UNCW MIS 213 Chap 1-2

Similarity with data, info, BI, and knowledge

Using data, information, business intelligence, and knowledge to make decisions and solve problems is the key to finding success in business. These core drivers of the information age are the building blocks of business systems.

Static process

uses a systematic approach in an attempt to improve business effectiveness and efficiency continuously. Managers constantly attempt to optimize static process.

Porter's Five Forces Model

-Knowledgeable customers can force down prices by pitting rivals against each other. -Influential suppliers can drive down profits by charging higher prices for supplies. -Competition can steal customers. -New market entrants can steal potential investment capital. -Substitute products can steal customers.

MIS in Value chain analysis

MIS adds value to both primary and support value activities. One example of a primary value activity facilitated by MIS is the development of a marketing campaign management system that could target marketing campaigns more efficiently, thereby reducing marketing costs.

Business facing process

also called back-office processes, are invisible to the external customer but essential to the effective management of the business; they include goal setting, day-to-day planning, giving performance feedback and rewards, and allocating resources.

customer facing process

also called front-office processes, result in a product or service received by an organization's external customer. They include fulfilling orders, communicating with customers, and sending out bills and marketing information

Porter's three generic strategies

are generic business strategies that are neither organization nor industry specific and can be applied to any business, product, or service. These three generic business strategies for entering a new market are: (1) broad cost leadership, (2) broad differentiation, and (3) focused strategy. Broad strategies reach a large market segment, while focused strategies target a niche or unique market with either cost leadership or differentiation.

Data

are raw facts that describe the characteristics of an event or object. Before the information age, managers manually collected and analyzed data, a time-consuming and complicated task without which they would have little insight into how to run their business.

Knowledge

includes the skills, experience, and expertise, coupled with information and intelligence, that creates a person's intellectual resources.

MIS

is 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. MIS incorporates systems thinking to help companies operate cross-functionally. For example, to fulfill product orders, an MIS for sales moves a single customer order across all functional areas including sales, order fulfillment, shipping, billing, and finally customer service. Although different functional areas handle different parts of the sale, thanks to MIS, to the customer the sale is one continuous process.

competitive advantage

is a feature of a product or service on which customers place a greater value than they do on similar offerings from competitors. Competitive advantages provide the same product or service either at a lower price or with additional value that can fetch premium prices.

Value chain analysis

is a highly useful tool that provides hard and fast numbers for evaluating the activities that add value to products and services. Managers can find additional value by analyzing and constructing the value chain in terms of Porter's Five Forces Model. For example, if the goal is to decrease buyer power, a company can construct its value chain activity of "service after the sale" by offering high levels of customer service.

Systems Thinking

is 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

dynamic process

is continuously changing and provides business solutions to ever-changing business operations. As the business and its strategies change, so do the dynamic processes.

Information

is data converted into a meaningful and useful context. The simple difference between data and information is that computers or machines need data and humans need information.

Business Intelligence

is information collected from multiple sources such as suppliers, customers, competitors, partners, and industries that analyzes patterns, trends, and relationships for strategic decision making. BI manipulates multiple variables and in some cases even hundreds of variables including such items as interest rates, weather conditions, and even gas prices.

Business Process Reengineering

is the analysis and redesign of workflow within and between enterprises. During a BPR effort a company begins with a blank sheet of paper evaluating existing processes to create new processes that deliver added-value to customers and eliminate redundancies in workflows

MIS is essential because

it is the key to breaking down information silos by allowing information to flow across the organization.