MIS Exam 1 prep

Semantic web

A component of Web 2.0 that describes things in a way that computers can understand

Ebusiness models

A plan that details how a company creates, delivers, and generates revenues on the internet. Business-to-business (B2B):Applies to businesses buying from and selling to each other over the Internet. Business-to-consumer (B2C):Applies to any business that sells products/services to consumers over Internet. Consumer-to-business (C2B):Applies to any consumer that sells product/service to business over the Internet. Consumer-to-consumer (C2C):Applies to sites primarily offering goods and services to assist consumers interacting with each other over the Internet. Brick-and-Mortar, Click-and-mortar, pure play.

Business Process Reengineering (BPR) for operational efficiency and effectiveness

Analysis & redesign of workflow w/in & between enterprises.

Social media analysis

Analyzes text flowing across the Internet, including unstructured text from blogs and messages

Web 3.0

Based on "intelligent" Web applications using natural language processing, machine-based learning and reasoning, and intelligence applications

Ebusiness forms

Content providers• Infomediaries• Online marketplaces• Portals• Service providers• Transaction brokers

Information

Data converted into a meaningful and useful context Report - A document containing data organized in a table, matrix, or graphical format allowing users to easily comprehend and understand information • Static report - Created once based on data that does not change • Dynamic report - Changes automatically during creation

Data Mining Analysis Techniques

Data profiling - The process of collecting statistics and information about data in an existing source Data replication - The process of sharing information to ensure consistency between multiple data sources Recommendation engine: data mining algorithm that analyzes customer's purchases & actions on website & then uses data to recommend complementary products Common data mining techniques: Affinity grouping analysis, Classification analysis, Cluster analysis, Estimation analysis

Streamlining for operational efficiency and effectiveness

Improves business process efficiencies by simplifying or eliminating unnecessary steps

Business Intelligence

Info collected from multiple sources like suppliers, customers, competitors, partners, and industries that analyzes patterns, trends, and relationships for strategic decision making Analytics - The science of fact-based decision making Business Analytics -scientific process of transforming data into insight for making better decisions Descriptive analytics - Techniques that describes part performance and history Predictive analytics - Techniques that extract info from data & uses to predict future trends and identify behavioral patterns Prescriptive analytics - Techniques that create models including best decision to make/course of action to take

knowledge management

Involves capturing, classifying, evaluating, retrieving, and sharing information assets in a way that provides context for effective decisions and actions

Difference between an MIS and a DSS

Managers can retrieve info from MIS system however they'll have to analyze information using a DSS for what‐if analysis, sensitivity analysis, and goal‐seeking analysis.

Personalization

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

Customer facing process

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

Systems thinking and business processes

Some processes, such as programming process, may be contained wholly w/in single department. However, most, such as ordering product, are cross‐functional or cross‐ departmental processes and span the entire organization. process of "order to delivery" focuses on the entire customer order process across functional departments. Another example is "product realization," which includes not only way product is developed, but also way it's marketed and serviced. Some other cross‐functional business processes are taking a product from concept to market, acquiring customers, loan processing, providing post‐sales service, claim processing, & reservation handling. Understanding cross‐functional business process is same as understanding systems thinking!

Business Operations

The day-to-day activities needed for continued business functioning

automation for operational efficiency and effectiveness

The process of computerizing manual tasks

Behavior Analysis

The study of the principles of behavior

Web analysis

analyzes unstructured data associated with websites to identify consumer behavior and website navigation

Challenges of Ebusiness

identifying limited market segments, managing consumer trust, ensuring consumer protection, and adhering to taxation rules.

Challenges associated with business 2.0

individuals forming unrealistic dependencies on technology, vandalism of information on blogs and wikis, and the violation of copyrights and plagiarism.

Web/Business 2.0

next generation of Internet use - a more mature, distinctive communications platform characterized by three qualities

Reintermediation

using the Internet to reassemble buyers, sellers, and other partners in a traditional supply chain in new ways

advanced data analytics

- Behavioral Analysis - Correlation Analysis - Exploratory Data Analysis - Pattern Recognition Analysis - Social Media Analysis - Speech Analysis - Text Analysis - Web Analysis

DSS analysis techniques

1. What-if analysis 2. Sensitivity analysis 3. Goal-seeking analysis 4. Optimization analysis Consolidation is aggregation of data from simple roll‐ups to complex groupings of interrelated info. For example, data for different sales representatives can then be rolled up to office level, then state level, then regional sales level. Drill‐down enables users to view details, & details of details, of info: reverse of consolidation; user can view regional sales data & then drill down all the way to each sales representative's data at each office. Drill‐down capability lets managers view monthly, weekly, daily, or hourly info. Slice‐&‐dice is ability to look at info from different perspectives. 1 slice of info could display all product sales during given promotion. Another slice could display single product's sales for all promotions. Slicing & dicing often performed along time axis to analyze trends and find time‐based patterns in the information.

Disruptive Technology

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

optimization model

A process to find the best solution, usually the one that will best help the organization meet its goals.

Five types of AI systems and their business values

Artificial intelligence (AI) simulates human thinking and behavior, such as ability to reason and learn. The five most common categories of AI are: Expert systems—computerized advisory programs that imitate the reasoning processes of experts in solving difficult problems. Neural networks—attempts to emulate the way the human brain works. Genetic algorithm—a system that mimics the evolutionary, survival-of-the-fittest process to generate increasingly better solutions to a problem. Intelligent agents— special-purpose knowledge-based info system that accomplishes specific tasks on behalf of its users. Virtual reality— computer-simulated environment that can be simulation of real world or an imaginary world.

Transaction processing systems and role in business

Basic business system that serves operational level and assists in making structured decisions. most common example of TPS is operational accounting system such as payroll system or an order-entry system. Online transaction processing (OLTP): Capturing of transaction & event info using tech to process, store, and update. Source document - The original transaction record encompasses all info contained w/in single business process/unit of work, & primary purpose is support the performance of daily operational/structured decisions. Transactional info is created, for example, when customers are purchasing stocks, making an airline reservation, or w/drawing cash from ATM. Managers use transactional info when making structured decisions at the operational level, such as when analyzing daily sales reports to determine how much inventory

Business strategies

Business strategy - A leadership plan that achieves a specific set of goals or objectives such as: • Developing new products or services • Entering new markets • Increasing customer loyalty • Attracting new customers • Increasing sales

Ecommerce

Buying & selling of goods and services over the Internet

collective intelligence

Collaborating and tapping into the core knowledge of all employees, partners, and customers

Wiki

Collaborative Web page that allows users to add, remove, and change content, which can be easily organization and reorganized as required• Network effect

Expert systems

Computerized advisory programs that imitate the reasoning processes of experts in solving difficult problems. specialized DSS that supports senior level executives within the organization. typically, include a knowledge base containing various accumulated experience & set of rules for applying knowledge base to each particular situation. most common form of AI in business arena because they fill gap when human experts are difficult to find/retain/are too expensive. best‐known systems play chess and assist in medical diagnosis. use visualization to deliver specific key info to top managers at glance, w/h little/no interaction with the system.

Extended business models

Ebusiness opened new avenues for companies to generate revenue and new business models including B2B, B2C, C2C, and C2B.

Ebusiness tools for connecting and communicating

Email.Instant messaging. Podcasting. Video conferencing.Web conferencing.Content management system.

Operational

Employees develop, control, & maintain core business activities required to run day-to-day operations. considered structured decisions, which arise in situations where established processes offer potential solutions. Structured decisions are made frequently & are almost repetitive in nature; they affect short-term business strategies. Transaction processing system (TPS): Basic business system that serves operational level & assists in making structured decisions.

Managerial

Employees evaluate company operations to identify, adapt to, & leverage change. decisions cover short- and medium-range plans, schedules, & budgets along with policies, procedures, & business objectives for the firm. These types of decisions are considered semistructured decisions. Semi-structured decisions: Occur in situations in which few established processes help to evaluate potential solutions, but not enough to lead to definite recommended decision. Online analytical processing (OLAP): Manipulation of info to create business intelligence in support of strategic decision making. (DSS).

Ethics in companies

Ethics: The principles and standards that guide our behavior toward other people. Business issues related to information ethics• Copyright• Counterfeit software• Digital rights management• Intellectual property• Patent• Pirated software.

forecasting model

Forecasts are predictions based on time-series information allowing users to manipulate the time series for forecasting activities

Information Management, governance, and compliance

Govern ethical & moral issues arising from development & use of info techns, as well as creation, collection, duplication, distribution, & processing of info itself. examines organizational resource of info & regulates definitions, uses, value, & distribution ensuring has types of data/info required to function & grow effectively. Info governance is method/system of government for info management/control. Info compliance is act of conforming/acquiescing/yielding info. All required to ensure corporation treats info correctly.

Ebusiness

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

Internet and www as a global platform for business

Internet - massive network that connects computers all over world & allows them to communicate w/ 1 another. Organizations must be able to transform as markets, economic environments, & technologies change. World Wide Web (WWW) - Provides access to Internet info through documents including text, graphics, audio, and video files that use a special formatting language called HTML - hypertext markup language. Internet& WWW caused business disruption by allowing people to communicate&collaborate in ways that were'nt possible before info age. Internet & WWW completely disrupted way businesses operate, employees communicate,&products are developed & sold. As people began learning about WWW & Internet, they understood it enabled company to communicate w/ anyone, anywhere, at any time, creating a new way to participate in business.

Business facing process

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

Strategic

Managers develop overall strategies, goals,&objectives as part of company's strategic plan. Unstructured decisions: Occurs in situations in which no procedures/rules exist to guide decision makers toward correct choice. Also monitor strategic performance of organization & overall direction in political, economic, & competitive business environment. highly unstructured decisions. infrequent, extremely important, & typically related to long-term business strategy. Executive info system (EIS) : specialized DSS that supports senior level executives w/in organization. Granularity, Visualization , Digital dashboard. Most EISs offering following capabilities: Consolidation, Drill-down, Slice-and-dice, Pivot.

MIS Efficiency Metrics

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

MIS Effectiveness Metrics

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

Decision Support System (DSS)

Models info to support managers & business professionals during the decision-making process. model info using OLAP, which provides assistance in evaluating and choosing among different courses of action. enable high‐level managers to examine and manipulate large amounts of detailed data from different internal and external sources. Analyzing complex relationships among thousands or even millions of data items to discover patterns, trends, and exception conditions is one of the key uses.

blog

Online journal that allows users to post their own comments, graphics, and video• Microblogging • Real simple syndication

E policies in companies

Organizations strive to build corporate culture based on ethical principles that employees can understand and implement ethical computer use policy contains general principles to guide computer user behavior. For example, it might explicitly state that users should refrain from playing computer games during working hours. An information privacy policy contains general principles regarding information privacy. acceptable use policy (AUP) is policy that user must agree to follow in order to be provided access to corporate email, info systems, and to the Internet. An email privacy policy details the extent to which email messages may be read by others. social media policy outlines the corporate guidelines or principles governing employee online communications. An employee monitoring policy states explicitly how, when, and where the company monitors its employees.

CIO

Oversees all uses of info & ensures strategic alignment of MIS w/ business goals and objectives

Data mining modeling techniques for predictions

Prediction: statement about what'll happen/might happen in future; for example, predicting future sales or employee turnover. Prediction modeling techniques include: Optimization modeling, Forecasting modeling, Regression modeling

sustaining technology

Produces an improved product customers are eager to buy

Data

Raw facts that describe characteristics of event/ object Structured data - Stored in a traditional system such as a relational database or spreadsheet Unstructured data-Not defined & does not follow specified format Machine-generated data - Created by a machine without human intervention Human-generated data - Data that humans, in interaction with computers, generate fundamental role of all business managers is to be able to take data & analyze it to find info to make great business decisions

CPO

Responsible for ensuring ethical and legal use of info

CSO

Responsible for ensuring the security of MIS systems

Ebusiness Revenue-Generating Strategies

Search engine - Website software that finds other pages based on keyword matching similar to Google Search engine ranking - Evaluates variables that search engines use to determine where a URL appears on the list of search results Search engine optimization - Combines art along w/ science to determine how to make URLs more attractive to search engines resulting in higher search engine ranking. Ebusiness revenue models• Advertising fees• License fees• Subscription fees• Transaction fees• Value-added service fees. Pay-per-click. Pay-per-call. Pay-per-conversion

knowledge

Skills, experience, & expertise coupled w/ info & intelligence that creates person's intellectual resources Knowledge worker - Individual valued for their ability to interpret and analyze information

Networking communities

Social media - Websites that rely on user participation and user-contributed content Social network - An application that connects people by matching profile information Social networking - The practice of expanding your business and/or social contacts by a personal network

Three different levels in organizations and their types of information and decision making

Strategic, managerial, operational

mass customization

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

Deep Web

The large part of the Internet that is inaccessible to conventional search engines.

Mashup

Website/Web application that uses content from more than 1 source to create completely new product/ service. Application programming interface• Mashup editor

cluster analysis

a technique used to divide an information set into mutually exclusive groups such that the members of each group are as close together as possible to one another and the different groups are as far apart as possible

Buyer Power

ability of buyers to affect price they must pay for an item

speech analysis

analyzes recorded calls to gather information; brings structure to customer interactions and exposes information buried in customer contact center interactions with an enterprise

Text analysis

analyzes unstructured data to find trends and patterns in words and sentences

Confidientiality

assurance that messages and information are available only to those who are authorized to view them

Porter's Three Generic Strategies

broad cost leadership, broad differentiation, focused strategy generic business strategies that neither organization nor industry specific and can be applied to any business, product, or service chose business focus

Role of MIS in companies

business function, like accounting & h.r., which moves info about people, products, & processes across company to facilitate decision-making & problem-solving. MIS incorporates systems thinking to help companies operate cross‐functionally. For example, to fulfill product orders, MIS for sales moves single customer order across all functional areas including sales, order fulfillment, shipping, billing, and finally customer service.

Pattern recognition analysis

classifies or labels an identified pattern in the machine learning process

Characteristics of big data

collection of large, complex data sets, including structured and unstructured data, which cannot be analyzed using traditional database methods and tools Four Characteristics of Big Data •Variety:Different forms of structured&unstructured data • Veracity -uncertainty of data, including biases, noise, and abnormalities • Volume - The scale of data Velocity:analysis of streaming data as it travels around Internet,

Digital dashboards

common tool that supports visualization. tracks KPIs and CSFs by compiling information from multiple sources and tailoring it to meet user needs.

Open sourcing

content sharing through this in business 2.0. Open system: Nonproprietary hardware & software based on publicly known standards that allows 3rd parties to create add-on products to plug into/interoperate with the system• Source code• Open source• Closed source

Critical success factors for business operations and strategies

crucial steps companies make to perform to achieve goals & objectives & implement strategies: Create high-quality products, Retain competitive advantages, Reduce product costs, Increase customer satisfaction, Hire and retain the best professionals. elements crucial for a business strategy's success.

correlation analysis

determines a statistical relationship between variables, often for the purpose of identifying predictive factors among the variables

estimation analysis

determines values for an unknown continuous variable behavior or estimated future value

To-Be process model

displays how process problem will be solved or implemented. show results of applying change improvement opportunities to current (As-Is) process model. ensures process is fully & clearly understood before details of a process solution are decided upon.

Value chain

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

Porter's Five Forces Model and decision making

executing business strategy, evaluating industry attractiveness. analyzes competitive forces w/in environment which company operates, to assess potential for profitability in industry. Buyer power is ability of buyers to affect price they must pay for an item. Supplier power:suppliers' ability to influence prices they charge for supplies(including materials,labor,& services). Threat of substitute products or services is high when there are many alternatives to product/service and low when there are few alternatives from which to choose Threat of new entrants is high when its easy for new competitors to enter a market and low when there are significant entry barriers to entering a market Rivalry among existing competitors is high when competition is fierce in a market and low when competition is more complacent

As-Is process models

functional process representation of what the process problem is. represent current state of operation thats been mapped, w/out any specific improvements/ changes to existing processes.

Collaboration tools

inside the organization: Collaboration system - Tools that support work of teams/groups by facilitating sharing & flow of info. Collective intelligence - Collaborating & tapping into core knowledge of all employees, partners,& customers Knowledge management - Involves capturing, classifying, evaluating, retrieving, & sharing info assets in way that provides context for effective decisions& actions Knowledge-based assets fall into 2 categories: Explicit knowledge - Consists of anything that can be documented, achieved, and codified Tacit knowledge: Knowledge contained in people's heads outside: Crowdsourcing - the wisdom of the crowd Asynchronous communication• Synchronous communication

Egovernment

involves use of strategies and technologies to transform government(s) by improving delivery of services and enhancing quality of interaction between the citizen‐consumer within all branches of government.

Systems thinking

monitoring entire system by viewing multiple inputs being processed/transformed to produce outputs while continuously gathering feedback on each part

Benefits associated with business 2.0

next generation of Internet use - a more mature, distinctive communications platform characterized by three qualities• Collaboration• Sharing• Free.

Disintermediation

occurs when a business sells directly to the customer online and cuts out the intermediary.

Key performance indicators for business operations and strategies

quantifiable metrics company uses to evaluate progress toward critical success factors: Turnover rates of employees, Number of product returns, Number of new customers, Average customer spending. measure the progress of CSFs with quantifiable measurements. External KPI: Market share: portion of the market that a firm captures Internal KPI: Return on investment (ROI): Indicates the earning power of a project

Regression modeling

quantitative tool to predict future events

Cybermediation

refers to creation of new kinds of intermediaries that simply couldn't have existed before advent of ebusiness, including comparison‐ shopping sites & bank account aggregation services.

affinity grouping analysis

reveals the relationship between variables along with the nature and frequency of the relationships

Privacy

right to be left alone when you want to be, have control over own personal possessions, and not to be observed without your consent

Adware

software that, while purporting to serve some useful function and often fulfilling that function, also allows Internet advertisers to display advertisements without the consent of the computer user.

Business process

standardized set of activities that accomplish a specific task, such as processing a customer's order.

Classification analysis

the process of organizing data into categories or groups for its most effective and efficient use

Crowdsourcing

the wisdom of the crowd• Asynchronous communication• Synchronous communication

Role of MIS in global business

though different functional areas handle different parts of sale, thanks to MIS, to customer, sale is 1 continuous process. If 1 part of company is experiencing problems, however, then, like car without steering wheel, entire system fails. If order fulfillment packages wrong product, it won't matter that shipping, billing, & customer service did jobs right, since customer won't be satisfied when he/she opens package.

content sharing

through open sourcing, user-contributed content, collaboration inside the organization, collaboration outside the organization.

Business process role in an organization

transforms set of inputs into set of outputs (goods or services) for another person or process by using people and tools. Without processes, organizations would not be able to complete activities.

Exploratory Data Analysis

uses graphs and numerical summaries to describe the variables in a data set and the relations among them

benefits of ebusiness

• Expanding global reach• Opening new markets• Reducing costs• Improving effectiveness