How can we help?

You can also find more resources in our Help Center.

32 terms

414 Ch 1

STUDY
PLAY
Value Chain
Conceptualized organization of activities an organization performs to provide value to their customers.
Value Chain Parts
1. Inbound Logistics 2. Operations Activities 3. Outbound logistics 4. Marketing and sales 5. Service
Inbound Logistics
"Receiving, storing, and distributing the materials an organization uses to create the products and services it sells."
Operations Activities
Transform inputs into final products or services.
Outbound logistics
Distribute finished product or service to customers
Marketing and sales
Help customers buy the products or services the organization provides.
Service
Provide post-sale support to customers
Support Activities
Allow the five primary activities (value chain parts) to be performed effectively and efficiently.
Support Activities Outline
1. Firm Infrastructure 2. Human Resources 3. Technology 4. Purchasing
Firm Infrastructure Activities
"Accounting, finance, legal and geneal administration activities that allow an organization to function."
Human Resources Activities
"Recruiting, hiring, training, and providing employee benefits and compensations."
Technology Activities
Improve a product or service.
Purchasing Activities
"Procure raw materials, supplies, machinery, and the buildings used to carry out the primary activities."
Supply Chain
A manufacturing organization interacts with its suppliers and distributors. Value chain is a part of this.
How an AIS can add value to an organization
1. Improving quality & reducing costs 2. Improving efficiency 3. Sharing knowledge 4. improving the efficiency and effectiveness of its supply chain 5. Improving the internal control structure 6. Improving decision making
Structured Decisions
"repetitive, routine, understood well enough to be delegated"
semi-structured decisions
incomplete decisions need for subjective assessments; can be computer aided
unstructured decisions
"nonrecurring and non-routine, require judgment and intuition. "
operational control
effective efficient performance of tasks
management control
effective and efficient use or resources
strategic planning
establishing objectives and policies to accomplish objectives.
product differentiation
adding features or services not provided by competitors
low-cost strategy
be the most efficient producer
variety-based strategic position
providing a subset of the industry ex. Jiffy Lube only oil changes
needs-based strategic position
trying to serve most or all of the needs of a particular group ex. AARP tries to get all retirees
access-based strategic position
serving a subset of customers who are different ex. Edward Jones only operates in small towns
synergy
the system is greater than the sum of its parts
predictive analysis
use data and algorithms to forecast future events
value of information
benefit produced by the information minus the cost of producing it
MAJOR BENEFITS OF INFORMATION:
1. Reduction of uncertainty 2. Improved decisions 3. Better ability to plan activities
mandatory information
required by a governmental entity
essential information
required to conduct business with external parties