BADM 350 Quiz 1

flat file

excel file Insertions, updates, and deletions all cause problems

Why do firms take on ERP?

- Integrate financial info... - Integrate order info... - Standardize/speed up manufacturing... - Reduce inventory ... - Standardize HR information ...

value chain

views an organization as a series of processes, each of which adds value to the product or service for each customer

On-line Analytical Processing (OLAP)

• Cube of tables showing relationships among related variables • Operates on specially organized data/relational database data • Easily answers questions like "What products are selling well?" or "Where are the weakest-performing sales offices?" • Allows users to perceive data as a multidimensional data cube - Slice and dice - Drill down - Roll Up • Fast in response • Enables timely decision-making • Use data stored in datawarehouses to derive ratios and degrees of predetermined relationships

Information

• Data that have meaning within a context • Raw data or data that have been manipulated

Classification

• Facts in predefined groups • E.g.: Person (record) is income earning or not

Overall fit

• Off the rack • Off the rack and tailored to fit • Custom made

Forecasting

• Patterns to predictions • E.g., Predicting likelihood of event based on attributes

Raw Data

• Time-consuming to read • Difficult to understand

database advantages

- Reduced data redundancy - Application/data independence - Better control - Flexibility

Why does ERP fail?

- Resistance to Change - both from mgmt & work force - Customization/patchwork - Lack of Top mgmt support

Data mining

- Sequence or path analysis • Finding patterns where one event leads to another • E.g., repeated customer complaints & switching

traditional file advantages

- Simplicity - Efficiency - Customization

Hidden costs of ERP

- Training - Integration&Testing - Customization - Data conversion & analysis - Human Talent & Expertise

Data

A "given" or fact: a number, a statement, or a picture • The raw materials in the production of information

ER Model

A detailed, logical representation of the data for an organization or business area • Expressed in terms of Entities, Relationships and Attributes

One sided market

A market that derives most of its value from a single class of users

Solid implementation plans

A plan is needed to monitor the quality, objectives, and timelines

Multi homing costs

A. Maintaining two residences B. Subscribing to multiple networks C. Switching from one network to another D. Creating network effects

Strategic position

Broad/focused cost leadership Broad/focused differentiation

composite identifier

An identifier that consists of a composite attribute consists of multiple attributes

Transaction Processing Systems (TPS)

Analysts ERP

same side exchange

Benefits derived by interaction among members of a single class of participant

DSS

Contain models, or formulas, that manipulate data into information • Cost benefit analysis, Decision Process selection, Breakeven analysis

EIS

Can gather information from vast amounts of data for high-level executives - Highly useful in control and planning output: projections

technological leap-frogging

Competing by offering a new technology that is so superior to existing offerings that the value overcomes the total resistance that older technologies might enjoy via exchange, switching cost, and complementary benefits

exchange

Exchange creates value and every product or service subject to network effects fosters some kind of exchange

Clustering

Finding groups of facts (such that there is high similarity among data in a group)

group decision support systems

Generate ideas, establish priorities, and reach decisions in group environment - E.g. Sharepoint - Link

First Step in Analyzing Strategic Impact of IT

Industry analysis

One sided network

Market that derives value from 1 kind of users

two-sided market

Markets comprised of two distinct categories of participants, both of which that are needed to deliver value

The Weather Channel Case

Post-hoc discussion- Revisiting Platforms, Data as a platform Multi-homing costs for consumers and content providers

Complementary Benefits

Products or services that add additional value to the network

TPS

Record data and perform basic processing • Cash registers and ATMs INPUT: transaction,events Processing: sorting, listing, merging, updating OUTPUT: detailed reports, lists, summaries

Proper Business Analysis

Successful companies spend up to 10 percent of the project budget on a business analysis

Data Warehousing

Techniques to store very large amounts of historical data in databases, especially for business intelligence • The storage of virtually all transactional data, master data (customer, material), and metadata at a very detailed level

staying power

The long-term viability of a product or service • Networks with greater numbers of users suggest a stronger staying power

Degree of a relationsihp

The number of entity types that participates in a relationship - Unary: (degree 1) also called "Bill of Materials" or "Recursive" - Binary: (degree 2) Most common - Ternary: (degree 3)

Cardinality

The number of instances of an entity with another entity

Two sided network

Two distinct user groups whose respective members consistently play the same role in transactions - Subsidies for early adopters - Permanent subsidization - Exclusivity - Marquee users

cross side exchange

When an increase in the number of users on one side of the market creates a rise in the other side

Network effects

When the value of a product or service increases as its number of users expands - Also known as network externalities or Metcalfe's LawWhen network effects are present: - The value of a product or service increases as the number of users grows - They're among the most important reasons you'll pick one product or service over another

Extraction, transformation, and loading (ETL)

a process that extracts information from internal and external databases, transforms the information using a common set of enterprise definitions, and loads the information into a data warehouse

database

a single table or collection of related tables

Business process

a standardized set of activities that accomplish a specific task, such as processing a customer's order

Netflix case

advertising builds awareness, but brands are built through customer experience huge selection, ability to find what you want, timely arrival, ease of use and convenience, fair price

Identifier (Primary key)

an attribute (or combination of attributes) that uniquely identifies each instance of an entity type. Ex: Student ID (or Student name & address) VIN Number Home Team & Visiting Team

Executive Information systems(EIS)

executives ERP

what-if analysis

checks the impact of a change in an assumption on the proposed solution

Data mart

contains a subset of datawarehouse information

the long tail

cost of production and distribution drop (studios get fraction of subscription revenue, studios give netflix discounts) selection cannot be matched by traditional stores geographic constraints disappear

database management systems

database software for creating, maintaining, and manipulating data

Porter's Five Forces

determines industry attractiveness

imitation-resistant value chain

developed a way of doing business that others will struggle to replicate

Extended ERP Component

extra components that meet the organizational needs not covered by the core components and primarily focus on external operations

Goal seeking analysis

finds the inputs necessary to achieve a goal such as a desired level of output

Support value activities

firm infrastructure human resource management technology development procurement

ERP

high efficiency, low Support for Innovation Experimentation Flexibility

Supplier Power

high when buyers have few choices low when there are many

Buyer Power

high when buyers have many choices to choose from low when they have few Reducing Buyer Power: Differentiation Network Effects Switching costs Explicit - termination fee Implicit - loyalty program

Rivalry among existing competitors

high when competition is fierce low when complacent

Threat of New Entrants

high when it is easy for competitors to enter low when difficult Barriers: patents, scale/volume, brands, technology, timing, imitation resistant supplier relationships

Threat of Substitutes

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

Enterprise Resource Planning

integrates all departments and functions throughout an organization into a single IT system (or integrated set of IT systems) so that employees can make enterprisewide decisions by viewing enterprisewide information on all business operations

structured query language

language used to manipulate databases

Decision support systems (DSS)

managers ERP

Effectiveness IT Metric

measures the impact IT has on business processes and activities including customer satisfaction, conversion rates, and sell- through increases flexibility, usability, customer satisfaction, conversion rates, financial

Efficiency IT Metric

measures the performance of the IT system itself including throughput, speed, and availability labor reduction support tactical and operational decisions throughput, transaction speed, system availability, information accuracy, web traffic, response time

relational file

more detailed and easy to read

dicing

part dimension current week's sales for iron (specific part)

Management Information Systems (MIS)

provide reports and access to company data middle managers

Manipulated Data

provides useful info

primary value activities

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

Bombardier Case

senior managers making business successful choice of two extremes incompatible and inconsistent systems difficult to acquire companies post ERP did much better in phase two and learned from mistakes

Networks

system of interconnected nodes (people, companies, places, or things)

slicing

time dimension sales data for the week

Core ERP Component

traditional components included in most ERP systems and they primarily focus on internal operations

Competitive Advantage

valuable rare imperfectly imitable non substitutable

derived attribute

values can be related from related attribute values