Information Systems & Digital Business Models Vocabulary Flashcards

Vocabulary flashcards covering information system components, system types by organizational level, ecommerce models, revenue strategies, and digital business transformation concepts.

Information System

A system of hardware, software, data, people, and processes working together to collect, store, process, and share information that supports an organization's operations and decisions.

Hardware (Information System Component)

Physical devices such as computers, servers, and networks used within an information system.

Software (Information System Component)

Applications and programs that process data within an information system.

Data (Information System Component)

Raw facts and records that an information system stores.

People (Information System Component)

Users, managers, and IT staff who run and maintain an information system.

Processes (Information System Component)

The rules and workflows that guide the use of an information system.

Operational Level

The organizational layer consisting of front-line staff running daily transactions.

Tactical Level

The organizational layer consisting of middle managers monitoring performance and reviewing structured reports.

Strategic Level

The organizational layer consisting of executives planning long-term direction using high-level summaries and dashboards.

Transaction Processing System (TPS)

An operational-level system that captures and records routine daily transactions, such as a POS system logging a sale.

Management Information System (MIS)

A tactical-level system that turns operational data into structured reports for middle managers, such as a weekly sales report.

Decision Support System (DSS)

A system serving tactical and strategic management that uses data and models to evaluate and compare options, such as modeling delivery routes against fuel cost.

Executive Support System (EIS/ESS)

A strategic-level system that gives leadership a high-level strategic view of operations, such as a company profit dashboard.

Enterprise Resource Planning (ERP)

A cross-departmental system that integrates core operations such as finance, HR, and inventory into one system.

Customer Relationship Management (CRM)

A system used by sales and support teams to track and manage customer interactions and preferences.

Supply Chain Management (SCM)

A system used by operations and logistics teams to coordinate suppliers, shipping, and inventory flow from factory to store.

Knowledge Management System (KMS)

An organization-wide system that captures and shares organizational know-how, such as a consulting firm's case study archive.

Business Model

The strategic framework a company uses to generate value through the products and services it delivers, covering revenue creation, efficient operations, and customer relationships.

Digital Business Model

A model where value is created through digital technologies, characterized by digital-first customer acquisition, global reach, low marginal cost scalability, and a unique digital value proposition.

B2C (Business-to-Consumer)

An ecommerce model where a business sells directly to individual consumers through direct sales or subscriptions.

B2B (Business-to-Business)

An ecommerce model where a business sells to another business using bulk pricing and contracts.

C2C (Consumer-to-Consumer)

An ecommerce model where individual consumers sell to other consumers, monetized through commissions or listing fees.

C2B (Consumer-to-Business)

An ecommerce model where individual consumers sell products or services to businesses, generating revenue through service fees.

B2G (Business-to-Government)

An ecommerce model where businesses provide goods or infrastructure services to government entities via contracts.

B2A / C2A (Business/Consumer to Administration)

An ecommerce model where businesses or consumers transact with public-sector service portals through fees and payments.

Dropshipping

An ecommerce revenue model where no inventory is held by the seller and the supplier ships directly to the customer, characterized by low barriers to entry and thinner margins.

White Labelling

An ecommerce revenue model where pre-made products are sold under a company's own brand, allowing a faster launch but requiring stronger branding.

Direct Selling

An ecommerce revenue model where products are sold directly to consumers without intermediaries, offering full data ownership and higher margins.

Wholesale

An ecommerce revenue model involving bulk sales to retailers at discounted prices, yielding lower margins and higher order volumes.

Subscription Revenue Model

An ecommerce revenue model based on recurring payments for ongoing access, generating predictable revenue but requiring low customer churn.

Freemium Model

A digital business model offering a free tier of basic access along with paid upgrades for premium features.

Usage-Based Model

A digital business model where customers pay strictly based on the volume or amount of service consumed.

Marketplace Model

A digital business model that connects third-party buyers and sellers on a single digital platform.

Ecosystem Model

A digital business model offering bundled, connected services to deepen customer lock-in and add value.

Access-Over-Ownership Model

A digital business model where customers pay to rent or use a service or physical asset rather than owning it.

Hidden Revenue Model

A digital business model offering a free product to end users while monetizing through user data or backend services.

Experience Model

A digital business model where software and digital experiences are layered on top of physical products.

Open Source Model

A digital business model providing free access to software code while earning revenue through paid support and specialized enterprise services.

Crowdsourcing Model

A digital business model powered and sustained by contributions, content, or funding provided by the crowd.

Service-ification of Products

A digital transformation trend where physical goods gain ongoing digital revenue streams through attached software and services.