BUS 237 FINAL

Rational Decision Making Model

1. Intelligence: Gather information 2. Design: Generate alternative methods 3. Choice: Select one alternative 4. Implementation: Put chosen alternative into action 5. Review: Lessons learned

Supply chain management

Network of organizations/facilities transforming raw materials into products delivered to customers Jobs: source, purchase, settle

Value Chain

Network of value-creating activities.

Unstructured Decision

No agreed-on decision making method Eg. Who should I marry?

Information (business process)

Tracking. Activities use information to determine how to transform inputs received into outputs performed

Telecommunications

Transfer of data (bits) between at least two machines through transmission media. Occurs through one or more transmission media: analog or digital

Activities

Transformers. Changes resources/information of one type into resources/info of another type. Follow rules and procedures; can be manual, automated, or a combo

Structured Decision

Understood/accepted method for decision making Eg. How much tax do I need to pay?

Protocol

Used to transfer data. A format/set of rules recognized and followed by both receiving and sending machines. Eg. TC/IP, HTTP (hypertext transfer protocol), FTP (file transfer protocol), SMTP, POP

Resources

Value items. Used to provide value for its customers/successful outcomes for owners.

Worms

Virus that are specifically programmed to spread using the Internet or other computer network.

WAN

Wide Area Network. Connects devices at different geographical locations using a router.

Disruptive Technologies

Introduces new attributes to accepted mainstream products Eg. Voice-only cellphone vs iPhone (smartphone), music CD vs iTunes (download)

Business Process Automation (BPA)

Involves automating some aspect of a business process through application of info tech. Leaves manual system unchanged, but automates processes to make more efficient. Impacts how fast they are accomplished, not way things are done Eg. Reduce library checkout lineup by adding computerized checkout station

Foreign Keys

Keys in different table than the one in which they reside.

Operating System

Large and complicated programs that control the computer's resources. Developed for a particular type of hardware (eg. Windows only works on Intel processors).

LAN

Local Area Network. Connects devices within small range/single geographical location.

Software

Logical components of computer

Malware

Malicious software intended to damage/disable computers/computer systems.

Customer life cycle

Marketing, customer acquisition, relationship management, lost/churn

Exchanges

Match buyers and sellers, similar to that of stock exchange

Auctions

Match buyers/sellers using e-commerce version of standard auction

Data Channel / BUS

Moves instructions from main memory (RAM) into CPU.

Internet

Network of networks. Most well known is the Internet.

Processing

Computing technology allowing for modification, storage, and deletion of data.

Wired LAN

Connected via a switch (special-purpose computer receiving/transmitting messages on the LAN).

Cable

Connection made through TV line.

Dial-up internet

Connection made through regular telephone line

DSL internet

Connection made through special (digital subscriber) telephone line.

Analog transmission media

Continuously varying frequency - smooth but inaccurate

Porter's Four Competitive Strategies

Cost leadership across industry Cost leadership focused on particular industry segment Differentiation across industry Differentiation focused on particular industry segment

Wireless WAN

Covers a larger area than wireless LANS, using cellular networks to transfer data. Works like a cellphone.

Inter-organizational information system

Cross-functional system used by two or more companies (eg. SCM, E-commerce)

Supply chain

Customers order -> retailers -> distributors -> manufacturers -> suppliers Includes transportation companies, warehouses, inventories, information systems

Instructions in five-component framework

Software + Procedures

Facilities

Structures used within business process, where resources are stored.

Zombie

Subsequent computers infected by worm/virus.

Customer Relationship Management

Support the business processes of attracting, selling, managing, delivering, and supporting customers via direct value chain activities. All customer data stored in single database. Composed of solicitation, lead tracking, relationship managing.

Functional Information System

Supports a single department (business function) Problems: Data duplication/inconsistency, disjointed processes, limited/lack of integrated info, isolated decisions lead to inefficient overall activities, increased expenses

Enterprise Resource Planning

Supports primary business processes + HR/Accounting support processes by integrating activities. Provides software, predesigned databases, procedures, job descriptions for organization-wise process integration.

Functional Silos

Systems designed to work independently of each other.

Database

Tables + Relationships among Rows in Tables + Metadata. Integrated collection of logically related records/objects.

Merchant e-commerce

Takes title to goods sold, buys and resells goods, sells services provided

Network

Collection of computers that transmit/receive electronic signals through transmission media. Needs to be present to transfer data.

Effectiveness

Company offers new/improved goods/services

Wireless LAN

Computer network that allows others to connect to a network without using a network cable.

Viruses

Computer program that replicates itself, consuming computer's resources and causes unwanted activity via payload (Program code causing unwanted activity.)

B2G

Between business and government

B2B

Between companies

B2C

Between supplier and customer

Bit

Binary digit (0, 1)

Satisficing

"good enough" or satisfactory option

Benefits of ERP

- Efficient business processes - Inventory reduction - Lead-time reduction - Improved customer service - Greater, real-time insight into organization - Higher profitability

Characteristics of ERP

- Provides cross functional process view of organization - Has formal approach based on formal business models - Maintains data in centralized database - Difficult, challenging, slow to implement, expensive

Competitive Advantage via business processes

1. Lock in customers (high switching costs) 2. Lock in suppliers (easy to connect/work with organization) 3. Create entry barriers (hard for new competition to enter market) 4. Establish alliances (standards, product awareness) 5. Reduce costs (increase profitability)

Basic Types of Functional Systems

1. Marketing and Sales 2. Operations 3. Manufacturing 4. Human Resources 5. Accounting and Finance

Competitive Advantage via products

1. New, 2. enhanced, and 3. differentiated products/services

Advantages and disadvantages of SSD?

Advantage: Faster in certain applications (since no moving parts), requires less power, generates less heat Disadvantage: Can fail with no prior indication, no ability to recover data after failure

Business Process Design

Approaches to improving organizational performance. 1. Business Process Automation (BPA) 2. Business Process Improvement (BPI) 3. Business Process Transformation (BPT)

Non-merchant e-commerce

Arranges for purchase/sale of goods without owning/taking title to goods, sells services provided by others

Macro-viruses

Attach themselves to Word, Excel, and other types of documents. Places self in start-up files of application and infects every subsequent file created/processed by program.

Porter's Five Competitive Forces

Bargaining power of customers Threat of substitutions Bargaining power of suppliers Threat of new entrants Rivalry among existing firms

BIOS

Basic Input/Output System: Important piece of firmware, usually used when a computer is initially started or booted up to make sure memory/input devices are functional before loading operating system Required because all volatile memory is lost when computer shuts down, and the only way to get the computer running again is to load the BIOS and run through the commands it provides.

Efficiency

Business processes can be accomplished more quickly and/or with fewer resources and facilities

E-commerce

Buying and selling over electronic channels.

Firmware

Computer software installed into devices (printers, game controllers, etc)' ROM. Supports communication between device and computer.

CPU

Central processing unit (brain of computer). Controls machine's "smarts" - selects instructions, processes them, performs arithmetic/logical comparisons, stores results in operations of memory.

Sustaining Technologies

Changes in technology that maintain the rate of improvement in customer value Eg. Wired mouse vs wireless mouse, cassette tape vs music CD

Byte

Character of data (1 byte = 8 bits). Most basic logical data element. 1 byte -> translated into character (eg. 01000001 = A)

Business Process

Describes set of activities necessary to complete a response to a stimulus applied to an organization. Stimulus -> set of activities -> response Composed of activities, resources, facilities, and information.

Primary Activity

Directly adds value to products/services.

Support Activity

Indirectly responsible for benefits to customers.

Productivity

Efficiency + effectiveness

Cross-functional Information Systems

Enterprise-wide systems operating across departments (CRM, ERP) in order to overcome problems in functional systems/silos

Business Process Improvement

Evolutionary view - no radical changes, but constant search for improvements. Changes are made to the way things are done via both computers and business processes Eg. Reduce library checkout lineup by allowing the use of computers to search catalog, check out books, and have them delivered via campus mail (changes both computer system and the way you do business!)

Primary Keys

Field uniquely identifying records. Eg. Student number - something unique to 1 person

Five-component framework

Five fundamental components of an information system. Hardware, software, data, procedures, people

Horizontal-market

General, works across all industries (ie. Microsoft Excel).

Record/Row

Group of logically related fields. Can be either fixed length or variable length Examples: Student name, account number, course name, date

Actors in five-component framework

Hardware + People

Input Devices

Hardware devices that attach to a computer and capture user input. Direct and indirect.

Types of Relationships

One to One: ie. Person to shoe size One to Many: ie. Name of person to name of friends Many to Many: ie. Name of students to names of

Levels of Decision Making

Operational (day-to-day), managerial (allocation/utilization of resources), strategic (broad-scope organizational issues)

Hardware

Physical components of a computer. Composed of input devices, processing, output, and storage.

Output

Produces/displays desired results of computational task to user. Has the most physical interaction with user. Eg. display/monitor, microphones, speakers

Companies can create new competitive advantage via:

Products and Business Processes

DBMS

Program that creates, processes, administers database. Usually licenced from vendors. Creating: Tables, relationships, and other structures in database Processing: Applications use DBMS to read, insert, modify, delete data using SQL (structured query language) Administering: Set up security, back up data, remove data

Application Software

Programs that perform specific user tasks. Usually written to only work on a particular operating system (ie. Microsoft Access only works on Windows).

Clearinghouses

Provide goods/services at state price and arrange for delivery, but never take title

RAM

Random access memory. Main memory of computer, runs volatile data.

Rationality

Rational decision making process seeking "optimal" means to desired ends. In an ideal world, managers would behave rationally and gather all the information needed to make the best decisions.

ROM

Read only memory. Permanent memory of computer, hardwired, and mainly stores nonvolatile data.

Transaction Entry

Representing event/change in business (payment made, invoice issued, inventory reduction)

Master Entry

Represents status of business entity (customer account, item inventory record, etc)

Business Process Transformation

Requires analysis strategy and more information about alternatives (via activity based costing, benchmarking). High level of intensity of automation - radical/fundamental rethinking of business processes currently used. Looking for dramatic improvements (high risk/increased time) Eg. Reduce library checkout lineup by making texts available on the web and scanning all the books in order to make the info searchable/downloadable

Storage

Saves data and programs. Magnetic, optical, flash/SSD

Digital transmission media

Series of bits (high voltage = 1, low voltage = 0) - accurate and choppy

Vertical-market

Serves needs of specific industry (ie. Dental office)

Botnet

Set of computers/applications that are coordinated through a network and used to perform malicious tasks.

Database Hierarchy, smallest to largest

bit, byte, field, record, table, database