CHAPTER 1: Management Information Systems

What is machine to machine?

(M2M) refers to technologies that allow both wireless and wired systems to communicate with other devices of the same type.

What is the challenge of companies with regard to departments/functional business units?

Common Departments Working Independently Accounting Finance Human Resources Marketing OM Sales

What are the 4 core drivers of the information age? Be able to provide an example of each.

Data Information Business Intelligence Knowledge

Information

Data converted into a meaningful and useful context

What is the value of real-time data?

Extremely valuable because you're able to get information quickly. E.g. Credit cards banks did not know how much you had on your credit card statement. It allows you to have a better opportunity to make a strategic decision, better decision to predict trends

How useful is the value of information?

Information - Data converted into a meaningful and useful context, but it is not really useful

Business intelligence

Information collected from multiple sources (suppliers, buyers, competition, business partners) that analyzes patterns, trends, and relationships for strategic decision making

What is the MIS solution for departments/functional business units?

Interdependent decisions have a positive effect on the company to help make business decisions

Which processes in the value chain are primary activities and those that are support activities?

Primary value activities Inbound logistics - Acquires raw materials and resources, and distributes Operations - Transforms raw materials or inputs into goods and services Outbound logistics - Distributes goods and services to customers Marketing and sales - Promotes, prices, and sells products to customers Service - Provides customer support Support value activities Firm infrastructure - Includes the company format or departmental structures, environment, and systems Human resource management - Provides employee training, hiring, and compensation Technology development - Applies MIS to processes to add value Procurement - Purchases inputs such as raw materials, resources, equipment, and supplies

Data

Raw facts that describe the characteristics of an event or object

MIS Department Roles and Responsibilities

SPITK: Security Officer - prevents hackers and viruses Privacy Officer - ethical and legal uses Information Officer - oversees use of MIS strategies Technology Officer - ensure speed, accuracy, availability, reliability of the MIS Knowledge Officer - collects, maintain, distributes company knowledge

4 tools are used to analyze competitive intelligence

SWOT Analysis Five Forces Model The Three Generic Strategies Value Chain Analysis

Knowledge

Skills, experience, and expertise coupled with information and intelligence that creates a person's intellectual resources

Systems Thinking

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

What is information age?

The PRESENT time, during which infinite quantities of FACTS are widely available to anyone who can use a computer:

What happens to competition if the forces are weak or strong?

Weak strengths Strong weaknesses Weak opportunities Strong threats = increased competition

What is the internet of Things (IoT)?

a world where interconnected, Internet-enabled devices or "things" can collect and share data without human intervention.

Understand which SWOT category is affected by external or internal influences.

internal factors - the strengths and weaknesses internal to the organization external factors - the opportunities and threats presented by the environment external to the organization

Competitive advantage Is it temporary or permanent? Why?

o Competitive advantage - A product or service that an organization's customers place a greater value on than similar offerings from a competitor o Competitive advantages are temporary. Eventually others will copy. Always try to be the first-mover

Competitive intelligence

the process of gathering information about the competitive environment, including competitors' plans, activities, and products, to improve a company's ability to succeed. It means understanding and learning as much as possible as soon as possible about what is occurring outside the company to remain competitive.