Midterm 1 Review
Terms in this set (63)
What is a Paradigm
Set of rules or way to think about something
Understand the two things that paradigms do
1. Set limits or boundaries (rules)
2. Offer guidance on how to solve problems within the boundaries
1. Helps us to perceive positive data, stops us from seeing negative data. Makes us see what we want to and not see what we don't want to. Can blind us to the correct answer
back to zero rule
1. Your past success guaranties nothing in the future. When a paradigm shift happens, you must change what you do. You are back at zero
List the six key observations about paradigms
1. Paradigms are common
2. Paradigms are useful-help identify what is and isn't important
3. Sometimes your paradigm can become the paradigm
4. The people who discover new paradigms are usually outside of them
5. Those who choose to change from the old to the new paradigm have to be courageous. Decisions must be made on faith
6. You can choose to change your paradigm
creates a new market and ultimately and unexpectedly overtakes an existing market.
an innovation that does not affect existing markets.
Why do managers in organizations often fail to perceive the importance of adopting technologies that might improve or broaden their products and services?
They place insufficient value on the disruptive innovation. They are concentrated on sustaining innovations which they need to continue to compete in an existing market.
You believe your paradigm is the ONLY reasonable paradigm and you reject all other paradigms regardless of their actual value
Those who choose to adopt a new paradigm
Porter's Five Forces
Competitive rivalry, Power of buyers, suppliers, threat of substitutes, barriers to entry, and threat of new entrants.
Porter's Three Generic Strategies
Cost leadership, differentiation, or focused strategy. (Focuses are for small target markets. Overall cost=Walmart, overall differentiation=apple Broad market=Windows 8, narrow market=quickbooks (for accountants))
The buyer can exert control over prices (Walmart) . If there is high buyer power, the buyers have many choices of whom to buy from and low when there are few choices. High=clothes, low=utilities.
An advantage that lowers costs or increases revenues. The ability to create value better or cheaper than competitors.
Things like licenses that can make it more difficult to enter a given market.
The part of the demand chain that drives demand. Marketing, sales, and service.
occurs when an organization can significantly impact its market share by being first to market with a competitive advantage. It happens when there is a paradigm shift.
Reward customers based on the amount of business they do with you. Designed to reduce buyer power.
Primary value activities
directly related to producing the product.
-Inbound logistics - These are all the processes related to receiving, storing, and distributing inputs internally. Your supplier relationships are a key factor in creating value here.
These are the transformation activities that change inputs into outputs that are sold to customers. Here, your operational systems create value.
These activities deliver your product or service to your customer. These are things like collection, storage, and distribution systems, and they may be internal or external to your organization.
Marketing and sales
These are the processes you use to persuade clients to purchase from you instead of your competitors. The benefits you offer, and how well you communicate them, are sources of value here.
These are the activities related to maintaining the value of your product or service to your customers, once it's been purchased.
Rivalry among existing competitor
high when competition is fierce.
-Suppliers can exert control over prices (like Apple and iPhones). High when buyers have few choices of whom to buy and lower when their choices are many.
Purchasing, manufacturing and distribution. How a company receives, makes, and distributes its products.
Support value activities
Not directly related to making the product
(purchasing) - This is what the organization does to get the resources it needs to operate. This includes finding vendors and negotiating best prices.
Human resource management
This is how well a company recruits, hires, trains, motivates, rewards, and retains its workers. People are a significant source of value, so businesses can create a clear advantage with good HR practices.
These activities relate to managing and processing information, as well as protecting a company's knowledge base. Minimizing information technology costs, staying current with technological advances, and maintaining technical excellence are sources of value creation.
These are a company's support systems, and the functions that allow it to maintain daily operations. Accounting, legal, administrative, and general management are examples of necessary infrastructure that businesses can use to their advantage.
The cost of going from one product to another. If they are high, they can prevent customers from buying from competition or substitutes.
Threat of new entrants
The competition that arises with new competitors entering a market
Threat of substitute products or services
If there are many substitutes, it will be difficult to make margins on your product or persuade customers to buy your product. Substitutes are different from competition. It is another way to solve the problem not just a different company.
Products and services that an organization's customers place a greater value on than similar offerings from a competitor.
How small information is broken down into.
Data that comes from a transaction, ex ATM, Customer checkout, Airline reservation.
Information that has been summarized and organized to help make decisions.
When something is entered into a database and it is immediately entered into the database so that others can see it. Immediate.
-Are all of the values correct? Names spelled correctly? $ value right?
Is all or part of a value missing? Does the address include a zip code?
Does summary data equal the aggregation of the parts? Does the sum of the line items = total value?
Are elements of the data represented only once? Do we have the same customer listed twice?
-Is the information current with respect to business requirements?
Column headings, a subcategory of an entity. Ex. If entity is book, attributes would be titles, authors, etc.
Security, increases accuracy, information integrity and quality, reduces redundancy, and increased flexibility.
How many rows can reference one row in a database. Number of occurrences of one entity for a single occurrence of a related entity.
The identifier of a table.
A primary key from another table referenced in a table.
Using a combination of attributes together as a primary key to uniquely identify a record. A PK will be placed after each attribute to show that they will be considered together. (sporting event ticket)
(aka natural) Key-What you use to identify a record in a database has meaning outside of the database. Ex. Section, row, seat for a sporting event.
Made up string of numbers or characters that has no meaning outside of the database. Ex. Customer id, product id.
Primary Key Requirements
Unique Identification and Non-redundancy
A table used to link two entities together when their relationship is many to many. Ex. Linking product and order together with LineItem.
Serialized versus virtual instances
If an item is serialized, then it can only be on one order, but if it isn't then it can be on many order. Ex. Guns versus bananas.
characteristics of good measures
Simple and easy to understand (understand how it is measured and what it means)
ii. Easily obtainable
iii. Precisely Definable-clearly defined so they can be applied and evaluated consistently
iv. Objective-different people would arrive at the same value.
v. Valid-Measure what you are intending to measure
vi. Robust-insensitive to insignificant changes (weight, count, measures etc.) Not character-it can change based whether we are at a sporting event or at church.
Other considerations of measurment
1. Units of measure (should payroll be measured in seconds? Days? Hours is much better)
2. Precision-number of decimal places. Conversion rates (very important) or average salary for different majors (not very important, within a hundred or a thousand dollars)
3. Sampling-representative sampling vs. exhaustive sampling. Rep=1000 people, exhaustive=all employees in a firm
Comparing inputs to outputs.
The relevance of precision
Not sensitive to changes in process of product
Measures precisely what is intended
What could cause low quality information?
Manual data entry, no checks, and/or bad definitions