MIS Ch. 3 – Flashcard
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organization
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a stable, formal social structure that takes resources from the environment and processes them to produce outputs
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routines
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are precise rules, procedures, and practices that have been developed to cope with virtually all expected situations
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disruptive technologies
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subsitute products that perform as well or better than anything currently being produced
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transaction cost theory
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firms and individuals seek to economize on transaction costs, much as they do on production costs
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agency theory
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the firm is viewed as a "nexus of contracts" among self-interested individuals rather than as a unified, profit-maximizing entity
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competitive forces model
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provides a general view of the firm, its competitors, and the firm's environment
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efficient customer response systems
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directly links consumer behavior to distribution and production and supply chains
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mass customization
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the ability to offer individually tailored products or services using the same production resources as mass production
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switching costs
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the cost of switching from one product to a competing product
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value chain model
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highlights specific activities in the business where competitive strategies can best be applied and where information systems are most likely to have a strategic impact
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primary activities
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most directly related to the production and distribution of the firm's products and services, which can create value for the customer
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support activities
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make the delivery of the primary activities possible and consist of organization infrastructure (admin and mgmt), HR (employee recruiting, hiring, trainging), technology (improving products and the production process), and procurement (purchasing input)
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benchmarking
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involves comparing the efficiency and effectiveness of your business processes against strict standards and then measuring performance against those standards
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best practices
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usually identified by consulting companies, research organizations, gov't agencies,and industry associations as the most successful solutions or problem-solving methods for consistently and effectively achieving a business objectives
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value web
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a collection of independent firms that use information technology to coordinate their value-chains to produce a product or service for a market collectively
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core competency
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an activity for which a firm is a world-class leader
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network economics
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the law of diminishing returns
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virtual company
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uses networks to link people, assets and ideas, enabling it to ally with other companies to create and distribute products and services without being limited by traditional organizational boundaries or physical location
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business ecosystem
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another term the loosely coupled but interdependent networks of suppliers, distributors, outsourcing firms, transportation, service firms, and technology manufacturers
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strategic transitions
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a movement between levels of sociotechnical systems
