UNIT 1 EXAM REVIEW

What are the core drivers of the information age?

1) knowledge

2) business intelligence

3) information

4) data

What is knowledge?

Skills, experience, and expertise coupled with information and intelligence

What is business intelligence?

Information collected from multiple sources that analyzes patterns, trends, and relationships for strategic decision-making (involves multiple sources and analysis of patterns)

What is information?

Data converted into a meaningful and useful context

What is data?

Raw facts that describe the characteristics of an event or object

What is the Internet of things (IoT)?

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

What is machine-to-machine (M2M)?

Two or more connected devices, interacting via wireless or wired connections for data sharing, and analytics without human intervention

If a human has to type it in?

It’s traditional data entry

If the device sends the data itself?

It’s IoT/M2M

What is the key differentiate between traditional data entry and IoT/M2M?

Without human intervention

All competitive advantages are?

Temporary

What are the five steps to the cycle of advantage?

1) create advantage

2) competitors copy

3) advantage erodes

4) innovation required

5) innovation required

What is a business strategy?

A leadership plan that achieve a specific set of goals or objectives (e.g., entering new markets, increasing customer loyalty)

What is a competitive advantage?

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

What is the internal part of the swot analysis?

The organization

What is the external part of the SWAT analysis?

The environment

what are the helpful internal strengths of a swot analysis?

Core competencies, market leadership, cost advantages

What are the harmful internal weaknesses of a swot analysis?

Lack of strategic direction, obsolete technology, poor management

What are the helpful external opportunities of a swot analysis?

New markets, additional customer groups, legal changes

What are the harmful external threats of a swot analysis?

New competitors, substitute products, shrinking markets

Is obsolete technology a weakness or a threat?

Weakness because it is internal, a new competitor is a threat because it is external

What are porters five forces?

1) rivalry among existing competitors

2) threat of substitute products or services

3) buyer power

4) supplier power

5) threat of new entrants

What is threat of new entrants?

Strategy: create entry barriers

What is buyer power?

Strategy: reduce buyer power via loyalty programs

What is the threat of substitute products or services?

High when there are many alternatives

What is supplier power?

High power equals suppliers can charge more

What is rivalry among existing competitors?

High when competition is fierce

What are the three generic strategies?

1) cost leadership

2) differentiation

3) focused strategy

What are the two cost strategies of the three generic strategies?

Low cost and high cost

What are the two competitive scopes of the three generic strategies?

Narrow market and broad market

Organizations typically follow one of the three generic strategies when?

Entering a new market

What is cost leadership?

Low cost plus broad market (ex. Walmart)

What is differentiation?

High cost plus broad market (ex. Neiman Marcus)

What is focused strategy?

Nero market. Can be focused cost (Payless Shoes) or focused differentiation (Tiffany & Co)

What are the four executing strategy integration tools?

1) business process analysis (BPA)

2) enterprise resource planning (ERP)

3) customer relationship management (CRM)

4) supply chain management (SCM)

What is enterprise resource planning (ERP)?

Integrating the whole enterprise

What is supply chain management (SCM)?

The management of information that flows between an among activities in a supply chain to maximize total supply chain and corporate profitability

What is the downstream flow of SCM?

Products, services, and information

What is visibility of SCM?

Viewing all areas up and down the supply chain in real time

What is planning and execution of SCM?

Balancing demand and supply

What is the upstream flow of SCM?

Orders, information, payments, and returns

What are the core systems?

Customer relationship management (CRM) and enterprise resource planning (ERP)

What is the focus of CRM?

Front office operations

What is the goal of CRM?

Increasing customer loyalty and retention

What are the departments of CRM?

Sales, marketing, and customer service

What is the focus of ERP?

Back office and internal integration

What is the goal of ERP?

Enterprise wide view and consistency

What is the benefit ERP?

Eliminates information silos

Integration between CRM and ERP systems connects what?

The front office to the back office

What two systems are used to measure success?

Critical success factors (CSFs) and key performance indicators (KPIs)

CSF plus KPI equals what?

Measurement

What is CSF considered?

The goal

What is KPI considered?

The metric

CSFs are the?

What

KPIs are the?

How

What is critical success factors (CSF)?

The crucial steps companies performed to achieve their goals and objectives

What are key performance indicators (KPIs)?

The quantifiable metrics a company uses to evaluate progress toward critical success factors

What do CSFs do?

Create high-quality products, retain competitive advantages, reduce product costs, increase customer satisfaction

What do KPIs do?

Turnover rates, percentage of help desk calls answered, number of product returns, average customer spending

Efficiency MIS metrics

Descriptor: doing things right

Focus: using resources in an optimal way

Examples: speed, availability, throughput

Effectiveness MIS metrics

Descriptor: doing the right things

Focus: achieving goals and objectives

Examples: customer satisfaction, conversion rates

What is benchmarking?

Continuously measuring system results and comparing them to optimal system performance (benchmark values)

hard to benchmark

Product quality, customer satisfaction

Easy to benchmark

Payroll effectiveness, average sale

What are the 6 MIS roles and responsibilities?

Chief information officer (CIO), chief data officer (CDO), chief knowledge officer (CKO), chief technology officer (CTO), chief security officer (CSO), chief privacy officer (CPO)

What is the difference between a CIO and CTO?

The CIO aligns strategy; the CTO ensures speed and reliability

Chief information officer (CIO)

Overseas all uses of MIS aligns with business goals (strategic)

chief data officer (CDO)

Determining types of information to capture

Chief knowledge officer (CKO)

Distributing company knowledge

Chief technology officer (CTO)

Responsible for speed, accuracy, and reliability of MIS (technical)

Chief security officer (CSO)

Safeguards against hackers and viruses

Chief privacy officer (CPO)

Ethical and legal use of information

What are ethics?

Principles and standards that guide behavior toward other people

What is confidentiality?

Assurance that information remains available only to those authorized to view it

Does information have ethics?

No, only people do

What are E policies?

Policies meant to ensure ethical treatment of corporate data (e.g., ethical computer use policy)

What is privacy?

The right to be left alone and to have control over your personal possessions

What is digital trust?

Confidence in an organization’s ability to protect and secure data

What is the first line of defense in information and security defense?

People, the biggest security issue is often insiders (passwords, social engineering)

What is the second line of defense in information and security defense?

Technology (authentication, encryption, firewalls)

What are the threats of information security and defense?

Hackers and viruses

What are hackers?

Experts in technology who break into computers

What are viruses?

Software written with malicious intent (worms, Trojan horses, ransomware)

What are the two types of hackers?

White hat = testing

Black hat = malicious

Security solutions must consider risk to?

All devices, including IoT