management information systems test 2
Primary Key
-A column or group of columns that identifies a unique row in a table. ie. Student Number is the key of the Student table so given a value of Student Number, you can identify one row in the Student table. -Every table must have only one, primary key, but sometimes more than one column is needed to form a unique identifier
E-commerce revenue models: how firms earn revenue, generate profits, and produce superior return on investment; most companies rely on one, or a combination, of the following six revenue models.
-Advertising: Attract a large audience and advertise to them. Most widely used model in e-commerce, aids in providing "free" content to users. (98% of Google's revenue) -Sales: Amazon.com, Micropayments systems -Subscription: Netflix, Hulu, Xbox, Match.com, ancestry.co -Free/Freemium: Google, Pandora, Dropbox, Apple iClou -Transaction Fee: eBay, eTrade, Amazon Seller -Affiliate: Referrals, Community Site, Bloggers, etc.
analytical crm
-Analyze customer data output from operational CRM applications; base on data warehouses populated by operational CRM systems and the various customer touch points through the organization. -Calculates and tracks various customer related metrics --Churn Rate: number of customers who stop using or purchasing products or services from a company; indicates growth or decline of customer base. --Customer Lifetime Value (CLTV): based on the relationship between the revenue produced by a specific customer, the expenses (may include risks) incurred in acquiring and servicing that customer and the expected relationship term. -Analytical CRM uses a customer data warehouse and tools to analyze customer data collected from the firm's customer touch points and other sources (customer touch points also include social media and online review sites)
machine learning technique (clustering)
-Application of artificial intelligence (AI) that provides systems with the ability to automatically learn and improve from experience without being explicitly programmed.; typically computers require explicit instructions for every task but using Machine Learning algorithms they don't (can extrapolate/interpolate) -Internet Advertising today is largely driven by machine learning algorithms; machine Learning algorithms (learners) are trained using data (features).
Business intelligence in the enterprise
-At the foundation of decision support systems are business intelligence and business analytics infrastructure that supplies the data and the analytics tools for supporting decision making. -Business Intelligence (BI): infrastructure for warehousing/integrating/reporting/analyzing data that comes from business environment (internal and external). to present information to help executives/ managers make informed business decisions, Ie. database, data warehouse, data marts -Business Analytics: tools and techniques for analyzing data, ie. OLAP, data-mining, statistical/computational models -Business Intelligence Vendors: create business intelligence infrastructure and analytics platforms purchased by firm; leading Vendors include SAP, Oracle, IBM, SAS Institute, Microsoft
Business Process Management (BPM) & Reengineering
-Business processes: set of logically related tasks and behaviors that organizations develop overtime to produce specific business results and the unique way these activities are organized and coordinated. -Improve existing process quality (continuous improvement), replace old processes with new processeS -Adapt to changes in technology and business fundamentals: market (new customer category, change in customer characteristics), product Lines, supply Chain, company Policy & Organization, and business Environment -Business processes, information systems, and applications have different characteristics and components; business process need not relate to any IS but IS relates to at least one business process and every IS has at least one application because every IS has a software component.
Forms of E-Commerce
-Business-to-Business (B2B): transactions between businesses, such as those within a firms supply chain where one company purchases raw materials, parts, and components from another for their manufacturing process. -Business-to-Consumer (B2C): exchange of products and/or services provided by business organizations to consumers. (i.e. retail sales, the last step in the supply chain to deliver products/services to consumers). -Consumer-to-Consumer (C2C): marketplaces that provide consumers with platforms to interact with one another and conduct commerce. -Consumer-to-Business (C2B): individual consumer provides a product or service to an organization, ie. consumer writes a review or provides feedback for product development (contributes to creating value for the business if the business adopts their input; consumer is not a traditional "supplier")
Web 3.0: Semantic Web
-Collaborative effort led by W3C to add an additional layer of meaning to the existing web; goal is to further reduce human effort in searching for and processing information Making the web more "intelligent" and intuitive; increased communication and synchronization with computing devices -Leverage the "Internet of Things" (IoT) and increased cloud and mobile computing adoption.
Business to Business E-commerce
-Commercial transactions between firms; complex, involving a high degree of human intervention consuming resources and procurement requires significant overhead costs, which Internet and networking helps automate -Challenges: changing existing systems of procurement and implementing new Internet B2B solutions -Variety of Internet-enabled technology exist for B2B: electronic Data Interchange (EDI), private Industrial Networks (Private Exchanges), net Marketplaces, exchanges
Electronic Data Interchange (EDI)
-Computer-to-computer exchange of standard transactions such as invoices, purchase orders; major industries have EDI standards that define structure and information fields of electronic documents for that industry -More companies increasingly moving away from private networks to Internet for linking to other firms, ie. Procurement: -Businesses can now use Internet to locate most low-cost supplier, search online catalogs of supplier products, negotiate with suppliers, place orders, etc. -Companies use EDI to automate transactions for B2B e-commerce and continuous inventory replenishment; suppliers can automatically send data about shipments to purchasing firms, who can use EDI to provide production and inventory requirements and payment data to suppliers.
understanding customer
-Customer Life cycle: CRMs manage all interactions with customer through the four phases of customer life cycle. -Customer management process map: shows how a best practice for promoting customer loyalty through customer service would be modeled by customer relationship management software helps firms identify high-value customers for preferential treatment.
Capabilities of Database Management Systems
-Data Definition Capability: Specifies structure of database content, used to create tables and define characteristics of field (field properties) -Data Dictionary: Automated or manual file storing definitions of data elements and their characteristics -Query & Reporting: data Manipulation Language (to add, change, delete, retrieve data from database, ie. Structured Query Language (SQL)); DBMS typically have report generation capabilities for creating polished reports.
Enterprise-Wide Knowledge (Content) Management Systems
-Deals with all three types of knowledge and is a eneral-purpose, firm-wide system that collects, stores, distributes, and applies digital content and knowledge. -Repository for storing company documents and documenting processes; integrates organization collaboration websites, wiki-sites, and databases (warehouses) and includes capabilities for classifying, tagging, organizing, cataloging, and retrieving information.
developing systems
-Defining and understanding the steps involved aids in developing systems for facilitating decision making activities -High velocity automated decision-making is possible through algorithms, eliminating humans from the decision-making process, requiring monitoring to ensure proper regulation, ie. trading programs at electronic stock exchanges. -Algorithm: sequence of unambiguous rules and/or instructions for solving a problem, precisely defining steps for a highly structured decision us to obtain a required output for any legitimate input(s) in a finite amount of time.
Designing databases
-Design Process Identifies: relationships among data elements, redundant database elements, most efficient way to group data elements to meet the business requirements -Final database design with sample records: has four tables; the LINE_ITEM table is a join table that eliminates the many-to-many relationship between ORDER and PART.
Non-Relational Databases (i.e. NoSQL Database):
-Developed to handle large data sets of data that is not easily organized into structured tables, columns, and rows; provides mechanism for storage and retrieval of data that is modeled in means other than the tabular relations used in relational databases. -Use more flexible data model and therefore is easier to scale, data sets are stored across distributed machines (i.e. cluster computing), does not require extensive structuring, can manage large volumes of unstructured data such as social media, ie. AWS Amazon Simple DB
E-Commerce business models
-E-tailer: sells physical products directly to consumers or to individual businesses. Examples: Amazon, Overstock.com, etc. -Transactions Broker: Saves users money and time by processing online sales transactions and generating a fee each time transaction occurs, ie. expedia.com -Market Creator: provides a digital environment where buyers/sellers can search for/display products, and establish prices; can serve consumers or B2B e-commerce, generating revenue from transactions fees, ie. Ebay -Content Provider: creates revenue by providing digital content (news, music, photos, or video) over the web; customer pays to access the content, or revenue may be generated by selling advertising space, ie. Netflix, iTunes, etc. -Community Provider: provides an online meeting place where people with similar interests can communicate and find useful information. Examples: Facebook, Twitter, etc. -Portal: provides an initial point of entry to the web along with other specialized content and services. Examples: Google, Bing, Yahoo, etc. -Service Provider: provides Web 2.0 applications (photo/video sharing, and user-generated content and services); provides other services such as online data storage and backup, ie.Google Apps, Office 365, Cloud SaaS providers
how erps work
-Enterprise systems feature a set of integrated software modules and a central database that enables data to be shared by many different business processes and functional areas throughout the enterprise. -Firms implement ERP systems on a process and functional area basis to improve process execution and digitally enable the entire organization -Built around predefined business processes that reflect best practices; to implement, firms select functions of system they wish to use, map business processes to software processes, and use software's configuration tables for customizing (process Mapping à Draw.io, Microsoft Visio, etc.) -If software doesn't support/match business process, businesses can rewrite some portions (this can compromise information and process integration so changing business processes to match software processes is better alternative)
Enterprise Application Challenges
-Expensive to purchase and implement (average cost of ERP systems implementation is over $7 million and average completion time is over 17 months from analysis to full scale implementation) -Technology changes, business process changes, organization learning and changes (training and adoption) -Switching costs and dependence on software vendors -Data standardization, management, cleansing, etc.
Supply Chain Management Systems (SCM)
-Facilitate the management of a firm's relationships with direct and indirect suppliers, purchasing firms, distributors, and logistics companies; manage shared information related to orders, manufacturing/production, inventory levels, and delivery of products and services. -Moves the correct amount of product from source to point of consumption as quickly as possible and at the lowest possible cost. -May also be used to manage personnel resources (human capital) and suppliers may be contracting/consulting/temp agency firms
Databases Access via Web Applications:
-Firms use the Web to make information from their internal databases available to customers, employees, suppliers, and partners; middleware and other software make this possible. -Typical Web App configuration includes web Server (front-end / user interface), application Server (middleware), database Server (back-end, hosting DBMS) -Advantages of using Web for database access: ease of use of browser software, web interface requires few or no changes to database, inexpensive to add Web interface to system
Digital goods
-Goods that can be delivered over a digital network, ie. Music tracks, video, software, newspapers, books -Cost of producing first unit almost entire cost of product (marginal cost of 2nd unit is almost zero) -Costs of delivery over the Internet very low and marketing costs remain the same; pricing highly variable -Industries with digital goods are undergoing revolutionary changes (publishers, record labels, etc.)
data warehouse
-Hold summarized data from many sources organized by business function, ie. Online Transaction Processing (OLTP) databases that store transaction data, customer relationship management (CRM), and Enterprise Resources Planning (ERP). -Uuse a process called Extract Transform Load (ETL); data is mapped from the original sources to tables in the data warehouse, and undergoes transformations to achieve a structured format to enable reporting/analysis. -Include Enterprise Data Warehouse (provides decision support for an entire organization) and Operational Data Store (used for routine transaction recording or employee data reporting), and Data Marts (smaller data warehouses for specific business functions) -Data in a warehouse can be accessed but not altered (historical archive)
Customer relationship management "knowing the customer"
-In large businesses, there are too many customers and too many ways customers interact with the firm, so CRM integrates firm's customer-related processes, consolidates customer information from communication channels., and distributes it to the systems, stakeholders, and customer touch points across the enterprise. -Customer Touch Point (Contact Point): a method of interaction with the customer, such as telephone, email, customer service, etc. -Goal à Provide single enterprise view of customers, ie. : SalesForce, ZOHO CRM, FreshSales CRM -CRM systems examine customers from a multifaceted perspective; use a set of integrated applications to address all aspects of the customer relationship, including customer service, sales, and marketing.
exchanges
-Independently owned third-party Net marketplace; connect thousands of suppliers and buyers for spot purchasing and tpically provide vertical markets for direct goods for single industry (food, electronics -Proliferated during early years of e-commerce (many have failed); competitive bidding drove prices down and did not offer long-term relationships with buyers or services to make lowering prices worthwhile
Establishing an Information Policy:
-Information Policy: states organization's rules for organizing, managing, storing, sharing information Data administration: responsible for specific policies and procedures through which data can be managed as a resource Database administration: database design and management group responsible for defining and organizing the structure and content of databases and maintaining the database.
Private industrial networks:
-Large firm using extranet to link to its suppliers, distributors and other key business partners; owned By Buyer (ex. Apple à Foxconn) and could be a component within a firms Supply Chain Management System -Permits sharing of product design and development, marketing, production scheduling and inventory management, and unstructured communication (graphics and e-mail)
E-commmerce marketing
-Largest impact of e-commerce on marketing industry. ; internet provides marketers with new ways of identifying and communicating with customers, reaching large audiences -Long Tail Marketing: Ability to market goods and services to very small online audiences, due to reduced costs of reaching those small market segments. (tails of a bell curve) -Behavioral Targeting: Tracking online behavior (click-streams) of individuals on thousands of sites to better understand their interests and intentions -Advertising formats include search engine marketing, display ads, rich media, and e-mail
views
-Logical View: presents data as they would be perceived by end users or business specialists. (user friendly view of data) -Physical View: shows how data are organized and structured on physical storage media. (internal design and data structure) -HR database with multiple views: a single HR database provides many different views of data depending on the user's information requirements
big data
-Massive quantities of structured, semi-structured, and unstructured data collected by organizations (internally and externally) that can be mined (data mining) for information and used in machine learning projects, predictive analytic modeling, and other advanced analytics applications. -Systems that process and store big data have become a common components of data management (BI) infrastructures in organizations and big datasets provide companies with opportunities to identify patterns and gain insights -Very large databases and systems require special capabilities and tools to analyze large quantities of data and access data from multiple sources.
Analytical Tools & Methods
-Once data is gathered, tools are required to consolidate, analyze, and provide access to vast amounts of data to help users make better business decisions; tools and methods identify relationships, patterns, and trends in data and predictive analytics methods can predict future trends and behaviors. -Tools and methods include: multidimensional Data Analysis (OLAP), data Mining (ie. Cluster Analysis), machine Learning, text mining, web mining
More comprehensive CRMs have modules for
-Partner Relationship Management (PRM): integrating lead generation, pricing, promotions, order configurations, and availability. (i.e. Food Lion and Proctor & Gamble) and tools to assess partner's performance -Employee Relationship Management (ERM): setting objectives, employee performance management, performance-based compensation, employee training, etc.
Web 2.0
-Second generation of the internet, post-dotcom bubble burst, which emphasizes user content generation tools and technologies such as social networking sites, blogs, wiki's and cloud computing SaaS. -Key features of Web 2.0 services: collaboration, interactivity, real-time User Control, social Participation (sharing), user-Generated Content -Most popular Web 2.0 service: Social Networking- fastest growing area of e-commerce revenues; users "mine" for friends within networks, and social networking sites sell banner ads, user preference information, and music/videos
cluster Analysis
-Set of methodologies for automatic classification of samples into a number of groups using a measure of association so that the samples in one group are similar and samples belonging to different groups are not similar. -Input (set of samples and a measure of similarity or dissimilarity) and output (number of groups or clusters that form a partition or a structure of partitions of the original data set) -An additional result of cluster analysis is a generalized description of every cluster, important for deeper analysis of a dataset's characteristics, ie. identifying and describing market segments based on customer characteristics
Net marketplaces (e-hubs)
-Single market for many buyers and sellers; industry-owned or owned by independent intermediary and generate revenue from transaction fees or other services -Use prices established through negotiation, auction, RFQs, or fixed prices and may focus on direct or indirect goods or be vertical or horizontal marketplaces -More transaction-oriented and less relationship-oriented than private industrial networks.
other ecommerce
-Social Shopping Sites: swap shopping ideas with friends (Ex. Pinterest) -Wisdom of Crowds (theory) & Crowdsourcing (application): ;arge numbers of people can make better decisions about topics and products than a single person -Prediction Markets: peer-to-peer betting markets on specific outcomes (sports, elections, sales figures, designs for new products)
Database Management System (DBMS)
-Software allowing organizations to centralize data, manage data efficiently, and provide access to various data sources inside and outside of organization -Interfaces between applications and physical data files, separates physical and logical views of data, and eliminates the need for the end user to understand where and how the data is stored and organized. -Solves problems associated with traditional file processing approach: controls redundancy, eliminates inconsistency and improves data integrity, uncouples programs and data, and enables organizations to centrally manage data and improve data security
data types
-Structured Data: adheres to a pre-defined data model so is more straightforward to analyze; conforms to a tabular format with relationships between the different rows and columns such as excel files or SQL databases. -Unstructured Data: does not have a predefined data model or organization, is typically text-heavy, but may contain dates, numbers, and facts, resulting in irregularities that make it difficult to understand using traditional programs, ie audio, video files or No-SQL databases. -Semi-Structured Data: does not conform with the formal structure of data models associated with relational databases or other forms of data tables, but contains markers to separate semantic elements and enforce hierarchies of records and fields (self-describing structure), ie JSON and XML -Metadata: data about data, providing additional information about a specific set of data
data mining
-Subset of business analytics and refers to exploring an existing large dataset to unearth previously unknown patterns, relationships and anomalies to find new insights that we weren't necessarily looking for and then infer rules to predict future behavior. -More discovery driven than OLAP (passive versus active analysis) -Types of information obtainable from data mining: associations (occurrences linked to single events; if-then), sequences (events linked over time (if this, and this, then), classification (recognizes patterns of groups to items (classify loan applicants by risk), cluster analysis (finds groupings within data), and forecasting (uses existing values to forecast future values)
SCM Systems Software
-Supply Chain Planning Systems: model existing supply chain, demand planning (forecasting, aggregate sales planning), optimize sourcing (manufacturing plans), establish inventory levels (inventory control, economic order quantity), ifentifying transportation modes (capacity planning, route planning) -Supply Chain Execution Systems: manages the flow of products through distribution centers and warehouses, routing and down-stream logistics management, facilitates/tracks the delivery of product to consumer.
Online Analytical Processing (OLAP)
-Supports multidimensional data analysis, viewing data using multiple dimensions so each aspect of information (product, pricing, cost, region, time period) is different dimension. -Enables users to obtain answers to ad-hoc questions in a rapid amount of time like how Pivot Tables/Charts work in Excel, ie. How many washers were sold in the East region during the month of June when compared against other regions?
Enterprise Applications
-Systems for linking the entire enterprise, spanning across functional areas., executing business processes across firm, including all levels of managemen, improving productivity and flexibility.
Global Supply Chain Management Issues
-Typically span greater geographic distances and time differences leading to more complex pricing and regulatory issues (taxes, restrictions, tariffs, transportation, etc.) -Participants from different countries so different performance and quality standards and different legal requirements, tax codes, import/export limits. (internet helps companies manage many aspects of global supply chains) -Outsourcing, trade wars
e-commerce
-Use of the Internet and Web to conduct business and digitally enable transactions (1994 was year of the first online retail transaction and has grown exponentially since, even during periods of economic recession; companies that survived the dot-com bubble burst now thrive) -Drastically reshaped the global marketplace, but E-Commerce revolution is still in its early stages
Supply Chain:
-network of organizations and processes for procuring raw materials, transforming them into products, and distributing the products -Upstream Supply Chain: firm's suppliers, supplier's suppliers, and processes for managing relationships with them. -Downstream Supply Chain: organizations and processes responsible for delivering products to customers.
CRM Systems Software:
-packages range from niche tools to large-scale enterprise applications, but they typically include tools for -Sales Force Automation (SFA) (sales prospects and contact information, and sales quote generation capabilities), customer Service (assigning and managing customer service requests), and marketing (capturing prospect and customer data, scheduling and tracking direct-marketing campaigns) -CRM software capabilities: major CRM software products support business processes in sales, service, and marketing, integrating customer information from many different sources.
text mining
-transforming large unstructured text data into meaningful information; uses AI (data mining & machine learning) to process data and generate insights, enabling companies to make decisions, ie. From historical email records, call center transcripts, legal cases, patent descriptions, books, papers/reports, etc. -Sentiment Analysis: mines emails, blogs, online messages, tweets, social media posts, etc. to detect and analyze opinions.
Entity relationship diagrams:
-used by database/system designers to document data models; shows the relationships between the entities SUPPLIER, PART, LINE_ITEM, and ORDER that might be used to model the database. -Cardinality symbols: mandatory single, optional single, mandatory many, optional many
Referential integrity
-used by relational databases to ensure that relationships between coupled tables (related entities) remain consistent. Example 1: When one table has a foreign key that points to another table, you may not add a record to the table with foreign key unless there is a corresponding record in the linked table (original primary key record). Example 2: You cannot delete a record from a table if records in a related secondary table exist (i.e. records reference first table via foreign key)
EA structure
Automate processes that span multiple business functions and organizational levels and may extend outside the organization. Intranets and Extranets are supplementing technologies to enable Enterprise Applications inside and outside of organizations.
Decision making and information systems
Business value of improved decision making: improving hundreds/thousands of "small" decisions adds up to a large annual value for the business
traditional file processing
Encourages each functional area in an organization to develop specialized applications to facilitate business processes; each application then requires a unique data file which is a subset of the master file and leads to data redundancy and inconsistency, processing inflexibility, and wasted storage resources.
Micropayments
Financial transaction involving a relatively small sum (typically $0.01 to ~$5.00) of money typically occurring through an online platform/site. Frequently associated with the sale of virtual/digital goods in online games, commonly involving an in-game currency or service purchased with real world money and only available within the online game (in-game purchase)
Enterprise Resource Planning Systems (ERP)
Integrate data from key business processes and different firm functions into a single system (central repository) Speeds communication of information throughout the firm, enabling greater flexibility in responding to customer requests and great accuracy in order fulfillment and enables managers to assemble overall view of operations. Suite of integrated software modules and a common central database; collects data from multiple divisions of firm for use in nearly all the firm's internal business activities. Information entered in one process (application component) is immediately available for other processes.
Business Value of SCM Systems
Matchup supply to demand, reduce inventory level, improve delivery service, speed product time to market, use assets more effectively, reduced supply chain costs so increased profitability (total supply chain costs can be 75%+ of operating budget) and increased sales
future internet driven supply chain:
Operates like a digital logistics nervous system, providing multidirectional communication among and between firms, and e-marketplaces so that entire networks of supply chain partners can immediately adjust inventories, orders, and capacities.
Ensuring data quality
Poor Data Quality: major obstacle to successful customer relationship management Data Quality Problems: caused by redundant and inconsistent data produced by multiple systems and data input errors Data Quality Audit: structured survey of the accuracy and completeness of data Data Cleansing: detects and corrects incorrect, incomplete, improperly formatted, and redundant data
Foreign Key:
Primary key used in a secondary (foreign) table as a look-up field to identify records in its original table.
knoweldge management
Process for creating, storing, transferring and applying knowledge that increases the ability of organizations to learn form their environment to conduct routine business processes and decision making Facilitated by a collection of systems and processes that support general knowledge collection and management; format and in-format "systems" or applications. Knowledge transfer: the distribution of organization knowledge
supervised v. unsupervised learning
Supervised Learning ("predictive"-build a predictive model from examples of data with known outcomes and thenpredict outcomes for unknown future examples) vs. unsupervised Learning ("descriptive"- discover structures in data for which outcomes are not known)
Database:
collection of data organized to serve many applications by centralizing data and controlling redundant data
operational crm
customer-Facing Applications, ie. sales force automation, call center and customer service support, and marketing automation
entity and attribute
entity: anything of interest (person, place, thing) to user attribute: characteristic of interest that describes an entity.
Key Concepts In E-Commerce:
internet has created a digital marketplace where millions of people globally are able to exchange massive amounts of information directly, instantly, and for free.
data lake
large pool of unprocessed data stored in its original format; highly scalable systems that hold structured, semi-structured, and unstructured data in their raw format so does not require pre-defined data model or prior knowledge of the data analysis; assumes that analysis will happen later
Relational DBMS
most prolific database model; organizes data into two-dimensional tables (relations/files) and each table contains data on entity and attributes (one table for each entity (Customer, Supplier, etc.) -Key field: field used to uniquely identify each record
Database Normalization:
process of structuring a relational database in accordance with a series of normal forms in order to reduce data redundancy and improve data integrity; creates small, stable, yet flexible and adaptive data structures from complex groups of data.
kinds of knowledge
stuctured (structured text documents, invoices, forms, reports), semi-Structured (emails, messages, images), and tacit Knowledge (unstructured) (in the heads of employees, rarely documented)
data mart
subset of a Data Warehouse; summarized or highly focused portion or a firm's data for use by a specific population of users and focuses on a single subject or line of business, drawing data from few relevant sources.
Key Enterprise Application Trends
transitioning to cloud-based, software-as-a-service models and making applications more flexible, web-based, and easy to integrate with other systems.
web mining
using data mining to extract information directly from the Web by extracting it from Web documents and services, Web content, hyperlinks and server logs; looks for patterns in Web data by collecting and analyzing information in order to gain insight into trends, the industry, and users in general.
