BTM 211: Innovation, Value, and Strategy Flashcards

This set of flashcards covers vocabulary and key concepts from the Management Information Systems lecture on innovation, business value, value chains, frameworks, and governance.

Efficiency

A measure of productivity where business processes are accomplished either more quickly or with fewer resources; often described as "doing things right."

Effectiveness

A measure of productivity where an organization considers offering new or improved goods or services that the customer values; often described as "doing the right things."

Value Chain

A network of value-creating activities consisting of primary and secondary activities where each step adds value to a product or service.

Upstream (Backward integration)

When an organization expands into activities related to the basic raw materials of a process.

Downstream (Forward integration)

When an organization expands into activities closer to the customer end, such as a mining company cutting its own diamonds.

Primary Activities

Activities where value is added directly to the product, including inbound logistics, operations, outbound logistics, marketing and sales, and service.

Inbound Logistics

A primary activity involving the receiving and storing of inventory.

Outbound Logistics

A primary activity involving the retrieving and distributing of the product or service to the customers.

Support Activities

Range of activities which contribute indirectly to production, sale, and service, including firm infrastructure, human resources, technological development, and procurement.

Sustaining Technologies

Changes in technology that maintain the rate of improvement in customer value.

Disruptive Technologies

Technologies that introduce a new package of attributes to accepted mainstream products, such as the MP3 file format.

Switching Costs

The strategy of locking in customers by making it difficult or costly for them to switch to a different provider.

Ubiquitous

A term describing information technology that exists everywhere; as it becomes more common, the competitive advantage it provides may decrease.

IT Strategic Alignment

The continuous process of matching organizational objectives with technology, measured by the overlap between IT department missions and overall business plans.

Enterprise Architecture

The framework for all the computers, systems, and information management that supports organizational services.

Balanced Scorecard

A strategic planning and management system used to align business activities to the vision of the organization through four perspectives: Education and Growth, Internal Process, Customer Relationship, and Financial.

ITIL (Information Technology Infrastructure Library)

A framework designed to standardize the selection, planning, delivery, and support of IT services to turn IT into a business service partner.

ISO 38500

A standard for the Corporate Governance of IT that provides guidance to leadership on creating effective, efficient, acceptable, and secure use of IT.

TOGAF (The Open Group Architecture Framework)

A framework for enterprise architecture that provides an approach for designing, planning, implementing, and governing an enterprise IT architecture across business, application, data, and technical domains.

Governance

The development of consistent, cohesive management policies and verifiable internal processes for technology and related services.

Budget Measures Act (Bill $198$)

Canadian legislation that requires management to create internal controls to produce reliable financial statements and protect organization assets.

Sarbanes-Oxley Act (SOX)

United States legislation intended to prevent corporate frauds by requiring managers to create internal controls for financial statements.

COBIT (Control Objectives for Information and Related Technology)

A framework for IT governance and management developed by ISACA to bridge the gap between technical issues, business risks, and control requirements.

Three-way Match

A control process that verifies purchase orders, receiving reports, and invoices match before payment is made to a vendor.

Information Systems Audit

The examination and verification of a company's information resources used to collect, store, process, and retrieve information, analogous to a financial audit.