MGMT Test 2 CH 10

Machine or sensor generated data

("Internet of Things") from sources such as Call Detail Records (CDR), weblogs, smart meters, manufacturing sensors, equipment log and trading system data

if then statements

A simple and effective way of analyzing cause effect relationships.

Measure Results

Bryan Neider, COO of Electronic Arts (EA), looks at the amount of money his company makes every year from digital versus retail products. Monitoring digital channel revenue shows him that revenue is up 47% in 2012 from 2011. This is an example of what part of the control cycle?

DMAIC

Define, Measure, Analyze, Improve, and Control

Enterprise Resource Planning (ERP)

Gives you (management) better...CONTROL through better information and measurement of results and processes

customer service

Market share is a common __________ performance measure.

Traditional Enterprise data; Machine- or sensor data

Structured Data consists of what two types of data?

interactive control system

Systems that promote communication between the strategists and those implementing the strategy, ensuring that performance is constantly monitored and that a business stays on course

Setting Performance Targets

The CEO of HSBC Holdings PLC, a London bank, told analysts that he wanted the bank's return on equity to grow 12% to 15% over the course of two years. This is an example of what part of the control cycle

Take corrective action

Toyota has six key performance indicators: energy usage, water usage, VOCs (volatile organic compounds) released from painting operations, waste reduction, degree of compliance with environmental regulations, and number of complaints from external (neighborhood) parties. Toyota developed goals for each of these performance indicators for the time period from 2001 to 2005. By 2004, all of the 2005 goals except for one had been met, and the company started identifying changes that would help them improve their future environmental actions. This is what part of the control cycle?

Emails, powerpoints, social data

What are three types of Unstructered data?

Structured Data; Unstructured Data

What are two Big Data components?

Social data

______from customer feedback streams, blogging sites and social media platforms. Type of unstructured data.

Balanced scorecard

a method created to help business translate strategy into action by identifying the most critical measures to drive business success and linking long term strategic goals with short term operational actions; it uses four perspectives (financial, customer, business process, and learning and growth)

Cause-effect relationships

a set of quantitative and qualitative measurements that are related and mutually reinforcing.

control

achieved when behavior and work procedures conform to standards and goals are acomplished

Customer profitability

although it is good to have happy and satisfied customers, they should also be profitable for a business. Newly acquired customers can seem unprofitable due to high acquisition costs, but measures of lifetime profitability can be used to decide whether to acquire a specific set of customers.

Customer Retention

an easy way to maintain or increase market share is to retain existing customers. many companies also track customers loyalty by measuring the percentage growth of business with existing customers.

financial perspective

choosing the financial measurements that are most important for reaching strategic goals. Do actions contribute to improving financial performance?

Business process perspective

focuses on measurements that will improve a company's ability to serve and deliver value propositions to its customers. Do internal activities and processes add value for customers and shareholders?

Traditional Enterprise Data

from customer information systems, ERP data, online transactions, financial data (general ledger, accounts payable, accounts receivable) and the like.

Learning and growth perspective

identifies the infrastructure and skills needed to carry out business process, interact with customers, and achieve long term financial growth; it also helps to identify gaps in capabilities or resources. When looking at the_____________ of the company's balanced scorecard, a manager noticed that sales personnel needed to receive training in content marketing. Are we learning , changing and improving?

six sigma

is a total quality management process that uses DMAIC (define, measure, analyze, improve, and control) to eliminate waste, reduce costs, and improve cycle time. Customers may not know how efficient the company is, so the process is designed more to improve company processes than exceed customer expectations. Note that Six Sigma works best in companies that have generally effective procedures, needing only minor changes. It is not a good course of action to take when a company needs to reenvision everything it does.

customer perspective

linking key customer-based metrics such as market share and retention to the financial performance of a firm. How well do we serve our customers?

Processing information

means transforming raw data into meaningful information that can be applied to business decision making. Evaluating sales data to determine the best and worst selling products, examining repair records to determine product reliability, and monitoring the cost of long-distance phone calls are all examples of processing raw data into meaningful information

Outcomes

measurements of the balanced scorecard that monitor past success

Drives

measurements of the balanced scorecard that predict future success

Control loss

occurs when behavior and work procedures do not conform to standards.o When this occurs, managers need to find out what, if anything, they could of done to prevent it; usually that means ♣ identifying deviations from standard performance, ♣ analyzing the causes of the deviations, and ♣ taking corrective action

value propositions

quantitative and qualitative aspects of products or services that customers value most

International Organization for Standardization (ISO)

the ________________________develops and publishes the standards involved in the ISO 9000 and ISO 14000 series. To become certified by this organization, a company must present documentation of the steps it plans to take to create and improve the quality of its products and services and show how the company is consistently working toward implementing what is outlined in the documentation. For the car dealership, this means it will need to show how it plans to continue to improve the quality of the service it provides. Notice that ISO is not interested in how one company compares to another company. Instead, its only concern is whether the company is improving the quality of its own products and services.

Activity-based costing (ABC)

the accounting system used to assess the specific cost components of producing a product or service.

behavior

the actions and decisions of individual employees

total cycle time

the amount of time required to develop and deliver products and services to the customer.

Harvest stage

the end of a business lifecycle, where a company attempts to extract as much money as possible from business activity.

controle cycle

the four stage process that provides the mechanisms and systems to monitor the transformation process, ensuring that outputs are produced to the desired quality, quantity, and specifications of an organization and its customers.

Market share

the percent of the target market who are customers of a firm. _________ of a target customers may DECREASE at the same time there is an increase in non target markets, showing that the company is not meeting strategic objectives.

Budgeting Process

the process for allocating financial resources and measuring expected quantitative and qualitative outcomes of a firm.

benchmarking

the process of collecting data from the industry's best players and using their numbers as a goal or guideline for evaluating company performance.

Data mining

the process of discovering patterns and relationships in large amounts of data; works by using complex algorithms such as neural networks, rule induction and decision trees. Two types: Supervised and unsupervised

measurement

the process of evaluating behaviors and outputs to see whether standards have been met or objectives have been obtained.

strategic control

the process of recalibrating or confirming a firms strategy in light of changes in the external environment

outputs

the products and/or services that an organization produces

Total Quality Management

the satisfaction of customer needs through a set of four reinforcing principles, customer focus, process focus, teamwork and participation, and continuous improvement

Sustain Stage

the stage in a business life cycle that where the company is investing and extracting money, trying to maximize its return on investment

Growth Stage

the stage of the beginning of the business cycle that is marked by high investment activity

Unsupervised Data Mining

the user simply tells the data mining software to uncover whatever patterns and relationships it can find in a data set

Account share

this is a share of the target customer's wallet. Consumers spend money on many different items spanning several industries to support their needs. some companies find it valuable to monitor the amount customers spend on their products relative to all other products.

Customer Satisfaction

this is on of the most important metrics, but also the most subjective and qualitative. Customers satisfaction is often measured with feedback surveys. Recent research has shown that customers perform repeat purchases only when they rate their experience as extremely satisfying.

New customer Acqusition

this metric is measured in two ways: the number of new customers and the total sales to new customers

Supervised Data mining

usually begins with the user telling the data mining software to look and test for specific patterns and relationships in a data set. Typically done through a series of "what if?" questions or statements