OMIS 3500 FINAL

database

group of related files

file

group of records of same type

record

group of related fields

field

group of characters as word(s) or numbers

- describes an entity (person, place, or thing on which we store informations)

attribute

each characteristic or quality, describing entity

Relational DBMS

represents data as two dimensional tables

- each table contains data on entities and attributes

table

grids of columns and rows

rows(tuples)

records for different entries

fields (columns)

represents attribute for entity

key field

field used to uniquely identify each record

primary key

field in table used for key fields

foreign key

primary key used in second table as look-up field to identify records from original table

Operations of a Relational DBMS

select, join, project

Select

Creates subset of data of all records that meet stated criteria

Join

Combines relational tables to provide user with more information than available in individual tables

Project

Creates subset of columns in table, creating tables with only the information specified

7 COMPONETS OF IT INFRASTRUCTURE

1. Hardware Platforms

2. Enterprise and Software Applications

3. Operating System Platforms

4. Data Storage and Management

5. Network and Telecommunications platforms

6. Internet Platforms

7. Customer and System Integration Services

Enterprise Systems

- enterprise resource planning systems (ERP)

- suite of integrated software models and a common central database
– collects data from many divisions of firm for use

in nearly all of firm’s internal business activities

– information entered in one process is

immediately available for other processes

3 ENTERPRISE SYSTEMS

1. Enterprise Software

2. Supply Chain

3. Customer Relationship Management

Enterprise Software

built around thousands of predefined business processes that reflect best practices.

-to implement —> FIRMS SELECT FUNCTIONS OF SYSTEMS THEY WISH TO USE.

BUISNESS VALUE OF ENTERPRISE SYSTEMS

-increase operational efficiency

- provide firm wide information for decision making
– enable rapid responses to customer requests for

information or products

– include analytical tools to evaluate overall

organizational performance

Supply Chain

network of organizations and processes for: procuring materials, transforming them into products, and distributing products.

Upstream Supply Chain

firm's suppliers, supplier's suppliers, processes for managing relationships with them.

Downstream Supply Chain

organizations and processes responsible for delivering products to customers.

Supply Chain Management

Inefficiencies cut into a company's operating costs (up to 25%)

Just-In-Time Strategy

components arrive as needed, finished goods ship after leaving assembly line.

Safety Stock

buffer for lack of flexibility in supply chain

Bullwhip Effect

information about product demand gets distorted as it passes from one entity to the next across supply chain.

BUSINESS VALUE FROM SUPPLY CHAIN MANAGEMENT SYSTEMS

-match supply to demand; reduce inventory

- improve delivery service

- speed product time to market

- use assets more efficiently

– reduced supply chain costs lead to increased

profitability

– increase sales

Supply chain costs can be ____% of Operating Budgets

75

Customer Relationship Management

-knowing the customer

- in large businesses, too many customers and too many ways customers interact with firms.

CRM Systems...

• capture and integrate customer data from all over organization.

• consolidate and analyze customer data

• distribute customer information to various systems and customer touch points across enterprise

• provide single enterprise view of customers

BUSINESS VALUE FROM CUSTOMER RELATIONSHIP MANAGEMENT SYSTEMS

-increased customer satisfaction

- reduced direct-marketing costs

- more effective marketing
– lower costs for customer acquisition/retention

– increased sales revenue

Churn Rate

Number of customers who stop using or purchasing products or services from a company.

- indicator of growth or decline of firm's customer base

Ecommerce

use of the internet and web to transact business

• Began in 1995 and grew exponentially; still stable even in a recession.

• Companies that survived the dot-com bubble now thrive.

the new ecommerce

social, mobile, local

8 UNIQUE FEATURES OF INTERNET AND WEB AS COMMERCIAL MEDIUM **

1. Ubiquity

2. Global Reach

3. Universal Standards

4. Richness

5. Interactivity

6. Information Density

7. Personalization/Customization

8. Social Technology

1 Ubiquity

internet/web technology available everywhere.

• Effect:

  • marketplace removed from temporal, geographic locations to become "marketspace"

  • enhanced customer convenience and reduced shopping costs

• Reduces transaction costs :

  • costs of participating in market

2 Global Reach

The technology reaches across national boundaries, around earth.

• EFFECT:

  • commerce enabled across cultural and national boundaries seamlessly without modification

  • marketspace includes, potentially, billions of

    consumers and millions of businesses worldwide

3 Universal Standards

one set of technology standards: internet standards.

• Effect:

  • Disparate computer systems easily communicate with one another

  • Lower market entry costs—costs merchants must pay to bring goods to market

  • Lower consumers’ search costs—effort required to find suitable products

4 Richness

Supports video, audio, and text messages

• Effect:

  • possible to deliver rich messages with text, audio, and video simultaneously

  • video, audio, and text marketing messages can be integrated into single marketing message and consumer experience

5 Interactivity

the technology works through interaction with the user.

• Effect:

  • consumers engaged in dialog that dynamically adjusts experience to individual

  • consumer becomes co-participant in process of

    delivering goods to market

6 Information Density

Large increases in information density—the total amount and quality of information available to all market participants

• Effect:

  • greater cost and price transparency.

  • enables merchants to engage in price discrimination

7 Personalization/Customization

technology permits modifications of messages, goods

• Effect:

  • personalized messages can be sent to individuals and groups

  • products and services can be customized to individual preferences

8 Social Technology

this technology promotes user content generation and social working.

• Effect:

  • new internet social and business model enable user creation and distribution, supports social networks

  • many-to-many model

EFFECT of the INTERNET on the MARKETPLACE

• Reduces information asymmetry

• Offers greater flexibility and efficiency because of:

  • Reduced search costs and transaction costs

  • Lower menu costs

  • Greater price discrimination

  • Dynamic pricing

• May reduce or increase switching costs

• May delay gratification: effects dependent on product

• Increased market segmentation

• Stronger network effects

• More disintermediation

Digital Goods

goods that can be delivered over a digital network.

• cost of producing first unit is almost entire cost of product.

• costs of delivery over internet very low

• marketing costs remain the same; pricing highly

  variable

• industries with digital goods are undergoing

  revolutionary changes (publishers, record labels, etc.)