OMIS 3500 Test 1

Prof. Monistere

Digital firm

One is which all the organization’s significant business relationships are digitally enabled, and key corporate assets are managed through digital means

Organizational cultural

The fundamental set of assumptions, values, and the way of doing things that have been accepted by most members of the organization

Business model

Describes how a company produces, delivers, and sells product or service to create wealth

Data

Streams of raw facts

Information

Data shaped into meaningful, useful form

Input

The collection of raw data from within the organization or environment

Processing

Conversion, manipulation, and analysis of raw input into a form that is more meaningful to humans

Output

The distribution of processed information to the people who will use it

Feedback

Output that is returned to the appropriate members of the organization to help them evaluate or correct input

Internet of Things (IoT)

Network of physical objects embedded with sensors, software, and other technologies enabling them to connect and exchange date with other devices and systems via the Internet

• ring camera

Big data

The extreme volume of data, the wide variety of data, and the velocity at which data must be processed

Cloud computing

A model of computing in which processing, storage, software, and other services are provided as a shared pool of resources accessed via the Internet

• data centers

Machine Learning

A type of AI that focuses on building computer systems that can learn and improve on their own through algorithms to identify patterns and relationships

Generative AI

Tools such as ChapGPT, Google’s Gemini, and Microsoft Copilot that can identity patterns and structures withing data to generate new and original content

3 areas that need to be understood to use information systems effectively

Management, Organization, and Technology

Organizational dimensions of IS

• 4 functional areas

• each organization has a unique culture

Unique Culture

Fundamental set of assumptions, values, and ways of doing things accepted by most of its members

Management dimensions of IS

• to make sense of the many situations that organizations face

• to make decisions

• to formulate action plans to solve organizational problems

• perceive business challenges in the environment

Technology dimensions of IS

One of the many tools managers use to cope with change and complexity

• computer software

• computer hardware

• data management technology

• networking and communication technology

• networks

Major challenges that technology changed in Technology

• cloud computing

• big dara and IoT

• AI

• the mobile platform

Major challenges that technology changed in Management

• ROI

• Online collaborations and social networks

Major challenges that technology changed in Organizations

• security and privacy

• social business

• remote and hybrid work

Firms invesst heavily in information systems to achieve these 6 strategic business objectives

Operational excellence

New products, services, and business models

Customer and supplier intimacy

Improved decision-making

Competitive advantage

Survival

Operational excellence Walmart example

Created & invested in Retail Link and global replenishment system

• buy for less, cut inventory

• replaced employees, laid off, etc.

LOW COST LEADER

Operational excellence Apple example

Technology differentiation and people are willing to pay more (competitive advantage.)

• customer & supplier intimacy

• improved decision-making using AI

• competitve advantage

• survival - Citi bank

• digital dashboards

Technology

What threw out loyalty to supplier?

3 levels of management

Senior mgmt

Middle mgmt

Operational mgmt

Operational management

Production and service workers

Data workers - service industry

Middle management

Scientist

Knowledge workers

4 functional areas of business functions

Sales & Marketing

Human Resources

Finance and Accounting

Manufacturing and production

Busienss processes

The way a business organizes its workflows to produce a valuable product of service, the activities it uses to accomplish tasks, and the way it coordinates material, information, and knowledge among all employees

Collaboration

Working with others to achieve share and explicit goals

Social business

The use of networking platforms, such as Facebook and X, as well as internal corporate business tools, to engage employees, customers, and suppliers to deepen interaction and enhance information sharing

TPS

Transaction Process Systems

used by operational managers to perform and record daily routine transactions necessary to conduct business

MIS

Management Information Systems

• serves middle management to provide reports on a firm’s current performance and answers routine questions

DSS

Decision Support Systems

• used by middle management and uses internal information from the TPS and MIS to support nonroutine decision-making

ESS

Executive Support Systems

• used by senior level managers to make nonroutine decisions incorporating external events

ERP System

Enterprise Resource Planning

• integrates business processes in all functional areas into a single comprehensive data repository

SCM System

Supply Chain Management

• manages relationships with suppliers, purchasing firms, distributors, and logistics companies to get the right number of products from their source to their point of consumption in the most efficient way

CRM System

Customer Relationship Management

• helps manage relationships with customers

KMS Systems

Knowledge Management System

• supports the creation, capture, storage, and dissemination of expertise and knowledge

Competitive advantage

When a company achieves higher profits than the average competitor in the product market

Value chain model

Highlights specific activites in the business where competitive strategies can best be applied and where information systems are most likely to have a strategic impact

Primary activities

Activities related to the production of a firm’s products and services

Support activities

Consist of activities related to the organizational infrastructure, i.e., administration and management, human resources, technology, and procurement

Benchmarking

Involves comparing the efficiency and effectiveness of business processes to strict standards

Best practices

The most successful solution or problem-solving methods for consistently and effectively achieving a business objective that has been developed by a specific organization or industry

Porter’s competitive forces model

Provides general view of firm, its competitors, and environment

Porter’s 5 Competitive Forces

1. traditional competitors

2. new market entrants

3. substitute products and services

4. customers

5. suppliers

How do 5 competitive forces impact a firm

• provide a framework to analyze and understand competition

• help determine potential profitability

• identify strategic opportunities to gain a competitive advantage

Porter’s 4 generic strategies

Overall cost

Overall differentiation

Cost focus

Differentiation focus

Scope

Broad or narrow

Source

low-cost or differentiation

Southwest

New market entrant

Competitive adv: used one type of plane

driving strategy: low prices, give up leg room, assigned seating, etc

Cutting cost

Also cuts product features and services

Overall cost company examples

Dell

Amazon

Walmart

Overall differnetiation company examples

Harley davidson and Apple

Cost Focus company example

Aldi

Differentiation focus company example

Ducati

Ferrari

Value web

Collection of independent firms using synchronized IT to coordinate value chains to produce product or service collectively

• more customer driven, less linear operation than traditional value chain