Chapter 2

Management Information Systems (MIS)

The development and use of information systems to help a business achieve its goals.

Information System (IS)

A group of components that interact to produce information, specifically combining people and the procedures they use to make technology work for business.

Five components of computer-based information systems

The elements that interact to produce information: Hardware, Software, Data, Procedures, and People.

What is a key characteristic of contract manufacturing?

Production is outsourced to third-party firms, so the company does not own the manufacturing plants or directly employ production workers.

What are PDAs?

Personal Digital Assistants are handheld devices that manage personal information and communicate with other systems.

Point-of-sale-system (POS)

A transaction processing system used by Zara to capture customer purchase information and transmit data to central databases in real time.

Quantitative Data (Zara POS)

Information gathered from stores regarding what customers ask for, buy, try on but do not buy, and complain about.

Qualitative Data (Zara POS)

Data collected via handheld devices regarding color or size preferences, style questions, and local tastes.

Vertically Integrated

A business model where a company (like Zara) controls its own supply chain, including design and manufacturing.

What is an omnichannel in business?

When a company uses multiple sales and communication channels (like in-store, website, app, and social media) that are fully connected so customers get a consistent experience no matter where they interact with the company.

Digital Transformation failure rate

According to the lecture, $72\%$ of firms are failing at digital transformation.

Market Awareness

The process of scanning the market and technology for opportunities and threats to drive strategic success.

Inditex

The multi-brand empire that includes Zara and has recently invested extensively in e-commerce and online-store integration.

Value Chain

A series of activities that a company performs to deliver a valuable product or service to the market, encompassing everything from design to production to marketing.

What is a greige good?

Goods to be further customized according to the designer's or manager's specifications

What is the purpose of logistics?

Coordinating and enabling the flow of goods, people, information, and other resources among locations

What is showrooming?

The concept where customers browse at physical retailers, but purchase products from lower-cost online rivals