Chapter 1 Quiz Review MIS
Explain Porter's Five Forces Model and the role it plays in decision making
Buyer Power, Supplier Power, Threat of Substitute Products or Services, Threat of New Entrants, and Rivalry among existing competitors make up the Five Forces model. Buyer power is the ability of buyers to affect the price they must pay for an item. Supplier power is the suppliers ability to influence the prices they charge for supplies. Threat of substitute products or services in high when there are many alternatives to a product or service and low when there are few alternatives from which to choose. Threat of new entrants is high when it is easy for new competitors to enter a market and low when there are significant barriers to joining a market. Rivalry among existing competitors is high when competition is fierce in a market and low when competitors are more complacent.
How can a manager turn data into information?
By analyzing the data and converting it into meaningful and useful context
The MIS Solution
Common departments working interdependently Input process output, feedback
Outlier
Is a data value that is numerically distant from most of the other data points in a dataset
Velocity
The analysis of streaming data as it travels
Productivity
The rate at which goods and services are produced based on total output given total inputs
The core drivers of the Information Age
data, information, business intelligence, knowledge
Marketing
supports sales by planning, pricing, and promoting goods or services
Services
tasks people perform that customers will buy to satisfy a want or need
data democratization
the ability for data to be collected, analyzed, and accessible to all users
Analytics
the science of fact-based decision making
Predictive Analytics
use techniques that extract information from data and use it to predict future trends and identify behavioral patterns
Why is it important for a company to operate cross-functionally?
- Because the decisions/actions by one dept. can affect other depts for the firm to be successful all depts must work together as a single unit sharing common info and not operate independently (or in silo) - each dept has its own focus on data, but none can work independently if the company is to operate as a while. all dept's must work together as a single unit sharing common info and not operate independently - companies that operate departmentally are seeing only one part of the company (elephant blind man ex) a critical mistake that hinders successful operation -systems are the primary enabler of cross functional operations to integrate all depts
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
entry barrier
A feature of a product or service that customers have come to expect and entering competitors must offer the same for survival
Business Strategy
A leadership plan that achieves a specific set of goals or objectives
Porter's five forces model
Analyzes the competitive forces within environment in which a company operates to assess the potential for profitability in an industry
MIS Department Roles and Responsibilities
Chief Information Officer (CIO) Chief Knowledge Officer (CKO) Chief Privacy Officer (CPO) Chief Security Officer (CSO) Chief Technology Officer (CTO) Chief Intellectual property officer Chief automation officer Chief sustainability officer Chief user experience officer
What is data and why is it important to a business?
Data are raw facts that describe the characteristics of an event or object. Before the information age, managers manually collected and analyzed data, a time-consuming and complicated task without which they would have little insight into how to run their business.
Variable
Data characteristic that stands for a value that changes or varies over time
information
Data converted into a meaningful and useful context
Porter's three generic strategic
Generic business strategies that are neither organization nor industry specific and can be applied to any business, product, or service.
Rivalry among existing competitors
High when competition is fierce in a market and low when competitors are more complacent
The threat of new entrants
High when it is easy for new competitors to enter a market and low when there are significant entry barriers to joining a market
The threat of substitute products or services
High when there are many alternatives to a product or service and low when there are few alternatives from which to choose
Business Intelligence
Information collected from multiple sources such as suppliers, customers, competitors, partners, and industries that analyzes patterns, trends, and relationships for strategic decision making
Weaknesses
Lack of strategic direction
Explain MIS and the role it plays in a company and in global business?
M.I.S. is a business function that moves information about people products and processes across the company to facilitate decision making and problem solving. M.I.S. helps a business operate cross-functionally.
Structured data sources
Machine generated data and human generated data
Unstructured data
Not defined and does not follow a specified format
product differentiation
Occurs when a company develops unique differences in its products or services with the intent to influence demand
first-mover advantage
Occurs when an organization can significantly impact its market share by being first to market with a competitive advantage
Chief Knowledge Officer (CKO)
Responsible for collecting, maintaining, and distributing the organization's knowledge
Chief Privacy Officer (CPO)
Responsible for ensuring the ethical and legal use of information
Explain systems thinking and how it supports business operations.
Systems thinking is a way of keeping all operations on track by monitoring inputs and outputs and gathering feedback on each part. It is important to business operations because decisions can be made with regards to the entire system rather than from one department.
fact
The confirmation or valudation of an event or object
Volume
The scale of data
Supplier Power
The suppliers' ability to influence the prices they charge for supplies (including materials, labor, and services)
veracity
The uncertainty of data, including biases, noise, and abnormalities
Why would a company want to have a CIO, CPO, CSO?
These positions hold responsibility and oversee MIS
Do you agree that MIS essential for businesses operating in the Information Age?
Yes. MIS is a business function that moves information about people products and processes across the country to facilitate decision making and problem solving. MIS helps a business operate cross functionally. Reduces time, make a company more technologically sound
Big Data
a collection of large, complex data sets, including structured and unstructured data, which cannot be analyzed using traditional database methods and tools
System
a collection of parts that link to achieve a common purpose
structured data
a defined length, type, and format and includes numbers, dates, or strings such as Customer Address
Report
a document containing data organized in a table, matrix, or graphical format allowing users to easily comprehend and understand information
Competitive advantage
a feature of a product or service on which customers place a greater value than they do on similar offerings from competitors
Stakeholder
a person or group that has an interest or concern in an organization
Static report
a report created once based on data that does not change
business unit
a segment of a company (such as accounting, production, marketing) representing a specific business function
snapshot
a view of data at a particular moment in time
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
Internet of Things (IoT)
a world where interconnected, Internet-enabled devices or "things" can collect and share data without human intervention
knowledge assets
also called intellectual capital, are the human, structural, and recorded resources available to the organization
dynamic reports
changes automatically during creation
If the supplier power is high, the supplier can influence the industry by:
charging higher prices, limiting quality or services, shifting costs to industry participants
supply chain
consists of all parties involved, directly or indirectly, in obtaining raw materials or a product
Strengths
core competencies, market leaders, cost advantages, excellent management
switching costs
costs that make customers reluctant to switch to another product or service (reduce buyer power by manipulating it)
Machine-generated data
created by a machine without human intervention.
Human-generated data
data that humans, in interaction with computers, generate
Finance
deals with strategic financial issues including money, banking, credit, investments, and assets
Chief Automation Officer (CAO)
determines if a person or business process can be replaced by a robot or software
variety
different forms of structured and unstructured data
opportunities
expanded product line, increase in demand, new markets, new regulations
Data scientist
extracts knowledge from data by performing statistical analysis, data mining, and advanced analytics on big data to identify trends, market changes, and other relevant information
knowledge facilitators
help harness the wealth of knowledge in the organization
SWOT analysis
identifying internal strengths (S) and weaknesses (W) and also examining external opportunities (O) and threats (T)
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
Knowledge
includes the skills, experience, and expertise, coupled with information and intelligence, that creates a person's intellectual resources
Knowledge workers
individuals valued for their ability to interpret and analyze information
Feedback
information that returns to its original transmitter (input, transform, or output) and modifies the transmitter's actions
MIS skills gap
is the difference between existing MIS workplace knowledge and the knowledge required to fulfill the business goals and strategies
human resources
maintains policies, plans, and procedures for the effective management of employees
Operations Management
manages the process of converting or transforming resources into goods or services
goods
material items or products that customers will buy to satisfy a want or need
Algorithms
mathematical formulas placed in software that performs an analysis on a data set
Threats
new entrants, substitute products, shrinking markets, costly regulatory requirements
chief sustainability officer (CSO)
oversees the corporation's "environmental" programs such as helping adapt to climate change and reducing carbon emissions
Sales
performs the function of selling goods or services
Data
raw facts that describe the characteristics of an event or object
Accounting
records, measures, and reports monetary transactions
Machine to Machine (M2M)
refers to devices that connect directly to other devices
Chief Information Officer (CIO)
responsible for 1) overseeing all uses of MIS and 2) ensuring that MIS strategically aligns with business goals and objectives
Chief Data Officer (CDO)
responsible for determining the types of information the enterprise will capture, retain, analyze, and share
Chief Security Officer (CSO)
responsible for ensuring the security of business systems and developing strategies and safeguards against attacks by hackers and viruses
Chief Technology Officer (CTO)
responsible for ensuring the speed, accuracy, availability, and reliability of the MIS
loyalty programs
reward customers based on their spending (reduce buyer power)
Buyer power
the ability of buyers to affect the price they must pay for an items. Factors used: Number of customers Their sensitivity of prices Size of orders Differences between competitors Availability of substitute products
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
Anomaly Detection
the process of identifying rare or unexpected items or events in a data set that do not conform to other items in the data set
Production
the process where a business takes raw materials and processes them or converts them into a finished product for its goods or services
Business Analytics
the scientific process of transforming data into insight for making better decisions
Prescriptive Analytics
use techniques that create models indicating the best decision to make or course of action to take
Descriptive Analytics
use techniques that describe past performance and history
Four Common Characteristics of Big Data
variety, veracity, volume, velocity
Information Age
when infinite quantities of facts are widely available to anyone who can use a computer
Chief User Experience Officer (CUEO)
will create the optimal relationship between user and technology
Chief Intellectual Property Officer (CIPO)
will manage and defend intellectual property, copyrights, and patents