Ch 1
Porters Three Generic Strategies
cost leadership, differentiation, and focused strategy
Human Resources Department
maintains policies, plans, and procedures for the effective management of employees
Data
raw facts that describe the characteristics of an event or object
Primary value activities
receive and store raw materials, make the product or service, deliver the product or service, market and sell the product o service, service after the sale
Services
tasks people perform that customers will buy to satisfy a want or need; teaching, waiting tables, cutting hair
Prescriptive Analytics
techniques that create models indicating the best decision to make or course of action to take; airline using past purchasing data as inputs into a model that recommends the best pricing strategy to maximize revenue
Internet of Things (IoT)
a world where interconnected internet-enabled devices or things have the ability to collect and share data without human intervention
Machine-generated data
created by a machine without human intervention
Information
data converted into a meaningful and useful context
Human-generated data
data that humans, in interaction with computers, generate
Neiman Marcus
high cost, broad market
Marketing Department
supports sales by planning, pricing, and promoting goods or services
Supplier Power
the suppliers ability to influence the prices they charge for supplies; supply chain (suppliers, company, customers)
Porters Five Forces Model
threat of substitute products or services, buyer power, threat of new entrants, and supplier power all lead to rivalry among existing competitors
Finance Department
tracks strategic financial issues including money, banking, credit, investments, and assets
Value Chain analysis
views a firm as a series of business processes that each add value to the product or service
Management Information Systems (MIS)
a business function, like acct or hr, which moves information about people, products, and processes across the company to facilitate decision making and problem solving
Big Data
a collection of large, complex data sets, including structured and unstructured data, which cannot be analyzed using traditional database methods and tools
Entry Barrier
a feature or product or service that customers have come to expect and entering competitors must offer the same for survival
Business Strategy
a leadership plan that achieves a specific set of goals or objectives such as developing new products or services, entering new markets, increasing customer loyalty, attracting new customers, and increasing sales
Competitive Advantage
a product or service that an organization's customers place a greater value on than similar offerings from a competitor
Business process
a standardized set of activities that accomplish a specific task, such as a specific process
Snapshot
a view of data at a particular point in time
Systems thinking
a way of monitoring the entire system by viewing multiple inputs being processed or transformed to produce outputs while continuously gathering feedback on each part
Dynamic report
changes automatically during the creation
Static report
creating once based on data that does not change
Walmart
low cost, broad market
Operations Management
manages the process of converting or transforming or resources into goods or services
Report
a document containing data organized in a table, matrix, or graphical format allowing users to easily comprehend and understand information
SWOT analysis
evaluates an organization's strengths, weaknesses, opportunities, and threats to identify significant influences that work for or against business strategies
Support value activities
firm infrastructure, humane resource management, technology development, procurement
Rivalry among existing competitors
high when competition is fierce in a market and low when competitors are more complacent; product differentiation
Threat of new entrants
high when it is easy for new competitors to enter a market and low when there are significant entries barriers
Threat of substitute products or services
high when there are many alternatives to a product or service and low when there are few alternatives
Knowledge worker
individual valued for their ability to interpret and analyze information
Business Intelligence
information collected from multiple sources such as suppliers, customers, competitors, partners, and industries that analyze patterns, trends, and relationships for strategic decision making
Goods
material items or products that customers will buy to satisfy a want or need; cars, groceries, clothing
Tiffany & Co.
narrow market, high cost
Payless Shoes
narrow market, low cost
Unstructured Data
not defined and does not follow a specified format
Product differentiation
occurs when a company develops unique differences in its product or services with the intent to influence demand
First mover advantage
occurs when an organization can significantly impact its market share by being first to market with a competitive advantage
Chief Information Officer
oversees all uses of IT and ensures the strategic alignment of IT with business goals and objectives
Sales Department
performs the function of selling goods or services
Accounting Department
records, measures, and reports monetary transactions
Machine-to-Machine (M2M)
refers to devices that connect directly to other devices
Chief Knowledge Officer
responsible for collecting, maintaining and distributing the organization's knowledge
Chief Privacy Officer
responsible for ensuring ethical and legal use of information
Chief Security Officer
responsible for ensuring the security of IT systems
Chief Technology Officer
responsible for ensuring the throughput, speed, accuracy, availability and reliability of IT
Knowledge
skills, experience, and expertise coupled with information and intelligence that creates a person's intellectual resources
Structured Data
stored in a traditional system such as a relational database or spreadsheet
Descriptive Analytics
techniques that describe past performance and history; creating a report that includes charts and graphs that explains data
Predictive Analytics
techniques that extract information from data and use it to predict future trends and identify behavioral patterns; using past sales data to predict future sales data
Buyer Power
the ability of buyers to affect the price of an item; switching cost and loyalty programs
Analytics
the science of fact-based decision making; descriptive, predictive, or prescriptive