ISOM Chapter 1

Information Age

The present time, during which infinite quantities of facts are widely available to anyone who can use a computer.

Fact

The confirmation or validation of an event or object.

Digital Age

The modern era where digital technology, the Internet, and data-driven innovations shape how people live, work, and communicate.

Fourth Industrial Revolution

The blending of the digital, physical, and biological worlds with rates of change operating at hypervelocity.

Internet of Things (IoT)

Any device connected to the Internet with the goal of enhancing performance with human intervention.

Machine-to-Machine (M2M)

Two or more connected devices interacting through wired or wireless connections to share data and perform analytics without human intervention.

IoT vs. M2M

IoT requires human intervention; M2M allows devices to communicate directly without human intervention.

Data

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

Structured Data

Data with a defined length, type, and format, such as numbers, dates, or customer addresses.

Machine-Generated Structured Data

Structured data created by a machine without human intervention.

Human-Generated Structured Data

Structured data that humans generate while interacting with computers.

Unstructured Data

Data that does not follow a specified format and is typically free-form, such as emails, text messages, and voicemails.

Machine-Generated Unstructured Data

Unstructured data created by machines, such as satellite images, scientific atmosphere data, and radar data.

Human-Generated Unstructured Data

Unstructured data created by humans, such as text messages, social media data, and emails.

Big Data

Large volumes of structured and unstructured data containing greater variety, increased veracity, and more velocity.

Variety

The different forms of structured and unstructured data.

Veracity

The uncertainty of data, including biases, noise, and abnormalities.

Volume

The scale or amount of data.

Velocity

The speed at which streaming data travels and is analyzed.

Environmental Data

Data about carbon emissions, energy consumption, water usage, waste, pollution, and other environmental factors.

Social Data

Data related to workforce diversity, gender equity, human rights, and similar social factors.

Governance Data

Data related to corruption, labor practices, board composition, and other governance factors.

Information

Data converted into a meaningful and useful context.

Variable

A data characteristic that stands for a value that changes or varies over time.

Report

A document containing data organized in a table, matrix, or graphical format that allows users to understand information.

Dynamic Report

A report that changes automatically as the underlying data changes.

Static Report

A report created once using data that does not change automatically.

Business Intelligence (BI)

Information collected from multiple sources that analyzes patterns, trends, and relationships for strategic decision making.

Analytics

The systematic computation and analysis of data to discover, interpret, and communicate meaningful patterns.

Algorithm

A step-by-step procedure or set of rules for solving a problem or accomplishing a task.

Business Analytics

The scientific process of transforming data into information for making data-driven business decisions.

Business Intelligence vs. Business Analytics

BI collects, organizes, and presents data about past/current performance; Business Analytics uses statistical and computational methods to interpret patterns, predict outcomes, and recommend actions.

Descriptive Analytics

Describes past performance and history; answers "What happened?"

Diagnostic Analytics

Examines data to determine why something happened; answers "Why did it happen?"

Predictive Analytics

Uses data to predict future trends and identify behavioral patterns; answers "What might happen next?"

Prescriptive Analytics

Creates models that recommend the best decision or course of action; answers "What should we do?"

Knowledge

Skills, experience, and expertise combined with information and intelligence that create a person's intellectual resources.

Knowledge Assets

The human, structural, and recorded resources available to an organization.

Knowledge Worker

An individual valued for their ability to interpret and analyze information.

Data Silo

Occurs when one department cannot freely communicate with other departments, making cross-functional work difficult or impossible.

Democratization

The action of making something accessible to everyone.

Data Democratization

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

System

A collection of parts that link together to achieve a common purpose.

Goods

Material items or products that customers buy to satisfy a want or need.

Services

Tasks people perform that customers buy to satisfy a want or need.

Production

The process in which a business takes raw materials and processes or converts them into a finished product for goods or services.

Systems Thinking

A way of monitoring the entire system by viewing multiple inputs being processed or transformed into outputs while continuously gathering feedback on each part.

Management Information Systems (MIS)

A business function that moves information about people, products, and processes across a company to facilitate decision making and problem solving.

CIO (Chief Information Officer)

Aligns technology and business strategy.

CTO (Chief Technology Officer)

Ensures technology performance and reliability.

CDO (Chief Data Officer)

Manages enterprise data.

CSO (Chief Security Officer)

Protects information security.

CPO (Chief Privacy Officer)

Oversees privacy and ethics.

CKO (Chief Knowledge Officer)

Captures and manages organizational knowledge.

Business Strategy

A leadership plan designed to achieve a specific set of goals or objectives.

Stakeholders

People and groups who are affected by or can affect a business's decisions.

Competitive Advantage

A product or service that customers value more than similar offerings from competitors.

First-Mover Advantage

Occurs when an organization can significantly impact its market share by being first to market with a competitive advantage.

SWOT Analysis

An analysis that evaluates Strengths, Weaknesses, Opportunities, and Threats to identify factors that work for or against business strategies.

SWOT: Strengths

Internal factors that give an organization an advantage.

SWOT: Weaknesses

Internal factors that put an organization at a disadvantage.

SWOT: Opportunities

External factors that could benefit an organization.

SWOT: Threats

External factors that could negatively affect an organization.

Porter's Five Forces Model

A framework used to evaluate industry structure and competitive pressure.

Buyer Power

The ability of buyers to affect the price of an item.

Switching Cost

Costs that make customers reluctant to switch to another product or company.

Loyalty Program

Rewards customers based on the amount of business they do with an organization.

Supplier Power

The ability of suppliers to influence the prices they charge for supplies.

Supply Chain

All parties involved in the procurement of a product or raw material.

Threat of Substitute Products or Services

High when many alternatives to a product or service exist and low when few alternatives exist.

Threat of New Entrants

High when it is easy for new competitors to enter a market and low when significant entry barriers exist.

Entry Barrier

A feature or requirement that competitors must offer or meet in order to successfully enter a market.

Rivalry Among Existing Competitors

High when competition is fierce in a market and low when competitors are more complacent.

Product Differentiation

When a company develops unique differences in its products or services to influence demand.

Cost Leadership

Competing primarily on price.

Differentiation

Competing by offering unique products or services.

Focus Strategy

Competing within a specific niche market.

Porter's Three Generic Strategies

The three strategies are Cost Leadership, Differentiation, and Focus.

SWOT vs. Five Forces vs. Three Generic Strategies

SWOT evaluates internal/external factors; Five Forces evaluates industry competition; Three Generic Strategies helps choose a competitive strategy.