SIT Chapter 1

Porter's 5 Forces

*Rivalry among competitors *Threat of new entrants *Threat of substitute products *buyer power *supplier power

CIO

Chief Information Officer; oversees all uses of IT and ensures strategic alignment of IT with business goals & objectives **all these CIO, CFO, CKO, etc. positions are all within the MIS department***

CKO

Chief Knowledge Officer; Responsible for collecting, maintaining, and distributing the organization's knowledge

CPO

Chief Privacy Officer; Responsible for ensuring the ethical and legal use of information

CSO

Chief Security Officer; ensures the security of IT systems

CTO

Chief Technology Officer; responsible for ensuring the speed, accuracy, availability, and reliability of IT

Recommends products based upon: purchase history, likes in social media, where you spend time in store?

OLAP

OLAP= ONTP=

OLAP= HANA ONTP= SAP

the two types of MIS are..

OLTP (online transaction processing) OLAP(online analytical processing)

first-mover advantage

Occurs when an organization can significantly impact its market share by being first to market with a competitive advantage (Microsoft, United Airlines, Netflix)

Rivalry among existing competitors

One of Porter's five forces; high when competition is fierce (like in retail grocery) in a market and low when competitors are more complacent. product differentiation-Occurs when a company develops unique differences in its products or services with the intent to influence demand

A ________ is a collection of parts that link to achieve a common purpose. A car is a good example of a _________, since removing a part, such as the steering wheel or accelerator, causes the entire system to stop working.

system

"For example, a car's system continuously monitors the fuel level and turns on a warning light if the gas level is too low" this is an example of what?

systems thinking

MIS is NOT

technology; MIS is a business function

descriptive analytics

the use of data to understand past and current business performance and make informed decisions

True or false: **Most organizations have a department that is responsible for performing the MIS function**

true! like an accounting department

If Porters Five Forces are strong does that make the industry attractive or unattractive?

unattractive (means its a bad industry)

Prescriptive Analytics

uses optimization to identify the best alternatives to minimize or maximize some objective helps identify what the best course of action is or how to optimize/maximize some objective

Value Chain Analysis (VCA)

views a firm as a series of business processes that each add value to the product or service

___________ is low cost and broad market __________ is low cost and narrow market ___________ is high cost and broad market ____________ is high cost and narrow market

walmart payless shoes neiman marcus tiffany & co

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

feedback

knowledge

Skills, experience, and expertise coupled with business information and intelligence resources (adds in the human element!)

competitive advantage

- a product or service that an organization's customers place a greater value on than similar offerings from a competitor (goo or service offering greater value than competitors similar goods/services) -It is important to understand that competitive advantages are typically temporary since competitors are quick to copy competitive advantages -iTunes 4-->iPod 9--->iPhone--->iPad--->Apple Watch

3 generic strategies by Michael Porter, that help to choose a business focus include...?

1. low cost 2. differentiation 3.focus/niche ex: Ikea & restoration hardware

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 ((a business function that moves info around companies to help DM and problem solving)) pretty new, has only been around for ~4 years

entry barrier

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

Porter's Five Forces Model

A model for analyzing the competitive forces within the environment in which a company operates, to assess the potential for profitability in an industry. -how easy/profitable is it to enter into a new industry?

each business should have their "thing". list each companies' "thing": Amazon Netflix Zappos Facebook Tesla

Amazon= primary mission was selling books Netflix= primary focus is renting videos Zappos = primary focus is selling shoes & wowing customers Facebook= getting people to connect Tesla= electric car company; house batteries?

Business intelligence is also called....

Analytics

the world wide web went live to the public on............

August 6th of 1991

what is the formula for making a decision???

BI + Personal experience = Decision

A companies missions statement should combine what 2 things?

Business and technology -how can we make $, what technology can we use to do so/make it more efficient?

Head of IT

CIOs!.

OLTP (online transaction processing); what system does it match to?

Capturing and storing data from day-to-day business transactions. The main focus is on efficiency of routine tasks. SAP!

the 4 core drivers of the information age are....

DIBK! Data- raw, objective facts describing an event or object Information- data converted into a useful context Business Intelligence- info collected from multiple sources that analyzes patterns and trends Knowledge- combining business intelligence with skills and expertise, and intelligence resources

information- give examples too

Data converted into a meaningful and useful context -best selling product is X -worst selling product is Y -best customer is A -worst customer is B

FIRE

Financially Independent Retire Early. Profitability of selected US industries is higher for: security brokers and dealers, soft drinks, prepackaged software & pharmaceuticals lowest profitability for book publishing, engines, bakery products, wine and brandy

Threat of substitute products or services (give examples)

High when there are many alternatives to a product or service and low when there are few alternatives -examples include niche, differentiation or low-cost strategies

Business Intelligence (BI)

Information collected from multiple sources such as suppliers, customers, competitors, partners, and industries that analyzes patterns, trends, and relationships for strategic decision making -beer & poptarts -tesla & solar city -best selling product by month compared to sports season and team city wins/losses

What is one of the most important assets in an organization?

Information is one of the most important assets in an organization, and the primary way that people get information is through information technology

Wayne Huizenga

Made original fortune with Waste Management business in 1968; later purchased/started Blockbuster in 1987

OLAP (online analytical processing)- what system does it match to?

Manipulation of information to create business intelligence in support of strategic decision making. Recommends products based upon purchase history, likes in social media, where you spend time in a store, etc HANA

4 different types of competitive advantages include: and why would you use each?

SWOT analysis 5 forces model 3 generic strategies value chain analysis

Buyer Power (give examples)

The ability of buyers to affect the price of an item (switching cost- manipulating costs that make customers reluctant to switch to another product loyalty program- rewards customers based on the amount of business they do with a company; frequent flyer cards)

Information Age

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

Supplier Power (examples too)

The suppliers' ability to influence the prices they charge for supplies (supply chain-all parties involved in the acquisition of a product/raw material) ex: pharmaceuticals & rare drugs

Input-Process-Output Model

a model that provides links among team inputs, processes, and outputs, thereby enabling an understanding of how teams perform and how to maximize their performance -Production is the process where a business takes raw materials and processes them or converts them into a finished product for its goods or services. -if a business could produce the same hamburger with less expensive inputs or more hamburgers with the same inputs,it would see a rise in productivity and possibly an increase in profits.

Business Strategy (give examples of what is typically included)

a plan of action to fulfill/achieve business goals. where are we going and how? ex: developing new products, entering new markets, decreasing costs, attracting new customers, increasing sales,....

LIDAR

a remote sensing technology that measures distance by illuminating a target with a laser and analyzing the reflected light; this is used by many other companies, but NOT by Tesla lidar is not efficient, often breaks, and cant see people on bikes

Business Process

a standardized set of activities that accomplish a specific task, such as processing a customer's order

Search Engine Optimization (SEO)

a systematic process of ensuring that your firm comes up at or near the top of lists of typical search phrases related to your business

Systems Thinking (give an example)

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 -like a car! all different parts work together to ensure the car can drive, brake, steer, etc.

Internet of Things (IoT) & give some examples

a world where interconnected internet-enabled devices or "things" have the ability to collect and share data without human intervention -smart thermostat -smart garbage cans (monitor fill levels) -smart diapers -smart tennis racket

Departmental Companies

accounting, finance, human resources, marketing, operations management, sales. these are all departments that work independently as "functional silos". Yet, successful companies operate cross-functionally, integrating the operations of all departments.

Predictive Analytics

analysis of past performance in an effort to predict the future by examining historical data, detecting patterns or relationships in these data, and then extrapolating these relationships forward in time predicting future trends and patterns based on past data

a survey of what floridians buy most from walmart in preparation for hurricanes revealed they purchase...

beer & poptarts

"floridians buy beer & poptarts in prep for hurricanes" is an example of....

business intelligence (run analytics to find this out)

Reed Hastings

co-founder and CEO of Netflix. He got a late fee for a movie he checked out from blockbuster which inspired him to start a subscription based service with no due dates, no late fees, and with a "streaming" feature

companies operate in extremely ___________ environments and must continually redefine their business strategies to create ____________ _______________

competitive; competitive advantages

The MIS solution to departmental companies is what?

cross functional integration (SAP, Oracle). This allows common department to work inter-dependently and all share information to contribute to making informed business decisions.

"45 units sold today" is an example of....

data

3 types of analytics

descriptive, predictive, prescriptive

Threat of new entrants

entry barriers: High when it is easy for new competitors to enter a market and low when there are significant entry barriers ex: banks are expected to have ATMS & mobile banking features

SWOT analysis

identifying internal strengths (S) and weaknesses (W) and also examining external opportunities (O) and threats (T)

"the cayenne is the best selling porsche vehicle" is an example of...

information

Knowledge workers are professionals valued for their ability to...

interpret and analyze information

"listing products that are about to expire first on a menu or creating them as a daily special in order to move the product" is an example of...

knowledge

"top sales person has had a bad quarter, but the manager knows he is dealing with medical issues" is an example of....

knowledge

Southwest, JetBlue= ______________ Virgin atlantic= _______________________

low cost (SW & JB) differentiation (VA has mood lighting, aromatherapy, etc)

another term for the internet of things is...

machine to machine (M2M) M2M allows devices to connect directly to other devices

6 stakeholder interests

partners/suppliers shareholders government customers community employees

Tesla uses ________ and ___________ for its cars. They have also built their own _______________________

radar & cameras built their own AI chip! (cloud based genetic algorithms allow the entire Tesla fleet to determine optimal solutions) -Tesla will be profitable by the end of 2018 -Tesla has collected billions of miles of real-world driving data since 2012

Data & give examples

raw facts that describe the characteristics of an event or object -orders sold -products returned -stores opened this year -annual sales "Data in and of itself is not useful unless the right people know how to use and manage it efficiently and effectively"

Analyzing the Airline Industry

strong buyer power strong supplier power high threat of substitute products high threat of new entrants high rivalry among competitors =bad industry to enter into

Tesla analysis (Real-world data analytics) 100 year old auto business, 1st new in 50 years Elon Musk disrupted with 2012 electric Model S Trends: Robot-driven / Shared cars (Zip car) Waymo, Uber - lidar - driverless cars CSF: Design, connected cars, autonomous technology, electric powertrain (AI Chip) App based on-demand mobility service like Uber/Lyft - drivers, then autonomous? By 2019 >700,000 S, X, 3 cars in fleet

yup