3330 Chapter 1 Notes

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

Internet of Things (I͏o͏T)

Any device connected to the Internet with the goal of enhancing performance without human intervention

Machine-to-Machine (M2M)

Two or more connected devices interacting via wireless or wired connections with the goal of data sharing and analytics without human intervention

Data

Raw facts that describe the characteristics of an event or object

Big Data

Large, volumes of data—both structured and unstructured—containing greater variety, increased veracity, and more velocity

Variety

Different forms of structured and unstructured data

Veracity

The uncertainty of data, including biases, noise, and abnormalities

Volume

The scale of data

Velocity

The analysis of streaming data as it travels around the Internet

Structured data

Has a defined length, type, and format and includes numbers, dates, or strings such as Customer Address format

Machine-generated structured data

Created by a machine without human Intervention

Human-generated structured data

Data that humans, in interaction with computers, generate

Unstructured data

Not defined, does not follow a specified format, and is typically free-form text such as emails, Twitter tweets, and text messages does not follow a specified format

Machine-generated unstructured data

Such as satellite images, scientific atmosphere data, and radar data

Human-generated unstructured data

Such as text messages, social media data, and emails

STRUCTURED DATA

Sensor data

Weblog data

Financial data

Click-stream data

Point of sale data

Accounting data

UNSTRUCTURED DATA

Satellite images

Photographic data

Video data

Social media data

Text message

Voice mail data

business managers

fundamental role is to be able to take the data and analyze it to find information to make great business decisions

Information

Data converted into a meaningful and useful context

Variable

A data characteristic that stands for a value that changes or varies over time

Report

A document containing data organized in a table, matrix, or graphical format allowing users to easily comprehend and understand information

Dynamic report

Changes automatically during creation

Static report

Created once based on data that does not change

Business intelligence

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

Business analytics

The scientific process of transforming data into information for making data-driven business decision

Descriptive analytics

Describes part performance and history

Diagnostic analytics

Examines data or content to answer the questions, “Why did it happen?”

Predictive analytics

Extracts information from data and uses it to predict future trends and identify behavioral patterns

Prescriptive analytics

Creates models including the best decision to make or course of action to take

Four Categories of Analytics

Descriptive Analytics

Diagnostic Analytics

Predictive Analytics

Prescriptive Analytics

Knowledge

Skills, experience, and expertise coupled with information and intelligence that creates a person’s intellectual resources

Knowledge assets

The human, structural, and recorded resources available to the organization

Knowledge worker

Individual valued for their ability to interpret and analyze information transformation from Data to Knowledge

Transformation from Data to Knowledge

Data > Information > Business Intelligence > Knowledge

Data silo

Occurs when one department is unable to freely communicate with other departments, making it difficult or impossible for organizations to work cross-functionally

Common Departments can

work independently and interdependently

Democratization

The action of making something accessible to everyone

Data democratization

The ability for data to be collected, analyzed, and accessible to all users

Production

The process where a business takes raw materials and processes them or converts them into a finished product for its goods or services

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

Management Information Systems (M͏I͏S)

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

Chief information officer (C͏I͏O)

information and ensures the strategic alignment of M͏I͏S with business goals and objectives

Chief data officer (C͏D͏O)

Responsible for determining the types of information the enterprise will capture, retain, analyze, and share

Chief technology officer (C͏T͏O)

Responsible for ensuring the throughput, speed, accuracy, availability, and reliability of information

C͏S͏O

 Chief security officer

C͏P͏O

 Chief privacy officer

C͏K͏O

Chief knowledge officer

Business strategy

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

• Developing new products or services

• Entering new markets

• Increasing customer loyalty

• Attracting new customers

• Increasing sales

Competitive advantage

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

First-mover advantage

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

S͏W͏O͏T analysis

evaluates an organization’s Strengths, Weaknesses, Opportunities, and Threats to identify significant influences that work for or against business strategies

Five Forces Model

Buyer Power, Supplier Power, Threat of New Entrants, Threat of Substitute products or services

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