CH1 MIS What to Study PDF

COMPETING IN THE INFORMATION AGE Fact - The confirmation or validation of an event or object Information age – the present time, during which infinite quantities of facts are widely available to anyone who can use a computer The impact of information Technology on the global business e...

COMPETING IN THE INFORMATION AGE Fact - The confirmation or validation of an event or object Information age – the present time, during which infinite quantities of facts are widely available to anyone who can use a computer The impact of information Technology on the global business environment is equivalent to the printing press’s impact on electronics' publishing and productivity CONNECTED DEVICES DRIVING THE FOURTH INDUSTRIAL REVOLUTION Internet of Things (IoT) - Any device connected to the Internet (collect and share data ) for enhancing performance without human. (e.g. Smart Home Devices, Connected Vehicles) Machine-to-Machine (M2M) - Two or more connected devices interacting via wireless or wired connections with the goal of data sharing and analytics without human intervention (e.g. Industrial Automation - Smart Meters) COMPETING IN THE INFORMATION AGE The core drivers of the information age Data Information Business intelligence Knowledge CORE DRIVER 1: DATA Data - Raw facts that describe the characteristics of an event or object Big data - Large, volumes of data—both structured and unstructured—containing greater variety, increased veracity, and more velocity Variety - Different forms of structured and unstructured data (e.g. spreadsheets, documents, emails, videos, photos, voices and PDFs) Veracity - The uncertainty of data, including biases, noise, and abnormalities (e.g. social media platforms; fake accounts, spam, and misinformation) Volume - The scale of data (e-commerce companies: process millions of transactions per day such as like customer ID, product ID, price, quantity, shipping and billing) Velocity -: The analysis of streaming data as it travels around the Internet (e.g. financial trading firms that makes investment decisions based on real-time market data. Stock prices, trading volumes, news headlines) CORE DRIVER 1: DATA Structured data – Has a defined length, type, and format and includes numbers, dates, or strings such as Customer Address format Machine-generated structured data – Created by a machine without human intervention (e.g. Smart meters automatically record electricity, gas, or water consumption) Human-generated structured data – Data that humans, in interaction with computers, generate (e.g. fill out online surveys such as multiple-choice questions or rating scales)  CORE DRIVER 2: INFORMATION Information - Data converted into a meaningful and useful context Variable - A data characteristic that stands for a value that changes or varies over time CORE DRIVER 2: INFORMATION Report - A document containing data organized in a table, matrix, or graphical format allowing users to easily comprehend and understand information Dynamic report - Changes automatically during creation Static report - Created once based on data that does not change  CORE DRIVER 3: BUSINESS INTELLIGENCE Business intelligence - Information collected from multiple sources such as suppliers, customers, competitors, partners, and industries that analyzes patterns, trends, and relationships for strategic decision making CORE DRIVER 3: BUSINESS INTELLIGENCE Business analytics – The scientific process of transforming data into information for making data-driven business decision  CORE DRIVER 3: BUSINESS INTELLIGENCE Descriptive analytics – Describes past performance and history (e.g. A clothing store analyzes its sales data and discovers that jackets sell best in the fall) It summarizes historical sales data to provide insights into past performance, helping the store understand seasonal trends and customer preferences. Diagnostic analytics – Examines data or content to answer the questions, “Why did it happen?” (e.g. A restaurant notices a sudden drop in customer visits last month. They will analyze customer feedback to know the reason) It examines data to determine why the drop in visits occurred, identifying the negative impact of the new menu on customer satisfaction  CORE DRIVER 3: BUSINESS INTELLIGENCE Predictive analytics – Extracts information from past data and uses it to predict future trends and identify behavioral patterns (e.g. An online retailer uses past purchase data to predict that a particular product will see increased demand during the holiday season) It analyzes historical data to forecast future trends, allowing the retailer to prepare inventory and marketing strategies accordingly. Prescriptive analytics – Creates models including the best decision to make course of action to take (e.g. A logistics company uses data models to determine the most efficient delivery routes based on traffic patterns and fuel costs) It provides recommendations for the best course of action, helping the company optimize its delivery processes and reduce costs. THE MIS SOLUTION Common departments working interdependently Democratization - The action of making something accessible to everyone Data democratization - The ability for data to be collected, analyzed, and accessible to all users  Successful companies operate cross-functionally, integrating the operations of all departments.  Systems are the primary enabler of cross-functional operations.  SYSTEMS THINKING Production - The process where a business takes raw materials and processes them or converts them into a finished product for its goods or services  SYSTEMS THINKING Systems thinking – A way of monitoring the entire system by viewing multiple inputs being processed or transformed to produce outputs while continuously gathering feedback on each part SYSTEMS THINKING Management Information Systems (MIS) – A business function, like accounting and human resources, which moves information about people, products, and processes across the company to facilitate decision-making and problem-solving The MIS department is responsible for gathering, storing, cleaning, and analyzing all data from all of the transaction processing systems MIS DEPARTMENT: ROLES AND RESPONSIBILITIES Chief information officer (CIO) – Overseeing information and ensures the strategic alignment of MIS with business goals and objectives Chief data officer (CDO) – Responsible for determining the types of information the enterprise will capture, retain, analyze, and share Chief technology officer (CTO) – Responsible for ensuring the throughput, speed, accuracy, availability, and reliability of information Chief security officer (CSO) Chief privacy officer (CPO) Chief knowledge officer (CKO)  IDENTIFYING COMPETITIVE ADVANTAGES Stakeholder’s Interests IDENTIFYING COMPETITIVE ADVANTAGES Competitive advantage – A product or service that an organization’s customers place a greater value on than similar offerings from a competitor (e.g. Apple vs. Other Smartphone Brands) First-mover advantage – Occurs when an organization can significantly impact its market share by being first to market with a competitive advantage that lead to market share, brand recognition, and customer loyalty (e.g. Amazon’s Online Marketplace)  SWOT ANALYSIS A SWOT analysis evaluates an organization’s Strengths, Weaknesses, Opportunities, and Threats to identify significant influences that work for or against business strategies SWOT ANALYSIS STRUCTURE  THE FIVE FORCES MODEL – EVALUATING INDUSTRY ATTRACTIVENESS Five Forces Model BUYER POWER Buyer power (Customer power) – The ability of buyers to affect the price of an item Switching cost – Manipulating costs that make customers reluctant to switch to another product Loyalty program – Rewards customers based on the amount of business they do with a particular organization Attract customers to buy from us than from our competitors SUPPLIER POWER Supplier power – The suppliers’ ability to influence the prices they charge for supplies Supply chain – Consists of all parties involved in If supplier power is high, the supplier can the procurement of a influence the industry by: product or raw material  Charging higher prices  Limiting quality or services  Shifting costs to industry participants  THREAT OF SUBSTITUTE PRODUCTS OR SERVICES Threat of substitute products or services – High when there are many alternatives to a product or service and low when there are few alternatives THREAT OF NEW ENTRANTS Threat of new entrants – High when it is easy for new competitors to enter a market and low when there are significant entry barriers Entry barrier – A feature of a product or service that customers have come to expect and entering competitors must offer the same for survival What is an industry that has a high entry barrier? What is an industry that has a low entry barrier? RIVALRY AMONG EXISTING COMPETITORS Rivalry among existing competitors – High when competition is fierce (Severe) in a market and low when competitors are more complacent Product differentiation – Occurs when a company develops unique differences in its products or services with the intent to influence demand (e.g. Additional features on a cell phone)  THE THREE GENERIC STRATEGIES CHOOSING A BUSINESS FOCUS Porter’s Three Generic Strategies Provide a framework for businesses to gain a competitive advantage in their industry  THE THREE GENERIC STRATEGIES CHOOSING A BUSINESS FOCUS Porter’s Three Generic Strategies Provide a framework for businesses to gain a competitive advantage in their industry