Functional Areas
Functional Silos --> takes a specific core business function, interdependent
Accounting
Provides quantitative information about the finances of the buisness including recording, measuring, and describing financial information
Finance
Deals with the strategic financial issues associated with increasing the value of the business, while observing applicable laws and social responsibilites
Human Resources
Includes the policies, plans, and procedures for the effective management of employees
Sales
Is the function of selling a good or service and focuses on increasing customer sales, which increases company revenues
Marketing
Is the process associated with promoting the sale of goods or services. The marketing department supports the sales department by creating promotions that help sell the company's products
Operations management
The management of systems or process that convert or transform resources into goods and services
Management Information Systems
Is a general name for the buisness function and academic discipline covering the application of people, technologies, and procesdures collectively called information systems to solve business problems
Information technology
Is a field concerned with the use of technology in managing and processing information
Data
Are raw facts that describe the characteristics of an event EX. Date, item number, item description
Information
Is data converted into a meaningful and useful context Ex. Best selling item
Business Intelligence
Refers to applications and technologies that are used to gather, provide access to, and analyze data and information to support decision making efforts
Best Position for Success
People use information technology to work with information
Information- Functional Culture
Using info in order to have influence or power over others.
Information- Sharing Culture
trust other employees to use info in order to improve their performance.
Information- Inquiring Culture
Search for info to better understand the future, align themselves with current trends, and new directions
Information-Discovery Culture
Open to new insights about crisis and radical changes and seek ways to create competitive advantages
CEO
Chief Executive Officer
CFO
Chief Financial Officer
COO
Chief Operations Officer
CIO
Chief Information Officer; Is a manager, leader, and communicator (in charge of IT)
CTO
Chief Technology Officer; responsible for speed, accuracy, availability, and reliability of an org. IT
CSO
Chief Security Officer; responsible for the security of IT systems
CPO
Chief Privacy Officer; Ethical and legal use of information within an org.
CKO
Chief Knowledge Officer;Collecting, maintaining, and distributing the org. knowledge
Key Performance Indicators (KPI)
Are the measures that are tied to business drivers. Metrics are the detailed measures that feed KPI's.
Efficiency IT metrics
Measures the performance of the IT system itself such as throughput, speed, and availability.
Effectiveness IT Metrics
Measure the impact IT has on business processes and activities....
Benchmarks
Baseline values the system seeks to attain
Benchmarking
Is a process of continuously measuring system results
Competitive Advantage
A product or service that an organization's customers place a greater value on than similar offerings from a computer
First-mover advantage
Occurs when an organization can significantly impact its market share by being first to market with a competitive advantage
Environmental Scanning
Is the acquisition and analysis of events and trends in the environment external to an organization
To analyze competitive advantages
1. Five Forces Model 2. Three generic strategies 3. Value chain analysis
Five Forces Model
1. Buyer power 2. Supplier Power 3. Threat to substitute products or services 4. Threat to new entrants 5. Rivalry among existing competitors
Buyer Power
High when many choices to choose form (vice versa)
Loyalty Programs
Reward customers based on the amount of business they do with a particular org.
Supplier Power
High when buyers have few choices of whom to buy from
Supply Chain
All parties involved, directly or indirectly in procurement of a product
B2B (business to business) marketplace
Internet based services brings together many buyers and sellers
Private Exchange
Single buyer posts needs and opens the bidding to any supplier
Reverse Auction
Is an auction format in which increasinly lower bids and be increasingly low prices