question

data, information, and knowledge

answer

composition of making better decisions

question

why companies compete on analytics

answer

1. numerous companies in making industries offer similar products and use comparable technologies 2. business processes are among the last remaining points of differentiation

question

how business analytics fuel fact based decision making

answer

companies that use analytics know what products are bought, who buys them, what price each customer pays, how many items a customer will likely purchase in a lifetime, what motivates each customer to purchase, and which incentives to offer to increase the revenue from each sale

question

the five ways big data and analytics can help an organization

answer

1. making information more transparent/usable that is faster than competition 2. expose variability and boost performance 3. be more precise 4. experiment, forecasting and feedback, and just-in-time analysis 5. developing next generation products faster

question

business intelligence

answer

this is used for strategic, tactical, and operational decisions and allows access to real time information and provide dynamically created reports that combine streaming data; it provides expectations, alerts, and notifications

question

social media analytics

answer

managers have seen a rise in the interest in using social media information technologies that can be attributed to the increase in the number and ways to measure value gained from the invested time and resources; this set of tools addresses this opportunity. The goal of this is to measure the impact of social information IT investments on a business. i.e. what does the number of click throughs on a website tell a manager?

question

sentiment analysis

answer

the uses algorithms to analyze text to extract subjective information such as emotional statements, preferences, likes/dislikes, etc. This helps answer questions such as what do our customers think about our position on this issue? How well received is our latest marketing campaign? What is our costumers experience with this problem? -this can be used to scrutinize conversations reports, e mails, blogs, tweets, fb posts, etc.

question

what platforms with social media analysis tools enable

answer

-listening to the community -learning who is in the community -engaging people in the community -tracking what is being said -building an audience

question

google analytics

answer

a set of analytic tools that enable organizations to analyze traffic coming, going, and on their website

question

features of the google analytics

answer

-website testing and optimizing (understanding the traffic) -search optimization (how its site is organized, how its site is linked to other organizations, and how specific queries drive traffic to the organizations site) -search term interest and insights -advertising support and management

question

intellectual capital

answer

knowledge that has been identified, captured, and leveraged to produce higher value goods or services or some other competitive advantage for a firm; this process adopts knowledge management technologies

question

intelectual property

answer

individuals can own their information-based ideas in the same way they own their physical property-this is the term used to describe these creative and innovative information-based outputs

question

the differences between physical property and intellectual property

answer

1. information based property in non-exclusive to the extent that when one person uses it, another person can use it without degradation or loss of quality i.e. downloading a music file does not hurt the quality of the music 2. the marginal cost of producing additional copies of information-based property is negligible compared with the cost of original production

question

the four main types of intellectual property protections

answer

patents for inventions, trademarks for brand identity, designs for product appearance, and copy rights for literary and artistic material, music, films, sound recordings, broadcasts, and software

question

electronic commerce (e commerce)

answer

this describes the process of buying, selling, transferring, or exchanging products, services, or information via computer networks, including the internet; its impact is so pervasive that its affecting almost everyday modern organizations

question

ways that e-commerce influences organizations

answer

1. it increases an organizations reach, defined as the number of potential customers to whom the company can market its products. Companies can now expand world wide at a small cost, to increase market share, and to reduce costs and it allows for small companies to be able to compete in market spaces that formerly were determined by larger companies. 2. It removes many of the barriers that previously impeded entrepreneurs seeking to start their own businesses. 3. It is fundamentally transforming the nature of competition through the diversity of ec-related products and services

question

reasons for employing wesbites

answer

-to sell goods and services -to induce people to visit a physical location -to reduce operational and transactional costs -to enhance your reputation

question

electronic business (e-business)

answer

in addition to the buying and selling of goods and services, this refers to serving customers, collaborations with business partners, and performing electronic transactions within an organization

question

degree of digitization

answer

the extent to which the commerce has been transformed from physical to digital (e-commerce can take on several items depending on this). This concept can relate to both the product or service being sold and the delivery agent or intermediary; the product can be either physical or digital and the delivery agent can also be physical or digital

question

physical

answer

in traditional commerce both dimensions are

question

brick-and0mortar organizations

answer

purely physical organizations in pure EC, all dimensions are physical

question

virtual organizations

answer

companies engaged only in electronic commerce

question

partial EC

answer

all other combinations that include a mix of digital and physical dimensions i.e. purchasing a new book from Amazon

question

clicks-and-mortar organizations

answer

these conduct some e-commerce activities, yet their primary business is carried out into the physical world; a type of partial EC i.e. purchasing a shirt at at Walmarts website or a book from amazon because it is bought online but delivered physically

question

electronic

answer

we use the term _______ commerce to denote both pure and partial EC

question

business-to-consumer electronic commerce (B2C)

answer

the sellers are organizations and the buyers are individuals

question

business-to-business electronic commerce (B2B)

answer

both the sellers and the buyers are business organizations. It compromises the vas majority of Electronic Commerce volume.

question

consumer-to-consumer electronic commerce (C2C)

answer

an individual sells products or services to other individuals like auctions and classified ads i.e. craigslist

question

internet based classified ads advantage over traditional classified ads

answer

they provide access to international audiences rather than a local audience. The volume of expanded geographical terrain depends greatly on what is being bought or sold i.e. you might buy software from a company located 1000 miles away but you wouldn't buy wood from a vendor 1000 miles away

question

business-to-employee (B2E)

answer

an organization uses to internally provide information and services to employees i.e. companies allow employees to manage their benefits and to take training classes electronically, employees can buy discounted insurance, travel packages, and tickets to events on the corp intranet, and could receive discounted items

question

e-government (G2C)

answer

the use of the internet technology in general and e commerce in particular to deliver information and public services to citizens and to business partners and suppliers. This is a lot like B2B, usually with an overlay of government procurement regulations. It is conceptually similar to B2B but conceptually different from anything that exists in the private sector -it is an efficient way to conduct business transactions with citizens and businesses within the government themselves -it makes the government more efficient and effective, especially in the delivery of public services -i.e. electronic benefit transfers such as social security and pension payments

question

mobile commerce (m-commerce)

answer

this refers to e-commerce that is conducted entirely in a wireless environment i.e. using my cell phone to shop online

question

business model

answer

the method by which a company generates revenue to sustain itself

question

the major e-commerce mechanisms

answer

electronic catalogs, electronic auctions, e-store fronts, e-mails, e-market place

question

electronic catalogs

answer

product database, a directory and search capabilities and a presentation function

question

auction

answer

a competitive buying and selling process in which prices are determined dynamically by competitive bidding

question

electronic auctions

answer

this type of auctioning generally increases revenue for sellers by broadening the customer base and shortening the cycle of time of the auction (buyers usually benefit from this because they can bargain for lower prices and can do it from home)

question

forward and reverse auctions

answer

the two major types of auctions

question

forward auctions

answer

sellers solicit bids from potential buyers. Sellers place items on sites for auction and buyers bid continuously from them, and the highest bidder wins the item i.e eBay

question

reverse auction

answer

one buyer, usually an organization, wants to purchase a product or service. The buyer posts a request for quotation (RFQ) on its website or on a third party site and provides detailed information on the desired purchase, which suppliers then submit bids electronically. The lowest price bidder wins the auction.

question

electronic store front

answer

a website that represents a single store.

question

electronic market place

answer

central, virtual market places on the web where many buyers and many sellers can conduct e-commerce and e-business activities

question

electronic payment mechanisms

answer

this enables buyers to pay for goods and services electronically, rather than writing a check or using cash

question

electronic checks (e-checks)

answer

used primarily in B2B, are similar to regular paper checks. A customer who wishes to use this must first establish a checking account, then when the costumer buys a product or a service, he/she sends an encrypted check to the seller

question

electronic credit cards

answer

allows costumers to charge online payment to their credit card account. Used primarily to B2C, and in shopping by small-to-medium enterprises

question

cleaning house

answer

where your payment information goes when you send it to the company, for it to be decrypted for verification and authorization

question

virtual credit cards

answer

allows customers to shop online and can only be used once and can only be used on the website where you're going to make your purchase

question

purchasing cards

answer

the B2B equivalent of electronic credit cards. Payments made with this type of card are settled within a week instead of 60 days with a normal credit card

question

store valued money cards

answer

this allows you to store a fix amount of prepaid money and then spend it as necessary. It's used to pay for transport actions and for telephone calls

question

smart cards

answer

contains a chip that can store a considerable amount of information- more than 100 times the amount contained on a stored-value money card and they are multi-puprose and are ideal for micropayments (small payments of a few dollars or less)

question

person-to-person payments

answer

enables two individuals or an individual and a business to transfer funds without using a credit card i.e. paypal

question

benefits of e-commerce

answer

-it makes national and international markets more accessible and by covering the cost of processing, distributing and retrieving information -the ability to easily and conveniently deliver information, services and products to people everywhere

question

limitations of e-commerce

answer

the lack of universally accepted security standards and accessing it is expensive in developing countries -it has a bad perception of security and legality

question

electronic storefronts and electronic malls

answer

two basic mechanisms that customers utilize to access companies on the web

question

channel conflict and order fulfillment

answer

the complexities of business to customer creates two main challenges for sellers

question

electronic retailing (e-tailing)

answer

the direct sale of products and services through electronic storefronts or electronic malls, usually designed around an electronic catalog format and/or auctions

question

electronic storefront

answer

a website that represents a single store. Each of these has a unique uniform resource locator (url) or internet address, at which buyers can place orders. Some are extensions of physical stores such as Walmart, while others are new businesses started by entrepreneurs who discovered a niche on the web (i.e. restaurant.com)

question

electronic mall/cyber mall/e-mall

answer

a collection of individual shops grouped under a single internet address. The basic idea of this is the same as that of a regular shopping mall; to provide a one-stop shopping place that offers a wide range of products and services i.e. bing.com/shopping

question

referral mall

answer

you cannot buy anything (i.e. hawaii.com); you are transferred from the mall to a participating storefront.

question

electronic shopping cart

answer

in the second type of mall (i.e. shopping.google.com), you can actually make a purchase; you might shop from several stores, but you make only one purchase transaction at the end- you use this to gather items from various vendors and then for pay for all of them in a single transaction

question

disintermediation

answer

one of the most pressing electronic commerce issues relating to online services (as well as in marketing tangible products); the process whereby are eliminated

question

intermediaries (middlemen) two functions

answer

1. they provide information 2. they perform value-added services such as consulting

question

intermediaries provide information

answer

the first function of intermediaries; this can be fully automated and most likely will be assumed by e-marketplaces and portals that provide information for free; when this development occurs, the intermediaries, who perform only or primarily this function are likely to be eliminated

question

intermediaries performing value-adding services

answer

this is the second function of intermediaries; this requires expertise and can be only partially automated- intermediaries are more likely to survive and prosper

question

1. when the number of participants is enormous, as with job searches 2. when the information that must be exchanged is complex

answer

the web helps employees in two situations...

question

leading online service industries

answer

banking, trading of securities (stocks and bonds), job marketing, trade services, and advertising

question

cyber banking/electronic banking

answer

conducting various banking activities rom home, at a place of business, or on the road instead of at a physical bank location; it is more convenient for customers and less costly for banks; it enables banks to also attract remote customers

question

internet-only banks

answer

these are dedicated solely to internet transactions

question

online advertising

answer

the practice of disseminating information in an attempt to influence a buyer-seller transaction by making it new, dynamic, and interactive

question

how EC improves upon traditional forms of advertising

answer

1. internet ads can be updated any time at minimal cost, which maintains its currency 2. these ads can reach a large audience/potential buyers all over the world 3. generally cheaper than radio, tv, and print ads 4. internet ads can be interactive and targeted to specific interest groups and/or individuals

question

banners, pop ups, and e-mail

answer

most common advertising methods

question

banners

answer

electronic billboards. It usually contains a short text or a graphical message to promote a product or a vendor. May contain video clips or sound. When people click on it, they are transferred to the advertisers home page. It is the most commonly used form of advertising on the internet. advantage= they can be customized to the target audience disadvantage= can convey only limited information because of their small size and many view it as annoying.

question

automatically, intrusive

answer

pop up and pop under ads are contained in a new browser window that is ____________ launched when you enter or exit a website and many find this _______

question

pop-up ad

answer

this appears in front of the current browser window

question

pop-under ad

answer

this appears underneath the active window; when users close the active window, they see the ad

question

spamming

answer

the disseminate distribution of electronic ads without the permission of the receiver; it elicits two important responses- permission marketing and viral marketing

question

permmission marketing

answer

this asks customers to give their permission to voluntarily accept online advertising and e-mail. Customers are asked to complete an electronic form that asks what they are interested in and requests permission to send related marketing information. It is the basis for many marketing strategies.

question

viral marketing

answer

this refers to online word-of-mouth. The strategy is to have people forward messages to friends, family members, and other acquaintances suggesting they check it out.

question

channel conflict and order fulfillment

answer

the two most significant issues in e-tailing

question

channel conflict

answer

this can alienate the distributors; clicks-and-motor companies may face a conflict with their regular distributors when they sell directly to customers online. It has forced some companies to avoid direct online sales i.e. walmart would rather costumers went to their stores while providing more emphasis on information on products than sales online

question

multi-channeling

answer

many companies are integrating their online and offline channels; creates opportunity for show rooming

question

show rooming

answer

this occurs when shoppers visit a brick and motor store to examine a product in person, which causes problems for brick-and-motor retailers such as target and best buy but benefit amazon and e bay, because they usually host the cheaper prices or can compare prices to other firms

question

order fulfillment

answer

this can create problems for e tailers; any time a company sells directly to customers and must perform the following activities--. quickly find the products to be shipped, packed to them, arrange for delivery, collect the money from the customers, and handle returns i.e. when chelsea or amanda are running around the store trying to find the products that need to be shipped to customers houses

question

business-to-business (B2B) commerce

answer

-the buyers and sellers are business organizations compromising about 85% of EC volume -it utilizes any of several business models, the major ones being--> sell side market places, buy side market places, and electronic exchanges

question

sell-side marketplaces

answer

organizations attempt to sell their products or services to other organizations electronically from their own private e-market place website and/or from a third party website. It is similar to B2C model. -the key mechanisms= forward actions and electronically catalogs that can be customized for each large buyer -it is especially suitable for customization i.e. at dell, you can configure the exact computer you want

question

procurement

answer

the overarching idea that describes the activities and processes to acquire goods and services. It involves the activities necessary to establish requirements, sourcing activities such as market research and vendor evaluation and negotiation of contracts

question

purchasing

answer

the process of ordering and receiving goods and services. It is a subset of the procurement process.

question

buy-side market place

answer

a model in which organizations attempt to procure needed products or services from other organizations electronically. A major method is the service action.

question

e-procurement

answer

procurement by using electronic support; it uses reverse actions, particularly group purchasing

question

group purchasing

answer

multiple buyers combine their orders so they constitute a large volume and therefore attract more seller attention. Also, when buyers place their combined orders on a reverse auction, they can negotiate a volume discount

question

public exchanges/exchanges

answer

independently owned by a third party, and they connect many sellers with many buyers. They are open to all business organizations, and are frequently owned and operated by a third party -it deals with direct and indirect materials

question

direct materials

answer

inputs to the manufacturing process, such as safety glass used in automobile windshields and windows

question

indirect materials

answer

items, such as office supplies, that are needed for maintenance, operations, and repairs (MRO)

question

vertical exchanges, horizontal exchanges, and functional exchanges

answer

the three basic types of public exchanges

question

vertical exchanges

answer

these connect buyers and sellers in a given industry i.e. papersite.com in the paper company

question

horizontal exchanges

answer

connect buyers and sellers across many industries used primarily for MRO materials i.e. traderscity.com

question

functional exchanges

answer

needed services such as temporary help or extra office space are traded on an "as needed" basis i.e. employease.com finds temporary labor

question

ethics

answer

the principles of right and wrong that individuals use to make choices that guide their behavior

question

the utilitarian approach, the rights of approach, the fairness approach, and the common good approach

answer

the four widely used standards of ethics

question

utilitarian approach

answer

this states that an ethical action is the one that provides the most good or does the least harm. For all affected parties- customers, employees, shareholders, the community, and the physical environment

question

the rights approach

answer

this maintains that an ethical action is the one that best protects and respects the moral rights of the affected parties- respect the moral rights of everyone involved including customers and competition

question

the fairness approach

answer

this posits that ethical actions treat all human beings equally, or if unequally, then fairly based on some defensible standard i.e. should ceos get paid more than any other hard working employee?

question

the common good approach

answer

this highlights the interlocking relationships that underlie all societies. This argues that respect and compassion for all others is the basis for ethical actions. It emphasizes the common conditions that are important to the welfare of everyone. These conditions can include a system of laws, effective police and fire departments, health care, a public education system and even public recreation areas

question

framework for ethics

answer

if we can combine these four standards, we can develop a general ___________ ___ ________ (or ethical decision making)

question

the five steps of the ethical framework

answer

1. recognize an ethical issue 2. get the facts 3. evaluate alternative actions 4. make a decision and test it 5. act and reflect on the outcome of your decision

question

code of ethics

answer

a collection of principles intended to guide decision making by members of the organization; an individual might be expected to conform to multiple codes

question

fundamental components of ethics

answer

responsibility, accountability, and liability

question

responsibility

answer

you accept the consequences of your decisions and actions

question

accountability

answer

determining who is responsible for actions that were taken

question

liability

answer

a legal concept that gives us individuals the right to recover the damages done to them by other individuals, organizations, or systems

question

the four categories that ethical issues fall into

answer

privacy, accuracy, property, and accessibility

question

privacy issues

answer

this involves collecting, storing, and disseminating information about individuals

question

accuracy issues

answer

this involves the authenticity, fidelity, and correctness of information that is collected and processed

question

property issues

answer

involves the ownership and value of information

question

accessibility issues

answer

this revolves around who should have access to information and whether they should pay a fee for this access

question

privacy

answer

the right to be left alone and to be free of unreasonable personal intrusions

question

information privacy

answer

the right to determine when and to what extent information about you can be gathered and/or communicated to others

question

two rules courts usually follow in privacy cases

answer

1. the right of privacy is not absolute. Privacy must be balanced against the needs of society. 2. the publics rights to know supersedes the individuals right of privacy

question

digital dossier

answer

an electronic profile of you and your habits. Data from camera footage, credit card transactions, query inquiries, etc. produces this

question

profiling

answer

the process of forming a digital dossier

question

customer intimacy

answer

when companies who collect information such as real estate records and public telephone numbers as well as private data, including social security numbers, They then sell this information to companies so companies get to know their customers better

question

electronic surveillance

answer

as noted by the American Liberties Union (ACLU), tracking people's activities with the aid of information technology has become a major privacy-related problem, and that its rapidly increasing. It is conducted by employers, the government, and other institutions -the costs of storing and using data are rapidly decreasing -employees have very limited legal protection against surveillance by employers

question

URL filtering

answer

what is used at moms work so she cant access victoria's secret website

question

major concerns about personal information and databases

answer

do you know where the records are, are they accurate, can you change inaccurate data, how long will it take to make a change, under what circumstances will the personal data be released, how is the data used, to whom is the data given to or sold, how secure are the data against access by unauthorized people

question

blogs

answer

short for "weblog", is an informal, personal journal that is frequently updated and is intended for general public reading -there is a fine line between free speech and how employers want to monitor employees actions online

question

privacy policies/codes

answer

an organizations guidelines for protecting the privacy of its customers, clients, and employees

question

opt-out model

answer

informed consent permits the company to collect personal information until the customer specifically requests that the data not be collected

question

opt-in model

answer

privacy advocates prefer this model of informed consent, which prohibits an organization from collecting any personal information unless the customers specifically authorizes it

question

platform for privacy preferences (P3P)

answer

a protocol that automatically communicates privacy policies between an electronic commerce website and visitors to that site; it enables visitors to determine the types of personal data that can be extracted by the sites they visit

question

the importance of rating online customer service

answer

1. customers can see how well companies are performing in a variety of areas. 2. companies can see how well they and their competitors are performing

question

customer relationship management (crm)

answer

this is essential for small and large enterprises; a customer central approach to their business practices is essential because they realize that long-term customer relationship provides sustainable value that extends beyond an individual business transaction -it is designed to achieve customer intimacy

question

how IS helps with customer relationship management

answer

this helps with time and information so people can be with customers more and it helps gain new customers while maintaining the value of old customers- maintaining customers is the most important because repeat customers are the largest generator of revenue from an enterprise

question

the CRM process

answer

this begins with marketing efforts, which gains customers to hopefully turn them into repeat customers, which is segmented into low and high value repeat customers. Its overall goal is to maximize the lifetime value of a customer

question

customer churn

answer

all organizations inevitably lose a certain percentage of customers

question

CRM concept

answer

treat different customers differently. Because customers needs differ, and their value to the company may also differ

question

market capitalization

answer

the number of shares of the company's outstanding multiplied by the price pre share of the stock -a 1% increase in customer satisfaction can lead to a 300% increase in a companys number of shares

question

CRM systems

answer

information systems designed to support an organizations CRM strategy to have excellent relationships with customers

question

low-end CRM systems

answer

systems designed for enterprises with many small customers i.e. Amazon

question

high end CRM systems

answer

designed for enterprises with a few large customers i.e. boeing

question

two basic elements that all successful CRM policies share

answer

1. the company must identify the many types of customers touch points 2. it needs to consolidate data about each customer

question

customer touch points

answer

organizations numerous and diverse interactions they have with their customers. Traditionally, it includes telephone contracts, direct mailings, and actual physical interactions with customers during their visit to a store i.e. when i leave a flyer at a high potential or any house

question

360 view

answer

the modern interconnected systems built around a data warehouse now make all customer-related data available to every unit of the business

question

collaborative CRM systems

answer

data consolidation and the 360 degree view of the customer enable the organizations fundamental areas to readily share information about customers, which leads to this, which provides effective and efficient interactive communication with the customer throughout the entire organization. They integrate communications between the organization and its customers in all aspects of marketing, sales, and customer support. It also enables customers to provide direct feedback to the organization.

question

two major components of the CRM system

answer

operational CRM systems and analytical CRM systems

question

operational crm systems

answer

this supports front office business processes

question

front office processes

answer

processes that directly interact with customers; sales, marketing, and service

question

two major components of operational crm systems

answer

customer-facing applications and customer-touching applications

question

benefits of operational CRM systems

answer

efficient, personalized, marketing, sales, and service, 360 view of each customer -the ability of sales and service employees to access a complete history of customer interaction within the organization, regardless of the touch point i.e. caticom

question

customer-facing CRM applications

answer

an organizations sales, field service, and customer interaction center representatives interact directly with the customers. These applications include customer service and support, sales force automation, marketing, and campaign management

question

customer interaction centers (CIC)

answer

organizational representatives use multiple channels such as the web, telephone, fax, and face-to-face interactions to communicate with customers

question

call center, outbound telesales, inbound teleservice, information help desk

answer

the cic manages several different types of customer interaction-

question

call center

answer

a centralized office set up to receive and transmit a large volume of requests by the telephone. It enables companies to respond to a large variety of questions, including product support and complaints

question

outbound telesales

answer

organizations use the CIC to create a call list for the sales team, whose members contact sales prospects. The customer and the sales team collaborate in discussing products and services that can satisfy customers needs and generate sales

question

inbound teleservice

answer

customers can communicate directly with the CIC to initiate a sales order, inquire about products and services before placing an order and obtain information about a transaction they have already made

question

information help desk

answer

this assists costumers with their questions concerning products or services, and also customer complaints

question

sales for automation (SFA)

answer

the component of an operational CRM system that automatically records all of the components in a sales transcommunication process

question

contact management systems

answer

this tracks all communications between the company and the customer, the purpose of each communication, and any necessary follow up. This system eliminates duplicated contacts and redundancy, which in turn reduces the risk of irritating customers

question

sales lead tracking system

answer

this lists potential customers or customers who have purchased related products (products similar to those that the sales person is trying to sell to the customer)

question

sales forecasting system

answer

a comprehensive source of information regarding products and sources

question

product knowledge systems

answer

a comprehensive source of information regarding products and sources

question

configurators

answer

more developed SFA systems have online product-building features that enable customers to model the product to meet their specific needs i.e. you can customize your own running shoes at NikeID

question

purchasing profile

answer

CRM uses data mining (being able to sift through large amounts of data) to develop this, which is a snapshot of a consumer's buying habits that may lead to additional sales through cross-selling, upselling, and bundling

question

cross-selling

answer

the marketing of additional related products to customers based on a previous purchase; this sales this sales approach has been used successfully by banks. i.e. if you have a checking and savings account at your bank, then a bank officer will recommend other products for you, such as certificates of deposit (CDs) or other types of investments

question

upselling

answer

a strategy in which the sales person provides customers with the opportunity to purchase related products or services of greater value in place of, or along with, the consumer's initial product or service selection i.e. a best buy sales representative may show a customer an expensive HD tv next to a shitty tv to try and convince the customer to buy the more expensive tv

question

bundling

answer

a form of cross selling in which a business sells a group of products or services together at a lower price than their combined individual prices i.e. your cable company many put cable tv, broad band internet access and telephone services at a lower price than you would pay for each service separately

question

campaign management applications

answer

this helps an organization plan campaigns that send the right messages to the right people through the right channels; organizations manage their campaigns very carefully to avoid targeting people who have opted out of receiving market communications. Also, companies use these applications to personalize individual messages for each particular customer

question

customer touching CRM applications/electronic CRM applications

answer

customers who utilize CRM technologies interact directly with the applications themselves

question

mass customization

answer

a process in which costumers can configure their own products i.e. dell allows customers to configure their own computer systems

question

frequently asked questions (FAQs)

answer

a simple tool for answering repetitive customer queries. Customers may find the information they need by using this tool, thereby eliminating the need to communicate with an actual person

question

loyalty programs

answer

these recognize costumers who repeatedly use a vendor's products or services

question

1. a high frequency of repeated purchases, 2. limited product customization for each customer

answer

loyalty programs are appropriate when these two conditions are met-

question

influence future behavior

answer

frequently referred to as "rewards cards", loyalty programs actual purpose is to not reward past behavior, but rather to-

question

competitive advantage

answer

any assets that provide an organization with an edge against its competitors in some measures such as cost, quality, or speed. This helps an organization to control a market and to acquire larger-than-average profits.

question

business environment

answer

the combination of social, legal, economic, physical and political factors in which businesses conduct their operations; significant changes in this will make business pressures

question

three major types of business pressures

answer

market, technology, and societal pressures

question

market pressures

answer

generated by the global economy, intense competition, the changing nature of the work force, and powerful customers

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globalization

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the integration and interdependence of economic, social, cultural, and ecological facets of life, made possible by rapid advances in information technology; it is leveling the global company field

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Friedman's three eras of globalization

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1. globalization 1.0 2. globalization 2.0 3. globalization 3.0

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globalization 1.0

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1492-1800 the force behind globalization was how much muscle, horsepower, wind power, or steam power a country could deploy

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globalization 2.0

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1800-2000 the force behind globalization was the emergence of multinational companies (companies that held headquarters in one country but operated in several countries). The first half of this era, globalization was driven by falling transportation costs generated by the steam engine and the railroads. The second half, the driving force was falling telecommunications costs resulting from the telegraph, telephone, computers, satellites, fiber optic cable, and the world wide web

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globalization 3.0

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year 2000 on in this era, globalization has been driven by the convergence of co-forces called flatteners, in which information technology has been a majority of this convergence

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customer intimacy

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modern firms strive to learn as much as possible about their customers to better anticipate and address their needs; part of the customer relationship management

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technology pressures

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1. technological innovation 2. information overload

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bring your own device (BYOD)

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this refers to the policy of permitting employees to bring personally owned mobile devices to the work place and to use those devices to connect to the corporate network/personal use; it has been a huge problem for IT but has increase workers productivity and satisfaction

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organizational social responsibility/individual social responsibility

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some corporations and individuals are willing to spend time and/or money to address various social problems

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green IT

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critical social problem of the state of the physical environment; this addresses some of the most pressing environmental concerns.

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1. facilitates design and management 2. carbon management 3. international and US environmental laws

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green IT helps organizations go green in three areas

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facilitates design and management

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environmentally friendly buildings, green facilities, energy-efficient data centers, electricity

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carbon management

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monitoring carbon in the organization and its supply chain

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international and us environmental laws

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IT must deal with IT products bought, how to dispose of them, and the company's carbon foot print

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digital divide

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the wide gap between those individuals who have access to information and communications technology and those who do not

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information ethics

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this reduces specifically to standards of right and wrong in information processing practices; the use of IT raises many ethical issues, ranging from monitoring e-mails to invading the privacy of millions of customers whose data are stored and are stored in private and public data bases

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strategic systems

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this provides organizations with advantages that enable them to increase their market share and/or profits, to better negotiate with suppliers and to prevent competitors from entering their markets i.e. the weather channel

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business process

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collection of related activities that produce a product or a service of value to the organization, its business partners, and/or its customers i.e. Amazon (knows your name, offers items you make like, etc)

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make-to-order

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a strategy of producing customized products and services. The business problem is how to manufacture customized goods efficiently and at a reasonably low cost. Part of the solution is to change manufacturing processes to mass customization

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mass production

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a company produces a large quantity of identical items

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customer segmentation

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companies provide standard specifications for different consumer groups or segments i.e. clothes manufacturer

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configured mass customization

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companies offer features that allow each shopper to customize his or her product or service with a range of components i.e. ordering a car

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mass customization

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(current strategy) a company produces a large quantity of items, but it customizes them to match the needs and preferences of individual customers. This is an attempt to perform make-to-order on a large scale i.e. body metrics sells men and woman jeans

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electronic commerce (e-commerce)

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this describes the process of buying, selling, transferring, or exchanging products, services, or information via computer networks, including the internet

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e-business

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this is a broader concept than e-commerce; in addition to buying and selling goods and services, this also refers to servicing customers, collaborating with business partners, and performing electronic transactions within an organization

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competitive strategy

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identifies a business' approach to compete, its goals, and the plans and policies that will be required to carry out those goals; focuses on achieving a desired outcome when competitors want to prevent you from reaching your goal

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cost, quality, and time to market

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an organization seeks to outperform its competitors in a critical measure such as-

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core business

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information technologies simply offer tools that can enhance an organizations success through its traditional sources of competitive advantage such as low costs, excellent customer service, and superior supply chain management

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strategic information systems (SISs)

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this provides a competitive advantage by helping an organization implement its strategic goals and improve its performance and productivity; any information system that helps an organization either achieve a competitive advantage or reduce a competitive disadvantage

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competitive forces model

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the best known framework for analyzing competitiveness by Michael Porter; companies use this model to develop strategies to increase their competitive edge. This also demonstrates how IT can make a company more competitive

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the five major forces that can endanger or enhance a companys position in any given industry, said by the competitive forces model (applies to every business)

answer

1. the threat of entry of new competitors 2. the bargaining power of suppliers 3. the bargaining power of customers (buyers) 4. the threat of substitute products or services 5. the rivalry among existing firms in the industry

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entry barrier

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product or service feature that customers have learned to expect from organizations in a certain industry. A competing organization must offer this feature in order to survive in the marketplace

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the threat of entry of new competitors

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-the web increases the threat that new competitors will enter the market because it sharply reduces traditional barriers to entry -the threat of increased competition is particularly acute in industries that perform an intermediation role (a link between buyers and sellers as well as in the industries where the primary product or service is digital)

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the bargaining power of suppliers

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organizations want more potential suppliers so that they will be in a stronger position to negotiate price, quality, and delivery options

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the bargaining power of customers (buyers)

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buying power is high when buyers have many choices from whom to buy and low when buyers have fewer choices -loyalty programs reduce buyer power

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the threat of substitute products or services

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new technologies create substitute products very rapidly; information-based industries experience the greatest threat from substitutes

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switching costs

answer

the costs, in money and time, imposed by a decision to buy elsewhere i.e. phone contracts have a price tag and it costs a lot of money to switch plans i.e. you switch from amazon to another online source and this source needs to develop your preferences, which takes time

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the rivalry among existing firms in the industry

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the threat from rivalry is high when there is intense competition among many firms in an industry and it is low when the competition is among fewer firms

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radio-frequency identification

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wireless technologies to speed up check out processes, etc. i.e. what grocery stores use

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value chain

answer

a sequence of activities through which the organizations inputs are transformed into more valuable outputs

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value chain model

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this identifies points where an organization can use information technology to achieve competitive advantage

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primary activities and support activities

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activities conducted in any organization can be divided into two categories-

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primary activities

answer

these relate to the production and distribution of the firms products and services

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support activities

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these do not add value directly to the firms products or services. They contribute to the firms competitive advantage by supporting the primary activities.

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the five primary activities typically performed by manufacturing companies

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1. inbound logistics (inputs) 2. operations (manufacturing and testing) 3. outbound logistics (storage and distribution) 4. marketing and sales 5. services

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inbound logistics

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the incoming materials are processed

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operations

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value is added to this by turning raw materials into products

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outbound logisitics

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products are prepared for delivery

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marketing and sales

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this sells the products to the customers, increasing product value by creating demand for the company's products

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services

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the company performs after sales services for the customer, such as warranty service or upgrade notification, adding more value

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the four support activities

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1. the firms infrastructure (accounting, finance, management) 2. human resources management 3. product and technology development (R) 4. procurement

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value system

answer

also called an industry value chain, this includes the suppliers that provide the inputs necessary to the firm along with their value chains

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the common strategies to rebuttle Porter's theory

answer

1. cost leadership strategy 2. differentiation strategy 3. innovative strategy 4. operational effectiveness strategy 5. customer orientation strategy

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cost leadership strategy

answer

produces products/services at the lowest cost in the industry (ha im cheaper than you)

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differentiation strategy

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offer different products, services, or product features than competitors (ha im different than you)

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innovative strategy

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introduces new products and services, adds new features to existing products and services, or develop new ways to produce them (ha im more advanced than you)

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operational effectiveness strategy

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improves the manner in which a firm executes its internal business processes so that it performs those activities more effectively than its rivals- increases quality, productivity, and employee/customer satisfaction (ha i'm more organized/productive than you)

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customer-orientation strategy

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makes customers happy (ha, my customer is happier than yours)

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business-information technology alignment

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the tight integration of the IT function with the organizations strategy, mission, and goals. The IT function directly supports the business objectives of the organization

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the six characteristics of excellent alignment between business information and technology

answer

1. IT=engine of innovation 2. customer service 3. rotate business and IT professionals 4. overarching goals 5. IT knows how the company makes money 6. inclusive culture

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why organizations fail to implement close alignment between the business and IT

answer

1. business managers and IT managers have different goals 2. business and IT departments are ignorant 3. lack of communication

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the three fundamental elements of the business process

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inputs, resources, outputs

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inputs

answer

materials, service, and information that flows through and are transformed as a result of process activities

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resources

answer

people and equipment that perform process activities

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outputs

answer

the product or a service created by the business process

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internal or external to the organization

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if the business process involves a customer, then the customer can be either-

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internal customer

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a manager who is the recipient of an internal reporting process

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external customer

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an individual or a business that purchases the organizations products

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efficiency and effectiveness

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two fundamental metrics that organizations employ in assessing their processes

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efficiency

answer

this focuses on doing things well in the process; i.e. progressing from one process activity to another without delay or without wasting money or resources

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effectiveness

answer

this focuses on doing the things that matter; creating outputs of value to the process customer i.e. high quality products

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cross-functional business processes

answer

no single functional area is responsible for their execution. Rather, multiple functional areas collaborate to perform the process. For it to be successfully completed, each functional area must execute its specific process steps in a coordinated, collaborative way

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the procurement process

answer

this includes all of the tasks involved in acquiring needed materials externally from a vendor. It compromises five steps that are completed in three different functional areas of the firm- warehouse, purchasing, and accounting

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step one of the procurement process

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the warehouse recognizes the need for materials and the warehouse documents this need with a purchase requisition, which it sends to the purchasing department

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step two of the procurement process

answer

the purchasing department identifies a suitable vendor, creates a purchase order based on the purchase requisition and send the order to the vendor

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step three of the procurement process

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when the vendor receives the purchase order, it ships the materials, which are received in the warehouse

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step four of the procurement process

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the vendor then sends an invoice, which is received by the accounting department

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step five of the procurement process

answer

accounting sends payments to the vendor, thereby completing the procurement process

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the fulfillment process

answer

this process is concerned with processing customer orders; it is triggered by a customer purchase order that is received by a sales department. Sales then validates the purchase order and creates a sales order. The sales order communicates data related to the order to the other functional areas within the organizations, and it tracks the progress of the order. The warehouse prepares and sends the shipment to the customer. Once accounting is notified of the shipment, it creates an invoice and sends it to the customer. The customer then makes a payment, which accounting records.

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how organizations determined if their business processes are well designed

answer

1. document the process by describing its steps, its inputs, outputs and resources 2. analyze the process and potentially modify

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information systems

answer

a critical enabler of an organizations business processes. It facilitates communication and coordination among different functional areas, and allows easy exchange of, and access to, data across processes.

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1. executing the process 2. capturing and storing process data 3. monitoring process performance

answer

information systems play a vital role in three areas-

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process data/transaction data

answer

processes create data such as dates, times, product numbers, quantities, prices, and addresses, as well as who did what, when and where

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advantage of process data

answer

data only needs to be entered into the system once and can provide immediate feedback

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customer satisfaction

answer

the result of optimizing and aligning business processes to fulfill customers needs, wants, and designs

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cost reduction

answer

the result of optimizing operations and supplier processes

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cycle and fulfillment time reduction

answer

the result of optimizing the manufacturing and logistic processes

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quality

answer

the result of optimizing the design, development, and production processes

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differentiation

answer

the result of optimizing the market and innovation processes

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productivity

answer

the result of optimizing each individuals work processes

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business process reengineering (BPR)

answer

a strategy for making an organization business processes more productive and profitable. The key is for enterprises to examine their business processes from a "clean sheet" perspective and then determine how they can best reconstruct those processes to improve their business functions. The key is to reduce costs and increase quality by information technology. Many find this theory to be too radical, disruptive, and difficult.

question

business process improvement (BPI)

answer

this focuses on reducing variation in the process outputs by searching for root causes of the variation in the process itself (such as a broken machine or an assembly line) or among the process inputs (such as a decline in the quality of raw materials purchased by a supplier). It is usually employed by a team of employees that include a process expert-usually the process owner

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define phase, measure phase, analysis phase, improve phase, control phase

answer

a successful BPI project generally follows 5 basic phases-->

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define phase

answer

the BPI team documents the existing "as is" process activities, process resources, and process inputs and outputs, usually as a graphical process map or diagram. The team also documents the customer and the customer requirements for the phases of output, together with a description of the problem

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measure phase

answer

the BPI team identifies relevant process metrics, such as time and cost to generate one output (product or service), and collect data to understand how the metrics evolve over time

question

analysis phase

answer

the BPI team examines the as is process map and the collected data to identify the problems with the process (i.e. decreasing efficiency or effectiveness) and their root causes. It should also compare its progress with other processes in other companies

question

two benefits of process simulation software during the analysis phase

answer

1. it enables a process manager to quickly simulate a real situation for a specific amount of time 2. it allows a manager to create multiple scenarios; for instance, using a different number of resources i the process and for using a different configuration for the process steps

question

improve phase

answer

the BPI team identifies possible solutions for addressing the root causes, maps the resulting to be process alternatives, and selects and implements the most appropriate solution. Common ways to improve processes are eliminating process activities that dont add value to the output and rearranging activities in a way that reduces delays or improves resource utilization

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process controls

answer

organizations must be careful to not eliminate this, which are internal activities that safeguard company resources, guarantee the accuracy of its financial reporting, and ensure adherence to rules and regulations

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control phase

answer

the team establishes process metrics and monitors the improved process after the solution has been implemented to ensure the process performance remains stable

question

business process management (BPM)

answer

to sustain BPI efforts over time, organizations adopt this; a management system that includes methods and tools to support the design, analysis, implementation, management, and continuous optimization of core business processes throughout the organization

question

process modeling

answer

a graphical depiction of all the steps in a process. It helps employees understand the interactions and dependencies among the people involved in the process, the information system they rely on, and the information they require to optimally perform their tasks

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web enabled technologies

answer

this displays and retrieves data via web browser. They enable an organization to integrate the necessary people and applications into each process, across functional areas and geographical locations

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business activity monitoring

answer

a real time approach for measuring and managing business processes. Companies use this to monitor their business processes, identify failures or exceptions, and address these failures in real time. It also creates valuable behaviors for organizational use for improvement

question

business process management suites (BPMS)

answer

this supports BPM activities; it is an integrated set of applications that include a repository of process information, such as process maps and business rules; tools for processing modeling, simulation, execution, coordination functions, and reconfiguration in response to changing business needs as well as process monitoring capabilities

question

social BPM

answer

this technology enables employees to collaborate using social media tools. both internally across functions and externally with stakeholders to exchange process knowledge an improve process execution

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