Ch 1

Porters Three Generic Strategies

cost leadership, differentiation, and focused strategy

Human Resources Department

maintains policies, plans, and procedures for the effective management of employees

Data

raw facts that describe the characteristics of an event or object

Primary value activities

receive and store raw materials, make the product or service, deliver the product or service, market and sell the product o service, service after the sale

Services

tasks people perform that customers will buy to satisfy a want or need; teaching, waiting tables, cutting hair

Prescriptive Analytics

techniques that create models indicating the best decision to make or course of action to take; airline using past purchasing data as inputs into a model that recommends the best pricing strategy to maximize revenue

Internet of Things (IoT)

a world where interconnected internet-enabled devices or things have the ability to collect and share data without human intervention

Machine-generated data

created by a machine without human intervention

Information

data converted into a meaningful and useful context

Human-generated data

data that humans, in interaction with computers, generate

Neiman Marcus

high cost, broad market

Marketing Department

supports sales by planning, pricing, and promoting goods or services

Supplier Power

the suppliers ability to influence the prices they charge for supplies; supply chain (suppliers, company, customers)

Porters Five Forces Model

threat of substitute products or services, buyer power, threat of new entrants, and supplier power all lead to rivalry among existing competitors

Finance Department

tracks strategic financial issues including money, banking, credit, investments, and assets

Value Chain analysis

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

Management Information Systems (MIS)

a business function, like acct or hr, which moves information about people, products, and processes across the company to facilitate decision making and problem solving

Big Data

a collection of large, complex data sets, including structured and unstructured data, which cannot be analyzed using traditional database methods and tools

Entry Barrier

a feature or product or service that customers have come to expect and entering competitors must offer the same for survival

Business Strategy

a leadership plan that achieves a specific set of goals or objectives such as developing new products or services, entering new markets, increasing customer loyalty, attracting new customers, and increasing sales

Competitive Advantage

a product or service that an organization's customers place a greater value on than similar offerings from a competitor

Business process

a standardized set of activities that accomplish a specific task, such as a specific process

Snapshot

a view of data at a particular point in time

Systems thinking

a way of monitoring the entire system by viewing multiple inputs being processed or transformed to produce outputs while continuously gathering feedback on each part

Dynamic report

changes automatically during the creation

Static report

creating once based on data that does not change

Walmart

low cost, broad market

Operations Management

manages the process of converting or transforming or resources into goods or services

Report

a document containing data organized in a table, matrix, or graphical format allowing users to easily comprehend and understand information

SWOT analysis

evaluates an organization's strengths, weaknesses, opportunities, and threats to identify significant influences that work for or against business strategies

Support value activities

firm infrastructure, humane resource management, technology development, procurement

Rivalry among existing competitors

high when competition is fierce in a market and low when competitors are more complacent; product differentiation

Threat of new entrants

high when it is easy for new competitors to enter a market and low when there are significant entries barriers

Threat of substitute products or services

high when there are many alternatives to a product or service and low when there are few alternatives

Knowledge worker

individual valued for their ability to interpret and analyze information

Business Intelligence

information collected from multiple sources such as suppliers, customers, competitors, partners, and industries that analyze patterns, trends, and relationships for strategic decision making

Goods

material items or products that customers will buy to satisfy a want or need; cars, groceries, clothing

Tiffany & Co.

narrow market, high cost

Payless Shoes

narrow market, low cost

Unstructured Data

not defined and does not follow a specified format

Product differentiation

occurs when a company develops unique differences in its product or services with the intent to influence demand

First mover advantage

occurs when an organization can significantly impact its market share by being first to market with a competitive advantage

Chief Information Officer

oversees all uses of IT and ensures the strategic alignment of IT with business goals and objectives

Sales Department

performs the function of selling goods or services

Accounting Department

records, measures, and reports monetary transactions

Machine-to-Machine (M2M)

refers to devices that connect directly to other devices

Chief Knowledge Officer

responsible for collecting, maintaining and distributing the organization's knowledge

Chief Privacy Officer

responsible for ensuring ethical and legal use of information

Chief Security Officer

responsible for ensuring the security of IT systems

Chief Technology Officer

responsible for ensuring the throughput, speed, accuracy, availability and reliability of IT

Knowledge

skills, experience, and expertise coupled with information and intelligence that creates a person's intellectual resources

Structured Data

stored in a traditional system such as a relational database or spreadsheet

Descriptive Analytics

techniques that describe past performance and history; creating a report that includes charts and graphs that explains data

Predictive Analytics

techniques that extract information from data and use it to predict future trends and identify behavioral patterns; using past sales data to predict future sales data

Buyer Power

the ability of buyers to affect the price of an item; switching cost and loyalty programs

Analytics

the science of fact-based decision making; descriptive, predictive, or prescriptive