Information System Review PDF

Information System ➔ Before sharing the data, it must be complete and INFORMATION accurate. Information is processed , manipulated and Economical: In...

Information System ➔ Before sharing the data, it must be complete and INFORMATION accurate. Information is processed , manipulated and Economical: Information should be economical to interpreted data. produce both in terms of time and cost. ➔ Like example, may bagyo, what details did you ➔ When we are gathering data, hindi dapat get.? Warning? But it depends on how it was gumastos ng sobra. The timeline should be just interpreted by us, like kung nasa work, iba ang 1 week or less and not magastos. interpretation. ➔ When we are gathering and processing, ➔ After we process, we manipulate like we search manipulating data, don’t spend too much time, the data, then we interpret. especially with the timeline and cost. ➔ Kapag no action means nothing. Naka-organize ➔ Design a way, pattern and solution like find other para merong value. means. Collection of data organized in such a way that they Format: Information should be available in the have value beyond the data itself. Information is desired format. created by defining and organizing relationships ➔ What is the required format? Like if it's a picture, among data. send a png or jpg file. ➔ Organize it with the relationship among with ➔ Always check and follow the instructions. other data para di sya stand alone. ➔ Data alone without analysing is nonsense. Flexible: Information should be flexible enough to ➔ Anything you process is just data, we need to be used for different purposes. interpret or analyse data before we connect it on ➔ Dapat ang data mo ay complete and correct. the information. ➔ If data is incomplete, like naglagay ng data na ➔ Before you connect anything with something, approximate. But nagkaroon ng checking, is the kailangnang naintindihan para alam kung san data reliable? it is not reliable kasi nga nag ico-conect or for what purpose. assume ka lang. ➔ Dapat ang data is flexible enough para magamit for different purposes. CERTIFIED LEAN SIX SIGMA YELLOW BELT (CLSSYB) Reliable: Information is dependable and is generated using correct data. The characteristics of the information are listed as ➔ Dapat nagagamit yung information na yon. follows: Accurate: Information must not contain any errors. It must be accurate. Relevant: Information must be relevant so that it ➔ Any unsure data, reconfirm, so erros does not can be used by the organization. occur. ➔ Dapat yung cinocollect na information, would be Accessible: Authorized users should be able to relevant to that project. access the information whenever required. ➔ Just like RRL, yung mag di pa lampas ng 5 ➔ By level sa company yung information like kung years since yung mga paper like kumuha na rin ano lang ang kailangan. sila ng 5 years na infor para mabuo yung libro like more than 6 to 10 years na sya. Complete: Information must contain all important and related data. ➔ Dapat nandon yung important data.  Secure: Unauthorized users should not be able to ➔ Kaya nya magprocess ng lahat ng input and access the information. Access is allowed only to produce an output form those data kaya sa authorized individuals. closed system. ➔ Dapat authorized person lang nakaka-access ng ➔ Anything na bago na information na di pa information and mag put out. namamanipulate, it is called input. ➔ Like it will depend on what information is needed ➔ May nangyayari sa input like clamping it to other for the job to be able to grant them an access. info, it’s called process. ➔ Just like accounting, they are authorized to have ➔ Result of the process would be output. access to the system. ➔ Also, some instances like you can view, Input: Capture the data to be processed download and print but some naman are like you ➔ Anything na bago na information na di pa can view but you can’t print. namamanipulate, it is called input. Processing: Change the data into information Simple: Information must be easily ➔ May nangyayari sa input like clamping it to other understandable and usable. Complex information info, it’s called process. is difficult to use and may not serve its purpose. Output: Disseminate the information product to its ➔ For presentation, i-analyze na ang data. Dapat destination. pag prinesent maintindihan kahit operators. Use ➔ Result of the process would be output. simple words for people to understand easily. ➔ Don’t use complex adjectives. Don’t expect that the vocabulary can be understood by everyone. Think always or use the layman’s term. CLOSE SYSTEM Timely: Information must be available when it is A stand-alone system that does not interact with needed. Late or outdated information is of no use. other systems. ➔ Information should be available kapag kailangan. ➔ Kaya nya magprocess ng lahat ng input and Just like bagyo, data should be updated and produce an output form those data kaya sa announced by weather forecast. Dapat timely closed system. yung information. ➔ No interaction needed. Verifiable: There should be a means to cross check the available information. OPEN SYSTEM ➔ Dapat kapag tinanong nila like how it is Interacts with another systems. computed, then present how you analyze the data. INFORMATION SYSTEM What is a System? An Information Systems (IS) can be any organized combination of people, hardware, A set of components that work together to achieve software, communication networks, data a common goal. resources, and policies and procedures that Accepts input, processes it, and produces an stores, retrieves, transforms, and disseminates output. information in an organization. Composed of one or more subsystems. May be a closed or open system People rely on modern information systems to communicate with one another using: ➔ Accept and input information then produce an A variety of physical devices (hardware) output. ○ Radio, CP  Information processing instructions and both programs and procedures, data resources procedures (software) include data and knowledge bases, and network ○ Softwares on computer resources include communications media and Communications channels (networks) networks. ○ Social Media (Facebook, Twitter, Ig, tiktok) Data resources are transformed by information Stored data (data resources) processing activities into a variety of information ○ Stored data (Drive, Cloud) products for end users. Information processing consists of the system activities of input, processing, output, storage, and FRAMEWORK OF INFORMATION SYSTEM control. Hereby are the following components of an Information System: HARDWARE: all physical devices and materials used in information processing. SOFTWARE: all sets of information processing instructions. PEOPLE: associated with the manpower required to run and manage the system. Framework of major areas: DATA: raw facts and figures that are unorganized Foundation Concepts: Fundamental behavior, that are later processed to generate information. technical business, and managerial concepts NETWORK: Telecommunications technologies about information systems. and networks like the Internet, intranets, and Information Technologies: Major concepts, extranets are essential to the successful developments, and management issues in IT. e-business and e-commerce operations of all Business Applications: Major uses of IS for types of organizations and their computer-based management, and competitive information systems. Development Process: How an IS is planned, developed, and implemented to meet business Information System Resources and Products opportunities. Management Challenges: Effectively and People Resources ethically managing IT at the end-user, enterprise, and global levels of business. Specialists: systems analysts, software developers, systems operators. End User: s anyone else who uses information COMPONENTS OF INFORMATION SYSTEM systems. ➔ We used the system, then we gave feedback. ➔ Kailangan ng mga I.T personnel ang feedback. Like input data, then process but problems occur. Those feedback inputs to the I.T. People Resources Personnel to correct the parameters para pag nag feed ulit tayo ng data tama na yung item. Machines: computers, video monitors, magnetic disk drives, printers, optical scanners. People, hardware, software, data, and networks Media: floppy disks, magnetic tape, optical disks, are the five basic components of information plastic cards, paper forms. systems. People resources include end users and IS Software Resources specialists, hardware resources consist of machines and media, software resources include  Programs: operating system programs, ➔ Kapag like there’s a stuck with the information, spreadsheet programs, word processing hindi na maggamit. programs, payroll programs. ➔ They work separately but together. Separate ➔ Examples: IOS, Windows because of different processes. ➔ There’s a software application na nag Procedures: data entry procedures, error determine kung ano ba ang gusto. correction procedures, paycheck distribution procedures. Information Systems and the Decision-Making ➔ How do we distribute the data to the Process system. Information systems also help store managers and other business professionals make better Data Resources decisions. Product descriptions, customer records, employee Example: files, inventory databases. Decisions about what lines of merchandise need to be added or discontinued and what Network Resources kind of investments they require are Communications media, communications typically made after an analysis provided by processors, network access, control software. computer-based information systems. ➔ Any data that goes and comes through. Lahat ng dumadaan. (This function not only supports the decision making of store managers, buyers, and others, but Information Products also helps them look for ways to gain an advantage over other retailers in the competition for Management reports and business documents customers.) using text and graphics displays, audio responses, and paper forms. ➔ Mga responses, whether in paper or soft Types of Information Systems forms. Information Systems and the Decision-Making For operations support Process help run the daily business, but do not provide much information for managerial decision-making Transaction processing systems (batch or real-time) ○ Example is the receipts from Jollibee, it is real-time. ○ Need ng date and time for every receipts Process Control Systems (industrial processes) Enterprise Collaboration Systems (office ➔ Nagtratrabaho for the system, whatever we automation; team communication/productivity) input and process, it is called Operation Support System. For management support ➔ Management Support System is the one who disapprove of kung pwede ito or not. Management Information Systems (pre-defined ➔ Lahat ng nagiging input ng dalawang ito, when reports) e.g. Annual budgeting it is clamped together, it supports lahat ng apat sa baba (yung brown).  Decision Support Systems (modeling; what if analysis) e.g. Contract cost-analysis Executive Information Systems (internal/external sources) e.g. 5-year operating plan Management Support Systems When information system applications focus on providing information and support for effective decision making by managers. Management Support Systems Management information systems: Provide information in the form of prespecified reports and displays to support business decision making. Examples: sales analysis, production performance, and cost trend reporting systems. Decision support systems: Provide interactive ad hoc support for the decision-making processes of managers and other business professionals. Examples: product pricing, profitability forecasting, and risk analysis systems. Executive information systems: Provide critical information from MIS, DSS, and other sources tailored to the information needs of executives. Examples: systems for easy access to analyses of business performance, actions of competitors, and economic developments to support strategic planning. ○ How did business perform for the last two years? Input the MIS and DSS.  COMPUTER RESOURCE ○ Generated a substantial amount of heat, leading to frequent overheating and malfunctions. Computer Resources ○ Limited to basic arithmetic and logical operations with relatively slow processing speeds compared Computer resources refer to any component that a to later generations. computer system utilizes to perform its functions. These resources can be classified into several key categories, which include: II. Second Generation (1950s-1960s): transistors The replacement of vacuum tubes with transistors, History of Computer Resources which were smaller, more efficient, and reliable. Examples: Early Beginnings of Computer Resources ○ IBM 7090: used to develop the first weather forecasting models, and it was also used to Abacus perform the calculations for the Apollo 11 Punch cards moon landing. Slide Rule Napier's Bone Characteristics and Limitations Mechanical Calculators ○ Transistors still generated heat, although less than vacuum tubes. ○ Computers remained relatively large. Evolution of Hardware ○ Operating systems were basic, limiting HARDWARE multitasking. Hardware refers to the physical components of a ○ Required specialized knowledge for operation computer system, such as the CPU, memory, and and maintenance. storage devices. Characteristics: Physical Presence: Tangible and can be III. Third Generation (1960s-1970s): physically touched and seen. integrated circuits (ICs) Durability: Built to last for extended periods but Brought the invention of integrated circuits (ICs), susceptible to wear over time. which combined multiple transistors onto a single Dependent on Software: Requires software to chip. function properly. Upgradeable: Can be replaced or upgraded to Examples: enhance system performance. ○ Minicomputers: Smaller, less expensive Power Consumption: Requires energy to operate computers like the DEC PDP-8 and can vary in efficiency. ○ Large Mainframes: Dominant computers of the era, large and costly but powerful. I. First Generation (1940s-1950s): Characteristics vacuum tubes ○ Reduced cost, size and improved performance In this generation it was characterized by the use of of computers. vacuum tubes for circuitry. ○ Powerful computers for complex business and First Computer utilize Vacuum tubes: scientific operations. ○ ENIAC (Electronic Numerical Integrator and ○ Constrained memory capacity. Computer) ○ Basic and complex programming tools for ○ UNIVAC (Universal Automatic Computer) non-experts. Characteristics and Limitations ○ Extremely large, often filling entire rooms.  IV. Fourth Generation (1970s-1990s): Evolution of Software microprocessors The development of microprocessors—entire Software CPUs integrated onto a single chip. This generation Software refers to a collection of programs, data, marked the beginning of personal computing. and instructions that tell a computer or electronic Examples: device how to perform specific tasks. It is the ○ The introduction of microprocessors like the non-tangible component of a computer system, as Intel 4004 led to the development of personal opposed to hardware, which consists of the computers, including the Apple II, IBM PC, physical components. and Commodore 64. Characteristics and Limitations Characteristics: ○ Graphical User Interfaces (GUIs): made user Intangible: Unlike hardware, software cannot be interfaces more accessible, enabling physically touched or held. non-technical users to operate computers but Modifiable: Software can be updated or modified pretty basic. to improve functionality or address security ○ Early PCs still experienced hardware failures vulnerabilities. and software bugs. Dependent on Hardware: Software requires ○ Early microprocessors had limited computing hardware to run and perform its functions. power, storage, and GUIs. ○ Programs were not compatible across I. Early Software (1950s-1960s) platforms. Software in this 1950's to 1960's era was designed ○ PCs experienced hardware and software for specific tasks, mainly for scientific and military issues. purposes, as computers were large and expensive. Example: V. Fifth Generation (1990s-Present): ○ FORTRAN (Formula Translation): Introduced artificial intelligence (AI), quantum in 1957, this high-level programming language computing, and supercomputers. was designed for scientific and engineering Defined by advancements in artificial intelligence calculations, enabling users to write complex (AI), quantum computing, and the growth of programs more easily than using assembly supercomputers. language. Artificial Intelligence: Machine learning and Characteristics and Limitations: neural networks transform fields like healthcare, ○ Low-level languages like assembly and early finance, and robotics by allowing computers to high-level languages like FORTRAN and process data like humans. COBOL were used. Quantum Computing: Utilizes quantum ○ Software was single-purpose and mechanics to solve complex problems beyond hardware-dependent. traditional computers. Still in the research phase. ○ Informal methods of development, lacking Supercomputers: Exponential growth in portability and automation. computational power, used in weather forecasting, ○ Programs were input manually, often drug discovery, and space exploration. error-prone, with limited storage and power.​ Limitations: ○ The rise of cloud computing and IoT introduces significant concerns regarding data privacy II. Rise of Operating Systems (1970s) and cybersecurity. The 1970s witnessed the development of operating ○ Performance heavily relies on data quality and systems that provided standardized management is susceptible to inherent biases. of computer resources, enabling more efficient program execution and multitasking.  Example: It offers tools for computing, data storage, and ○ Unix: Developed at Bell Labs in 1969, Unix machine learning. became one of the most influential operating Characteristics: systems, known for its modular design and ○ Rise of SaaS, web applications (e.g., Google portability, serving as the foundation for many Docs), Agile/DevOps methodologies. modern systems​. ○ Cloud computing and virtualization allowed Characteristics: scalability but rely on constant internet access. ○ Enabled time-sharing, file management, and ○ Security and data privacy concerns increased memory allocation. with cloud adoption. ○ Introduction of multi-user capabilities but still limited in functionality. ○ OS tied to specific hardware, reducing portability. Importance of Computer Resources III. Software Boom (1980s-1990s) The 1980s and 1990s saw a dramatic expansion in COMMUNICATION the software industry, driven by the personal computer (PC) revolution and the introduction of Instant Connectivity and Collaboration: user-friendly software for the general public. Enhance global connectivity by enabling instant Example: communication through the internet, social media, ○ Microsoft Windows: Launched in 1985, and digital platforms. Windows popularized graphical user interfaces, making computing more accessible BUSINESS to the general public. ○ Apple Macintosh: Released in 1984, it further Streamlined operations showcased the potential of GUI, influencing Business intelligence: Collect and analyze large software design across platforms amounts of data sets to gain insights to make Characteristics: informed, growth-focused decisions. ○ Shift from system to consumer applications Enhanced customer experiences: Enable (word processors, databases). personalized marketing, efficient customer ○ Object-Oriented Programming (OOP) support, and smooth online transactions. emerged, promoting code reuse. ○ Increased complexity brought software bugs, security flaws, and compatibility issues. EDUCATION IV. The Internet and Cloud Era Access to information: Computers and the (2000s-Present) internet provide pupils, students, and educators The 21st century has seen the rise of the internet with access to virtually limitless amounts of and cloud computing software distribution into information and educational resources. services over the web. Interactive learning: Offers interactive learning Example: experiences through multimedia, simulations, and ○ Amazon Web Services (AWS): Launched in other educational software. 2006, AWS revolutionized the tech landscape Digital literacy: Promote skills in navigating by providing scalable cloud computing digital environments, crucial for academic and services. career success in the modern era. ○ Google Cloud Platform (GCP): Launched in 2008, provides cloud services for building and ENTERTAINMENT scaling applications on Google’s infrastructure.  Diverse Access and Creation: Offer Software Resources entertainment and creative tools for streaming, gaming, and content creation, enabling global Types of software resource sharing and expression. System Software ○ This type of software manages the computer's hardware and provides a SECURITY AND CRIME platform for other software to run. Awareness of Risks: Computer resources ○ Examples: Operating systems (like introduce risks such as cybercrime, identity theft, Windows, macOS, Linux), device and online fraud. drivers, firmware. Security Measures: Employing antivirus Application Software software and strong passwords is essential for ○ Designed to perform particular functions online safety. for users. ○ Examples: Word processors, spreadsheets, web browsers, games, Types of Computer Resources media players. Utility Software Hardware Resources ○ Specialized tools for system maintenance: Helps manage and Component of computer hardware optimize the computer's performance. Input Devices ○ Examples: Antivirus software, disk ○ Keyboard cleaners, backup tools, compression ○ Mouse ○ Scanner utilities ○ Microphone Output Devices ○ Monitor Network Resources ○ Printer Network Infrastructure ○ Speakers Network infrastructure refers to the hardware and Central Processing Unit (CPU) ○ The "brain" of the computer, it processes software that enable network connectivity and instructions and performs calculations. communication between users, devices, apps, the Memory internet, and more. ○ Stores data and instructions that the CPU needs to access. THREE TYPES OF NETWORK Storage Devices INFRASTRUCTURE ○ Store data persistently, even when the computer is turned off. Examples Hardware Infrastructure include hard drives and solid-state Software Infrastructure drives. Network Services Network Interface Card (NIC) ○ Enables the computer to connect to a Network Infrastructure MANAGEMENT network, such as the internet. Network administrators ensure optimal network Motherboard performance by identifying bottlenecks, solving ○ The main circuit board that connects all the components of the computer. issues, and scaling infrastructure to support Power Supply Unit (PSU) business growth. ○ Converts AC power from the wall outlet into DC power for the computer's FIVE KEY AREAS components. Network Infrastructure Monitoring Configuration Management Performance Management  Fault Management Private Cloud Security Management ○ Infrastructure is dedicated to a single organization, either hosted on-premises or by a cloud provider. Human Resources Hybrid Cloud It is associated with the manpower required to run ○ Combines both public and private clouds, and manage the system allowing data and applications to be shared Technology has transformed HR. between them. Community Cloud Data Resources ○ Shared infrastructure between several Data exists in various forms: organizations with similar requirements. Alphanumeric data includes numbers and characters that describe business Cloud Services: transactions. 3 Main Types: Text data consists of written 1. IaaS communications. a. Infrastructure as a Service (IaaS) Image data includes graphics and visuals. providers, such as Amazon Web Services Audio data comprises human voices and (AWS), supply a virtual server instance and sounds. storage, as well as application programming interfaces (APIs) that let users migrate workloads to a virtual Cloud and Virtual Resources machine (VM). It describes infrastructure and computer services 2. PaaS that are hosted online as opposed to being a. Platform as a service (PaaS), cloud physically located on-site. Without requiring actual providers host development tools on their hardware, these remotely accessible resources infrastructures. which include storage, processing power, and 3. SaaS applications allow enterprises to scale up or down a. Software as a service (SaaS) is a as needed. distribution model that delivers software applications over the internet; these applications are often called “web Cloud computing services”. It is the use of hosted services, such as data storage, servers, databases, networking, and Additional: software over the internet. 4. FaaS a. Function as a Service (FaaS), known as “serverless computing”, where developers run small pieces of code in response to events without managing servers. 5. STaaS a. Storage as a Service (STaaS), A scalable storage resources over the cloud. Remote Access Remote Desktop Protocol (RDP) ○ A Microsoft protocol allowing users to remotely control a Windows computer via a network connection. Deployment Model: Virtual Private Network (VPN) Public Cloud ○ A secure tunnel that enables remote users ○ Services are delivered over the internet to to access private network resources, as multiple customers, often in a multi-tenant though they were connected locally. Secure Shell (SSH) environment.  ○A protocol that allows secure remote Benefits of a Sustainable IT: access to servers and computers, Energy efficiency primarily used for command-line access Renewable energy and administration. Cloud computing Virtual Network Computing (VNC) ○ Allows graphical desktop sharing, Virtualization enabling users to remotely control a Sustainable sourcing computer. Product lifecycle Sustainable software development New technologies Energy Resources Energy Monitoring Systems? By using software, an energy monitoring system Challenges in Computer makes it possible to monitor on how much energy is used within a company. It has the capacity to Resource simultaneously track a full building or just one room. Which provides significant benefits such as : Real-Time Energy Data Challenges Measure Results 1. Resource Allocation Improve Facility Performance Reduces Operational Costs, and ensuring that resources are distributed efficiently Improve your Company’s Brand Image among competing applications or users without causing bottlenecks. INTERNET OF THINGS (IOT) ○ Overutilization: Overutilization refers to the Load Handling situation where computing resources such as ○ The load that a power grid needs to supply processors, memory, storage, or network towards is every-changing. Smart grids can bandwidth are used beyond their optimal help advise consumers to change their capacity. usage patterns during times of heavy load. Ex. When the system’s CPU or memory is Demand Response Support overutilized, response times increase, ○ Smart grids can help consumers reduce making applications and processes run their electricity bills by advising them to use slower than expected. devices with a lower priority when the electrical rates are lower. This also helps in 2. Security and Data Privacy the real-time analysis of electrical usage Cybersecurity issues in computer resources (CR) and charges. arise when systems are exposed to risks that could Decentralization of Power Generation compromise the confidentiality, integrity, or ○ Smart grids help decentralize power grids availability of data and operations. since they can easily help incorporate ○ Data Breaches - unauthorized access to renewable energy sources such as solar sensitive data. panels at an individual scale and ○ DDoS Attacks - exploit the fact that many discretion. systems have limited capacity to handle a surge in traffic. Sustainable it ○ Insider Threats - occur when individuals within It is an approach to corporate information an organization misuse their access to technology that aims to minimize the environmental computer resources for malicious purposes impact of IT operations and their contribution to climate change 3. Obsolescence Hardware Obsolescence refers to the process by which hardware becomes outdated, no longer  supported, or unable to meet current technological significantly higher speeds than traditional needs due to advances in technology. computers ○ current advancements in mobile network technology but also the ongoing evolution Future trends towards even faster, more reliable, and interconnected systems Emerging Technologies When talking about emerging technology it is mainly used for describing two things: New Technology and Development in Existing Applications for Engineers Technology CAD Software Ai and machine Learning Computer-Aided Design (CAD) software is ○ AI is a trained final output machine essential for engineers to create precise 2D and which mimic like human brain 3D models. ○ ML is a subset of AI. It is a technique to achieve AI Numerical Computing Tools This application, such as MATLAB, are used for Edge Computing ○ a distributed information technology (IT) performing complex calculations, simulations, architecture in which client data is processed and algorithm development. at the periphery of the network, as close to the originating source as possible. Finite Element Analysis (FEA) Software FEA software or the Finite Element Analysis QUANTUM Computing (FEA) Software, like Abaqus, is crucial for ○ represents a radical departure from classical assessing how structures will behave under computing, promising to solve complex various conditions. problems that are currently intractable for classical computers. Data Analysis Tools Data analysis tools, such as Microsoft Augmented Reality & Virtual Reality Excel, enable engineers to manipulate and ○ Augmented Reality (AR) interpret data effectively. Overlay of Real and Digital World Registration and alignment in 3D Simulation Software Real time interaction ○ Virtual Reality (VR) Simulation software allows engineers to The creation of a virtual world where model and test systems under various others may react scenarios without physical prototypes. Graphics used are made to trick our minds in believing that there is no Building Information Modeling (BIM) difference between that world and our BIM software, such as Revit, revolutionizes world the architecture, engineering, and construction (AEC) industry by providing a Cybersecurity and Privacy Solutions digital representation of a building's physical ○ creates a safe digital environment where and functional characteristics. individuals can trust that their data is secure and handled properly Automation Software Automation software streamlines repetitive High Performance Computing (HPC) tasks, reducing manual labor and increasing ○ the practice of using supercomputers and efficiency. parallel processing techniques to solve complex computational problems at  General Systems Model of a Firm OUTPUT FIRM ○ the results of these processes manifest as completed products, provided services, financial A firm is a business entity that aims to profit outcomes, customer insights, and by selling goods and services. the overall standing in the market. TYPES OF FIRMS GENERAL SYSTEMS MODEL Sole Proprietorship ○ a business owned and run by one individual. This person is entirely accountable for all expenses and obligations and holds ownership of all assets related to the business. Partnership ○ a business owned by two or more individuals, with no maximum limit on the number of partners who can hold an ownership interest. ➔ a conceptual framework that views an organization as an open system interacting Corporation with its environment. ○ are public companies that are legally distinct from their owners, setting them apart from PHYSICAL RESOURCE FLOW other types of firms. refers to the movement of tangible Cooperative resources within a firm. ○ like a corporation in that its owners enjoy limited liability; however, unlike a VIRTUAL RESOURCE FLOW corporation, its members have a voice in the refers to the movement of intangible company's operations. resources within a firm. FIRM’S CONTROL MECHANISM HOW DO FIRMS FUNCTION? Performance Standard INPUT ○ a benchmark or target set by ○ are the resources that a company management that defines the uses to create goods or services. expected level of performance in specific areas, such as productivity, PROCESS quality, efficiency, or financial results. ○ process component includes the activities that turn inputs into Information Processor outputs.  ○ collects, analyzes, and reports data regarding the organization’s performance. This can include automated systems or manual processes. Management ○ responsible for interpreting the data and making decisions based on how actual performance compares to the performance standards. FEEDBACK LOOP SUPPLY CHAIN MANAGEMENT is a process in which information about the is the strategic coordination of business outcome or performance which involves functions within a business organization and collecting inputs from customers, throughout its supply chain for the purpose employees, or other stakeholders, analyzing of integrating supply and demand the data, and utilizing the insights to help management. identify the areas for improvement and drive positive changes. SUPPLY CHAIN Positive Feedback Loop is the sequence of organizations—their facilities, functions, and activities— that are A positive feedback loop starts when a involved in producing and delivering a customer or employee shares a great product or service. The sequence begins review about the business. These loops with basic suppliers of raw materials and help to reinforce positive action, and extends all the way to the final customer. encourage repeat business. Negative Feedback Loop GOAL OF SUPPLY CHAIN MANAGEMENT A negative feedback loop is the cycle of turning customer or employee complaints match supply to demand as effectively and into improvements. These loops help to find efficiently as possible. problem areas and spot issues before they escalate further. KEY ISSUES OF SCM 1. Determining the appropriate level of VALUE CHAIN outsourcing. 2. Managing procurement. It is a series (chain) of activities that 3. Managing suppliers. includes inbound logistics, warehouse and 4. Managing customer relationships. storage, production and manufacturing, 5. Being able to quickly identify problems and finished product storage, outbound logistics, respond to them. marketing and sales, and customer service.  ENTERPRISE RESOURCE PLANNING handle change. Change can be caused by internal factors, such as those initiated by employees at all levels, or by external It is a software that helps integrate the factors, such as activities wrought by components of a company, including most competitors, stockholders, federal and state of the supply chain processes, by sharing laws, community regulations, natural and organizing information and data among occurrences (such as hurricanes), and supply chain members. general economic conditions. CUSTOMER RELATIONSHIP MANAGEMENT A. Sustaining Change B. Disruptive Change It is the combination of practices, strategies and technologies that companies use to ORGANIZATIONAL CULTURE AND CHANGE manage and analyze customer interactions and data throughout the customer lifecycle. Organizational culture and change are deeply interconnected. Culture can either KEY FEATURES OF CRM support or resist change, depending on how aligned the existing culture is with the 1. Contact management changes being introduced. When changes 2. Sales Management clash with the organization's culture, 3. Customer Support resistance often occurs, making change 4. Marketing Automation efforts difficult. 5. Analysis 6. Social networking USER SATISFACTION 7. Access by smartphones 8. Import contact data To be effective, enhancements must satisfy users and be embraced by all members of ORGANIZATIONAL CULTURE the organization. Users' satisfaction with a computer system It consists of the major understandings and and the information it provides is typically assumptions for a business, corporation, or determined by the system's quality and the other organization. The understandings, value of the information. which can include common values, norms, behaviors, and approaches to decision TECHNOLOGY ACCEPTANCE MODEL making, are often not stated or documented as goals or formal policies. A model that describes the factors leading to higher levels of acceptance and usage of KEY COMPONENTS technology. - Values Perceived Usefulness (PU) - Norms Perceived Ease of Use (PEOU) - Behaviors Quality of the Information System Organizational Support ORGANIZATIONAL CHANGE Deals with how for-profit and nonprofit organizations plan for, implement, and  TECHNOLOGY DIFFUSION a measure of how widely technology is spread throughout the organization. TECHNOLOGY INFUSION is the extent to which technology is deeply integrated into an area or department. PERFORMANCE-BASED INFORMATION SYSTEMS A management approach that focuses on measuring and evaluating the performance of information systems to ensure they are aligned with the organization's goals and objectives. 3 STAGES IN THE BUSINESS USE OF IS 1. Cost Reduction and Productivity - to reduce costs and improve productivity. 2. Competitive Advantage - to gain a competitive edge in the market. 3. Performance-Based Management - to consider strategic advantages and costs, focusing on productivity, ROI, and net present value. COMMON MEASURES OF IS VALUE Productivity Return on Investment (ROI) Earnings Growth Market Share and Speed to Market Customer Awareness and Satisfaction Total Cost of Ownership (TCO)