Digital Systems Exam 1

John Locke was known as

father of liberalism

John Locke believed…

people own the outcomes of their labor (people work because money)

Adam Smith’s invisible hand

individuals and businesses will determine what to buy/sell, any attempt to regulate this will result in inefficiencies

Adam Smith Believed…

government intervention hinders innovation, and wealth of a nation is determined by individuals of that nation

Adam Smith’s 3 causes of increased efficiency

individual specialization, decrease space between tasks, increase individual productivity through machines

What did Frederic Taylor Believe?

When the company is successful, its employees are successful.

Frederick Taylor’s 4 pillars of scientific management

every element should be studied for improvement, workers should be scientifically selected/recruited, Managers should cooperate with workers, managers should work as hard as employees

What did Fayol Believe?

managers have five major roles, including planning, organizing, staffing, directing, and controlling. According to Henri Fayol, successful managers build a team-spirit (esprit de corps).

Henri Fayol’s 14 guiding principles

division, authority, discipline, unity of command (every employee must only report to 1 person), unity of direction (any objective has 1 person of authority), Subordination of individual interest, Remuneration, Centralization/decenterilization, Scalar chain, order, equity, Stability of tenure, initiative, and Esprit de corps

Max Webster Believed…

efficient organizations are best described as bureaucracies (management is supported by rules & regulations)

Max Webster’s 9 principles

specialization, recruitment based on competency, fairness in selection, employment stability, hierarchy, discipline and authority, supremacy of abstract rules, authority of office, and political neutrality

Mary Parker Follett Believed…

Relationships and communication are key. Competence & expertise are sources of power in a company.

What did Mary Parker Follett think about employee/manager conflict?

it can be resolved through communication and integration of ideas

Hawthorne effect/observer effect

people are more productive when they believe they are being observed

Elton Mayo believed…

employees need to feel that they are of significant economic value (Emphasized the importance of individual human behavior on productivity)

also did the Hawthorne effect

Douglas McGregor Believed…

behavior of managers depended on their attitudes towards their employees (X and Y managers)

X managers

believe that employees are cunts and need to be controlled

Y managers

believed workers could be trusted and empowered

Peter Drucker believed

Best companies are decentralized, outsource work they aren’t specialized in, and focus on areas that have a comparative advantage. (Do what you do best, and outsource the rest)

Mainframes

reliable systems that are used for database operations (inventory control, reservation services and bank records.) Large corporations processing HELLA shit, more secure than PCs, and easily add/change system capacity

Client-server Systems

method for personal computers to access servers so employees can share resources (Server = dedicated computer inside the organization, Clients connect through the wifi or remotely)

Cloud computing

Companies rent the amount of space they need, lowers hardware costs, and is available anytime and anywhere

Decision support systems (DSS)

assist managers with organizational processes when a large number of inputs are changing rapidly (ex. Company needs to assign gates to incoming aircraft. Also used in farming and medical field)

Supply Chain Management Systems (SCMS)

consists of planning, sourcing, manufacturing, assembly, and logistics (delivery/return)

Bullwhip effect

refers to the situation where a small error in demand forecasting results in large errors in inventory & production

Human Resource system (HRS)

forecasting, recruiting, selection, hiring, evaluation, training, retention, scheduling, and compensation

Marketing information systems (MKIS)

integrate numerous processes related to marketing management

Learning Management systems (LMS)

used to manage academic processes at educational institutions (examples: administering class activities and assignments, grade management, reporting student attendance and documenting student activity)

Executive Support System (ESS)

used to extract enterprise data and transform it into executive-level reports

Enterprise Resource Planning (ERP)

integrates the management of all aspects of an organization

Employee monitoring software

allows a network administrator to view all computer activity from a central location

Flextime

allows employees to better control their work schedules through flexible start and stop times

Merchant service aggregators

prevent fund reversals, such as when an item purchased with a credit card is returned, or if a customer disputes the validity of a credit card charge, resulting in lost processing fees and interest on the part of the acquiring bank.

What are some of the drawbacks of using an imprinter for a credit card transaction?

many possible answers, the imprinter relied on carbon copies of a transaction and could be lost and faded over time. It was difficult to verify a card

What are the biggest problems with the barter system?

a person with something to trade had to find someone else who wanted that product at that time and had something in return that the trader wanted at that exact time as well

What is a merchant service provider and what is a merchant service aggregator?

the merchant service provider has a relationship with an acquiring bank that is authorized to process the payments.

Paypal

through PayPal, account holders can send or receive payments, convert currency, and accept debit and credit card payments

Stripe

initially just processed credit cards for apps like lyft, and then expanded into the POS market

Square

began with card readers that could easily connect to mobile devices, have a cheap POS system for many in person stores (square stand)

Quickbooks

dominant financial services software for small businesses in the United States

3 pieces of Decision Support Systems

Data, decision-making model & user interface

Major categories of Executive Support Systems

operations management, financial management, marketing, human resources management (HRM), and supply chain management (SCM).

HRM System role

personnel requirements forecasting, recruiting, selection, hiring, evaluation, training, retention (re-assignment, promotion, and grievance management), scheduling, and compensation (payroll and benefits administration),

Elements of Supply Chain management system

order fulfillment, supplier relationship and customer relationship

What is the difference between an MQL and an SQL?

MQLs (marketing qualified leads) are curious while SQLs (sales qualified leads) are ready to take action.

Elements of EIS include

user interface, a communications system, and a software infrastructure with decision-making capability.

5 major categories in an EIS

operations management, financial management, marketing, human resources management (HRM), and supply chain management (SCM)

Manufacturing operations management: (MOM)

part of the ESS that focuses on the processes involved in producing goods and services for sales. Similar to operations management systems.

Operations management system

part of the ESS that focuses on the processes involved in producing goods and services for sales

Enterprise Resource Planning (ERP)

incorporates a suite of business applications into a unified system.

What is the benefit of a Cloud-based ERP system?

Cloud-based ERP systems are easily scalable to meet the needs of relatively small companies.

Areas covered by HRP

personnel requirements forecasting, recruiting, selection, hiring, evaluation, training, retention (re-assignment, promotion, and grievance management), scheduling, and compensation (payroll and benefits administration),

What does supply chain management software do?

helps managers ensure the efficient flow of goods and services from the initial extraction of raw materials to customer distribution and receipt of payment by anticipating issues, such as increased demand or production slowdowns, to institute accommodations quickly.

Basic components of a SCM

supplier relationship management, order fulfillment management, and customer relationship management

Supplier relationship

may include the product development, manufacturing, purchasing, and inventory processes.

Order fulfillment

logistics / warehousing elements.

CRM

includes payment/demand, customer service, and returns.

Main functions of a CRM

marketing, customer service and sales

ERP

Centralized database, user friendly/easy access to data, and customizable to meet needs. Allows modules to communicate with each other 24/7

Benefits of an ERP

Cuts back on communication time and errors from miscommunication. Increases collaboration, competitive advantage to companies, and customizable

module approach

allows businesses to acquire specific modules that are relevant to its operations.

ERP drawbacks

people are more inclined to stay with a previous system, high cost, learning curve and maintenance costs

SaaS-based management system (Software as a Service)

keeps hardware and software on the premises and stores a custom management system on the Cloud.

Integrated with an ERPs

CRMs, business intelligence (BI), e-commerce, and project management

Benefits of ERP & Financial Management systems

increase financial report speed, visibility of activities/reports, structure and reports available at any time

ERP & Accounting systems

Integration of accounting software with ERP assists in creating links between financial data and causality.

ERP & HRM

An HRM module allows management to retrieve and analyze HR-related data in a central location.

ERP & TPS Advantages

saves time, reduces human error, easy cashflow reporting, reduce labor costs

ERP & PM

Integration provides a centralized location and allows managers to review planning, management, and analysis of a project, no matter what phase the project is in.

CAD

computer aided design

Redundancy of data

duplicates of data in the system (not present in an ERP, different silos have different information)

Revlon’s issues when they merged with SAP

they had a ton of moving parts and were also trying to merge with a different company