BADM 350 Quiz 1
flat file
excel file Insertions, updates, and deletions all cause problems
Why do firms take on ERP?
- Integrate financial info... - Integrate order info... - Standardize/speed up manufacturing... - Reduce inventory ... - Standardize HR information ...
value chain
views an organization as a series of processes, each of which adds value to the product or service for each customer
On-line Analytical Processing (OLAP)
• Cube of tables showing relationships among related variables • Operates on specially organized data/relational database data • Easily answers questions like "What products are selling well?" or "Where are the weakest-performing sales offices?" • Allows users to perceive data as a multidimensional data cube - Slice and dice - Drill down - Roll Up • Fast in response • Enables timely decision-making • Use data stored in datawarehouses to derive ratios and degrees of predetermined relationships
Information
• Data that have meaning within a context • Raw data or data that have been manipulated
Classification
• Facts in predefined groups • E.g.: Person (record) is income earning or not
Overall fit
• Off the rack • Off the rack and tailored to fit • Custom made
Forecasting
• Patterns to predictions • E.g., Predicting likelihood of event based on attributes
Raw Data
• Time-consuming to read • Difficult to understand
database advantages
- Reduced data redundancy - Application/data independence - Better control - Flexibility
Why does ERP fail?
- Resistance to Change - both from mgmt & work force - Customization/patchwork - Lack of Top mgmt support
Data mining
- Sequence or path analysis • Finding patterns where one event leads to another • E.g., repeated customer complaints & switching
traditional file advantages
- Simplicity - Efficiency - Customization
Hidden costs of ERP
- Training - Integration&Testing - Customization - Data conversion & analysis - Human Talent & Expertise
Data
A "given" or fact: a number, a statement, or a picture • The raw materials in the production of information
ER Model
A detailed, logical representation of the data for an organization or business area • Expressed in terms of Entities, Relationships and Attributes
One sided market
A market that derives most of its value from a single class of users
Solid implementation plans
A plan is needed to monitor the quality, objectives, and timelines
Multi homing costs
A. Maintaining two residences B. Subscribing to multiple networks C. Switching from one network to another D. Creating network effects
Strategic position
Broad/focused cost leadership Broad/focused differentiation
composite identifier
An identifier that consists of a composite attribute consists of multiple attributes
Transaction Processing Systems (TPS)
Analysts ERP
same side exchange
Benefits derived by interaction among members of a single class of participant
DSS
Contain models, or formulas, that manipulate data into information • Cost benefit analysis, Decision Process selection, Breakeven analysis
EIS
Can gather information from vast amounts of data for high-level executives - Highly useful in control and planning output: projections
technological leap-frogging
Competing by offering a new technology that is so superior to existing offerings that the value overcomes the total resistance that older technologies might enjoy via exchange, switching cost, and complementary benefits
exchange
Exchange creates value and every product or service subject to network effects fosters some kind of exchange
Clustering
Finding groups of facts (such that there is high similarity among data in a group)
group decision support systems
Generate ideas, establish priorities, and reach decisions in group environment - E.g. Sharepoint - Link
First Step in Analyzing Strategic Impact of IT
Industry analysis
One sided network
Market that derives value from 1 kind of users
two-sided market
Markets comprised of two distinct categories of participants, both of which that are needed to deliver value
The Weather Channel Case
Post-hoc discussion- Revisiting Platforms, Data as a platform Multi-homing costs for consumers and content providers
Complementary Benefits
Products or services that add additional value to the network
TPS
Record data and perform basic processing • Cash registers and ATMs INPUT: transaction,events Processing: sorting, listing, merging, updating OUTPUT: detailed reports, lists, summaries
Proper Business Analysis
Successful companies spend up to 10 percent of the project budget on a business analysis
Data Warehousing
Techniques to store very large amounts of historical data in databases, especially for business intelligence • The storage of virtually all transactional data, master data (customer, material), and metadata at a very detailed level
staying power
The long-term viability of a product or service • Networks with greater numbers of users suggest a stronger staying power
Degree of a relationsihp
The number of entity types that participates in a relationship - Unary: (degree 1) also called "Bill of Materials" or "Recursive" - Binary: (degree 2) Most common - Ternary: (degree 3)
Cardinality
The number of instances of an entity with another entity
Two sided network
Two distinct user groups whose respective members consistently play the same role in transactions - Subsidies for early adopters - Permanent subsidization - Exclusivity - Marquee users
cross side exchange
When an increase in the number of users on one side of the market creates a rise in the other side
Network effects
When the value of a product or service increases as its number of users expands - Also known as network externalities or Metcalfe's LawWhen network effects are present: - The value of a product or service increases as the number of users grows - They're among the most important reasons you'll pick one product or service over another
Extraction, transformation, and loading (ETL)
a process that extracts information from internal and external databases, transforms the information using a common set of enterprise definitions, and loads the information into a data warehouse
database
a single table or collection of related tables
Business process
a standardized set of activities that accomplish a specific task, such as processing a customer's order
Netflix case
advertising builds awareness, but brands are built through customer experience huge selection, ability to find what you want, timely arrival, ease of use and convenience, fair price
Identifier (Primary key)
an attribute (or combination of attributes) that uniquely identifies each instance of an entity type. Ex: Student ID (or Student name & address) VIN Number Home Team & Visiting Team
Executive Information systems(EIS)
executives ERP
what-if analysis
checks the impact of a change in an assumption on the proposed solution
Data mart
contains a subset of datawarehouse information
the long tail
cost of production and distribution drop (studios get fraction of subscription revenue, studios give netflix discounts) selection cannot be matched by traditional stores geographic constraints disappear
database management systems
database software for creating, maintaining, and manipulating data
Porter's Five Forces
determines industry attractiveness
imitation-resistant value chain
developed a way of doing business that others will struggle to replicate
Extended ERP Component
extra components that meet the organizational needs not covered by the core components and primarily focus on external operations
Goal seeking analysis
finds the inputs necessary to achieve a goal such as a desired level of output
Support value activities
firm infrastructure human resource management technology development procurement
ERP
high efficiency, low Support for Innovation Experimentation Flexibility
Supplier Power
high when buyers have few choices low when there are many
Buyer Power
high when buyers have many choices to choose from low when they have few Reducing Buyer Power: Differentiation Network Effects Switching costs Explicit - termination fee Implicit - loyalty program
Rivalry among existing competitors
high when competition is fierce low when complacent
Threat of New Entrants
high when it is easy for competitors to enter low when difficult Barriers: patents, scale/volume, brands, technology, timing, imitation resistant supplier relationships
Threat of Substitutes
high when there are many alternatives to a product or service (low when there are few)
Enterprise Resource Planning
integrates all departments and functions throughout an organization into a single IT system (or integrated set of IT systems) so that employees can make enterprisewide decisions by viewing enterprisewide information on all business operations
structured query language
language used to manipulate databases
Decision support systems (DSS)
managers ERP
Effectiveness IT Metric
measures the impact IT has on business processes and activities including customer satisfaction, conversion rates, and sell- through increases flexibility, usability, customer satisfaction, conversion rates, financial
Efficiency IT Metric
measures the performance of the IT system itself including throughput, speed, and availability labor reduction support tactical and operational decisions throughput, transaction speed, system availability, information accuracy, web traffic, response time
relational file
more detailed and easy to read
dicing
part dimension current week's sales for iron (specific part)
Management Information Systems (MIS)
provide reports and access to company data middle managers
Manipulated Data
provides useful info
primary value activities
receive and store raw materials make the product or service deliver the product or service market and sell the product or service service after the sale
Bombardier Case
senior managers making business successful choice of two extremes incompatible and inconsistent systems difficult to acquire companies post ERP did much better in phase two and learned from mistakes
Networks
system of interconnected nodes (people, companies, places, or things)
slicing
time dimension sales data for the week
Core ERP Component
traditional components included in most ERP systems and they primarily focus on internal operations
Competitive Advantage
valuable rare imperfectly imitable non substitutable
derived attribute
values can be related from related attribute values