MIs chapter 1 Terms

The core drivers of the information age:

-Data -Information -Business intelligence -Knowledge

Location (no matter where you are) Form (audio, text, animation, etc) Validity (credibility)

-Lack of any of the above can create GIGO (garbage-in, garbage out) in decision making process -Includes no information!

Competitive intelligence tools:

-Porter's five forces model -porter's three generic strategies -Porter's value chain analysis

Characteristics of a system

-Systems have a purpose that defines it as a discrete discrete entity that holds it together, as a system (purpose of an automobile= take you from one place to the other) -All parts must be present for a system to carry out its purpose optimally (Automobile without its spark plugs=Car doesn't work)

Timeliness:

-You can get it when you need it -Describes the right time period

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

Threat of New Entrants: Entry barrier:

A feature of a product or service that customers have come to expect and entering competitors must offer the same for survival

Competitive Advantage:

A product or service that an organization's customers place a greater value on than similar offerings from a competitor

System 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

Identifying Competitive Advantages

Business Strategy: A leadership plan that achieves a specific goal or objectives such as: Developing new products or services Entering new markets Increasing customer loyalty Attracting new customers Increasing sales

Information

Data converted into a meaningful and useful content

Finance:

Deals with strategic financial issues including money, banking, credit, investment, and assets

Rivalry Among Existing Competitors: One of Porter's 5

High when competition is fierce in a market and low when competitors are more complacent

Threat of New Entrants: One of Porter's 5

High when it is easy for new competitors to enter a market and low when there are significant entry barriers

Threat of Substitute Products or Services: One of Porter's 5

High when there are many alternatives to a product or service and low when there are few alternatives

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

Human resources:

Maintains policies, plans, and procedures for the effective management of employees

Operations management:

Manages the process of converting or transforming of resources into goods or services

Buying Power: Switching cost:

Manipulating costs that make customers reluctant to switch to another product

Product Differentiation:

Occurs when a company develops unique differences in its products or services with the intent to influence demand

Sales:

Performs the function of selling goods and services

Michael Porter

Professor at Harvard business Leading authority on company strategy and the competitiveness

Data:

Raw facts that describe the characteristics of an event or object

Accounting:

Records, measures, and reports monetary transactions

Chief Knowledge Officer (CKO)

Responsible for collecting, maintaining, and distrubting the organization's knowledge

Chief Privacy Officer (CPO)

Responsible for ensuring the ethical and legal use of information

Chief security officer (CSO)

Responsible for ensuring the security of IT systems

Chief Technology Officer (CTO)

Responsible for ensuring the throughput, speed, accuracy, availability, and reliability of IT

Knowledge:

Skills, experience, and expertise coupled with information and intelligence that creates a person's intellectual resources

Marketing:

Supports sales by planning, pricing, and promoting goods or services

Buying power: One of Porter's 5

The ability of buyers to affect the price of an item

Fact:

The confirmation or validation of an event or object

Information Age:

The present time, during which infinite quantities of facts are widely available to anyone who can use a computer

Competitive intelligence:

The process of gathering information about the competitive environment to improve the company's ability to succeed

Supplier power: One of Porter's 5

The suppliers ability to influence the process they charge for supplies

Flows of Information

Upward: describe state of the organization based on transactions Downward: strategies, goals, and directives that originate at a higher level and are passed to lower levels Horizontal: between functional business units and work teams Outward/Inward: from and to customers, suppliers, distributors, and other partners

Value chain:

chain or series of business processes, each of which adds value to your organization's products or services

Supply Power: Supply chain:

consists of all parties involved in the procurement of a product or raw material

Systems Thinking:

is a way of seeing and talking about reality that helps us better understand and work with organization and communities to influx the quality of our lives.

A system:

is any group of interacting, interrelated, or interdependent parts that form a complex and unified whole that has a specific purpose

Feedback:

is information that returns to its original transmitter (input, transform, or output) and modifies the transmitter's actions

People resource Information:

literate knowledge worker Can define information needs Know how and where to obtain information Understand information Acts appropriate

People resource Technology:

literate knowledge worker- knows how and when to apply technology

First-mover advantage:

occurs when an organization can significantly impact its market share by being first to market with a competitive advantage

Chief Information Officer (CIO)

oversees all uses of IT and ensures the strategic alignment of IT with business goals and objectives

People resource Ethics:

principles and standards that guide our behavior toward other people

Buying Power: Loyalty program:

rewards customers based on the amount of business they do with a particular organization

Business process:

standardized set of activities that accomplishes a specific task

Support value process:

supports the primary value processes

Value-chain analysis:

systematic approach to assessing and improving the value of business processes

Primary value process:

takes in raw materials and makes, delivers, markets and sells, and services your products and services