MIS Exam 1

Chapter 1 Content

Business Driven Technology

Fact

The confirmation or validation of an event or object that is quantifiable.

Information age

Describes the world we are living in today. Allows organizations to quickly grow.

Internet of Things

Any device connected to the internet with the goal of enhancing performance without human intervention.

Data

Raw facts describing characteristics about events or objects

Structured data

Data stored in a traditional system such as a relational database or spreadsheet.

Unstrctured data

Data that is not defined and does not follow a specified format.

Machine-generated data

Data created by a machine without human intervention.

Human-generated data

Data that humans generate and input into computers.

Big data

large volume of data either structured or unstructured

Characteristics of big data

Variety, veracity, volume, and velocity.

Variety

Structured and unstructured data.

Veracity

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

Volume

The scale of data.

Velocity

The analysis of streaming data as it travels around the internet.

Snapshot

A view of data at a particular point in time.

Information

Data converted into meaningful and useful context.

Variable

Data characteristic which changes over time

Report

Document containing data organized in a table, matrix or graphical format allowing users to easily comprehend and understand information.

Static report

Report created once based on data that doesn’t change

Dynamic report

Report that changes automatically during creation

Business intelligence

Information from multiple sources to analyze patterns, trends, and relationships for strategic decision making.

Analytics

Science of fact based decision making.

Business Analytics

Scientific process of transforming data into insights for making better decisions.

Descriptive analtytics

Analytics that describes past performance and history.

Diagnostic analytics

Analytics that examines data and context to answer the question “Why did it happen"

Predictive analytics

Analytics that extracts info from data to predict future trends and identify behavioral patterns.

Prescriptive analytics

Analytics that creates models to aid in the decision making process

Knowledge

Skills, experience, and expertise coupled with information and intelligence to create a person’s intellectual resources

Knowledge assets

The human structural and recorded resources available to an organization

Knowledge worker

individuals valued for their ability to interpret and analyze information

Chapter 2 content

Identifying competitive advantages

Business strategy

A leadership plan achieving a specific set of goals or objectives

Competitive advantage

A product or service the organization’s customers place a greater value on than similar offerings from a competitor.

First-mover advantage

When an organization can significantly impact its market share by being first to market.

SWOT analysis

Evaluates an organization’s strengths, weaknesses, opportunities, and threats to identify significant influences working for or against strategies.

Buyer power

Ability of a customer to determine the price of a good or service.

Switching cost

Manipulating costs making customers reluctant to switch to another product

Loyalty program

Rewards customers based on the amount of business they do with the business and influences future behavior

Supplier power

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

Supply chain

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

Threat of substitute products or services

Looks at how many other products or services can be used in place of the businesses said products or services

Threat of new entrants

How easy it is for new competitors to enter a market

Entry barrier

A feature of a product or service that customers have come to expect and entering competitors must offer the same for survival

Industries with high entry barriers

Energy, banking, telecommunication industries

Industries with low entry barriers

Restaurant, movie rental, and catering industries

Product differentiation

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

Business process modeling

The activity of creating detailed flow charts of a work process showing inputs, tasks, and activities in a structured sequence.

Business process model

A graphical description of a process, showing the sequence of process tasks, developed for a specific process.

As-is process model

Represents the current state of the operation without any specific improvements or changes to existing processes.

To-be process model

Shows the results of applying change improvement opportunities to the current (As-Is) process model.

Event

Anything happening during a specific business process

Activity

A specific task

Gateways

Controls the flow

Flow

The path a business process follows

Swim lane

Arranges the process flow into rows showing specific activities that take place in each row.

Workflow

Tasks, activities, and responsibilities required to execute each step in a business process

Control system

Monitor processes to ensure tasks, activities, and responsibilities are executed as specified.

Digitization

Automation of existing manual and paper-based processes and workflows to a digital format.

Operational business processes

Static routine, daily business processes.

Operationalized analytics

Makes analytics part of a business process

Business process improvement

Understanding and measuring the current process to make performance improvements accordingly

Automation

Process of computerizing manual tasks

Robotic process automation

Software with AI and machine learning capabilities to handle high-volume, repeatable tasks that previously required a human to perform.

Chapter 3 content

Strategic initiatives for implementing competitive advantages

Business Process

Standardized set of activities accomplishing a specific task

Customer-facing process

front-office processing who customers have direct contact with

Business-facing process

back-office processes who customers do not interact with or see

Use case

A description of how a system, product, or service can be used to achieve specific goals, tasks, or objectives

Actor

Entity which interacts with the system

Business process reengineering

Analysis and redesign of workflow within and between enterprises

Supply chain management

The management of information flows between and among activities in a supply chain to maximize total supply chain effectiveness and profitability.

5 basic activities of supply chain management

Plan, source, make, deliver, return

Plan

Must have a plan for managing all the resources toward meeting customer demand for products or services

Source

Must choose reliable suppliers to deliver goods and services for making products

Make

Where companies manufacture its products and services

Deliver

Logistics, set of processes that plans for and controls the transportation from suppliers to customers

Return

Create a network for receiving defective and excessive products and support customers who have problems with delivered products

Customer relationship management

Managing all aspects of a customers relationship with an organization. Increases customer loyalty and retention and organization profitability

Lead

Person/company unknown to your business

Contact

Specific individual representing the account

Account

Existing business relationship and can include customers, prospects, partners, and competitors

Sales opportunity

Potential sale of goods/services related to an account or contact

Enterprise resource planning

Integrates all departments and functions throughout an organization into a single IT system

Chapter 4 content

Measuring success of strategic initiatives

Project

Temporary activity to create a unique product, service, or result

Metrics

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

Critical success factors

Steps organizations make to achieve goals and objectives and to implement strategies

Key performance indicators (KPIs)

Quantifiable metrics a company uses to evaluate progress toward critical success factors

Market share

portion of the market a firm captures

Return on investment

Indicates the earning power of a project

Efficiency metrics

Measures performance like throughput, transaction speed, and system availability

Effectiveness metrics

Measures impact on business process activities like satisfaction and conversion rates of customers

Benchmark

Baseline values the system seeks to attain

Benchmarking

Process of continuously measuring system results and comparing those results to optimal system performance. Used to identify steps and procedures to improve system performance

Chapter 5 content

Organization structures supporting initiatives

Ethics

Principles and standards guiding human behavior toward other people

Information ethics

govern the ethical and moral issues arising from the development and use of ITs

Privacy

The right to be left alone have control over your own personal possessions. Not being observed without your consent

Confidentiality

Assurance that messages and information are available only to those who are authorized to view them