CIS 2200 - Final Exam Review PDF

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Final Exam Review...

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MIDTERM #1 Review Chapter 1 ❏ Definition, Benefits, What’s New in MIS ❏ Benefits of Digital Firms ❏ Strategic Business Objectives, Examples (Walmart, Verizon, Mandarin Hotel) ❏ Activities in Information Systems ❏ Difference between Data and Information ❏ Dimensions of Information Systems ❏ Hierarchy of Authority ❏ Separation of Business Functions ❏ UPS Case ❏ Investments in Information Technology ❏ Business Information Value Chain Chapter 2 ❏ Sanofi Pasteur Case ❏ Definition and Examples of Business Processes ❏ Cross-Functional Processes ❏ Management Information Systems (TPS, DSS, ESS, MIS) ❏ NFL Case ❏ Enterprise Systems, Enterprise Applications (ERP, SCM, CRM, KMS) ❏ Intranets and Extranets ❏ E-Business, E-Commerce, E-Government ❏ Requirements, Importance, and Benefits of Collaboration ❏ Social Business ❏ Video Conference Case ❏ Time/Space Collaboration and Social Tool Matrix (Examples of the technologies) Chapter 3 ❏ Starbucks Case ❏ Definitions of Organization (Behavioral, Technical, and Microeconomic) ❏ Features of Organization ❏ Disruptive Technologies ❏ Types of Organizational Structures ❏ Transactional Cost Theory and Agency Theory ❏ Organizational Resistance ❏ Porter Model ❏ Competitive Forces, Strategies for dealing with them ❏ Value Chain Model

Chapter 1: Information Systems in Global Business Today -

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How Information Systems are Transforming Business: 1) Social networking tools being used by businesses to connect employees, customers, and managers 2) Internet advertising continues to grow at more than 20% per year 3) New laws require businesses to store more data for longer periods 4) Changes in business result in changes in jobs and careers New in Management Information Systems: 1) IT Innovations 2) New Business Models 3) E-commerce Expansion 4) Management Changes 5) Changes in Firms and Organizations Digital Firm: an organization where nearly all significant business processes and relationships with customers, suppliers, and employees are digitally enabled, and key corporate assets are managed through digital means Business Processes: the unique ways in which organizations coordinate and organize work activities, information, and knowledge to produce a product or service Business Model: an abstraction of what an enterprise is and how the enterprise delivers a product or service, showing how the enterprise creates wealth Strategic Business Objectives: 1) Operational Excellence: improve the efficiency of their operations in order to achieve higher profitability (Ex: Walmart digitally links its suppliers to all their stores) 2) New Products, Services, and Business Models: enables firms to create new products and services as well as entirely new business models (Ex: Apple transformed old business model of music distribution) 3) Customer and supplier intimacy: customers who are served well become repeat customers who purchase more; close relationships with suppliers result in lower costs (Ex: Mandarin Oriental Hotel keep track of guests’ preferences) 4) Improved Decision Making: made it possible for managers to use real-time data from the marketplace when making decisions (Ex: Verizon use digital dashboard to provide real-time information to managers about customer complaints, network performances, etc.)

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5) Competitive Advantage: doing things better than your competitors, charging less for superior products, and responding to customers and suppliers in real time all add up to higher sales and profits (Ex: Apple, Walmart, and UPS) 6) Survival: they are necessities in doing business because of industry-level changes and federal and state statutes and regulations (Ex: CitiBank’s introduction of ATMs encouraged customers to rush to provide similar services for customers) Information Technology (IT): all the hardware and software technologies a firm needs to achieve its business objectives Information System: interrelated components working together to collect, process, store, and distribute information to support decision making, coordination, control analysis, and visualization in an organization Data: streams of raw facts representing events occurring in the organizations before they have been organized and arranged into information Information: data that have been shaped into a form that is meaningful and useful to human beings Activities in Information Systems: 1) Input: the collection of raw data from within the organization 2) Processing: the conversion, manipulation, and analysis of raw input 3) Output: the distribution of processed information to the people/activities that will use it 4) Feedback: output that is returned to help organizations evaluate or correct input Information Systems Literacy: includes behavioral knowledge about organizations and individuals as well as technical knowledge about computers Computer Literacy: knowledge focusing on understanding of how computer-based technologies work Management Information Systems (MIS): study of information systems focusing on their use in business and management Dimensions of Information Systems: 1) Organization: hierarchy of authority/responsibility, separation of business functions, unique business processes/culture, organizational politics a) Senior Management: makes long-range decisions about products and services, and ensure financial performance of the firm b) Middle Management: carries out the programs and plans of senior management c) Operational Management: responsible for monitoring the daily activities of the business

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d) Knowledge Workers: design products or services and create new knowledge for the firm e) Data Workers: assist with scheduling and communications at all levels of the firm f) Production or Service Workers: product the product and deliver the service 2) Separation of Business Functions: a) Sales and Marketing b) Human Resources c) Finance and Accounting d) Manufacturing and Production 3) Management: set strategies for responding to business challenges, creation of new products/services, occasionally re-creating the organization 4) Technology: tools managers use to cope with change a) Computer Hardware: physical equipment used for activities in information systems b) Computer Software: detailed, preprogrammed instructions that control and coordinate the work of computer hardware components c) Data Management Technology: software governing the organization of data on physical storage media d) Networking and Telecommunications Technology: physical devices and software that link various computer hardware components and transfer data from one physical location to another e) Network: linking of two or more computers to share data or resources f) Internet: global network of networks using universal standards g) Intranet: internal network based on Internet and WWW standards h) Extranet: private intranet that is accessible to authorized outsiders i) World Wide Web: a system with universally accepted standards for storing, retrieving, formatting, and displaying information j) IT Infrastructure: computer hardware, software, data, storage technology, and networks providing a portfolio of shared IT resources for the organization UPS Case: use information technology to maintain leadership in small-package delivery 1) Scannable barcode label contains detailed information about the sender, destination, and when it should arrive 2) Use ORION software to create the most efficient delivery route

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3) Drivers use the Delivery Information Acquisition Device (DIAD) to download route information and capture signatures 4) UPS website provides tracking information, shipping rates, and schedule pick ups Dimensions of UPS Tracking System: 1) Organizational: procedures for tracking packages, managing inventory, and providing information 2) Management: monitoring service levels and costs 3) Technology: handheld computers, barcode scanners, networks Investments in Information Systems: will result in superior returns 1) Productivity increases 2) Revenue increases 3) Superior long-term strategic positioning Business Information Value Chain: raw information is systematically acquired and then transformed through various stages that add value to that information

Chapter 2: Global E-business and Collaboration -

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Sanofi Pasteur Case: changed organization of company to improve quality 1) Wanted to give employees more opportunities to experiment and innovate on their own 2) Adopted Microsoft Yammer, an enterprise social networking platform for internal business uses, and can also create external networks linking to suppliers and customers 3) Employees use Yammer to share updates, ask for feedback, and connect volunteers to improvement initiatives Business Processes: collection of activities required to produce a product or service 1) Competitive Strength: enables the company to innovate or to execute better than its rivals 2) Liabilities: if they are based on inefficient ways of working that impede organizational responsiveness and efficiency 3) Tied to a specific functional area such as sales and marketing, human resources, finance and accounting, etc. 4) Cross many different functional areas and require coordination across apartments Businesses: can be seen as a collection of business processes Functional Business Processes Examples:

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1) Manufacturing and Production: assembling the product 2) Sales and Marketing: identifying customers 3) Finance and Accounting: creating financial statements 4) Human Resources: hiring employees Order Fulfillment Process: cross functional business process that require the close coordination of the sales, accounting, and manufacturing functions How Information Technology Improves Business Processes: 1) Increasing efficiency of existing processes: Automate many steps that were formerly performed manually 2) Enabling entirely new processes: changing flow of information, replacing sequential steps with parallel steps, eliminating delays in decision making, supporting new business models Transaction Processing Systems (TPS): computerized systems that perform and record the daily routine transactions necessary to conduct the business; they serve the organization’s operational level Examples: sales order entry, hotel reservations, payroll, employment record keeping, shipping Systems for Business Intelligence: data and software tools for organizing, analyzing, and providing access to data to help users make better business decisions Management Information Systems (MIS): 1) Serve middle management 2) Provide reports on firm’s current performance, based on data from TPS 3) Provide answers to routine questions with predefined procedure for answering them 4) Generally not flexible and have little analytic capability Decision-Support Systems (DSS): information systems at the organization’s management level that combine data and sophisticated analytical models or data analysis tools to support semi-structured and unstructured decision making Examples: Voyage estimating systems (Model-driven), Intrawest’s marketing analysis systems (Data-driven) Executive Support Systems (ESS): used by senior managers to address unstructured decision making through advanced graphics and communications 1) Address nonroutine decisions: requiring judgment, evaluation, and insight 2) Incorporate data about external events as well as summarized information from internal MIS and DSS 3) Portal: uses a web interface to present integrated personalized business content

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4) Digital Dashboard: displays on a single screen graphs and charts of key performance indicators for managing a company NFL Case: acquires player through use of information systems 1) Captured player movement data using radio frequency identification (RFID) tags beneath players’ shoulder pads 2) RFID technology records players speed, direction, location on the field, how far/long they ran 3) Data used by NFL teams, broadcasters, stadium screens, and Next Gen Stats for features on Xbox game Enterprise Applications: systems that can coordinate activities, decisions, and knowledge across many different functions, levels, and business units in a firm 1) Enterprise Systems 2) Supply Chain Management Systems 3) Customer Relationship Management Systems 4) Knowledge Management Systems Enterprise Systems: integrate data from key business processes into a single system 1) Speed communication of information throughout the firm 2) Enable greater flexibility in responding to customer requests, greater accuracy in order fulfillment 3) Enable managers to assemble overall view of operations Supply Chain Management (SCM) Systems: automate the flow of information between a firm and its suppliers in order to optimize the planning, sourcing, manufacturing, and delivery of product and services; A type of interorganizational system: automates the flow of information across organizational boundaries Customer Relationship Management (CRM) Systems: coordinate all of the business processes surrounding the firm’s interactions with its customers in sales, marketing, and service Knowledge Management Systems (KMS): support the creation, capture, storage, and dissemination of firm expertise and knowledge Intranets and Extranets: increase integration and expedite the flow of information 1) Intranets: internal networks based on Internet standards, often are private access area in the company's web site 2) Extranets: company web sites accessible only to authorized vendors and suppliers, facilitate collaboration E-Business: the use of the Internet and digital technology to execute all the business processes in the enterprise E-Commerce: the process of buying and selling goods and services electronically involving transactions using the Internet, networks, and other digital technologies

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E-Government: use of the Internet and related technologies to digitally enable government and public sector agencies’ relationships with citizens, businesses, and other arms of government Collaboration: working with others to achieve shared and explicit goals Teams: formal groups whose members collaborate to achieve specific goals Benefits of Collaboration and Teamwork: 1) Productivity: sharing knowledge and resolving problems 2) Quality: faster resolution of quality issues 3) Innovation: more ideas for products and services 4) Customer Service: complaints handled more rapidly 5) Financial performance: generated by improvements in factors above Social Business: use of social networking platforms to engage employees, customers, and suppliers 1) Aims to deepen interactions and expedite information sharing 2) “Conversations” to strengthen bonds with customers 3) Requires information transparency 4) Seen as a way to drive operational efficiency, spur innovation, and accelerate decision making Tools and Technologies for Collaboration and Social Business: 1) E-mail and Instant messaging (IM) 2) Wikis 3) Virtual world 4) Collaboration and Social Business Platforms, uses telepresence technology: allows a person to give the appearance of being present at a location other than his or her true physical location Videoconferencing Case: information systems technology allow collaboration accessible by everyone 1) Ability to coordinate multiple rich data streams from mobile, desktop, and video to create a collaborative environment 2) IX5000 reduces power usage, data transmission capacity, installation time, and total cost of purchasing and operating 3) Collaborative Business Culture: 1) Senior managers rely on teams of employees 2) Policies, products, designs, processes, and systems depend on teams at all levels to devise, to create, and to build 3) The manager's purpose is to build teams, coordinate their work, and monitor their performance “Command and Control” Organizations:

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1) No value placed on teamwork 2) Require lower-level employees to carry out orders without asking too many questions 3) No responsibility to improve processes Information Systems Department: formal organizational unit responsible for information technology services End Users: representatives of departments outside of the information systems group for whom applications are developed IT Governance: strategy and policies for using information technology within an organization, specifying the decision rights and accountabilities to ensure that information technology supports the organization’s strategies and objectives Evaluating Software Tools: 1) Identify your firm’s collaboration changes 2) Identify what kinds of solutions are available 3) Analyze available products’ cost and benefits 4) Evaluate security risks 5) Consult users for implementation and training issues 6) Evaluate product vendors Time/Space Collaboration and Social Tool Matrix: collaboration and social technologies classified in terms of whether they support interactions at the same or different times or places, and whether these interactions are remote or colocated

Chapter 3: Information Systems, Organizations, and Strategy -

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Starbucks Case: focused on improving the in-store experience 1) Rolled out new food menu of sandwiches and salads 2) Plans to expand its line of caffeinated fruit juices and nitro-cold brew drinks 3) Stores implement Wi-Fi networks for free wireless Internet access for customers, asks for customers’ email address to send promotions to 4) Launched the Mobile Order & Pay app Organization: (Technical Definition) stable, formal social structure that takes resources from the environment and processes them to produce outputs Organization: (Behavioral definition) a collection of rights, privileges, obligations, and responsibilities that is delicately balanced over a period of time through conflict and conflict resolution

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Organization: (Technical Microeconomic Definition) capital and labor are transformed by the firm through the production process into products and services; these products and services are consumed by the environment, which supplies additional capital and labor as inputs in the feedback loop Features of Organizations: 1) Use of hierarchical structure 2) Accountability, authority in system of impartial decision making 3) Adherence to principle of efficiency 4) Routines and business processes 5) Organizational politics, culture, environments, and structures Routines: precise rules, procedures, and practices developed to cope with virtually all expected situations Business Processes: collection of routines Business Firm: collection of business processes Organizational Politics: divergent viewpoints lead to political struggle, competition, and conflict Organizational Culture: all organizations have unquestioned assumptions that define their goals and products; encompasses this set of assumptions about 1) What products the organization should produce 2) How it should produce them 3) Where and for whom should they produce Organizational Environments: have a reciprocal relationship 1) Organizations are open to, and dependent on, the social and physical environment a) Need for financial and human resources b) Must respond to legislative and other requirements imposed by the government c) Must respond to the actions of customers and competitors 2) Organizations can influence their environments a) Firms form alliances with other businesses to influence the political process b) Advertise to influence customer acceptance of their products Environmental Scanning: using information systems to help managers identify external changes that might require an organizational response Disruptive Technologies: substitute products that perform as well as or better than existing product (Ex: CDs → iPod) First Movers: inventors of disruptive technologies, may lack the resources to exploit the tech...