I S 300 Midterm
Impression based advertising**
-popular on social media and mobile devices -CPM (cost per mille (thousand)) impressions - cost for every thousand display of ads
4 ERP Benefits**
-quality/efficiency -cost saving -decision support & KM -enterprise agility
eCommerce Revenue models (7 ways e commerce makes money)**
-sales (product and commissions) -subscription -transaction fee -advertising -freemium (membership fee) -affiliate (referral fee) -technology (maintenance/update, integration)
Typical applications of TPS in 4 categories of business*
-sales/mktg: customer service, sales, promotion tracking, price changes, dealer communications -manufacturing: scheduling, purchasing, shipping, operations -finance: billing, accounting, ledger, payroll -HR: personnel records, benefits, compensation, labor, training
How do bar codes work?**
-size of bar has different number assigned to it -arrange bars so every product has different code -first 11 digits are ID #s and last digit is part of error checking process -add every other number together, multiply 1st set by 3 and second set by 1, add together - should add to multiple of 10 (with the last digit added)
Maintaining customers in information era*
-social media provides challenges and opportunities -people complain ALOT when not satisfied -empowered and involved customers
Managerial assets**
-strong senior mgmt support for tech investment and change -incentives for mgmt innovation -teamwork and collaborative work environments -training programs to enhance mgmt skills -mgmt culture that values flexibility and knowledgeable decision making
Organizational assets**
-supportive organizational culture that values efficiency and effectiveness -appropriate business model -efficient business processes -decentralized authority -distributed decision making rights -strong IS development team
8 Reasons eCommerce is different? **
-ubiquity (can be done anywhere) -global reach -universal standards -increases richness -interactivity -information density -personalization -social technology
Global outsourcing**
-use people from elsewhere to work for company -cheaper, more focused, higher quality, time saving -customer service = outsourced
7 eCommerce business models*** !!
1 e-tailer - online retail store for goods (amazon) 2 content provider - provides digital content (WSJ.com) 3 transaction broker (B2C) - facilitates online transactions (expedia.com) 4 market creator (C2C) - provides a trading platform for individuals and firms (ebay) 5 community provider - online community (FB) 6 portal - provides initial point of entry to web, specialized content, services (yahoo, MSN) 7 service provider - provides online services, including search service (paypal, flickr)
LAB: If you copy the formula =$B38 in cell A1 into cell E1, the result will be: A) The column part will remain the same B) The row part will remain the same C) Both the column and row will remain the same D) Both will change
C
IT (information technology)**
a subject studying technology and the management and process of info especially in large organizations -use of tech to convert, store, protect, process, transmit and retrieve info
IS definition**
a system that collects and processes data (info) and provides it to managers at all levels for decision making, planning, program implementation and control -also refers to the business discipline that studies the mgmt, development, and analysis of IT in business
IT investment v. total investment*** !!
no matter if total investment increases or decreases over time, IT investment is constantly gradually increasing - more important over time
Amazon.com: evolution of business model*
-book seller -> earths largest store -transaction to service based -standardized -steady demand -target market = college students ( textbooks ) - easy logistic management (textbooks)
3 types of eCommerce (__2__)**
-business to customer (B2C): walmart.com -business to business (B2B): grainger.com -consumer to consumer (C2C): ebay.com *m commerce - mobile phone
Advantages of regular shopping*** !!
-customer reactions/attitude -transaction costs - visible (explicit) /invisible (implicit) -delayed gratification - high v low
Functions of supply chain mgmt (SCM) systems**
-decide when and what to produce, store, move -track order status -check inventory/monitor inventory levels -reduce inventory/transport/warehouse costs -rapidly communicate orders/product design -plan production based on actual demand *want low inventory but meeting demand
3 challenges of ERP**
-difficult to build -technology -centralized organizational coordination and decision making
Downstream v upstream supply chains**
-downstream: materials/parts -upstream: money -both directions: info/tech
ZARA case discussion: what model do they use?*** !!
-fast fashion model - do not predict trends - observe trends and immediately put them in stores
Reasons for cost transparency**
-information (price comparison is easy) -brand premium -more rational shopping -different objective for new market entrant (building customer base v making profit)
Properties of Information goods **
-information based -big fixed cost -small variable cost -varied mktg/inventory/delivery costs -easy versioning and pricing
Social assets **
-internet and telecommunications infrastructure -IT enriched educational programs raising labor force computer literacy -standards -laws and regulations creating stable and fair mkt environments -tech and service firms in adjacent markets to assist implementation
Functions of CRM**
-manages ways used by firms to deal with existing and potential customers -capture data from sources - social media, etc -distribute customer info to systems and touch points *touch points: method of interaction with customers
Digital v traditional goods comparison *** !!
-marginal cost -production cost -copying cost -delivery cost -inventory cost -mktg cost -versioning cost -pricing strategy
m Commerce service *
-mobile devices - more customer info -location based services (geosocial, geoadvertising, geoinfo services)
Questions IT professionals answer*
-new technology: build or buy? -project cost/time/resource estimate -which tech is best fit? -all of our vendors have upgraded should we too? -pros/cons of acquiring a company
Pricing in a digital market - comparing online pricing to store pricing**
-online pricing < store -fluctuation online > store -dispersion online > store -low menu costs online!!
3 Complementary assets**
-organizational -managerial -social
Cost transparency*
-people know more about how things are made (internet) -impacts: low profits, services and products as commodities, customer loyalty, reputation damage by price unfairness
Key supply chain processes**
-plan -source -make -deliver (return)
4 systems & business processes **
1 manufacturing/production system -assembling product, checking quality, producing bills of materials 2 sales and marketing system -ID customers, product awareness, selling product 3 finance and accounting system -paying creditors, creating financial statements, managing cash accounts 4 human resources system -hiring employees, evaluating performance, enrolling employees in benefit programs
7 Effects of Internet on marketplace*** !! (think of digital v traditional market)
1 reduces info asymmetry 2 offers greater flexibility (reduced transaction costs, lower menu costs, greater price discrimination, dynamic pricing) 3 reduces/increases switching costs 4 delays gratification 5 increases market segmentation 6 has stronger network effects (value of product to user depends on how many other users there are) 7 more disintermediation
3 Evolutionary Views of Information Technology**
1. connection view 1970-95 (IT as a tool) 2. immersion view (1991-2015) IT as environment 3. fusion view (2015-?) IT as fabric
6 Strategic Business objectives of IT**
1. operational excellence 2. new products, services, and business models 3. customer and supplier intimacy 4. improved decision making 5. competitive advantage 6. survival
2 of Internet's Business Impacts *
1. reach and connect -3 bill internet users, 1 bill websites, 100bill emails sent daily (70% spam) 2. socialize and influence -1.5bill FB users, 500mill tweets per day..
2 approaches to IS **
1. technical 2. behavioral
HTML tags *
<b> and </b>: show text between them in bold <u> and </u>: show text between underlined <p>: start a new paragraph <h2> and </h2>: header level 2 (h1 for level 1 and so on) <a href=URL> and </a>: create a hyperlink to URL <center> and </center>: center-align everything in between these two tags <img src=URL>: embed the image located at URL <body background=URL> and </body>: the main body of the webpage, with a background image at URL <nav> and </nav>: the beginning and end of the navigation section <ul> and </ul>: an unnumbered list, where each list item is defined by <li> and </li> Creating an unnumbered list inside the navigation section will make the navigation bar Creating an unnumbered list inside a list item (i.e. between <li> and </li>) will make a second-level submenu
LAB: Which symbol must all formula begin with? A) = B) + C) ( D) @
A
Dante
A Uniform Access computer for UW students
GROUPON: Each party is giving the other two something in exchange for something else in return. Can you describe what they give and receive?**
A receives commission and payments from B, gives B access to an established customer base. C gives personal information and payment to A, and receives deals, coupons, and information about a nearby business in return. C gives payments and pays visits to B, and receives products and services in return.
Variation of ROI on IT *** !!
All across the board - more IT doesn't always mean more productivity
LAB: How do you change column width to fit the contents? A) Single-click the boundary to the left to the column heading B) Double click the boundary to the right of the column heading C) Press Alt and single click anywhere in the column D) All of above
B
LAB: Which of the following is an absolute cell reference? A) !A!1 B) $A$1 C) #a#1 D) A1
B
LAB: For a two-variable data table, if the input values are in cell C3:C5, and D2:E2 the target formula should be in cell: A) D2 B) C3 C) D1 D) C2
D
LAB: Formula in cell E1 is =(B$1+C1)*A1/D$1. If we copy E1 and paste it to E6, the formula in E6 will become: A) (B6+C6)*A6/D6 B) (B1+C6)*A6/D1 C) (B$6+C6)*A6/D$6 D) (B$1+C6)*A6/D$1 E) (B$1+C1)*A1/D$1
D
LAB: The cell reference for a range of cells that starts in cell B1 and goes over to column G and down to row 10 is? A) B1-G10 B) B1.G10 C) B1;G10 D) B1:G10
D
GROUPON: If you are a small business owner, why would you pay Groupon for their services/products, instead of DIY?**
Compared to growing a customer base over time the "organic" way, buying it from Groupon has pros and cons. Pros: It's faster, cheaper, and easier. Small businesses will be able to focus on developing and expanding. Bigger customer base too. (Quantity) Cons: Customers obtained this way have low loyalty, and low profit margin. The businesses usually have low control on the specifics of the campaign. (Quality)
LAB: For a row data table, if you input values are in cell E3:G3, your target formula should be in cell:
D4
What if analysis: Data Tables
Data Tables are used to show how different values of up to 2 input variables affect the result of a formula
Big 3 enterprise applications (__RP), (__CM), (__RM)**
ERP - enterprise resource planning SCM - supply chain mgmt CRM- customer relationship mgmt
LAB: Goal Seek feature of Excel is useful in figuring out how to reach a certain objective value by manipulating one or more variables. (T/F)
F
LAB: For a column data table, if you input values are in cell E3:E5, your target formula should be in cell:
F2
What if analysis: goal seek
Goal Seek works differently from other What-If analyses. The user sets a target output value and specifies the changeable input variables. Goal Seek will show what values the input variables need to be to get exactly the target output. Goal Seek can be viewed as a reverse process of the What-If analysis.
Logging hours: which system?**
HR
4 Organization structures: top, middle, bottom **
top: strategic level systems (ESS) middle: management level (MIS & DSS) bottom: operational level (TPS)
What if analysis: scenario summary
Scenario Manager is another convenient way to do more than one what-if analyses at once. Unlike Data Table, Scenario Manager can have more than two input variables.
GROUPON: There are three parties involved in Groupon's business model. Can you name all three parties?**
The three parties are: A. Groupon, B. small businesses, and C. consumers
Zediva's Movie model challenge, and argument*
The website takes new movies only out on DVD (not online yet) and literally plays them on a TV somewhere while the website user can stream the video of the filming of the playing of the movie (lol) - confusing because the life cycle of movies is theater - DVD/rental - online - TV. So they are messing with the system.
Operational Excellence example**
UPS -ships package on large scale very efficiently
Win SCP
WinSCP (Windows Secure CoPy) is a free and open source SFTP, SCP, and client for Microsoft Windows. Main function: securing file transfer between a local and a remote computer
ZARA case discussion: purchasing behavior*** !!
ZARA: -visit more -buy more -more impulse buying GAP: -visit less -buy less -less impulsive
Enterprise Resource Planning System (ERP)**
a cross functional enterprise system driven be an integrated suite of software modules that supports the basic internal business processes of a company
Customer __ is more expensive than __*
acquisition retention
Supply chain mgmt system (SCM)**
an enterprise application that helps businesses manage relationship with suppliers
Customer Relationship Mgmt (CRM) system**
an enterprise application that helps firm manage relationship with customers
Survival example**
blockbuster v. online streaming
IT specialists**
business computer professionals
Systems for business intelligence v. transaction processing systems**
business intelligence: ESS, MIS, DSS transaction processing: TPS
The Leavitt Diamond (B-I-R-O)**
business processes information technology use requisite people skills organizational form (ALL CONNECTED)
Traditional view of business systems*
business processes only deal with specific categories (HR with HR, finance with finance, etc)
IT as fabric**
can't separate people from technology -ex: fitbit, apple watch
Evolution of eCommerce*
catalog shopping - the company store TV shopping - QVC, HSN
Example of ESS**
dashboard on car
DSS **
decision support systems -profitability analysis -relocation cost control -contract cost analysis
Business Global Dimension: "flattened world"*
doing business on a global scale -overcoming regional/country differences
Enterprise Application Architecture**
enterprise applications automate processes that span multiple business functions and organizational levels and may extend outside the organization -centralized database deals with all business facets (from HR to finance)
ESS **
executive support systems -5 year sales trend, forecasting, profit planning, etc
ZARA case discussion: fast fashion v regular fashion (GAP)*** !!
fast fashion: -trend followers -targets young, fashion minded, city dwellers -store location: busiest location in metropolitan area -customer taste changes constantly, hard to predict, hard to influence -less $ spent advertising -low durability -low forecast -large # of new items -low turnaround -low inventory regular fashion: -predict/influence trends -malls -conservative, not trendy -higher $ on ads -high durability -high reliance on forecast -low # new items -high turn around time -high inventory -low autonomy
We create a _____ to include everything of a website (and we upload everything inside to public _____)
folder
ZARA case discussion: profit margin*** !!
high revenue: -high quantity sold -short turnaround -more stores -fewer promo events low cost: -low ad cost -low inventory -low durability -economies of scale
Key enabler of global business*
information technology!
Ranking of most common to least common methods of customer interactions**
most: telephone direct mail email web least: social media
Pull based model**
making specialized products once they're demanded (pizza, personalized m&ms)
MIS **
management information systems -sales management/region analysis -inventory control and production scheduling -annual budgeting
Customer and supplier intimacy example**
mandarin oriental hotel group -customize room by sensing customer adjustments
Amazon KIVA robot system: which system? **
manufacturing and production
Package tracking system: which system?**
manufacturing/production
How to add Hyperlinks
o If you want to create a link to an existing webpage, locate the page from Web folder and click OK. o If you want to create a link to a downloadable file, locate the file in your Web folder and click OK. It's important that the file must be inside your Web folder. o If you want to create a link to a website, type in the address of that website. o If you want to create an email link, click the "Email Address" button on the left and fill in the "Email Address" and "Subject" of the email and click OK.
Challenges of global business*
organizational, economic, tech, political, social, cultural, etc.
JETBLUE: youtube marketing pros and cons **
pros: -cheaper, easy, faster, 24/7 availability -viral, WOM, better targeting -immediate feedback -accurate measurement of impact -more info about viewer -reference to other sources cons: -missing non tech savvy market -ad blocker -informality -lack of control/potential negative response
Push v pull SCM*
push =based on forecasts, pull= based on orders
Profits = ___ - ___*
revenue - costs (VC and FC)
3 facets of CRM*
sales marketing service
Example of MIS**
sales data, expense data, reports, etc -regional level managers: sorts info and presents in meaningful way - info summary , not recommendation
Example of TPS**
self checkout scanners
Inventory costs*
spatial/housing - perishability, hazardous material, size, value deprecation - trendy fashion, tech, faulty items, percy harvin jersey
Supply chain example**
suppliers - contract suppliers - (nike) - distributor - retailer - customer
IT as environment**
technology shapes environment we live in -ex: google bought "nest" thermostat company
Businesses shifting from ___ model to ___ model *
transaction service based
TPS **
transaction processing systems -order processing, material movement, payroll, employee record keeping
New products, services, models example**
uber
IT department**
the division of a company or university that deals with software technology
ZARA case discussion: to upgrade software or nah?*** !!
upgrade: -new functionality - check inventory at other stores -outdated system -innovation -corporate culture -now is better than later not upgrade: -if it ain't broke don't fix it -cost of project high -time and resources used -uncertainty and risk
Example of DSS**
used to compare factors and make informed decisions - best allocation of resources -ex; shipping orders - which are doable and profitable?
Improved decision making example**
verizons customer service -train reps better, improve IT system
Competitive advantage example**
walmart -low cost, efficient supply chain