MIS - 301 MidTerm Definitions

IPO (initial public offering)

the first time a firm makes shares available via a public stock exchange, also known as "going public."

Internet of Things (IoT)

A vision where low-cost sensors, processors, and communication are embedded into a wide array of products and our environment, allowing a vast network to collect data, analyze input, and automatically coordinate collective action.

Sarbanes-Oxley Act (Also known as Sarbox or SOX;)

U.S. legislation enacted in the wake of the accounting scandals of the early 2000s. The act raises executive and board responsibility and ties criminal penalties to certain accounting and financial violations. Although often criticized, it is also seen as raising stakes for mismanagement and misdeeds related to a firm's accounting practices.

Operational Effectiveness

Performing the same tasks better than rivals perform them.

Economies of Scale

When costs can be spread across increasing units of production or in serving multiple customers. Businesses that have favorable ones and are sometimes referred to as being highly scalable.

Scale advantages

Advantages related to size.

Value chain

The 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

Fast Follower Problem

Exists when a savvy rivals watch a pioneer’s efforts, learn from their successes and missteps, then enter the market quickly with a comparable or superior product at a lower cost before the first mover can dominate.

Sustainable Competitive Advantage

Financial performance that consistently outperforms industry averages.

Private

Buying up a publicly traded firm’s shares. Usually done when a firm has suffered financially and when a turnaround strategy will first yield losses that would further erode share price. Firms, or leveraged buyout firms) that take another company private hope to improve results so that the company can be sold to another firm or they can reissue shares on public markets.

Network Effects

Also known as Metcalfe’s Law, or network externalities. When the value of a product or service increases as its number of users expands.

Porters 5 forces

Also known as Industry and Competitive Analysis. A framework considering the interplay between (1) the intensity of rivalry among existing competitors, (2) the threat of new entrants, (3) the threat of substitute goods or services, (4) the bargaining power of buyers, and (5) the bargaining power of suppliers

Straddling

Attempts to occupy more than one position, while failing to match the benefits of a more efficient, singularly focused rival

Commodity

A basic good that can be interchanged with nearly identical offerings by others - think milk, coal, orange juice, or to a lesser extent, Windows PCs and Android phones. The more commoditized an offering, the greater the likelihood that competition will be based on price.

Affiliates

Third parties that promote a product or service, typically in exchange for a cut of any sales.

Inventory Turns

Sometimes referred to as inventory turnover, stock turns, or stock turnover. It is the number of times inventory is sold or used during a given period. A high figure means that a firm is selling products quickly.

Price Transparency

The degree to which complete information is available.

Non-Practicing entities

Commonly known as patent trolls, these firms make money buy acquiring and asserting patents, rather than bringing products and services to market

Dense Wave Division Multiplexing (DWDM)

A technology that increases the transmission capacity (and hence speed) of fiber-optic cable. Transmissions using fiber are accomplished by transmitting light inside “glass” cables. In DWDM, the light inside fiber is split into different wavelengths in a way similar to how a prism splits light into different colors.

Augmented Reality

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

Distribution Channels

The path through which products or services get to customers

Imitation Resistant Value Chain

A way of doing business that competitors struggle to replicate and that frequently involves technology in a key enabling role

APIs

Programming hooks, or guidelines, published by firms that tell other programs how to get a service to perform a task such as send or receive data. For example, Amazon provides these to let developers write their own applications and websites that can send the firm orders.

Switching Costs

The cost a consumer incurs when moving from one product to another. It can involve actual money spent (eg. buying a new product) as well as investments in time, any data loss, and so forth.

Strategic Positioning

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

Resource-Based view of competitive advantage

The strategic thinking approach suggesting that if a firm is to maintain sustainable competitive advantage, it must control an exploitable resource, or set of resources, that have four critical characteristics. These resources (1) valuable, (2) rate, (3) imperfectly imitable, and (4) nonsubstitutable.

Information asymmetry

A decision situation where one party has more or better information than its counterparty.

POS System (point of sale)

Transaction processing systems that capture customer purchases. Cash registers and store checkout systems are examples of these systems are critical for capturing sales data and are usually linked to inventory systems to subtract out any sold items.

Contract Manufacturing

Outsourcing production to 3rd party firms. Firms that use this don’t own the plants or directly employ the workers who produce the requested goods.

PDAS (personal digital assitant)

an early name for handheld mobile computing devices

Greige

Goods to be further customized based on designer/manager collaboration.

Omnichannel

An approach to retail that offers consumers an integrated and complementary set of shop, sales, and return experiences (e.g., retail store, online, and sometimes even phone and catalog).

Logistics

Coordinating and enabling the flow of goods, people, information, and other resources among locations.

Information Systems (IS)

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

Vertical Integration

When a single firm owns several layers in its value chain

Showrooming

The concept where customers browse at physical retailers, but purchase products from lower-cost online rivals.

Operations

The organizational activities that are required to produce goods or services. Activities can involve the development, execution, control, maintenance, and improvement of an organization's service and manufacturing procedures.

Return on Investment

The amount earned from an expenditure.

Silicon Wafer

A thin, circular slice of material used to create semiconductor devices. Hundreds of chips may be etched on it, where they eventually cut out form individual packaging.

Microprocessor

The part of the computer that executes the instructions of a computer program.

Microcontrollers

Special-purpose computing devices that don’t have an operating system and can’t do as much as general purpose computers or smartphones. Most of it, like those based on the popular open-source Arduino platform, contain a processor, memory and input/output (I/O) peripherals on a single chip.

Massively Parallel

Computers designed with many microprocessors that work together, simultaneously, to solve problems.

Flash memory

Nonvolatile, chip-based storage, often used in mobile phones, cameras, and MP3 players. The ram of this is slower than conventional RAM, but holds its charge even when the power goes out.

HPC

A term for massively parallel computers specifically designed to deliver significantly more calculating power than conventional off-the-shelf computing technologies. The term is often used interchangeably with supercomputing.

Volatile Memory

Storage (such as RAM chips) that is wiped clean when power is cut off from a device.

Server Farm

A massive network of computer servers running software to coordinate their collective use. It provides the infrastructure backbone to SaaS and hardware cloud efforts, as well as many large-scale Internet services.

Solid State electronics

Semiconductor-based devices. The components often suffer fewer failures and require less energy than mechanical counterparts because they have no moving parts. RAM, flash memory, and microprocessors are these type of devices. Hard drives are not.

Optical Fiber Line

A high-speed glass or plastic-lined networking cable used in telecommunications.

Multicore Microprocessor

Microprocessors with two or more (typically lower power) calculating processor cores on the same piece of silicon.

Semiconductor

A substance such as silicon dioxide used inside most computer chips that is capable of enabling as well as inhibiting the flow of electricity. From a managerial perspective, when someone refers to this, they are talking about computer chips, and this industry is the chip business.

fabs (semiconductor fabrication facilities)

the multibillion-dollar plants used to manufacture semiconductors.

Non-volatile memory

Storage that retains data even when powered down (such as flash memory, hard disc, or DVD storage).

Moore’s Law

Chip performance per dollar doubles every eighteen months

Cluster Computing

Connecting server computers via software and networking so that their resources can be used to collectively solve computing tasks.

Cloud Computing

Replacing computing resources—either an organization's or individual's hardware or software—with services provided over the Internet.

E-waste

Discarded, often obsolete technology; also known as electronic waste.

Latency

A term often used in computing that refers to delay, especially when discussing networking and data transfer speeds. Low systems are faster systems.

Random-access memory (RAM)

The fast, chip-based volatile storage in a computing device.

Supercomputers

\n Computers that are among the fastest of any in the world at the time of their introduction.

Price elasticity

The rate at which the demand for a product or service fluctuates with price change. Goods and services that are highly of this (e.g., most consumer electronics) see demand spike as prices drop, whereas goods and services that are less price elastic are less responsive to price change (think heart surgery).

\n

Grid computing

A type of computing that uses special software to enable several computers to work together on a common problem, as if they were a massively parallel supercomputer.

Software as a service (SaaS)

A form of cloud computing where a firm subscribes to a third-party software and receives a service that is delivered online.

Cryptocurrencies

A digital asset where a secure form of mathematics is used to handle transactions, control the creation of additional units, and verify the transfer of assets. They usually take advantage of a technology known as a blockchain.

Blockchain

A distributed and decentralized ledger that records and verifies transactions and ownership, making it difficult to tamper with or shut down.

KPI's (key performance indicators)

measurable values defined by a firm to demonstrate progress toward a given goal. Examples are quite broad and could include customer acquisition, cost reduction, or improvement in the ROI of online ad campaigns.

Bitcoin

An open source, decentralized payment system (sometimes controversially referred to as a digital, virtual, or cryptocurrency) that operates in a peer-to-peer environment, without bank or central authority.

Serverless

A cloud computing model that allows a software developer to create systems without having to think about servers, and often without needing to think about specific software products like databases. Amazon's Lambda and Google's Cloud Firestore are example, where a software developer simply writes code to execute on Amazon or Google's computers, without worrying about allocating servers, installing operating systems, or buying additional software products (or, in the case of Cloud Firestore, databases) to support the effort. The cloud vendor does all of this behind the scenes, leaving the developer free to focus just on programming the application.

Account Payable

Money owed for products and services purchased on credit.

SQL (Structured Query Language)

the industry-standard language used to create and manipulate databases.

Flash Sales

Offering deep discounts of a limited quantity of inventory. They often run for a fixed period or until inventory is completely depleted. Players include Gilt Groupe and Amazon's Zulily in fashion, and One Kings Lane in home décor.

cash conversion cycle

\n Period between distributing cash and collecting funds associated with a given operation (e.g., sales).

data warehouse

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

Operating income

Income you generate through your operations. Sales through daily business operations minus related expenses. Net income is overall "profit" but can include things such as income from investments, expenses related to financing costs or taxes, or one-time income or expenses such as a gain from a sales or a corporate fine.

deep learning

\n A type of machine learning that uses multiple layers of interconnections among data to identify patterns and improve predicted results. It most often uses a set of techniques known as neural networks and is popularly applied in tasks like speech recognition, image recognition, and computer vision.

A/B test

A randomized group of experiments used to collect data and compare performance among two options studied. It is often used in refining the design of technology products, and they are particularly easy to run over the Internet on a firm's website. Amazon, Google, and Facebook are among the firms that aggressively leverage hundreds of A/B tests a year in order to improve their product offerings.

Goodwill

An accounting term for an intangible asset above and beyond the operations value of the firm. It can include the perceived value of the company's brand name, customer base, and loyalty, positive employee relations, as well as proprietary technology and patents.

IRL (in real life)

online acronym for interactions outside of pre-produced videos, podcasts, etc.

fork

In software development. When developers start with a copy of a project's program source code, but modify it, creating a distinct and separate product from the original base.

Digital Divide

\n Term referring to the difference in access to technologies such as computing, wireless, and broadband Internet among wealthy and poor communities. Poor communities with less access often face less opportunity for everything from home schooling to easy access to online public resources.

Dynamic Pricing

Pricing that shifts over time, usually based on conditions that change demand (e.g., charging more for scarce items).

Instance

A software-based copy using a pre-defined model of the object being created. For example, its of a Windows computer creates a virtual software representation that works and acts exactly like the computer hardware and software it is modeled after.

Thin devices

Thin or thin client computing devices have very little computing power in the device itself, and instead perform the bulk of computing and storage over the network, "in the cloud." Smart speakers and television streaming sticks are all examples of thin clients. The term "thin client" is also sometimes used to describe applications that run in a browser, but where most of the computing happens remotely (e.g., SaaS tools like Salesforce)

fulfillment costs

Include receiving and packaging costs, in addition to shipping costs.

noSQL

A term used for non-tabular databases that are structured differently than relational tables.

Channel conflict

Exists when a firm's potential partners see that firm as a threat. This threat could come because it offers competing products or services via alternative channels or because the firm works closely with especially threatening competitors.

Bursting

\n Shifting capacity to a cloud provider during periods of high demand. A firm that can take advantage of it to scale its information systems should never see its resources overtaxed since it can always rely on its partner to pick up any slack, as needed.

Cookie

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

DMCA (Digital Millennium Copyright Act)

U.S. law protecting copyrighted works from unauthorized digital distribution.

Affiliate marketing program

Marketing practice where a firm rewards partners (affiliates) who bring in new business, often with a percentage of any resulting sales.

Two-sided network effect

Products or services that get more valuable as two distinct categories of participants expand (e.g., buyers and sellers).

Virtual Machine

A software-based representation of a physical computer, complete with operating system and any attendant software that are part of the model being instantiated. You can use it like a physical machine, and install software, create files, etc.It can also be subject to viruses, security vulnerabilities, and other weaknesses of physical computing, although a cloud computing provider can take some measures to prevent attacks and provide backup and redundancy.

Hybrid Clouds

Cloud computing architectures that combine on-premises infrastructure with public cloud services, such as those provided by AWS or Microsoft Azure. It might "turn on" public cloud resources as needed, if an organization's existing infrastructure can't meet surging demand.

Technology Stack

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

Liquidity Problems

Problems that arise when organizations cannot easily convert assets to cash. Cash is considered the most _________ asset—that is, the most widely accepted with a value understood by all.

white label

A fully supported product or service that's made by one company but sold by another. The term was popular by branded appliances, like Sears Kenmore, which were often designed and manufactured by established firms such as Maytag and General Electric. The term is now used in all sorts of products and services, including white label apps offered by GrubHub/LevelUp, which power branded apps at the salad firm Sweetgreen, or Amazon's Alexa Custom Assistant, used to produce custom voice assistants for Fiat Chrysler.

collaborative filtering

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

The Osborne effect

When a firm preannounces a forthcoming product or service and experiences a sharp and detrimental drop in sales of current offerings as users wait for the new item.

platforms

Products and services that allow for the development and integration of software products and other complementary goods, effectively creating an ecosystem of value-added offerings. Windows, iOS, the Kindle, and the standards that allow users to create Facebook apps are all platforms.

Daily active users (DAU)

this refers to the number of unique visitors, on average, who use a product or service.