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FINAL ISDS CHECKUP!!! Chapters 6-8
Terms in this set (60)
-- CHAPTER 6 --
Information Technology (IT) and Information Systems (IS) are the same.
What is an information system?
Information systems are formal, sociotechnical, organizational systems designed to collect, process, store, and distribute information.
What is a system?
An assemblage or combination of things or parts forming a complex or unitary whole
The 4 COMPONENTS of an IT-based information system (IS) are:
What are the 2 technical components?
IT & Processes
What are the 2 social components?
People & Structure
LETS TAKE A LOOK AT EACH OF THE 4 COMPONENTS
What is IT?
IT is defined here as hardware, software, and telecommunication equipment.
Why is the IT component important to modern IS?
The IT component is a cornerstone of any modern IS, enabling and constraining action through rules of operation that stem from its design.
What is a process?
The series of steps necessary to complete a business activity
What is the "people" component of an IS referring to?
The people component refers to those individuals or groups directly involved in the information system
What is the significance of people to an IS?
- People have their own set of skills, attitudes, preconceptions, and personal agendas that determine what they are able to do and what they will elect to do as part of the IS
- A genuine understanding of the people involved, including their skills, interests, and motivations, is necessary when designing and implementing a new IS or when troubleshooting an existing IS that is not performing as expected.
What is the structure component?
The organizational structure component (or "structure" for short) refers to the organizational design (hierarchy, decentralized, loose coupling); reporting (functional, divisional, matrix); and relationships (communication and reward mechanisms) within the information system
All 4 components are necessary to ensure that the information system is successful and delivers the functionality it was intended to provide
What is the notion of the interdependence of the components called?
The ability to limit waste and maximize the ratio of the output produced to the inputs consumed
The ability to achieve stated goals or objectives
What is an example of an IS goal?
For a large retail store (e.g., Walmart): To increase the efficiency and speed of customer checkout, perhaps using self-checkout stations.
An IS system should be built according to an explicit goal
What is firm strategy?
A firm's strategy represents the manner in which the organization intends to achieve its objectives
What is firm culture?
A firm's culture is the collection of beliefs, expectations, and values shared by the organization's members.
The ________ __________ encompasses regulation, the competitive landscape, and general business and social trends (e.g., outsourcing, customer self-service).
How is economic value created?
Economic value is created through a transformation process when some input resources that have a value of $x in their next best utilization are transformed into outputs for which customers are willing to pay $x + $v.
What are some examples of input resources?
Raw materials, labor, equity and debt capital, managerial talent, support services like transportation and storage, and so on
What is the output?
The output of the transformation process is the product and/or service that the firm engaging in the transformation process is seeking to sell and that a customer is interested in acquiring.
Supplier opportunity cost (SOC)
The minimum amount of money the suppliers are willing to accept to provide the firm with the needed resources.
Firm cost (FC)
Firm cost is the actual amount of money the firm disbursed to acquire the resources needed to create its product or service.
Customer willingness to pay (CWP)
The maximum amount of money the firm's customers are ready to spend to obtain the firm's product.
Total value created (TVC)
The transaction is computed as the difference between customer willingness to pay and supplier opportunity cost. TVC = CWP - SOC.
Refers to a benefit an entity gives up when they make an alternative decision
Value is in the eyes of the customer
The process by which the total value created in the transaction is split among all the entities who contributed to creating it (i.e., suppliers, the firm, and the customer).
What is a firms added value?
That portion of the total value created that would be lost if the firm did not take part in the exchange.
The condition where a firm engages in a unique transformation process and has been able to distinguish its offerings from those of competitors. When a firm has achieved a position of competitive advantage, it is able to make above average profits.
A revenue model where the firm's content or services are made available for free to attract a large audience. The firm monetizes by selling "access to its audience" to interested advertisers.
A field of computing concerned with superimposing an information layer on a real image, thus providing users with a simultaneous view of real objects and contextual information about those objects.
Brick and Mortar
A term used to refer to "traditional" organizations, those firms that have physical operations and don't provide their services through the Internet.
Bricks and Clicks
A term used to refer to organizations that have hybrid operations involving both physical and online operations.
A form of electronic commerce involving a business entity on both sides of the transaction.
A form of electronic commerce involving a for-profit organization on one side and the end consumer on the other side of the transaction.
A form of electronic commerce enabling individuals to transact with business organizations not as buyers of goods and services but as suppliers.
A form of electronic commerce enabling individual consumers to interact and transact directly.
A form of electronic commerce involving legislative and administrative institutions in the transaction.
The digital enablement of internal organizational business processes and operations.
The process of distributing, buying, selling, marketing, and servicing products and services over computer networks such as the Internet.
A revenue model where firms give away its product or service for free. The firm monetizes by offering premium services or enhanced versions of the product for a fee.
Internet of Things (IoT)
Interconnectivity of physical smart objects, sensors, or other devices, bringing the benefits of the Internet into the physical space.
Mobile commerce (or M-Commerce, mCommerce)
A term used to refer to the ability to complete commercial transactions using mobile devices, such as smartphones and tablets.
A platform is an underlying computer system on which application programs can run. With the term mobile platform, therefore, we refer to the hardware/operating systems combinations that enable mobile computing.
Pay for Service
A revenue model where firms offer a product or service for sale, and are compensated like a traditional store or service providers.
A term used to refer to organizations that have no physical stores and provide their services exclusively through the Internet.
Specifies how the firm intends to draw proceeds from its value proposition—in short, how it plans to make money.
A revenue model where customers pay based on access rather than usage. Customers pay for the right to access the content and can use as much of the service as they need.
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