MIS 301 Final

Moore's Law - why is it important?

"The number of transistors per square inch on an integrated chip doubles every 18 months" Because of Moore's Law, the cost of data processing, communications, and storage is essentially zero. Allows for companies such as Twitter, Hulu, and Pandora to be possible

Challenges implementing enterprise systems—know one or two and how to respond to the challenge

- Transition problems oChange from isolated departmental systems to new enterprise system, while doing business oSenior management must explain need for change to employees and stand behind new system as kinks worked out -Employee resistance oPeople resist change bc change requires effort and engenders fear oSenior level management must communicate need for change throughout transition process oEmployees fear change bc is threatens their self-efficacies Persons belief that he or she can be successful at his or her job

Data warehouse—what is it? Where does the data come from? How does the data warehouse help business users?

-A facility for managing an organization's BI data -Data comes from purchasing it from outside sources. Also can Extract data from operational, internal and external databases -Helps business users by providing Better decision-making Quick and easy access to data Data quality and consistency

Key components of a business process

-Activity: specific tasks to be accomplished in a process -Decision: Question to be answered Yes or No -Role: Sets of procedures -Actor: Person, group, department, organization, or information system -Resource: People, or facilities, or computer programs assigned to roles -Repository: Collection of business records

What is the role of automation and transformation?

-Automation connects computer side (hardware and software) to human side (procedures and people) -Bridging the two through data

Role of strategy in the business organization; how does strategy translate into action?

-Strategy determines value chains, which determine business processes -Business processes determine requirements and functions of information systems

What are the 5 components of an information system?

1. Hardware 2. Software 3. Data 4. Procedures 5. People

Five phases of the SDLC—know major activities

1. System definition - definition is management's statement of the system needs in order to begin to define the new system 2. Requirements analysis 3. Component design 4. Implementation 5. Maintenance

Data mart—how does it differ from a data warehouse? What are the advantages?

A data collection, smaller than the data warehouse, that addresses the needs of a particular department or area of a business Data warehouse = supply chain Data mart = a retail store in a supply chain Advantages Specific to User Needs Easier Access to Information Data Segregation

Cloud Computing—advantages and challenges

Advantages: -Easy and fast to scale up to obtain more servers -You know cost structure -As long as you're dealing with a large, reputable organization - you'll receive the best security and disaster recovery -No worry that technology will go obsolete - the cloud vendor assumes risk Challenges: -Loss of control - you're dependent on the vendor for management, price, policy -You don't know where your data is located -You don't know how many copies of your data exist -No visibility into the security and disaster preparedness in place

Information silos—what are they? Why do they occur? How does a company avoid them?

An information silo is the condition that exists when data are isolated in separated information systems. Silos occur because entities at one organizational level create information systems that meet only their particular needs. A company avoids slios by: -Integrate data into single database. -Revise applications. -Allow isolation, but manage to avoid problems.

Data mining—what does it accomplish? What is the business value?

Application of statistical techniques to find patterns and relationships among data for classification and prediction Businesses can use the data by classifying it and use it to predict scenarios and make smart business decisions.

What are the limitations of automation?

At some point, automation begins to suffer from diminishing returns. At one point, have automated as much as possible vs how much it costs. Point of which automation doesn't yield as much of a return of investment required

The role of automation in information systems

Automation moves work from the human side to the computer side. The goal is to eliminate human error

Porter Model—Know competitive forces and impact on an organization

Competitive Forces • Competition from vendors who manufacture substitutes • Competition from new competitors • Competition from existing rivals Impact on organization Helps organizations determine the potential profitability of an industry

Feasibility studies—know one type of feasibility study and its importance

Cost feasibility - approximates total costs and compares it to system value depends on the scope of project Schedule feasibility - whether an IS be able to be developed on the timetable needed difficult to determine because hard to estimate time it will take to build a system

Data vs Information vs Knowledge

Data - Recorded facts or figures Information - data presented in a meaningful context Knowledge - the possession of information, or the ability to quickly locate it

Why do organizations need to consider business processes?

Enables them to accomplish their strategies with effectiveness and efficiency. - Improving process quality oDimensions of process quality Effectiveness enables organization to accomplish strategy Efficiency ratio of benefits to costs oTwo repositories may create process inefficiencies oSingle repository less costly, generate fewer errors, and as effective

"Dirty data"—what are some characteristics of dirty data? What are the risks?

Examples: -A value of B for customer gender and 213 for customer age -Value of 999-999-9999 for a U.S phone number Risks- Lost revenue Wasted resources Decreased productivity Damage to credibility Risk of failure for marketing automation initiatives Fines due to compliance issues

What is one challenge faced in implementing knowledge management systems?

Getting people to codify knowledge - people while they know things may not know how to explain it to other people

Role of social media in digital marketing—practical advantages and disadvantages

Gives customer much more power and control in the customer/vendor relationship; can lead to businesses losing control of peer-to-peer content Many organizations struggle to transition to wide-open, adaptive, dynamic social CRM processes.

Aligning IT strategies with organizational strategies—importance and general process

Good strategic alignment has an amazing effect on organizational performance. People perform better when they fully understand and accept the purpose and goals of their organization, and they develop a better sense of ownership when they understand what difference they make in achieving those goals. The impact of strategic (mis)alignment is demonstrated by the striking difference in performance between some of the largest corporations in the world. The market in which they compete is the same, their chances are the same, and still some thrive and others don't.

How are the computer and human side related?

Humans are not only users of the system, but also those who operate and service the computers, maintain data, and support networks.

Information systems vs information technology

Information technology drives development of new information systems b. IT components = Hardware + Software + Data c. IS = IT + Procedures +People i. Avoid a common mistake: 1. Cannot buy an IS 2. Can buy, rent, lease hardware, software and databases, and predesigned procedure

Business process reengineering—what is it? Why do companies use reengineering?

Is the activity of altering existing and designing new business processes to take advantage of new information systems Companies use reengineering because that integrated data and enterprise systems offered the potential for substantial operational efficiencies. It became possible to do things that had been impossible before.

Dimensions of knowledge—know one or two (e.g., leverage, fragmentation, etc.)

Leverage- Knowledge is not subject to diminishing returns. When it is used, it is not consumed. Its consumers can add to it, thus increasing its value. Fragmentation- As knowledge grows, it branches and fragments. Knowledge is dynamic; it is information in action. Thus, an organization must continually refresh its knowledge base to maintain it as a source of competitive advantage.

Types of information systems—personal vs. workgroup vs. enterprise vs. inter-enterprise

Personal - information systems used by a single individual. Such as contact manager in you iPhone Workgroup-information systems that facilitates the activities of a group of people. Such as doctors using an IS to manage patient appointments Enterprise- information systems that span an organization and support activities of people in multiple departments. Such as doctors using an IS to track patients, treatments, meds, diets, room assignments, etc. Inter-enterprise - information systems that are shared by two or more independent organizations. Such as an IS that is shared by patients, healthcare providers, insurance companies

Process vs. practice approach—when is each appropriate?

Process - -organizations attempt to manage knowledge in formal ways, policies, how it is stored -example- Apple using database to solve problem with iPhone Practice- -treat knowledge as intangible, try to get people together to share knowledge- works when knowledge is general. -Example-med students in residency following other docs.

IS as a competitive enabler—product vs. systems—how can IS affect each?

Product -By creating new products or services -By enhancing existing products or services -By differentiating their products and services from their competitors Systems -Differentiate a package delivery system that competitors do not have, for example -This new system that others don't have can be considered a new product

Reporting systems—common types and roles of various types of reports

Reporting analysis - process of sorting, grouping, summing, filtering, and formatting structured data Exception reports - produced when something out of predefined bounds occurs Static reports - BI documents that are fixed at the time of creation and do not change Dynamic reports - BI documents that are updated at the time they are requested

SMIS Roles—know key roles and what each role is responsible for

Social Media Information Systems (SMIS) - supports sharing of content among networks of users Key roles: Social media providers - attracting and targeting certain demographic groups Ex. facebook, Google+, LinkedIn, Twitter, Instagram, Pinterest Users - both individuals and organizations Communities - mutual interests and transcend familial, geographic, and organizational boundaries

Socialization vs. combination

Socialization mode -refers to the conversion of tacit knowledge to new tacit knowledge through social interactions and shared experience. Combination mode -refers to the creation of new explicit knowledge by merging, categorizing, reclassifying, and synthesizing existing explicit knowledge

Internet of Things—concept and application

The idea that objects are becoming connected to the Internet so that they can interact with other devices, applications, or services. Example- A phone started as a simple device that just handled voice calls, but over time became a smart device by adding processing power, more memory, internet access, WIFI, and ability to connect with other devices and apps

Inherent processes—what are they? How do they help companies?

They are predesigned procedures for using the software products, saved organizations from expensive and time-consuming business process reengineering. Companies could instead buy these prebuilt procedures from vendors.

Responses to Porter forces—what types of strategies might an organization use? How does IS help with implementing these strategies? Know an example

To be effective, organization goals, objectives, culture, and activities must be consistent with the organization's strategy. This means, all information systems in organization must facilitate the organization's competitive strategy. Each of the three competitive forces concerns the danger of customers taking their business elsewhere. The 4 competitive strategies: an organization can be the cost leader and provide products at the lowest price across the industry, or within an industry segment Also, a company can offer better product/service across the industry, or within an industry segment Example- car rental company can provide the lowest-car rentals across the industry, or within a "focused" industry segment such as U.S domestic business travelers

Characteristics of good information (know 2 or 3)

a. Accurate b. Timely c. Relevant i. To context ii. To subject d. Just barely sufficient e. Worth its cost

Advantages and disadvantages of having a lot of data; what are the potential costs and benefits?

advantages: -more opportunity for analysis -more data you have, more ability to be confident in conclusions you draw Disadvantages: -if origin of data is suspect, you could have bad data -Smaller data gathering results in more accurate data (quality over quantity) -Data storage costs

User-generated content—what is it? Know one or two risks associated with it.

content on an organization's social media presence that is contributed by nonemployee users -Junk contributions -Inappropriate content -Unfavorable reviews -Mutinous movements

Explicit vs. tacit knowledge—what is the difference? How do you convert from explicit to tacit and vice versa? What are the challenges in these conversions?

explicit knowledge: -deals with objective, rational, and technical knowledge -has been codified (documented) in a form that can be distributed to others or transformed into a process or strategy without requiring interpersonal interaction. -examples: Data, goals, procedures tacit knowledge: -usually in the domain of subjective, cognitive, and experiential learning; it is highly personal and difficult to formalize. It is also referred to as embedded knowledge since it is usually either localized within the brain of an individual or embedded in the group interactions within a department or business unit. -examples: mental maps, trade secrets, insights The goal of knowledge management is for an organization to be aware of individual and collective knowledge so that it may make the most effective use of the knowledge it has. Firms recognize the need to integrate both explicit and tacit knowledge into a formal information systems - Knowledge Management System (KMS) Converting tacit knowledge into explicit knowledge is a real trick - a real leap of faith. It takes someone with vision to see the line that fits between all of the dots of observations and experience. It's a bit of magic not unlike the process of converting requirements into design or a caterpillar converting to a butterfly.

How do information systems impact business processes?

information systems aid businesses in developing a larger number of value added-systems in the company Adoption of information systems simplifies business processes and removes unnecessary activities. Information systems add controls to employee processes, ensuring that only users with the applicable rights can perform certain tasks

Value chain—what is it? Distinction between primary and support activities; Role of linkages within the value chain.

is a network of value-creating activities. Consists of 5 primary activities and 4 support activities Primary activities are business functions that relate directly to the production of the organization's products or services Support activities are business functions that assets and facilitate the primary activities Role of linkages- interactions across value activities

Knowledge management systems—how can these provide a competitive advantage?

knowledge management is the process of creating value from intellectual capital and sharing that knowledge with employees, managers, and others that need it. -It improves process quality -It increases team strength

What is the role of information systems?

operational role, data analysis/reporting (sales trends etc., management), strategic decision making (to guide the enterprise)

Expert systems—how can businesses use leverage expert systems?

rule-based systems that encode human knowledge in the form of If/Then rules Expert system can be successful if addressed more restricted tasks such as checking for harmful prescription drug interactions or configuring products to meet customer specifications

Gamification—What is it? Benefits. Potential drawbacks.

the application of game mechanics to non-game environments to motivate people and change behavior Benefits - accelerated feedback cycles, clear goals and rules, compelling narratives, and challenging but achievable tasks, and status recognition Potential drawbacks. - new trend, lack of experience, not easy, no "one size fits all," must be aligned with the goals and culture of the company, worry of the "players" gaming the system.

What is information systems development? What are one or two major challenges in information systems development?

the process of creating and maintaining IS Challenges: -The difficulty of requirements determination -Scheduling and budgeting difficulties

Crowdsourcing—what is it? Know an example

the dynamic social media process of employing users to participate in product design or redesign Ex. eBay often solicits its customers to provide feedback on their eBay experience

Extract, Transform, and Load (ETL) process—what is it? why is this important?

the extract function reads data from a specified source database and extracts a desired subset of data. Next, the transform function works with the acquired data - using rules or lookup tables, or creating combinations with other data - to convert it to the desired state. Finally, the load function is used to write the resulting data (either all of the subset or just the changes) to a target database, which may or may not previously exist.

Systems conversion—advantages and disadvantages of pilot, phased, parallel, and plunge implementation approaches

the process of converting business activity from the old system to the new system Pilot:implementation of the entire system on a limited portion of the business -Advantages- if the system fails, the failure is contained within a limited boundary -Disadvantage- may take a long time to run the pilot which leads to higher costs and time taken up by staff to evaluate the system. Phased: system is installed across phases across the organization -Advantage- System installed in phases or modules. Each piece installed and tested -Disadvantage- Takes longer to be fully converted A state of continuous change can sometimes be disruptive Parallel: new system runs parallel with the old one until the new system is tested and fully operational -Advantage: Least risky Users learn the new system while working on the old -Disadvantage: Slowest and most expensive type of installation Plunge: organization shuts off the old system and starts the new system -Advantage: Quickest way to switch over to new system -Disadvantage: High risk if new system fails

What is business intelligence? Why is business intelligence a critical focus area for businesses?

the process of using operational and other data to create information that exposes patterns, relationships, and trends of importance to the organization -Allows businesses to project manage, problem solve, decide, and inform -Identify changes in purchasing patterns -BI for entertainment - what they actually want, not what they say they want -Predictive policing