106 terms

Information Systems Terms

from Managing and Using Information Systems textbook by Pearlson and Saunders
self-contained functional units
interrelated set of activities and tasks that turns inputs into outputs
business process reengineering (BPR)
radical way of transforming business processes
total quality management (TQM)
incremental way of transforming business processes
business process management (BPM) systems
systems that handle automated processes within and across organizations
enterprise systems
class of IT applications used to enable information flow within and between business processes
enterprise architecture
description of goals of an organization, how these goals are realized by business processes, and how these business processes can be better served through technology
the situation in which a company's current and emerging business strategy is enabled, supported, and unconstrained by technology
coordinated set of actions to fulfill objectives, purposes, and goals
clear and compelling statement of organization's purpose and what makes it unique
business strategy
plan of where a business seeks to go and how it plans to get there
cost leadership
strategy where organization aims to be the lowest-cost producer in the marketplace
competitive advantage
the unique set of features of a company and its products that are perceived by the target market as significant and superior to the competition
strategy where organization qualifies its product or service in a way that allows it to appear unique in the marketplace
strategy where organization limits its scope to a market segment and tailors its offerings to that group of customers using either cost or differentiation
shareholder value model
holds that the timing of the use of specialized knowledge can create a differentiation advantage as long as the knowledge remains unique
unlimited resources model
utilizes a large base of resources that allows organization to outlast competitors by practicing a differentiation strategy
suggests that speed and aggressiveness of the moves and countermoves create an environment in which advantages are rapidly created and eroded
D'aveni's model
speed and aggressive moves and coutermoves by a firm create competitive advantages
organizational strategy
includes organization's design and the choices it makes to define, set up, coordinate, and control its work processes
managerial levers
organizational, control, and cultural variables used by decision makers to effect changes in their organization
IS strategy
the plan an organization uses in providing information services
halo effect
the basic human tendency to make specific inferences on the basis of a general impression (EX: assuming that because a business is successful, it has good management-- ignoring other forces at work)
Porter's 5 Forces
threat of new entrants, bargaining power of buyers, threat of substitute products or services, bargaining power of suppliers, rivalry among existing competitors
customer relationship management (CRM)
activities designed to learn more about customers' needs and behaviors to develop stronger relationships with them and enhance their value chains
supply chain management (SCM)
improves the way a company finds raw components it needs to make a product or service, manufactures that product or service, and delivers it to customers
resource-based view
maintains that competitive advantage comes from the information resources of the firm; resources enable a firm to attain and sustain competitive advantage
strategic alliance
inter-organizational relationship that affords one or more companies in the relationship a strategic advantage
Ring and Van de Ven's stages of a strategic alliance
negotiation, commitment, execution, assessment
factors influencing value sustainability
ease of imitation, substitution, transfer
strategy where companies cooperate and compete at the same time with companies in its value net
value net
includes a company, its competitors, complementors, customers, suppliers
company who offers a complementary product (e.g. milk complements cereal)
business diamond
framework for understanding the design of an organization; links together business processes, values & beliefs, management control systems, and tasks & structures
data in context (i.e. with relevance and purpose)
Information Systems (IS)
technology, people, and processes that an organization uses to manage information
shared services
organizations restructure common business processes to consolidate services like IT, human resources, finance
enterprise resource planning
comprehensive software packages that incorporate all modules needed to run the operations of a business
Porter's Generic Strategies Framework
firms achieve competitive advantage through cost leadership, differentiation, or focus
service-oriented architecture
building components of software in a modular way; an architecture where business processes are built on a network, different parts of business functionality reside on different parts of the network, the parts can be combined and reused to create applications
layers of enterprise architecture
infrastructure, information, applications, processes, strategy
the open group architectural framework; designed to translate strategy into architecture and then into a detailed infrastructure using standardized Architecture Development Methodology
resource-based view vs. Porter's 5 Forces
resource-based focuses on internal factors in an organization,
Porter's five forces focuses on external factors in the industry
general process for developing IS
strategy --> architecture --> infrastructure
the business triangle
includes business, organizational, and information strategy; business strategy is at the top of the triangle because it guides the others
when business strategy changes
information and organizational strategy must also change
when information strategy changes
business strategy should not be affected because it is at a more abstract level
architecture where one software program (the client) requests and receives data and instructions from another software program (the server); computers running client programs usually require less computing resources
more specific sub-steps in process from strategy to architecture to infrastructure
strategy to goals to business requirements to architecture requirements to architecture to functional specifications to infrastructure specifications (hardware, software, data...)
six sigma
incremental approach to changing business processes (a management program that seeks to improve the quality of process outputs by identifying and removing the causes of defects and variation in the various processes.)
characteristics of a business process
inputs/outputs, tasks, decisions, metrics, "swim lanes"
two essential characteristics of a business process
inputs/outputs and tasks
more efficient processes have
fewer steps, fewer branches, fewer loops, and fewer decisions
difference between a process and a service
processes make services possible; processes have inputs and outputs, while service is a cycle (ongoing)
on a process flow diagram, a square represents a
on a process flow diagram, a diamond represents a
on a process flow diagram, a circle represents a
organizational change management
tries to minimize risks and maximize benefits of change in an organization
IS strategy triangle
relates business strategy with IS and organizational strategy; business strategy at the top, organizational and information strategy at the base
translates strategy into infrastructure, creating plans for the implementation
software program that requests and receives data and instructions from another
everything that supports the flow and processing of information in an organization, including hardware, software, data and network components
mainframe architecture
uses a large central computer that handles all the functionality of the system; common in legacy systems
configurations for IT architecture
mainframe, client/server, SOA, P2P, WOA
processes vs. functions
processes are horizontal across a corporation, many functional areas of the business will be involved in a process; functions are vertical silos in an organization (e.g. finance, operations, accounting, marketing, administration)
finance, operations, accounting, marketing, administration (functions or silos in a business)
information resources can either be..
assets or capabilities
information resources
includes data, technology, people, and processes
three major categories of IT capabilities
technical skills, IT management skills, relationship skills
value chain
highlights how IS add value to the primary and support activities of a firm's internal operations, customers, and supply chain
risks associated with using information systems to gain strategic advantage
awaking a sleeping giant, bad timing, poor implementation, failing to deliver what customers want, breaking the law
IT asset
anything that can be used by a firm in its processes for creating, producing, and/or offering its products
IT capability
something learned over time for the firm to create, produce, or offer its products
IT asset vs. capability
an IT capability makes it possible for the firm to use its IT assets effectively
network effects
the value of a network node to a person or organization in a network increases when others join the network
value chain framework
says competition stems from lowering the cost to perform activities and adding value so buyers will pay more
BPM (acronym)
business process management
ERP (acronym)
enterprise resource planning
SOA (acronym)
service-oriented architecture
CRM (acronym)
customer relationship management
SCM (acronym)
supply chain management
TQM (acronym)
total quality management
BPR (acronym)
business process re-engineering
when are business process management systems most useful?
when all the activities are in a predetermined order (not when steps vary in a process)
ES (abbreviation)
enterprise systems
the most frequently discussed type of enterprise system is...
... enterprise resource planning (ERP) software
what did enterprise systems replace?
software systems developed in the mid-90s which were not integrated across organizations and could not interface well with each other
what do ERPs help companies do?
manage fragmentation of information across an organization
most widely used enterprise system
R/3 (made by SAP)
ERPs make information available to...
all departments throughout a company
ERP II makes information available to...
external stakeholders
characteristics of enterprise systems
integration, packages, best practices, some assembly required, evolving
enterprise systems usually require...
long-term relationships with software vendors
why enterprise systems tie a company to a vendor
because they are complex and usually need continual modification to meet the organizations needs
best practices (characteristic of ES)
enterprise systems reflect industry best practices for generic business processes
enterprise systems need to be integrated with...
an organization's hardware, operating systems, databases, telecommunications, legacy systems
software used to connect processes in one or more computers across a network
major benefit of an enterprise system
allows functional areas of an organization to share information easily
enterprise systems are useful for this sort of organizational structure
centralization (because they focus on integration)
major disadvantage of an enterprise system
businesses have to conform to the system, sometimes have to redesign processes to fit system
disadvantages of enterprise system
for changes in organizational structure, expensive, risky
components of the high cost of enterprise systems
hardware, software, professional services, internal staff costs
WOA (acronym)
web-oriented architecture
P2P (acronym)
an end user will usually notice a reduction in the performance of a ______ before a _______
service, process
relationship between coopetition and strategic alliance
can have coopetition w/o strategic alliance, can have strategic alliance w/o coopetition