MIS
business tools for analyzing business strategies
SWOT analysis, the five forces model, the three generic strategies, and value chain analysis
Business Process Rengineering Model
Set project scope ---> study competition ---> create new processes ---> implement solution
physical view of information
The physical storage of information on a storage device.
the internet
a massive network that connects computers all over the world and allows them to communicate with one another
fuzzy logic
a mathematical method of handling imprecise or subjective information-- the basic approach is to assign values between 0 and 1 vague or ambiguous information
Information integrity
a measure of the quality of information.
disruptive technology
a new way of doing things that initially does not meet the need of existing customers--tends to open new markets and destroy old ones-- new investments-- typically enter at the low end of the marketplace
business process patent
a patent that protects a specific set of procedures for conducting a particular business activity
stakeholder
a person or group that has an interest or concern in an organization-- drive business strategies
business model
a plan that details how a company creates, delivers, and generates revenues
ebusiness model
a plan that details how a company creates, delivers, and generates revenues on the internet
social networking
a practice-- expanding your business and/or social contacts by constructing a personal network--provide the ability to create and maintain a profile that serves as an online identity-- provides the ability to create connections between other people within the network
foreign key
a primary key of one table that appears as an attribute in another table and acts to provide a logical relationship between the two tables-- Creating logical relationships between tables allows managers to search the data and turn it into useful information
benchmarking
a process of continuously measuring system results, comparing those results to optimal system performance, and identifying steps and procedures to improve system performance
Extraction, transformation, and loading (ETL)
a process that extracts information from internal and external databases, transforms it using a common set of enterprise definitions, and loads it into a data warehouse-- The data warehouse then sends portions (or subsets) of the information to data marts
Information cleansing or scrubbing
a process that weeds out and fixes or discards inconsistent, incorrect, or incomplete information.
instant messaging (IMing)
a service that enables instant or real-time communication between people
collaboration system
a set of tools that supports the work of teams or groups by facilitating the share and flow of information
a model
a simplified representation or abstraction of reality-- help managers calculate risks, understand uncertainty, changes variables, and manipulate time to make decisions
Machine-generated data
a sources of structured data-- created by a machine without human intervention-- includes sensor data, point-of-sale data, and web log (blog) data.
Human-generated data
a sources of structured data--data that humans, in interaction with computers, generate-- includes input data, click-stream data, or gaming data.
executive information systems (EIS)
a specialized DSS that supports senior-level executives and unstructured, long-term, non routine decisions requiring judgement, evaluation, and insight-- no right or wrong answers, only efficient and effective ones
business process
a standardized set of activities that accomplish a specific task, such as processing a customer's order-- once a firm identifies the industry it wants to enter it will choose the business process required to create its product or service
BPN activity
a task in a business process-- any work that is being performed in a process (rounded-corner rectangle)
project
a temporary activity a company undertakes to create a unique product, service, or result-- examples is construction on a new subway station
Web 1.0 (or Business 1.0)
a term to refer to the world wide web during its first few years of operation between 1991 and 2003
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
google glass
a wearable compute with an optical head-mounted display (OHMD)-- adds an element of augmented reality to the user's world by displaying information in a smart phone in a hands free format
real simple syndication RSS
a web format used to publish frequently updated works, such as blogs, news headlines, audio, and video, in a standardized format -- feed includes full or summarized text-- News websites, blogs, and podcasts use RSS.. constantly feeding news to consumers instead of having them search for it
mashups
a website or app that uses content from more than one source to create a completely new product or service-- The term is typically used in the context of music
search engine
a website software that finds other pages based on keyword matching-- similar to Google
virtual workplace
a work environment that is not located in any one physical space-- integrates hardware, people and online processes
the internet of things (IoT)
a world where interconnected, internet-enable devices or "things" can collect and share data without human intervention
the six-step decision-making process
1. problem identification 2. data collection 3. solution generation 4. solution test 5. solution selection 6. solution implementation
clickstream data
able to observe the exact pattern of a consumer's navigation through a site-- metrics can include the length of stay on a website, number of abandoned registrations, and the number of abandoned shopping carts
five common characteristics of high-quality information
accurate, complete, consistent, timely and unique
primary value activies
acquire raw maters and manufacture, deliver, market, sell, and provide after-sales services
intermediaries
agents, software, or businesses that provide a trading infrastructure to bring buyers and sellers together
videoconfrence
allows people at two or more locations to interact via two-way video and audio transmissions simultaneously as well as share documents, data, computer displays, and white boards
A relational database management system
allows users to create, read, update, and delete data in a relational database
social bookmarking
allows users to share, organize, search, and manage bookmarks-- StumbleUpon is popular social bookmarking website that allows users to locate interesting websites based on their favorite subjects
business-facing processes
also called back-office processes-- invisible to the external customer but essential to the effective management of the business-- includes goal setting, day-to-day planning, giving perfomance feedback and rewards, and allocating resources
customer-facing processes
also called front-office processes-- result in a product or service received by an organization's external customer-- include fulfilling orders, communication with customers, and sending out bills and marketing information
social network
an application-connects people by matching profile information-- providing individuals with the abilit to network is by far one of the greatest advantages of Business 2.0
dynamic catalog
an area of a website that stores information about products in a database
A data-driven website
an interactive website kept constantly updated and relevant to the needs of its customers using a database-- Data-driven capabilities are especially useful when a firm needs to offer large amounts of information, products, or services.
native advertising
an online marketing concept in which the advertiser attempts to gain attention by providing content in the context of the user's experience in terms of its content, format, style, or placement
Porter's Five Forces Model
analyzes the competitive forces within the environment in which a company operates to assess the potential profitability in an industry-- the purpose is to combat the competitive forces by identifying opportunities, competitive advantage, and competitive intelligence-- The 5 Parts- threat of sub, buyer power, threat of new entrants, supplier power, and rivalry
Business-to-consumer (B2C)
any business that sells its products or services directly to consumers online-- forms of B2C operations.. brick and mortar business, click and mortar business, and virtual business
closed source
any proprietary software licensed under exclusive legal right of the copyright holder
open source
any software whose source code is made available free for any third party to review and modify-- Business 2.0 is capitalizing on open source software
BPN event
anything that happens during the course of a business process (circle)
Consumer-to-business (C2B)
applies to any consumer who sells a product or service to a business on the internet-- example is priceline.com
Consumer-to-consumer (C2C)
applies to customers offering goods and services to each other on the internet-- craigslist and eBay are two examples
Attributes (also called columns or fields)
are the data elements associated with an entity
structured query language (SQL)
asks users to write lines of code to answer questions against a database-- MIS professionals have the skills required to code SQL
business process improvement
attempts to understand and measure the current process and make performance improvements accordingly
Business-to-Business (B2B)
business buying from and selling to each other over the internet-- 80% of all online business
core processes
business processes such as manufacturing goods, selling products, and providing service that make up the primary activities in a value chain
ebusiness models catergories
business-to-business, business-to-consumer, consumer-to-business, and consumer-to-consumer
collective intelligence
collaborating and tapping into the core knowledge of all employees, partners, and customers-- knowledge can be a real competitive advantage for an organization
wiki
collaborative web page that allows users to add, remove, and change content, which can be easily organized and reorganized as required
search engine optimization (SEO)
combines art with science to determine how to make URLs more attractive to search engines resulting in higher search engine ranking-- the better the SEO, the higher the ranking-- critical bc most people only look at the first few pages
machine to machine (M2M)
commonly associated with the internet of things, it refers to devices that connect directly to other devices
A data dictionary
compiles all of the metadata about the data elements in the data model-- Looking at a data model along with reviewing the data dictionary provides tremendous insight into the database's functions, purpose, and business rules.
semantic web
component of Web 3.0-- describes things in a way that computers can understand
semistructured decisions
considered a managerial decision-- there are few established processes to help evaluate potential solutions, not nearly enough to lead to a definite decisions-- for example, decisions about producing new products or changing employee benefits
structured decisions
considered operational decisions-- established processes offer potential solutions-- made frequently and are almost repetitive in nature-- affect short-term business strategies-- examples would be reordering inventory and creating employee schedules
supply chain
consists of all parties involved, directly or indirectly, in obtaining raw maters or a product-- in a typical supply chain a company will be both a supplier (to customers) and a customer (to other suppliers)
explicit knowledge
consists of anything that can be documented, archived, and codified, often with the help of MIS-- examples are assets scuch as patents, trademarks, business plans, etc.
open systems
consists of nonproprietary hardware and software based on publicly know standards that allow third parties to create add-on products to plug into or interoperate the the system-- examples would be iPods and drawing software
data mart
contains a subset of data warehouse information-- To distinguish between data warehouses and data marts, think of data warehouses as having a more organizational focus and data marts as having a functional focus
source code
contains instructions written by a programmer specifying the actions to be performed by the computer software
application programming interface (API)
content used in a mashup is source from this-- a set of routines, protocols, and tools for building software applications-- A programmer then puts these building blocks together
dynamic process
continuously changing-- provides business solutions to ever-changing business operations-- as the business and its strategies change, so do the dynamic processes-- examples include managing layoffs of employees, and canceling business travel due to weather
podcasting
converts an audio broadcast to a digital music player-- can increase marketing reach and build customer loyalty
virtual reality
AI category-- a compute simulated environment that can be a simulation of the real world or an imaginary world-- fast growing area of artificial intelligence-- examples is virtual surgery
neural networks
AI category-- also called an artificial neural network-- attempts to emulate the way the human brain works--used to review loan applications
expert systems
AI category-- computerized advisory program that imitate the reasoning processes of experts in solving difficult problems (ex. playing chess)
intelligent agents
AI category-- special purpose, knowledge-based information system that accomplishes specific tasks on behalf of its users-- examples is a shopping bot
genetic algorithms
AI category--mimics the evolutionary, survival-of-the-fittest process to generate increasingly better solutions to a problem-- investment companies in trading decisions
decision support systems (DSSs)
model information using OLAP-- provides assistance in evaluation and choosing among different courses of action-- the TPSs supply transactional data to a DSS. The DSS then summarizes and aggregates the information from the different TSPs, which assist managers in making semistructured decisions--managerial data
workflow control systems
monitor processes to ensure tasks, activities, and responsibilities are executed as specified
knowledge management (KM)
most common form of collective intelligence-- involves capturing, classifying, evaluation, retrieving, and sharing information assets in a way that provides context for effective decisions and actions-- primary objective is to be sure that a company's knowledge of facts, source of information, and solutions are readily available to all employees whenever needed
reputation system
most popular form of user-generated content--buyers post feedback on sellers-- eBays buyers do this to the sellers
Unstructured data
not defined, does not follow a specified format, and is typically free-form text such as emails, Twitter tweets, and text messages-- accounts for about 80 percent of the data that surrounds us
Information integrity issues
occur when a system produces incorrect, inconsistent, or duplicate data-- can cause managers to consider the system reports invalid and will make decisions based on other sources
bottlenecks
occur when resources reach full capacity and cannot handle any additional demands-- limit throughput and impede operations-- created by rush and customer order-- removed by streamlining as well as redundancy
first-mover advantage
occurs when a company can significantly increase its market share by being first with a new competitive advantage (apple with the iPod)(FedEx with its customer self-service software)
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-- say by tailoring its website to individuals or groups based on profile information or prior transactions-- used by Amazon to create a unique portal for each customer
real-time communication
occurs when a system updates information at the same rate it receives it
redundancy
occurs when a task or activity is unnecessarily repeated-- example, the sales and accounting department checking a customers credit
Information inconsistency
occurs when the same data element has different values
switching cost
one way to reduce buyer power-- costs that make customers reluctant to switch to another product or service
web conferencing
or a webinar-- blends videoconferencing with document sharing and allows the user to deliver a presentation over the web to a group of geographically dispersed people
business process modeling
or mapping-- the activity of creating a detailed flowchart or process map of a work process that shows inputs, tasks, and activities in a structured sequence
user-contributed content
or user-generated content-- is created and updated by many user for many users-- netflix and amazon both use this to drive their recommendations tools-- companies are embracing it because it helps with everything from marketing to product development
blog
or web log-- an online journal that allows users to post their own comments, graphics, and video-- let writers communicate and readers respond on a regular basis-- customizable interface that does not require any programming.
sales
performs the function of selling goods or services- focuses on moving goods or services into the hands of consumers (potential customer, sales report, commission, and customer support data)
sustaining technology
produces an improved product customers are eager to buy-- like a faster car or larger hard drive-- tend to provide us with better, faster, and cheaper products in established markets-- existing investments
visualization
produces graphical displays of patterns and complex relationships in large amounts of data
real-time systems
provide real-time information in response to requests-- Many organizations use this to uncover key corporate transactional information
metadata
provides details about data--metadata for an image could include size, resolution, and date created
data
raw facts that describe the characteristics of an event or object-- (examples of data are order date, amount sold, customer number, and quantity ordered)--successful managers compile, analyze, and comprehend massive amounts of data daily, helping them make more successful business decisions
accounting
records, measures, and reports monetary transactions (payroll, tax, purchasing, and transactional data)
granularity
refers to the level of detail in the model or the decision-making process-- the greater the granularity, the deeper the level of detail-- and EIS requires data from external sources to support unstructured decisions, and a DSS typically relies on internal data only
social media
refers to websites that rely on user participation and user-contributed content-- facebook, youtube
As-is process models
represent the current state of the operations that has been mapped, without any specific improvements or changes to existing pocesses
social graphs
represent the interconnection of relationships in a social network
Chief Knowledge Officer (CKO)
responsible for collecting, maintaining, and distributing company knowledge
Chief Privacy Officer (CPO)
responsible for ensuring the ethical and legal use of information within a company
Chief Security office (CSO)
responsible for ensuring the security
Chief Technology Officer (CTO)
responsible for ensuring the speed, accuracy, availability, and reliability of the MIS
Chief Information Officer (CIO)
responsible for overseeing all uses of MIS and ensuring it aligns with business goals and objectives
Relational integrity constraints are rules that enforce basic and fundamental information-based constraints. For example, a relational integrity constraint would not allow someone to create an order for a nonexistent customer, provide a markup percentage that was negative, or order zero pounds of raw materials from a supplier.
rules that enforce basic and fundamental information-based constraints.-- for example, a relational integrity constraint would not allow someone to create an order for a nonexistent customer, provide a markup percentage that was negative, or order zero pounds of raw materials from a supplier
Integrity constraints
rules that help ensure the quality of information-- The database design needs to consider integrity constraints-- two types of integrity constraints: (1) relational and (2) business critical.
short for electronic mail-- the exchange of digital messages over the internet-- single handedly increased the speed of business
folksonomy
similar to taxonomy except that crowdsourcing determines the tags or keyword-based classification system
shopping bot
software that will search several retailer websites and provide a comparison of each retailers offerings, including price and availability
crowdfunding
sources capital for a project by raising many small amounts from a large number of people, typically via internet
tags
specific keywords or phrases incorporated into website content for means of classification or taxonomy-- an item can have 1 or more tags
reintermediation
steps are added to the value chain as new players find ways to add value to the business process-- example would be to allow all retailers to sell your product directly to customers
artifical intelligence (AI)
stimulates human thinking and behavior, such as the ability to reason and learn-- the ultimate goal is to build a system that can mimic human intelligence
An entity (also referred to as a table)
stores information about a person, place, thing, transaction, or event
A relational database model
stores information in the form of logically related two-dimensional tables
unstructured decisions
strategic decisions-- situations where no procedures or rules exist to guide decision makers toward the correct choice--they are infrequent, extremely important, and typically related to long-term business strategy-- examples include the decision to enter a new market or even a new industry
marketing
supports sales by planning, pricing, and promoting goods or services (promotion, sales, and advertising data)
knowledge management system (KMS)
supports the capture, organization, and dissemination of knowledge through an organization-- can distribute an organization's knowledge base by interconnecting people and digitally gathering their expertise
services
tasks people perform that customers will buy to satisfy a want or need (waiting tables, cutting hair, teaching)
mass customization
the ability of an organization to tailor its products or services to the customers' specifications-- examples of M&M's you can customize the colors and whats written on them
buyer power
the ability of buyers to affect the price they must pay for an item-- if buyer power is high, customers can force a company and its competitors to compete on price, driving down the price.
mobile business (mcommerce, mbusiness)
the ability to purchase goods and services through a wireless Internet enabled device
business process reengineering (BPR)
the analysis and redesign of workflow within and between enterprises-- look beyond automating and streamlining and find a completely different approach-- occurs at the systems or companywide level and the end-to-end view of a process
ecommerce
the buying and selling of goods and services over the internet-- online transactions only
online transaction processing (OLTP)
the capture of transaction and event information using technology to (1) process the information according to defined business rules, (2) store the information, and (3) update existing information to reflect the new information
An information cube
the common term for the representation of multidimensional information.
fact
the confirmation or validation of an event or object
cybermediation
the creation of new kinds of intermediaries that simply could not have existed before the advent of ebusiness
information richness
the depth and breadth of details contained in a piece of textual, graphic, audio, or video information--needed by buyers to make informed purchases
Information redundancy
the duplication of data, or the storage of the same data in multiple places-- can cause storage issues along with data integrity issues-- makes it difficult to determine which values are the most current or most accurate-- One primary goal of a database is to eliminate information redundancy by recording each piece of information in only one place in the database-- saving disk space, making performing information updates easier, and improving information quality.
information granularity (start ch. 6)
the extent of detail within the information-- detaile, summary, aggregate
feedback
the information that returns to its original transmitter and modifies the transmitter's actions-- helps sustain stability
source documents
the inputs for a TPS-- the original transaction record-- for a payroll system this would be time sheets, wage rate, and employee benefit reports
tacit knowledge
the knowledge contained in people's heads-- the challenge is figuring out how to recognize, generate, share and manage knowledge in people's heads
online analytical processing (OLAP)
the manipulation of information to create business intelligence in support of strategic decision making
crowdsourcing
the most common for of collective intelligence found outside the organization-- refers to the wisdom of the crowd-- firms are capitalizing on this by opening up a task or problem to a wider group (not just top sections of the company)to find a better or cheaper results from outside the box
best practices
the most successful solutions or problem-solving methods that have been developed by a specific organization or industry-- measuring MIS project helps determine the best practices for an industry
Web 2.0 (or Business 2.0)
the next generation of internet use-- a more mature, distinctive communications platform characterized by new qualities such as collaboration, sharing and free-- encourages user participation and the formation of communities that contribute to the content-- technical skills are no longer required to use and publish information to the WWW, eliminating entry barriers for online business
To-Be process model
the next step-- shows the results of applying change improvement opportunities tot he current (As-Is) process model-- ensures the process is fully and clearly understood before the details of a process solution are decided on
Dot-com
the original term for a company operating on the internet
Data governance
the overall management of the availability, usability, integrity, and security of company data
A content creator
the person responsible for creating the original website content.
A content editor
the person responsible for updating and maintaining website content.
Master data management (MDM)
the practice of gathering data and ensuring that it is uniform, accurate, consistent, and complete--includes customers, suppliers, products, sales, employees, and other critical entities-- MDM is commonly included in data governance
microblogs
the practice of sending brief posts (140 to 200 characters) to a personal blog, either publicly or to a private group --posts can be submitted by a variety of means (instant messaging, email, or the web)--twitter is the most popular example
production
the process by which a business processes raw materials or converts them into finished product for its good or services
Data mining
the process of analyzing data to extract information not offered by the raw data alone-- can begin at a summary information level (coarse granularity) and progress through increasing levels of detail (drilling down) or the reverse (drilling up)
competitive intelligence
the process of gathering information about the competitive environment, including competitors' plans, activities, and products, to improve a company's ability to succeed-- meaning, understand and learning as much as possible as soon as possible about what is occurring outside the company and remain competitive
mutation
the process within a genetic algorithm of randomly trying combinations and evaluations the success (or failures) of the outcome
productivity
the rate at which goods and services are produced based on total output given total input
analytics (begin ch. 2)
the science of fact-based decisions making
taxonomy
the scientific classification of organisms into groups based on similarities of structure or origin--used for indexing the content on the website into categories and subcategories of topics
knowlege
the skills, experience, and expertise, coupled with information and intelligence, that creates a person's intellectual resources (an examples of knowledge would be choosing not to fire a sales rep who is underperforming knowing that they are experiencing family probelms)
A data element (or data field) Data models are logical data structures that detail the relationships among data elements by using graphics or pictures.
the smallest or basic unit of information-- can include a customer's name, address, email, discount rate, preferred shipping method, product name, quantity ordered, and so on.
supplier power
the suppliers' ability to influence the prices they charge for supplies (material, labor, and services)
cycle time
the time required to process an order-- a common KPI for operations management
common company structure
the typical organizational structure is a pyramid-- (from top to bottom)-- strategic, managerial and operational
augmented reality
the viewing of the physical world with computer-generated layers of information added to it
query-by-example (QBE)
tool that helps users graphically design the answer to a question against a database-- Managers typically interact with QBE tools
fiannce
tracks strategic financial issues, including money, banking, credit, investments, and assets (investment, monetary, reporting data)
Data-mining tools
use a variety of techniques to find patterns and relationships in large volumes of information that predict future behavior and guide decision making-- help users uncover business intelligence in their data
BPN gateway
used to control the flow of a process-- handles the forking, merging, and joining of paths within a process (diamond)
static process
uses a systematic approach in an attempt to improve business effectiveness and efficiency continuously-- managers constantly attempt to optimize static process-- examples include running payroll, calculating taxes, and creating financial statements
haptic interface
uses technology allowing humans to interact with a computer through bodily sensations and movements-- an example of this is your phone vibrating in your pocket
intelligent systems
various commercial applications of artificial intelligence-- include sensors, software, and devices that emulate and enhance human capabilities-- perform task like boosting productivity in factories by monitoring equipment and signaling when preventive maintenance is required
value chain analysis
views a firm as a series of business processes, each of which adds value to the product or service-- two categories, primary value activities, and support values activites
mashup editors
what you see is what you get tools--provide a visual interface to build a mashup, often allowing the user to drag and drop data points into a app
paradigm shift
when a new, radical form of business enters the market that reshapes the way companies and organizations behave-- ebusiness did this-- it transformed the entire industry-- not making the shift to ebusiness proved fatal for many companies
information
data converted into a meaningful and useful context (examples of info are best-selling products, best customer, worst-selling product, and worst customer)
the core drivers of the information age are:
date, information, business intelligence and knowledge
A business rule
defines how a company performs certain aspects of its business and typically results in either a yes/no or true/false answer-- example would be Stating that merchandise returns are allowed within 10 days of purchase
network effect
describes how products in a network increase in value to users as the number of users increases-- The more users and content managers on a wiki, the greater the network effect because more users attract more contributor
social tagging
describes the collaborative activity of making shared online content with keywords or tags as a way to organize it for future navigation, filtering, or search
data quality audits
determine the accuracy and completeness of its data
BPN flow
displays the path in which the process flows (arrow)
managerial
employees are continuously evaluating company operations to hone the firm's abilities to identify, adapt to, and leverage change
operational level
employees develop, control, and maintain core business activities required to run the day-to-day operations
analytical information
encompasses all organizational information, and its primary purpose is to support the performance of managerial analysis or semistructured decisions-- includes transactional, market, and industry information-- examples are trends, sales, product statistics, and future growth projections
transactional information
encompasses all the information contained within a single business process or unit of work, and its primary purpose is to support the performance of daily operational or structured decisions
Business-critical integrity constraints
enforce business rules vital to an organization's success and often require more insight and knowledge than relational integrity constraints-- tend to mirror the very rules by which an organization achieves success
automation
enhancing value chain, which reduces costs and increases the speed of performing activities-- the process of computerizing manual tasks, making them more efficient and effective, and dramatically lowering operational costs-- the best way to speed up payroll-- improves efficiency and effectiveness and reduces headcount-- TPSs are primarily used to automate business processes
SWOT Analysis
evaluates an organizations strengths, weaknesses, opportunities, and threats to identify significant influence
search engine ranking
evaluates variables that search engines use to determine where a URL appears on the list of search results
Ebusiness advantages
expanding global reach, opening new markets, reducing costs, and improving effectiveness
logical view of information
focuses on how individual users logically access information to meet their own particular business needs
pay-per-call
generate revenues each time a user clicks a link that takes the user directly to an online agent waiting for a call
pay-per-click
generates revenue each time a user clicks a link to a retailer's website
pay-per-conversion
generates revenue each time a website visitor is converted to a customer
business process model and notation (BPMN)
graphical notation that depicts the steps in a business process-- provides businesses with a graphical view of the end-to-end flow of their business process-- allows easy communication and understanding
content management systems (CMS)
help companies manage the creation, storage, editing, and publication of their website content
DBMS use three primary data models for organizing information
hierarchical, network, and the relational database, the most prevalent.
loyalty programs
how companies can reduce buyer power-- it rewards customers based on their spending-- frequent-flyer programs-- a good example of using MIS to reduce buyer power
real-time information
immediate, up-to-date information-- growing demand for this stems from organizations' need to make faster and more effective decisions, keep smaller inventories, operate more efficiently, and track performance more carefully.
digital darwinism (begin ch. 3)
implies that organizations that cannot adapt to the new demands placed on them to survive in the information age, are doomed to extinction-- examples being Polaroid
streamlining
improves business process efficiencies by simplifying or eliminating unnecessary steps
support value activites
include firm infrastructure, human resource management, technology development, and procurement
Dynamic information
includes data that change based on user actions-- Dynamic information changes when a user requests information
ebusiness
includes ecommerce along with all activities related to internal and external business operations such as servicing customer accounts, collaborating with partners, and exchanging real-time information-- entrepreneurs began creating the first forms of ebusiness during Web 1.0
Static information
includes fixed data incapable of change in the event of a user action--static websites supply only information that will not change until the content editor changes the information
workflow
includes the tasks, activities, and responsibilities required to execute each step in a business process
knowledge workers
individuals valued for their ability to interpret and analyze information-- use BI along with personal experience to make decisions based on both information and intuition, a valuable resource for any company
information age
infinite quantities of facts are widely available to anyone who can use a computer
business intelligence
information collected from multiple sources that analyze patterns, trends, and relationships for strategic decision making--(an examples is lowest sales per week compared with the economic interest rates)-- BI is incorporating all types of internal and external variables to anticipate business performance
the four primary traits of the value of information
information type, timeliness, quality, and governance
egovernment
involves the use of strategies and technologies to transform government by improving the delivery of services and enhancing the quality of interaction between the citizen-consumer and all branches of government
A system
is a collection of parts that link to achieve a common purpose
primary key
is a field (or group of fields) that uniquely identifies a given record in a table-- a critical piece of a relational database because they provide a way of distinguishing each record in a table
Dirty data
is erroneous or flawed data-- The complete removal of dirty data from a source is impractical or virtually impossible
rivalry among existing competitiors
is high when competition is fierce in a market and low when competitors are more complacent
threat of new entrants
is high when it is easy for new competitors to enter a market and low when there are significant entry barriers to joining a market
threat of substitute products or services
is high when there are many alternatives to a product or service and low when there are few alternatives
the world wide web (WWW)
is not a synonym for the internet-- its just one part of the internet-- its primary use is to correlate and disseminate information
transaction processing system
is the basic business sytem that serves the operational level and assists in making structured decisions-- most common example is an operational accounting system, like a payroll system
adwords
keywords that advertisers choose to pay for and appear as sponsored links on the Google results pages
Input--->Process--->output
lettuces, tomatoes, patty, bun ketchup----> cook the patty, put the ingredients together-----> hamburger
Data models
logical data structures that detail the relationships among data elements by using graphics or pictures
database
maintains information about various types of objects inventory, events (transactions), people (employees), and places (warehouses)-- Companies store their information in databases, and managers access these systems to answer operational questions
human resources
maintains policies, plans, and procedures for the effective management of employees (employee, promotion, and vacation data)
strategic
managers develop overall business strategies, goals, and objectives as part of the company's strategic plan-- they also monitor the strategic performance of the organization and its overall direction in the political, economic, and competitive business environment
operations management
manages the process of converting or transforming resources into goods or services (manufacturing, distribution, and production date)
social networking analysis (SNA)
maps group contacts (personal and professional) identifying who know each other and who works together-- in a company it can proivde a vision of how employees work together
goods
material items or products that customers will buy to satisfy a want or a need (clothes, groceries)
effectiveness MIS metrics
measure the impact MIS has on business processes and activities, including customer satisfaction and customer conversion rates-- how well a firm is achieving its goals and objectives
efficiency MIS metrics
measure the performance of MIS itself-- such as throughput, transaction speed, and system availability--the extent to which a firm is using its resources
metrics
measurements that evaluate results to determine whether a project is meeting its goals
interactivity
measures advertising effectiveness by counting visitor interactions with the target ad-- including the time spent viewing the ad, number of pages viewed, and number of repeat visits to it
information reach
measures the number of people a firm can communicate with all over the world-- needed by sellers to market and differentiate themselves from the competition properly
eshop
B2C-- an online version of a retail store where customers can shop at any hour
Web 2.0 Characteristics
Content sharing through open sourcing-- user-contributed content-- collaboration inside the organization--and collaboration outside the organization
database management system (DBMS)
Creates, reads, updates, and deletes data in a database while controlling access and security-- Managers send requests to the DBMS, and the DBMS performs the actual manipulation of the data in the database
predictive analytics
a big part of BI, it extracts information from data and uses it to predict future trends and identify behavior patterns-- used by top managers to define the future of the business, analyzing markets, industries, and economies to determine the strategic direction the company must follow to remain profitable
management information systems (MIS)
a business function, like accounting or human resource, except it moves information about people products, and process across the company to facilitate decisions making and problem solving-- incorporates systems thinking to help companies operate cross functionally-- to perform the MIS function effectively the company should have an internal MIS department, often called information technology (IT)
Big data
a collection of large, complex data sets, including structured and unstructured data--cannot be analyzed using traditional database methods and tools--requires sophisticated tools to analyze all the unstructured information from millions of customers, devices, and machine interactions--analyzed for marketing trends in business as well as in the fields of manufacturing, medicine, and science.
market share
a common external KPI-- the proportion of the market that a firm captures
return on investment (ROI)
a common internal KPI-- indicates the earning power of a project-- for projects that are intangible and cross departmental lines (like an MIS project) ROI is challenging to measure
digital dashboard
a common tool that supports visualization-- tracks KPIs and CSFs by compiling information from multiple sources and tailoring it to meet user needs-- deliver results quickly-- can be used by employees to increase business performance
internet service provider (ISP)
a company that provides access to the internet for a monthly fee-- Major ISPs in the US are AOL, AT&T, etc.
critical success factors (CSFs)
a core metric-- the crucial steps companies perform to achieve their goals and objectives and implement their strategies-- (creates high quality products-- retain competitive advantage-- reduce product costs-- increase customer satisfaction--fire and retain the best business professionals).-- one CSF can have several KPIs
key performance indicators (KPIs)
a core metric-- the quantifiable metrics a company uses to evaluate progress toward critical success factors-- far more specific than CSFs.-- (turnover rate of employees-- percentage of help desk calls answered in the first min.-- number of product returns--number of new customers- average customer spending).
variable
a data characteristic that stands for a value that changes or varies over time
Structured data
a defined length, type, and format and includes numbers, dates, or strings such as Customer Address-- typically stored in a traditional system such as a relational database or spreadsheet--accounts for about 20 percent of the data that surrounds us
competitive advantage
a feature of a product or service on which customers place a greater value than they do on similar offerings from competitors--provide the same product or service either at a lower price or with additional value --typically temporary, because they are quickly duplicated
business process model
a graphic description of a process, showing the sequence of process tasks, which is developed for a specific purpose and from a selected viewpoint
the swim lane
a layot that arranges the steps of a business process into a set of rows depicting the various elemtns
a business strategy
a leadership plan that achieves a specific set of goals and objectives such as increasing sales, decreasing costs, entering new markets, or developing new products or services
website bookmark
a locally stored URL-- the address of a file-- Internet page saved as a shortcut
data warehouse
a logical collection of information, gathered from many operational databases-- primary purpose is to combine information, more specifically, strategic information, throughout an organization into a single repository-- A key idea is to collect information from multiple systems in a common location that uses a universal querying tool.
ezine
a magazine published only in electronic form on a computer network
benchmarks
baseline values the system seeks to attain
Web 3.0
brings machines closer together by using information-- uniting people, machines, and information so a business can be smarter, quicker, more agile, and more successful-- a goal is to tailor online searches and requests specifically to users' preferences and needs
disitermediation
brought about by the introduction of ebusiness-- occurs when a business sells directly to the customer online and cuts out the intermediary-- lets the company shorten the order process and add value with reduced costs
synchronous communication
brought by Business 2.0-- communications that occur at the same time, such as IM or chat
