BEC B5&B6

BPM cont - techniques 5

1. define: original process defined as baseline for current process functioning/mgt 2. measure: the indicators will show a change to the process are determined 3. analyze: various simulations or models are used to determine the targeted or optimal improvement 4. improve: the improvement is selected and implemented 5. control: dashboards and other reports are used to monitor the improvement in real time and apply the data to the model for improvement

Inherent risks of international business operations risks associated w conducting international business operations are generally categorized by the following 3

1. exchange rate fluctuation 2. foreign economies 3. political risk

factors impacting price elasticity of supply 2

1. feasibility of producers storing the product will affect the price elasticity of supply ie a product that can be produced and stored until needed may have a high elasticity of supply. when prices increase the product is available to sell. perishables ie fresh flowers may have low elasticity bc difficult to increase supply when prices rise 2. time required to produce/supply the good will affect the price elasticity of supply ie longer production time --> lower price elasticity

relevant factors of international business operations first 6 only

1. political and legal influences - conducting business internationally may involve certain political risks that could be potentially disruptive to an entity. the legal reqs for conducting business in a given foreign country should also be assessed 2. potential and asset expropriation - nations may expropriate assets from the international companies that own the assets. assessing the risk of political intervention is integral to business planning and financial reporting 3. taxes and tariffs - govs may attempt to control economic activity through taxes and tariffs. mitigation of this risk is typically handled through transfer pricing. 4. limitation on asset ownership or joint venture participation: govs may limit the amount of ownership or entirely constrict any ownership of business ventures within their borders, thereby limiting joint ventures and direct investments 5. content or value added limits - sometimes referred to as sourcing requirements, governments may provide tariff reductions to companies whose imports include specified percentages of material and labor in their products. 6. foreign trade zones: governments may establish trade zones in which tariffs are waived until the goods leave the zone. the creation of foreign trade zones affect the gov control of imports and the location of import facilities

impact of changes in fiscal policies, monetary policies, regulations, and trade controls overview, and fiscal policy ie define/ expansionary

a government's policies and actions can have a significant impact on industries and entities operation w/in purview of that gov and on industries conducting business w it. an industry and its entities can be positively or negatively affected by fiscal policies, monetary policy, gov regulations and trade controls fiscal policy - a government's use of gov spending and taxation to influence the economy. gov spending includes subsidies, public works projects, welfare programs, and salaries paid to gov employees. taxation which serves to fund the gov, incldues taxes assessed on income, property, gains from investments, and sales. fiscal policies can be expansionary and contractionary depending on whether the gov wishes to stimulate or dampen the economy. expansionary fiscal polcy entails more gov spending and/or reduction in taxes. when gov puts more money in hands of consumers, overall spending increases and stimulates economic growth. contractionary fiscal policy which includes reduced gov spendign adn increases in taxes, is designed to slow economic growth and reduce inflation

market equilibrium define and 2

a market is in equilibrium when there are no forces acting to change the current price / quantity combination. the market supplies just as much as is demanded, and there is pressure to change prices. 1. market's equilibrium P / Q is the point at which the supply and demand curves intersect aka market clearing price 2. the intersection of demand and supply determines equilibrium price

oligopoly

a market structure in which a few very large sellers dominate the sales of a product and entry of new sellers is difficult or impossible assumptions: relatively few firms w differentiated products. firms are relatively large relative to industry -fairly significant barriers to entry ie high capital cost of designing a safety-tested car and building an auto plant -products differentiated and firms have control over both Q produced and P charged -firms are strongly interdependent -oligopolists face a kinked demand curve bc firms match price cuts of competitors but ignore price increases, causing demand curve to have different slops above and below the prevailing price -because of high barriers to entry, economic profits are positive in the long run strategies under oligopoly: focus on market share and call for the proper amount of advertising and ways to properly adapt to rpice changes or required changes in production volume

Economics

a science that studies human behavior as the relationship between ends and scarce means that have alternative uses. Economics is about people (individuals, corporations, governments) and the choices they make. Because economics is a crucial component of the business environment, it is considered an important area of study in the BEC curriculum

economic indicators

although business cycles tend to be irregular and unpredictable, economics nevertheless attempt to predict business cycles and their severity and duration using economic indicators. economic indicators are statistics that historically have been highly correlated w economic activity. they can be 3: leading indicators, lagging indicators, or coincident indicators.

business combinations 4 primary types of combos transactions include

an entity can expand its operations by entering into a business combination. the 4 primary types of combinations include: horizontal, vertical, circular, and diagonal combinations. transactions include mergers, acquisitions, consolidations, tender offers, purchases of assets, and management acquisitions

effect of inflation on investments - debt vs equity vs alternative

an entity's investments consist of traditional vehicles such as debt and equity investments, as well as ie real estate, commodities, hedge funds etc. fixed-rate debt investments pay a fixed coupon every period along w face value at maturity. inflation erodes the purchasing power of fixed coupon payments and the final principal payment, which therefore reduces the PV of the investment. debt - in order to combat inflation federal reserve may lower interest rates, which will help entities/consumers by makign borrowing cheaper, facilitating economic expansion but also reducing value of floating coupon payments received (principal payment will lose value due to inflation) equity - may provide dividnds periodic basis. inflation will erode value of these payments, and also causes production costs to rise, driving up sales prices and consumers may purchase fewer goods, leading to profit and stock price declines alternative investments -alternative investments may be used to hedge against inflation. although driven by myriad factors, real estate tends to increase in value over time and can generate returns that outpace inflation in the long run. commodities also used to hedge against inflation. hedge funds follow unique strategies and entities may wish to invest in funds designed to protect against inflation

general effects of changes in demand and supply on equilibrium

an increase in demand and supply results in an increase in equilibrium Q, but the effect on price is indeterminate. It is certain that the effect is an increase of equilibrium Q, however the effect on equilibrium price is indeterminate bc an incirease in demand and supply could cause an increase decrease or no change in equilibrium price == if demand increase > supply increase, the equilibrium price will rise. however, if teh supply increase > demand increase, the equilibrium price will fall. the effect of other complex scenarios such as 1)decrease in demand and an increase in supply 2)an increase in demand and a decrease in supply or 3)a decrease in demand and a decrease in supply can be analyzed in a similar manner. see table !!! B5-21!! each sceario has one indeterminate ie decrease in demand , decrease in supply... decrease on equilibrium Q but indeterminate impact on equilibrium P

cont - foreign economies explain and explain a) foreign demand b) interest rates c) inflation d) exchange rates but just explain the first two!!

an operation w/in a foreign economy carries the risk of functioning within the general health or weakness of a particular economy. domestic economies may be booming while international economies may be suffering and acting as a drag on multinational company's overall performance. the state of the foreign economy in which the company operates is highly significant to risk evaluation foreign demand - a multinational corporation exporting to a foreign country is vitally concerned with demand w/in that country. demand is directly affected by the health of the economy of the country in which it operates. a) weakening demand may cause the foreign gov to implement tariffs or other regulatory measures that reduce foreign penetration b) measures to reduce foreign penetration may require either curtailment of foreign operations or export of goods produced by the multinational inside the foreign country instead of selling w/in foreign country interest rates a) higher interest rates in the foreign country are indicators of slower economic growth and reduced demand b) lower interest rates in the foreign country may be indicative of increased growth and demand

introduction to business process management approaches explain activities 5

approaches - BPM business process mgt is a mgt approach that seeks to coordinate the functions of an organization toward an ultimate goal of continuous improvement in customer satisfaction. customers may be internal or external to an organization. process mgt seeks effectiveness and efficiency through promotion of innovation, flexibility, and integration w technology business process management attempts to improve processes continuously. by focusing on processes, an organization becomes more nimble and responsive than hierarchical organizations managed by function activities: BPM can be grouped into 5 categories: 1. design - identification of existing processes and conceptual design of how processes should function once have been improved 2. modelinlg - introduces variables to the conceptual design for what-if analysis 3. execution - design changes are implemented and key indicators of success are developed 4. monitoring: info is gathered and tracked and compared w expected performance 5. optimization: using the monitoring data and the original design, the process manager continues to refine the process.

business cycles cont - measuring economic activity (gross domestic product GDP)

because business cycles refer to the rise and fall of economic activity, it is important to first examine how economic activity is measured. the most common measure of the economic activity or output of an economy is GDP. GDP is the total market value of all final goods and services produced w/in borders of a naiton in a period. the term "final goods and services" excludes used goods that have been resold. GDP is the nation's output of goods and services. note that GDP includes all final goods and services produced w/in a country regardless of who owns the resources. thus US GDP includes the output of foreign-owned factories in the US but excludes output of US owned factories operating abroad.

benefits and 3

benefits of a studied and systematic approach to process mgt allow the company to monitor the degree to which improvements have been achieved. the benefits often mentioned for process management are: 1. efficiency : fewer resources used to accomplish organizational objectives 2. effectiveness: objectives accomplished w greater predictability 3. agility: responses to changes are faster and more reliable

types of competitive strategies competitive advantage in general - explain cost leadership

building a successful competitive strategy requires being able to attain some sort of competitive adv while still holding customer loyalty and having value for the customer competitive advantage in general - the overall competitive advantage of a firm is determined by the value the firm offers to its customers minus the cost of creating that value. firms that seek to achieve competitive advantage with respect to products will choose from 2: cost leadership vs differentiation cost leadership: stems from the fact that the buyers of the product are better off bc the firm has been able to produce and sell its product < rivals. if total costs of firm < rivals, firm has competitive market advantage. this may be used by the firm in one of two ways : 1. build market share (lower price so can gain market share while still maintaining profits) 2. match the price of rivals (if low cost competitive strategy, will be able to match price of rivals and beat profitability of rivals)

types of business combinations cont circular combinations vs diagonal combination

circular combination occurs when different business units w relatively remote connections come together under single measurement. the relationship could come from using similar distribution or advertising channels or requiring similar production processes. having one mgt group over the combined units reduced overall admin and other operational costs ie pharma inc acquires a company specializing in residential real estate to take advantage of synergies. diagonal combination ie a company that engaged in an activity integrates with antoher company that provides ancillary support for that primary activity. purpose = ensure the ancillary support is delivered in a timely an effective manner. ie company breeding livestock merges with transportation company

coincident indicators

coincident indicators change at approx the same time as teh whole economy, thereby providing information about the current state of the economy. a coincident indicator may be used to identify, after the fact, the timing of peaks and troughs in a business cylce coincident indicators include: -industrial production -manufacturing and trade sales -industrial production (GDP) -personal income less trade payments

best cost strategies - and when does this work well vs fail

combines cost leadership with differentiation strategy to give customers higher value for their purchase price. if a firm is able to achieve teh lowest price among its closest competitors while matchign them on features desired by customers, it will succeed. ie walmart works well when generic products are not acceptable to varied needs of the buyers but the buyers are still sensitive to the value that receiving for money spending and overall prices. fails - faces risk of losing customers t hat are using cost leadership or differentiation strategy focused

outsourcing, many risks

contracting of services to an external provider. ie payroll service, call center to provide support or back-office services for a fee. contractual relatinship exists bw the business and its service provider. risks w outsourcing include: 1 . quality risk 2. quality of service 3. productivity 4. staff turnover 5. language skills 6. security of informaiton w a 3rd party 7. qualifications of outsourcers 8. labor insecurity- increases when jobs move to an external service provider or out of country

future expenses in an inflationary env

costs of production will increase (labor capital natural resources etc)... this will require entities to increase sales prices to maintain PM. entities that do not have a means of containing costs or raising sales prices w/o pricing out consumers will suffer.

cross elasticity

cross elasticity = % change in Q demanded (or supplied) of one good caused by the price change of another good.ie producer of butter might want to know cross elasticity of demand/supply for margarine. C = cross elasticity of demand (supply) = % change in number of units of X demanded (supplied) // % change in price of Y

implementing improvement initiatives 4

crucial features of successful implementation activities: 1.internal leadership - senior mgt must provide direction and commit resources to the implementation 2. inspections - ongoing implementation must be monitored and measured 3. executive support - must be visibly supportive of the initiative 4. internal process ownership - the individuals most deeply involved w process management must be committed to the need for the process improvement and have the resources to carry it out

factors relevant to assessing the effect of international business operations continued. culture - 4 1. individualism vs collectvism 2. uncertainty avoidance 3. short term vs long term orientation 4. acceptance of leadership hierarchy

culture - dif cultures affect international business. culture can be defined as the shared values and attitudes of a group. the cultures of nations or regions typically involve the following issues. 1. individualism vs collectivism: some cultures place a high value on individualism and others are more likely to place a higher value on the collective 2. uncertainty avoidance - certain cultures have difficulty dealing w uncertainty. the US typically has guarded ability to accept uncertainty, while asian and south american culture may highly averse to dealing w uncertainty 3. short-term vs long-term orientation - certain cultures are traditional , adapting more slowly to change, while others are more focused on immeidate gratification. the US tends to have a short-term orientation and many asian culture have long-term focus. 4. acceptance of leadership hierarchy - cultures have varying degrees of acceptance of vast differences in power and others ancicipate greater levels of equality. the US has a balanced view on this issue. less developed colonial counterparts in asia and south america are often more districtful of wide dispersions of power 5. technology and infrastructure - international business may require factoring in wide differences in ie communications systems, transportation systems, power/water sources, training of staff, differences in accounting practices.

demand explain demand curve quantity demanded change in Q demanded (movement along demand curve) change in demand (movement of the demand curve)

demand curve - illustrates the maximum quantity of a good that consumers are willing and able to purchase at each and every price, all else being equal. note: this demand curve is similar to the aggregate demand curve, except that the x-axis here is Q and not GDP. it does however illustrate the same kind of relationship. this demand curve is the microeconomics demand curve for a certain good/product and not the total demand in the economy as a whole quantity demanded - quantity of a good or service that individuals are willing /able to purchase at each price, all else being equal change in quantity demanded (movement along the demand curve) - change in the amount of a good demanded resulting solely from change in price. changes in Q demanded are shown by movements along the demand curve. when assumption regarding price or Q change, the demand point will change along this curve ie if price of product increases , will be a move up the demand curve. change in demand (movement of the demand curve) - a change in demand is a change in the amount of a good demanded resulting from a change in something other than the price of the good. a change in demand cannot be due to a change in price. a change in demand causes a shift in the demand curve.

tariffs and quotas may help to prevent dumping. explain trade controls can protect...

dumping occurs when foreign firms want to enter a specific market or when they want to sell off excess goods. theses firms sell their goods below fmv and below the prices that domestic producers charge. trade control can protect specific industries and workers, give new or struggling domestic industries and opportunity to be successful, and shield industries that are crucial to national defense. disadvantages to trade control = potential detriment to the world economy, limitations on free trade, and potential restrictions on foreign entities that operate more efficiently than their domestic counterparts.

summary composition of business cycles : expansionary phase

economic activity is characterized by fluctuations, known as business cycles. expansionary phase: characterized by rising economic activity (GDP) and growth. during an expansionary phase, economic activity is rising above its LT growth trend. firm's profits are likely to be rising during an expansionary phase as the demand for goods and services increases. firms are also likely to increase their workforces during an expansion, and the prices of goods and services are likely to be rising

factors relevant to assessing the effect of international business operations continued. 2 large BP left but explain economic systems 3

economic systems a) centrally planned economics - some economies are centrally planned. factors of production are owned by the government and subject to restriction b)market economies - most industrialized economies (such as teh US and Japan) and market economies . the factors of production are owned by individuals c) conglomerates: establishment of integrated conglomerates creates self-sustaining entities that could not exist in the united states

elasticity of demand and supply price elasticity of demand

elasticity is a measure of how sensitive the demand for, or the supply a product is to change in price. the price elasticity of demand is the percentage change in Q demanded divided by % change in price. Ep= price elasticity of demand = % change in Q demanded // % change in price in a normal demand curve, the price elasticity of demand is usually negative. this negative price elasticity reflects the downward sloping demand curve. as price goes up, the quantity demanded goes down. a negative price elasticity coef results if the demand curve is normal. generally, the absolute value of the elasticity coefficient (positive value) is considered when elasticity problems are posed on the exam, bc it is presumed that price elasticity is negative for a demand curve

motivations for international business operations comparative advantage vs imperfect markets

entities are encouraged to look beyond the political borders in which they were organized to maximize shareholder value. several economic theories support international trade as a means of achieving improved shareholder value. comparative advantage - specialization in the production and trade of special products produces comparative adv in relation to trading partners. companies and countries use comparative adv to maximize the value of their efforts and resources. imperfect markets = resource markets are often deemed imperfect. the ability to trade freely bw markets is often limited by the physical immobility of the resource or regulatory barriers. in order to achieve more resources, companies must trade outside their borders.

cont explain exchange rate fluctuation

exchagne rate or currency risk are generally divided into 3 categories: transaction risk, economic risk, translation risk

monopolistic competition

exists when many sellers compete to sell a differentiated product in a market in to which the entry of new sellers is possible assumptions and market conditions: numerous firms w differentiated products. firms are small relative to the industry -few barriers to entry -firms exert some interest over price and market through differentiation but have more control over Q produced than over price -differentiation results in highly elastic but downward sloping demand curve -bc few barriers to entry under monopolistic competition, in the long run, monopolistically competitive firms will earn zero economic profits. if profits are positive in the short run, more firms will enter and drive down profits to zero. if firms profits are negative in the short run, firms will exit and drive up profits to zero. strategies under monopolistic competition: may include maintaining market share, but also will include a plan for enhanced product differentiation and extensive allocation of resources to advertising , marketing, product research, etc

focus/niche strategies - explain, when work well vs when fail

firms w cost leadership or differntiation strategies may choose to focus their strategy on a select small group of consumers aka niche ie consumers specialized needs and preferences. when works well - if niche large enough for demand to create profit for firm, when few firms are focussing in an area where others cannot compete in price or feature when fails - when other firms see that niche and enter market as competitors, likely reducing firm's profits/comp adv. firm also faces risk that consumers in current niche may find better product/features. if firm is not responsive to change may also fail.

explain the fundamental law of demand, substitution effect, income effect

fundamental law of demand states that the price of a product and the quantity demanded of that product are inversely related. as the price of the product increases, the quantity demanded decreases. quantity demanded is inversely related to price for 2 reasons: 1. substitution effect -refers to teh fact consumers tend to purchase more of a good when its price falls in relation to price of other goods. exists bc people tend to subsitute one similar good for another when price of a good they usually purchase increases. 2. income effect - as prices are lowered w income remaining constant, people will purchase more or all of the lower-priced products ie a decrease in the price of a good increases a consumers' real income even when nominal income remains constant. as a result the consumer can purchase more of all goods. 2. income effect

effect of inflation on debt

generally an inverse relationship bw interest rates and inflation, but interest rate adjustments often lag price level changes. when company issues fixed rate debt, locks in coupon/princpal. although fixed cash outflows in an inflationary environment benefit an entity, future interest rate reductions may may floating payments based on variable interest rates more attractive. regardless, principal payments will be lower in real terms when price levels are ricing.

types of business combinations cont horizontal combination vs vertical combination

horizontal combination = when companies in the same industry that produce the same goods or provide the same services join together under single management / leadership. both horizontal and vertical combinations offer benefits ie reduced competition, economies of scale, leading to reduced costs, expertise at various levels of production, minimized overproduction, and maximized profits vertical combination == combination of companies at different stages of the production process. the companies can be from the same industry or multiple industries. can assure teh supply of raw materials (backward integration) or provide a stable market for products sold (forward integration)

porter's five forces barriers to entry 2

identified by porter of harvard university, significant effect on the competitive env and profitability of the firm barriers to entry: firm faces the threat of new firms entering the market in which it operates 1. types of barriers to entry: rival firms face barriers to entry in form of gov regulation, supplier access, preexisting customer preferences, economies of scale, learning curve issues, including patents, trade barriers, etc 2. when new companies will attempt to enter - new companies will attempt to enter the competition when barriers to entry are low, potential high profits exist in the market, and the risk of retaliation by other firms is low. if the industry as a whole is earning a profit, other firms will desire to enter teh market. unless barriers to entry exist, firms will enter until profits fall to a competitve level. it is also possible that the simple threat of entrants will scare existing firms into keeping their prices at competitive levels.

porter's five forces - bargaining power of the customers 4

if buyers are in a position to bargain w suppleirs on conditions of services, price, quality they are a strong force in competitive market in which operate ie walmart. buyers may be quite price sensitive and change products solely based on price or may have such brand loyalty adn strong preference that they stay w product regardless of price. 1. large volume of a firm's business - if one group of customers makes up large volume of firm's business, bargaining power will impact competitive env 2. availability of info - the more info available to the buyer, the more the buyer will be able to contrast features of a product and choose one over another 3. buyer's low cost of switchign products - if cost of switching from one product to another are low, the impact on competitive env from buyers is increased. 4. high number of alternative suppleirs - when many suppliers exist, increases bargaining power

porter's five forces cont - existence of substitute products

if the firm faces heavy competition from substitute products, the ability of a firm to sustain profits is affected by the max amount that buyers are willing to pay for a product. especially true if substitutes are readily available to consumers, have equal performance, are priced at or below price of firm product. effect is further intensified when costs of the buyer switching to the substitute product are low. if few subs exist, buyers little choice of products and may be willing to pay a higher price for the products available. if close subs exist buyers may have a limit on the max price they are willing to pay and this impacts profits of the firm

price elasticity effects on total revenue 3 and summary table !!! see b5-23!

if we know price elasticity of demand for a good, we can determine how a change in price will affect a firm's total revenue. total revenue is simply the price of a good * the quantity of the good sold. 1. effect of price inelasticity on total revenue (positive relationship) - when demand is price inelastic, an increase in price results in a decrease in quantity demanded that is proportionally smaller than teh increase in price. as a result, total revenue will increase. 2. effects of price elasticity on total revenue (negative relationship) - when demand is price elastic, an increase in price results in decrease in Q demanded that is proportionallly larger than the increase in price.. total rev will decrease 3. effects of unit elasticity on revenue (no effect on total revenue if price changes) summary table summarizes the realtionship bw price elasticity of demand and total revenue

fiscal policy cont - impact of gov spending, impact of taxation

impact of gov spending - gov spending has a direct impact on industries and entities because more money devoted to national programs and activities --> increased production, lower unemployment, higher consumer spending. as spending is often targeted in different sectors, some industries and entities will benefit more than others. impact of taxation - decreased taxes result in higher net income and profits, allowing entities to potentially increase employee compensation, pay higher dividends, and have more discretionary income to invest in profitable profits. increased taxes have the opposite effect.

market structure and pricing perfect (pure) competition

in a perfectly competitive market, no individual firm can influence the market price of its product, nor shift the market supply sufficiently to make a good scarcer or more abundant. assumptions and market conditions: -a large number of suppliers and customers act indep. firms are small relative to industry -no barrier to entry, firms exert not influence over market or price -very little product differentiation (homogeneous products) -firms are price takers. price is set by the market. -firms control only the quantity produced. each firm can sell as much or little as it wants at given market price. -demand is perfectly elastic -bc no barriers to entry, the entry and exit of new firms ensures that economic profits are zero in the long run, thus firms earn a normal rate of return strategies under perfect competition: strategic plans may include maintaining the market share and responsiveness of the sales price to market conditions

income elasticity of demand define, equation, positive vs negative

income elasticity of demand measures the % change in Q demanded for a product for a given % change in income. I= % change in number of units of X demanded (supplied)/ % change in income positive income elasticity (normal good). normal good is a product whose demand positively related to income ie premium foods such as steak , where as incoem goes up demand for good increases negative income elasticity (inferior good) - if the income elasticity of demand is negative = inferior. product whose demand is inversely related to income and as income goes up demand decreases.

price inelasticity of supply vs price elasticity vs unit elasticity

inelastic if <1.0. price elasticity of supply = 0 if perfectly inelastic and veritcal curve so insensitive to price changes. elastic if price elasticity of supply >1.0 unit elastic = 1.0

effect of inflation on prices (also define inflation)

inflation = sustained increase in the general prices of goods and services. it occurs when prices on average increase over time. inflation has an inverse relationship w purchasing power. as price level increases, teh value of money (purchasing power) declines monetary assets/liabilities are fixed in dollar amounts regardless of changes in specific prices. during inflation periods, entities holding monetary assets will be hurt by inflation and the loss of purchasing power. however, entities holding monetary liabilities will benefit from increasing price levels bc they will be repaying debt w inflated currency. nonmonetary assets and liabilities and nonmonetary liabilities will fluctuate w inflation and provide reduced variability when price levels change.

cont - foreign economies explain and explain a) foreign demand b) interest rates c) inflation d) exchange rates but explain the last two!! (two each)

inflation a) higher local inflation reduces purchasing power, making imported goods more expensive and reducing local demand b) lower local inflation increases the purchasing power for imported goods, resulting in higher local demand exchange rates a) weak local currency reduces demand for imported goods b) strong local currency increases demand for imported goods

price elasticity of supply

is calculated the same way as price elasticity of demand except now measure change in Q supplied Ep = price elasticity of supply = % change in quantity supplied / % change in price

monetary policy define, and explain open market operations / discount rate

is used by a nation's central bank (federal reserve in the US) to affect the money supply , interest rates, and credit availability in the economy. monetary policy is designed to promote stable prices, maximum employment, moderate interest rates, and LT economic growth. the three tools used to implement monetary policy are open market operations , changes in the discount rate, and changes in the required reserve ratio. open market operations: involve the gov buying and selling securities. buying gov securities increases the money supply and expands the economy. selling gov securities decreases the money supply and contracts the economy. discount rate - an increase in the discount rate, which is the interest rate the federal reserve charges its member banks for ST loans, increases interest rates, discourages borrowing and reduces teh money supply, which slows the economy. a decrease in the discount rate decreases interest rates, encourages borrowing, and increases the money supply, which stimulates teh economy

differentiation strategies (product differentiation) and when succeed vs fail

may create perception that their product is better or unique quality compared to competitors (and can command higher prices) 1. works well when customers are able to see value in a product, when product appeals to dif people for dif reasons, when firms that are competing choose dif features to differentiate their products 2. differentaition fails when attempts to differentiate w/o assessing requirements of the customer for desire features, if focus too mcuh on one area and create product whose value does not exceed higher price, if firm is in a market where customer will not pay extra for unique features

measures and 4

measures or process metrics can be financial or nonfinancial and should correlate directly to the managed process. the measures are compared with expectations to monitor progress. 1. gross revenue: measure for sales etc of revenue volume in sales-driven organizations 2. customer contacts: can be used in sales-driven organizations 3. customer satisfaction: organizations using relationship marketing techniques may consider these measures 4. operational statistics: manufacturing operations might use operational statistics such as throughput times, delivery times, etc to determine the efficiency of a process

transactions explain merger vs acquisition

merger - 2+ entities combine to form a single new connection, with the stocks of all merging companies replaced w new stock in the name of the new company. usually combination of like-sized companies ie dell inc and emc merge to form dell tech acquisition - one company by another involves no new company - only acquirer remains after the acquisition. the acquired firm , which is generally smaller than acquiring firm, may retain its legal structure/name or may be subsumed by acquirere and cease to exist

methods of conducting international business operations 4 so explain international trade, licensing, franchising, joint ventures

multinational operations are structured in any number of ways. the following help define dif methods of organization. 1 . international trade - companies conduct by exporting/importing products or services 2. licensing - entities that provide the right to use processes or technologies in exchange for a fee are engaged in licensing activities. 3. franchising - franchisors are entities whose marketing service or delivery strategy provides training and related service delivery resources in exchange for a fee 4. joint ventures - take advantage of comparative advantage of one or both of the particpants in marketing or delivering a product.

divestiture cont equity carve-out

occurs when a subsidiary is made public through an initial public offering (iPO) created a new public listed company. unlike a spin off where no cash comes to the parent company, the sale of shares in teh new company generates cash for the parent as well as providing the parent with a controlling interest in the sub. the hope is this will unlock unlock the independent value of the sub previously contained w/in merged entity.

cost leadership strategies explain and when does it work well vs not

organizations may choose to achieve organization missions by selling their product or service for less than any other participant in the marketplace. undermine profitability of their competitors as a means of achieving overwhelming market share 1. when cost leadership works well - in markets in which buyers have large amounts of bargaining power and are able to switch bw competitive products without incurring significant cost. also when heavy price compeititon adn where firms can influence buyers to switch product 2. when cost leadership strategies fall - if firm focusses too much on cost cutting, may overlook tech advances that could help lower costs or overlook fact that customers may want improvements to product > lower prices

cont peak vs contractionary phase vs trough vs recovery phase

peak = high point of economic activity. it marks the end of an expansionary phase and the beginning of a contractionary phase in economic activity. at the peak of a business cycle, firm's profits are liekly to be at highest levels. firms are also likely to face capacity constraints and input shortages, leading to higher costs and higher overall price levels contractionary phase: characterized by falling economic activity and growth, and follows a peak. during a contractionary phase, firm's profits are likely to be falling from their highest levels. trough : a low point of economic activity. at this point, firms' profits are likely to be at their lowest levels. firms are also likely to experience significant excess production capacity, leading them to reduce their workforces and cut costs. recovery phase: follows a trough. during a recovery phase, economic activity begins to increase and return to its LT growth trend. firm's profits begin to stabilize as teh demand for goods and services begins to rise.

price elasticity vs unit elasticity

price elastic if the absolute price elasticity of demand is greater than 1.0. when the value is greater than 1.0, the greater the number, the more elastic the demand. unit elasticity (absolute price elasticity of demand = 1.0) - demand is unit elastic if the absolute price elasticity of demand is exactly equal to 1.0. % change in Q demanded caused by a price change == % change in price

price inelasticity (absolute price elasticity of demand < 1.0)

price inelastic if the absolute price elasticity of demand is less than 0. the smaller the number, the more inelastic the demand for the good. if price inelasticity is zero, demand is perfectly inelastic. note also that perfectly inelastic demand curves are vertical, depicting that the quantity demanded stays the same no matter how the price changes. the calculation above w a 0.5 value is an example of inelastic demand (example 1 in the book)

Plan, Do, Check, Act (PDCA)

process management also referred to as PDCA Plan: design planned process improvement Do: implement the improvement check: monitor the process improvement Act: continuously commit to the process and reassess the degree of improvement.

product cycle

product manufacture or delivery is subject to a definable cylce, starting w the initial development of the product to meet needs of domestic market. product cycle theory predicts that domestic success will reuslt in domestic competition, encouraging the export of products or services to meet foreign demand and to maintain efficient use of capacity. foreign success will in turn promote foreign competition. teh entity is then motivated to establish a business outside its boundaries to differentate itself mroe effectively and to compete w foreign business rivals

selecting and implementing improvement initiatives irrational vs rational (4 rational)

rational and irrational methods may be used to select improvement initiatives. irrational - methods are intuitive and emotional. they lack structure and systematic evaluation. based on fashion, fad, or trend. may result from immediate need for cost reduction and stem from short term viewpoint rational - structured and systematic and involve the following: 1. strategic gap analysis: external assessment and internal (organizational) assessments performed to create a strategic gap analysis 2. review competitive priorities: review of price, quality, etc. 3. review production objectives: review of performance reqs 4. choose improvement program: decide how to proceed for improvement

Business cycles - introduction

refer to the rise and fall of economic activity relative to LT growth trends. economy tends to grow over time, but the growth in economic activity is not stable. economic activity is characterized by fluctuations, aka business cycles. Business cycles vary in duration and severity. the analysis of business cycles is part of the field of macroeconomics. macroeconomics is the study of the economy as a whole. it examines the determinants of national income, unemployment, inflation, and how monetary and fiscal policies affect economic activity.

market assumptions and conditions 3

regardless of the model that represents the industry, the firm will operate best when Marginal revenue = marginal cost MR=MC -microeconomic theory holds that firms make decisions based on marginal cost and marginal revenue -the following table summarizes the market assumptions and conditions underlying perfect competition, monopolistic compeititon, oligopoly, and monopoly

offshore operations and 4 most common types

relate to outsourcing of services of business functions to an external party in a dif country. a computer manufacturer in the US ie might have its call center in india. the most common types of offshore outsourcing are: -info tech -business processes (call centers, acct operations, tax compliance) -software R&D -knowledge process (processes req advanced knowledge and specialized skill sets)

political risk

represent noneconomic events or environmental conditions that are potentially disruptive to financial operations. ultimately, political climates or actions can disrupt cash flows. although expropriation of productive resources represents the most extreme political risk, other features of political risk must also be considered though including: -bureaucracies and related inefficiencies or barriers to trade -corruption -host gov attitude toward foreign firms -attitude of consumers toward foreign firms -inconvertibility of foreign currency -war

monopoly

represents concentration of supplies in the hands of a single firm assumptions and market characteristics of monopoly: -there is a single firm w a unique product -insurmountable barriers to market entry exist -monopolies are price setters as opposed to firms in perfect competition. the firms sets both output and prices -there are no substitute products. demand is inelastic -because of insurmountable barriers to entry, economic profits are positive in the long run strategies under monopoly: strategic plans will likely ignore market share and focus on profitability from production levels that maximize profit

monetary policy cont required reserve ratio, impacts of monetary policy

required reserve ratio - dictates how much money a bank is required to hold in its vault or on deposit w a federal reserve bank. a higher required reserve ratio decreases the money supply, which contracts the economy. a lower required reserve ratio increases the money supply which expands the economy. impacts of monetary policy: has a significant effect on interest rates and economic activity. changes in interest rates have an asymmetric impact, as industries such as manufacturing and construction are more sensitive to rate fluctuations and industries such as retail and services are less sensitive. higher interest rates have a negative impact on LT manufacturing and construction projects, which often require borrowing as well as on consumers looking to buy houses and finance large purchases. higher interest costs and reduced consumer activity can negatively impact industry and entity profits. a decrease in rates makes borrowing less expensive which results in more economic activity that flows to industries and entities. businesses can then hire more people, increasing production and reducing unemployment.

regulations

rules established by a gov that guide how an industry and its entities can operate. although the extent of regulation varies widely among industries, the general purpose of regulation is to provide protections to individuals and employees, to hold entities accountable for their actions, and to safeguard the environment. some examples of gov regulations include taxes, antitrust laws, employment, truth in adv, privacy laws, email marketing laws, licensing, compensation disclosures etc. the more restrictive regulations are teh more difficult and costly becomes to maintain compliance. companies may incur significant costs to ensure that abiding by established regulatiosn and often need to prove compliance under audit scrutiny. although costs can be high, regulations may provide benefits by protecting industries adn entities from unfair competition or from actions by employees who undermine company guidelines. more restrictive regulations also make it more difficult for small and midsize buisnesses to operate bc may not have the necessary resources to comply w the regulations

divestiture cont sell-off vs spin-off

sell off is an outright sale of a subsidiary bc ie the sub core competencies do not align with the overall company's or bc lack of synergy bw company and subsidiary. legal action stemming from anticompetitive or antitrust practices may also require a sell-off. spin off creates a new independent company by separating a sub business from a parent company. a spin off can be completed by distributing stock in the new entity as a stock dividend to existing shareholders tr by offering shareholders stock in the new company in change for their stock in the parent company. spin-offs typically occur when a unit is less profitable and/or unrelated to teh core parent business. assumption is that the operations of the unit after a spin-off are expected to have more value than they did as part of the larger operation.

shared services consolidation of redundant services creates efficiency but might also result in 2 issues

shared services refers to seeking out redundant services, combining them, and then sharing those services within a group of organization. the distinguishing feature of shared services is they are shared w/in an organization or group of affiliates consolidation of redundant services creates efficiency but might result in 2 issues: 1. service flow disruption - consolidation of work to a single location can create waste in transition rework, duplication, as well as increases in the time it takes to deliver a service 2. failure demand - demand for a shared service caused by failure to do something or to do something right for a customer. failure demand results when a task must be performed for a second time bc it was incorrectly performed the first time.

government intervention in market options define and price ceilings vs price floors

sometimes the gov will intervene in a market by mandating a price different from teh "market price" this most often is accomplished by using price ceilings and price floors. price ceiling == a maximum price established below the equilibrium price which causes shortages to develop. price ceilings cause prices to be artificially low, creating a greater demand than teh supply available price floor == a minimum price set above the equilibrium price which causes surpluses to develop. price floors are minimum prices established by law such as minimum wages and agricultural price supports.

competitive advantage #2 : differentiation advantage (offering advantage)

stems from the fact that buyers are better off bc the customer perceives the firm's product to be superior in some way to those of its rivals. therefore willing to pay higher price for uniqueness. all parts of the buying decision are impacted by the perceived value of the product. after product has been differentiated, the firm must always be sure to remain profitable adn recoup the cost of the premium included w the product. this may be used by the firm in 2 ways: 1. build market share - the firm may attempt to build market share by pricing its product < what it would charge to recoup the premium with a standard number of buyers to try to recover its costs bc captures more than average share of market 2. increase price - to point where price exactly offsets value the customer perceives in the prpoduct

cross elasticity cont - substitute goods vs complementary goods vs unrelated goods

substitute goods (positive coef) - if the coef is positive, the two goods are substitutes ie if price of Y increases causes demand X increase. vs complementary goods which are negative ceof so increase in price of A decreases demand for B. vs unrelated goods - goods unrelated

lagging indicators

tend to follow economic activity ie change after given economic trend has already started. they give signals after the fact. lagging indicators include: -prime rate charged by banks -average duration of unemployment -commercial and industrial loans outstnading -consumer price index for services -consumer debt to income ratio -changes in labor cost per unit of manufacturing output -inventories-to-sales ratio

leading indicators

tend to predict economic activity. they change before the economy starts to follow a trend. the gov routinely revises the numbers as more data becomes available. thus, leading indicators are subject to change. leading indicators include: -average new unemployment claims -building permits for residences -avg length of the workweek -money supply (M2) -S&P 500 stock index -orders for goods -price changes of materials -index of consumer expectations -interest rate spread -index of supply deliveries

transactions cont tender offer vs purchase of assets

tender offer = company makes an offer directly to shareholders to buy the outstanding shares of another company at a specified price. offer may be in the form of cash or securties. shareholders of the target company have option of accepting or rejecting to offer. purchase of assets = occurs when a portion or all of the selling company's assets are purchased by the acquiring company , which may result in a dissolution of the selling company. as with a tender offer, shareholder approval must be obtained.

the laws of demand and supply

while macroeconomics focuses on how human behavior affects outcomes in highly aggregated markets, microeconomics focuses on how human behavior affects the conduct of more narrowly defined units, including a single individual/household/business firm. basic principles of microeconomic theory are very important on the CPA, but understanding the fundmentals is also important to the business manager. managears are more likely to be successful if they understand how their actions and gov policies or collective actions affect their firm. a market == a collection of buyers and sellers meeting or communicating to trade goods or services

SDLC cont - waterfall model (embedded in the 7 steps above)

characterized by dif teams of employees performing separate tasks in sequence w each team beginning work from the pre-written authoritative agreement and then ending work when the business requirements for the team have been met. the project then passes to the next team. the following are some challenges associated w the waterfall model: 1. requires a great deal of time to complete 2. benefits of new system not realzed until complete 3. no customer input and change can be difficult to manage 4. some employees may be idle before beginning or after completing SDLC step

supply - define: supply curve, quantity supplied, change in quantity supplied (movement along the supply curve), change in supply (movement of the supply curve)

the fundamental law of supply states that price and quantity supplied are positively related. higher the price received for a good, the more sellers will produce supply curve = illustrates the max quantity of a good that sellers are willing and able to produce at each price, all being equal. quantity supplied = the amount of a good that producers are willing and able to produce at each and every price, all else equal change in quantity supplied (movement along the curve) - change in amount producers willing and able to produce resulting solely from a change in price. change in supply (movement of the supply curve) change in amount of a good supplied resulting from something other than change in the price of the good. cannot be due to a change in price. causes a shift in the supply curve.

identify IT resource

the first step in assessing risk is to identify what IT resources and assets exist so that the organization can determine the base resources it needs to sustain minimum operations. this can be accomplished by inventorying all IT assets, including all computers software applications, network equipment, printers, copiers, scanners, and mobile devices w the following items documented: -date placed in service, machine specifications, make/model of hardware, oeprating system installed, software applications installed, firmware installed, assigned users and dep, cost insurance or associated warranteid

IT infrastructure explain and includes what? 5

the supporting IT architecture w/in most modern companies has multiple interconnected technological components, w the core infrastructure involving a combination of on-premise and outsourced hardware, software, and specialized personnel. these IT assets strategically interlace, enabling a network to operate w optimum efficiency includes 5: -hardware -networking devices -software -networks -mobile technology

IT outsourcing and cloud computing -it is common for some organizations to have needs to work beyond their internal IT infrastructure and utilize a third-party external service providers...

this is known as IT outsourcing and could utilize a variety of IT solutions, including cloud computing, virtualization, and application service providers. the range of services outsourced can include application software, data entry, data storage, data mgt, disaster recovery, network mgt. many advantages to IT outsourcing, however, there are also disadvantages and risks.

extracting data is typically done through what

typically done via query tools, most commonly using programming languages based on some form of SQL (structured query language). SQL was designed using english sentence patterns so that the code would be relatively easy to write and interpret. common commands ie select, from , and hwere. once dsigned and executed, results of the query can be visually displayed in a database report. end users utilize the reports to assist w data analysis and decision making.

evolving role of big data in the decision-making process

due to advances and rapid changes in technology, the type and volume of data being created have increased at rates never before seen. these increases provide both challenges and opportunities for individuals, gov, and companies alike. to leverage the power of this data, companies must first identify a data point, then capture it, store it, and eventually dispose of it, if appropriate.

pass key: an AIS differs from a DSS and an EIS due to ...

due to the high degree of precision and detail required for accounting purposes. data in an AIS is often processed and aggregated to become inputs to a DSS and an EIS to enable management to make data-driven decisions.

types of data visualizations explain line charts, column charts, bar chart

dictated by the purpose of the visualization line charts = best used when showing quantitative trends over time and can help users discover hidden trends. typically, line charts will show dates across dx-axis and numeric values y axis column charts = effective at showing comparisons. attributes on x axis, values on y axis. easily show which attributes highest/lowest bar chart = exactly the same as column chart w the x adn y axis being switched so vertical columns --> horizontal bars

divestiture 3 types

involves the partial or full disposal of a component or business unit of a company. divestiture transactions include sell-offs, spin-offs, ad equity carve outs

Enterprise Performance Management (EPM)

EPM systems aka business performance management BPM or corporate performance management CPM systems, are software solutions designed to help executives make strategic decisions. from a finance perspective, an EPM enables leaders to plan, budget, and forecast business performances and to consolidate financial results . EPMs are useful for the analysis of high level business strategies and translating them into actionable plans or strategic objectives. EPM systems are different from ERP systems in that EPM is more management-process focused whereas ERP is more focused on operational processes and information technology integration

managing risks of systems development: organizations may acquire a new system or choose to develop a new system in house. both processes have own risks but still follow SDLC. SDLC.. and 7 steps

SDLC provides a model for oganizations to create, modify, acquire info systems to meet needs of organization and users . 7 key steps: 1. plan 2. analyze, 3. design 4. develop 5. test 6 deploy 7 maintain

porter's five forces cont market competitiveness (intensity of competition) ability of rival firms to respond to change, advertising of rival firms, R&D of rival firms, Alliances of rival firms and suppliers, other factors increasing competition

1. ability of rival firms to respond to change - higher increase comp factor 2. advertising of rival firms, = more increases 3. R&D of rival firms, = increases competitive factor 4. Alliances of rival firms and suppliers = higher increases 5. other factors increasing competition ie compeittion stronger when market is not growing fast, cost of exiting market > cost to operate, etc

4 key applications (types) of data analytics

1. descriptive analytics 2. diagnostic analytics 3. predictive analytics 4. prescriptive analytics

COSO internal control - integrated framework w/in its 5 point IC- integrated framework, there are 2 categories with principles that pertain to IC over IT:

COSO created b the Treadway commission, has developed guidance and a framework covering the areas of IC , risk management, and fraud deterrence. w/in its 5 point IC- integrated framework, there are 2 categories with principles that pertain to IC over IT: 1. Control Activities: principle 11 of framework states that there should be general controls over technology to achieve organizational objectives. to establish these controls, the company must understand dependency bw general controls over tech and the use of technology in business processes. must also establish controls over relevant infrastructure, security mgt, tech, acquisition of tech, and maintenance processes 2. information and communication: principle 13 of the framework states organizations should acquire create and use quality info to spport IC. this includes identifying company's info needs, capturing sources of data, processing relevant data into useful info etc principle 14 states effective communication of info is necessary to support IC. this means communicating certain Internal info to stakeholders, including BOD and providing communication lines/selecting appropriate methods.

IaaS vs PaaS vs SaaS

IaaS also known as hardware as a service HaaS is utilized when an organization outsources any of its services, storage hardware networking services and networking components to third party providers, and is generally billed on a per-use basis. managed service providers (MSPs) are companies that provide fully outsourced IT departments to its customers PaaS platform as a service allows customers to rent tools or solutions remotely that are used to fulfill a specific buisness purpose ie pay for an online platform to sell merchandise, advertise products, or build websites Software as a service Saas - is a business model in which a company delivers and hosts subscription based software services to customers through licensing or service delivery. companies offer access to software platform via the internet and are responsible for recurring updates security enhancing and other support functions.

ETL cont explain data extraction so 1. data identification and 2. obtaining the data

data extraction can be automated semiautomated or manual. data identification = first step in extraction process - to understand the issue the business is trying to address to ensure data request has the proper scope to resolve it . this involves determining attributes to analyze, time span to use, and risks existing in the data. next the storage destination of the extracted data needs to be determined. obtaining the data - if the ETL process is automated, an application programming interface (API) will most likely be designed so extraction is matter of user application assessing teh API to obtain source data. API is means user can connect to the source application where the data is housed. 1. requesting the data- with full details on what is needed , including data file type/period etc 2. manual extraction - if manual, person may have to use specialized data mining software to obtain.

data analytics

process of taking raw data, identifying trends, and then transforming that knowledge into insights that can help solve complex business problems. teh applications used to perform analytics can range from simple statistics like sums and averages to more advanced statistical modeling or machine learning. once the ETL process has been performed, data analytics can be utilized for a variety of tasks, including validation, planning insights risk mitigation and decision support

terminology used in describing business cycles: recession vs depression

recession occurs when economy experiences negative economic growth (declines in national output). economists define a recession as 2 consecutive quarters of falling national output. during a recession firms' profits tend to fall and many firms incur losses. firms also likely to have excess capacity. as a result, during a recession, resources (including labor) are likely to be underutilized and unemployment is likely to be high depression - a very severe recession. a relatively long period of stagnation in business activity and high unemployment rates. as a result firmse xperience significant excess capacity. due to significant reduction in the demand for goods and services, it is likely that many firms will go out of business during a depression

relationships

result from a link bw primary key in one table and foreign ke in another table. this link relates the two tables, enabling users to simultaneously retrieve information from both tables

the need for change could be driven by many factors including 6

-existing systems are no longer supported by vendors who provide technical support -existing systems are no longer compatible with modern software or hardware -advances in technology have resulted in more effective systems being available -competitive advantages to be gained through improvements in processes growth or expansion of the organization, requiring more scalable solutions -shifts in consumer demand or preferences that require changes in the way technology performs

the change management process - the following steps can help a company chart its path from change inception to implementation ( a lot)

-identify and define need for change -design high level plan including goals to be achieved as a result of teh change -obtain approval from mgt -develop an appropraite budget and time line -assign personnel responsible for managing the change -identify potential risks that could occur during change/post implementation -provide an implementation road map -procure necessary resources -test the change -execute the plan/implement -review/monitor change implementation and test as needed

in general, a strong governance model will have practices and policies with the following 7 components

1. availability - info is of little benefit to an organization if it is not available to the right employees at the right time. 2. architecture - job roles and It applications should be designed to enable fulfillment of gov objectives 3. metadata - data describing other data , must be in terms of the breadth and specificity. 4. policy - data gov policies help companies translate management and governance objectives into practice 5. quantity - data integrity and quality are crucial adn include ensuring basic standards met so that no anomalies such as missing values, duplicate alvues, transposed values, mismatched records 6. regulatory compliance and privacy - info collected used stored by an organization that is considered personally identifiable info PII, personal health info PHI etc should be secured by policies designed to ensure use of data does not vioalte company policies or laws 7. security - data gov strategy should include the secure preservation storage and transmission of data

types of e-commerce 5

1. b2b - bw business entities - allows them to seamlessly interact with one another to streamline processes and establish efficient/effective relationships 2. B2C: allows businesses to interface and sell goods to customers. typically done via retail websites often integrated w a broad ERP system. stand-alone retail sites utilize shopping cart software that allows customers to buy online, integrated retail websites update modules within the ERP when online orders are placed and essentially operate the same as if sales were made in a retail store. 3. consumer-to-business C2B: reverseal of traditional model. consumers offer goods or services to a business 4. consumer to consumer C2C - online marketplace in which individual consumers buy and sell goodw w each other. intermediary company usually hosts a platform for the execution 5. government e-commerce - can be bw teh government and any other entity. gov e-commerce allows users and organizations to make, or receive and make, payments related to taxes etc

AIS cont - function of an AIS - 3 main functions

1. collect, record, and store data/transactions (specialized Journals allow for automated recording of repetitive transactions, general journals utilized for nonroutine transactions, recorded transactions automaticlaly assigned to appropriate accounting period) 2. transform data into info through compilation/reporting - as transactions are recorded, GL accounts are updated in real time allowing for quick summarization of data. AIS systems have built in reporting functions 3. safegaurd and maintain data integrity - input controls protect against errors occuring as transactions recorded. referential integrity maintains data accuracy in recorded trasnactions.

reasons for persistence of legacy systems - many entitles choose to continue to use legacy systems for 5 reasons

1. costs - cost to purchase/develop new system can be extremely high and sunk cost already invested in current system may be used as rationale to continue using 2. time - implementing new system can be time consuming, system training etc 3. user resistance - users may be comfy w existing system 4. features and customization - existing systems may be customized to meet organizaitonal needs or provide built in features difficult to replicate 5. risk of information loss - moving from a legacy system to a new system includes risks of having existing data and info corrupted or lost in transition

new process of business process development (DMADV)

1. define design goals (consistent w customer demands) 2. measure CTQ (critical to quality issues) 3. analyze design alternatives - to produce the new product 4. design optimization - use modeling techniques to determine optimization of proposed process 5. verify the design -implement and test the plan

cont data storage requirements 2

1. entity integrity - primary keys must be utilized for a database to establish and maintain integrity. this means each table must have a unique primary key as a record identifier 2. referential integrity - because databases are relational in nature, a change to a primary key in one table must cause a change to any related foreign key in a linked table. this maintains relational and referential integrity

communication - most companies utilize email as their internal and external core communication platform. organizations also utilize a number of communication options beyond email, including...7

1. hardwired telephone networks 2. voice over internet protocol (VoIP) telephones 3. virtual meetings via videoconferencing 4. instant messaging 5. live chat options 6. texting via smartphones 7. social media platforms

likelihood - within the business impact analysis, risks can be categorized in terms of their likelihood of occurance 3

1. high likelihood ie highly probable or controls to prevent it are ineffective 2. medium likelihood ie could occur but controls in place that may impede successful exercise of the vulnerability 3. low likelihood ie risk is improbable or controls are in place to prevent or significantly impede successful exercise of the vulnerability

5 steps in TOC theory of constraints

1. identification of the constraint- use of process charts or interview reuslts in identification of the constraint that produces suboptimal performance 2. exploitation of the constraint - planning around it uses capacity that is potentially wasted by making/selling the wrong products etc 3. subordinate everything else to the above decisions - mgt directs efforts to improve performance of the constraint 4. elevate teh constraint - add capacity to overcome it 5. return to the first step - reexamine the process to optimize results

implement the response - once management has a list of categorized resources, risks, and actions, it can work to address the areas that are most likely to harm the organization. typically, mgt would review all high-impact resources that have high or medium risk actions and evaluate the mitigation strategy using the following 4 steps

1. identify mitigation recommendations ie IT solutions, personnel impact, procedures 2. evaluate mitigation recommendations - review to ensure appropriate safeguard 3. cost-benefit analysis: perform a cost-benefit analysis by analyzing the expected loss based on impact and likelihood categories and then compare to cost of implementing proposed recommendations 4. choose, plan and implement using appropriate timeline .

subsection of change management risks: selection and acquisition risks 3

1. lack of expertise - risk when selecting/acquiring software that purchasing agent does not have the expertise or organizational perspective to purchase software meeting organizational needs 2. lack of formal selection/acquisition process - risk that organization does not have or follow formal process as it pertains to software. thsi could resultin overspending, inappropriate related party transactions/kickbacks, or software that does not align w IT gov strategy 3. software/hardware vulnerability and incompatability - risk that proper safeguards and security freatures do not exist or that not compatible with one another or w resources remaining in production

IT outsourcing disadvantages 3

1. less control - less control over how IT functions are performed and grants outsourced firm access to sensitive info 2. quality control ie outsourcing org may not perform up to the expectations and quality desired 3. immediate access to IT support - if the outsourced organization is not always on site there may be a perceived lack of access to IT personnel even if most problems can be resolved remotely

IT outsourcing advantages 4

1. lower costs 2. expertise - instead of purchasing training for internal employees, which can be costly and time-consuming, outsourcing IT functions gives organizations access to IT experts on a fractional cost basis. this is useful for smaller companies that periodically need advanced IT exerptise but cannot justify paying for full time staff w those capabilities 3. resources - organizations have access to specialized and high quality resources 4. enhanced focus on the core business - if an organization outsources its IT functions, it can spend less time on the ocmplexitie sof IT and more time on oragnization's growth and strategy

three types of CRM

1. operational CRM - automation of tasks such as sales, service, and marketing to streamline and simplify business processes. goal == generate leads and convert these into customers 2. analytical CRM - designed to collect and analyze customer information and provide insights to mgt and aid in the decision making process 3. collaborative / strategic CRM - enable the organization to achieve its strategic goals by providing collaboration and sharing of customer info across functions such as sales, marketing, service, and support teams

outsourcing controls one of the main drawbacks to outsourcing change mangement is lack of control over the process. examples of outsourcing controls include 3

1. outsourcing policies and procedures: establishing firm rules regarding outsourcing/procedures and protocls 2. system and organization controls (SOC) reports - organizations should request and review SOC reports of employed service organizations on an ongoing basis as long as the service organization is being utilized. these reports provide independent assurance that a third party's services are being performed as described. 3. utilize key performance indicators (KPIs) - establish/agree on KPIs w outsourced vendors, creates clear expectations for the vendor and allows outsourcing company to monitor performance over time

change management and new systems controls - once all risks in change management process have been identified, controls are designed to minimize possibility that the inherent risks will cause disruptions or negatively impact IT systems. controls include A LOT - but describe 1, polices and procedures, 2. emergency change request 3. standardized change request, 4. impact assessment 5. authorization

1. polices and procedures - clear change mgt guidelines are needed to outline how the change management process should be executed from selection to integration to maintenance 2. emergency change request - emergency chases arise when a crisis or time sensitive threat requires a quick response ie operating system patch that exposes a company to severe security threats 3. standardized change request - by using consistent forms and request protocols. this helps complete all required changes in a timely way 4. impact assessment - documentation noting effect change will have on organization activities or potential disruptions to help prepare 5. authorization - requiring levels of authorization for changes - to protect against unauthorized modification to project scope

data storage attributes 3

1. relevance - data repositories are created for specific purposes, so defining the purpose helps users understand a repository's relevance. if the repository is a database, then part of establishing relevance involves directly describing the attribute that has been labelled as the primary key 2. elements to be included and excluded: denoting which attributes are included outlines the universe of data points houses w/in a repository. for more narrowly focused repositories such as data mart, the list of attributes will be more limited potentially allowing users easier access to a larger amount of data w/o having to sift through unneeded records. for larger data sets, more attributes are often needed bc they feed operational data stores, data warehouses, data marts, and data lakes 3. relationship bw elements include validity, completeness, and accuracy: validity pertains to data being entered in the correct manner ie teh units for a measure of length are all entered in inches. completeness simply means no required data is missing from the data set. accuracy = data entered is true and free from errors.

IT outsourcing risks . when IT is outsourced, risks exist that must be mitigated including 4

1. security and privacy practices - security implemented and maintained by the service provider may not meet the standards maintained by the organization, potentially leading to the following risks: inadequate controls/ineffective implementation of controls , misuse or abuse of an organization's data by service provider's employees 2. data accessibility - in addition to the risk of confidential and private data being leaked, there is the concern that data will become inaccessible, overwritten, or lost 3. data disposal - IT outsourcing is typically in effect for a contractual period of time. once the contract is over there is a possibility that a customer's confidential data is not effecitvely deleted adn can be inappropriately accessed in the future. 4. vulnerability for attacks - if mulitiple firms sharing computer resources using outsourced firm- an attack on one could impact others.

sequence of events in an AIS 7

1. transaction data from source documents is entered into the AIS by an end user, via internet by a customer or automatically through readable technology such as bar codes or RFID tags 2. original source documents, if they exist, are filed 3. transactions are recorded in the appropriate jounral 4. transactions posted in GL and subsidiary ledgers 5. trial balances prepared 6. adjustments accruals and corrections entered as needed 7. FS and reports are generated

dimensions of big data 5

1. volume - the quantity or amount of data points. volume may also factor in teh size of the data in terms of storage requirements. some data points consume more storage than others. 2. velocity - the speed of data accumulation or data processing. some data points created on a continuous basis and therefore have a higher velocity than other data points 3. variety - the range of data types being processed or analyzed . three general categories : structured (data w defined organizational format w specific parameters ie numerical, alphabetical, etc ie relational database). , unstructured -format does not have predefined parameters and generally lacks organization. could be a review post for a product online or text in an instruction guide. semi structured is a hybrid bw the two ie CSV file, no restriction on the size or length of the data points but each separated by a comma. 4. veracity - reliability, quality, or integrity of data. high quality = both accurate and timely. 5. value - the insights big data can yield. this dimension is vital bc not all data translates ito actionable insights.

TQM cont 2. Continuous Improvement 3. workforce improvement 4. top mgt support 5. objective measures 6. timely recognition 7. ongoing training

2. quality is not viewed as an achievement in a TQM organization. the organization constantly strives to improve its product and processes. quality is not just the goal, it is embedded in the process 3. workforce involvement - TQM organizations are characterized by team approaches and worker input to process development and improvement. small groups of workers that use team approaches to process improvement are called quality circles. 4. top mgt support - top management must actively describe/demonstrate support for the quality mission of the organization. mgt can communicate support by meaningful delegation of authority to quality circles and involvement of suppliers 5. objective measures - measures of quality must be unambiguous, clearly communicated, and consistently reported 6. timely recognition - acknowledgement of TQM achievements must occur to encourage the ongoing involvement of the workforce 7. ongoing training - TQM training should occur on a recurring basis to ensure workforce understanding and involvement.

SDLC cont steps 4 and 5 4. develop 5. test

4. develop - technical implementation plan creates in prior phases is executed in the develop. buildings nad rooms are prepared, hardware purchased/delivered, and programmers create proprietary software to run company's new product if applicable. teh new stem is built/improved at this stage and most of the project budget is spent, having committed dollars to employ experts and purcahse assets. changes to the plan become more expensive in this stage bc each steps builds on prior steps ie if chagnes in develop stage not supported by original design stage architecture 5. test - system is checked for adherene to the business requirements. the new / improved system must function as planned in the analyssi and design phases. in addition to backward looking testing, which tests against initial reqs, forward looking testing is conducted to see how well employees and customers cna perform tasks (aka user acceptance testing)

change management and new systems controls - once all risks in change management process have been identified, controls are designed to minimize possibility that the inherent risks will cause disruptions or negatively impact IT systems. controls include A LOT - but describe 6. separation of duties 7. conversion controls 8. reversion access 9. pre-implementation testing 10. post-implementation testing 11. ongoing monitoring

6. separation of duties - separating job roles to protect against assets/info being utilized improperly 7. conversion controls - help minimize data conversion errors relating to impcted IT assets/resources 8. reversion access - some changes may cause unexpected complications so it is important to have ability to revert to the prior system that existed before the change. can be accomplished through parallel implementation in which organization maintains 2 environments at the initial onset of the change, one w change implemented (development env)and one w/o change implmented (production env). 9. pre-implementation testing - before moving change into production, test to determine if functioning properly 10. post-implementation testing - after change moved into production, reconciling transactions processes in new env agianst same transactions processed in the previous environment (validates whether implemented properly) 11. ongoing monitoring - continuous periodic reviews after implementation to promote long term success

cloud computing

= rental storage space, processing power, software, or a combination, on remote servers from another company rather than buying or building these components. when a company acquires its own infrastructure as opposed to renting it, the company must purchase enough resources to cover its peak usage so the business can accomodate high volume periods. during low volume periods, this costly infrastructure is idle. for the customer of cloud computing, the service offers infrasturcture elasticity , renting only as much as needed on a minute to minute basis. processing and storage are rented in increments of computing power used per units of time, so the customers pay smaller amounts during low volume periods and larger amounts during high volume period. customers benefits bc cloud service provider performs all maintenance and tech support on this hardware. cloud computing services are offered by some companies w large computing infrastructures to either lease excess capacity during off-peak times or use purpose-built infrastructure to support their customers. cloud computing takes advantage of tehse companies' superior skills and experience managing such infrastructure.

ERP (Enterprise Resource Planning) explain, faciliates what benefits 5

ERP= cross-functional systems that are utilized to support different business functions and allow for the integration of information across departments such as accounting, customer mgt, finance, HR, inventory mgt, manufacturing, marketing, vendor management. ERP facilitates real time communication bw systems and typically operates under a centralized database and user interface. this interface may offer a number of modules that function independently or as an integrated system that allows data to be shared across dif departments or visions of an organization. ERP benefits - ERP systems provide great benefits to an organization w a focus on integration of all enterprise data into single channel for simplifications. ERP benefits 5 1. stores info in a central repository so that data is only entered once and then accessed by various departments 2. acts as the framework for integrating/improving an organizatin's ability to monitor and track sales, expenses, customer service, distribution, and many other business functions 3. provides vital cross-functional info quickly to managers across the organization in order to assist them in teh decision making process 4. improves customer service as info is easily accessed and shared 5. allows greater access controls so that user privileges for multiple systems can be centrally managed

chosen strategy must then be supported by IT strategy and IT governance... explain IT strategy and 5 IT factors that impact a company's corporate strategy

IT architecture design can have significant impact on how a company executes its corporate strategy. aligning IT strategy w corporate strategy will as such optimize an organization's efforts in achieving objectives. following It factors impact company's corporate strategy: 1. virtual/physical network design - newtorks can be physical/virtuall/centralized/decentralized. computing power of company key element in IT strategy ie for companies w consistent power needs, would make sense to invest in a physical network w equipment on site as this is usually more cost effective over LT and demand needs could be reasonably estimated. 2. centralized/decentralized network design - organizations w multiple offices across a wide range of locations may have dif needs than those w one or a few closely located officers. 3. cybersecurity - will impact ability to achieve goals 4. disaster recovery and business continuity - speed at which company can spin or recover systems /applications after loss of service will be more important to certain organizations than others. 5. available IT personnel -staffing for IT needs can be insourced outsourced or both. companies w corporate strategies that heavily rely on IT may be more likely to employ their own IT staff.

aligning IT governance w organizational objectives - Vision vs corporate strategy

IT governance practices that are aligned w an organization's strategic goals and objectives will empower IT resources so that the company effectively achieves those targeted results. goals and objectives of an organization are manifested in its overall vision/strategy vision: company's vision represents its aspirations and goals while its strategy is what helps the company reach those goals.these goals are typically described in a vision statement. accordingly a company's IT gov policies should be designed to faciliate the achievement of that vision. corporate strategy : the way an organization achieves goals established by is vision. strategy shapes an organization's operations and business model which could take various forms ie low cost leadership strategy, differentiation, ESG, etc. chosen strategy must then be supported by IT strategy and IT governance.

cont total quality management explain and customer focus

TQM represents an organizational commitment to customer-focused performance that emphasizes both quality and continuous improvement. total quality management identifies 7 critical factors, outlined below. customer focus: TQM organization is characterized by the recognition that each function of the corporation exists to satisfy the customer. customers are identified as both external customers (ultimate recipient or consumer of an organization's product/service) or internal customer (each link in teh value chain represents an internal customer)

change management risks

a key component of change management is to identify potential risks that could occur as a result of the change. these risks are present in all steps of change from acquisition to implementation and can affect existing systems/processes/employees

evaluate outcomes explain and 3 risk actions to classify

a list detailing resources by tehir impact and likelihood allows mgt to determine appropriate response including accepting the risk w no mitigation efforst, avoiding risk completely by removing the resource, or implementing some form of mitigation. responses can be classified using the following risk actions : 1. high action (H) take corrective action ASAP 2. medium action (M) implement corrective actions w/in a reasonable time frame 3. low action (L) take no action, accept the level of risk.

SDLC cont - step 6 deploy and 4 methods

after the system has been fully vetted and tested, the organization will choose and document an implementation strategy to deliver the system to end users. there are several methods available for deployment that depend on available time, cost and cost of failure to the business: a) plunge or big bang - entire system immediately delivered to all customers and clients so lowest cost highest risk b) ramped (rolling, phases) conversion: portions of the new system replace corresponding parts of the old system, one piece at a time (above average cost, below average risk) c)A/B testing (pilot, canary) - a subset of users gets the new system while the old system is still in use and assigned to current and new customers. after successufl deployment to the subset of users, the new system is deployed to the remaining users so average cost average risk d) blue/green (/other pair of colors) or shadow: new system is fully deployed in parallel w the old system; a routing layer directs progressively more duplicated traffic to the new system. once the new system is handling all the traffic, the old sytem is deactivated (highest cost, lowest risk).

people cont explain 6. end users 7. external stakeholders

all system end users important members of the governance development process bc best equipped to understand the day-today tech needs for organizational activities. 7. external stakeholders - such as customers or vendors may drive how organizations utilize online commerce platforms while external stakeholders ie auditors or regulators may drive change in IT gov structure to comply w existing or changing regulatory standards

ERP Disadvantages 4

although ERP systems provide many benefits, there are certain disadvantages and barriers to implementation: 1. the time to successfully implement an ERP system can be significant 2. ERP systems can be extremely cost prohibitive bc the required hardware, software, and training can include significant development and implementation costs as well as ongoing maintenance costs 3. integration of all business units can be complex 4. ERP implementation causes significant changes to business processes which can lead to errors, user resistance, and low adoption rates.

understanding and defining IT governance

an IT governance framework outlines how leadership accomplishes the delivery of mission-critical business capabilities using IT strategies, goals, and objectives. IT governance is the duty of the BOD and executive management, who create applicable policies and procedures, to deploy to sustain those critical capabilities. within an IT governance framework, data governance policies focus on effective mgt of data. data must be available to users, have proper integrity, be in a usable format, and be secure. this is accomplished thru synchronization of resources. although no standard gov model applies to all organizations, multiple data governance frameworks exist to help organziations create tailored models using standards as a guide. in general, a strong data gov model will have practices and policies with 7 components.

governance frameowrks

an IT governance framework that is comprehensive and dynamic allows organizations to accommodate the rapidly changing technology landscape while also consistently meeting stakeholder needs. following list of frameworks of 2 organizations that issue guidance and best practices for establishing an effective IT governance system: 2 so COSO-internal control - integrated framework and ISACA's Control objectives for information and related technology (COBIT) framework

steering committees and 5 responsibilities in oversight role

an executive level information systems steering committee, aka project steering committee is responsible for the oversight of the info systems function. this committee consists of high level mgt and experts which may include executives such as the CIO, controller, IT department heads, and others in a position of authority to make change. in its oversight role, steering committee's responsibility includes the following 5: 1. developing and communicating strategic goals 2. reviewing the IT budget and the allocation of IT costs 3. providing ongoing guidance and addressing big picture issues that arise 4. ensuring management engagement and participation 5. monitoring the project development team's progress. due to authority level of members, steering committee has a more holistic view of enterprise than teh project mgt team, enabling them to address concerns that may go across business units and departments while also facilitating coordination and integration of info system activities.

systems and organization controls (SOC) the system and organization controls (SOC) reports...

are a collection of reports developed by the AICPA to be issued by CPAs in connection w the evaluation of system-level controls or entity-level controls for service-based firms. 3 reports that these types of engagements can produce: SOC 1, SOC 2, SOC 3

evolving the IT infrastructure

as IT equipment reaches the end of its useful life and as technology advances, organizations update their IT infrastructure over time to keep pace with these shifts or to be early adopters. these may involve upgrading existing software and hardware , acquiring and changing to new hardware/software, or even developing infrastructure in house. all of these approaches can be effective however potential risks

customer relationship management system (CRM) objectives of CRM ( a lot

become strategic drivers for organizations. CRM is a software that enables organizations to monitor and manage interactions bw organization and its past current and potential customers CRM objectives - organizations work to understand their clients and consumers better to achieve the folowing : -enhance existing customer satisfaction to improve customer retention and spending -attract new customers -enhance targeted marketing/promotions to new and existing customers -anticipate customers needs to drive sales and satisfaction -enable cross-selling and upselling of products and services -forecast sales and manage sales staff -manage sales leads

achieving these objectives of CRM can lead to..3

better brand recognition, higher revenue, higher profits

systems development and new systems risks subsets cont explain c) technical risk d) project management risk e) user resistance risk

c) technical risk - often major factor when developing a new system. system development is driven by need for updated technology that requires technical knoweledge which is somethign internal development teams do not possess. this means companies may not be adequately staffed to handle problems requiring techincal knowledge which may lead to system downtime and latency problems. also w project design if technical design and functionality do not align w user needs this may require significant rework d)project mgt risk- systems development requires strong guidelines, leadership, support etc. risk that the project mgt team does not have clearly defined leadership, team member roles, project goals. these often come w high stress and may cause employee turnover, dissention, or issues w/in the team that can delay the project. excessive turnover can lead to a loss in producivity as knowledge and labor is lost in team member transition e) user resistance risk - when developing a new system, always a risk that employees will not accept the system. user ristance can include ie refusal to use the new system, treating it as a scapegoat, or blatant damages. establishing effective communication in system dev and including employees as stakeholders in design can reduce user resistance. project steering committee , which is made up of sr mgt, should be kept informed of project progress and should be occasional meetings for open discussions and addressing issues d) project management risk e) user resistance risk

additional efficiencies exist when a company's data is in one virtual location even if company operations are in many locations. data processing can be performed more efficiency from .... that single location, and IT hardware support may be reduced throughout the company. bc the companies providing cloud services provide distributed redundancy among many data centers, having cloud data storage reduces the likelihood that data is lost in an attack or a disaster

can be performed more efficiency from .... that single location, and IT hardware support may be reduced throughout the company. bc the companies providing cloud services provide distributed redundancy among many data centers, having cloud data storage reduces the likelihood that data is lost in an attack or a disaster

big data governance - provides ability to gain insights but still comes w challenges big data confidentiality big data privacy

challenges include ethical and legal concerns pertaining to the organization itself, employees, customers, and stakeholders. an organization's governance program and policies should address these issues in some manner, providing guidance on how sensitive data should be captured, maintained, and disposed of during its life cycle w/in company's possession an organization's confidential info must be safeguarded to protect it from unauthorized access and exploitation. those w/in an organization responsible for collecting /maintaining confidential data have a responsibility to ensure appropriate access controls in place. ie employee records, banking, trade secrets, marketing strategies big data privacy - customer and patient data must be safeguarded from unauthorized access to meet customer privacy expectations as well as HIPPA and GDPR. to maintain compliance organizations must implement strong gov practices surrounding what type of data can be collected, disclosures , and controls

change management overview - defining change management

change mangement = describes the polices, procedures etc employed to govern change in an oragnization. these changes may be initiated from w/in the organization but they usually have an impact on IT infrastructure and governance no matter the source -the scope of change to be managed can range from implementing new marketing techniques to more complex and infrequent initiatives like overhauling an organization's IT infrastructure. regardless of the scope or size of a change management project, potential risks need to be mitigated to minimize disruption to core business functions and operations

SCM cont - objectives and 4 functions SCM benefits

common objectives of SCM include achieving flexibility and responsiveness in meeting demands of customers and business partners. SCM systems generally incorporate 1. planning (demand forecasting, product pricing, inv mgt) 2. sourcing (procurement, credit, collections) 3. making (product design, production scheduling, facility mgt) 4. delivery (order mgt and delivery scheduling) core benefits of an integrated SCM include enhanced quality control due to greater transparency and access to data. SCM systems reduce cash tied up in inventory, which increases cash flow and its predictability. SCM systems also improve forecasting for procurement, delivery, and production due to better visibility of data from teh start of the supply chain to the end.

CRM strategies 3

customer relationship mgt systems are designed to heavily focus on customer needs. CRM achieve objectives by: 1. collecting and capturing info about customers to create customer profiles that include data points such as name address age email spending preferences, satisfaction (customer info/satisfaction can be collected from cusotmers w loyalty cards etc, can also be derived indirectly through data mining of social media/online review) 2. creating personalized experiences and promotions for individual cusotmers 3. using business intel to automate recommendations and cross-selling opporutnities

use of data analytics - 6 uses data analytics

data analytics can be used in many aspects of business to optimize the decision making process 1. customer and marketing analytics - obtaining customer data to build consumer profiles and analyze spending preferences allows organizations to optimize their marketing strategies. 2. managerial and operational analytics - usually run in real time to maximize efficiencies w/in organization. can be done to monitor material and labor costs and make decisions in real time. kPIS also 3. risk and compliance analytics - organizations can monitor their transactions through continuous auditing, continuous monitoring, and continuous reporting to ensure all transactions meet all compliance objectives 4. financial analytics - allow organizations to monitor financial performance through data mining and ratio analysis on a continuous basis 5. audit analytics - typically 4 types of analytics so assessing risk, providing assurance aroudn certain operations, establishing thresholds/expectations, improving quality of audit by testing full populations 6. tax analytics - gov entities organizations tax accoutnants etc use to organize ax info, improve tax planning, monitor tax performance indicators

defining data and information

data can be defined as a fact, occurrence, instance or an otherwise measurable observation. data comes in many dif forms ie numerical , alphanumerical, images, video, audio. acquired additional value that can then be used for decision making

data dictionary database views (logical vs physical)

data dictionary - metadata, provides information about the data in a database. typically lists each attribute and denotes the features and limitations of that attribute. often include data type (integer, date, text), description (ie SS number, date of hire, address), field size or length, whether data is primary, foreign, non-key attribute. database views : logical view is how the data appears to a user. it is what the user sees. physical view pertains to how the data is actually stored w/in the database.

decision support system (DSS) explain and 2 important aspects

decision support system is an extension of an MIS that provides interactive tools to support day to day decision making . a DSS may provide information, facilitate the preparation of forecasts, or allow modeling of various aspects of a decision. aka expert system and may be either an extension of a larger management info system or an independent application. 2 important aspects: 1-what-if scenarios: decision support systems are important to acheiving organizational goals bc can model "whati if scenarios" and help drive management decisions. a DSS is often used for forecasting activities of managerial importance such as production, planning, expense, adn revenue projections, and expected growth based on assumptions of potential industry and organizational changes 2. artificial intelligence : a DSS designed to rely heavily on artifical intelligence AI aka expert system. traditional DSS is designed to facilitate the decision making process, but expert system is designed to mimic knowledge and decision making abilities of the users who employ them so that decisions can be automated. examples of DSS ie production planning , inventory control, revenue optimization

demand flow and relationship to JIT and Lean

demand flow manages resources using customer demand as the basis for resource allocation. demand flow contrasts w resource allocations based on sales forecasts or master scheduing relationship to JIT - that focus on efficient coordination of demand for goods in production w supply of goods in production. kanban systems which visually coordinate demand requirements on the manufacturing floor w suppliers, are used to coordinate demand flow. relationship to lean - demand flow designed to maximize efficiencies and reduce waste. one-piece flow manuf environments, in which components move progressively from production function to production function, benefit form demand flow ideas.

E-commerce

electronic commerce ("e-commerce") platforms facilitate the sale of goods and services using the internet. the benefits of e-commerce are that it removes overhead costs, creates markets that might not exist otherwise, promotes competitive pricing, allows for product comparison more quickly, and provides parity in info among market participants. these benefits do come with the drawback of lag times in shipping for physical products, system vulnerability, potential theft of personal information, and often there is less human customer support available.

networking devices - includes 5 but explain first 3

enable connectivity and communication bw devices on a computer network. includes 5: routers, switches, gateway, servers, firewall routers - manage network traffic by connecting devices to form a network. they read the source and destination fields in info packet headers to determine the most efficient path through the network for teh packet to travel. they also act as a link bw modem, which connects a network to the internet, and the organization's switches, if there are no switches then router will connect directly to a user's device. switches = similar to routers in that connect and divide devices w/in computer network. however, switches do not perform as many advanced functions as a router such as assinging IP addresses. the same way traditional power strip converts one electrical outlet into multiple, a network switch can turn one network jack into several so can share one network connection gateway - computer or device that acts as an intermediary bw dif networks. transforms data from one protocol into another so that info can flow bw networks. a protocol is a rule or set of rules that governs they way info is transmitted, w one of the most common protocols being that which is used for internet known as TCP/IP. a gateway interprest dif protocols and converts them into appropriate format to faciliate network movement ie bw company's network and itnernet

EIS executive information system

executive information systems provide senior executives with immediate and easy access to internal and external information to assist in strategic decision making. an EIS consolidates info internal and external to teh enterprise and reports it in a format and level of detail appropraite to senior executives. an EIS may stand alone or a subsystem of a larger mgt info system. these systems often present data in high level reports and visualizations that allow for big picture decision making to ensure alignment with overall strategic objectives. ie sales forecasts, profit plans, KPIs, macreconomic data

relational database concepts cont fields vs data types vs database keys (primary vs foreign)

field = space created at the intersection of a column and row in a table in which data is entered. info placed inside the field is known as "data values". data types = tell us the category of data. data may be numerical data such as integers, text such as a single character or a string of characters, or boolean which is simple yes/no or true/false database keys = act as unique identifiers and create relationships within relational databases. primary = unique identifiers for a specific row w/in a table and are made up of one or more attributes. each row must have a unique primary key. foreign key = attributes in one table also primary keys in another table ie customer id may be primary key in one table and foreign key in another table

cont geographic maps symbol maps pie charts pyramid flowchart

geographic maps = geographic or filled maps demonstrate values on a geographic map that are typically colored or shaded in a manner to signify numeric values symbol maps = demonstrate data on a geographic map through use of symbols ie filled circles to help users compare/contrast values pie charts = shows proportions of a whole value and are presented as a circle representing 100% value, which is then subdivided into slices representing proportional breakdown pyramid = understanding underlying foundations or building blocks can be effectively portrayed using a pyramid chart. this is most helpful when teh bottom layer represents an action or a target that must first be achieved before the next layer up can take place. flowchart = maps out a process that has beginning and ending steps and a series of steps in bw . these are commonly used in project management to show different phases or milestones across a period of time

SOC 2

governed by SSAE 18 but is for users who need attestation concerning controls as they relate to security, processing integrity, availability, and privacy. these reports are important for vendor mgt, oversight, risk mgt, corporate gov, and regulatory mgt 2 types: type 1 is report of mgt explanation or description of a given service company's system and suitability of control design type 2 is report of mgt explanation or description of a company's control design adn its operating effectiveness of IC

SOC 1

governed by SSAE 18, objective is to provide assurance that the service organization's controls are designed and operating effectively so that the FS are not negatively impacted. 2 types of SOC 1 reports: 1. type 1 focuses on fairness of presentation of mgt description of the service organization's system and suitability of the design of the controls to achieve related control objectives included in description 2. type 2 report focuses on the fairness of the presentation of mgt description of the service organization's system and the suitability of the design and operating effectiveness of teh controls to achieve related control objectives included in teh description throughout a specified period.

networks

group of computers and other machines interconnected electronically using a series of networking devices so that one group of uses may securely share resources networks can be wired or wireless and use a variety of hardware to enable connectivity. common types of networks: -local area networks (provide network access to a limited geographic area like a home or office) -wide area networks (WANS) which provide network access to a larger geographic area such as cities regions or countries. largest WAN is the internet.

the importance of IT governance

has evolved from a basic support function and storage tool to a vital asset used in virtually all business processes. this evolution has required organization to develop new or modify existing IT governance policies to align IT infrastructure w organizational strategies and goals a robust IT governance framework can help achieve this goal by providing a clear understanding of all stakeholders and key functions involved including people processes tech, performance metrics, risk mgt, IT dep operations, and what benefits result from IT initiatives

Predictive Analytics

helps forecast future data points by transferring insight into foresight, projecting what will happen based on historical data. includes: regression analysis , classification analysis (previously labelled data points and allocated into similar groups to make predictions about the future), decision trees (begin w single decision node that can have 2+ outcomes then each successive outcome can have 2+ outcomes and when drawn out resembles a tree)

evaluate impact and likelihood of risks - those identified resources should be categorized by the impact of loss, then by likelihood of that loss occurring

impact analysis helps determine the criteria for categorizing the list of info resources as high, moderate or low related to the effect on day to day operations. criteria include characteristics such as how critical asset is to business operations, cost of a failure, publicity, and any potential legal or ethical issues. 1. high impact (H) under high-impact category the department a)cannot operate w/o this resource b)may experience a high recovery cost c)may fail to meet the organization's objectives or maintain its rep 2. moderate impact (M) - under a medium impact category, teh dep a)could partially function temporarily for a period of days or a week b)may experience some cost of recovery or c)may fail to meet organization's objectives or maintain its reputation 3. low impact (L) -a)could operate for extended period of time b)may notice effect on achieving organization's objectives or maintaining its reputation

pass key w planning and analysis

in some models, planning and anlayze combined and called the requirements phase. less frequently, "development" is used for plan and analyze and" production" is used for "develop"

descriptive analytics

indicate what happened. this form of analytics summarizes the activity that has occured w/in a given attribute ie # of click-throughs on a link in a direct marketing email would be a form od descriptive analytics. include: observing summary statistics like dataset min/max/mean, sorting data to reveal ranges or patterns , analyzing data based on age location time income etc

ISACA's Control Objectives for Information and Related Technology Framework (COBIT)

info systems audit and control association (ISACA) is a nfp organization that was formed to help companies and technology professionals manage, optimize, and protect IT assets. to accomplish this, ISACA created teh controls objectives for information and related technology (COBIT) framework which provides a roadmap that organizations can use to implement best practices for IT governance and management. governance stakeholders: COBIT distinguishes bw governance adn management, recognizing them as 2 unique disciplines that exist for dif reasons and require dif sets of organizational resources. organizational governance is typically responsibility of BOD, consisting of chairperson and organizational structures. mgt is responsible for daily planning and admin of company operations, generally CEO, CFO, COO etc. mgt is selected and guided by BOD

types of loading 3 so initial (full) vs incremental vs full and load verification

initial loading = entire data set is loaded into a repository. this is referred to as an initial load if the data being loaded does no have any prior iterations in the repository. incremental loading = only differences bw existing data and new data are added tot he data repository - this would e done after an itial load has already been executed and may be done in either eral time or in batches full refresh loading - an entire data set is loaded into repository, replacing the previous load. load verification = once data is loaded into repository, it is vital to validate it to ensure no data lost in the process. this will mirror the validation exercises performed in teh extraction and transformation processes.the load should be visually inspected for discrepancies. the record count reviewed to ensure matches w what was expected , descriptive statistics and sample audits should be performed to verify accuracy and completeness

SCM (Supply Chain Management)

integrated SCM solution unifies business processes beginning w the original supplier and ending w the customer, including activities like purchasing, materials handling, production planning/control , logistics and warehousing, inventory control, and product distribution/delivery. SCM systems may perform some or all of these function. SCM concerned w the 4 important characteristics of every sale: what, when, where, how much ie customers whether business or consumer generally expect ie goods received match ordered, good delivered on or before date promised, goods delivered to correct locations, cogs low as possible / reasonably priced

5. data visualizations types of data - 2 broad categories

interpreting insights from Big data analysis can be challenging but communicating those insights effectively can be even more difficult. this makes selecting the right communication technique important. . two broad categories of data; 1. qualitative data - nonnumerical and considered to be categorical in nature. either nominal or ordinal. nominal = simplest form of data, cannot be ordered or ranked. ordinal = categorical and not quantitative but can be ranked in a meaningful way 2. quantitative data = numerical in nature. may be discrete or continuous. discrete values are whole numbers and can only have certain values. continuous data can take on any value within a given interval

data management storing data in relational databases

key for every organization. ensuring that the data is maintained and stored is vital to the decision making process. storing data in relational databases - w/in an organization data can be stored in a variety of ways. however, one of most efficient/effective methods is to store data in a relational database this allows data to be stored in dif tables and tables linked through relationships using key fields. this differs from more traditional methods of storage ie flat files, which are files that contain plain text w no structural interrelationships w/in that file.

lean manufacturing - explain waste reduction, continuous improvement (kaizen)

lean manufacturing requires the use of only those resources required to meet reqs of customers. it seeks to invest resources only in value-added activities. waste reduction - the focus of lean is on waste reduction and efficiency. concept of preserving value while expending only the effort necessary is not uncommon and has a long history in business and economics. kaizen-and activity based management initatives are waste-reduction methods that use empirical data to measure and promote efficiencies Process improvements/Activity based management ABC and ABM are highly compatible with process improvements and total quality management TQM. cost identification - ABC and mgt systems highlight cost of activities. teh availability of cost data by activity makes identification of costs of quality and value added activities more obvious implementation - organizations with ABC and ABM programs are more likely to have info needed to implement a tqm program. process improvement reuslts from a detailed process management program.

loading the data - final step ETL includes data storage,which includes 4

load data into a software program for analysis into a data storage location. when loading the data into a software program, teh main concern is that the data has been extracted and transformed in a way that is compatible with the software program. data storage - may be stored in a variety of locations/repositories including : 1. operational data store (ODS) often sources for data warehouses and used to capture ongoing operational activities from a variety of input systems 2. data warehouse = very large data repositories centralized and utilized for reporting and analysis rather than fro transaction purposes. 3. data mart = much like data warehouse but more focused on specific purpose like marketing or logistics and often subset of data warehouse 4. data lake = repository similar to a data warehouse but contains both structured and unstructured data w data mostly being in its natural or raw format. schema implemented when data is first accessed by a user instead of warehouse which has predefined schema in place to enable quick processing

MIS cont explain AIS accounting information system explain/purpose AIS 3 main subsystems

management info system that accountants and financial managers interact w the most = AIS. AIS collects, records, and stores accounting info and then compiles that info using accounting rules to report both financial and nonfinancial info to decision makers . a well-designed AIS creates an audit trial for accounting transactions. this allows a user to trace a transaction from source docs ---> ledger and from ledger --> source documents. tracing and vouching important for auditing purposes. 3 main subsystems: 1. TPS transaction processing system so converts economic events into financial transactions JEs and distributions to support daily operations 2. FRS and GLS so financial reporting system / general ledger system - aggregates daily info from TPS and other sources for infrequent events such as mergers, lawsuits, disasters to enable timely reporting 3.management reporting systems MRS - provides internal financial info to solve daily problems like budgeting, variance analysis, cost volume profit analysis

the role of management information systems

management information systems (mis) enable companies to use data as part of their strategic planning and tactical execution of that strategy. management info systems often have subsystems such as AIS, decision support systems DSS, and executive information systems EIS. mgt info system provides users predefined reports that support effective business decisions. MIS reports may provide feedback on daily operations and financial/nonfinancial info to support internal and external business decisions

Inventory Management Systems

may be part of the broader mgt info systems or a stand-alone program that typically comprised software designed to assist w tracking , procurement, and distribution inventory items. these systems track item Q and trigger reordering when Q falls below predetermined levels. usually connected to a point of sale (POS) system so each time item sole, one item unit removed from inventory count

SDLC step 7 - maintain

ongoing adjustments and improvements occur during maintenance stage, which begins as soon as deployment is complete. adaptations made to the system to keep it operating at an optimal level. over a longer period of a time the new sytem grows older and eventually will need to be evaluated for either modification or replacement. when it is time to replace the system the SDLC repeats

mobile technology

mobile technology = technology that travels w the user and can allow organization activities to occur in real time, sustaining businesses that might otherwise collapse during a crisis or a temporary inability to meet in person. mobile technology combines hardware like laptops hot spots, phones, with mobile applications and operating systems that allow connectivity to networks ie w wireless technologies such as wifi, bluetooth, 4g/5g an extension of mobile technology is IoT (internet of things) devices which typically require either Bluetooth or internet connection to access larger network. mobile range for connectivity is usually more limited than first -generation mobile technology and can be found in artificially intelligent personal assistants , smartwatches, Bluetooth earphones, lighting, electrical equipment, and even appliances like refrigerators and dishwashers.

CRM benefits /objectives

multifold - to increase customer satisfaction and thus increase revenue and profitability. a CRM system achieves this by making offerings that are perceived by consumers to be tailored and unique to their interest. this personalized messaging is generally more appealing to customers, which increases response rates to marketing campaigns and tends to decrease the cost to make a sale bc it typically is more expensive to acquire a new customer than to obtain repeat business from existing customer.

e-commerce payment methods

one common payment methodology is the use of EFTs. EFT systems use an online network and a variety of technologies to transact, process, and verify money transfers and credits among banks, businesses, consumers. federal reserve's financial services systems are frequently in EFT to reduce time and expense required to process checks and credit transactions -EFT service is often provided by a third party vendor which acts as the intermediary bw the company and banking system. that third party usually accepts transactions from a business and performs the services. EFT security is provided through types of encryption and EFT reduces need for manual data entry, thus reducing occurrence of data entry errors. -had been an increase in use of digital payments that allow funds to transfer directly bw users, without the use of a clearinghouse or a bank. several emerging technologies are gaining acceptance that are based on blockchain technology. blockchain networks use a distributed ledger to account for transactions in digital ccurencies

ETL cont - transforming data explain cleaning data , validating data

one of most time consuming steps in ETL is transformation step bc entails taking often unstructured data, cleaning it, validating it to ensure accurate and ready for analysis. cleaning the data involves following steps: -determining desired output, deduplicate data points, remove inaccurate data etc, address missing fields, remove all atributes that will not provide value to your analysis, ensure data is reasonable by performing spot checks, remove sensitive info if not needed for analysis, split data for analysis, use trimming tools to remove unneeded or extra spaces. validating data = needed after transformation to ensure data is not lost or inappropriately modified in teh cleaning process. ata validation may be a visual review for simple data sets. however, if the dat set is large then basic statistical tests may be required such as calculation of minimums, maximums, averages, and sums

hardware

organizations designing their IT infrastructure must decide what hardware will be utilized to conduct business. the physical components of computers and computer related accessories are referred to as compute hardware, which includes wide array of internal computer components as well as external peripheral devices. -computer hardware - key hardware components w/in computer include microprocessors, graphics, and sound cards, hard drives, random access memory or RAM, the power supply, and the motherboard (connects critical pieces tg) -external hardware devices- some hardware may be external peripheral devices adn do not need to be integrated into machine itself ie computer mice, keyboards, speakers, microphones, disk drives, memory devices, monitors etc may be built in or may be external devices that connect either wirelessly or directly to a computer through a wired connection infrasturcture housing - although not hardware, teh facilities and safeguards on these facilities are part of the broader IT infrastructure. this includes advanced security systems to monitor/control access, also includes ventilation and clilmate control to keep temps down.

managing risks of legacy systems

outdated tech or systems already in service w/in an organization are referred to as legacy systems. maintaining legacy systems is still common at many organizations due to a number of factors like comfort w existing systems and unwillingness to pay for upgrades. however, the benefits of maintaining a legacy system vs phasing it out and replacing it usually do not outweight the risks of keeping the system

structuring and executing IT governance explain people and 7 but only discuss BOD, executive mgt and middle management

over time an organization requires recurring input and participation from top leadership, middle managers, IT staff, end users, and external stakeholders. well-functioning IT governance structure must have the right policies and procedures in place so that governance continues to remain relevant, provide oversight, and align w organizational goals. 1. people: people w/in organization are the decision makers and drivers of the way IT governance is structured. involvement of leaders and members at all levels of org is necessary for It gov to be executed effectively a) BOD - oversees and appoints executives ie CEO. BOD has ultimate responsibility fro gov policies but planning/admin on the daily is mgt responsibility b) executive mgt - executives make key strategic decisions that are responsible for ensuring an IT governance structure is in place and executed effectively. executives must also set a clear tone at the top so that others will follow their lead. tone at top ==ethical climate or attitude twoards polices demonstrated by leadership. applies to technology as well bc of barriers to successfully executing an IT gov structure reluctant to change. c) middle management - mgt below executives aka middle management - responsible for carrying out gov policies and making sure subordinates are doing the same.t his can be done by ensuring IT projects have resources and support. mgt also responsible for ensuring users are engaged and adhering to established policies

management philosophies and techniques for performance improvement -JIT explain, and benefits

performance improvement seeks to provide the highest quality goods and services in the most efficient and effective manner possible JIT - anticipates achievement of efficiency by scheduling the deployment of resources just in time to meet customer or production requirements. inventory does not add value - underlying concept. the maintenance of inventory on hand produces wasteful costs benefits: include -synchonization of production scheduling w demand -arrival of supplies at regular intervals throughout production day -improved coordination and team approach w suppliers -more efficient flow of goods bw warehouses and production -reduced setup time -greater efficiency in the use of employees with multiple skills

SDLC cont - explain plan and analyze

plan - during the planning phase the organization evaluates the need for a new/improved info system. here the organization will establish and compile what business objectives this info system should acheive as part of the broad overview of teh project. feasibility analysis is also performed during this step to determine if it is economically, operationally, and technically feasible to imrpove/replace info system 2. analyze - info gathered from all vital stakeholders to comprehensively compile and analyze all the needs of the end users to establish specific detailed goals to be accomplished. this will enable project team to have clear undersatnding of the system requirements.

people cont - explain accountants and 3

play an important role in IT governance bw much of the data they handle is confidential in nature including banking and financial records, sensitive employee records, and patient or customer files. accounting activities are veryyy important to governance principles. accountants also may play a role in designing new It systems and governance processes, including: 1. stewards of accounting information systems AIS -primary user of AIS software, understand info needs the best and provide input to system develoeprs etc 2. members of project development teams - participating in a project development team or an info systems steering committee places accountants in a role that allows them to be invovled in ongoing system development as opposed to onetime input 3. testers - as high IT system utilizers , accountants may be appointed to periodically test certain systems to verify controls implemented and functioning properly

cont project development teams . team tasks include 4

project dev teams formed for new IT projects typically include members of mgt, IT systems personnel, accountants, and system users. this team is responsible for project planning, IT infrastructure design, change mgt, and monitoring project performance. team tasks include: 1. monitoring the project to ensure timely/cost effective completion 2. managing the human element 3. frequrent communication with users and holding regular meetings to consider ideas and to discuss progress so no surprised at project completion 4. managing risk and escalating issues that cannot be resolved w/in the team

quality audits and gap analysis

quality audits are a technique used as part of the strategic positioning function in which mgt assesses the quality practices of the organization. quality audits produce the following: analysis that identifies strenghts and weaknesses, a strategic quality impovement plan that identifies the improvement steps that will produce the greatest return to the organization in teh ST and LT gap analysis: detemrines the gap or the difference bw industry best practices and the current practices of the organization. gap analysis produces the following: -target areas for improvement, a common objective database from which to develop strategic quality improvement

knowledge management systems (KMS)

refers to any IT system that disseminates knowledge related to the organization. this includes sharing knowledge w an external party such as allowing customers to view FAQs or sharing knowledge w parties internal to organization, for example, allowing employees to view training guides or post on discussion forums

BPR business process reengineering

refers to techniques to help organizations rethink how work is done to dramatically improve customer satisfaction and service, cut costs of operations and enhance competitiveness. development of sophisticated info tech systems and networks have driven may reeng efforst. -not synonymous w business process mgt. BPM seeks incremental change and BPR seeks radical changes. fresh start - the basic premise of business process reengineering is the idea that mgt will wipe the slate clean and reassess how business is done from ground up. uses benchmarking and best practices to evaluate success current status - reengineering is not as popular as mid 1990s. the technique has been criticized for what some believe was overaggressive downsizing. in addition the programs have not produced the benefits originally anticipated.

prescriptive analytics

reveal how to achieve a desired event by prescribing what the next course of action should be in order to achieve that outcome. take the probability learned from predictive analytics and turn that into recommednations and optimal paths to take w a high likelihood of favorable outcomes. common techniques include: 1. artifical intelligence/machine learning (self-adaptive computer model not reliant on continuous human input) or 2. scenario modeling /"what if" analysis

diagnostic analytics

reveal why an event happened. goes a step beyond descriptive analyics and attempts to uncover correlations patterns and relationships w/in a data set to explain why an event or result occured. common techniques include: -performing a drill down analysis ie underlying data, performing a cluster or profile analysis , correlation analysis, sequence checks to see if any gaps or duplication issues

assessing IT governance risks

risk assessment is an extremely important component of the IT governance process. this involves assessing IT infrastructure periodically, prescribing modifications to that infrastructure and considering new IT initiatives to identify risks identifying and assessing risks can be done by performing a business impact analysis (BIA). this identifies business units deps and processes essential to survival of an entity as well as organizational impact in the event of failure BIA will identify how quickly essential business units can return to full operation following a disaster. BIA will also identify resources required to resume operations objectives of a BIA 3 1. estimate quantitative or financial impact to the organization, assuming a worst-case scenario 2. estimate qualitative impact to the organization and effect could have on operations, assuming a worst case scenario 3. identify organization's business unit processes and estimated recovery time frame.

processes for governance execution

robust gov processes and adequately equipping teams to govern IT-related tasks can ensure the efficient use of organizational resources and continued alignment w strategic objectives. governance teams that meet these criteria will be well-positioned to assess and evalaute organizational needs. organizations often employee project dev teams for new projects and steering committees for ongoing oversight of IT function.

consideration for design - list of best practices for data visualization when communicating key findings from a data set

scale appropriately -typically start at 0 so not misleading use legends appropriately avoid bias use consistent time periods use colors that can be easily seen and follow cultural norms use clear and easy to read title and labels (only use labels when accuracy is necessary so sparingly)

networking devices cont - explain last 2

servers - physical or virtual machines that coordinate the computers, programs, and data that are part of the network. most business networks use a client/server model in which client sends req to server and provides response or executes some action. various types of servers ie web, file, print, database servers. firewalls - software applications or hardware devices that protect a person's or a company's network traffic by filtering it through security protocols w predefined rules. for companies these rules may be aligned w company policies and access guidelines. firewalls are intended to prevent unauthorized access into the organization and to prevent employees from downloading malicious programs. basic packet filtering firewalls - analyze network traffic transmitted in packets and determine firewall software is configured to accept teh data (if not, blocks the packed). other types of firewalls include: 1)circuit-level gateways: verify packet source to control traffic 2.) stateful multilayer inspection firewalls - combine packet filtering and network address translation 3) network address translation firewalls: assign an internal network address to specific, approved external sources so that those sources are approved to be inside the firewall 4) next generation firewalls - can assign di firewall rules to dif applications as well as users --> low threat application has more permissive rules assigned to it while a high-security app may have highly restrictive rules set assigned

software

software consists of the applications, procedures, or programs that provide instructions for a computer to execute. software is controlled by a user interacting w the program, which in turn gives instructions to the physical computer's operating system. software that is embedded in hardware that instructs hardware how to operate == firmware. operates like software but exists locally on the machine directing the function of physical components like the motherboard and microprocessor. firmware is not updated frequently or at all which is dif from typical software program updated frequently.

data visualizations cont stacked column charts, scatter plots, box plots, dot plots

stacked column charts = similar to column charts however each column is stratified to show additional details. these are very effective when you want to have total comparisons as well as % breakdowns of the whole scatter lots: demonstrate relationships bw two variables, w a market and the intersection of the x and y values provided. when using quantiative data, data can be plotted onto a scatter plot and a simple trendline can be added as a form of simple regression to provide info on correlation box plots = graphical displays that show lower and upper extremes, lower and upper quartiles, as well as the median data point dot plots = 2d mapping of observances onto a coordinate plane, with one dimension representing the frequency of observations of the other dimension

buffer

the concept of buffer is used through TOC. managers add buffers before and after each constraint to ensure that enough resources to accommodate constraint exist. buffers eliminate impact of the constraint on work flow

Theory of Constraints (TOC)

states that organizations are impeded from achieving objectives by the existence of one or more constraints. the organization must be consistently operated in a manner that either works around or leverages the constrant constraint - anything that impedes accomplishment of an objective. constraints for purposes of TOC are limited in total and sometimes organizations may face only one constraint. internal constraints = evident when market demands more than the system can product: equipment may be inefficient, people may lack necessary skills to produce efficiencies, policies may prevent efficient use of resources external constraints: exist when system produces more than the market requires

relational database concepts - tables vs attributes (columns) vs records (rows)

tables - organizational structures w/in relational databases that establish columns and rows to store specific types of data records ie a customer table would be teh table where an entity would store all the organization's customer records attributes (columns) -column headers of a table that describe the characteristics or properties desired to be known about each entity ie attribute in customer table may be "last name" records (rows) - rows w/in table in a relational database ie certain info about a single customer

the role of IT in business

the application of IT in an organization is the systematic implementation of hardware and software so that data can be transmitted, modified, accesses, and stored. as the field of information science advances, the speed at which IT devices can perform these tasks has rapidly increased and organizations must reevaluate their technology on a regular basis

subsection 2 change management risks: integration risks 6 so once software selected and acquired, it must be integrated into existing systems and processes...

this may be one of the most difficult risks to manage bc many nuances further complicated by employee perceptions and attitude towards accepting change. integration risks include 6 1. user resistance: when change occurs there is often resistance to adoption of change by employees so risk that do not adapt, ignore training etc 2. lack of mgt support 3. lack of stakeholder support 4. resource concerns (change can be resource intensive both financially and labor wise so appropriate resources may not be made available for the change) 5. business disruption - when making major changes to IT infrastructure there is potential for brief or prolonged info system failures which could disrupt core functions and LT negative consequences for the organization. 6. lack of system integration: due to ever-changing technological landscape, organizations may operate many dif systems which can be legacy systems that do not effectively adapt/integrate more modern systems

defining big data

used in many forms but generally refers to the corporate accumulation of massive amounts of data that can be used for analysis, commonly referred to as data analytics. utilizing big data has become the norm for more institutions due to advances in applications abilities to collect data as well as increased availability of analytical tools designed to handle large quantities of data. data collected in a variety of ways and can be done so actively, passively, by a person, or by using technology. active collection typically refers to capture of data from a device or person who has given consent. passive collection is from sources that may be indirect, ancillary, or otherwise generated from some passive activity a device/person engaged in such as number of webpages viewed on a website. some sources of data collection == purchasing behavior of particpants in loyalty/reward programs, customer focus groups, Radio frequency identification tags, activity detected from sensors on cameras linked to the internet

SOC 3

users who need attestation concerning controls as tehy relate to security, processing integrity, availability and privacy. however, this report is for companies who do not have the knowledge required to make an effective use of a SOC 2 report.

six sigma

uses rigorous metric in the eval of goal achievement. continuous quality improvement program that requires specialized training the program expands on the plan-do-check-act model of process mgt and outlines methods to improve current processes and develop new processes existing product/busines process improvements (DMAIC) 1.define the problem 2. measure key aspects of the current process (collect relevant data) 3. analyze data 4. improve or optimize current processes (use models and data to determine how process can be optimized) 5. Control - develop statistical control process to monitor results

SLC cont step 3 design explain and can be divided into 3 parts

using info gathered during planning and analysis phase, project team will start designing the system to meet the agreed upon user needs. proccess will start w high-level conceptual designs usually represented by diagrams to reconcile big picture goals and system reqs. next the creation of the technical implementation plan occurs as business reqs are translated into technical design documents. technologies are evalauted and selected , including logical data organization, physical data storage, programming languages etc. design phase 3 parts 1. conceptual design (broad translation of business requirements into technical requirements) 2. logical design - hardware and software specifications 3. physical design - more granular platform and product specifications

cont waterfall chart directional charts

waterfall chart shows the cumulative effect of a series of data points that make up a whole. presentation is in cascading form w each incremental value contributing to the total of all data points directional charts = highlighting key events/milestones over time can be depicted using directional charts, w the earlist data beginning on the left and ending on the right

big data ethics governance responsibility

when collecting, analyzing, and making decisions using big data, important to understand the ethical implications at every step of the data life cycle. organizations should make sure authorized personnel are granted the minimum level of access to the data necessary to perform their job functions. this includes assignign rights that limit users ability to create, read, edit, delete data based on their organizational role and job function. organizations w/o niche focus should avoid making general exclusions on basis of gender governance responsibility - an organization's governance program should be led by a designated individual ie chief privacy officer, corporate compliance offer, or a job role that is equivalent . the design of that program should have input from leaders across the organization and the program should be updated as necessary. 1 indiv may take ownership of program's mgt but it should ultimately involve all aspects of organization.

systems development and new systems risks subsets - explain a) resource risk b) scheduling risk

when going through the SDLC an organization will face many risks. these can be paramount bc they can cause delays, inefficiencies, and wasted resources. outlined below a) resource risk - risk that allocation of resources rleated to finance, labor or time is insufficient. this could lead to projects fail due to incopmletion or incentive to take short cuts detrimental to the development process. insufficient resources could be caused by a downturn in economy, underestimating costs in planning phase or even expanded scope modified during development process b) scheduling risk - SDLC typically comes w uncertainty pertaining to the time line and schedule. project mgt team will typically establish a completion date and work backwards to establish milestones in teh time line. if schedules not met, if uncertainties not factored in then entire project will be delayed. a delay at any piont in the project will have a ripple effect on all downstream due dates

extract, transform, and load (ETL)

when performing data analytics, it is important to understand the ETL extract transform and load process. this is process data is captured from its source and xfered to an organization's custody so that it can then be further analyzed.

change management risks cont - third subsection outsourcing risks and 3.

when planning significant changes, some organizations choose to outsource change management process. this may be cost saving or may be used to leverage the expertise of an external agency. these risks include 3: 1. lack of organizational knowledge : outsourcing the change mangement process could leave the organization vulnerable bc must rely on third party to fully comprehend organization's business model and needs 2. uncertainty of the third party's knowledge adn management - risk that external party ineffective or weak management, inexperienced/underqualified staff, and a lack of tech expertise 3. lack of security - can lead to transmission of sensitive and confidential data and risk does not have effective safeguards

people cont explain IT support staff and 5

whether the IT function is insourced or outsourced, the following roles usually present and vital: 1. strategic/executive IT staff - responsible for daily planning of gov policies ie CTO, IT director 2. network engineers - design/maintain company's network 3. help desk and lower level IT support - often first responders when end users have troubleshooting needs , interface w most employees 4. cybersecurity staff - ensure safe and secure usage of company data and IT assets 5. function-specific staff - larger organizations have disclipline specific job roles within IT, such a s person focusing on application programming etc as an expert

factors that shift demand curves (so not price) 6

1 . changes in wealth 2. changes in the price of related goods (substitutes/complements) ie if price of a good used in conjunction w original good decreases, demand for original good may increase 3. changes in consumer income (increase will shift demand curve to the right) 4. changes in consumer tastes or preferences 5. change sin consumer expectations - if anticipate future price increase immediate demand may increase 6. change sin number of buyers served by the market - increase in number buyers will shift demand curve to the right

factors that shift supply curves 5

1. changes in price expectations of the supplying firm - if prices are expected to decrease, the firm will supply more now at each price level to take advantage of the currently higher prices. 2. changes in production costs (price of inputs)- when production costs expected to decline, will shift supply curve to the right 3. changes in the price or demand for other good - decrease in demand for other goods supplied by firm would shift resources and increase supply of its goods. 4. changes in subsidies or subsidies- decrease in taxes would increase supplied amount 5. changes in production technology - an improvement in technology would cause a shift to the right of the supply curve.

five basic types of competitive strategies

1. cost leadership focused on a broad range of buyers 2. cost leadership focused on a narrow range of buyers 3. differentiation focused on a broad range of buyers 4. differentiation focused on a narrow range of buyers 5. best cost provider.

factors impacting price elasticity of demand

1. product demand is more elastic with more substitutes available but is inelastic if few substitutes are available 2. the longer the time period, the more product demand becomes elastic bc more choices are available

Changes in Equilibrium

If supply and/or demand curves shift, the equilibrium price and quantity will change effects of change in demand on equilibrium - a rightward shift so increase in demand will result in an increase in price adn increase in quantity. leftward shift will decrease both. effect of change in supply on equilibrium - a rightward shift in supply will decrease price and increase quantity. a leftward shift in supply will increase price and decrease quantity. whole idea of market clearing is the idea that market will eventually be cleared of all excess supply and demand assuming that prices may change.

general types of factors that influence strategy SWOT

SWOT so strengths weaknesses opportunities and threats. internal factors (strengths and weaknesses) factors internal to the organization that affect strategy include: -innovation of product lines -competence of mgt -core competencies -influence of high level managers -capital improvements -leadership in R&D -cohensiveness of the values of the organization -market effectiveness -effectivness of communication -clarity of the strategy mission external factors (opportunities and threats) - factors external to the organization are sources of opportunities in the market and threats to the firm's ability to continue w its strategic plan factors that affect the overall industry and competitive env = economy, regulations/laws, population demographics, technological advances, social values, political issues factors that affect the competitive env of the firm - barriers to market entry, market competitiveness, existence of subsitute products, bargaining power of customers/suppliers

cont direct foreign investment DFI global sourcing

direct foreign investment DFI - an entity may establish international operations by purchasing a foreign company as a subsidiary or by starting a subsidiary operation within the borders of a foreign country global sourcing - synchronization of all levels of product manufacturing , including research and development, production and marketing, on an international basis. global sourcing is frequently implemented through a range of organizational and business arrangements.

trade control - explain and differentiate bw 3: tariffs, quotas, embargoes

trade controls restrict transactions and transfer of goods , services, software, and technology. trade controls are put in place to protect domestic industries by reducing foreign competition, aka protectionism. export controls are laws that protect trade and national security by prohibiting the unlicensed export of certain info and commodities. traditional trade controls include: 1. tarriffs: taxes on imports which increase the prices of foreign goods and make them less competitive relative to domestic goods. tariffs also provide a source of revenue for the imposting government. 2. quotas: limits on the quantity of a good that can be imported over time. quotas help protect specific industries that may be relatively new or vulnerable to foreign competition. absolute quotas set a max limit on the amount of goods that can be imported and tariff rate quotas add an additional tax when limit is reached 3. embargoes: prohibit the importing or exporting of certain goods from a specific country. tarriffs and quotas may help to prevent dumping

factors that influence strategy

when determining the effects of the market on business strategy, a look at the overall macro environment in which the firm operates is essential because it can significantly assist the company in developing/choosing the best strategy to meet its goals

porter's five forces cont - bargaining power of the suppliers

when the bargaining power of the suppliers of inputs to the production process is high, suppliers can take profits away from a firm simply by increasing the cost of the inputs to the firm's production process. 1. firm is unable to change suppliers ie no substitutes available 2. reputation of supplier and demand for its goods - if excellent reputation and crucial to success of fir's product, and demand for its goods are high, firm could be placed in a difficult situation