BUS340 Exam 1

Control Charts

- Allows us to see things we couldn't normally see. We can plot errors on a line chart, but we can't really see if things are good or bad. - We can plot the average (mean) and look at variation to see how far our points are away from the center line (average). This allows us to find the standard deviation. - UCL is three standard deviations above the mean; the LCL is three below the mean. + First zone contains 68.3% of the data + Second zone contains 95.5% of the data + Third zone contains 99.7% of the data

Reengineering Business Processes

- Altering and designing business processes to take advantage of new information systems - Difficult, slow, and exceedingly expensive - Systems analysts interview key personnel throughout organization - Requires high-level, expensive skills and considerable time - Ask: What?, Who?, When?, Why?, How?

Big Data

- Big [volume] Data is not new! - Big Data means different things to people with different backgrounds and interests - Traditionally, "Big Data" = massive volumes of data E.g., volume of data at CERN, NASA, Google, ... Used to describe data collections that are characterized by huge volume, rapid velocity, and great variety

BPMN

- Business Process Modeling and Notation (BPMN) + Common (standardized) language to model business processes + Used by both Business and IT + Independent of the tool used or the modeler

Business Analytics

- Business analytics is the scientific process of transforming data into insight for making better decisions. Used for data-driven or fact-based decision making, which is often seen as more objective than other alternatives for decision making. - Tools of business analytics can aid decision making by creating insights from data, improving our ability to more accurately forecast for planning, helping us quantify risk, and yielding better alternatives through analysis and optimization

3 Developments Causing Business Analytics Growth

- Businesses want to use these data to improve the efficiency and profitability of their operations, better understand their customers, price their products more effectively, and gain a competitive advantage. - Technological advances such as improved point-of-sale scanner technology and the collection of data through e-commerce have added to the big data issue. - Cloud computing, the more recent development, is the remote use of hardware and software over the Internet.

Stream Analytics

- Data-in-motion analytics and real-time data analytics - One of the V's in Big Data = Velocity - Analytic process of extracting actionable information from continuously flowing/streaming data Why Stream Analytics? - It may not be feasible to store the data - It may loose its value if not processed immediately!

How to solve Information Silo Problems

- Functional Applications - Enterprise Applications (CRM, ERP, EAI) - Distributed systems using web technologies in the cloud

Bullwhip Effect

- Natural dynamic of multistage supply chain - Variability in size and timing of orders increases at each stage up supply chain, from customer to supplier - Unrelated to erratic customer demand - Large demand fluctuations force distributors, manufacturers, suppliers to carry larger inventories - Reduces overall profitability of supply chain - Eliminate by giving supply chain participants access to consumer-demand information

What is a business process?

- Network of activities for accomplishing a business function - Such as: buying & managing inventory, making sales to customers, paying bills, collecting revenue, and hundreds of other business functions

Internet's impact on competitive advantage

- Overall: Can transform, severely threaten, or destroy entire industries; can enable new products and services; can create new opportunities for building brands and large customer bases - Existing competitors: Widens market, increasing competitors, reducing differences, pressure to compete on price, intensifies competitive rivalry since the Internet is available to all - New Entrants: Reduces barriers to entry (e.g., need for sales forces declines), provides technology for diving business processes. - Substitute products and services: Facilitates creation of new products and services - Customers' Bargaining power: Bargaining power shifts to customer since the customer can find the lowest price easily. - Suppliers' Bargaining power: procurement over Internet raises power over suppliers, supplier can benefit from reduced barriers to entry and elimination of intermediaries.

Inherent Processes

- Save money and time in business process reengineering ("industry best practices") - Eliminate costs of developing complex applications in-house Inherent processes are predesigned procedures for using the software products; they save organizations from expensive and time-consuming business process reengineering. Organizations license software and obtain prebuilt procedures based upon "industry best practices."

CRM

- Suite of applications, a database, and a set of inherent processes - Manage all interactions with customer through four phases of customer life cycle: + Marketing, customer acquisition, relationship management, loss/churn - Intended to support customer-centric organization

Strong Passwords

- Use ten or more characters - Do not include your user name, real name, or company name - Do not use complete dictionary word in any language - Is different from previous passwords you have used - Contains both upper and lowercase letters, numbers, and special characters

How information systems effect supply chain performance?

- reduces costs of buying and selling - increase supply chain speed - reduce size and cost of inventories - improve delivery scheduling- enable JIT - fix bullwhip effect - do not optimize supply chain profitability

Problems with Informational Silos

-Data Duplication/Data Inconsistency - Disjointed Processes - Limited Information & Lack of Integrated Information - Isolated decisions lead to organizational inefficiencies - Increased expense

6 V's of BigData

1) Volume 2) Velocity 3) Variety 4) Variability 5) Veracity 6) Visualization 7) Value

Data Scientist

A data scientist represents an evolution from the business or data analyst role. The formal training is similar, with a solid foundation typically in computer science and applications, modeling, statistics, analytics and math. What sets the data scientist apart is strong business acumen, coupled with the ability to communicate findings to both business and IT leaders in a way that can influence how an organization approaches a business challenge. Good data scientists will not just address business problems, they will pick the right problems that have the most value to the organization. Complements Big Data

Data Warehousing

A facility for managing an organization's BI data;The functions are: - Obtain Data - Cleanse Data - Organize and Relate Data - Catalog Data

ERP

An ERP is a suite of applications (modules), a database, and a set of inherent business processes (procedures) for consolidating business operations into a single, consistent, computing platform. ERP systems are IS based on ERP technology. Initial ERP training and consulting are key to success. Purpose: - Primary purpose: integration of purchasing, human resources, production, sales, and accounting data into a single system. - Allows real time global updates whenever a transaction happens. - Critical business decisions can be made using latest data.

Informational Silos

An information silo is the condition that exists when data are isolated in separated information systems. Silos come into existence as entities at one organizational level create information systems that meet their particular needs only. Each application processes customer, sales, product, and other data, but each uses that data for different purposes and store somewhat different data.

As-Is vs. To-Be Process Models

As-Is: The model of the current business process To-be: The model of the redesigned or reengineered model

Prescriptive Analytics

Automatically synthesizes big data, mathematical sciences, business rules, and machine learning to make predictions and then suggests decision options to take advantage of the predictions. Optimization & Simulation

DSS vs. BI

BI: Business Intelligence Systems are information systems that process operational and other data to analyze past performance and to make predictions. The patterns, relationships, and trends identified by BI systems are called business intelligence. [have 5 components like IS] Purpose is to extract & make available to those who need it for project management, problem solving, deciding, informing DSS: Decision Support Systems- some authors define BI systems as supporting decision making only, in which case they use the older term DSS as a synonym for decision-making BI systems. We t

Enterprise Systems

CRM- Customer Relationship Management ERP -Enterprise Resource Planning

Business Analytics Overview

Companies that apply analytics often follow a trajectory similar to that shown in Figure 1. Organizations start with basic analytics in the lower left. As they realize the advantages of these analytic techniques, they often progress to more sophisticated techniques in an effort to reap the derived competitive advantage. Predictive and prescriptive analytics are sometimes therefore referred to as advanced analytics.

Data Science

Data Science is an interdisciplinary field about processes and systems to extract knowledge or insights from large volumes of data in various forms, either structured or unstructured, which is a continuation of some of the data analysis fields such as statistics, data mining and predictive analytics

Data Analyst

Data analysts translate numbers into plain English Every business collects data, whether it's sales figures, market research, logistics, or transportation costs. A data analyst's job is to take that data and use it to help companies make better business decisions.

Descriptive Analytics

Descriptive analytics looks at data and analyzes past events for insight as to how to approach the future. Descriptive analytics looks at past performance and understands that performance by mining historical data to look for the reasons behind past success or failure. Almost all management reporting such as sales, marketing, operations, and finance, uses this type of post-mortem analysis. Business Intelligence & Data Mining

How can information systems improve process quality?

Effectiveness: - Business process enables organization to accomplish its strategy. Efficiency - Ratio of benefits to costs - Costs - time and infrastructure

What is an information system?

Group of components that interact to produce information There are information systems that do not include computers. Double entry accounting or bookkeeping began in the 15th century

5 Components of an Information System

Hardware-> Software->Data->Procedures-> People There are information systems that do not include computers. Double entry accounting or bookkeeping began in the 15th century.

IT vs. IS

IT components = Hardware + Software + Data IS = IT + Procedures + People - Avoid a common mistake: cannot buy an IS - Can buy, rent or lease hardware, software, and databases, with predesigned procedures - People execute procedures to employ new IT - Use of new systems requires training, overcoming employees' resistance, and managing employees as they use new systems

Moore's Law

In 1965 Gordon Moore, cofounder of Intel Corp. state that because of technology improvements in electron chip design and manufacturing, "The number of transistors per square inch on an integrated chip doubles every 18 months." The ratio of price to performance computers has fallen from something like $4,000 for a standard computing device to less than a penny for that same device The point: Because of Moore's Law, the cost of data communications and data storage is essentially zero Consequences: - YouTube - Pandora - Twitter - Facebook

What is MIS?

Management Information System MIS is the management and use of information systems that help businesses achieve their strategies. 3 Key Elements: - Management and use - Information systems - Strategies Assumes your organization decides to develop a Facebook page Aligning IS to achieve business goals & objectives

Big Data Technologies

MapReduce: a technique for harnessing the power of thousands of computers working in parallel. The basic idea is that the BigData collection is broken into pieces, and hundreds or thousands of independent processors search these pieces for something of interest Hadoop: is an open-source program supported by the Apache Foundation that manages thousands of computers and which implements MapReduce. Hadoop could drive the process of finding and counting the Google search terms, but Google uses its own proprietary version of MapReduce to do so, instead. Began as part of Cassandra, but the Apache Foundation split it off to become its own product. Hadoop is written in Java and originally ran on Linux.

Key Big Data Vendors

MarkLogic Cloudera 10gen MapR Hortonworks DataStax Basho Couchbase Aerospike NeoTechnologies

Key Elements of BPMN models & how to read/analyze them

Pool/Swim Lanes Events Activities (Tasks) Gateways Message Flow Sequence Flow Gateway: Controls the flow of information Events: trigger an event Tasks/Sub-processes - do the work Artifacts: Documentation

How do information systems provide competitive advantages?

Product Implementations 1. Create a new product or service 2. Enhance products or services 3. Differentiate products or services Process implementations 4. Lock in customer and buyers 5. Lock in suppliers 6. Raise barriers to market entry 7. Establish alliances 8. Reduce costs

Supply Chain Management System

The term chain is misleading. Chain implies that each organization is connected to just one company up (toward the supplier) and down (toward the customer) the chain. That is not the case. Instead, at each level, an organization can work with many organizations both up and down the supply chain. Thus, a supply chain and the processes that support it are networks. - Factors that affect supply chain performance include facilities, inventory, transportation, and information. Information: + Purpose: can be transactional + Availability: ways to share information; with whom, what and when. + Means: methods for transmitting information

How does organizational strategy determine information systems structure?

This figure summarizes a planning process used by many organizations. In short, organizations examine the structure of their industry and, from that, develop a competitive strategy. That strategy determines value chains, which determine business processes. Remember, the nature of business processes determines the requirements and functions of information systems. 1. Industry structure determines competitive strategies 2. Competitive strategy determines value chains and business processes 3. Business processes determine supporting information systems Information Systems -> Competitive Strategy-> Value Chains -> Business Processes -> Information Systems

Porter's 5 Competitive Forces Model

Threat of New Market Entrants Threat of Substitute Threat of Buyer Power Threat of Supplier Power Rivalry

Predictive Analytics

Turns data into valuable, actionable information. Predictive analytics uses data to determine the probable future outcome of an event or a likelihood of a situation occurring. Forecasting

Information

knowledge communicated or received concerning a particular fact or circumstance; news: