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Data (Knowledge Hierarchy)

Raw, unorganized facts

Information (Knowledge Hierarchy)

Data becomes information when we give it context

Knowledge (Knowledge Hierarchy)

Information turns into knowledge when we analyze it and discover patterns or relationships

Wisdom( Knowledge Hierarchy)

The ability to use knowledge to make sound judgements and decisions

3 Elements of Information Systems

People, Process, Technology

People

The users who interact with the system, including the IT staff who manage it and the business users who use it to make decisions

Process

The raw facts and figures that the system collects, stores, and processes

Technology

The hardware, software, and networks that make up the system

Zack's Component-based View of Information System

Emphasizes that an information system isn't just about technology, but also about the processes and people involved

Data Component

Includes all the data used by the information system, whether it's stored in databases, files, or other formats

Procedures Component

Refers to the activities and procedures that transform data into useful information

Hardware Component

Involves the user interfaces and interactions that allow people to access and use the information system

Programs Component

Includes the hardware, software, and network infrastructure that support the information system

Human Component

Refers to the people who use, manage, and support the information system

How does automation move?

Human side to computer side

How does it move when there is an increasing degree of difficult of change?

Moves from computer to human side

Interconnectedness

IT architecture is seen as a network of interconnected components, including hardware, software, data, processes, and people

Emergence

Overall behavior and capabilities of the IT architecture emerge from the interactions of its individual components

Adaptation

IT architecture must be able to adapt and evolve over time to meet changing business needs and technological advancements

Governance

Essential to ensure that the IT architecture aligns with business goals, complies with regulations, and manages risks

Stakeholders

IT architecture involves multiple stakeholders, including IT professionals, business users, and executives

Three Perspectives on MIS

End-User, Expertise, Ensemble

End-User

Managerial level of organization, performance/productivity tracking, short term planning/forecasting

Expertise

Business analyst/consulting, accounting technologist, marketing technologist

Ensemble

Hardware, software, data, networking

Digital Strategy

Starts with disruption, triggers strategic response, fuels use of digital technologies, enables change in value creation paths (inhibits organizational barriers, enables organizational changes), generates negative or positive impacts

Disruptive Technology

Technologies that create market shocks and catalyze growth

Disruptive Technology Characteristics

Come to market with set of performance attributes existing customers don't value and over time, performance attributes improve to the point where they invade established markets

Innovator's Dilemma

A situation where established companies struggle to adopt disruptive technologies, even when they are aware of their potential

The Reasons of Why Big Firms Fail

Listening too closely to existing customers, focusing excessively on the current bottom line, ignoring emerging customer segments

Listening too closely to existing customers

Majority of a firm's current customers don't want the initially poor-performing new technology

Focusing excessively on the current bottom line

Disruptive technologies often have worse margins than the initially dominant incumbent offerings

Ignoring emerging customer segments

Big firms don't dedicate resources to developing the potential technology or nurturing the needs of a new customer basis

Value Discipilnes

Operational excellence, product leadership, customer intimacy

Operational Excellence

Aim to provide customers with reliable products or services at competitive prices with minimal inconvenience

Product Leadership

Strive to offer customers leading-edge products and services that consistently push the boundaries of innovation

Customer Intimacy

Tailor their products and services to the specific needs of individual customers

The Value Chain

A step by step look at all the activities a company performs to create and deliver a product or services to its customers

Primary Activities

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

Inbound Logistics

Getting raw materials and resources into the company

Operations

Turning those inputs into the final product or service

Outbound Logistics

Delivering the product or service to customers

Marketing and Sales

Engaging customers, pricing, promoting, and selling

Service

Providing customer support and maintenance

Support Activities

Firm infrastructure, human resource management, technology development, procurement

Firm Infrastructure

General management, planning, finance, and information systems

Human Resource Management

Recruiting, hiring, training, and developing employees

Technology Development

Research and development, new product, and process design

Procurement

Sourcing and purchasing materials and resources

Importance of the Value Chain

Identify competitive advantages, improve efficiency, strategic decision making

Switching Costs

The hassle, expense, or effort a customer experiences when they decide to switch from one product or service to another

Types of Switching Costs

Learning costs, information and data, financial commitment, contractual commitments, search costs, loyalty programs

Learning Costs

Having to learn a new system or interface

Information and Data

Losing valuable data or having to transfer it to a new system

Financial Commitment

Investments in equipment or software that would be lost if you switch

Contractual Commitments

Penalties for breaking a contract

Search Costs

Time and effort spent finding and evaluating a new alternative

Loyalty Programs

Losing accumulated rewards or benefits

Switching Costs Importance

Increase customer retention, create a competitive advantage, increase profitability

Networking Effects

Occur when the value of a product or service increases as more people use it

Types of Network Effects

Direct network effects, indirect network effects, two-sided network effects

Direct Network Effects

Value increases directly with the number of users

Indirect Network Effects

Value increases indirectly through complementary products or services

Two-Sided Network Effects

Value increases for two distinct groups of users

Porter's Five Forces of Industry

A framework that examines the interplay of five key forces that shape the competitive intensity and attractiveness of an industry

Porter's Five Forces

Rivalry among existing competitors, threat of new entrants, threat of substitute products or services, bargaining power of buyers, bargaining power of suppliers

Rivalry Among Existing Competitors

Looks at how intense the competition is between companies already in the industry

Threat of New Entrants

Examines how easy or difficult it is for new companies to enter the industry

Threat of Substitute Products or Services

Looks at the availability of alternative products or services that customers could switch to

Bargaining Power of Buyers

Examines the power that customers have to negotiate prices or demand better terms

Bargaining Power of Suppliers

Examines the power that suppliers have to raise prices or reduce the quality of their goods or services

Porter's Five Forces Importance

Assessing industry attractiveness, developing competitive strategies, making strategic decisions

Methods of Funding Information System

Allocation, chargeback, overhead

Allocation

Involves setting aside a portion of the IT budget to each business unit

Chargeback

Involves charging business units for the IT services they consume

Overhead

Involves distributing IT costs across different departments or business units within an organization

Moore’s Law

Chip performance per dollar doubles approximately every 18 months

Microprocessor

Part of the computer that executes the instructions of a computer program

Random-access memory (RAM)

Fast, chip-based volatile storage in a computing device

Volatile Memory

Storage that is wiped clean when power is cut off from a device

Nonvolatile Memory

Storage that retains data even when powered down

Flash Memory

Nonvolatile, chip-based storage

Solid State Electronics

Semiconductor-based devices

Semiconductor

Substance such as silicon dioxide used inside most computer chips that is capable of enabling and inhibiting the flow of electricity

Optical Fiber Line

High-speed glass or plastic-lined networking cable used in telecommunications

Parallel Computing

A type of computation where many calculations or processes are carried out simultaneously

Multicore Processors

Using multiple cores within a single processor to execute tasks in parallel

Grid Computing

Using a network of computers to work together on a common problem

Cluster Computing

Using a group of interconnected computers to work together as a single system

Supercomputers

Computers that are among the fastest of any in the world at the time of their introduction

Massively Parallel Processing (MPP)

Using a large number of processors to solve a problem simultaneously

Benefits of Parallel Computing

Faster processing, increased throughput, improved scalability, better resource utilization

Total Cost of Ownership

A comprehensive assessment of all costs associated with acquiring, deploying, using, and retiring IT hardware over its entire lifecycle

Implementation will include consideration of the following:

Original purchase price of the hardware, maintenance agreements, facilities and utility costs, installation costs, staffing costs, hardware upgrades, disposal fees for recycling or dumping

Infrastructure as a Service

Provides you with the basic building blocks of computing infrastructure - servers, storage, and networking - over the internet

Platform as a Service

Provides you with a platform for developing, running, and managing applications without the complexity of managing the underlying infrastructure

Software as a Service

Provides you with ready-to-use software applications over the internet

IaaS

Ideal for businesses that want maximum control over their infrastructure

PaaS

Ideal for developers who want to focus on building and deploying applications without worrying about infrastructure management

SaaS

Ideal for businesses that want to use software applications without the hassle of installation, maintenance, and upgrades