CIS Chapter 1

Process

Computer Program that processes the data

Accounting

Records, measures, and reports monetary transactions. Ex. Transnational data, purchasing data, payroll data, tax data

Data, Information, Business intelligence, Knowledge

What are the core drivers of the information age?

Machine generated data and Human generated data

What are the sources of structured data?

report

a document containing data organized in a table, matrix, or graphical format allowing users to easily comprehend and understand information. can cover a wide range of subjects or specific subject for a certain time period or event.

snapshot

a view of data at a particular moment in time

information age

age when infinite quantities of facts are widely available to anyone who can use a computer

predictive analytics

analytics which extracts information from data and uses it to predict future trends and identify behavioral patterns. Top managers use it to define the future of the business, analyzing markets, industries, and economies to determine the strategic direction the company must follow to remain profitable

Structured data

data that has a defined length, type, and format and includes numbers, dates, or strings such as Customer Address. is typically stored in a traditional system such as a relational database or spreadsheet and accounts for about 20 percent of the data that surrounds us

Unstructured data

data that is not defined and does not follow a specified format and is typically free-form text such as emails, Twitter tweets, and text messages. accounts for about 80 percent of the data that surrounds us

Big data

is a collection of large complex data sets, including structured and unstructured data, which cannot be analyzed using traditional database methods and tools. Lacking data, managers often found themselves making business decisions about how many products to make, how much material to order, or how many employees to hire based on intuition or gut feelings. In the information age, successful managers compile, analyze, and comprehend massive amounts of data daily, which helps them make more successful business decisions

system

is a collection of parts that link to achieve a common purpose. A car is a good example of a ---, since removing a part, such as the steering wheel or accelerator, causes the entire system to stop working.

variable

is a data characteristic that stands for a value that changes or varies over time.

business unit

is a segment of a company (such as accounting, production, marketing) representing a specific business function

Systems thinking

is 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

Machine generated data

is created by a machine without human intervention. includes sensor data, point-of-sale data, and web log data.

Human generated data

is data that humans, in interaction with computers, generate. includes input data, click-stream data, or gaming data

fact

the confirmation or validation of an event or object. In the past, people primarily learned facts from books.

Analytics

the science of fact-based decision making.

Behavioral analytics

uses data about people's behaviors to understand intent and predict future actions

Knowledge

"Given the unexpected financial issues caused by the storms and the interest rate hike, we will offer a discount on purchase in November and December to insure sales levels increase by 10 percent The skills, experience and expertise, coupled with information and intelligence that creates a person's intellectual resources Ex. Choosing not to fire a sales representative who is under performing knowing that person is experiencing family problems Listing products that are about to expire first on the menu or creating them as a daily special to move the product

Data

"I have one item" Raw facts that describe the characteristics of an event or object is a raw building block that has not been shaped, processed, or analyzed and frequently appears disorganized and unfriendly Ex. Order date, Amount sold, Customer number, Quantity ordered

Information

"The item I have is a product that had the most sales during the month of December" Data converted into a meaningful and useful context gives meaning and context to analyzed data making it insightful for humans providing context and structure that is extremely valuable when making informed business decisions Ex. Best selling product, Best customer, Worst selling product, Worst customer

Business Intelligence

"The month of December this year is going to see interest rates rise by 10 percent and snow storms are expected to cause numerous problems throughout the East coast" Information Collected from multiple sources that analyzes patterns, trends, and relationships for strategic decision making Ex. Lowest sales per week compared with the economic interest rates manipulates multiple variables and in some cases even hundreds of variables including such items as interest rates, weather conditions, and even gas prices. Best selling product by month compared to sports season and city team wins and losses

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-to-machine

(M2M) refers to devices that connect directly to other devices

Management information systems

(MIS) a business function, like accounting and human resources, which moves information about people, products, and processes across the company to facilitate decision making and problem solving. MIS incorporates systems Page 16 thinking to help companies operate cross-functionally.

Feedback

-Controls to ensure correct processing is information that returns to its original transmitter (input, transform, or output) and modifies the transmitter's actions. ---helps the system maintain stability. For example, a car's system continuously monitors the fuel level and turns on a warning light if the gas level is too low. Systems thinking provides an end-to-end view of how operations work together to create a product or service. Business students who understand systems thinking are valuable resources because they can implement solutions that consider the entire process, not just a single component.

static report

A report that is created once based on data that does not change. can include a sales report from last year or salary report from five years ago.

Input

Data that is entered in a computer

Finance

Deals with strategic financial issues including money, banking, credit, investments, and assets. Ex. Investment data, monetary data, reporting data

sources of unstructured data

Machine-generated unstructured data includes satellite images, scientific atmosphere data, and radar data. Human-generated unstructured data includes text messages, social media data, and emails.

Human resources

Maintains policies, plans, and procedures for the effective management of employees. Ex. Employee data, promotion data, vacation data

Operations management

Manages the process of converting or transforming resources into goods or services. Ex. Manufacturing data, distribution data, Production data

Sales

Performs the function of selling goods or services. Ex. Potential customer data, Sales report data, Commission data, customer support data

Marketing

Supports sales by planning, pricing, and promoting goods or services. Ex. Promotion data, Sales Data, Advertising Data

Output

The resulting information from the computer program

Knowledge workers

are individuals valued for their ability to interpret and analyze information. Today's workers are commonly referred to as --- and they use BI along with personal experience to make decisions based on both information and intuition, a valuable resource for any company.

. Goods

are material items or products that customers will buy to satisfy a want or need. Clothing, groceries, cell phones, and cars are all examples of ---that people buy to fulfill their needs

Services

are tasks performed by people that customers will buy to satisfy a want or need. Waiting tables, teaching, and cutting hair are all examples of ----that people pay for to fulfill their needs

dynamic report

changes automatically during creation. can include updating daily stock market prices or the calculation of available inventory.

Production

is the process where a business takes raw materials and processes them or converts them into a finished product for its goods or services. Just think about making a hamburger

Productivity

is the rate at which goods and services are produced based upon total output given total inputs. Given our previous example, if a business could produce the same hamburger with less expensive inputs or more hamburgers with the same inputs it would see a rise in productivity and possibly an increase in profits. Ensuring the input, process, and output of goods and services work across all of the departments of a company is where systems add tremendous value to overall business productivity.

information silo

occurs when one business unit is unable to freely communicate with other business units making it difficult or impossible for organizations to work cross-functionally. exist because management does not believe there to be enough benefit from sharing information across business units and because information might not be useful to personnel in other business units.