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OMIS 350 Exam 1
Terms in this set (64)
The 6 Important Business Objectives of information technology (IT):
1. Operational excellence
2. New products, services, and business models
3. Customer and supplier intimacy
4. Improved decision making
5. Competitive advantage
1. Operational excellence:
-Improvement of efficiency to attain higher profitability
-Information systems, technology an important tool in achieving greater efficiency and productivity
-Walmart's Retail Link system links suppliers to stores for superior replenishment system
2. New products, services, and business models:
-Business model: describes how company produces, delivers, and sells product or service to create wealth
-Information systems and technology a major enabling tool for new products, services, business models
Examples: Apple's iPad, Google's Android OS, and Netflix
3. Customer and supplier intimacy:
-Serving customers well leads to customers returning, which raises revenues and profits.
-Example: High-end hotels that use computers to track customer preferences and used to monitor and customize environment
-Intimacy with suppliers allows them to provide vital inputs, which lowers costs.
-Example: JCPenney's information system which links sales records to contract manufacturer
4. Improved decision making:
-Without accurate information:
Managers must use forecasts, best guesses, luck
Misallocation of resources
Poor response times
Poor outcomes raise costs, lose customers
-Example: Verizon's Web-based digital dashboard to provide managers with real-time data on customer complaints, network performance, line outages, and so on
5. Competitive advantage:
-Delivering better performance
-Charging less for superior products
-Responding to customers and suppliers in real time
-Examples: Apple, Walmart, UPS
-Information technologies as necessity of business
Example: Citibank's introduction of ATMs
-Governmental regulations requiring record-keeping
-Examples: Toxic Substances Control Act, Sarbanes-Oxley Act , Dodd-Frank Act
-Set of interrelated components
-Collect, process, store, and distribute information
-Support decision making, coordination, and control
1. Information is data shaped into meaningful form.
2. Data are streams of raw facts.
3. Captures raw data from organization or external environment.
4. Converts raw data into meaningful form.
5. Transfers processed information to people or activities that use it.
The advantages of cloud computing:
more and more business software runs over the internet.
Three basic activities of an information system:
-input - example: the process of asking students their age.
-processing - example: calculating the average age and determining the oldest and youngest age.
-output - writing information on the board.
Management information systems (MIS):
deals with behavioral issues as well as technical issues surrounding the development, use, and impact of information systems used by managers and employees in the firm.
1. knowledge workers:
2. data workers:
1. scientists, engineers.
2. production and service workers. secretaries and clerks.
Three dimensions of information systems:
1. organizational dimension.
2. technology dimension.
3. management dimension.
1. computer hardware:
2. computer software:
1. the physical equipment used for input, processing, and output activities.
2. consists of the detailed, pre-programed instructions that control and coordinate the computer hardware components.
3. data management technology:
4. networking and telecommunications technology:
3. consists of the software governing the organization of data on physical storage media.
4. consisting of both physical devices and software, links the various pieces of hardware and transfers data from one physical location to another.
Major business functions:
1. sales and marketing: selling the products and services.
2. manufacturing and production: producing and delivering products and services.
3. finance and accounting: managing the assets and maintaining financial records.
4. human resources: attracting, developing and maintaining the organization's labor force.
Primary reasons for implementing a new information system:
-increases in productivity, revenues, stock value, and long-term strategic positioning.
1. senior management:
2. middle management:
3. operational management:
1. makes long-range strategic decisions about products and services as well as ensure financial performance.
2. carries out the programs and plans of senior management.
3. monitors the daily activities of the business.
3. world wide web:
1. internal corporate networks based on internet technology.
2. private intranets extended to authorized users outside the organization.
3. service provided by the internet that uses universally accepted standards for storing information.
Technical approach to information systems:
emphasizes mathematically based models to study information systems, as well as the physical technology and formal capabilities.
Behavioral approach to information systems:
concentrates on changes in attitudes, management and organizational policy, and behavior.
Functional business processes:
1. manufacturing and production:
-assembling the product.
-checking for quality.
-producing bills of materials.
2. sales and marketing:
-making customers aware of the product.
-selling the product.
3. finance and accounting:
-creating financial statements.
-managing cash accounts.
4. human resources:
-evaluating employees' job performance.
-enrolling employees in benefit plans.
1. transaction processing systems (TPS):
2. business intelligence:
1. provide and keep track of the elementary activities and transactions of the organization. computerized system such as a payroll system.
2. contemporary term for data and software tools for organizing and analyzing data to help managers make decisions.
3. Management information system:
4. decision support systems (DSS):
5. executive support systems (ESS):
3. designates a specific category of information systems serving middle management. transaction processing systems.
4. focus on problems that are unique and rapidly changing. voyage-estimating system.
5. help senior management make decisions about business intelligence systems. one that shows a firm's financial performance.
systems that span functional areas, focus on executing business processes across the business firm and include all levels of management. help businesses become more flexible. has four major enterprise applications.
1. Enterprise systems:
also known as enterprise resource planning (ERP) systems, to integrate business processes in manufacturing and production, finance and accounting, sales and marketing, and human resources into a single software system.
2. Supply chain management (SCM) systems:
used to help manage relationships with their suppliers.
3. Customer relationship management (CRM):
used to help manage their relationships with customers .
Knowledge management systems (KMS):
enable organizations to better manage processes for capturing and applying knowledge and expertise. capture all relevant knowledge and experience.
1. electronic business refers to the use of digital technology and the internet to execute the major business processes.
2. electronic commerce deals with the buying and selling of goods and services over the internet.
3. refers to the application of the internet and networking technologies to digitally enable government and public agencies' relationships.
working with others to achieve shared and explicit goals. today jobs require more interaction and teamwork among others. more important because of:
-growth of professional work.
-changing organization of the firm.
the use of social networking platforms including facebook, twitter to engage their employees, customers, and suppliers.
table 2.2 pg. 58
Information systems department:
the formal organizational unit responsible for information technology services.
1. chief information officer (CIO):
2. chief security officer (CSO):
3. chief privacy office (CPO):
4. chief knowledge officer (CKO):
5. chief data officer (CDO):
1. the head of information systems department.
2. is in charge of information systems security for the firm and is responsible for enforcing the firms information security policy.
3. responsible for ensuring that the company complies with existing data privacy laws.
4. responsible for the firm's knowledge management program.
5. responsible for enterprise-wide governance and utilization of information to maximize the value the organization can realize from its data.
representatives of departments outside of the information systems group for whom applications are developed.
includes the strategy and policies for using information technology within an organization.
The interaction between information systems and organizations is influenced by the development of new information technologies.
a stable, formal social structure that takes resources from the environment and processes them to produce outputs.
Features of organizations that impact the use of information systems:
business processes, environments, culture, politics, structures, goals, constituencies, leadership styles
are a collection of routines.
are substitute products that perform as well or better than anything currently produced. Examples) e-mail, Internet telephony, PCs, smartphones.
the costs incurred when a firm buys on the marketplace what it cannot make itself.
The four components that must be changed in an organization in order to successfully implement a new IS are:
tasks, technology, people and structure.
The Competitive Forces in Porter's Model are:
suppliers, customers, new market entrants, substitute products, and competition among firms.
A firm can exercise greater control over its suppliers by having more suppliers.
Four major competitive strategies:
1. low-cost leadership:
use information systems to achieve the lowest operational costs and the lowest prices. Walmart.
2. product differentiation:
use information systems to enable new products and services, or greatly change the customer convenience in using your existing products and services. Google.
3. focus on market niche:
use information systems to enable a specific market focus and serve this narrow target market better than competitors.
4. strengthen customer and supplier intimacy:
use information systems to tighten linkages with suppliers and develop intimacy with customer. chrysler corporation.
the ability to offer individually tailored products or services using the same production resources as mass production .
value chain model:
highlights specific activities in the business where competitive strategies can best be applied and when information systems are most likely to have a strategic impact.
primary activities of the value chain model:
most directly related to the production and distribution of the firm's products and services which create value for the customer. include inbound logistics, operations.
make the delivery of the primary activities possible and consist of organization infrastructure (administration and management, human resources)
1. manufacturing and production:
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