Information Systems
something used to manage information and business processes
MIS
the strategic use of information technology and people to solve business problems or capitalize on new opportunities
What composes a Business Process?
A set of organizational resources and information, which interact to help achieve business objectives
Information Systems Triangle
People, Process, IT.
Information Systems Architecture
Made up of Enterprise Systems, Collaboration Systems, and Business Intelligence
Systems Development Lifecycle
Planning, Analysis, Design, Development, Implementation
What is MIS?
Using people, technology, and business processes to solve problems and create opportunities
How is IS different from IT?
IS handles the management, design, and implementation of technology that is created and maintained by IT
What is the SDLC?
Systems Development Life Cycle that is used by MIS professionals to develop plans for implementing new technology into existing business processes
The Ten Steps of Project Management
1. Define the Work
2. Build the Schedule and Budget
3. Manage the Schedule and Budget
4. Manage Issues
5. Manage Scope
6. Manage Communication
7. Manage Risk
8. Manage HR
9. Manage Quality and Metrics
10. Manage Procurement
Business
An organized effort to convert resources into a product of service for customers with a goal of making a profit
Business Process
A systematic way of organizing resources and effort to ensure the appropriate flow of information and materials and produce a product or service
Competitive Advantage
The product or service which customers value more highly than similar offerings
Environmental Scanning
A process of acquiring and analyzing events and trends, industry and related markets within which the business operates and competes
Porter's Five Forces Model
Tool that businesses use to determine whether a particular industry or market segment is attractive to them (External Analysis)
Porter's Four Generic Competitive Strategies
Cost, Cost Focus, Differentiation, Differentiation Focus
Primary Activity
Process that make, deliver, market, sell, and service an organizations products or services
Strategy
The means (game plan or blue print) by which the business achieves its goals
Support Activity
Processes such as management, accounting, and finance that support the primary activities
Value Chain
Views a business as a chain of basic activities that add value to a product or service
What is a competitive strategy?
Based on the 4 generic competitive strategies, a company chooses a way in which to compete in their industry and remain sustainably competitive
How does organizational strategy determine what IS should be used?
Depending on the focus of a company, their strategy would determine the IS that would be most beneficial. For example, a company focused on low cost would implement an inventory tracking system to help lower costs by having only the necessary inventory in
What is the 5 forces model?
Model developed by Michael Porter to determine the overall attractiveness of an industry
How does the value chain determine business processes?
Where a company operates within the value chain, be it creating raw materials or manufacturing the actual product, will determine the processes needed. For example, Apple operates both in the design phase and marketing phase of the value chain, which requ
How do information systems provide competitive advantage?
Competitive advantage is being able to create more value out of a product or service than competitors. IS allows companies to operate more efficiently which lowers costs and improve competitive advantage
Computational Systems
Out of date systems, which automated repetitive activities. They stand alone and are not integrated with one another
Customer Relationship Management (CRM)
A customer centered strategy businesses adopt to develop stronger relationships with customers. These systems support value chain activities that involve customer interaction
Enterprise Resource Planning (ERP)
A software that integrates functional systems into a single system, supported by one database to serve the needs of all functional areas in a business
Enterprise Systems
Systems that integrate all key organizational functions across functional areas, thus breaking down department silos
Functional Systems
Grew out of computational systems. These expanded to include the general functional areas around payroll, accounting and operational areas
Supply Chain
Group of suppliers, manufacturers, and distributors that manufacture and deliver a product to the customers
Supply Chain Management
Integrate inbound and outbound logistics activities across various parties
What are the different Enterprise Systems?
Supply Chain Management (SCM)
Customer Relationship Management (CRM)
Enterprise Resource Planning (ERP)
Purpose of SCM
To improve efficiency among the parties involved in the supply chain
Benefits and Challenges of SCM
B: Increased efficiency, inventory management, sales forecasting
C: Getting all parties on board and connected using the same system
Purpose of CRM
To improve customer relationships and loyalty
Benefits and Challenges of CRM
B: Better communication with customers, more knowledge of customers
C: Can be seen as invasive to the consumer, becoming a customer-centric business is complex and time consuming
Purpose of ERP
Used to integrate all parts of the value chain, using one database that breaks down department silos
Benefits and Challenges of ERP
B: Improve efficiency across the whole company
C: Costs can be very high, very tedious to implement, often times a backlash from employees having to learn a new program
Business Process Management (BPM)
A systematic approach of streamlining tasks and activities in order to achieve a specific goal typically to deliver value to customers and drive more revenue
Operational Level
Drivers that relate directly to the operation of the business, such as future expansion into new markets
Business Process Drivers
1. The need to increase efficiency
2. The need to evaluate business practice as part of an organizational development process
3. The need to evaluate potential new business ventures or business offerings
4. The need to manage the company's knowledge resou
What is the overall goal of BPM?
To understand the As-Is process and define the To-Be process
Key Performance Indications of BPM
1. Cost: average cost to process and ship a customer order
2. Quality: accurate and timely customer order fulfillment percentage
3. Time: average cycle time to process a customer
Attribute
A characteristic of an entity (ex. the genre of a brand)
Crow's Foot
Used in one-to-many relationships (ex. one customer with many orders)
Entity-Relationship Diagram (Data Model)
Presents a summary of data needed and how it should be organized
Primary Key
Identifier that is unique and associated with one and only one row or entitiy
Foreign Key
Primary key that is used in another table as a dependent variable
What is the purpose of databases?
To provide a central location for all information about a company to be held, thus allowing access by anyone in the company, which improves company wide efficiency
What are the elements of a database
Primary keys, attributes, relationships and entities (PARE)
What is a database management system and what does it do?
A system used to structure data found in a database and make it easily extractable so it can be used and interpreted by a company to make business decisions
How are databases developed?
Using a method such as the SDLC, companies determine what they need out of their system before creating it
What is an ERD and what are its elements?
Entity Relationship Diagram is one way to model the nature of relationships between entities in a database. The elements include the relationship, attribute, cardinality, and entity (RACE)
Business Intelligence
A variety of software applications used to analyze an organizations raw data to provide insights
Data Mining Systems
Uncover previously unknown patterns patterns and relationships in the data. Helps understand the past and predict the future
Data Warehouse
Application that extracts, cleans, and stores a subset of data form enterprise systems and other types of operational systems. Clean info so the BI applications can use it
Data Inconsistencies
When data is stored in different locations and on different platforms. Presents inconsistency because data is localized in standalone systems
Reporting Systems
Simpliest of BI systems. Sort, group, summarize, average, and compare data
What are the components of BI systems?
1. Various functional or enterprise databases
2. Data warehouse
3. BI Applications & Tools
What are the problems with data that may hinder BI?
Variety of functional systems that aren't integrated. Data is spread out. Data must be consistent and accessible for consolidation.
How does a business benefit from BI?
1. Cut operational costs
2. Identify new opportunities
3. Learn from the past by identifying patterns
4. Firms have clear picture of performance on all levels of operations
5. Users can create reports without having to go through specialized IT personnel
Difference between data mining and reporting systems
Dating Mining: more sophisticated and they use analytics to find patterns and relationships
Reporting Systems: Less sophisticated and simply generate reports with timely and relevant to various users
Structured Collaboration
Process collaboration". Collaboration where individuals participating in business process activities share information and coordinate their efforts as they transact business (customer orders, purchase orders). This is workflow driven and the information
Unstructured Collaboration
Information collaboration". Focuses on sharing information to facilitate the completion of general tasks. Ex: email, online discussion forums, file sharing. Based on an as-needed basis.
Groupware System
Applications that facilitate information sharing and interactions between members of a workgroup. Ex: IBM Notes
Workflow Management System
Applications used to create, store, edit, control, and publish information often on the internet, extranet, and intranet websites. Used to publish articles, manuals, documentation, and brochures.
Content Management Systems
Applications used to create, store, edit, control, and publish information often on the internet, extranet, and intranet websites. Used to publish articles, manuals, documentation, and brochures
Knowledge Management
Applications that support the creation, capturing, evaluation, storage, retrieval and application of knowledge and information in the organization. Commonly used by consulting firms
What are collaboration systems?
Applications that enable the sharing and flow of information between team members to support collaboration within and across businesses. Support telecommuting, online meetings, deploying applications, and remote project and sales management
What is the difference between intranets and extranets?
Intranets are on an as-needed basis, where the information does not flow in a specific design/rule. These are a "private internet" that a single company will use to share central company information. Extranets follow a specific design/rules and are used a
What are the various types of collaborations systems?
Content Management System (CMS), Knowledge Management, Groupware Managements, and Workflow Management
What type of collaboration systems do you use to facilitate structured collaboration?
Workflow Management Systems
What type of collaboration systems do you use to facilitate unstructured collaboration?
Groupware Management Systems, Knowledge Management Systems
What are the business benefits of collaborations systems?
1) Project coordination and deliverable completion
2) streamlining innovation and product development
3) providing a platform for general knowledge sharing and use
4) teams from all over the world can effectively work on a project at the same time, saving
Business Process Management
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