ITM 209 Chapter 1

Business Process

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

Inbound Logistics

Acquires raw materials and resources, and distributes

Under the IT Competitive Strategy, what can IT help with?

Build customer-focused business, re-engineer business processes, businesses become agile companies, create virtual companies, and build knowledge-creating companies

Outbound Logisitics

Distributes goods and services to customers

SWOT Analysis

Evaluates an organization's strengths, weaknesses, opportunities, and threats to identify significant influences that work for or against business strategy

What are some of the potential business impacts of trends?

-The cost of healthcare is destined to skyrocket -The internet will allow small companies to compete with worldwide giants with little investment -Demand for scientists, engineers, and technicians will continue to grow -Tighter competition based on new technologies

Name a couple trends that will shape our world, future, and lives

-World's population will double in the next 40 years -People in developed countries are living longer -Growth in info industries is creating a knowledge-dependent global society -The global economy is becoming more integrated

BIG Data

A collection of large, complex data sets, including structured and unstructured data, which cannot be analyzed using traditional database methods and tools

Technology Development

Applies MIS to processes to add value

Machine-Generated Data

Created by a machine without human intervention

Information

Data converted into a meaningful and useful context

Human-Generated Data

Data that humans, in interaction with computers generate

What are the core drivers of the information age?

Data, information, business intelligence, and knowledge

What are the support values associated with Porter's Value Chain Analysis?

Firm infrastructure, human resource management, technology development, and procurement

What are the primary value activities associated with Porter's Value Chain Analysis?

Inbound logistics, operations, outbound logistics, marketing and sales, and service

Firm Infrastructure

Includes the company format or departmental structures, environment, and systems

IT Competitive Strategy

Information technologies can support many competitive strategies including broad cost leadership, broad differentiation, and focused strategies

Unstructured Data

Not defined and does not follow a specified format

Marketing and Sales

Promotes, prices, and sells products to customers

Human Resource Management

Provides employee training, hiring, and compensation

Procurement

Purchases inputs such as raw materials, resources, equipment, and supplies

Data

Raw facts that describe the characteristics of an event or object

Structured Data

Stored in a traditional system such as a relational database or spreadsheet

What is Porter's Three Generic Strategies Model?

The theory that most organizations typically follow one of a couple generic strategies when entering a new market: -Broad market and low cost -Broad market and high cost -Narrow market and low cost -Narrow market and high cost

What are Porter's Five Forces?

Threat of substitute products or services, buyer power, supplier power, threat of new entrants, and rivalry among existing competitors

Operations

Transforms raw materials or inputs into goods and services

Value-Chain Analysis

Views an organization as a series of processes, each of which adds value to the product or service for each customer

What is Porter's Five Forces Model?

analyzes the competitive forces within the environment in which a company operates to assess the potential for profitability in an industry. "Attractiveness of a Market"

Service

provides customer support after the sale of goods and services