Business-Driven Information Systems Vocabulary

Vocabulary practice flashcards generated from lecture material covering Chapters 1 through 3 on Management Information Systems, Analytics, AI, Decision-Making, and Ebusiness.

Data

Raw facts that describe the characteristics of an event or object, which are unprocessed, lack context, and answer 'what'.

Information

Data converted into a meaningful and useful context that enables understanding of the current state and answers 'who,' 'what,' 'where,' and 'when'.

Business Intelligence (BI)

Information collected from multiple sources (suppliers, customers, competitors) that analyzes patterns, trends, and relationships using multiple variables for strategic decision making; answers 'how'.

Knowledge

The understanding and application of insights gained from information and BI, combined with experience and expertise, to solve problems; answers 'why'.

Data Literacy

The ability to read, understand, analyze, manage, and act on data in context to enable data-driven decision making and innovation.

GIGO (Garbage In, Garbage Out)

A concept stating that if the input data is bad, the resulting analysis and business decisions will also be bad.

Big Data Characteristics

Characterized by four 'Vs': Volume (scale of data), Velocity (analysis of streaming data), Variety (different structured and unstructured forms), and Veracity (uncertainty or trustworthiness).

Structured Data

Data that has a defined length, type, and format (e.g., dates, numbers) and is easily organized in databases.

Unstructured Data

Data that is not defined and does not follow a specified format (e.g., emails, video, social media), making it far more difficult to store, analyze, and mine.

Prescriptive Analytics

The most strategically valuable level of analytics that answers 'What should we do?' by providing actionable recommendations.

Internet of Things (IoT)

A world of interconnected, Internet-enabled devices that collect and share data without human intervention.

Machine-to-Machine (M2M)

Refers to devices that connect directly to other devices, focusing on direct and local communication.

Competitive Advantage (CA)

A product or service that customers value more than similar offerings from competitors, leading to higher profits than the industry average.

First-Mover Advantage

Occurs when an organization gains significant market share by being the first to offer a competitive advantage.

Systems Thinking

A holistic approach to problem-solving that views issues as interconnected parts of a larger system by observing multiple inputs, processes, outputs, and feedback loops.

Management Information Systems (MIS)

A business function responsible for gathering, storing, cleansing, and analyzing all data from transactional processing systems to facilitate cross-functional behavior.

Chief Information Officer (CIO)

The executive responsible for overseeing all uses of MIS and ensuring the strategic alignment of MIS with overall business goals and objectives.

SWOT Analysis

A strategic analysis tool evaluating internal capabilities (Strengths, Weaknesses) and external environments (Opportunities, Threats) to identify influences on business strategies.

Porter's Five Forces

A framework that analyzes industry competitive forces: Rivalry among existing competitors, Threat of new entrants, Threat of substitutes, Bargaining power of suppliers, and Bargaining power of buyers.

Porter's Three Generic Strategies

Three distinct strategic options to achieve competitive advantage: Broad Cost Leadership, Broad Differentiation, and Focused Strategy.

Structured Decisions

Repetitive, operational-level decisions made frequently where established processes offer potential solutions.

Semistructured Decisions

Managerial-level decisions occurring in situations where a few established processes help evaluate potential solutions, but not enough to yield a definite decision.

Unstructured Decisions

Infrequent, strategic-level decisions occurring in situations where no procedures or rules exist to guide decision makers.

Project

A temporary activity that a company undertakes to create a unique product, service, or result.

Critical Success Factors (CSFs)

The crucial steps companies perform to achieve their goals and objectives and implement their strategies.

Key Performance Indicators (KPIs)

Quantifiable metrics a company uses to evaluate progress toward critical success factors.

Market Share

The proportion of the market captured by a firm, calculated as $\text{Market Share} = \frac{\text{Firm's Sales}}{\text{Total Market Sales}}$.

Return on Investment (ROI)

An internal KPI indicating project earning power, measured as $\text{ROI} = \frac{\text{Profitability of a Project}}{\text{Costs}}$.

Efficiency MIS Metrics

Metrics measuring how optimal MIS performance is (e.g., throughput, transaction speed, system availability).

Effectiveness MIS Metrics

Metrics measuring the impact MIS has on business processes and goals (e.g., customer satisfaction, conversion rates).

Benchmarking

A process of continuously measuring system results, comparing them to baseline benchmark values, and identifying procedures to improve performance.

Model

A simplified representation or abstraction of reality that explains or predicts system behavior.

Transactional Data

Encompasses all data within a single business process or unit of work, used primarily to support daily operational decisions.

Online Transaction Processing (OLTP)

The capture of transaction and event data using technology to process, store, and update data according to defined rules.

Transaction Processing System (TPS)

The basic business system serving operational analysts in making structured decisions (e.g., point-of-sale systems).

Source Documents

Original transaction records such as invoices, receipts, purchase orders, bank statements, and time sheets.

Analytical Information

Organizational data used primarily to support managerial analysis and semistructured decisions.

Online Analytical Processing (OLAP)

The manipulation of information to create business intelligence in support of strategic decision making.

Decision Support Systems (DSSs)

Systems that model information using OLAP to evaluate and choose among different courses of action.

Executive Information System (EIS)

A specialized DSS requiring external data that supports senior executives in making long-term, unstructured, nonroutine decisions.

Granularity

Refers to the level of detail in a model or decision-making process, where greater granularity indicates finer details.

Digital Dashboard

A tool that tracks KPIs and CSFs in real time by compiling information from multiple sources.

Business-facing Processes

Back-office processes invisible to external customers but essential to effective management, such as goal setting and resource allocation.

Customer-facing Processes

Front-office processes resulting in a product or service received by external customers, such as order fulfillment and billing.

Business Process Model and Notation (BPMN)

A graphical notation depicting process steps via Events (circles), Activities (rounded-corner rectangles), Gateways (diamonds), and Flows (arrows).

As-Is Process Model

A representation of the current operational state without any specific process improvements.

To-Be Process Model

A model showing the results of applying change or improvement opportunities to the current process model.

Use Case

A description of how a system, product, or service can be used to achieve specific goals by outlining user interaction steps.

Digitization

The automation of existing manual and paper-based processes and workflows into a digital format.

Robotic Process Automation (RPA)

Software using AI and machine learning to handle high-volume, repeatable tasks previously performed by humans.

Streamlining

Process improvement that simplifies or eliminates unnecessary steps to remove bottlenecks and eliminate redundancy.

Bottlenecks

Occur when resources reach full capacity and cannot handle additional demands, limiting throughput.

Business Process Reengineering (BPR)

The analysis and redesign of workflow within and between enterprises at the strategic level.

Artificial Intelligence (AI)

Technology simulating human thinking and behavior, focusing on three cognitive skills: learning, reasoning, and self-correction.

Algorithm

A step-by-step, repeatable, sequenced, and unambiguous procedure or set of rules for solving a problem.

Overfitting

Occurs when a machine learning model fits training data too closely, learning detail and noise to the extent that it fails to predict new data.

Underfitting

Occurs when a machine learning model has poor predictive abilities because it failed to learn the complexity in training data.

Neural Network

An AI category emulating human brain functioning, featuring self-learning and adapting as input data changes.

Fuzzy Logic

A mathematical method used in AI for handling imprecise or subjective information.

Deep Learning

A process using specialized algorithms to model complex datasets and establish relationships among data.

Natural Language Processing (NLP)

Development of algorithms that analyze, understand, and generate human language in text and speech.

Computer Vision

Development of algorithms allowing computers to identify objects and analyze visual information from images and videos.

Digital Darwinism

Implies that organizations unable to adapt to new information age demands are doomed to extinction.

Disruptive Technologies

New ways of doing things that initially do not meet existing customer needs, entering at the low end to displace reigning technologies and open new markets.

Sustaining Technology

Produces improved products in established markets (e.g., faster car) that existing customers are eager to buy.

Domain Name Service (DNS)

A series of databases tracking computer names and IP addresses on the Internet to route web requests.

Net Neutrality

The principle ensuring all Internet traffic is treated equally without discrimination or preference given to specific content or websites.

Ebusiness

Includes ecommerce along with all internal and external internet-based business operations, connecting buyers, sellers, and suppliers.

Ecommerce

Refers specifically to the buying and selling of goods and services over the Internet.

Information Reach

Measures the number of people a firm can communicate with across the world.

Information Richness

Refers to the depth and breadth of details contained in textual, graphic, audio, or video information.

Mass Customization

An organization's ability to tailor products or services to individual customer specifications at scale over the Internet.

Disintermediation

Occurs when a business sells directly to consumers online, bypassing intermediary agents or businesses.

Stickiness

Measures the duration and frequency of visitor interactions with a website or application.

Clickstream Analytics

The collection and analysis of aggregate data tracking the exact path and navigation patterns visitors take through a website.