Business Driven Information Systems Chapter 1

Chapter 1

Internet of Things (IOT)

is a world where interconnected, Internet-enabled devices or "things" can collect and share data without human intervention

Core Drivers of Information Age

Data
Information
Business Intelligence
Knowledge

Data

Raw facts that describe the characteristics of an event or objects
Ex. Order date
Amount sold
Customer Number
Quantity Ordered

Information

Data converted into a meaningful and useful context
Ex. Best/worst selling product
Best/ worst customer

Business Intelligence

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

ex.Lowest sales per week compared to the economic interest rates
-best-selling product by month compared to sports season and city team wins and loses

Knowledge

The skills, experience and expertise, coupled with information and intelligence, that creates a person's intellectual resources

ex.choosing not to fire a sales representative who is underperforming knowing that person is experiencing family problems
-listing products that are about to expire first on the menu or creating them as a daily special to move the product

Predictive Analytics

part of BI which extracts information from data and uses it to predict future trends and identifying behavioral patterns

Knowledge Workers

individuals valued for their ability to interpret and analyze information

Departmental Companies

- Accounting
- Finance
- Human resources
- Marketing
- Operations management
- Sales

Accounting

records, measures, and reports monetary transactions
ex.Transactional data
-purchasing data
-payroll data
-tax data

Finance

deals with the strategic financial issues, including money, banking, credit, investments, and assets
ex. Investment data
-monetary data
-reporting data

Human resources

Maintains policies, plans, and procedures for the effective management of goods or services
ex.Employee data
-promotion data
-vacation data

Marketing

Supports sales by planning, pricing, and promoting goods and services
ex.Promotion data
-sales data
-advertising data

Operations management

Manages the process of converting or transforming resources into goods or services
ex.Manufacturing data
-distribution data
-production data

Sales

performs the function of selling goods or services
ex. Potential customer data
-sales report data
-commission data
-customer support data

Maintain Transactional Data

Sales and Marketing

Maintain Monetary Data

Finance and Accounting

Mantain Production Data

Operations Management

Maintain Employee Data

Human Resources

System

a collection of parts that link to achieve a common purpose

Goods

are material items or products that customers will buy to satisfy a want or need
ex. cars
-groceries
-clothing

Services

tasks people perform that customers will buy to satisfy a want or need
ex. teaching
-waiting tables
-cutting hair

Production

the process by which a business processes raw materials or converts them into a finished product
Input\>Process\>Output

Productivity

the rate at which goods and services are produced based on the total output given total inputs

Systems Thinking

a way of monitoring the entire system by viewing multiple inputs being processed or transformed to produce outputs while continuously gathering feedback on each part

Feedback

information that returns to its original transmitter (input, transform, output) and notifies the transmitter's actions

Management information systems

a business function, like accounting and human resources, which moves information about people, products, and processes across the company to facilitate decision making and problem solving

CSO

Chief Security Officer
Responsible for ensuring the security of business systems and developing strategies and safeguards against attacks by hackers and viruses

CTO

Chief Technology Officer
Responsible for ensuring the speed, accuracy, availability, and reliability of the MIS

CPO

Chief Privacy Officer
Responsible for ensuring the ethical and legal use of information within a company

CIO

Chief Information Officer
Responsible for 1. Overseeing all uses of MIS and 2. ensuring that MIS strategically aligns with business goals and objectives

CKO

Chief Knowledge Officer
Responsible for collecting, maintaining, and distributing company knowledge