chapters 8, 9,10 essentials of management information systems – Flashcards
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Customer lifetime value CLTV
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is based on the relationship between the revenue produced by a specific customer, that expenses incurred in acquiring and servicing that customer, and the expected life of the relationship between the customer and company.
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demand planning
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determines how much product a business needs to make to satisfy all of its customers' demands
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Employee Relationship Management ERM
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software module that deals with employee issues that are closely related to CRM, such as setting objectives, employee performance management, performance based compensation, and employee training
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Enterprise software
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is built around thousands of predefined business processes that reflect best practices.
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Just-in-time strategy
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if a manufacturer had perfect information about exactly how many units of product customers wanted, when they wanted them, and when they could be produced, it would be possible to implement a highly efficient just-in-time strategy
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Operational CRM
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includes customer-facing applications, such as tools for sales force automation, call center and customer service support, and marketing automation
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Partner Relationship Management PRM
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uses many of the same data, tools, and systems as customer relationship management to enhance collaboration between a company and its selling partners. If a company does not sell directly to customers but rather works through distributors or retailers, PRM helps these channels sell to customers directly
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Pull-based model
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also known as a demand driven or build-to-order model, actual customer orders or purchases trigger events in the supply chain
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Push-based model
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production master schedules are based on forecasts or best guesses of demand for products, and products are pushed to customers
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Social CRM
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tools that enable a business to connect customer conversations and relationships from social networking sites to CRM processes
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Supply Chain
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is a network of organizations and business processes for procuring raw materials, transforming these materials into intermediate and finished products, and distributing the finished products to customers
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Supply Chain Execution Systems
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manage the flow of products through distribution centers and warehouses to ensure that products are delivered to the right locations in the most efficient manner
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Supply Chain Planning Systems
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enables the firm to model its existing supply chain, generate demand forecasts for products, and develop optimal sourcing and manufacturing plans
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Touch point is a method of interaction with the customer, such as telephone, e-mail, customer service desk, conventional mail, FB, Twitter, Web site, wireless device, or retail store
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- Based on data warehouses populated by operational CRM systems and customer touch points - Analyzes customer data (OLAP, data mining, etc.) Customer lifetime value (CLTV) Analytical CRM
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Bullwhip effect
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Information about product demand gets distorted as it passes from one entity to next across supply chain
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Just-in-time strategy
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- Components arrive as they are needed - Finished goods shipped after leaving assembly line
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Make applications more flexible,
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Web-enabled, integrated with other systems
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Optimize sourcing, manufacturing plans are what kind of systems?
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Supply chain planning systems 2
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Partner relationship management (PRM)
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Integrating lead generation, pricing, promotions, order configurations, and availability, Tools to assess partners' performances
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Pull-based model ___________ model (demand-driven)
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Web-based& Customer orders trigger events in supply chain
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Push-based model ____________ model aka Bulid-to-stock- Earlier
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SCM systems& Schedules based on best guesses of demand
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Social CRM
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1. Incorporating social networking technologies 2. Company social networks 3. Customer interaction via Facebook
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Supply chain execution systems
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Manage flow of products through distribution centers and warehouses
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Supply Chain Network of organizations and processes for:
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Procuring materials, transforming them into products, and distributing the products
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To implement, firms Select
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functions of system they wish to use. Map business processes to software processes. Use software's configuration tables for customizing.
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Upstream supply chain:
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Firm's suppliers, suppliers' suppliers, processes for managing relationships with them
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What are 3 Global supply chain issues?
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1) Greater geographical distances 2) Greater time differences 3) Participants from different countries: (Different performance standards & Different legal requirements)
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What are some Business value of SCM systems?
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1. Match supply to demand; reduce inventory levels 2. Improve delivery service, Use assets more effectively
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6. Increase _________ Business value of SCM systems5. Reduced supply chain costs lead to increased profitability-->Total supply chain costs can be 75% of operating
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Increase sales
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What are some Enterprise application challenges?
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Business process changes Organizational learning, changes
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What are some Enterprise application challenges?
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Switching costs, dependence on software vendors Data standardization, management, cleansing
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advertising revenue model
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Web site generating revenue by attracting a large audience
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affiliate revenue model
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an e-commerce revenue model in which Web sites are paid as "affiliates" for sending their visitors to other sites in return for a referral fee
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behavioral targeting
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tracking the click-streams (history of clicking behavior) of individuals across multiple Web sites for the purpose of understanding their interests and intentions, and exposing them to advertisements which are uniquely suited to their interests
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business-to-business (B2B)
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electronic commerce electronic sales of goods and services among businesses
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business-to-customer (B2C)
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electronic commerce electronic retailing of products and services directly to individual consumers
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co-location
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a kind of Web site hosting in which firms purchase or rent a physical server computer at a hosting company's location in order to operate a Web site
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community provider
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a Web site business model that creates a digital online environment where people with similar interests can transact (buy and sell goods); share interests, photos, videos; communicate with like-minded people; receive interest-related information; and even play out fantasies by adopting online personalities called avatars
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consumer-to-consumer (C2C)
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electronic commerce consumers selling goods and services electronically to other consumers
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cost transparency
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the ability of consumers to discover the actual costs merchants pay for products
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crowdsourcing
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using large Internet audiences for advice, market feedback, new ideas and solutions to business problems; related to the "wisdom of crowds" theory
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customization
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the modification of a software package to meet an organization's unique requirements without destroying the package software's integrity
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digital goods
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goods that can be delivered over a digital network
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disintermediation
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the removal of organizations or business process layers responsible for certain intermediary steps in a value chain
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dynamic pricing
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pricing of items based on real-time interactions between buyers and sellers that determine what an item is worth at any particular moment
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electronic data interchange (EDI)
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the direct computer-to-computer exchange between two organizations of standard business transactions, such as orders, shipment instructions, or payments
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e-tailer
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online retail stores from the giant Amazon to tiny local stores that have Web sites where retail goods are sold
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exchange third-party Net
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marketplace that is primarily transaction oriented and that connects many buyers and suppliers for spot purchasing
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free/fremium revenue model
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an e-commerce revenue model in which a firm offers basic services or content for free, while charging a premium for advanced or high value features
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geoadvertising
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delivering ads to users based on their GPS location
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geoinformation services
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information on local places and things based on the GPS position of the user
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geosocial services
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social networking based on the GPS location of users
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information asymmetry
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situation where the relative bargaining power of two parties in a transaction is determined by one party in the transaction possessing more information essential to the transaction than the other party
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information density
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the total amount and quality of information available to all market participants, consumers, and merchants
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intellectual property
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intangible property created by individuals or corporations that is subject to protections under trade secret, copyright, and patent law
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location-based services
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GPS map services available on smartphones
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long tail marketing
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refers to the ability of firms to profitably market goods to very small online audiences, largely because of the lower costs of reaching very small market segments (people who fall into the long tail ends of a Bell curve)
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market creator
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an e-commerce business model in which firms provide a digital online environment where buyers and sellers can meet, search for products, and engage in transactions
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market entry costs
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the costs merchants must pay to bring their goods to market
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marketspace
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a marketplace extended beyond traditional boundaries and removed from a temporal and geographic location
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menu costs
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merchants' costs of changing prices
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micropayment
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payment for a very small sum of money, often less than $10
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mobile commerce (m-commerce)
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the use of wireless devices, such as cell phones or handheld information appliances, to conduct both business-to-consumer and business-to-business e-commerce transactions over the Internet
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net marketplace
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a single digital marketplace based on Internet technology linking many buyers to many sellers
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personalization
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ability of merchants to target marketing messages to specific individuals by adjusting the message for a person's name, interests, and past purchases
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podcasting
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publishing audio broadcasts via the Internet so that subscribing users can download audio files onto their personal computers or portable music players
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prediction markets
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an analysis of the portfolio of potential applications within a firm to determine the risks and benefits, and to select among alternatives for information systems
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price discrimination
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selling the same goods, or nearly the same goods, to different targeted groups at different prices
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price transparency
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the ease with which consumers can find out the variety of prices in a market
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private exchange
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another term for a private industrial network
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private industrial networks
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Web-enabled networks linking systems of multiple firms in an industry for the coordination of trans-organizational business processes
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revenue model
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a description of how a firm will earn revenue, generate profits, and produce a return on investment
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richness
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measurement of the depth and detail of information that a business can supply to the consumer as well as information the business collects about the customer
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sales revenue model
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selling goods, information, or services to customers as the main source of revenue for a company
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search costs
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the time and money spent locating a suitable product and determining the best price for that product
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social graph
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map of all significant online social relationships, comparable to a social network describing offline relationships
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social shopping
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use of Web site featuring user-created Web pages to share knowledge about items of interest to other shoppers
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streaming
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a publishing method for music and video files that flows a continuous stream of content to a user's device without being stores locally on the device
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subscription revenue model
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Web site charging a subscription fee for access to some or all of its content or services on an ongoing basis
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transaction costs
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costs incurred when a firm buys on the marketplace what it cannot make itself
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transaction fee revenue model
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an online e-commerce revenue model where the firm receives a fee for enabling or executing transactions
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wisdom of crowds
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the belief that large numbers of people can make better decisions about a wide range of topics or products than a single person or even a small committee or experts (first proposed in a book by James Surowiecki)
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What are the three types of decisions?
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- Unstructured - Structured - Semistructured
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Unstructured decisions
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Decisions made at the a senior management level; nonroutine and no well-understood procedure on making them
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Structured decisions
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Decisions made at the operational management level; repetitive and routine
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Semistructured decisions
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Decisions made at the middle management level; parts of the issues are understand handled using accepted procedures
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What are the four stages of decision making?
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1. Intelligence 2. Design 3. Choice 4. Implemation
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High velocity decision making
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The intelligence, design, choice, and implementation parts of the decision-making process are captured by computer algorithms that precisely define the steps to be followed to produce a decision.
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What are the qualities of decisions and the decision-making process?
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- Accuracy - Comprehensiveness - Fairness - Speed (efficiency) - Coherence - Due process
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Accuracy
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Decision reflects reality
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Comprehensiveness
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Decision reflects a full consideration of the facts and circumstances.
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Fairness
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Decision faithfully reflects the concerns and interests of the affected parties.
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Speed (efficiency) Decision
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making is efficient with respect to time and other resources including the time and resources of customers.
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Coherence Decision
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reflects a rational process that can be explained to others
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Due Process Decision
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is the result of a known process and it can be appealed to a higher authority.
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Business intelligence and analyticics
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Promises to deliver correct, nearly real-time information to decision makers, and the analytical tools help them quickly understand the information and take action
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What are some of the types of production reports?
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- Sales - Service/Call center - Marketing - Procurement and Support - Supply chain - Financials - Human resources
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Parameterized reports
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Users enter several parameters as in a pivot table to filter data and indicate impacts of parameters
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Dashboards/Scorecards
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Visual tools for presenting performance data defined by users
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Ad hoc query/Report creation
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Allows users to create their own reports based on queries and searches
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Drill down
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The ability to move from a high level summary to a more detailed view
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Forecasts, scenarios, models
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These include capabilities for linear forecasting, "what if" scenario analysis, and analyzing data using standard statistical tools
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What are the two tools used to support for semistructured decisions?
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- Sensitivity analysis - Pivot table
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Sensitivity analysis
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Is a model that ask what-if questions repeatedly to predict a range of outcomes when one or more variables are changed multiple times
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Pivot tables
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"super user" managers and analysts employ to identify and understand patterns in business information that may be useful for semistructured decision making.
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Balanced scorecard method
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A framework for operationalizing a firm's strategic plan by focusing on measurable outcomes on four dimensions of firm's performance: business process, customer, learning, and growth. Also is currently the leading methodology for understanding the most important information needed by a firm's executives.
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Key Performance Indicators (KPIs)
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The measures proposed by senior management for understanding how well the firm is performing along any given dimesnions
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Business Performance Management (BPM)
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Attempts to systematically translate a firm's strategies into operational targets. Once implemented, the firm's performance is measured with information drawn from the firm's enterprise database systems.
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Drill-down capabilities
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Displays details of summary-level information by allowing the pointing and clicking on a specific data field for which the user desires an additional level of detail
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Group Decision-Support System (GDSS)
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Is an interactive computer-based system for facilitating the solution of unstructured problems by a set of decision makers working together as a group in the same location or in in different locations.
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What are the characteristics of GDSS?
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Follow structured methods for organizing and evaluating ideas and for preserving the results of meetings, enabling non-attenders to locate information after the meeting.
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What are the 6 intelligent techniques used for intelligent systems for decision support?
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- Expert systems - Case-based reasoning - Genetic algorithms - Neutral networks - Fuzzy logic - Intelligent agents
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Expert systems Knowledge
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-intensive computer program that captures the expertise of a human in limited domains of knowledge
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Case-based
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reasoning Artificial intelligence technology that represents knowledge as a database of cases and solutions.
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Genetic algorithms
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Problem-solving methods that promote the evolution of solutions to specific problems using the model of living organisms adapting to their environment.
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Neural networks
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Hardware or software that attempts to emulate the processing patterns of the biological brain
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Fuzzy Logic Rule-based artificial intelligence technology
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that tolerates imprecision by using nonspecific terms called membership functions to solve problems.
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Intelligent Agents Software program
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that uses a built-in- or learned knowledge base to carry out specific, repetitive, and predictable task for an individual user, business process, or software application.
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Knowledge management
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The set of processes developed in an organization to create, gather, store, maintain, and disseminate the firm's knowledge.
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Tactic knowledge
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Expertise and experience of organizational member that has not been formally documented.
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Structured knowledge
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Knowledge in the form of structured documents and reports
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What are the types of knowledgeable management systems?
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- Enterprise content management systems - Knowledge network systems - Knowledge work systems - Digital asset management systems - Learning management system
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Enterprise content management (ECM) systems
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Help organizations manage structured and semistructured knowledge, providing corporate repositories of documents, reports, presentations, and best practices and capabilities for collecting and organizing e-mail and graphic objects.
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Knowledge network systems
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Online directory for locating corporate experts in well- defined knowledge domains
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Knowledge Work Systems (KWS)
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Specialized systems built for engineers, scientists, and other knowledge workers charged with discovering and creating new knowledge for a company.
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Digital asset management systems
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Classify, store, and distribute digital objects such as photographs, graph images, video, and audio
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Learning management system
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Tools for the management, delivery, tracking, and assessment of various types of employee learning
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What are the examples of knowledge work systems?
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- Virtual Reality Systems (VRS) - Augmented Reality (AR) - Virtual Reality Modeling Language (VRML)
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Virtual Reality Systems (VRS)
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Interactive graphics software and hardware that create computer-generated simulations that provide sensations that emulate real-world activities
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Augmented Reality (AR)
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Technology for enhancing visualization that provides a live view of a physical world environment whose elements are augmented by virtual computer-generated imagery
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Virtual Reality Modeling Language (VRML)
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A set of specifications for interactive three-dimensional modeling on the World Wide Web
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A suite of integrated software modules for finance and accounting, human resources, manufacturing and production, and sales and marketing that allows data to be used by multiple functions and business processes best describes:
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ERP systems.
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Enterprise software (or Enterprise system) is built around thousands of predefined business processes that reflect:
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best practices.
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In order to achieve maximum benefit from an enterprise software package, a business:
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changes the way it works to match the software's business processes.
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You have been asked to implement enterprise software for a manufacturer of kitchen appliances. What is the first step you should take?
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Select the functions of the system you wish to use.
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A network of organizations and business processes for procuring raw materials, transforming these materials into intermediate and finished products, and distributing the finished products to customers is called a:
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supply chain.
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A distortion of information about the demand for a product as it passes from one entity to the next across the supply chain is called the ________ effect.
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bullwhip
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Which of the following enable a firm to generate demand forecasts for a product?
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supply chain planning systems
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Supply chain ________ systems manage the flow of products through distribution centers and warehouses to ensure that products are delivered to the right locations in the most efficient manner.
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execution
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In which of the following does an actual customer order or purchase trigger events in the supply chain?
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pull?based supply model
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The business value of an effective supply chain management system includes all of the following except:
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increased inventory levels.
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Selling a customer with a checking account a home improvement loan is an example of:
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cross?selling.
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A comprehensive customer relationship management package includes a module for
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partner relationship management (PRM) system
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Which metric is based on the relationship between the revenue produced by a specific customer, the expenses incurred in acquiring and servicing that customer, and the expected life of the relationship between the customer and the company
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Customer Lifetime Value (CLTV)
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Analyzing customer buying patterns is an example of:
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analytical CRM.
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A company's suppliers, supplier's suppliers, and the processes for managing relationships with them is the:
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upstream portion of the supply chain.
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Customer relationship management applications dealing with the analysis of customer data to provide information for improving business performance best describes ________ applications.
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analytical CRM
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________ modules in CRM systems help sales staff increase their productivity by focusing sales efforts on the most profitable customers, those who are good candidates for sales and services.
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SFA
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Enterprise application vendors are now including ________ features, such as tools for datavisualization, flexible reporting, and ad hoc analysis, as part of the application.
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business intelligence
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