CHAPTER 10 MIS

Value Chain

A description of the many steps involved in creating a product or service. Each step adds value to the product or service. Managers need to evaluate the chain to find opportunities to expand the firm and gain more sales and profits.

Just In Time Inventory

A system of supplying goods as close as possible to when they are needed

Computer Aided Design

CAD, or computer-aided design and drafting (CADD), is the use of computer technology for design and design documentation. CAD software replaces manual drafting with an automated process. If you work in the architecture, MEP, or structural engineering fields, you've probably used 2D or 3D CAD programs

Switching Costs

Consumers are reluctant to switch to a competitor if they have to learn a new system or transfer data.

Cost Leadership

Cost leadership is a concept developed by Michael Porter, utilised in business strategy. It describes a way to establish the competitive advantage. Cost leadership, in basic words, means the lowest cost of operation in the industry.

barrier to entry

Economies of scale (size). Economies of scope (breadth). Product differentiation. Capital requirements. Cost disadvantages (independent of size). Distribution channel access. Government policy.

Mass Customization

Mass customization requires an IT system that links the sales system directly to the production line and through to supply. It also involves heavy use of robotics that are configurable directly from one computer. is a marketing and manufacturing technique that combines the flexibility and personalization of custom-made products with the low unit costs associated with mass production.

Process Innovation

Starts from management to research/customer service then engineering/design and marketing then logistics/supply,manufacturing then lastly sales and order management Evaluating the entire firm to improve individual processes, and to search for integrated solutions that will reduce costs, improve quality or boost sales to gain a competitive advantage.

Innovation

Strategy Idea-Convince top management-Implement and monitor,research plan(data,competition,forecasts)

Product Differentiation

Technology can add new features to a product or create entirely new products that entice consumers

Distribution Channels

The layers of distributors in between the manufacturer and the final customer. If a producer can gain control over this means of getting the product to the consumers, the producer can prevent new rivals from entering the industry.

Cloud Computing

The process of running the main part of an application on servers on the Internet. The servers are generally scalable and provide redundancy. Cloud services available to the public are usually charged on some type of per-use fee basis so firms can buy the level of computing.

Porter's Five Forces Model (ne, bpob,sp,bpos)

Threat of new entrants, bargaining power of buyers, threat of substitute products or services, and bargaining power of suppliers. In the middle of it all is Rivalry Amongst Existing Competitors.

Change Agent

are people or events that cause an organization to reevaluate its rules and procedures. When a person is the change agent, that person often becomes the champion for the new ideas. How- ever, change agents are rarely appointed and tend to gain prominence by random chance.

Economies of Scale

cost advantage that arises with increased output of a product. Economies of scale arise because of the inverse relationship between the quantity produced and per-unit fixed costs; i.e. the greater the quantity of a good produced, the lower the per-unit fixed cost because these costs are spread out over a larger number of goods.

First Mover Advantage

describes a certain competitive advantage a business obtains by virtue of being the first to bring a specific product or service to market

Total Quality Management

quality must be built into every process and item.

External Agent

suppliers, customers, rivals, poten- tial new entrants, substitute products, and sometimes the government