1. Information Revolution
    refers to the increased use of information and communication technology to create, deliver and use information
  2. (ICT) Information and communication technology
    • includes such things as the internet and computer based business information systems that support the work of organizations
    • enables, supports and even encourages globalization
  3. information revolution
    plays an important role in the global competitive environment
  4. Knowledge worker
    • is one who uses ICT to create, acquire, process, synthesize, disseminate, analyze and use information to be more productive.
    • ex. product manager, sales executive, production manager, and financial analyst.
    • Requires both structured and unstructured information
    • structured information
  5. Structured information
    • its source is known
    • typically non-routine in that is now repeated throughout the course of the work day
  6. Unstructured information
    • not readily available
    • a manager may not know what information is needed or where to find it
  7. Task workers
    • perform routine, structured tasks, typically in repeated manner
    • task workers include customer service representatives, purchasing and accounting clerks and insurance claims processor
  8. Business process
    • a process consists of multiple sequential steps or activities that produce some outcome or output.
    • Takes a set of inputs and convert them into the desired output
  9. Core processes
    • procurement process
    • production process
    • fulfillment process
  10. Procurement process
    the organization acquires the basic materials that is uses to produce goods and services
  11. Production process
    involves manufacturing or generating the desired goods and services
  12. Fulfillment process
    company delivers the goods or services to its customers or resellers
  13. Functional structure
    • most common organizational structure
    • typical functions include; purchasing, operations, warehouse, sales and marketing, research and development, finance and accounting, human resources, information technology
  14. silo effect
    • process in isolation
    • not fully understanding what steps happen before and what steps happened after. Essentially complete their part of the process, hand it off to the next person then proceed to next task
  15. consequences of poor coordination
  16. delays
    occur in the form of increased lead times and cycle times
  17. lead times
    how far in advance a company must plan to obtain raw materials from its suppliers
  18. cycle times
    the amount of time needed to produce a product or process a customer order
  19. consequence of poor coordination
    excess inventory, lack of visibility across the process, delays
  20. process view
    • gave companies a powerful way to standardize the way the did their work across many countries and gain significant cost savings as a result
    • ICT is an essential part of the process view of organizations
  21. information systems
    computer based systems that capture, store and retrieve data associated with process activities
  22. data
    • every activity in a organization generates data.
    • Raw facts that have limited value or meaning
    • ex. customer names, product numbers, and quantities of products sold
  23. Enterprise systems (ES)
    • Support the entire process rather than parts of the process, help the organizations coordinate work across functions
    • This reduces delays, avoids excess inventory and increases visibility
    • creates greater visibility across the process
  24. Roles of ES
    • 1. Execute the process
    • 2. capture and store process data
    • 3. monitor process performance
  25. instance level
    specific task or activity
  26. aggregate level
    the process as a whole
  27. financial impact
    typically viewed through changes in an organization's income statement and balance sheet
  28. income statement
    • known as a profit and loss statement, is record of revenue and expenses for a specific period of time
    • shows how much money the company made (revenue) how much money the company had to spend to produce and sell its goods (expenses) and how much profit the company earned (net income)
  29. net income
    difference btw revenue and expenses
  30. balance sheet
    • indicated the financial condition of a company at a specific point in time
    • shows what the company own (assets), what is owes to others (liabilities) and how much money shareholders have invested in the company (equity)
  31. components of an ES include
    • hardware-consisted of large expensive mainframe computers
    • software
    • database
  32. scalability
    • one of the major drawbacks of the main frame architecture
    • a concept related to the number of users or the volume of operations that a given hardware/ software combination can manage
  33. packaged applications
    • are generic software that can used by many companies
    • pioneered by SAP in 1972
  34. ES
    • Stage 1: stand alone mainframe systems
    • stage 2: client- server architecture
    • stage 3: service-oriented architecture
  35. three-tier client server
    • led to the explosive growth in the use of ES
    • paradign shift
    • 1. presentation layer
    • 2. application layer
    • 3. data layer
  36. service oriented architecture (SOA)
    • enables companies to build composite applications on top of their existing three-tier client-server application without changing the existing application.
    • gives computers an entirely new level of flexibility for an extremely low cost
  37. composite applications or enterprise mashup
    rely on web services to send and receive data between and among ES
  38. Enterprise resource planning systems (ERP)
    worlds largest and most complex ES focus primarily on the internal operations of an organization
  39. Business process reengineering (BPR)
    Emerged in 1990s as a way to reorient operations around business processes to better manage and control the globally distributed organization
  40. supply chain management (SCM)
    • connects a company to other companies that supply the materials it needs to make its products
    • helps companies plan for their production demand requirements and optimize complex transportation and logistics for materials
  41. supplier relationship management (SRM)
    • manage the overall relationships with the materials suppliers
    • contains functionality to manage the quotation and contracts processes
  42. customer relationship management (CRM)
    • connects a company's ERP system to those of its customers
    • provide companies with capabilities to manage marketing, sales and service for it customers
  43. Product life cycle management (PLM)
    help companies administer the processes of research, design and product management
  44. Best of breed applications
    • typically isolated to one process or part of a process and have evolved from departmental applications
    • ES vendor
  45. Applications suites
  46. Niche applications
    custom and packaged applications from several vendors
  47. ES lanscaped
    • best of breed applications
    • applications suites
    • niche applications
  48. independent software vendors (ISV)
    • offer highly specialized niche applications for various industries and functions
    • build composite applications that sit on top of an ES that was developed by a suite or best of breed vendor
  49. Types of data in ES
    • Organizational data
    • master data
    • transaction data
  50. Organizational data
    • rarely change over time
    • region where sales occurred
    • defines the way different activities of the business is organized
  51. Master data
    • define the key entities with whom the organization interacts, such as customers and suppliers
    • change occasionally
    • for customers, include name address, contact person and a variety of negotiated terms such a billing and payment methods
    • for products include product number, description, physical characteristics such as weight and color, handling requirements and typical storage location
  52. Transaction data
    • reflect the day-to-day activities of the organization
    • include general data as who did what, when and where as well as specialized data that relate to the specific task
    • dates quantities name of the person requesting the material, name of the person approving the material, prices, shipment method
  53. Information technology (IT)
    related to any computer-based tool that people use to work with information and to support the information and information-processing needs of an organization
  54. Informed user
    person knowledgable about IS and IT
  55. IS
    purpose is to get the right info to the right people at the right time, in the right amount and in the right format
  56. Data items
    • numbers, letters, figures, sounds, and images
    • description of things, events, activities, transactions that are recorded
  57. Information
    refers to data that have been organized so that they have meaning and value to the recipient
  58. knowledge
    consists of data and information that have been organized and processed to convey understanding, experience, accumulated learning and expertise as they apply to a current business problem
  59. computer based information system (CBIS)
    an information system that uses computer technology to perform some or all its intended tasks
  60. Components of CBIS
    • Hardware-keyboard, printer, ect.
    • software- program,enables hardware to process data
    • database- tables containing data
    • network- connecting system
    • procedure- instructions for combining the above components in order to process info and generate desired output
  61. Information technology components
    • hardware
    • software
    • database
    • network
  62. Information technology services
    use these components (software, hardware, database, network) to develop IS, oversee security and risk, and manage data
  63. application
    computer program designed to support a specific task or business process
  64. functional area information systems (FAIS)
    • Each FAIS supports a particular functional area with in the organization
    • ex. accounting, IS, finance IS, production/operations (POM) IS, marketing IS, and human resources IS
  65. In sales and marketing, managers use IT to perform the following functions
    • product analysis: developing new goods and services
    • site analysis: determining the best location for production and distribution facilities
    • promotion analysis: identifying the best advertising channels
    • price analysis: setting product prices to obtain the highest total revenues
  66. Two information systems support the entire organization
    • 1. enterprise resource planning system
    • 2. transaction processing systems
  67. enterprise resource planning (ERP)
    • designed to correct a lack of communication among the functional area IS's
    • enhance communication among the functional areas of an organization
  68. Transaction processing system (TPS)
    Supports the monitoring, collection, storage and processing of data from the organizations basic business transactions, each of which generates data
  69. interororganizational information systems (IOS)
    IS that connect two or more organizations
  70. Supply chain
    flow of materials, information, money and services from suppliers of raw materials through factors and warehouses to the end customers
  71. electronic commerce (e-commerce) systems
    • another type of interororganizational information system
    • enables organization to conduct transactions B2B (business to business), B2C (business to consumer)
  72. clerical workers
    support managers at all levels of the organization (bookkeepers, secretaries, electronic file clerks)
  73. lower-level managers
    handle day-to-day operation, making routine decisions such as assigning tasks to employees and placing purchase orders
  74. middle managers
    make tactical decisions, which deal with activities such as short term planning, organizing and control
  75. knowledge workers
    advisors to middle managers and executives
  76. executives
    • makes decisions that deal with situations that can significantly change the manner in which business is done
    • ex. introducing new product line, acquiring other businesses
  77. office automation systems (OAS's)
    • typically support the clerical staff, lower and middle managers and knowledge workers
    • these employees use OAS to develop documents, schedule resources and communicate
  78. business intelligence systems (BI)
    • Provide computer-based support for complex, non-routine decisions
    • enable users to perform their own data analysis
  79. expert systems (ES)
    • Attempt to duplicate the work of human experts by applying reasoning capabilities, knowledge
    • decision making
  80. ergonomics
    • work setting that minimizes injury and illness
    • goal is to create and environment that is safe
  81. business process
    a process that has inputs and outputs
  82. cross-functional processes
    • no single functional area is responsible for their executions
    • procurement and fulfillment process
  83. business process management (BPM)
    help companies improve profitability by decreasing costs and increasing revenues
  84. business environment
    combinations of social, legal, economic, physical, and political factors in which businesses conduct their operations
  85. Three major Business pressures
    • Market
    • Technology
    • societal pressures
  86. market pressure
    Globalization- integration and interdependence of economic, social, culture, and ecological facets of life, made possible by rapid advances in information technology
  87. technology pressure
    information over load, technological innovation
  88. societal pressures
  89. make-to-order
    a strategy of producing customized products and services
  90. strategic information systems (SIS)
    Provide a competitive advantage by helping an organization implement its strategic goals and improve its performance and productivity
  91. competitive forces model
    • michael porter
    • increase their competitive edge
    • five forces
    • 1. the threat of entry of new competitors
    • 2. the bargaining power of suppliers (supplier power)
    • 3. the bargaining power of customers (buyer power)
    • 4. threat of substitute products or services
    • 5. the rivalry among existing firms in the industry
  92. entry barrier
    a product or service feature that customers have learned to expect from organizations in a certain industry
  93. primary activities
    relate to the production and distribution of the firm's products and services create value
  94. support activities
    • do not add value
    • contribute to the firm's competitive advantage by supporting the primary activities
  95. Porters value chain model
    • primary activities
    • support activities
  96. business information technology alignment
    tight integration of the IT function with the strategy, mission and goals of the organization
  97. ethical frameworks
    • 1.utilarian approach- provides the most good or does the least harm
    • 2. rights approach- best protects and respects the moral rights of the affected parties
    • 3. fairness approach- treat all human beings equally
    • 4. common good approach- respect and compassion for all others in the basis for ethical actions
  98. ethical issues
    • 1. privacy issues
    • 2. accuracy issues
    • 3. property issues
    • 4. accessibility issues
  99. digital dossier
    • an electronic profile of you and your habits
    • this process is called profiling
  100. opt-out model
    permits the company to collect personal information until the customer specifically requests that the data not be collected
  101. opt-in model
    prohibits an organization from collecting any personal information unless the customer specifically authorizes it
  102. platform for privacy preferences (P3P)
    a protocol that automatically communicates privacy policies between an electronic commerce website and visitors to that site
  103. Tenets of ethics
    • responsibility
    • accountability
    • liability
Card Set
test 1