Comprehensive Business Information Systems and Strategy Overview

Digital firm

one is which all the organization's significant business relationships are digitally enabled, and key corporate assets are managed through digital means

Organizational culture

the fundamental set of assumptions, values, and the way of doing things that have been accepted by most members of the organization

Business model

describes how a company produces, delivers, and sells product or service to create wealth

Data

streams of raw facts

Information

data shaped into meaningful, useful form

Input

the collection of raw data from within the organization or environment

Processing

conversion, manipulation, and analysis of raw input into a form that is more meaningful to humans

Output

the distribution of processed information to the people who will use it

Feedback

output that is returned to the appropriate members of the organization to help them evaluate or correct input

Internet of Things

network of physical objects embedded with sensors, software, and other technologies enabling them to connect and exchange data with other devices and systems via the Internet

Big data

the extreme volume of data, the wide variety of data, and the velocity at which data must be processed

Cloud computing

a model of computing in which processing, storage, software, and other services are provided as a shared pool of resources accessed via the Internet

Machine learning

a type of AI that focuses on building computer systems that can learn and improve on their own through algorithms to identify patterns and relationships

Generative AI

tools such as ChapGPT, Google's Gemini, and Microsoft Copilot that can identify patterns and structures within data to generate new and original content

Management

one of the three areas that must be understood to use information systems effectively

Organization

one of the three areas that must be understood to use information systems effectively

Technology

one of the three areas that must be understood to use information systems effectively

Operational excellence

one of the six strategic business objectives firms invest heavily in information systems to achieve

New products, services, and business models

one of the six strategic business objectives firms invest heavily in information systems to achieve

Customer and supplier intimacy

one of the six strategic business objectives firms invest heavily in information systems to achieve

Improved decision making

one of the six strategic business objectives firms invest heavily in information systems to achieve

Competitive advantage

one of the six strategic business objectives firms invest heavily in information systems to achieve

Survival

one of the six strategic business objectives firms invest heavily in information systems to achieve

Operational management

one of the three levels of management

Middle management

one of the three levels of management

Senior management

one of the three levels of management

Sales and marketing

one of the four functional areas within an organization

Accounting and finance

one of the four functional areas within an organization

Human resources

one of the four functional areas within an organization

Manufacturing and production

one of the four functional areas within an organization

Business processes

the way a business organizes its workflows to produce a valuable product of service, the activities it uses to accomplish tasks, and the way it coordinates material, information, and knowledge among all employees

Collaboration

working with others to achieve share and explicit goals

Social business

the use of networking platforms, such as Facebook and X, as well as internal corporate business tools, to engage employees, customers, and suppliers to deepen interaction and enhance information sharing

TPS

Transaction Process Systems are used by operational managers to perform and record daily routine transactions necessary to conduct business

MIS

Management Information Systems serves middle management to provide reports on a firm's current performance and answers routine questions

DSS

Decision Support Systems are used by middle management and uses internal information from the TPS and MIS to support nonroutine decision making

ESS

Executive Support Systems are used by senior level managers to make nonroutine decisions incorporating external events

ERP

Enterprise Resource Planning System - integrates business processes in all functional areas into a single comprehensive data repository

SCM

Supply Chain Management System - manages relationships with suppliers, purchasing firms, distributors, and logistics companies to get the right number of products from their source to their point of consumption in the most efficient way

CRM

Customer Relationship Management System - helps manage relationships with customers

KMS

Knowledge Management System - supports the creation, capture, storage, and dissemination of expertise and knowledge

Value chain model

highlights specific activities in the business where competitive strategies can best be applied and where information systems are most likely to have a strategic impact

Primary activities

activities related to the production of a firm's products and services

Support activities

consist of activities related to the organizational infrastructure, i.e., administration and management, human resources, technology, and procurement

Benchmarking

involves comparing the efficiency and effectiveness of business processes to strict standards

Best practices

the most successful solution or problem-solving methods for consistently and effectively achieving a business objective that has been developed by a specific organization or industry

Michael Porter's Five Competitive Forces Model

Traditional competitors, Customers, Suppliers, Substitute products and services, New market entrants

Michael Porter's Four Generic Strategies

founded on scope (broad or narrow) and source (low-cost leader or differentiator)

Overall cost

a strategy focused on being the lowest cost producer in the industry

Overall differentiation

a strategy aimed at offering unique products or services that provide value to customers

Cost focus

a strategy that targets a specific market segment while maintaining a low-cost structure

Differentiation focus

a strategy that targets a specific market segment with unique products or services