info sys ii

Sustainable Competitive Advantage

Financial performance that consistently outperforms industry averages

Operational Effectiveness

Performing the same tasks better than rivals perform them

* improve quality, lower cost, design effcient

Commodity

A basic good that can be interchanged with identical offerings

Augmented-Reality

Technology that superimposes content, such as images and animation, on top of real-world images

Strategic Positioning

Performing different tasks than rivals, or the same tasks in a different way

Value Chain

A set of activities through which a product or service is created and delivered to customers

Brand

The symbolic embodiment of all the information connected with a product or service

Viral Marketing

Leveraging Consumers to promote a product or service

Economies of Scale

When costs can be spread across increasing units of production or in serving multiple customers; highly scalable

Switching Costs

The cost a consumer incurs when moving from one product to another. Can be actual money spent, or investments of time

Network Effects

When the value of a product or service increases as its number of users expands (more users = more value)

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Three Primary Sources:

Exchange (links in networks), Staying Power (the big N), Complementary Benefits

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value of network = n((n-1)/2)

Distribution Channels

The path through which products or services get to customers

API

Programming hooks or guidelines that tell other programs how to get a service or perform a task

Affiliates

Third parties that promote a product or service

PDA

Personal digital assistants; helped Zara gather intelligence

Point-of-Sale System

Transaction processing system that captures customer purchases; helped Zara gather data

Vertical Integration

When a single firm owns several layers of its value chain

RFID

Small chip-based tags that wirelessly emit a unique identifying code for the item they are attached to

Omnichannel

An approach to retail that offers consumers an integrated and complementary set of shops, sales, and return experiences

Information Systems

An integrated solution that combines 5 components: hardware, software, data, procedures, and the people who interact and are impacted by the system

Long Tail Effect

a phenomenon whereby firms can make money by offering a near-limitless selection. In the context of Netflix, it refers to an extremely large selection of content or products.

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Firms realize profits by selling low volumes of niche products, instead of only selling large volumes of a reduced number of popular items

Collaborative Filtering

A classification of software that monitors trends among customers and users this data to personalize an individual customer's experience

Churn Rate

The rate at which customers leave a product or service

Transfer Pricing

The price paid when divisions of the same company transact with each other

Decision Fatigue

A phenomenon where consumers avoid selection decisions with an overwhelming number of choices

Congestion Effect

When increasing numbers of users lower the value of a product or service

Machine Learning

A type of artificial intelligence that leverages massive amounts of data so that computers can improve the accuracy of actions without additional programming

A/B Test

A randomized group of experiments used to collect data and compare performance among two options studied

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Often used in refining the design of a product

Data Warehouse

A set of databases designed to support decision-making in an organization

Bandwith Caps

A limit imposed by the ISP on the total amount of traffic a subscriber can consume

Bitcoin

An open source decentralized payment system

Cryptocurrencies

A digital asset where a secure form of mathematics is used to handle transactions, control the creation of additional units, and verify or transfer assets

Blockchain

A distributed and decentralized ledger that records and verifies transactions and ownership

Deep Learning

A type of machine learning that uses multiple layers of interconnections among data to identify patterns and improve predicted results

Dynamic Pricing

Pricing that shifts over time, usually based on conditions that change demand

Cookie

A line of identifying text, assigned and retrieved by a given Web server stored by your browser

Technology Stack

All of the technology products and services used to build and run one single information technology solution

Digital Divide

Term referring to the difference in accessing to technologies such as computing, wireless, and broadband internet among wealthy and poor communities

Channel Conflict

Exists when a firm's potential partners see that firm as a threat

Data Warehouse

A set of databases designed to support decision-making in an organization

Platforms

Products and services that allow for the development and integration of software products and other complementary goods

One-Sided Market

A market that derives most of its value from a single class of users (i.e. instant messaging)

Same-Side Exchange Benefits

Benefits derived by interaction among members of a single class or participant

Two-Sided Market

Network market that comprises two distinct categories of participant, both of which are needed to deliver value for the network to work (i.e. Uber & Airbnb)

Cross-Side Exchange Benefit

When an increase in the number of users on one side of the market creates a rise in the other side

Social Proof

A positive influence created when someone finds out others are doing something

Backward Compatability

The ability to take advantage of complementary products developed for a prior generation of technology

Web 2.0

A term broadly referring to internet services that foster collaboration and information sharing; often applied to websites and internet services that foster social media and other sorts of peer production

Peer Production

When users work, often collaboratively, to create content and provide services

Search Engine Optimization (SEO)

The process of improving a page's organic page rankings

Software Development Kit (SDK)

Tools taht allow the creation of products or add-ons for a specific operating system or other computing platform

Free Rider Problem

When other take advantage of a user or service without providing any sort of reciprocal benefit

Crowdsourcing

The act of taking a job traditionally performed by a designed agent and outsourcing it to an undefined, large group of people

Cloud

A collection of resources available for access all over the internet

Open Source Software (OSS)

Software that is free and whose code can be accessed and potentially modified by anyone

Cost Per Thousand Impressions (CPM)

The amount charged every time an ad appears 1,000 times

Big Data

A general term used to describe the massive amount of data available to today's managers

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Often unstructured, big, and costly to work through

Business Intelligence

A term combining aspects of reporting, data, exploration, and ad hoc queries

Analytics

A term describing the extensive use of data, statistical and quantitative analysis, and fact-based management to drive decisions and actions

Data

Raw facts and figures

Information

Data presented in a context so that it can answer a question or support decision-making. Structured data to increase knowledge

Knowledge

Insight derived from experiences and expertise

Databases

A single table or related tables of data

Database Management System (DBMS)

Programs that are used to create, maintain, and manipulate databases

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Table or File

A list of data, arranged in columns (fields) and rows (records)

Column or Field

A column in a database table. Columns represent each category of data contained

Row or Record

Records represent a single instance of whatever the table keeps track of

Relational Database

The most common standard of expressing databases whereby tables are related based on common keys

Artificial Intelligence

Computer software that seeks to reproduce or mimic human thought, decision-making, or brain functions

Data Aggregators

Firms that collect and resell data

Data Mart

A database or databases focused on addressing the concerns of a specific problem

Data Cloud

Refers to a cloud service that provides tools to extract and transform data from disparate sources

Data Mining

The process of using computers to identify hidden patterns in, and to build models from, large databases

Cache

Refers to a temporary storage space used to speed computing tasks

Deep Web

Internet content that can't be indexed by Google and other serach engines

Spiders, Web Crawlers, Software Robots

Software that transverses available websites in an attempt to perform a given task

Keyword Advertising

Advertisements that are targeted based on a user's query

Pay-Per-Click (PPC)

A concept where advertisers don't pay unless someone clicks their ad

Quality Score

The measurement of ad performance and ad relevance and landing page experience

Click-Through Rate

The number of users who clicked an ad divided by the number of times an ad was delivered (impressions)

Ad Network

An effort that links advertisers to websites and other content providers that are willing to host advertisements

Information Technology (IT)

Hardware & Software. The use of computers to create, process, store, retrieve, and exchange all kinds of data and information

Technology

The application of knowledge for achieving practical goals in a reproducible way

Sharing Economy

The way connected consumers exchange goods and services with each other through a digital marketplace (two-sided)

Entity

Person, places, events, or things about which the data and information are collected

Attribute

Characteristic of an entity, or characteristic to describe an entity

Relationship

How one entity is connected to (related to) another

Primary Key

A column that can uniquely identify the rows in that table

Foreign Key

A column or a group of columns that point to the primary key columns in the other database

Entity Integrity

This is concerned with the concept of primary keys. Ever table must have its own primary key

Referential Integrity

A set of rules that Access enforces to maintain consistency between related tables when you update data in a database

Queries

A request for information from a database

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A select query is a simple data retrieval query

An action query can ask for additional operations on data, such as insertion, updating, or deletion

Forms

Used for entering, modifying, and viewing records

Structure Query Language (SQL)

Languages used to interact with databases

Windowing

When content is available to a given distribution channel for a specified window of time

Click-Through Rate

Number of users who clicked an ad divided by the number of times the ad was delivered/

information systems

application of INFORMATION TECHNOLOGY to a business problem or process

VRIO

* valuable
* rare
* imperfectly imitable
* organized

five forces

* rivalry among existing competitors
* potential new entrants
* threat of substitute products/services
* power of suppliers
* power or buyers

composite primary key

group of columns that can uniquely identify the rows in that table