OMIS 350- Chapter 1&2 Exam 1

___________ offer greater flexibility in organization and management. Time shifting, space shifting One answer is that by allowing business to be conducted at any time (time shifting) and any place (space shifting), they are ideally suited for global operations which take place in remote locations and very different time zones.

digital firms

Information systems use this strategetic business objective: -Serving customers well leads to customers returning, which raises revenues and profits. -Example: High-end hotels that use computers to track customer preferences and used to monitor and customize environment -This allows them to provide vital inputs, which lowers costs. -Example: JCPenney's information system which links sales records to contract manufacturer JCP's IS digitally links the supplier to each of its stores worldwide. Suppliers can ensure a continuous flow of products to the stores to satisfy customers demands.

Customer and supplier intimacy

A firm in one which nearly all organization's significant business relationships with customers, suppliers, and employees are digitally enabled and key corporate assets are managed through digital means

Digital firm

-Systems for linking the enterprise -Span functional areas -Execute business processes across firm -Include all levels of management -Four major applications: 1. Enterprise systems 2. Supply chain management systems 3. Customer relationship management systems 4. Knowledge management systems

Enterprise applications

-Internet has drastically reduced costs of operating on global scale -Increases in foreign trade, outsourcing -Presents both challenges and opportunities

Globalization opportunities

Emerging mobile digital platform Growing business use of "big data" Growth in cloud computing

How information systems are transforming business

Information systems use this strategetic business objective: Without accurate information: -Managers must use forecasts, best guesses, luck Results in: -Overproduction, underproduction -Misallocation of resources -Poor response times -Poor outcomes raise costs, lose customers -Example: Verizon's Web-based digital dashboard to provide managers with real-time data on customer complaints, network performance, line outages, and so on

Improved decision making

-Significant business relationships are digitally enabled and mediated. -Core business processes are accomplished through digital networks. -Key corporate assets are managed digitally.

In the emerging digital firm

-Set of interrelated components -Collect, process, store, and distribute information -Support decision making, coordination, and control ________ vs. data Data are streams of raw facts. Info is data shaped into meaningful form.

Information system

Referencing that slide again to drive home that point. Students may not understand the decimals in the "ACTUAL versus PLANNED" category, where anything above 1.00 represents more sales than planned and anything less represents a disappointing result of fewer sales than planned.

MIS report

Information systems use this strategetic business objective: -This describes how company produces, delivers, and sells product or service to create wealth -Information systems and technology a major enabling tool Examples: Apple's iPad, Google's Android OS, and Netflix.

New products, services, and business models

-Serve operational managers and staff -Perform and record daily routine transactions necessary to conduct business *Examples: sales order entry, payroll, shipping -Allow managers to monitor status of operations and relations with external environment -Serve predefined, structured goals and decision making The purpose of these systems is to answer routine questions about the flow of transactions through the organization. These systems are a necessity for any business.

Transaction processing systems

The way a business organizes its workflows, the method it uses to accomplish tasks, and the way it coordinates its activities among employees, customers, and suppliers determines its _____________ -Flows of material, information, knowledge Sets of activities, steps -May be tied to functional area or be cross-functional Businesses: Can be seen as collection of _____________ ___________ may be assets or liabilities example: This could include anything from ordering a hamburger at McDonald's to applying for a driver's license at the DMV. Emphasize that studying a firm's ___________ is an excellent way to learn a great deal about how that business actually works. How could this be a liability? Think of some dysfunctional ones or ask the students to come up with some really poor ones.

business processes

Information systems use this strategetic business objective: Without accurate information: -Delivering better performance -Charging less for superior products -Responding to customers and suppliers in real time -Examples: Apple, Walmart, UPS Citibank was the first banking firm to introduce ATMs and created a major _____________ over their competitors forcing them to provide ATM services to customers

competitive advantage

-Provide information to coordinate all of the business processes that deal with customers -Sales -Marketing -Customer service -Helps firms identify, attract, and retain most profitable customers

customer relationship management systems

Help process the paperwork necessary to keep an organization functioning.

data workers

-Serve middle management -Support nonroutine decision making *Example: What is the impact on production schedule if December sales doubled? May use external information as well TPS / MIS data

decision support systems

-Collects data from different firm functions and stores data in single central data repository -Resolves problem of fragmented data -Enable: -Coordination of daily activities -Efficient response to customer orders (production, inventory) -Help managers make decisions about daily operations and longer-term planning

enterprise systems

-Support senior management -Address nonroutine decisions *Requiring judgment, evaluation, and insight -Incorporate data about external events (e.g., new tax laws or competitors) as well as summarized information from internal MIS and DSS -Example: Digital dashboard with real-time view of firm's financial performance: working capital, accounts receivable, accounts payable, cash flow, and inventory Emphasize the connection between ESS, MIS, and DSS. ESS rely on accurate inputs from a firm's MIS and DSS to provide useful information to executives. These systems should not exist in isolation from one another. If they are isolated from one another, it is a kind of organizational dysfunction, probably inherited from the past. Note that the digital dashboard is a common feature of modern-day ESS. Emphasize that a critical feature of ESS is ease of use and simplicity of display. Executives using an ESS want quick access to the most critical data affecting their firm.

executive support systems

The digital firm must connect each area and each management level to one another. Data input into the system in manufacturing must be made available to sales, accounting, and shipping. Examples: -Manufacturing and production *Assembling the product -Sales and marketing *Identifying customers -Finance and accounting *Creating financial statements -Human resources *Hiring employees Other examples include checking the product for quality (manufacturing and production), selling the product (sales and marketing), paying creditors (finance and accounting), and evaluating job performance (human resources). You could ask students to contribute other examples of business processes and describe which of the four types they are.

functional business processes

-Ability to use information technology and -Ability to implement corporate strategies and achieve corporate goals In the opening case, the UPS Interactive Session later in the chapter, and with many of the Interactive Sessions and opening cases in the book, it will be useful to ask students to explain how various information systems succeeded or failed in achieving the six strategic business objectives. You might ask the students to think about some other business objectives and think about how IT might help firms achieve them. For instance, speed to market is very important to firms introducing new products. How can IT help achieve that objective?

growing interdependence between...

Organizational dimension of information systems ____________________, responsibility Senior management Middle management Operational management Knowledge workers Data workers Production or service workers

hierarchy of authority

-Increasing efficiency of existing processes *Automating steps that were manual Enabling entirely new processes -Change flow of information *Replace sequential steps with parallel steps *Eliminate delays in decision making *Support new business models Example are downloading a song from iTunes or buying a book or e-book from Amazon. You might also mention the Amazon book reader Kindle which is continuously connected to the Internet and allows customers to download books and pay for them using Amazon's one-click purchase method.

info technology enhances business processes by...

Raw data from a supermarket checkout counter can be processed and organized to produce meaningful information, such as the total unit sales of dish detergent or the total sales revenue from dish detergent for a specific store or sales territory.

info vs data system

Firms ________ _________ in information systems to achieve six strategic business objectives: 1. Operational excellence 2. New products, services, and business models 3. Customer and supplier intimacy 4. Improved decision making 5. Competitive advantage 6. Survival

invest heavily

-Support processes for capturing and applying knowledge and expertise -How to create, produce, deliver products and services -Collect internal knowledge and experience within firm and make it available to employees -Link to external sources of knowledge

knowledge management systems

help create knowledge for the organization

knowledge workers

__________ dimension of information systems Managers set organizational strategy for responding to business challenges In addition, managers must act creatively: Creation of new products and services Occasionally re-creating the organization (think UPS)

management

-Serve middle management -Provide reports on firm's current performance, based on data from TPS -Provide answers to routine questions with predefined procedure for answering them -Typically have little analytic capability

management info systems

Information systems use this strategetic business objective for: -Improvement of efficiency to attain higher profitability -Information systems, technology an important tool in achieving greater efficiency and productivity -Walmart's Retail Link system links suppliers to stores for superior replenishment system

operational excellence

Using information systems effectively requires an understanding of the ________, ___________, and _________ the systems. An information system creates value for the firm as an organizational and management solution to challenges posed by the environment.

organization, management, information technology

-Separation of business functions -Sales and marketing -Human resources -Finance and accounting -Manufacturing and production -Unique business processes -Unique business culture- integral part of its info system. UPS focuses on customer service whereas Walmart is centered on being a low-cost retailer -Organizational politics

organizational dimension of info systems

Three activities of information systems to _______ organizations need -Input: Captures raw data from organization or external -environment -Processing: Converts raw data into meaningful form -Output: Transfers processed information to people or activities that use it -Hardware performs input and output and software performs processing. Processing converts raw data into a more meaningful form. Feedback: Output is returned to appropriate members of organization to help evaluate or correct input stage. Computer/computer program vs. information system Computers and software are technical foundation and tools, similar to the material and tools used to build a house. "Persware" is needed to complete the feedback. Feedback tends to be the most overlooked component of an information system.

produce info

get the work done

production and service workers

Manage firm's relationships with suppliers Share information about: Orders, production, inventory levels, delivery of products and services Goal: Right amount of products to destination with least amount of time and lowest cost

supply chain management systems

Information systems use this strategetic business objective: Without accurate information: -Information technologies as necessity of business -Industry-level changes -Example: Citibank's introduction of ATMs -Governmental regulations requiring record-keeping -Examples: Toxic Substances Control Act, Sarbanes-Oxley Act -Dodd-Frank Act

survival

________ dimension of information systems Computer hardware and software Data management technology Networking and telecommunications technology Networks, the Internet, intranets and extranets, World Wide Web IT infrastructure: provides platform that system is built on (think UPS)

technology