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Which of the following statements is consistent with the central idea of business process design?
A business process is a network of activities that generate value by transforming inputs into outputs. increase margin
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Which of the following can be considered a support activity in the value chain?
Procurement, Technology, Human Resources, Firm Infrastructure
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Lynn is going through this week's delivery schedule. She calls her team and assigns territories for each executive. She contacts the fleet supervisor to arrange trucks for transportation. Which activity of the value chain is Lynn executing?
outbound logistics
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Which of the following cannot be considered a part of the sales process?
Inducing buyers to purchase the product and providing a means for them to do so
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Which of the following activities of a computer manufacturer cannot be considered a part of inbound logistics?
inbound logistics ARE the receiving, storing and disseminating inputs into the product
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Which of the following statements is true of business process designs?
Most process designs require people to work in new ways network of activities that generate value by transforming inputs into outputs - increase margin
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Which of the following principles of competitive advantage is related to PRODUCT implementations?
- 1. Create a new product or service
- 2. enhance products or services
- 3. differentiate products or services
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Which of the following principles of competitive advantage is related to PROCESS implementations?
- lock in customers and buyers
- lock in suppliers
- raise barriers to market entry
- establish alliances
- reduce costs
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An organization wants to achieve competitive advantage through process implementations. Which of the following actions would help them do that?
- lock in customers and buyers
- lock in suppliers
- raise barriers to market entry
- establish alliances
- reduce costs
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Locking in customers by making it difficult or expensive for customers to move to another product is called establishing high ________.
switching costs
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Organizations can lock in suppliers by making it difficult to switch to another organization or by ________.
by making it easy to connect and to work with the organizations
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A large software manufacturer attempts to lock in customers by making it difficult for customers to change to another product. Identify the strategy used here.
establishing high switching costs A: Lock in customers (process implementation), industry-wide differentiation
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How Does Competitive Strategy Determine Value Chain Structure?
- VALUE: is amount of money a customer is wiling to pay for a resource, product, or service.
- Difference between value an activity generates and its cost is called MARGIN Primary Activity + Description
- -Inbound Logistics: Receiving, storing, and disseminating inputs to the product
- -Operations/Manufacturing: Transforming inputs into the final product -Outbound Logistics: Collecting, storing, and physically distributing the product to buyers -Sales and Marketing: inducing buyers to purchase the produce and providing a means for them to do so
- -Customer Service: Assisting customer's use of the product and thus maintaining and enhancing the product's value
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Support Activities in the Value Chain
- Support Activity + Description:
- -Technology: R & D, New Techniques, methods, procedures
- -Procurement: Raw Materials
- -Human Resources: Training, recruiting, compensation
- -Firm Infrastructure: General Management, Finance, Accounting, Legal, Gov Affairs
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Value Chain Linkages
- -Interactions across value activities readily supported by information systems
- -Manufacturing systems use linkages to reduce costs
Sales forecasts to plan production > Production plan used to determine raw materials needs > Material needs used to schedule purchases > Just-in-time inventory > Reduced inventory sizes and costs
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How do Business Processes Generate Value?
Business process Cost of a business process Margin of a business process Activity Resources Facilities store resources
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Improved Ordering Process
Purchase Bicycle Parts activity queries both raw materials inventory database and finished goods inventory database
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Bits are used for computer data because
They are easy to represent electronically.
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Bits are grouped into 8-bit chunks called
Bytes
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To run a program or process data, the computer first transfers the program or data from disk to the
Main memory
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Which of the following is nonvolatile in nature?
Magnetic and optical disks are nonvolatile, meaning their contents survive when power is off
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Server farms are used when the ________.
- 1.Used for large clients
- 2.To accomplish server needs far beyond the capability of one machine.
- 3.Server farms: large collection of coordinated servers
- 4.Amazon can process 110 items per second
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Which of the following is an example of cloud computing?
- Examples: IBM, Google docs and Spreadsheets, Oracle, Facebook, your university for class registration
- Require trust in technology working because don't know physically where file is and neither does Google
- Planet wide storage systems
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Cloud computing
a form of hardware or software leasing in which organizations obtain server resources from vendors that specialize in server processing
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________ are commands that the CPU can process that may be specific for each processor type.
instruction set
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When you buy an operating system for your personal computer, you are actually buying a software ________.
- 1. License
- 1. Right to use specified number of copies of a program
- 2. Limits vendor's liability
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Ronald runs both Windows 7 and Linux on his desktop computer. This process is called ________.
PC Virtualization
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Three types of virtualization
- PC Virtualization
- Server virtualization
- Desktop virtualization
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Desktop Virtualization
- can be accessed from any computer to which user has access
- Allows access from any computer a user has authorization to use
- Thus, you could be at an airport computer and access what appears to be your own personal computer
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PC Virtualization
a personal computer, such as a desktop or portable computer, hosts several different operating systems
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Server Virtualization
- a server computer hosts one or more, other server computers
- Server virtualization makes cloud computing feasible
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Virtualization
- Very easy to set up a virtual machine and configure it in a specific way
- Cloud vendors can add and remove instances of servers very quickly and cheaply
- Make your computer behave like a different computer
- Creates a virtual computer
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Two types of activities of Value Chain
- Primary Activity - major activity to perform
- Support Activity
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Primary Activity of Value Chain
- Inbound Logistics
- Operations/ Manufacturing
- Outbound Logistics
- Sales and Marketing
- Customer Service
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Inbound Logistics
Receiving, storing, and disseminating inputs to the products
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Operations/ Manufacturing
Transforming inputs into the final products
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Outbound Logistics
Collecting, storing, and physically distributing the products to buyers
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Sales and Marketing
Inducing buyers to purchase the products and providing them a means for them to do so
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Customer Service
Assisting customers' use of the products and thus maintaining and enhancing the products' value
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Differences b/w Service Industry and Product Development Industry
Service Industry dose not have outbound logistics
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Support Activities in the Value Chain
- Technology
- Procurement
- Human Resources
- Firm Infrastructure
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Technology
- R&D
- New Techniques, Methods, and Procedures
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Procurement
Raw Materials
- From suppliers to acquire raw materials
- How to deal with suppliers
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Human Resources
- Training
- Recruiting
- Compensation
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Firm Infrastructure
- General Management
- Finance
- Accounting
- Legal
- Government Affairs
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Company all over the world try to be innovative, creative, and modern in their business areas in the way they deliver business process
Technology
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Business Process
Network of activities that generate value by transforming inputs into outputs across the entire value chain
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Cost of a Business Process
Cost of inputs plus cost of activities
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Margin of a Business Process
Value of the outputs minus cost
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Activity
Transforms input resources into output resources
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Resources
Flow b/w or among activities
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Facilities Store Resources
Inventories, store physical items
- warehouse
- electronic data base
- IS help to store information
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How do Business Processes Generate Vlaue
- Materials ordering process transforms cash into raw materials inventory
- Manufacturing process transforms raw materials into finished goods
- Sales process transforms finished goods into cash
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While there are activities connected together, then there is business process link b/w activities, the link help to deliver business process
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Product Implementation
- Differentiate products or services
- Enhance products or services
- Create a new product or service
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Process Implementation
- Lock in customers and buyers
- Lock in suppliers
- Raise barriers to market entry
- Reduce costs
- Establish alliances
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How to lock in customers
Create high switching cost
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Lock in suppliers
Make it easy to connect to and work with your organization
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Create entry barriers
Make it difficult and expensive for new competition
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Create better business processes to establish alliances
integrate and collaborate with others
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How does the system create a Competitive Advantage
- Increases profit margins by decreasing errors and decreasing costs
- Differentiates products
- Locks in Customers
- Enhance Existing Products
- Raises barriers to market entry
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Hardware
it includes electronic components and related gadgetry that input, process, output, and store data according to instructions encoded in computer programs or software
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Storage
- Magnetic Disk
- Optical Disk
- Magnetic Tape
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Process
- CPU - central processing unit
- Main Memory
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Computer Hardware Type
- Personal Computer (desktop, laptop ex. Apple Mac Pro)
- Tablet (e-book reader ex. iPad, Microsoft Surface, Google Nexus 7, Kindle Fire)
- (Smart) Phone (ex. Motorola (Google) Droid
- Server (ex. Dell PowerEdge T110II Server)
- Server Farm (Racks of servers) - Large collection of coordinated servers
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Computer saves date by
Bernoulli - "1" or "0"
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Byte
Number of bits to represent one character
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Storage-Capacity Terminology
- B-K-M-G-T-P-E
- Byte (1 Byte = 8 Bits)
- Kilobyte
- Megabyte
- Gigabyte
- Terabyte
- Petabyte
- Exabyte
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Main Memory contains
- Operating system instructions
- Program instructions
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Operating System (OS)
- Program that controls computer's resources and blocks of data
- Provides services to application programs and users
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Memory Swapping
- Lease memory to other programs to run
- When RAM too small to hold all open programs and data
- CPU loads program segments into free memory
- - if none available, O/S swaps out existing segment, to a disk and copies requested segment to freed space
- Swapping slows down computer
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Cache and main memory are volatile
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Cache
- CPU has cache memory to keep a copy of frequently used instructions
- Having a large cache makes computer faster, but more expensive
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Basic Categories of Computer Software
- Operating System
- Application Programs
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CPU Speed is expressed in
hertz - number of cycles that process data
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64-bit need at least
4+GB memory
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the operating system for client is different from server's
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Cache and main memory are volatile meaning their contents are lost when power is off
Magnetic and optical disks are nonvolatile, meaning their contents survive when power is off
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Client Computers
Computers used by an individual for word processing, spreadsheets, database access, and so forth
Most client computers have software that enables connecting to a private network at work or school, or public Internet
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Server Computer
Provide service ( such as email; serving pages on a website; processing large, shared databases; or other functions) to multiple users
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Thin Client
- Requires nothing more than browser
- Does not require installation and administration of client software
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Thick Client
- Also known as fat client or fat computer
- Has more code to run on it
- More features and more functions
- More expense and administration
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If extra applications or specific services are needed
Thick Clients are needed
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Major Operating System
- Windows - Personal Computer Clients (business)
- Mac OS - Macintosh Clients (art)
- Unix - Workstation Clients (engineering)
- Linux - just about anything (open sourced)
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Major operating system for mobile clients
- Symbian
- Blackberry OS
- IOS
- Android ( Linux-based)
- Windows RT (mostly tablet)
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Major operating system for servers
- Windows server (Microsoft)
- Unix (replaced by Linux)
- Linux (popular)
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Virtualization
The process by which one computer hosts the appearance of many computers
Installation of a secondary operating system
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Host operating system
runs one or more operating systems as applications
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Guest operating system
- Virtual Machine
- it is the hosted operating
- secondary operating system
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Facebook can be handled in Android, Windows, Linux
Virtualization
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Types of Applications
- Horizontal applications
- Vertical applications
- One-of-a-kind applications
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Horizontal-market applications
word processors, graphic programs, spreadsheets, and presentation programs
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Vertical-market application
- Software serves specific industry, usually customized
- ex. applications used by dental offices to schedule appointments and bill patients
- specific, purposely software
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Off-the-shelf-with-alterations software
- involves modifying packaged software to meet a specific need
- buy and change
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Off-the-shelf
buy it directly from the market
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Custom-developed software
- last-choice alternative because of risk and expense
- used only when no other option
- no way to buy
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Organizations obtain horizontal applications by
Off-the-shelf (buy it directly from the market)
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Organizations obtain vertical applications by
- Off-the-shelf
- Off-the-shelf and then customized
- (buy and change)
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Organizations obtain One-of-a-kind applications by
custom-developed (no way to buy)
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License
- Right to use specified number of copies
- Limit vendor's liability
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Site License
Flat fee to install software product on all company computers or all computers at a specific site
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Open source software
Free usage license ( free of charge)
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Firmware
- Computer software installed on read-only memory
- - printers, print servers, communication devices
- - coded like other software
- - can be changed and upgraded
- Specifically to control functions of the electronics
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Open Source
Source available to public
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Source Code
computer code written by humans and understandable by humans
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Machine Code
- 11010010100...
- Bernoulli with "0" and "1"
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Closed Source Code
Highly protected and only available to trusted employees and carefully vetted contractors
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Why do programmers volunteer their services
- Fun
- Freedom to choose projects
- Exercise creativity on interesting and fulfilling projects
- Exhibit one's skill to get a job
- Start a business selling services
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Is open source viable?
- Depends on requirements and constraints of situation
- "Free" open source software require support and operational costs, could cost more than licensing fee
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Thick or Thin?
- Depends on
- Strategy, goals, application requirements, budgets, schedule, tolerance for managing technical projects, need for application revenue, etc.
- Thin-client applications cheaper to develop and maintain, but may lack wow factor
- Thick-client needs more resources, time, and budget
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Primary characteristics of quality mobile applications
- Feature content and support direct interaction
- Provide animation and lively behavior
- Design to scale and share (display and data)
- Use the cloud
- Use context-sensitive chrome when needed
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Cloud Computing
A form of hardware or software leasing in which organization obtain server resources from vendors that specialize in server processing
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Advantages of Personal Mobile Devices
- Cost savings
- Greater employee satisfaction
- Reduced need for training
- Reduced support costs
- Higher productivity
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Disadvantages of Personal Mobile Devices
- Data loss or damage
- Loss of control
- Compatibility problems
- Risk of infection
- Greater support costs
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Sources of System Costs
- Developement and Operational
- Hardware - purchases - maintenance fees
- Software - licenses, project costs for custom software - maintenance and support fees and costs
- Data - conversion costs - acquisition costs
- Procedures - design, development, and documentation - maintenance
- People - initial training - labor cost of using system
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