I S 300 – Flashcard
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What is IT?
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it is concerned with technology and other aspects of managing and processing information.
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What kind of resources does IT utilize?
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IT uses computers and computer software to convert, store, protect, process, transmit, and retrieve information
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computer professionals in a company are called
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IT specialists
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the division of a company that often deals with software technology is the
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IT department
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what is MIS (IS)
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a systems that collects and processes data for managers who use it for decision making, planning, program implementation, and control
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an information system is comprised of...
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all the components that collect, manipulate, disseminate data or information, usually including hardware, software, people, and communication systems
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the four roles of IS
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1. the functional support role 2. the decision support role 3. the strategic support role 4. the performance monitoring role
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Evolutionary View of IT
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Connection View: 1970 - 1995 IT as a tool Immersion View: 1991-2011 - IT as environment Fusion View: 2011-? - IT as Fabric
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ubiquitous computing
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information processing has been fully incorporated into activities that a person may not even notice that they are using several different types of technology at once
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using speech recognition software for customers
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there is speech recognition software used by businesses to better help and direct customers in the questions and transactions. Replaces some customer service costs. Companies make these computers look lifelike so that people feel more comfortable talking with them.
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how many internet users in the US
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245 million (78%)
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(-) How many emails sent in 2010
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107 trillion
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(-) how many Facebook users
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800 million
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(-) how many websites as on 2010
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255 million
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(-) most tweeted event was...
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osamas death
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(-) most followed tweeters
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lady gaga, justin bieber, katy perry
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the graph of total investment to IT investment ****
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shows that firms are giving priority investment to IT. As total investment is increasing, IT investment is increasing but and increasing in purportion of total capital investment (31% in 1980 and 52% in 2008)
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information systems are more than just computers...**
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you need to understand the organization, management and technology shaping the systems.
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the organizational dimension of IS consists of... (5) **
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1. People 2. Structure 3. business processes 4. culture 5. politicis
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the management dimension of IS - managers are...(5) **
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1. sense makers 2. decision makers 3. planners 4. innovators of new processes 5. leaders: set agendas
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the technology dimension of IS - components that help managers cope with change.. (5) **
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1. hardware 2. software 3. storage 4. communications technology 5. networks
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business and IT interdependence:
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limitations of IT often limit the business capabilities of a firm
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6 different strategic business objectives of IT **
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1. operations excellence (walmart) 2. new products and services (netflix) 3. customer and supplier intimacy (JCPenny) 4. improved decision making (verizon) 5. competitive advantage (dell) 6. survival (citibank & ATMs)
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What is the slope of Productivity v. IT scatter plot
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positive - higher IT capital stock yields more productivity
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(complimentary) organizational assets (4) **
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1. culture 2. business model 3. processes 4. IS development
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(complimentary) managerial assets (4) **
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1. management support 2. innovation 3. teamwork 4. training
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(complimentary) social assets (5) **
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1. society's investment 2. laws and regulations 3. internet 4. education 5. IT services
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Types of Business IS from different perspectives
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Functional Perspective: 1. Sales and marketing 2. Manufacturing and Production 3. Finance and Accounting 4. Human resources Constituency Perspective: 1. Transaction Processing (TPS) 2. Management Information (MIS) 3. Decision Support (DSS) 4. Executive Support (ESS)
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old chinese idiom
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to be good at everything is to be good at nothing
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IT connects... (5)
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1. factories 2. remote offices 3. business partners 4. suppliers 5. customers
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" intranet
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a internal computer network that brings together information from planning and scheduling, suppliers, procurement, logistics services, production, distributors, inventory, retailers, shipping, customers, order processing
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IT is allowing companies to...
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outsource to other countries due to more linked information with IT
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review boeing case
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...
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factors of Leavitt diamond
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"1. technology 2. people 3. task 4. structure
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" meaning of leavitt diamond
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you change one aspect of the organization, then you are going to change the way everything else operates. the four will adjust
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enterprise applications (4)
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"1. Enterprise resource planning 2. supply chain management 3. customer relationship management 4. knowledge management systems
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" enterprise resource planning
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it is a cross functional system that helps the basic internal processes of a company
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the traditional view of systems says that...
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the different business functions only communicate with their respective information systems
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the new enterprise system architecture says that...
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the different business functions (accounting, marketing, manufacturing, and human resources) all communicate with each other in a centralized database
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value of the enterprise system (3)
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"1. unifies the firms structure and organization 2. sharing of knowledge for management processes 3. more efficient operations
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" benefits of ERP (4)
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"1. quality and efficiency (customer service, production, and distribution 2. decrease costs (transaction costs, physical hardware costs) 3. decision support (cross functional information quickly to managers) 4. enterprise agility (breaks down departmental and functional walls to business
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" challenges of ERP (3)
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"1. difficult to build 2. technology 3. centralized organziational coordination and decision making
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" cost of ERP
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reengineering is the largest cost with equal amounts of hardware, software, training and change management, and data conversions
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supply chain management (SCM)
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an enterprise application that helps a business maintain relationships with its suppliers
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supply chain
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the movement of materials, goods, and money to and from suppliers to retailers. coordination speeds up this process.
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upstream supply chain
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to the firm
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downstream supply chain
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from the firm
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key supply chain management processes (5)
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"1. plan 2. source 3. make 4. deliver 5. return
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" functions of SCM systems (8)
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"1. decide when to produce, store 2. communicate orders 3. track status of orders 4. check inventory availability 5. reduce inventory cost 6. track shipments 7. plan production based on demand 8. communicate changes in product design
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" push based model for supply chains
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"production based on forecasts and products are pushed to customers -customers buy what is on the shelves
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" pull based model for supply chains
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"driven by actual orders from customers -customers order the product
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" supply chain management systems (different than supply chain management)
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automate flow of information between company and suppliers
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supply chain planning systems
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generate demand forecasts for a product, and help develop sourcing and manufacturing plans for product
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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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measurements for supply chain management
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"1. fill rate (the ability to fulfill the orders by the due date) 2. avg time from order to delivery 3. the number of days of supply in inventory 4. forecast accuracy 5. the cycle time for sourcing and making a product
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" benefits of SCM system
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"1. close linkage 2. integrate linkage time 3. helps in procurement of materials, 4. helps in distribution of product 5. reversed logistics
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" 2 challenges and opportunities with IT and customers
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"1. more empowered customers (consumer vigilantes) 2. more involved customers (starbucks customer buzz)
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" Customer Relationship Management (CRM) System
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helps a firm manage relationships with their customers
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in regards to customers, it is much cheaper to...
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retain customers than to find new customers
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sales and customer relations is the responsibility of...
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the entire company
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company's need to shift from a transaction based business model to a...
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service based business model
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customer centricity
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maximize value of every customer interaction
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CRM Tasks
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"1. manages methods for dealing with new and old customers 2. end to end customer care 3. unified view of customer care 4. consolidates customer data 5. distribute results to various systems 6. decide touch points
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" touch points
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how are you going to reach your customer? telephone, email, desk, mail, website, store
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good touch points
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"1. new products found for consumers 2. customized website 3. promotions to right customers
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" bad touch points
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"1. junk email 2. spam 3. telemarketers
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" the ways the crm supports marketing
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most is by telephone and direct mail. followed by web and email. and last cell phone and text message.
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CRM is concerned with these three departments...
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"1. Marketing 2. Sales 3. Service
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" Partner Relationship Management (PRM)
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automation of the firms relationship with selling partners using customer data and analytical tools to improve coordination and customer sales
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Operations CRM
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customer facing applications, such as sales force automation, call center and customer care support, and marketing automation
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analytical CRM
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applications that analyze customer data generated by operational CRM applications to provide information for improving business performance
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benefits of CRM (6)
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"1. increased customer satisfaction 2. more effective marketing and reduced direct marketing costs 3. lower cost for customer retention and acquisition 4. increased revenue for recognizing most profitable customers and segments for marketing, up selling, cross selling 5. Reduce churn rate 6. realizing customer lifetime value
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" CRM measurement of performance
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"1. cost per lead 2. cost per sale 3. number of repeat customers 4. churn rate 5. sales closing rate
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" review MLB example
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...
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ecommerce has been (growing or decreasing)
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growing since 1995 at an exponential rate
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ubiquity and ecommerce
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you can now buy from anywhere
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global reach and ecommerce
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you can now reach customers from all over the world
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universal standards and ecommerce
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can now communicate across the world
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increases richness and ecommerce
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depth of information is increased by the internet
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interactivity and ecommerce
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you can interact more with your customers
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information density and ecommerce
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reduces the cost of information
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peronsalization and ecommerce
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can personalize information to your consumer
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social technology
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user generated content
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study digital market vs traditional market chart
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...
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profits =
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revenues - fixed costs - variable costs
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4 revenue options
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"1. commerce (product sales, commissions) 2. content (subscriptions, document fees, registration fees) 3. community (advertising fees, referral fees, membership fees) 4. infrastructure (software sales/licence, hosting/access fees)
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" 8 internet business models
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"1. virtual storefront (amazon) 2. information broker (edmunds) 3. transaction broker (etrade, expedia) 4. online marketplace (eBay, craigslist) 5. content provider (wsj, espn.com) 6. online service provider (google, paypal) 7. social network (myspace, Facebook) 8. portal (yahoo, msn)
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" practice the different types of internet business models
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...
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6 electronic payment systems
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"1. credit cards 2. digital wallets (google wallet) 3. accumulated balance (telephone bills 4. stored value (husky cards) 5. digital checking (electronic checks with digital signatures) 6. electronic billing presentment and payment (paying bills online)
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" virtual storefront
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sells goods or services online
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information broker
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provides information on products or services
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transaction broker
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provides online transaction facility
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online marketplace
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provides a trading platform for individuals and firms
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content provider
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creates revenue by providing content
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online search provider
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provides online services, including search service
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social network
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provides an online community to focused groups
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portal
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provides initial point of entry to web, specialized content, services
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digital wallets
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electronic storage of ID and digital cash
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accumulated cash
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used for micro payments
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stored value
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prepayment of funds, debited for use
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digital checking
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electronic checks with digital signatures
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electronic billing presentment and payment
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used by consumers to pay bills online
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properties of information (digital) goods (4)
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"1. information based 2. big fixed costs 3. small variable cost 4. easy versioning and pricing
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" comparison of digital vs. traditional goods review
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...
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what is versioning
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many variations of essentially the same good
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the purpose of versioning
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capture the most consumer surplus as possible. discriminate on price
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versioning is easier among (traditional or information)
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information goods
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extreme aversion
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in a two version scenario, consumers are more afraid to by extreme versions of a product. if they buy the low end one, then they are afraid that they won't get enough, and if they buy the high end one, then they are afraid they are spending too much. consumers typically buy in the middle
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value subtracted version
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some businesses first build the full product and the it costs more money to make a worse version
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prices online are less than or greater than a conventional store?
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less than
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menu cost online is less than or greater than a conventional store
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less than
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price dispersion is less than or greater than a conventional store?
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greater than
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advantages of regular shopping
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"1. affective processing vs. cognitive faculties 2. transaction costs: visible vs. invisible 3. delayed gratification: high and low
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" visible vs. invisible transaction costs
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...
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review cost transparency
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with the internet, consumers are able to find information about how much it costs to produce products and use that to make smart purchases
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zara business model
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sell up to date fashion clothing. right off the run way within six weeks for super cheap. high turnover rate of product so that they are always up to date
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merchandise in each sara store is decided by
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the managers of each store, they know the trends in their areas and what will and won't sell
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zara and advertising
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almost zero advertising
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design of sara stores were decided by
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corporate
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sara prices were set by
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product managers
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ordering in zara is done by
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manually looking to see how much merchandise there is an placing orders twice a week
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zara typically came out with 11,000 new items in a year vs traditional store with...
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2-4,000
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the IT for Zara was...
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behind the times
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VLCT definition
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a plane with over 400 seats or 80 tons of freight
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the first VLCT was the
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boeing 747
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boeing believed that the VLCT would be used for...
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point to point flights
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airbus believed that the VLCT would be used for...
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major hub to hub flights
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boeing small plane
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737
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boeing medium planes
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757, 767
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boeing big plane
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747
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boeing's high technology international plane
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777
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which countries are involved with Airbus
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Geremany, France, Spain, Britain,
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airbus' first plane
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A300
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airbus' small planes
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A320, A321
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Airbus' longer range planes
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A330, A340
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boeing and airbus were upset with each other because
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they accused the other for getting subsidies from their respective governments (cheating)
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mystarbucks idea
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a way for consumers to influence how starbucks (and other businesses) operate
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starbucks is telling its employees to...
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slow down
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consumer vigilantes
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consumers using technology to take matters into their own hands
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amazon's new store: utility computing
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selling server space based on usage
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transaction processing system (TPS)
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performs and records the daily routine transactions necessary to conduct business 1. Order Processing System (order file) 2. Materials resource Planning System (production master file) 3. General Ledger (accounting file)
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management information systems (MIS)
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provides reports on the organizations current performance 1. order -> sales data 2. production -> Unit product cost data & product change data 3. accounting -> expense data
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decision support systems (DSS)
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support nonroutine decision making for middle management (includes costs, history, restrictions, speed, etc.)
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executive support system (ESS)
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help senior management make these decisions. includes internal and external data focused at workstations or portals
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bullwhip effect in supply chain management
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information about the demand for a product gets distorted as it passes from one entity to the next across the supply chain
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e-business
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refers to the use of digital technology and the internet to execute the major business processes in the enterprise
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e-commerce
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deals with the buying and selling got goods and services over the internet
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just in time strategy in supply chain management
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components would arrive exactly at the moment they were needed and finished goods would be shipped as they left the assembly line
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cross-selling
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the marketing of complementary products to customers
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customer lifetime value (CLTV)
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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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churn rate
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measures the number of customers who stop using or purchasing products or services from a company
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transaction costs
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the costs of participation in a market: on the internet you don't need to spend time or money traveling to a market and much less mental effort is required to make a purchase
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market entry costs
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the cost merchants must pay simply to bring their goods to market
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search costs
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the effort required to find suitable products
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information density and ecommerce
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the total amount and quality of information available to all market participants, consumers, and merchants alike
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price transparency
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refers to the ease with which consumers can find out the variety of prices in a market
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cost transparency
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refers to the ability of consumer to discover the actual costs merchants pay for products
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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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information asymmetry
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exists when one party in a transaction has more information that is important for the transition than the other party
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Major Types of Information Systems and their placement in the pyramid **
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Sales and Marketing 1. TPS - Operational Level = Order Processing 2. DSS & MIS - Management Level = Sales Management & Sales Region Analysis 3. ESS - Strategic Level = 5-Year Sales Trend Manufacturing and Production 1. TPS - Operational Level = Material Movement Control 2. DSS & MIS - Management Level = Inventory Control and Production Scheduling 3. ESS - Strategic Level = 5-Year Operating Plan Finance and Accounting 1. TPS - Operational Level =Payroll, Accounts Payable 2. DSS & MIS - Management Level =Annual Budgeting & Profit Analysis 3. ESS - Strategic Level =Profit Planning Human Resources 1. TPS - Operational Level = Employee Record keeping 2. DSS & MIS - Management Level = Relocation Cost Control & Contract Cost Analysis 3. ESS - Strategic Level = Personal Planning
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Four Major Business Functions/Systems **
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1. Sales and Marketing (system) 2. Manufacturing and Production (System) 3. Finance and Accounting (system) 4. Human Resources (system)
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Order Tracking System
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keeps track of orders
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Order Fulfillment System
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allows a process of going from sales to accounting to manufacturing and production
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Timing System Terminal
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i dunno
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Order Processing Systems
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?
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Constituency Perspective of IS Categories **
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1. Operational Level - support operational managers, keeping track of elementary activities and transactions 2. Management Level - serve the monitoring, controlling, decision-making and administrative activities 3. Strategic Level - help senior management tackle and address strategic issues
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Self-order processing
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?
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Self check-in Kiosks
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Competitive advantage
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Order Fulfillment Process
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Sales: Generate order -> order submit -> Accounting: check credit -> approve credit ->*generate invoice Manufacturing and Production: *Assemble Product -> Ship product
