CHAPTER 1: Management Information Systems
What is machine to machine?
(M2M) refers to technologies that allow both wireless and wired systems to communicate with other devices of the same type.
What is the challenge of companies with regard to departments/functional business units?
Common Departments Working Independently Accounting Finance Human Resources Marketing OM Sales
What are the 4 core drivers of the information age? Be able to provide an example of each.
Data Information Business Intelligence Knowledge
Information
Data converted into a meaningful and useful context
What is the value of real-time data?
Extremely valuable because you're able to get information quickly. E.g. Credit cards banks did not know how much you had on your credit card statement. It allows you to have a better opportunity to make a strategic decision, better decision to predict trends
How useful is the value of information?
Information - Data converted into a meaningful and useful context, but it is not really useful
Business intelligence
Information collected from multiple sources (suppliers, buyers, competition, business partners) that analyzes patterns, trends, and relationships for strategic decision making
What is the MIS solution for departments/functional business units?
Interdependent decisions have a positive effect on the company to help make business decisions
Which processes in the value chain are primary activities and those that are support activities?
Primary value activities Inbound logistics - Acquires raw materials and resources, and distributes Operations - Transforms raw materials or inputs into goods and services Outbound logistics - Distributes goods and services to customers Marketing and sales - Promotes, prices, and sells products to customers Service - Provides customer support Support value activities Firm infrastructure - Includes the company format or departmental structures, environment, and systems Human resource management - Provides employee training, hiring, and compensation Technology development - Applies MIS to processes to add value Procurement - Purchases inputs such as raw materials, resources, equipment, and supplies
Data
Raw facts that describe the characteristics of an event or object
MIS Department Roles and Responsibilities
SPITK: Security Officer - prevents hackers and viruses Privacy Officer - ethical and legal uses Information Officer - oversees use of MIS strategies Technology Officer - ensure speed, accuracy, availability, reliability of the MIS Knowledge Officer - collects, maintain, distributes company knowledge
4 tools are used to analyze competitive intelligence
SWOT Analysis Five Forces Model The Three Generic Strategies Value Chain Analysis
Knowledge
Skills, experience, and expertise coupled with information and intelligence that creates a person's intellectual resources
Systems Thinking
Systems thinking - 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
What is information age?
The PRESENT time, during which infinite quantities of FACTS are widely available to anyone who can use a computer:
What happens to competition if the forces are weak or strong?
Weak strengths Strong weaknesses Weak opportunities Strong threats = increased competition
What is the internet of Things (IoT)?
a world where interconnected, Internet-enabled devices or "things" can collect and share data without human intervention.
Understand which SWOT category is affected by external or internal influences.
internal factors - the strengths and weaknesses internal to the organization external factors - the opportunities and threats presented by the environment external to the organization
Competitive advantage Is it temporary or permanent? Why?
o Competitive advantage - A product or service that an organization's customers place a greater value on than similar offerings from a competitor o Competitive advantages are temporary. Eventually others will copy. Always try to be the first-mover
Competitive intelligence
the process of gathering information about the competitive environment, including competitors' plans, activities, and products, to improve a company's ability to succeed. It means understanding and learning as much as possible as soon as possible about what is occurring outside the company to remain competitive.