MSIS 5623 Unit 1-3
Big Data
A collection of large, complex data sets, including structured and unstructured data, which cannot be analyzed using traditional database methods and tools
Internet of Things (IoT)
A world where interconnected Internet-enabled devices or "things" have the ability to collect and share data without human intervention
Data Mart
Contains a subset of data warehouse information
Extended ERP component
Extra components that meet the organizational needs not covered by the core components and primarily focus on external operations
High quality _______________ can significantly improve the chances of making a good decision
Information - Good decisions can directly impact an organization's bottom line
Unstructured Data
Not defined and does not follow a specified format
Distributed Computing
Processes and manages algorithms across many machines in a computing environment
Intelligent Agent
Special-purpose knowledge-based information system that accomplishes specific tasks on behalf of its users
Structured Data
Stored in a traditional system such as a relational database or spreadsheet
Machine vision
The ability of a computer to "see: by digitizing an image, processing the data it contains, and taking some kind of action
Buyer power
The ability of buyers to affect the price of an item
Fact
The confirmation or validation of an event or object
Fuzzy Logic
a mathematical method of handling imprecise or subjective information
Extended ERP components include:
•Business intelligence •Customer relationship management •Supply chain management
Three most common core ERP components
1. Accounting and finance 2. Production and materials management 3. Human resource
2 Information Types
1. transactional 2. analytical
Data Aggregation
Collection of data from various sources for the purpose of data processing
Expert System
Computerized advisory programs that imitate the reasoning processes of experts in solving difficult problems
Balanced scorecard
Enables organizations to clarify their vision and strategy and translate them into action
_____________________ DOES NOT HAVE ETHICS, _________ DO
Information People - Information does not care how it is used, it will not stop itself from sending spam, viruses, or highly-sensitive information
Customer Relationship Management (CRM) Metrics
Measure user satisfaction and interaction · Sales metrics · Service metrics · Marketing metrics
Information Redundancy
The duplication of data or storing the same information in multiple places - reduced by databases
Source document
The original transaction record
Data gap analysis
company examines its data to determine if it can meet business expectations, while identifying possible data gaps or where missing data might exist
SWOT Analysis
evaluates an organization's strengths, weaknesses, opportunities, and threats to identify significant influences that work for or against business strategies
Real-time information
immediate, up-to-date information
Forward Integration
takes information entered into a given system and sends it automatically to all downstream systems and processes
Backward Integration
takes information entered into a given system and sends it automatically to all upstream systems and processes
Business process reengineering (BPR)
the analysis and redesign of workflow within and between enterprises
Confidentiality
the assurance that messages and information are available only to those who are authorized to view them
Application Integration
the integration of a company's existing management information systems
Reasons ERP systems are powerful tools
• ERP is a logical solution to incompatible applications • ERP addresses global information sharing and reporting • ERP avoids the pain and expense of fixing legacy systems
Characteristics of High-Quality Information
•Accurate •Complete •Consistent •Unique •Timely
Most EISs offer the following capabilities
•Consolidation •Drill-down •Slice-and-dice •Pivot
A well-designed database should (4)
•Handle changes quickly and easily •Provide users with different views •Have only one physical view •Have multiple logical views
Potential business effects resulting from low quality information include
•Inability to accurately track customers •Difficulty identifying valuable customers •Inability to identify selling opportunities •Marketing to nonexistent customers •Difficulty tracking revenue •Inability to build strong customer relationships
The fastest growing extensions for supply chain management include
•Supply chain event management (SCEM) •Selling chain management •Collaborative engineering •Collaborative demand planning
Operational CRM
•Supports traditional transactional processing for day-to-day front-office operations or systems that deal directly with the customers
Types of Decision-Making MIS Systems
- Transaction processing system - Decision support systems - Executive information systems
4 Types of Integration
1. Application Integration 2. Data integration 3. Forwards Integration 4. Backward Integration
3 Types of Analytics
1. Descriptive 2. Predictive 3. Prescriptive
Data broker
A business that collects personal information about consumers and sells that information to other organizations
Hacker
Experts in technology who use their knowledge to break into computers and computer networks, either for profit or just motivated by the challenge
First-mover advantage
Occurs when an organization can significantly impact its market share by being first to market with a competitive advantage
Enterprise system
Provide enterprisewide support and data access for a firm's operations and business processes
Password
Provides authentication of the user
Artificial intelligence (AI)
Simulates human intelligence such as the ability to reason and learn
Analytical CRM
Supports back-office operations and strategic analysis and includes all systems that do not deal directly with the customers
Prescriptive Analytics
Techniques that create models indicating the best decision to make or course or action to take Ex: Airline using past purchasing data as inputs into a model that recommends the best pricing strategy across all flights allowing the company to maximize revenue
Descriptive Analytics
Techniques that describes past performance and history Ex: creating a report that includes charts and graphs that explains the data
Virtualization
The creation of a virtual (rather than actual) version of computing resources, such as an operating system, a server, a storage device, or network resources
Critical success factors (CSFs)
The crucial steps companies make to perform to achieve their goals and objectives and implement strategies
Attribute (field, column)
The data elements associated with an entity - The columns in each table contain the attributes
Key performance indicators (KPIs)
The quantifiable metrics a company uses to evaluate progress toward critical success factors
Data element
The smallest or basic unit of information
Data mining tools
Use a variety of techniques to find patterns and relationships in large volumes of information that predict future behavior and guide decision making
Ebusiness components include
•Elogistics •Eprocurement
MEASURING CRM SUCCESS
•Sales Metrics •Customer Service Metrics •Marketing Metrics
Website Metrics
- Abandoned registrations - Abandoned shopping cards - Click-through - Conversion rate - Cost-per-thousand - Page exposures - Total hits - Unique visitors
Supply Chain Management (SCM) Metrics
- Back order - Customer order promised cycle time - Customer order actual cycle time - Inventory replenishment cycle time - Inventory turns (inventory turnover)
Types of Hackers
- Black-hat hacker - Cracker - Cyberterrorist - Hactivist - Script kiddies or script bunnies - White-hat hacker
How a Company can add value by using Porter's Value Chain Analysis
- Business Process - Value Chain Analysis - Primary Value Activities - Support Value Activities - Porter's Value Chain
Organizations can undertake high-profile strategic initiatives including:
- Business process reengineering (BPR) - Supply chain management (SCM) - Customer relationship management (CRM) - Enterprise resource planning (ERP)
Evolution of CRM
- CRM reporting technology - CRM analysis technology - CRM predicting technologies
Models help managers to...
- Calculate risks - Understand uncertainty - Change variables - Manipulate time to make decisions
Critical success factor examples
- Create high-quality products - Retain competitive advantages - Reduce product costs - Increase customer satisfaction Hire and retain the best professionals
The core drivers of the information age
- Data - Information - Business intelligence - Knowledge
Aspects of Information Governance
- Data Governance - Master Data Management (MDM) - Data Validation
Security threats to ebusiness include
- Elevation of privilege - Hoaxes - Malicious code - Packet tampering - Sniffer - Spoofing - Splogs - Spyware
Key performance indicator examples
- Turnover rates of employees - Number of product returns - Number of new customers - Average customer spending
Big data
A collection of large, complex data sets, including structured and unstructured data, which cannot be analyzed using traditional database methods and tools and includes the following four common characteristics
Record
A collection of related data elements
Neural Network
Attempts to emulate the way the human brain works
Rivalry among existing competitors
High when competition is fierce in a market and low when competitors are more complacent
Firm Infrastructure
Includes the company format or departmental structures, environment, and systems
____________________ is one of the primary problems with redundant information
Inconsistency
THE PROBLEM: DATA RICH, INFORMATION POOR
Many organizations find themselves in the position of being data rich and information poor. Even in today's electronic world, managers struggle with the challenge of turning their business data into business intelligence
Machine-to-Machine (M2M)
Refers to devices that connect directly to other devices
Middleware
Several different types of software that sit between and provide connectivity for two or more software applications
Ethics
The principles and standards that guide our behavior toward other people
Privacy
The right to be left alone when you want to be, to have control over your own personal possessions, and not to be observed without your consent
___________________ is an aspect of information that depends on the situation
Timeliness
SUPPORTING DECISIONS WITH BUSINESS INTELLIGENCE
•Data warehouses extend the transformation of data into information •In the 1990's executives became less concerned with the day-to-day business operations and more concerned with overall business functions •The data warehouse provided the ability to support decision making without disrupting the day-to-day operations
Data visualization
•Describes technologies that allow users to "see" or visualize data to transform information into a business perspective
Data-driven website advantages
•Easy to manage content •Easy to store large amounts of data •Easy to eliminate human errors
Analytical information
•Encompasses all organizational information, and its primary purpose is to support the performing of managerial analysis tasks
THE BUSINESS BENEFITS OF HIGH-QUALITY INFORMATION
•Information is everywhere in an organization •Employees must be able to obtain and analyze the many different levels, formats, and granularities of organizational information to make decisions •Successfully collecting, compiling, sorting, and analyzing information can provide tremendous insight into how an organization is performing
Balanced scorecard views the organization from four perspectives
•Learning and growth •Internal business process •Customer •Financial
BI enables business users to receive data for analysis that is:
•Reliable •Consistent •Understandable •Easily manipulated
ERP systems contain multiple complex components that are not only expensive to purchase, but also expensive to implement and costs include...
•Software •Consulting fees •Process rework •Customization •Integration •Testing/Training
CRM COMMUNICATION CHANNELS
•Text message •Instant message •Voice mail •Voice call •Email letter •Web order •Phone order •Meeting •Customer service call •Twitter •Facebook
Database
•maintains information about various types of objects (inventory), events (transactions), people (employees), and places (warehouses) - Information is everywhere in an organization - Information is stored in databases
Integration Tools
- Enterprise System - Enterprise Application Integration (EAI) - Middleware - Enterprise Application Integration Middleware
Support value activities
- Firm Infrastructure - Human Resource Management - Technology Development - Procurement
Individuals form the only ethical component of MIS
- Individuals copy, use , and distribute software - Search organizational databases for sensitive and personal information - Individuals create and spread viruses - Individuals hack into computer systems to steal information - Employees destroy and steal information
Business issues related to information ethics
- Intellectual property - Copyright - Pirated software - Counterfeit software - Digital rights management
Customer relationship management (CRM)
- Involves managing all aspects of a customer's relationship with an organization to increase customer loyalty and retention and an organization's profitability - Many organizations, such as Charles Schwab and Kaiser Permanente, have obtained great success through the implementation of CRM systems CRM is not just technology, but a strategy, process, and business goal that an organization must embrace on an enterprise wide level
Databases offer several security features:
- Password - Access Level - Access Control
Supply chain management (SCM)
- The management of information flows between and among activities in a supply chain to maximize total supply chain effectiveness and profitability - Organizations must embrace technologies that can effectively manage supply chains
Efficiency MIS metrics focus on technology and include:
- Throughput - Transaction speed - System availability - Information accuracy - Web traffic - Response time
Effectiveness MIS metrics focus on an organization's goals, strategies, and objectives and include:
- Usability - Customer satisfaction - Conversion rates - Financial
Metrics for measuring and managing strategic initiatives include:
- Website Metrics - Supply Chain Management (SCM) Metrics - Customer Relationship Management (CRM) Metrics - Business Process Reengineering (ERP) Metrics - Enterprise Resource Planning (ERP) Metrics
Organizational Data Qualities
- difficult to access - contains structured data in database - contains unstructured data such as voice mail, phone calls, text messages, and video clips
Primary value activities
- inbound logistics - operations - outbound logistics - marketing and sales - service
____________ is an organizational asset and must be ______________
- information - protected
Enterprise resource planning (ERP)
- integrates all departments and functions throughout an organization into a single IT system so that employees can make decisions by viewing enterprise-wide information on all business operations - ERP systems collect data from across an organization and correlates the data generating an enterprisewide view
The _____ in a table contain entities, the _______ in each table contain the attributes
- rows - columns
A database must _______ to meet increased demand, while maintaining acceptable ______________ levels
- scale - performance
Supply chain management disruptive technologies
-3D printing (supports procurement) -Radio frequency identification (supports logistics) -Drones (supports logistics) -Robotics (supports materials management)
Three customer service operational CRM technologies
1. Contact center (call center) 2. Web-based self-service system 3. Call scripting system
The four primary sources of low quality information include
1. Customers intentionally enter inaccurate information to protect their privacy 2. Different entry standards and formats 3. Operators enter abbreviated or erroneous information by accident or to save time 4. Third party and external information contains inconsistencies, inaccuracies, and errors
3 Business Focus Areas of Big Data
1. Data mining 2. Data Analysis 3. Data Visualization
The three elements of data mining include:
1. Data: Foundation for data-directed decision making 2. Discovery: Process of identifying new patterns, trends, and insights 3. Deployment: Process of implementing discoveries to drive success
The two primary computing models that have shaped the collection of big data include:
1. Distributed Computing 2. Virtualization
Five most common categories of AI
1. Expert System 2. Neural Network 3. Genetic Algorithm 4. Intelligent Agent 5. Virtual Reality
4 Primary Traits of the Value of Information
1. Information Type 2. Information Timeliness 3. Information Quality 4. Information Governance
Three marketing operational CRM technologies
1. List generator 2. Campaign management system 3. Cross-selling and up-selling
Managerial Decision Making Challenges
1. Managers need to analyze large amounts of information 2. Managers must make decisions quickly 3. Managers must apply sophisticated analysis techniques, such as Porter's strategies or forecasting, to make strategic decisions
Sales and operational CRM technologies
1. Sales management CRM system 2. Contact management CRM system 3. Opportunity management CRM system
•Four quantitative models used by DSSs include
1. What-if analysis 2. Sensitivity analysis 3. Goal-seeking analysis 4. Optimization analysis
The six-step decision-making process
1. problem identification 2. data collection 3. solution generation 4. solution test 5. solution selection 6. solution implementation
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
Competitive monitoring
A company keeps tabs of its competitor's activities on the web using software that automatically tracks all competitor website activities such as discounts and new products
Virtual Reality
A computer-simulated environment that can be a simulation of the real world or an imaginary world
Recommendation engine
A data mining algorithm that analyzes a customer's purchases and actions on a website and then uses the data to recommend complementary products
Report
A document containing data organized in a table, matrix, or graphical format allowing users to easily comprehend and understand information
Entry barrier
A feature of a product or service that customers have come to expect and entering competitors must offer the same for survival
Business strategy
A leadership plan that achieves a specific set of goals or objectives such as - Developing new products or services - Entering new markets - Increasing customer loyalty - Attracting new customers Increasing sales
Data warehouse
A logical collection of information - gathered from many different operational databases - that supports business analysis activities and decision-making tasks
Entity
A person, place, thing, transaction, or event about which information is stored - The rows in a table contain entities
Foreign Key
A primary key of one table that appears an attribute in another table and acts to provide a logical relationship among the two tables
Deep Learning
A process that employs specialized algorithms to model and study complex datasets; the method is also used to establish relationships among data and datasets
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
Competitive advantage
A product or service that an organization's customers place a greater value on than similar offerings from a competitor
Model
A simplified representation or abstraction of reality
Executive information system (EIS)
A specialized DSS that supports senior level executives within the organization •Granularity •Visualization •Digital dashboard
Business process
A standardized set of activities that accomplish a specific task, such as a specific process
Prediction
A statement about what will happen or might happen in the future; for example, predicting future sales or employee turnover.
Data Lake
A storage repository that holds a vast amount of raw data in its original format until the business needs it
Data map
A technique for establishing a match, or balance, between the source data and the target data warehouse
Machine learning
A type of artificial intelligence that enables computers to both understand concepts in the environment, and also to learn •Weak AI •Strong AI
Snapshot
A view of data at a particular point in time
Systems 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
Integration
Allows separate systems to communicate directly with each other, eliminating the need for manual entry into multiple systems
Database management systems (DBMS)
Allows users to create, read, update, and delete data in a relational database
Examples of the power of business and technology
Amazon - Not a technology company; primary business focus is selling books Netflix - Not a technology company; primary business focus is renting videos Zappos - Not a technology company; primary business focus is selling shoes
Data-driven decision management
An approach to business governance that values decisions that can be backed up with verifiable data
Genetic Algorithm
An artificial intelligent system that mimics the evolutionary, survival-of-the-fittest process to generate increasingly better solutions to a problem
Data Point
An individual item on a graph or a chart
Data-Driven Websites
An interactive website kept constantly updated and relevant to the needs of its customers using a database •Content creator •Content editor •Static information •Dynamic information •Dynamic catalog
_____________________ relies heavily on data warehousing technologies and business intelligence to glean insights into customer behavior
Analytical CRM - These systems quickly aggregate, analyze, and disseminate customer information throughout an organization
Technology development
Applies MIS to processes to add value
Transaction processing system (TPS)
Basic business system that serves the operational level and assists in making structured decisions
Information Quality
Business decisions are only as good as the quality of the information used to make the decisions - You never want to find yourself using technology to help you make a bad decision faster -> Information inconsistency -> Information integrity issues
Managing Business Processes
Businesses gain a competitive edge when they minimize costs and streamline business processes
Online transaction processing (OLTP)
Capturing of transaction and event information using technology to process, store, and update
Data dictionary
Compiles all of the metadata about the data elements in the data model
Enterprise application integration (EAI)
Connects the plans, methods, and tools aimed at integrating separate enterprise systems
Supply chain
Consists of all parties involved in the procurement of a product or raw material
Customer service and operational CRM technology
Contact center, Web-based self-service, call scripting
Machine-generated data
Created by a machine without human intervention
Static Report
Created once based on data that does not change
Information
Data converted into a meaningful and useful context
Human-generated data
Data that humans, in interaction with computers, generate
Metadata
Details about data
Access Control
Determines types of user access, such as read-only access
Access Level
Determines who has access to the different types of information
Operational decision making
Employees develop, control, and maintain core business activities required to run the day-to-day operations
Managerial decision making
Employees evaluate company operations to identify, adapt to, and leverage change
Transactional information
Encompasses all of the information contained within a single business process or unit of work, and its primary purpose is to support the performing of daily operational tasks
Dirty data
Erroneous or flawed data
Information ethics
Govern the ethical and moral issues arising from the development and use of information technologies, as well as the creation, collection, duplication, distribution, and processing of information itself
Production and materials management ERP component
Handles the various aspects of production planning and execution such as demand forecasting, production scheduling, job cost accounting, and quality control
CRM Analysis Technologies
Help organization segment their customers into categories such as best and worst customers
CRM Reporting Technology
Help organizations identify their customers across other applications
CRM predicting technologies
Help organizations make predictions regarding customer behavior such as which customers are at risk of leaving
Threat of new entrants
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
High when there are many alternatives to a product or service and low when there are few alternatives
THE SOLUTION: BUSINESS INTELLIGENCE
Improving the quality of business decisions has a direct impact on costs and revenue
Data validation
Includes the tests and evaluations used to determine compliance with data governance polices to ensure correctness of data
Knowledge worker
Individual valued for their ability to interpret and analyze information
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
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
Business facing process
Invisible to the external customer but essential to the effective management of the business
Customer relationship management (CRM)
Involves managing all aspects of a customer's relationship with an organization to increase customer loyalty and retention and an organization's profitability - Many organizations, such as Charles Schwab and Kaiser Permanente, have obtained great success through the implementation of CRM systems
THE BUSINESS BENEFITS OF HIGH-QUALITY INFORMATION
Levels, Formats, and Granularities of Information
Marketing and operational CRM technology
List generator, campaign management, cross-selling and up-selling
Data model
Logical data structures that detail the relationships among data elements using graphics or pictures
Strategic decision making
Managers develop overall strategies, goals, and objectives
Accounting and finance ERP component
Manages accounting data and financial processes within the enterprise with functions such as general ledger, accounts payable, accounts receivable, budgeting, and asset management
Switching cost
Manipulating costs that make customers reluctant to switch to another product
Online analytical processing (OLAP)
Manipulation of information to create business intelligence in support of strategic decision making
Algorithms
Mathematical formulas placed in software that performs an analysis on a data set. Algorithms help uncover:
Performance
Measures how quickly a system performs a certain process or transaction
Decision support system (DSS)
Models information to support managers and business professionals during the decision-making process
Data visualization tools
Move beyond Excel graphs and charts into sophisticated analysis techniques such as pie charts, controls, instruments, maps, time-series graphs, and more
Semistructured decisions
Occur in situations in which a few established processes help to evaluate potential solutions, but not enough to lead to a definite recommended decision
Unstructured decisions
Occurs in situations in which no procedures or rules exist to guide decision makers toward the correct choice
Product differentiation
Occurs when a company develops unique differences in its products or services with the intent to influence demand
Website personalization
Occurs when a website has stored enough data about a person's likes and dislikes to fashion offers more likely to appeal to that person - These systems quickly aggregate, analyze, and disseminate customer information throughout an organization
Chief information officer (CIO)
Oversees all uses of MIS and ensures the strategic alignment of MIS with business goals and objectives
___________________ and ______________ identify the various entities (tables) in the database
Primary Keys Foreign Keys
__________ is a major ethical issue
Privacy
Marketing and sales
Promotes, prices, and sells products to customers
Service
Provides customer support
Human resource management
Provides employee training, hiring, and compensation
Real-Time system
Provides real-time information in response to requests
Procurement
Purchases inputs such as raw materials, resources, equipment, and supplies
Data
Raw facts that describe the characteristics of an event or object
Downtime
Refers to a period of time when a system is unavailable
Scalability
Refers to how well a system can adapt to increased demands
Data governance
Refers to the overall management of the availability, usability, integrity, and security of company data
Chief knowledge officer (CKO)
Responsible for collecting, maintaining, and distributing 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 MIS systems
Chief technology officer (CTO)
Responsible for ensuring the throughput, speed, accuracy, availability, and reliability of information technology - Chief intellectual property officer - Chief automation officer - Chief user experience officer
Customer facing process
Results in a product or service that is received by an organization's external customer
Loyalty program
Rewards customers based on the amount of business they do with a particular organization
Sales and operational CRM technology
Sales management, contact management, opportunity management
____________ is an issue for any organization offering products or services over the Internet
Security It is inefficient for an organization to implement Internet security, since it slows down processing - However, to be effective it must implement Internet security - Secure Internet connections must offer encryption and Secure Sockets Layers (SSL denoted by the lock symbol in the lower right corner of a browser)
Structured decisions
Situations where established processes offer potential solutions
Knowledge
Skills, experience, and expertise coupled with information and intelligence that creates a person's intellectual resources
Shopping Bot
Software that will search several retailer websites and provide a comparison of each retailer's offerings including price and availability
Enterprise application integration middleware
Takes a new approach to middleware by packaging commonly used applications together, reducing the time needed to integrate applications from multiple vendors
Predictive Analytics
Techniques that extract information from data and uses it to predict future trends and identify behavioral patterns Ex: Using past sales data to predict future sales
Supply chain visibility
The ability to view all areas up and down the supply chain in real time •Supply chain planning system •Supply chain execution system •Bullwhip effect
Fast data
The application of big data analytics to smaller data sets in near-real or real-time in order to solve a problem or create business value
Inbound Logistics
The area of logistics that involves bringing raw materials, packaging, other goods and services, and information from suppliers to producers.
outbound logistics
The area of logistics that involves managing the flow of finished products and information to business buyers and ultimate consumers (people like you and me).
Business Process Reengineering (BPR) Metrics
The balanced scorecard enables organizations to measure and manage strategic initiatives
Supply Chain Management (SCM)
The management of information flows between and among activities in a supply chain to maximize total supply chain effectiveness and profitability
Master data management (MDM)
The practice of gathering data and ensuring that it is uniform, accurate, consistent, and complete
Information Age
The present time, during which infinite quantities of facts are widely available to anyone who can use a computer
Data mining
The process of analyzing data to extract information not offered by the raw data alone
Data profiling
The process of collecting statistics and information about data in an existing source
Data replication
The process of sharing information to ensure consistency between multiple data sources
Information security
The protection of information from accidental or intentional misuse by persons inside or outside an organization
Analytics
The science of fact-based decision making
Supplier power
The suppliers' ability to influence the prices they charge for supplies
Business intelligence dashboards
Track corporate metrics such as critical success factors and key performance indicators and include advanced capabilities such as interactive controls allowing users to manipulate data for analysis
Human resource ERP component
Tracks employee information including... - payroll - benefits - compensation - performance assessment - assumes compliance with the legal requirements of multiple jurisdictions and tax authorities
Core ERP Component
Traditional components included in most ERP systems and they primarily focus on internal operations
Intelligent system
Various commercial applications of artificial intelligence
Value chain analysis
Views a firm as a series of business processes that each add value to the product or service
Benchmarking
a process of continuously measuring system results, comparing those results to optimal system performance (benchmark values), and identifying steps and procedures to improve system performance
Business Process
a standardized set of activities that accomplish a specific task, such as processing a customer's order
Sales Force Automation
a system that automatically tracks all of the steps in the sales process - The sales department was the first to begin developing CRM systems with sales force automation
ERP systems collect data from...
across an organization and correlates the data generating an enterprisewide view
The primary purpose of a data warehouse is to...
aggregate information throughout an organization into a single repository for decision-making purposes
Porter's 5 Forces model
analyzes the competitive forces within the environment in which a company operates to assess the potential for profitability in an industry
Benchmarks
baseline values the system seeks to attain
Dynamic Report
changes automatically during creation
Decision-making and problem-solving occur at ______ level in an organization
each
SCM, CRM, and ERP are the backbone of___________
ebusiness - Integration of these applications is the key to success for many companies
An _____________________ is the common term for the representation of multidimensional information
information cube
The MIS Solution
input, process, output
The customer is always right and now has more power than ever thanks to the....
internet
Organizational information is intellectual capital, therefor, ...
it must be protected
Effectiveness MIS metric
measures the impact MIS has on business processes and activities including customer satisfaction, conversion rates, and sell-through increases
Efficiency MIS metric
measures the performance of the MIS system itself including throughput, speed, and availability
Information integrity
measures the quality of information
Data scientists
perform big data analytics using: •Behavioral analysis •Correlation analysis •Exploratory data analysis •Pattern recognition analysis •Social media analysis •Speech analysis •Text analysis •Web analysis
Information cleansing or scrubbing
process that weeds out and fixes or discards inconsistent, incorrect, or incomplete information - an organization must maintain high-quality data in the data warehouse
Data Steward
responsible for ensuring the policies and procedures are implemented across the organization and acts as a liaison between the MIS department and the business
Integrity constraint
rules that help ensure the quality of information •Relational integrity constraint •Business-critical integrity constraint
Virus
software written with malicious intent to cause annoyance or damage
Data integration
the integration of data from multiple sources, which provides a unified view of all data
Integration allows....
the unlocking of information to make it available to any user, anywhere, anytime
Operations
transforms raw materials or inputs into goods and services
Types of Viruses
· Backdoor program · Denial-of-service attack (DoS) · Distributed denial-of-service attack (DDoS) · Polymorphic virus · Trojan-horse virus · Worm
Effective and efficient SCM systems can enable an organization to
· Decrease the power of its buyers · Increase its own supplier power · Increase switching costs to reduce the threat of substitute products or services · Create entry barriers thereby reducing the threat of new entrants · Increase efficiencies while seeking a competitive advantage through cost leadership
CRM can enable an organization to:
· Identify types of customers · Design individual customer marketing campaigns · Treat each customer as an individual Understand customer buying behaviors
Tools to prevent information misuse
· Information management · Information governance · Information compliance · Information Secrecy · Information Property
Algorithms help uncover:
• Anomaly detection - The process of identifying rare or unexpected items or events in a data set that do not conform to other items in the data set • Outliers - A data value that is numerically distant from most of the other data points in a set of data • Analysis paralysis - User goes into an emotional state of over-analysis (or over-thinking) a situation so that a decision or action is never taken, in effect paralyzing the outcome
Common features included in contact centers
• Automatic call distribution • Interactive voice response • Predictive dialing
Common Data Mining Techniques
• Classification - Assigns records to one of a predefined set of classes • Estimation - Determines values for an unknown continuous variable behavior or estimated future value • Affinity grouping - Determines which things go together • Clustering - Segments a heterogeneous population of records into a number of more homogeneous subgroups
Current trends of extending CRM include:
• Supplier relationship management (SRM) • Partner relationship management (PRM) • Employee relationship management (ERM)
Primary Key
•A field (or group of fields) that uniquely identifies a given entity in a table
Data mining uncovers patterns and trends such as:
•Building budgets and other financial information •Detecting fraud by identifying deceptive spending patterns •Finding the best customers who spend the most money •Keeping customers from leaving or migrating to competitors •Promoting and hiring employees to ensure success
Prediction modeling techniques include:
•Optimization modeling •Forecasting modeling •Regression modeling
Types of Charts
•Pie chart •Bar chart •Histogram •Sparkline Time-series chart
The three components of supply chain management
•Procurement •Logistics •Materials management
4 Big Data Characteristics
•Variety •Veracity •Volume •Velocity
