ITC Test 1

primary value activities

Inbound logistics-Acquires raw materials and resources, and distributes Operations-Transforms raw materials or in puts into goods and services Outbound logistics-Distributes goods and services to customers Marketing and sales-Promotes, prices, and sells products to customers Service-Provides customer support

ebusiness

Includes ecommerce along with all activities related to internal and external business operations

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 analyzes patterns, trends, and relationships for strategic decision making

business facing process

Invisible to the external customer but essential to the effective management of the business

operationalized analytics

Makes analytics part of a business process

switching cost

Manipulating costs that make customers reluctant to switch to another product

online analytical processing

Manipulation of information to create business intelligence in support of strategic decision making

efficiency MIS metrics

Measure the performance of MIS itself, such as throughput, transaction speed, and system availability

metrics

Measurements that evaluate results to determine whether a project or process is meeting its goals

interactivity

Measures advertising effectiveness by counting visitor interactions with the target ad, including time spent viewing the ad, number of pages viewed, and number of repeat visits to the advertisement.

effectiveness MIS metrics

Measures the impact MIS has on business processes and activities, including customer satisfaction and customer conversation rates

decision support system

Models information to support managers and business professionals during the decision-making process

product differentiation

Occurs when a company develops unique differences in its products or services with the intent to influence demand

personalization

Occurs when a company knows enough about a customer's likes and dislikes that it can fashion offers more likely to appeal to that person

first mover advantage

Occurs when an organization can significantly impact its market share by being first to market with a competitive advantage

information technology's impact on business operations

Organizations typically operate by functional areas or functional silos Functional areas are interdependent IT enables business success and innovation

chief information officer

Oversees all uses of IT and ensures the strategic alignment of IT with business goals and objectives

sustaining technology

Produces an improved product customers are eager to buy

World Wide Web (WWW)

Provides access to Internet information through documents including text, graphics, audio, and video files that use a special formatting language called HTML - hypertext markup language

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

customer facing process

Results in a product or service that is received by an organization's external customer

loyalty program

Rewards customers based on the amount of business they do with a particular organization

Business Tools for Analyzing Business Strategies

SWOT analysis, the five forces model, the three generic strategies, value chain analysis

artificial intelligence

Simulates human intelligence such as the ability to reason and learn

knowledge

Skills, experience, and expertise coupled with information and intelligence that creates a person's intellectual resources

operational business processes

Static, routine, daily business processes such as stocking inventory, checking out customers, or daily opening and closing processes

Hypertext Transport Protocol

The Internet protocol Web browsers use to request and display Web pages using URL - universal resource locator

mass customization

The ability of an organization to tailor its products or services to the customers' specifications across globally

buyer power

The ability of buyers to affect the price of an item

business process modeling

The activity of creating a detailed flow chart or process map of a work process showing its inputs, tasks, and activities, in a structured sequence

critical success factors

The crucial steps companies make to perform to achieve their goals and objectives and implement strategies Create high-quality products, Retain competitive advantages, Reduce product costs, Increase customer satisfaction, Hire and retain the best professionals

clickstream analytics

The process of collecting, analyzing and reporting aggregate data about which pages a website visitor visits—and in what order.

competitive intelligence

The process of gathering information about the competitive environment to improve the company's ability to succeed

key performance indicators

The quantifiable metrics a company uses to evaluate progress toward critical success factors

supplier power

The suppliers' ability to influence the prices they charge for supplies

website ebusiness analytics

Uses clickstream data to determine the effectiveness of the site as a channel-to- market.

website traffic analytics

Uses clickstream data to determine the efficiency of the site for the users and operates at the server level.

intelligent system

Various commercial applications of artificial intelligence

value chain analysis

Views a firm as a series of business processes that each add value to the product or service

report

a document containing data organized in a table, matrix, or graphical format allowing users to easily comprehend and understand information

snapshot

a view of data at a particular moment 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

internet of things

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

core drivers of the information age

data, information, business intelligence, knowledge

SWOT analysis

evaluates an organization's strengths, weaknesses, opportunities, and threats to identify significant influences that work for or against business strategies

unstructured data

not defined and does not follow a specified format (big data ex: satelite images, social media data, video data, text message)

business process characteristics

processes have internal and external use, process is cross-departmental, processes occur across organizations, processes are based on how work is done in the organization, Every process should be documented and fully understood by everyone participating in the process, Processes should be modeled to promote complete understanding

data

raw facts that describe the characteristics of an event or object

machine-to-machine

refers to devices that connect directly to other devices

chief knowledge officer

responsible for collecting, maintaining, and distributing company knowledge

chief privacy officer

responsible for ensuring the ethical and legal use of information

structured data

stored in a traditional system such as a relational database or spreadsheet (big data ex: financial data, sensor data, accounting data, point of sale data)

decision making process

strategic, managerial, operational

Predictive Analytics

techniques that create models indicating the best decision to make or course of action to take (ex: Airline using past purchasing data as inputs into a model that recommends the best pricing strategy across all flights allowing the company to maximize revenue.)

Descriptive Analytics

techniques that describe past performance and history (ex: creating a report that includes charts & graphs that explains data)

business processes

that require less time and effort or can be eliminated.

information age

the present time, during which infinite quantities of facts are widely available to anyone who can use a computer

analytics

the science of fact-based decision making (descriptive, predictive, prescriptive)

clickstream data

tracks the exact pattern of a consumer's navigation through a website can reveal: # of page reveals, patterns of websites visited

Managerial decision-making challenges

*Analyze large amounts of information *Apply sophisticated analysis techniques *Make decisions quickly

Generating marketing revenue on the Internet

*Associate program(affiliate program)-Businesses generate commissions or royalties *Banner ad-Box running across a webpage that contains advertisements *Pop-up ad-A small webpage containing an advertisement *Viral marketing-A technique that induces websites or users to pass on a marketing message

5 most common categories of AI

*Expert system: Computerized advisory programs that imitate the reasoning processes of experts in solving difficult problems *neural network: Attempts to emulate the way the human brain works *genetic algorithm: An artificial intelligent system that mimics the evolutionary, survival-of- the-fittest process to generate increasingly better solutions to a problem *intelligent agent: Special-purpose knowledge- based information system that accomplishes specific tasks on behalf of its users *virtual reality: A computer-simulated environment that can be a simulation of the real world or an imaginary world

four characteristics of big data

*Variety - Different forms of structured and unstructured data *Veracity - The uncertainty of data, including biases, noise, and abnormalities *Volume - The scale of data *Velocity - The analysis of streaming data as it travels around the Internet

management information systems

A business function, like accounting and human resources, 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 of a product or service that customers have come to expect and entering competitors must offer the same for survival

business process model

A graphic description of a process, showing the sequence of process tasks, which is developed for a specific

business strategy

A leadership plan that achieves a specific set of goals or objectives (developing new products, entering new markets, increasing customer loyalty, increasing sales)

disruptive technology

A new way of doing things that initially does not meet the needs of existing customers

ebusiness model

A plan that details how a company creates, delivers, and generates revenues on the Internet

benchmarking

A process of continuously measuring system results, comparing those results to optimal system performance (benchmark values), and identifying steps and procedures to improve system performance

competitive advantage

A product or service that an organization's customers place a greater value on than similar offerings from a competitor

executive information system

A specialized DSS that supports senior level executives within the organization (Granularity, Visualization, Digital dashboard)

business process

A standardized set of activities that accomplish a specific task, such as a specific process

web 1.0

A term to refer to the WWW during its first few years of operation between 1991 and 2003

heat map

A two-dimensional representation of data in which values are represented by colors.

machine learning

A type of artificial intelligence that enables computers to both understand concepts in the environment, and also to learn

intermediary

Agents, software, or businesses that provide a trading infrastructure to bring buyers and sellers together

web browser

Allows users to access the WWW

project/process

An activity a company undertakes to create a unique product, service, or result as part of its operations.

business process reengineering

Analysis and redesign of workflow within and between enterprises

business process improvement

Attempts to understand and measure the current process and make performance improvements accordingly

benchmark

Baseline values the system seeks to attain

transaction processing system

Basic business system that serves the operational level and assists in making structured decisions

ecommerce

Buying and selling of goods and services over the Internet

online transaction processing

Capturing of transaction and event information using technology to process, store, and update

dynamic report

Changes automatically during creation

supply chain

Consists of all parties involved in the procurement of a product or raw material

Strategic Support Systems

Consolidation, Drill-down, Slice-and-dice, Pivot

common ebusiness forms

Content providers, infomediaries, online marketplaces, portals, service providers, transaction brokers

static report

Creating once based on data that does not change

information

Data converted into a meaningful and useful context

support value activities

Firm infrastructure-Includes the company format or departmental structures, environment, and systems • Human resource management-Provides employee training, hiring, and compensation • Technology development-Applies MIS to processes to add value • Procurement-Purchases inputs such as raw materials, resources, equipment, and supplies

rivalry among existing competitors

High when competition is fierce in a market and low when competitors are more complacent

threat of new entrants

High when it is easy for new competitors to enter a market and low when there are significant entry 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

digital darwinism

Implies that organizations that cannot adapt to the new demands placed on them for surviving in the information age are doomed to extinction