CIS 3380 - Exam 2
Database management system (DBMS)
a set of programs that provide users with tools to add, delete, access, modify, and analyze data stored in a single location
Tacit knowledge
cumulative store of subjective or experiential learning. Examples: experiences, insights, expertise, know
Benefits of ERP systems
Organizational flexibility, agility & adaptability. Decision support for managers (more timely data and info availability). Quality and efficiency at all levels. Improve customers service, production and distribution
Routine reports
produced at scheduled intervals.
Six Sigma
A method for BPI focused on reducing defects in process outputs by using statistical methods. Ensures that the process has no more than 3.4 defects per million outputs by using statistical methods to analyze the process. Developed by Motorola in the 1980's and used by companies worldwide.
Knowledge Management (KMS)
A process that helps manipulate important knowledge that comprises part of the organization's memory, usually in an unstructured format.
BPR vs BPI
BPI has low risk & low cost, incremental change, bottom up approach, and takes less time. BPR has high risk & high rost, a radical redesign, top-down approach, and time consuming.
Basics of ERP systems
Collect data from across an org and correlate data, generating enterprise-wide view. Database at heart of all ERP systems. Automate business processes. Bring orgs together.
External Sources
Commercial databases, government reports, and corporate Web sites.
Internal Sources
Corporate databases, company documents
Primary sources of low quality/bad data
Customers intentionally enter inaccurate information to protect their privacy. Different entry standards and formats. Operators enter abbreviated or erroneous information by accident or to save time. Third party and external information contains inconsistencies, inaccuracies, and errors
How do IS's help monitor process performance?
Evaluates information to determine how well a process is being executed. Evaluates at a process level and at an instance level. Monitors & identifies problems for process improvement.
What is IS's vital role in the three areas of business processes?
Executing the process, capturing and storing process data, and monitoring process performance
Loyalty programs are appropriate when what two conditions are met?
High frequency of repeat purchases and limited product customization for each customer
Benefits of good information
High quality information can significantly improve the chances of making a good decision Good decisions can directly impact an organization's bottom line
International Organization for Standardization
ISSO's. various aspects of quality management. The standards provide guidance and tools for companies and organizations who want to ensure that their products and services consistently meet customer's requirements, and that quality is consistently improved.
enterprise resource planning (ERP) systems
Information systems that take a business process view of the overall organization to integrate the planning, management, and use of all of an organization's resources, employing a common software platform and database.
Software-as-a-Service ERP implementation
In this business model, the company rents the software from an ERP vendor who offers its products over the Internet using the SaaS model. The ERP cloud vendor manages software updates and is responsible for the system's security and availability.
Effects resulting from low quality/poor information include
Inability to accurately track customers. Difficulty identifying valuable customers. Inability to identify selling opportunities. Marketing to nonexistent customers
How do IS's help execute the process?
Informing employees when it's time to complete a task, providing required data, providing a means to complete the task
Ad hoc (on demand) reports
Nonroutine reports that often contain special information that is not included in routine reports.
Personal Sources
Personal thoughts, opinions, experiences
How do IS's help capture and store process data?
Processes generate data (aka transaction data) and captures/stores data that provides immediate, real time feedback anywhere and anyplace.
Procurement process in steps
Purchasing department identifies vendor, creates purchase order, and sends order to vendor. Vendor receives order and ships the materials, which are received in the warehouse. Vendor sends an invoice, received by the accounting department. Accounting sends payment to vendor.
Knowledge management systems (KMS)
Refer to the use of modern information technologies - the Internet, intranet, extranets, databases - to systematize, enhance, and expedite intrafirm and interfirm knowledge management.
Limitations of ERP systems
Since ERP's are based on best practices, companies may need to change their methods of achieving business objectives. ERP systems can be complex, expensive, and time consuming to implement.
How can organizations determine if their business processes are well designed?
The first step is to document the process by describing its steps, its inputs and outputs, and its resources. The organization can then analyze the process and, if necessary, modify it to improve its performance.
Bundling
a form of cross selling in which a business sells a group of products or services together at a lower price than their combined individual prices
Database
a group of logically related fils that stores data and the associations among them
Field
a logical grouping of characters into a word, group of words, or identification numbers.
Data file/table
a logical grouping of related records
Data mart
a low-cost, scaled-down version of a data warehouse that is designed for the end-user needs in a strategic business unit or a department
RFM (recency, frequency, monetary) analysis
a marketing technique used to determine which customers are the best ones by examining how recently a customer has purchased (recency), how often they purchase (frequency), and how much the customer spends (monetary). RFM analysis is based on the marketing axiom that "80% of your business comes from 20% of your customers."
Capability Maturity Model Integration
a process model that provides a clear definition of what an organization should do to promote behaviors that lead to improved performance.
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
business activity monitoring (BAM)
a real-time approach for measuring and managing business processes. Companies use BAM to monitor their business processes, identify failures or exceptions, and address these failures in real time
Data warehouse
a repository of historical data that are organized by subject to support decision makers in the organization
Up selling
a sales strategy in which the business person provides to customers the opportunity to purchase related products or services of greater value in place of, or along with, the consumer's initial product or service selection
Business process
an ongoing collection of related activities that create a product or service of value to the organization, its business partners, and/or its customers.
Sales management CRM system
automates each phase of the sales process, helping individual sales representatives coordinate and organize all of their accounts
Data hierarchy
begins with bits and proceeds all the way to databases. Database > File > record > field > byte > bit
Cross-functional business processes
business processes cut across multiple functional areas. No single functional area is responsible for their execution multiple functional areas collaborate to perform the process.
online transaction processing (OLTP)
business transactions are processed online as soon as they occur
Comparative reports
compare performances of different business units or of a single unit during different times
Fulfillment process
concerned with processing customer orders. triggered by a customer purchase order that is received by the sales department. Sales then validates the purchase order and creates a sales order. The sales order communicates data related to the order to other functional areas within the organization, and it tracks the progress of the order. The warehouse prepares and sends the shipment to the customer. Once accounting is notified of the shipment, it creates an invoice and sends it to the customer. The customer then makes a payment, which accounting records.
Six areas of excellence in executing business processes
customer satisfaction, cost reduction, cycle/fulfillment time reduction, quality, differentiation, productivity
Customer relationship management (CRM)
customer-focused and customer-driven organizational strategy. Organizations concentrate on assessing customers' requirements for products and services and then providing high-quality, responsive service.
Volume
data size. Scale of data
Variety
data sources. Different forms of data
Inputs
data, materials, conditions
Drill-down reports
display greater level of detail
Malcolm Balridge National Quality Award
established by the U.S. Congress in 1987 to raise awareness of quality management and recognize U.S. companies that have implemented successful quality management systems. given in six categories: manufacturing, service, small business, education, healthcare and nonprofit. The award is named after the late Secretary of Commerce Malcolm Baldrige.
Byte
group of eight bits that represent a single character. Can be a letter, number, or a symbol.
Exception reports
include only info that falls outside of certain threshold standards
Procurement process
includes all tasks involved in acquiring needed materials externally from a vendor. Completed in three different areas of the firm - warehouse, purchasing, and accounting.
The purpose of loyalty programs is to
influence future behavior.
Resources
information, people, skills
Business process elements
inputs, resources, outputs
On-premise ERP implementation
installed locally, on a company's own computers and servers.
Record
logical grouping of related fields
Contact management CRM system
maintains customer contact information and identifies prospective customers for future sales
Make
manufacturing component. Supply chain managers schedule the activities necessary for production, testing, packaging, and preparation for delivery. organizations measure quality levels, production output, and worker productivity.
Database normalization
method for analyzing and reducing a relational database to its most streamlined form to ensure minimum redundancy, maximum data integrity, and optimal processing performance. Attributes depend only on the primary key.
Business process improvement (BPI)
more incremental approach that focuses on reducing variation in the process outputs by searching for root causes of the variation in the process itself or among the process inputs. Define, measure, analyze, improve, control.
Structured Query Language (SQL)
most popular query language used for this operation. allows people to perform complicated searches by using relatively simple statements or key words. (select, from, where)
Explicit knowledge
objective, rational, technical knowledge that has been documented. Examples: Policies, procedural guides, reports, products, strategies, goals, core competencies
Source
organizations choose suppliers to deliver the goods and services they need to create their product or service. Supply chain managers develop pricing, delivery, and payment processes with suppliers, and they create metrics to monitor and improve their relationships with their suppliers. They also develop processes for managing their goods and services inventory.
Loyalty programs
programs that offer rewards to customers who influence future behavior. Use a database/data warehouse to keep a record of the points a customer has accrued and the rewards they're entitled to.
Outputs
results or decisions
Online reports
routine, ad-hoc (on demand), exception
Bit (binary digit)
smallest unit of data a computer can process. Binary means the bit can only consist of a 0 or 1.
Upstream (SCM)
sourcing or procurement from external suppliers occurs. Managers select suppliers to deliver the goods and services the company needs to produce
Velocity
speed of change. Analysis of streaming data
Plan
strategic component of SCM. Organizations must have a strategy for managing all the resources that go toward meeting customer demand for their product or service. involves the development of a set of metrics to monitor the organization's supply chain to ensure that it is efficient and it delivers high quality and value to customers for the lowest cost.
Business process reengineering (BPR)
strategy for making organization's businesses processes more productive & profitable. The key is for enterprises to examine their business processes from a "clean sheet perspective" & determine how they can reconstruct them to improve business functions.
Key indicator reports
summarize performance of critical activities
transaction processing system (TPS)
supports the monitoring, collection, storage, and processing of data from the organization's basic business transactions, each of which generates data. collects data continuously, typically in real time and it provides the input data for the corporate databases.
Opportunity management CRM system
targets sales opportunities by finding new customers or companies for future sales
Define phase (BPI)
the BPI team documents the existing "as is" process activities, process resources, and process inputs and outputs, usually as a graphical process map, or diagram.
analysis phase (BPI)
the BPI team examines the "as is" process map and the collected data to identify problems with the process (such as decreasing efficiency or effectiveness) and their root causes
improve phase (BPI)
the BPI team identifies possible solutions for addressing the root causes, maps the resulting "to be" process alternatives, and selects and implements the most appropriate solution.
measure phase (BPI)
the BPI team identifies relevant process metrics, such as time and cost to generate one output (product or service), and collects data to understand how the metrics evolve over time.
Sales force automation (SFA)
the component of an operational CRM system that automatically records all of the components in a sales transaction process.
Batch processing
the firm collects data from transactions as they occur, placing them in groups/batches. The system then prepares and processes the batches periodically
supply chain
the flow of materials, information, money, and services from raw material suppliers, through factories and warehouses, to the end customers. includes the organizations and processes that create and deliver products, information, and services to end customers.
Cross selling
the marketing of additional related products to customers based on a previous purchase
Data mining
the process of analyzing data to extract information not offered by the raw data alone
Customer satisfaction
the result of optimizing and aligning business processes to fulfill customers needs, wants, and desires
Productivity
the result of optimizing each individuals' work process
Cost reduction
the result of optimizing operations and supplier processes
Quality
the result of optimizing the design, development, and production processes. Divided into two categories - product and process quality
Cycle and fulfillment time reduction
the result of optimizing the manufacturing and logistics processes
Differentiation
the result of optimizing the marketing and innovation processes
control phase (BPI)
the team establishes process metrics and monitors the improved process after the solution has been implemented to ensure the process performance remains stable.
Query By Example (QBE)
the user fills out a grid or template—also known as a form—to construct a sample or a description of the data desired.
Veracity
uncertainty of data
Four V's of big data
volume, variety, velocity, veracity
Downstream (SCM)
where distribution takes place, frequently by external distributors. SC managers coordinate the receipt of orders from customers, develop warehouses, select delivery carriers, and develop invoice systems.
Internal (SCM)
where packaging, assembly, and manufacturing takes place. SC managers schedule activities for production & monitor output, quality, and productivity.