ISA 235 Exam 1 Miami University

Drivers

data -> information -> business intelligence -> knowledge

Structured data

20%: clearly defined and searchable

Unstructured data

80%: stored in native form

Chief Information Officer (CIO)

responsible for overseeing all uses of MIS and ensuring that MIS strategically aligns with business goals and objectives

Business strategy

A leadership plan that achieves a specific set of goals or objectives

Porter's Five Forces Model

analyzes the competitive forces within the environment in which a company operates to assess the potential for profitability in an industry

Porter's 3 Generic Strategies

generic business strategies that are neither organization nor industry specific

1. broad cost leadership

2. broad differentiation

3. focused strategy

Business process

a standardized set of activities that accomplish a specific task, such as a specific process

Value chain analysis

Views a firm as a series of business processes that each add value to the product or service

System 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

ex. baking a cake

fact

the confirmation or validation of an event or object

Information age

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

Management Information Systems (MIS)

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

Competitive advantage

A product or service that an organization's customers place a greater value on than similar offerings from a competitor

Inbound logistics

Acquires raw materials and resources, and distributes

Operations

transforms raw materials or inputs into goods and services

Outbound logistics

distributes goods and services to customers

Marketing and sales

promotes, prices, and sells products to customers

Service

provides customer support

Support Value Activities

firm infrastructure, human resource management, technology development, procurement

Primary value activities

inbound logistics, operations, outbound logistics, marketing and sales, service

firm infrastructure

includes the company format or departmental structures, environment, and systems

Human Resource Management

provides employee training, hiring, and compensation

technology development

applies MIS to processes to add value

procurement

Purchases inputs such as raw materials, resources, equipment, and supplies

Value Chain Analysis

Decision Making Challenges

-analyzing large amounts of information

-needing to apply sophisticated analysis techniques

-make decisions quickly

Decision Making Process

1. problem identification

2. data collection

3. solution generation

4. solution test

5. solution selection

6. solution implementation

Common Company Structure

top --> bottom

coares --> grain

OLAP --> OLTP

Analytical --> transactional

Measuring decision making

CSF, KPI, Efficiency Metrics, Effectiveness Metrics

Critical Success Factors (CSF)

crucial steps companies perform to achieve their goals and objectives and implement their strategies

Key Performance Indicators (KPI)

The quantifiable metrics a company uses to evaluate progress toward critical success factors

Efficiency Metrics

throughput, transaction speed, system availability, information accuracy, response time

Effectiveness metrics

usability, customer satisfaction, conversion rates, financial

Project

A temporary activity a company undertakes to create a unique product, service, or result

Metrics

Measurements that evaluate results to determine whether a project is meeting its goals

Primary Types of MIS Systems for Decision Making

Using MIS to make business decisions

Model: simplified representation or abstraction of reality

help managers: calculate risk, understand uncertainty, change variables, manipulate time to make decisions

Using AI to make business decisions

AI: stimulates human intelligences such as ability to reason and learn

Intelligent system: various commercial applications of artificial intelligence

Managing Business Processes

Businesses gain a competitive edge when they minimize costs and streamline business processes

Customer facing process

Results in a product or service that is received by an organization's external customer

Business facing problem

invisible to the external customer but essential to the effective management of the business

Steps in Business Process Improvement

1. Document as-is process

2. Establish measures

3. Follow process

4. Measure performance

5. Identify and implement improvements

Web 1.0 vs. Web 2.0

Sustainable Technology

Produces an improved product customers are eager to buy

Bring Your Own Device (BYOD)

policy allows employees to use their personal mobile devices and computers to access enterprise data and applications

Disruptive technology

A new way of doing things that initially does not meet the needs of existing customers

WWW

Provides access to Internet information through documents including text, graphics, audio, and video files that use a special formatting language called HTML

Web browser

Allows users to access the WWW

Hypertext Transport Protocol (HTP)

the internet protocol web browsers use to request and display web pages using URL

Web 1.0

A term to refer to the WWW during its first few years of operation between 1991 and 2003

Ecommerce

the buying and selling of goods over the internet

Ebusiness

Includes ecommerce along with all activities related to internal and external business operations

Ebusiness Advantages

Improving Effectiveness

Clickstream data tracks the exact pattern of a consumer's navigation through a website

Clickstream data can reveal

Number of pageviews

Pattern of websites visited

Length of stay on a website

Date and time visited

Number of customers with shopping carts

Number of abandoned shopping carts

Banner ads

box running across a webpage that contains ad

Pop up ad

A small web page containing an advertisement

Associate program (affiliate program)

business generate commissions or royalties

Viral marketing

A technique that induces websites or users to pass on a marketing message

Website metrics include

visitor metrics, exposure, visit, hit

The 4 ebusiness models

Ebusiness model

A plan that details how a company creates, delivers, and generates revenues on the internet

Common ebusiness forms

Content providers, infomediaries, online marketplaces, portals, service providers, transaction brokers

search engine

Website software that finds other pages based on keyword matching similar to Google

search engine ranking

evaluates variables that search engines use to determine where a URL appears on the list of search results

Search Engine Optimization

Combines art along with science to determine how to make URLs more attractive to search engines resulting in higher search engine ranking

Ebusiness revenue models

Advertising fees

License fees

Subscription fees

Transaction fees

Value-added service fees

pay-per-click

generates revenue each time a user clicks on a link to a retailer's website

pay per call

generates revenue each time a user clicks on a link that takes the user directly to an online agent waiting for a call

Pay-per-conversion

generates revenue each time a website visitor is converted to a customer

Web 2.0

The next generation of Internet use - a more mature, distinctive communications platform characterized by three qualities: Collaboration, Sharing, Free

Characteristics of Bus 2.0

content sharing through open sourcing

user contributed content

collaboration inside the organization

collaboration outside the organization

Open system

Nonproprietary hardware and software based on publicly known standards that allows third parties to create add-on products to plug into or interoperate with the system

Source code

instructions written by a programmer specifying the actions to be performed by computer software

Open source

any software made available free for review and modification

Closed source

proprietary software licensed under exclusive legal right

User-contributed content

created and updated by many users for many users

native advertising

an online marketing concept in which the advertiser attempts to gain attention by providing content in the context of the user's experience

Reputation system

where buyers post feedback on sellers

Collaboration system

Tools that support the work of teams or groups by facilitating the sharing and flow of information

collective intelligence

Collaborating and tapping into the core knowledge of all employees, partners, and customers

knowledge management

Involves capturing, classifying, evaluating, retrieving, and sharing information assets in a way that provides context for effective decisions and actions

Explicit

anything that can be documented, achieved and codified with help of IT

Tacit

knowledge contained in peoples head

Collaborating Outside the Organization

crowdsourcing, asynchronous, synchronous

Crowdsourcing

the wisdom of the crowd

asynchronous communication

occurs when team members do not meet at the same time

synchronous communication

communication that occurs in real time

social media

Websites that rely on user participation and user-contributed content

social networking

the practice of expanding your business and/or social contacts by constructing a personal network

social network

application that connects people by matching profile information

Challenges of Business 2.0

1. technology dependence

2. information vandalism

3. violations of copyright and plagiarism

Information secrecy

the category of computer security that addresses the protection of data from unauthorized disclosure and confirmation of data source authenticity

information governance

a method or system of government for information management or control

Information Management

examines the organizational resource of information and regulates its definitions, uses, value, and distribution ensuring it has the types of data/information required to function and grow effectively

Information compliance

the act of conforming, acquiescing, or yielding information

Information Property

ethical issue that focuses on who owns information about individuals and how information can be sold and exchanged

Overview of Epolicies

ethical computer use policy, information privacy policy, acceptable use policy, email privacy policy, social media policy, workplace monitoring policy

Protecting Intellectual Assets