CIS 2200 Baruch Midterm

Fact

The confirmation or validation of an event or object

Information Age

The present time during which infinite quantities of facts are widely available to anyone who can use a computer

Data

Raw facts that describe the characteristics of an event or object

Information

Data converted into a meaningful and useful context

Business Intelligence

Information collected from multiple sources such as suppliers, customers, partners, and industries, that analyze patterns, trends, and relationships for strategic decision making

Knowledge

Skills, Experience and expertise coupled with information and intelligence that creates a person intellectual resources

Knowledge Worker

Individual valued for their ability to interpret and analyze information

Goods

Material items or products that customers will buy to satisfy a want or need.

Services

Tasks performed by people that customers' will buy to satisfy a want or need

Productivity

The rate at which goods and services are produced based upon total output given total inputs

Systems Thinking

A way of monitoring the entire system by viewing multiple inputs being processed or transformed to produce outputs while continuously gathering feedback on each part

System

A collection of parts that link to achieve a common purpose

Feedback

Information that returns to its original transmitter and modifies the transmitter's actions.

Management Information Systems

A business function like accounting and human resources which moves about people, products, and processes across the company to facilitate decision making and problem solving

Business Strategy

A leadership plan that achieves a specific set of goals or objectives

Competitive Advantage

A product or service that an organizations customers place a greater value on than similar offerings from a competitor

First Mover Advantage

Occurs when an organization can signficantly impact its market share by being first to market with a competitive advantage

Competitive Intelligence

The process of gathering info about the competitive environment to improve the company's ability to succeed

Porters Five Forces Model

1. Threat of Substitute Products or Services

2. Supplier Power

3. Threat of New Entrants

4. Buyer Power

5. Rivalry Amongst Existing Competitors

Buyer Power

The ability of buyers to affect the price of an item

Switching Cost

Manipulating costs that make customers reluctant to switch to another product

Loyalty Program

Rewards customers based on the amount of business they do with a particular organization

Supplier Power

The suppliers ability to influence the prices they charge for supplies

Supply Chain

Consists of all parties involved in the procurement of a product or raw material

Threat of substitute products or services

High, when there are many alternatives to a product or service and low when there are few alternatives

Threat of new entrants

High, when it is easy for new competitors to enter a market and low when there are significant entry barriers

Entry Barrier

A feature of a product or service that customers have come to expect and entering competitors must offer the same for survival

Rivalry among existing competitors

High, when competition is fierce in a market and low when competitors are more complacent

Product differentiation

Occurs when a company develops unique differences in its products or services with the intent to influence demand

Porters 3 generic strategies

1.Broad Cost Leadership

2. Broad Differentiation

3. Focused Strategy

Business Process

A standardized set of activities that accomplish a specific task

Value chain analysis

Views a firm as a series of business processes that each add value to the product or service

Primary Value Activites

Inbound Logistics

Operations

Outbound Logistics

Marketing and Sales

Service

Support Value Activities

- Firm Infrastructure

- Human Resource Management

- Technology Development

- Procurement

Procurement

Purchases inputs such as raw materials, resources, equipment, and supplies

Firm Infrastructure

Includes the company format or departmental structures, environment, and systems

Technology Development

Applies MIS to processes to add value

Human Resource Management

Provides employee training, hiring and compensation

Strategic Initiatives

Organizations can undertake high profile strategic initiatives including Business Process Reengineering (BPR), Supply Chain Management (SCM), Customer Relationship Management (CRM), Enterprise Resource Planning (ERP)

Business Process Reengineering (BPR)

The analysis and redesign of workflow within and between enterprises

Supply Chain Management (SCM)

The management of information flows between and among activities in a supply chain to maximize total supply chain effectiveness and probability.

The supply chain has three links

1. Upstream

2. Transformation of materials into semi-finished and finished products through the organizations own production process

3. Downstream

5 basic supply chain activities

1. Plan

2. Source

3. Make

4. Deliver

5. Return

Plan

this is the strategic portion of supply chain management. A company must have a plan for managing all the resources that go toward meeting customer demand for products or services

Source

Companies must carefully choose reliable suppliers that will deliver goods and services required for making products

Make

Companies manufacture their products or services

Deliver

Logistics

Return

Companies must create a network for receiving defective and excess products and support customers who have problems with delivered products

Customer Relationship Management (CRM)

Involves managing all aspects of a customers relationship with an organization to increase customer loyalty and retention and an organizations profitability

Enterprise Resource Planning (ERP)

integrates all departments and functions throughout an organization into a single IT system so that employees can make decisions by viewing enterprise-wide info on all business operation

Throughput

The amount of info that can travel through a system at any point

Managerial Decision Making Challenges

-Analyze large amount of info

-Apply sophisticated analysis techniques

-Make decisions quickly

6 step decision making process

1. Problem Identification

2. Data Collection

3.Solution Generation

4. Solution Test

5. Solution Selection

6. Solution Implementation

Operational Decision Making

Employees develop, control, and maintain core business activities required to run the day to day operations

Structured Decisions

Situations where established processes offer potential solutions

Managerial Decision Making

Employees evaluate company operations to identify, adapt to, and leverage change

Semi-Structured Decisions

Occur in situations in which a few established processes help to evaluate potential solutions but not enough to lead to a definite recommended decision

Strategic Decision Making

Managers develop overall strategies, goals, and objectives

Unstructured decisions

Occurs in situations in which no procedures or rules exist to guide decision makers toward the correct choice

Transaction Processing System (TPS)

Basic Business system that serves the operational level and assists in making structured decisions

Online transaction processing (OLTP)

Capturing of the transaction and recent information using technology to process, store, and update

Source document

the original transaction record

Online analytical processing (OLAP)

Manipulation of info to create business intelligence in support of strategic decision making

Decision support system (DSS)

Models information to support managers and business professionals during the decision making process

4 quantitative models used by DSS

1. What if analysis

2. Sensitivity analysis

3. Goal seeking analysis

4. Optimization analysis

What if Analysis

checks the impact of a change in a variable or assumption on the model

Sensitivity Analysis

a special case of what-if analysis, is the study of the impact on other variables when one variable is changed repeatedly

Goal Seeking Analysis

finds the inputs necessary to achieve a goal such as a desired level of output

Optimization Analysis

an extension of goal-seeking analysis, finds the optimum value for a target variable by repeatedly changing other variables, subject to specified constraints

Replication (Excel)

Fill Handles allows copying values or formulas by dragging downward or the right

Relocation (Excel)

Cell references are by default relative and copied formulas will reflect the new relative locations. To prevent automatic formula relocation, absolute cell references should be used

Recalculations (Excel)

When values are changed in a cell the formulas that use those cells will be automatically recomputed

Formulas (Excel)

Any math formula can be entered in Excel

Absolute Reference (Excel)

Remains constant when the formula is copied

Relative Reference (Excel)

Adjusts to the new location when the formula is copied regardless of the method used to copy the formula

Mixed Reference (Excel)

Contains both a relative and absolute reference to a column or row

Goal Seek (Excel)

Feature in Excel that calculates the exact value needed in a cell to achieve a target value in another cell

Executive Information Systems (EIS)

A specialized DSS that supports senior level executives within the organization

Granularity

Refers to the level of of detail in a model or the decision making process

EIS's offer...

Consolidation

Drill-down

Slice-and-dice

Consolidation

the aggregation of data from simple rollups to complex groupings of interrelated information

Drill Down

enables users to view details and details of details of information

Slice and Dice

is the ability to look at info from different perspectives

Artificial Intelligence (AI)

Simulates human intelligence such as the ability to reason and learn

Intelligent system

Various commercial applications of artificial intelligence.

Five Most Common categories of AI

1. Expert System

2. Neural Network

3. Genetic Algorithm

4. Intelligent Agent

5. Virtual Reality

Expert System

Computerized programs that imitate experts reasoning

Neural Network

Attempts to emulate the way the human brain works

Genetic Algorithm

AI system that mimics evolution, generates increasingly better solutions to a problem

Intelligent Agent

Knowledge based info system that accomplishes specific tasks on behalf of its users

Virtual Reality

A computer simulated environment, simulates reality

Factors Driving SCM

1. Competition

2. Visibility

3. Consumer Behavior

4. Speed

Visibility

more visible models of different ways to do things in the supply chain have emerged

Consumer Behavior

Companies must respond to demanding customers through supply chain enhancements

Supply Chain visibility

the ability to view all areas up and down the supply chain

Bullwhip affect

Occurs when distorted product demand information passes from one entity to the next throughout the supply chain

Demand Planning Software

Generates demand forecasts using statistical tools and forecasting techniques

Supply Chain Planning (SCP) Software

Uses advanced math algorithms to improve efficiency of supply chain

Supply Chain Execution (SCE) software

Automates the different steps and stages of the supply chain

Radio Frequency Identification (RFID)

Uses Electronic Tages and labels to identify objects wireless over short distances (price scanner)