Information Systems Exam #1

Strategic advantage leads to....

Competitive Advantage

Subsystems

Components of a larger system- with subgoals, all contributing to meeting the main goal

Effectiveness

Defines the degree to which a goal is achieved

Efficiency

Determined by the relationship between resources expended and the benefits gained in achieving a goal

Storage

Different types of media- such as magnetic disks, magnetic tapes, optical discs, DVDs, and flash memory- that store data and information

Output

Getting information out of the IS

Personal Digital Assistants

Handheld computers

Telecommunications

Hardware and software that facilitate fast transmission and reception of text, pictures, sound, and animation in the form of electronic data

Customer Relationship Management Systems

Help manage an organization's relationships with its customers

Open System

Interfaces and interacts with other systems

Material Requirements Planning (MRP)

Inventory control that includes a calculation of future need

Personal Computers

Is the collective name for several types of computers: notebook computers, desktops, netbooks, and handheld computers

Smartphone

Mobile phones

Workstations

More powerful personal computers

Output Devices

Most commonly computer monitors and printers, deliver information from the computer to a person

RAM (Random Access Memory)

Most of a computer's internal memory

System

An array of components that work together to achieve a common goal or multiple goals, by accepting input, processing it, and producing output in an organized manner

Work Order

An authorization to perform work for a specific purpose, such as constructing a part of an airplane

Enterprise Resource Planning (ERP)

An information system that supports different activities for different departments, assisting executives with planning and running different interdependent functions

Late Mover

An organization that adopts a technology or method after competitors have adopted it

First Mover

An organization that is the first to offer a new product or service

Process

Any manipulation of data, usually with the goal of producing information

Mainframe Computers

Are less powerful in computational speed and significantly less expensive than supercomputers

Efficiency =

Benefits/Costs

Manufacturing Resource Planning (MRP II)

Combines material requirements planning with other manufacturing-related activities to plan the entire manufacturing process, not just inventory

Parallel Processing is sometimes called

Multiprocessing

Location-Based Services

Offer the ability to accurately and efficiently gather various dimensions of consumer information, such as when and where they shop and what they buy, in a real0time environment

Input devices

Receive signals from outside the computer and transfer them into the computer

One way to increase market share is to lower prices, and the best way to lower prices is to...

Reduce costs

Information Technology

Refers to all the technologies that collectively facilitate construction and maintenance of information systems

Hardware

Refers to the physical components of computers and related digital devices such as tablets, scanners, and smartphones

Expert Systems

Rely on artificial intelligence techniques to support knowledge-intensive decision-making processes

Network Administrator

Responsible for acquiring, implementing, managing, maintaining, and troubleshooting local are networks throughout the organization and their interfaces with the wide area networks such as the Internet

Webmaster

Responsible for creating and maintaining the organization's website as well as its intranet and extranet

System Administrator

Responsible for managing an organization's computer operating systems

Database Administrator

Responsible for the databases and data warehouses of an organization

Procedures

Rules for achieving optimal and secure operations in data processing; procedures include priorities in dispensing software applications and security measures

Just-In-Time Manufacturing

Suppliers ship parts directly to assembly lines, saving the cost of warehousing raw materials, parts, and subassemblies

Cash Management Systems

Systems that deal specifically with cash

Radio Frequency Indentification

Technology that enables identification of an object (such as a product, vehicle, or living creature) by receiving a radio signal from a tag attached to the object

Parallel Processing

The capacity for several CPUs in one computer to process different data at the same time

Information Map

The description of data and information flow within an organization-shows a network of information subsystems that exchange information with each other and with the world outside the system

Electronic Funds Transfer

The electronic transfer of cash from an account in one back to an account in another bank. More than 80% of all payments of the U.S. government are made using EFT systems.

Enterprise Resource Planning Systems

The information they provide supports the planning of shipping resources such as personnel, funds, raw materials, and vehicles

Central Processing Unit (CPU)

The most important part of any computer; Accepts instructions and data and decodes and executes instructions, and store results (output) in memory for later display

Supercomputers

The most powerful computers at any given time, but are built especially for assignments that require arithmetic speed

Economic Order Quantity

The optimal quantity that allows a business to minimize overstocking and save cost, without risking understocking and missing production deadlines

Motherboard

The primary circuit board in a computer, also called the system board

Reengineering

The process by which an organization takes a fresh look at a business process and reorganizes it to attain efficiency. Almost always, reengineering includes the integration of a new or improved information system.

Brainstorming

The process of a group of colleagues meeting and working collaboratively to generate creative solutions and new ideas

Problem

The root cause of an undesirable situation

An SCM is an enterprise application because...

The systems that support each business process are connected to each other to form one large IS

Time to Market or Engineering Lead Time

The time between generating an idea for a product and completing a prototype that be manufactured

Mobile Application Developer

These positions require technical expertise relating to the various software development tools for mobile devices and programming languages such as Java, ASP, and SQL

Rapid Prototyping

Using software and special output devices to create prototypes to test design in three dimensions

A company achieves strategic advantage by...

Using strategy to maximize its strengths

Differentiation

Usually achieved through advertising and customer service

Bleeding Edge

When a failure occurs because an organization tries to be on the technological leading edge

Affiliate Program

An arrangement by which a website promotes sales for another website through a link to the seller's site, and for which the affiliate is compensated

Enhance existing products or services

Add to the product or service to increase its value to the customer

Several trends have made the use of information systems very important in business:

- The capacity of data storage devices has grown while their prices have decreased - The variety and ingenuity of software applications have increased - A "bring your technology with you" environment has become mainstream with the adoption of mobile computing, tablets, and cloud computing - Quick and reliable communication lines and access to the Internet and the web have created affordable software applications using Software as a Service implementation methodologies - The fast growth of the Internet has opened opportunities and encouraged competition in global markets - The convergence of technology innovations such as smart phones, mobile applications, organizational systems, and cloud storage systems have expanded both technology adoption and functionality - An increasing proportion of the global workforce is computer literate

The five basic components of the computer system within the IS:

-Input devices introduce data into the IS -The computer process data through the IS -Output devices display information -Storage devices store data and information -Networking devices and communications lines transfer data and information over various distances

A computer must handle four operations..

1. Accept data 2. Store data and instructions 3. Process data 4. Output data and/or information

The goal of financial managers, including controllers and treasures, is to manage an organization's money as efficiently as possible. They achieve this goal by...

1. Collecting payables as soon as possible 2. Making payments at the latest time allowed by contract or law 3. Ensuring that sufficient funds are available for day-to-day operations 4. Taking advantage of opportunities to accrue the highest yield on funds not used for current activities

Alliances provide two draws for customers:

1. Combined service is cheaper 2. One-stop shopping or using the same technology is cheaper

A system is more or less effective depending on..

1. How much of a particular goal it achieves 2. The degree to which it achieves better outcomes than other systems do

Eight easy ways to gain competitive advantage...

1. Reduce costs 2. Raise barriers to market entrants 3. Establish high switching costs 4. Create new products or services 5. Differentiate products or services 6. Enhance products or services 7. Establish alliances 8. Lock in suppliers or buyers

Information technology helps in the following manufacturing activities:

1. Scheduling plant activities while optimizing the combined use of all resources-machines, personnel, tooling, and raw and interim materials 2. Planning material requirements based on current and forecasted demands 3. Reallocating materials rapidly from one order to another to satisfy forecasted demand 4. Letting users manager inventories in real time, taking into consideration demand and the responsiveness of all work centers 5. Grouping wok orders by characteristics of items ordered, such as color and width of products 6. Considering the qualifications of each resource to accomplish its task

Questions to answer in a strategic information system idea-generating meeting

1. What would be the most effective way to gain an advantage? 2. Would more accessible or timely information to our employees, customers, or supplier help establish a significant advantage? If so, how? 3. Can an information system be developed that provides more accessible and timely information? 4. Will the development effort be economically justified? 5. What is the risk of not developing such a system? 6. Are alternative means of achieving the same goals available, and if so, how do they compare with the advantages and disadvantages of a new SIS? 7. Will technology add value to the customer's experience? If so, how?

Bit

A binary digit

Critical Mass

A body of clients that is large enough to attract many other clients

Transaction

A business event: A sale, a purchase, a payment, the hiring of a new employee, and the like

Byte

A combination of eight bits

Notebook computer (Laptop)

A compact, light, personal computer that can be powered by a rechargeable battery

Hardware

A computer and its peripheral equipment: input, output, and storage devices; hardware also includes data communication equipment

Data

A given or a fact which make take the form of a number, a statement, or a picture

Database

A large collection of electronic records

Bill of Materials

A list showing an explosion of the materials that go into production of an item. Used in planning the purchase of raw materials.

Servers

A midrange category of computers that are smaller than mainframes and less powerful

Clustering

A model of computing in which a "cluster" of smaller computers are linked via networks to use the computing power of multiple smaller computers, rather than one large supercomputer

Stylus

A pen-like pointing and drawing device

ROM (Read-Only Memory)

A smaller amount of a computers internal memory

Lock in Clients or Suppliers

A strategic initiative that can give an organization a competitive advantage by forcing suppliers or buyers to use their products or modes of operation. Possessing bargaining power (the leverage to influence buyers and suppliers) is key to this approach.

Create a Standard

A strategic move that can give an organization a competitive advantage

Management Information Systems

A system that supports one or more of the following activities: plan, control, or make decisions

Digital Systems

A system that uses two digits

E-Commerce

Buying and selling goods and services via telecommunications network

Geographic Information Systems

Can be used to tie data to physical locations

Data Processing

Changing and manipulating the data in the IS

Information System

Consists of all the components that work together to process data and produce information

Supply Chain Management (SCM)

Consists of monitoring, controlling, and facilitating supply chains

Supply Chain

Consists of three major phases: procuring raw materials, processing the materials into intermediate and finished goods, and delivering the goods to customers

Components of an Information System

Data Hardware Software Telecommunication People Procedures

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Input

Entering data into the IS

Transaction Processing Systems (TPS)

Examples include a point-of-sale machine, scanner, or camera

Switching Costs

Expenses incurred when a customer stops buying a product or service from one business and starts buying it from another

Information

Facts or conclusions that have meaning within a context

Business Intelligence Systems (BI)

ISs whoce purpose is to glean from raw data relationships and trends that might help organizations compete better

Strategic Information Systems

Information Systems that help seize opportunities; Can be developed from scratch or can evolve from an organizations existing IS

People

Information systems professionals and users who analyze organizational information needs, design, and construct information systems, write computer programs, operate the hardware, and maintain software

Decision Support Systems

Information systems specifically designed to help make decisions

Supply Chain Management Systems

Information systems that support activities such as marketing, document management, and monitoring customer portfolios, and are linked to become of large IS providing information on any stage of a business process

The Four Stages of Processing

Input Data Processing Output Storage

In general, every computer has these components:

Input devices Central processing unit Internal memory RAM Motherboard Storage Output devices

Data

Input that the system takes to produce information

Data Warehouses

Large databases that store transactional records

Internal Memory and Primary Memory

Located near the CPU and stores data and instructions just before and immediately after the CPU processes them

Computer-Aided Manufacturing (CAM)

Process the data to instruct machines, including robots, hot to manufacture the parts and assemble the product

Many IT professionals start their careers as _____________ and then are promoted to ______________.

Programmers/Analysts, System Analysts

Targeted Marketing

Promoting products and services to the people who are most likely to purchase them

Human resource management information systems help managers optimize...

Promotion and recruitment Training Evaluation Compensation Activities

Electronic Product Code

Provides much more information than the universal product code

Customer Relationship Management Systems facilitate...

Serving customers better and faster, as well as learning more about their experiences and preferences

Software

Sets of instructions that tell the computer how to take data in, how to process it, how to display information, and how to store data and information

Computer-Aided Design (CAD)

Special software used by engineers and designers that facilitates engineering and design work

Productivity

Specifically refers to the efficiency of human resources

Master Production Schedule

Specifies how production capacity is to be used to meet customer demands and maintain inventories

Closed System

Stands alone with no connection to another system: nothing flows in from another system; nothing flows out to another system

Storage

Storing data and information