Chapter 1 and 2

Information Age

the present time where infinite facts are widely available to anyone with a computer. Ex. Amazon or Netflix

Internet of things

Interconnected internet enabled devices can collect and share data without human intervention

Machine to machine

refers to devices that connect directly to other devices

Data

Raw facts that describe the characteristics of an event or object.

Big data

A collection of large complex datasets, including structured and unstructured data, which

cannot be analyzed using traditional database methods and tools.

4 Characteristics of big data

Variety, Veracity, Volume, Velocity.

Variety

Different forms of structured and unstructured data. Ex. Spreadsheets, databases, emails

Veracity

Uncertainty/Untrustworthiness of data including biases, noise, abnormalities

Keep data clean and implement process to keep out dirty data from systems

Volume

Scale of data

Massive volume created by machines and networks generated

Big data tools used for analyzation

velocity

Analysis of streaming data as it travels the internet

Analysis of social media messages spreading daily

Structured Data

defined length, type, and format. Ex. Numbers, dates, customer address usually stored in spreadsheet/databse

Machine generated data

created by a machine without human intervention

Human generated data

data that humans, in interaction with computers, generate. Ex. gaming data/input data

20% of data that surrounds us

unstructured data

doesn’t have defined length or format

usually freeform like e-mails, tweets, texts

90% of data that surrounds us

Machine generated: satellite imaging, atmosphere data

Information

Data converted into meaningful and useful context helping to inform business decisions

Computers need data, humans need info

Dynamic report

changes automatically during creation

ex. stock market or inventory

Static report

created once based on data that does not change

ex. sales report, salary report

Business Intelligence

Info collected from multiple sources like customers or suppliers that analyze patterns for strategic decision making

incorporates multiple variables to anticipate performance

Data Analyst

Collects data to uncover patterns and provide interpretations understood by stakeholders and help strategic business decision making

Skills: Understand math and statistics, coding skills, Business area subject matter expertise

Data Scientist

Data analyst focuses on interpretation while data scientist extracts knowledge from data to using statistical analysis and data mining to identify future patterns and market changes, etc.

analytics

The science of fact-based decision making.

business analytics

transforming data into insight for making better decisions.

4 categories of analytics

descriptive, diagnostic, predictive, prescriptive

Descriptive Analytics

describes past performance and history, allows to spot trends

Diagnostic analytics

examines data or content to answer the question “why did it happen”

determine cause of positive or negative outcome

Predictive analysis

extracts info from data to predict future trends and identify behavioral patterns =proactive action

Prescriptive analytics

creates models indicating the best decision to make or course of action to take

can see potential problems and stay ahead of industry trends

Knowledge

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

Knowledge assets

Knowledge/intellectual capital in the minds of members, customers, and colleagues

Knowledge Worker

ability to interpret and analyze information.

Knowledge facilitator

acquire and catalog the knowledge assets in an organization

Business Unit

segment of a company ex. marketing

Data Silo

when one business unit is unable to freely communicate with other business units making it difficult or impossible for organizations to work cross-functionally.

Data Democratization

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

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

Feedback

Information that returns to its original transmitter and modifies the transmitter’s actions

helps maintain stability of system

MIS

business function, such as accounting, which moves information about people, products, and processes across the company to facilitate decision making and problem solving

Value Added

the difference between the cost of inputs and the value price of outputs.

Business Strategy

strategy that achieves specific set of goals like increasing sales or decreasing costs

Stakeholder

A person or group that has an interest or concern in an organization

Drive business strategies

Ex. Investors, suppliers, employees, customers, gov’t, community

Competitive Advantage

A feature of a product or service on which customers place a greater value than they do on similar offerings from competitors

usually temporary

first mover advantage

Occurs when a company can significantly increase its market share by being first with a new competitive advantage.

Competitive Intelligence

Gathering information about the competitive environment, including competitors’ plans, activities, and products, to improve a company’s ability to succeed

SWOT Analysis

-Potential internal strengths (Helpful)

-Potential internal weaknesses (Harmful)

-Potential external opportunities (Helpful)

-Potential external threats (harmful)

Porters five forces model definition

Analyzes the competitive forces within the environment in which a company operates to assess the potential for profitability in an industry.

Five forces model includes

-Buyer Power: Power of customers to drive down price. Combated with switching costs (cost making customer reluctant to switch to new product) and loyalty programs

-Supplier Power: Power of suppliers to drive up prices of materials. Consists of supply chain

-Threat of substitute products or services: High when there are many alternatives to a product or service and low when there are few alternatives from which to choose

-Threat of new entrants: High when it is easy for new competitors to enter a market and low when there are significant entry barriers to joining a market. Includes entry barrier (Product competitors must offer the same for survival)

-Rivalry Among existing competitors: The main threat, High when competition is fierce in a market and low when competitors are more complacent. Includes product differentiation (a company develops unique differences in its products or services with the intent to influence demand.)

Porter’s 3 generic strategies

can be applied to any business, product, or service

-Broad market and low cost: Walmart

-Broad Market High cost: Neiman Marcus

-Narrow market low cost: Payless

-Narrow market high cost: tiffany and co

Value chain Analysis

Views a firm as a series of business processes that each add value to the product or service.

-Inbound logistics: acquires raw material distributes to manufacturing

-Operations: transforms raw materials into goods and services
-Outbound logistics: distributes goods and services to customers
-Marketing and sales: promotes, prices, and sells products to customers
-Service: provides customer support after the sale

Support value activities include: Firm infrastructure, HR, tech development, and procurement

Business Process

Standardized set of activities that accomplish a specific task, such as processing a customer’s order.

Digital value Chain

Digitizes work across primary and supporting activities.