Tim50 Quiz 1 Study Guide PDF

‭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 ‬