field concerned with the use of technology in managing and processing information
management information systems; the business function and academic discipline covering the application of people, technologies, and procedures to solve business problems
raw facts that describe the characteristics of an event
date, item number, item description
data converted into a meaningful and useful context
best-selling item, worst customer
applications and technologies that are used to gather, provide access to, and analyze data and information to support decision-making efforts
product/service that an organization's customers place a greater value on than similar offerings from a competitor
when an organization can significantly impact its market share by being first to market with a competitive advantage
first-mover advantage ex.
FedEx created a customer self-service software allowing people to request a package pick-up, print mailing slips, etc.
ability of buyers to directly impact the price they are willing to pay for an item; buying from industry companies, not suppliers
factors of buyer power
1) number of customers
2) size of orders
3) differences between competitors
4) sensitivity of price
5) availability of substitute products
costs that can make customers reluctant to switch to another product/service; reduces buyer power
Switching costs ex.
reward customers based on the amount of business they do with a particular organization
Loyalty programs ex.
all parties involved acquiring of a product or raw material
supplier's ability to directly impact the price they are charging for supplies
Factors of supplier power
1) number of suppliers
2) size of suppliers
3) uniqueness of services
4) availability of substitute products
Threat of substitute ex.
high: airline industry, many modes of transportation
low: polaroid until video cameras and cell phones with camera came out
product or service feature that customers have come to expect from organization in a particular industry and must be offered by an entering organization to compete and survive
entry barrier ex.
new bank must offer ATMs, online bill paying, and online account monitoring
Rivalry among existing customers ex.
high: grocery stores
broad market, low cost
broad market, high cost
narrow market, low and high cost
cost leadership ex.
Hyundai, low cost vehicles that appeal to a large audience
Audi, differentiation is safety, higher prices to a large audience
focused cost leadership ex.
Kia, low-cost vehicles to lower levels of groups
focused differentiation ex.
views an organization as a series of processes, each of which adds value to the product or service for each customer
lower costs, superior benefits (differentiation)
primary value activities
acquire raw material and manufacture, deliver, market, sell, and provide after-sales services
support value activities
support the primary value activities; HR, tech development
primary value activity ex.
development of marketing campaign management system that could target ads and reduce marketing costs
support value activity ex.
development of HR system that could more efficiently reward employees based on performance
the extent of detail within the information
all of the info contained within a single business process; purpose is to support the performing of daily operational tasks
transactional information ex.
withdrawing cash from ATM, making airline reservation, purchasing stocks
all organizational info; purpose is to support the performing of managerial analysis tasks; includes transactional information as well as market and industry information
analytical information ex.
trends, sales, product statistics, and future growth projections
immediate, up-to-date information
provide real-time information in response to query requests
are all of the values correct
is all or part of a value missing
does summary data equal the aggregation
any elements of the data represented only once
is the information current with respect to business requirements
name spelled correctly; dollar amount recorded properly
do all total fields equal true total of the individual fields
is the information updates on time
maintains information about various types of objects, events, people, and places
relational database model
type of database that store information in the form of logically related two-dimensional tables
person, place, thing, transaction or event about which info is stored
characteristics of an entity
customer, order, product, distributor
customer ID, product ID, price, phone number
field that uniquely identifies a given entity in a table
primary key ex.
customer ID uniquely identifies each customer (entity)
a primary key of one table that appears as an attribute in another table and acts to provide a logical relationship between the two tables
the physical storage of information
physical view ex.
information on a hard disk
how users access info to meet the business' needs
logical view ex.
one person wants last name before first name while another wants the opposite (different logical view but same physical)
how well a system can adapt to increased demands
how quickly a system performs a certain process
duplication of info or storing the info in multiple places
relational integrity constraints
rules that enforce basic and fundamental information-based constraints
relational integrity constraints ex.
not create an order for a nonexistent customer; order zero pounds
business-critical integrity constraints
enforce business rules vital to an organization's success
business-critical integrity constraints ex.
no returns after so many days for a fresh produce grocery store
database management system (DBMS)
software where users and application programs interact with a database
allows separate systems to communicate directly with each other
takes info entered into a system and sends it automatically to all downstream systems and processes
takes info entered into a system and sends it automatically to all upstreams systems and processes
impact IT system has on customer satisfaction, conversion rates, sell-through increases; doing the right things
speed, availability of IT system; doing things right
collection of info gathered from many databases that supports business analysis activities and decision-making tasks; only analytical processing
extracts info from databases, transforms the info, and loads the info into a data warehouse
contains a subset of data warehouse info
the representation of multidimensional information
process of analyzing data to extract info not offered by the raw data alone
techniques to find patterns and relationships in large volumes of info and infer rules from then that predict future behavior
data-mining tools ex.
query tools, reporting tools
weeds out and fixes or discards inconsistent, incorrect, or incomplete info
change one variable in a model and see the resulting changes
changes causes to understand all the effects of various situations
finds inputs to achieve a goal
supports to manages and business professional
supports to senior-level executives
access to details, and details of details
look at info from different perspectives
integrates info from many different places into a unified display