information, and updating existing information to reflect the gathered and processed information
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Operational database
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supports online transaction processing (OLTP)
Contains valuable information that forms the basis of BI |
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Online Analytical processing
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multiplication of information to support decision-making
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Database warehouse
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special from of a database that contains information gathered by OLTP for the purpose of supporting decision making task.
Supports only OLAP, not all support ONTP |
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database are the "heart and soul" of any organization because
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they organize and manage all of the organization's information resources
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Database
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Collection of information that you organize and access to the logical structure of that information
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Relational Database
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series of logically related two-dimensional tables of files to store information in the form of a database
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Relational
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describes each two-dimensional table or file in the relational model
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A relational database is actually composed of two distinct parts:
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1. information itself, stored in a series of two-dimensional tables
2. the logical structure of that information |
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data dictionary
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logical structure for the information in a database
Ex: Customer phone in the Customer file |
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Primary Key
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a field that uniquely describes each record
Ex: Customer Number in the Customer File |
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Foreign key
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a primary key of one file that appears in another file
Ex: Truck Number for the Truck File, and appears in the Order file too |
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Integrity constraints
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rules that help ensure the quality of the information
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Database Management system
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helps you specify local organization for a database and access and use information within a database
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DBMS contains five important software components:
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1. DBMS engine
2. Data definition subsystem 3. Data manipulation subsystem 4. Application generation subsystem 5. Data administration subsystem |
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DBMS engine
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accepts logical request from the various other DBMS subsystems, converts into their physical equivalent, and actually accesses the database and data dictionary as they exist on a storage device
*most important component of DBMS* |
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Physical view of information
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deals with how information is arranged, stored, and accessed on some type of storage device, such as a hard disk
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Logical view of information
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focuses on how you as a knowledge worker need to arrange and access information to meet your particular business needs
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data definition subsystem
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helps you create and maintain the data dictionary and define the structure of the files in a database
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data manipulation subsytem
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helps you add, change, or delete information in a database and query it for valuable information
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While DBMS engine handles you information request from a physical point of view, it is i the data manipulation tools within a DBMS that allow you to specify your logical information requirements
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FACT
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View
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allows you to see the contents of a database file, make whatever changes you want, perform simple sorting, and query to find the location of specific information
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Report generators
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help you quickly define formats of reports and what information you want to see in a report
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Query-by-example tools (QBE)
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helps you graphically design the answers to a question
*pointing, clicking, and dragging* |
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Structured query lanuage (SQL)
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standardized forth-generation query language found in most DBMS,
Perform the query by creating a statement Ex: Select, from, where |
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Data administration subsystem
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helps you manage the overall database environment by providing facilities for backup and recovery, security management, query optimization, concurrency control, and change management
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Backup and recovery
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provide a way for you 1. periodically back up information and 2. restart or recover a database and its information in case of a failure.
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Backup
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simply a copy of the information stored on a computer
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Recovery
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process of reinstalling the backup information in the event the information was lost
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Security management facilities
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allow you to control who has access to what information and what type of access those people have. CRUD: create, read, create, update
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Query optimization facilities
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shortest route to the information you want so you don't have to
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Reorganization facilities
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continually maintain statistic concerning how to DBMS engine physically accesses information and reorganizes how information is physically stored.
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Concurrency Control facilities
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ensure the validity of database updates when multiple users attempt to access and change the same information
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Change management facilities
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allow you to asses the impact of proposed structural changes to a database
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Data Warehouse
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logical collection of information- gathered from many different operational databases- used to create business intelligence that supports business analysis activities and decision-making task
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Data Warehouse are __________ and ________.
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multidimensional and are referred to as a hypercube. They are not transaction-oriented: they exist to support decision-making task in your organization
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Data Mining Tools
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the software tools you use to query information in a data warehouse
*support the concept of OLAP- the manipulation of information to support decision-making task |
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Query-and reporting tools of data mining tools
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similar to QBE tools, SQL, and report generator in the typical database environment
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Multidimensional analysis tools ( MDA) of data mining tools
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slice and dice techniques that allow you to view multidimensional information from different perspectives.
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Statistical tools of data mining tools
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help you apply various mathematical models to the information stored in a data warehouse to discover new information
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data mart
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subset of a data warehouse in which only a focused portion of the data warehouse information is kept.
*data marts support the use of query-and reporting tools, intelligent agents, multidimensional analysis tools and statistical tools. |
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Competitive Intelligence (CI)
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business intelligence focused on the external competitive environment
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Digital dashboard
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displays key information gathered from several sources on a computer screen in a format tailored to the needs and wants of an individual knowledge worker
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Data administration
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function in an organization that plans for, oversees the development of, and monitors the information resource.
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Database administration
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function in an organization that is responsible for the more technical and operational aspects of managing the information contained in organizational information repositories (databases, data warehouses, and data marts)
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Decision Making has 4 distinct phases
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Intelligence
Design Choice Implementation |
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Intelligence
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(find what to fix): find or recognize a problem,need, or opportunity
*also called diagnostic phase of decision making* |
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Design
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(find fixes): consider possible ways of solving the problem, filling the need, or taking advantage of the opportunity
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Choice
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(pick a fix): Examine and weigh the merits of each solution, estimate the consequences of each, and choose the best one (may be nothing at all)
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Implementation
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(apply the fix): Carry out the chosen solution, monitor the results, and make adjustments as necessary
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Satisficing
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making a choice that meets your needs and is satisfactory without necessarily being the best possible choice available.
*combination of "satisfied" and "sufficient* |
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4 main types of decisions
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Structured decision
Unstructured decision Recurring Nonrecurring |
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Structured decision
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involves processing a certain kind of information in a specified way so that you will always get the right answer
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Unstructured decision
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one for which there may be several "right" answers, and there is no precise way to get a right answer
*new product line, employ new marketing campaign* |
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Recurring Decision
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one that happens repeatedly, and often periodically, whether weekly, monthly, quarterly, or yearly
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Nonrecurring decision or adhoc
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one that you may make infrequently (perhaps only once) and you may even have different criteria for determining the best solution each time
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Decision Support system (DSS)
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highly flexible and interactive IT system that is designed to support decision making when the problem is not structured
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IT provides great power, but you has the decision maker, must know what kinds or questions to ask of the information and how to process the information to get those questions answered.
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In fact the primary objective of a DSS is to improve your effectiveness as a decision maker by providing you with assistance that will complement your insights
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DSS has 3 components
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Model management
data management user interface managment |
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Model Management
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component consist of both DSS models and the DSS model management system.
*stores and maintains the DDS's models* |
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Model
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representation of some event, fact, or situation
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Data Management
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performs the function of storing and maintaining the information that you want your DSS to use.
*consist of bother the DSS information and the DSS database management systems |
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information used in your DSS comes from one or more of three sources
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Organizational information
External information Personal information |
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User interface management
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allows you to communicate with the DSS. It consists of the user interface and user interface management system.
Allows you to combine your know-how with the storage and processing capabilities of the computer. |
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Geographic information system (GIS)
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decision support system designed specifically to analyze spatial information.
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Spatial information
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any information that can be shown in map form, such as roads, the distribution of the bald eagle population, or path of a hurricane
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Business geography
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when businesses use GIS to generate maps showing information of interest to them
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Artificial intelligence (AI)
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the science of making machines imitate human thinking and behavior.
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AI systems that businesses use most can be classified into these categories
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Expert system
Neural networks (fuzzy logic) Genetic algorithms Intelligent agents (or agent-based technologies) |
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Expert system or knowledge based system
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artificial intelligence system that applies reasoning capabilities to reach a conclusion.
*excellent 4 diagnositc and prescriptive problems* |
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Diagnostic problems
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are those requiring an answer to the questions, "whats wrong" and correspond to the intelligence phase of DM
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Prescriptive problems
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are those that require and answer to the question, "what to do?" and correspond to the choice phase of DM
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Neural network (ANN)
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is an artificial intelligence system that is capable of finding and differentiating patterns
*can learn by example and adapt to new concepts and knowledge* *widely used for visual pattern and speech recognition systems* *most useful for identification, classification, and prediction when a vast amount of information is available |
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Fuzzy logic
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mathematical method of handling imprecise or subjective information.
*assign values of 0 and 1 to vague or ambiguous info* |
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Genetic algorithm
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AI system that mimics the evolutionary, survival-of-the-fittest process to generate increasingly better solutions to a problem
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Genetic algorithm uses 3 concepts of evolution
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Selection: survival of the fittest
Crossover: combing portions of good outcomes int he hope of creating an even better outcome Mutation: randomly trying combinations and evaluation the success (or failure) of the outcome |
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Intelligent Agents
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software that assist you, or acts on your behalf, in performing repetitive computer-related task
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4 types of intelligent agents
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Information agents
Monitoring-and-surveillance agents data-mining agents user or personal agents |
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Information agents
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Intelligent agents that search for information of some kind and bring it back
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Buyer Agent ( also known as shopping bot)
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Intelligent agent on a web site that helps you, the customer, find products and services that you need
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Monitoring-and-Surveillance agents (also called predictive agents)
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Intelligent agents that constantly observe and report on some entity of interest, a network, or manufacturing equipment
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data-mining agent
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operates in a data warehouse discovering information.Process of looking through the data warehouse to find information that you can use to take action
*most common- classification *may detect a major shift in a trend or a key indicator |
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User agents (personal agents)
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Intelligent agents that take action on your behalf.
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Biomimicry
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learning from ecosystems and adapting their characteristics to human and organizational situations
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Multi-agent system
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groups or intelligent agents have the ability to work independently and to interact with each other
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Agent-based modeling
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way of stimulating human organizations using multiple intelligent agents, each of which follows a set of simple rules and can adapt to changing conditions
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Swarm (collective) intelligence
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collective behavior of groups of simple agent that are capable of devising solutions to problems as they arise, eventually leading to coherent global patterns
*characteristics: flexibility, robustness, decentralization, and self organization |
