K201 Lecture Midterm Study Guide Ch 1-5

Ch 1: Moore's Law

- 1965, Gordon Moore, cofounder of Intel Corporation - The number of transistors per square inch on an integrated chip doubles every 18 months Ratio of price to performance of computer processors has fallen dramatically. Cost of processing data is approaching zero

Ch 4: Two important software constraints

- A particular version of an operating system is written for a particular type of hardware - Two types of application programs exist:

Ch 3: Natural Language Processings

- Ability of a computer system to understand human spoken language, to answer questions

Ch 3: Artificial Intelligence (AI)

- Ability of a machine to simulate human abilities such as vision, communication, recognition, learning, and decision making in order to achieve a goal

Ch 4: Augmented reality (AR)

- Altering of reality by overlaying digital info on real world objects - Google glass

Ch 3: Unsupervised Data Mining

- Analysts do not create a model or hypothesis before running the analysis (apply a data mining operation to a database and observe the results) (cluster analysis)

Ch 3: Data Mining Analysis

- Application of a statistical techniques to find patterns and relationships among data for classification and predictions

Ch 3: Dynamic Report

- BI documents that are updated at the time they are requested

Q4-3: What do business professionals need to know about software?

- Basic terminology - Two important software constraints - Two types of application programs exist

Ch 3: Project Management

- Build in-store cafes - Expand to other locations

Ch 3: Data Mining Goal

- Classify and Predict

Ch 3: Big Data

- Collections that are characterized by huge volume, rapid velocity, and great variety

Ch 4: Mixed reality (MR)

- Combination of the real physical world mixed with interactive virtual images or objects

Q4-1: What do business professionals need to know about computer hardware?

- Computer Hardware - Hardware Components - Types of Hardware - Server - Computer Data

Ch 4: Server

- Computer designed to support processing request from many remote computers and users

Ch 4: Operating System (OS)

- Computer that controls that computers resources

Ch 4: Computer Data

- Computers represent data using binary digits (bits) - Bits are grouped into 8-bit chunks called bytes

Ch 3: Reporting Goal

- Create information about past performance

Ch 3: Three primary activities in the BI process?

- Data acquisition - BI analysis - Publish Results ( Push Publishing, Pull Publishing )

Ch 3: Data Marts

- Data collection smaller than the data warehouse that addresses the needs of a particular department or functional area of a business

Ch 3: Publish Results

- Delivering business intelligence to the knowledged workers that need it - Push Publishing (delivers BI without request from user) - Pull Publishing (user requests BI results)

Ch 3: Supervised Data Mining

- Develop a model prior to the analysis and apply statistical techniques to data to estimate the parameters of the model

Ch 3: Problems with operational data

- Dirty data, missing values, inconsistent data, data not integrated, wrong granularity, too much data

Ch 4: Computer Hardware

- Electronic components and related gadgetry that input, process, output, and store data according to instructions in computer programs or software

Ch 3: Machine Learning

- Extraction of knowledge from data based on algorithms created from training data (predicting outcomes)

Ch 3: Data Warehouses

- Facility for managing an organization's BI data - Used by larger companies - Functions of data warehouses are to: Obtain, cleanse, organize, relate, and catalog data

Ch 3: Big Data Goal

- Find patterns and relationships in big data

Q4-2: How can new hardware affect competitive strategies?

- First disruptive force = Internet of things (IoT) - Second disruptive force = digital reality devices (virtual reality) - Third disruptive force = self driving cars - Fourth disruptive force = 3D printing - Fifth disruptive force = crypto-currencies

Ch 3: RFM Analysis

- How Recently a customer has ordered, How Frequently a customer has ordered, and how much Money the customer has spent

Ch 3: Problem Solving

- How can we increase sales? - How can we reduce food waste?

Q3-5: Why is Artificial Intelligence (AI) Important?

- Important because organizations hope to use AI to increase automation

Business Intelligence Systems

- Information systems that process operational, social, and other data to identify patterns, relationships, and trends for business professionals and other knowledgeable workers - These patterns, relationships, trends, and predictions are referred to as business intelligence - Software component of a BI system is called a BI application

Ch 3: Content Management Systems

- Information systems that support the management and delivery of documents including reports, web pages, and other expressions of employee knowledge

How do organizations use BI? (Retail store example)

- Informing - Deciding - Problem Solving - Project Management

Q1-1: Why is intro to MIS the most important class in the business school?

- It will give you the background you need to assess, evaluate, and apply emerging information systems technology to business - Can give you the ultimate in job security--marketable skills--by helping you learn abstraction, systems thinking, collaboration, and experimentation - Many well paid MIS related jobs are in high demand

Ch 3: Role of knowledge management systems

- Knowledge management (KM) - Content Management Systems

Q1-3: What is MIS?

- MIS = management information systems (the management and use of information systems that help organizations achieve their strategies - Not to be confused with Information systems (IS) ( assembly of hardware, software, data, procedures, and people that produces information) or Information technology (IT) (the products, methods, inventions, and standards used for the purpose of producing information) - Cannot buy and IS but you can buy and IT (can buy or lease hardware, can license programs and databases, can obtain predesigned procedures - Example: Organization wants to create a facebook page--Facebook provides the IT but you must provide the IS

Q3-8: How does AI work?

- Machine Learning - Algorithm - Natural language processing

Ch 3: Management

- Maintains meta data about the authorized allocation of BI results to the users (tracks what results are available, what users can see them, and schedule of when results will be available)

Ch 3: Two functions of a BI server

- Management - Delivery

Ch 1: Management and Use of Information Systems

- Management: maintain, develop, and adapt - Information systems exist to help organizations achieve their strategies

Ch 4: Two types of application programs exist

- Native applications: programs written to use a particular operating system - Web application: designed to run within a computer browser such as google chrome

Ch 1: Nielsen's Law

- Network connection speeds for high end users will increase by 50% each year - Network connection is increasing---higher speeds = new products, platforms, companies

Ch 4: Virtualization

- One computer hosts many different virtual computers within it

Ch 2: Gaining competitive advantages via business processes

- Organizations can lock in customers by making it difficult or expensive to switch to another product (establishing high switching costs) - Organizations can lock in suppliers by making it difficult to switch to another organization or by making it easy to connect and work with the organization - Creating entry barriers make it difficult and expensive for new competition to enter the market - Establishing alliances - Reducing costs

Q2-1: How does organizational strategy determine information systems structure?

- Organizations examine the structure of their industry and determine a competitive strategy

Ch 2: Competitive advantage via products

- Organizations gain competitive advantage by creating/enhancing new products or services, and differenciating products/services from competitors

Ch 4: Types of Hardware

- Personal computers (PC) - Tablets - Phablets (samsung galaxy note, iphone 8 plus) - Smart phones - Server (dell poweredge server) - Server farms (racks of servers)

Ch 3: BI analysis

- Process of creating business intelligence - reporting , data mining, and Big Data - analyzing data

Ch 1: Information age

- Production, distribution, and control of information is the primary driver of the economy - Started in the 1970's with the Digital revolution (conversion from mechanical and analog devices to to digital devices)

Ch 3: Online Analytical Processing (OLAP)

- Provides the ability to sum, count, and perform other simple arithmetic operations on groups of data

Q3-6: How will artificial intelligence and automation affect organizations?

- Reduce cost, increase productivity, create new services, find unique solutions to age-old problems, and enable an army of smart devices with new capabilities

Q3-3: What are three techniques for processing BI data?

- Reporting Analysis - RFM Analysis - Online Analytical Processing (OLAP)

Ch 3: Reporting analysis

- Reporting Goal - Data mining goal - Big data goal

Ch 1: Metcalfe's Law

- Robert Metcalfe, inventor of ethernet cable - The value of a network is equal to the square of the number of users connected to it - As more digital devices are connected together, the value of the network will increase

Ch 3: Algorithms

- Set of procedures used to solve a mathematical problem that best fits our situation

Ch 4: Horizontal Market Application

- Software provides capabilities common across all organizations and industries (microsoft word, excel, powerpoint)

Q3-4: What are the alternatives for publishing BI?

- Static Reports - Dynamic Reports - Subscriptions

Ch 1: Kryder's Law

- Storage density on magnetic discs are increasing exponentially - Cost of storing data is approaching zero

Ch 4: Mobile Client Operating Systems

- Symbian (europe), blackberry OS, IOS, Android, Windows 10 (mobile)

Ch 1: Components of an information system

- System: Group of components that interact to achieve some purpose - Five-component framework: a model of the components of an information system - Computer hardware, software, data, procedures, and people Present in every information system

Q3-7: What is the goal of AI?

- To create strong AI that can complete all of the same tasks a human can

Ch 3: Subscriptions

- User requests for particular BI results on a particular schedule

Ch 3: BI Server

- Web server application that is built for the publishing of business intelligence

Q1-5: What is information?

- What is information?: Knowledge derived from data - Processed data - Data processed by summing, ordering, averaging, grouping, comparing, or other similar operations

Q2-6: How does competitive strategy determine business processes and the structure of information systems?

- When an organization selects a competitive strategy, it designs business processes that include and link value-generating activities. The processes themselves will determine the organization's IT requirements. It is therefore critical that businesses align their IT with their business objectives.

Ch 3: Deciding

- Which customer shop at each location? - Create custom market plans per store

Ch 3: Data acquisition

- obtaining , cleansing, organizing, relating, and cataloging source data

Ch 3: Knowledge management (KM)

- process of creating value from intellectual capital and sharing that knowledge with employees, managers, suppliers, customers, etc. - Improves process quality and increases team strength

Q3-1: The cost of the business process is?

- the cost of the inputs + the cost of the activities

Ch 2: Repository

A collection of something; a database is a repository of data, and a raw material repository is an inventory of raw materials

Ch 2: Business Processes

A network of activities that generate value by transforming inputs into outputs - The cost of the business process is the cost of the inputs + the cost of the activities

Ch 2: Value Chain

A network of value-creating activities - Consists of five primary activities and four support activities

Ch 1: Bells Law

A new computer class forms roughly each decade establishing a new industry

Q1-6: What are necessary data characteristics?

Accurate Timely - Available in time for its intended use Relevant - Data should be relevant both to the context and subject Just sufficient - Sufficient for the purpose for which it is generated Worth its cost

Ch 2: Value

Amount of money a customer is willing to pay for something

Q2-3: How does analysis of industry structure determine competitive strategy?

An organization responds to the structure of its industry by choosing a competitive strategy - An organization can focus on being a cost leader or it can focus on differentiating its products and services from competitors - The intensity of each of the five forces determines characteristics of the industry, how profitable it is, and how sustainable profitability will be

Ch 2: Customer Service

Assisting customers' use of the products and thus maintaining and enhancing the value of the product

Ch 3: Static Reports

BI documents that are fixed at the time of creation and don't change (printed sales analysis) (usually published as PDF documents)

Ch 2: Examples of forces strong and weak ( Five Forces )

Bargaining power of customers - A large account wants a greater share of profits (strong) - Response: Lower prices or diversify into a new market Threat of substitutions - Ebay offers a local delivery service (medium) - Response: offer differentiating services like shipping, transportation, or entertainment Bargaining power of suppliers - Were increasing the cost of self-driving vehicle chassis (weak) - Response: Buy from a different manufacturer Threat of new entrants - Uber starts offering mobile retail services (medium) - Response: Offer differentiating circumstances and enter other markets Rivalry - Amazon offers drone delivery (weak) - Response: offer additional services or create additional corporate partnerships

Ch 2: Activity

Business function that receives inputs and produces outputs (can be performed by a human, computer system, or both)

Ch 4: Hardware Components

Central processing unit (CPU) - "The brain of the computer" Computer with 2 CPUs is called a dual-processor Computer with 4 CPUs is called a quad-processor CPU works in conjunction with main memory - Reads data and instruction from memory and then stores the results of computations in main memory Main memory is sometimes called RAM (random access memory) Storage hardware = magnetic disks/hard disks to save info Solid state drives (SSD) stores data much faster than ^^

Q3-2: How do organizations use data warehouses and data marts to acquire data?

Data warehouse is the distributor and data mart is the retail store - The difference between data mart and data warehouse- think of data warehouse as distributor in supply chain. Data warehouse takes data from other data manufacturers (operational systems/other sources), and cleans, processes it, and places it on the "shelves" of the data warehouse. The data mart would be the retail store in this supply chain

Ch 2: Margin

Difference between the value that an activity generates and the cost of the activity

Ch 2: Information systems create competitve advantages either as part of a product or by prpviding support to a product

Example: car rental agency - Information system (IS) that provides information about the cars location and provides driving instructions to the destination is part of the car rental, and thus is part of the product itself

Ch 2: First Mover Advantage

Gaining market share by being the first to develop technology in a market segment, doesn't guarantee an advantage over rivals - In fact, can be detrimental because have to spend considerable resources on research and development to educate the public

Q1-4: How can you use the five component model?

Hardware,Software,Data,Procedures,People - Actors: Hardware, People - Instructions: Software, Procedures - Bridge: Data - Computer Side: Hardware, Software - Human Side: Procedures, People ( Automation moves work from human side to computer side ) ( Increasing degree of difficulty of change ) - Symmetric: Outer components take action, software are instructions for hardware and procedures are instructions for people, data bridges computer side to human side. Most important component in the five component model is people

Ch 2: Sales and Marketing

Inducing customers to buy the products and providing a means for them to do so

Q1-2: How will MIS affect me?

Job security - Only job security that exists is "a marketable skill and the courage to use it" Strong routine (Cognitive skills) Abstract reasoning - Construct a model or representation Systems thinking - Model system components and show how components inputs and outputs relate to each other Collaboration - Develop ideas and plans with others. Provide and receive critical feedback Ability to experiment - Create and test promising new alternatives, consistent with available resources Technology Skills Gap - Mismatch between the high levels of tech skills demanded by employers and the low level of tech skill held by employees As the price of computer technology plummets, the value of jobs that benefit from it increase dramatically

Ch 2: Second Mover Advantages

Many of the leading companies today did this - Gaining market share by following a pioneering company and imitating its products/services (reduces research and development costs)

Q2-2: What five forces determine industry structure?

Michael Porter: - Five forces model - Determine industry profitability: bargaining power of customers, threat of substitutes, bargaining power of suppliers, threat of new entrants, rivalry amongst existing firms - The intensity of each of the five forces determines characteristics of the industry, how profitable it is, and how sustainable profitability will be

Q2-4: How does competitive strategy determine value chain structure?

Organizations examine the structure of their industry and determine a competitive strategy Competitive strategy determines value chains determines business process Structure of business processes determines design of supporting information systems Industry structure > Competitive Strategy > Value Chains > Business Processes > Information Systems

Ch 2: Inbound Logistics

Receiving, storing, and disseminating inputs into the company for the products

Q2-7: How do information systems provide competitive advantages?

Some competitive techniques are created via products and services, and some are created via the development of business processes

Q2-5: How do business processes generate value?

Transforming inputs into outputs

Ch 2: Operations/manufacturing

Transforming inputs into the final product

Ch 3: Informing

Which products are selling quickly/most profitable?

Ch 2: Outbound Logistics

collecting , storing, and physically distributing the products to buyers

Ch 1: Computer based information system

information system in this book

Ch 2: Value Chain Linkages

relationships between the way one value activity is performed and the cost or performance of another Porter's model of business activities include linkages (interactions across value activities) - Example: manufacturing systems use linkages to reduce inventory costs