Tim50 Quiz 1 Study Guide PDF
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This study guide provides an overview of information systems in global business, outlining key concepts such as business processes, information technology, and different management systems. It also covers the purpose of a business and various business objectives like operational excellence, new product development, and customer intimacy.
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1. Information systems in global business a. Information technology: the hardware and software a business uses to achieve objectives b. Information system: interrelated components that manage information to: i. Support decision-making & c...
1. Information systems in global business a. Information technology: the hardware and software a business uses to achieve objectives b. Information system: interrelated components that manage information to: i. Support decision-making & control ii. Help with analysis, visualization, and product creation c. Digital firm:nearly all of the organization’s significant business relationships are digitally enabled i. Core business processes are accomplished through digital networks ii. Key corporate assets are managed digitally d. 6 strategic business objectives: i. Operational excellence 1. Using I.S. & I.T. to improve efficiency & productivity ii. New products, services, & business models 1. How a company produces, delivers, and sells a product or service iii. Customer & supplier intimacy 1. Ex: customer reviews/questionnaires iv. Improved decision-making 1. Real-time data improves decision-making v. Competitive advantage vi. Survival 1. Using I.T./I.S. to keep up with competition (ex: ATMs) e. Organizational view of a firm: f. Purpose of a business: maximize stakeholder value i. Maximize share price which requires ii. Maximize earnings which requires iii. Maximize revenue g. Important terms/definitions i. Intranets: internal corporate networks based on Internet technology ii. Extranets: private intranets extended to authorized users outside the organization iii. Complementary assets: assets required to derive value from a primary investment (ex: a supportive business culture, an appropriate business model, a strong IS development team, etc.) 2. Global e-business and collaboration a. Business processesare the collection of activities required to produce a product/service b. Information technology changes the flow of information, making it possible for many more people to access and share information, eliminating delays in decision-making i. ⬆️ productivity ⬆️ revenue 3. Systems for different management groups a. Transaction processing systems (TPS): a computerized system that performs and records the daily routine transactions necessary to conduct business i. Ex: sales order entry, hotel reservations, payroll, etc. ii. Used by operational managers to monitor the status of internal operations b. Systems for business intelligence: 1. Business intelligence: data/software tools for organizing, analyzing, and providing access to data to help managers make more informed decisions ii. Management information systems (MIS): summarize and report on the company’s basic operations using data supplied by TPS iii. Decision-support systems (DSS): use internal info from TPS and MIS, and bring info from external sources to focus on problems that are unique and rapidly changing 1. Ex: what would be the impact on production schedules if we were to double sales in December? iv. Executive support systems (ESS): help senior management address nonroutine decisions requiring judgment, evaluation, and insight 4. How do all these systems come together? a. Enterprise applications: systems that span functional areas, focus on executing business processes across the firm, and include all levels of management b. Enterprise systems(AKA ERP): used to integrate business processes in manufacturing and production, finance and accounting, sales and marketing, and HR into a single software system c. Supply chain management systems (SCM): help manage relationships with suppliers i. Help suppliers, purchasing firms, distributors, and logistics companies share info about orders, production, inventory, and delivery ii. ⬆️ productivity & ⬇️ costs of moving & making product iii. Type ofinter-organizational system d. Customer relationship management systems (CRM): help manage relationships with customers & provide info about dealing with customers to optimize revenue, customer satisfaction, & customer retention e. Knowledge management systems (KMS):collect all relevant knowledge and experience and make it available wherever and whenever it’s needed to improve business processes and management decisions 5. Organizational structures a. Entrepreneurial structure i. young, small firm in a fast-changing environment ii. Simple structure and is managed by an entrepreneur serving as its single CEO b. Machine bureaucracy i. Large bureaucracy in a slowly changing environment ii. Dominated by a centralized management team & centralized decision-making c. Divisionalized bureaucracy i. Combination of multiple machine bureaucracies all topped by one central headquarters d. Professional bureaucracy i. Knowledge-based organizations dominated by department heads with weak centralized authority (ex: hospitals) e. Adhocracy i. Task force organizations that must respond to a rapidly changing environment (ex: consulting firm) 6. Economic impact a. Transaction cost theory: firms and individuals seek to economize on transaction costs, much as they do production costs i. As transaction costs decrease, firm size decreases b. Agency theory: the firm is viewed as a “nexus of contracts” among self-interested individuals rather than as a unified, profit-maximizing entity i. Increased firm size, increased agency costs ii. IT reduces agency costs because it allows managers to oversee more employees c. IT decreases overall management costs, increases revenue, decreases middle managers and clerical workers, decreases firm size, and increases revenue per employee(productivity) 7. Porter’s Competitive Forces Model 8. SWOT Analysis 9. The Value Chain Model a. Value web: a collection of independent firms that use IT to coordinate their value chains to produce a product/service for a market collectively i. More customer-driven & operates in a less linear fashion than the traditional value chain
