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Chapter notes and Study guide for Exam CIS 210

by: KS Notetaker

Chapter notes and Study guide for Exam CIS 210 CIS210

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This is a condensed but very concise set of notes I took for each test. It contains all chapters covered on the test and is a combination of book and in-class powerpoint notes
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This 32 page Study Guide was uploaded by KS Notetaker on Monday February 2, 2015. The Study Guide belongs to CIS210 at University of Miami taught by in Fall2014. Since its upload, it has received 1618 views.

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Date Created: 02/02/15
Chapter 2 08312014 Palantir the system helps organizations collect and analyze vast amounts of data stored in different places and different organizations 0 Organizations are using Palantir to make sense of a rapidly changing environment Demonstrates that any information system can be strategic and can provide a competitive advantage if used properly 21 Business Processes an ongoing collection of related activities that create a product or a service of value to the organization 0 Inputs resources outputs Can include an internal or external customer 0 2 fundamentals efficiency amp effectiveness 0 Good business processes are vital to organizational success Information systems IS and business processes 0 IS facilitate communication and coordination among different functional areas and allow easy access to data 0 Plays vital role in executing the business process capturing and storing process data and monitoring process performance Executing the process 0 IS help execute processes by informing people when it is time to complete a task by providing the necessary data to complete the task and in some cases by providing the means to complete the task Capturing and storing process data 0 Capture data such a 5 dates time product info ect and store the data 0 Data captured by IS can provide immediate feedback unlike manual entries 0 Monitoring Process Performance 0 IS indicates how well a process is executing Evaluating information by calculating and analyzing info 0 Can detect problems with the process by comparing info with a standard expectation of what the company desires 22 Measures of excellence in executing business process competitive performance Customer satisfaction optimizing and aligning business processes to fu ll customers needs wants and desires Cost reduction optimizing operations Cycle and ful llment time reduction Quality optimizing the design development and production process Differentation optimizing marketing and innovation process Productivity optimizing each indv work processes Business process reengineering BPR a strategy for making an organizations business process more productive and pro table Business process Improvement BPI reducing the variation in the process outputs by searching for root causes of the variation in the process itself or among the inputs 5 phases de ne measure analysis improve control less risky and costly than BRP but not as effective to sustain BPl efforts over time business process management BPM is adopted a management system that include methods and tools to support the design analysis implementation and continuous optimization of core business process thru the org 23 Business Pressures 1 2 3 Business environment combination of social legal economic physical and political factors which business conduct their operations 0 Changes in these factors are likely to create business pressures on organizations Market Pressure generate by global economy intense competition and changing workforce Technology Pressures technological innovation and information ovedoad SocietalPoliticalLedal Pressures how social responsibility government regulation spending to protect against terrorism and social programs and ethics affect modern businesses Organizations are responding to the various pressures by implementing IT such as strategic systems customer focus maketoorder and mass customization and ebusiness Strategic systems provide organizations with advantages that enable them to increase their market share andor pro ts to better negotiate with suppliers and to prevent competitors from entering their markets Customer Focus organizational attempts to provide superb customer service can make the difference between attracting and retaining customers versus losing them to competitors Maketoorder a strategy of producing customized made to individual speci cations products and services 0 Mass customization simply an attempt to perform maketo order on a large scale Ebusiness conducting business electronically is an essential strategy for companies that are competing in today s business environment A v Newest HEBHE 22 Business 24 Strategic Information System an information system that helps an organization achieve and maintain a competitive advantage or reduces another company s competitive advantage Porter s 5 forces threats to losing the competitive advantage 0 Internal your rival competing organizations 0 External Supplier power threat of new entrants buyer power threat of substitute products and services 0 Examine the threats and what the company can do to put itself ahead of the thrats Strategies for Competitie Advangage i Cost leadership lowest cost in the market ii Differentiation new products other features need to continuously improve and innovate iii Innovation newunique ideas iv Operation effectiveness reducing costs by optimizing operations and being more efficient v Customer orientation sending emails thanking ppl customization based on individual needs Porter s value chain model 0 Value chain a sequence of activities thorough which the organizations inputs and transformed into valuble outputs 0 Primary activities relate to production amp distributions of products 0 Secondary activities support primary activities contributing to the competitive advantage A company can gain a competitive advantage by using business processes to 0 Internal developing superior business processes 0 External via the productsservices Case Big Data the ever growing amounts of data companies need to capture store and analyze Can help cut costs by analyzing data HR noticed many people were going to the ER instead of urgent care facilities which are cheaper HR reminded people of this and saved the company 45 million Analyzing how people answer survey questions ts them for a job Product development market research using websites Operations UPS trucks Tracks location speed helped reduce fuel consumption by 84 million gallons Managing Data 51 Difficulties O O O The amount of data increases exponentially with time Data is generated from multiple sources lnternal sources corporate databases company docs Personal sources personal thoughts opinions expedences External sources commercial databases gov reports coporate websites Data is often scattered throughout organizations and collected by different computing systems and formats Clickstream data data that visitors and customers produce when they visit a Web site and click on hyperlinks Clickstream data provide a trail of the users activities in the Web site including user behavior and browsing patterns Data degrades over time data rot Federal regulations SOX have made it a top priority for companies to better account for how they are managing information Companies are often drowning in data much of which is unstructured Inconsistent data ununi ed data btw departments 0 Data Governance an approach to managing information across an entire organization 0 lnvolves a formal set of business processes and policies that are designed to ensure that data is handeling in a certain welldesigned fashion OBJ to make info available transparent and useful for all people who are authorized to access it Master data management provides companies with the ability to store maintain exchange and synchronize a consistent accurate and timely quotsingle version of the truthquot for the company s master data Master data a set of core data such as customer product employee vendor that span the enterprise S lncludes transaction data from business activities 52 Big Data 0 Organizations must process a vast amount a data that is ever increasing This superabundance of data Big Data 0 Must use sophistacted techniques to organize and manage this data 0 Big data is about predictions applying math to huge amounts of data to infer probabilities Big data generally consists of 1 Traditional enterprise data payroll operations data 2 Machine generated sensor data sensors in smartphones cars equpitment logs 3 Social data customer feedback comments twitter facebook 4 Images captured by billions of devices around the world medical scanners cell phone cameras security cameras 0 Characteristics of big data 0 Volume the sheer amount makes it valuable So many uses 0 Velocity rate at which data ows into and org is increasing rapidly It increases the speed of the feedback loop btw a company and its customers 0 Variety unstructured data not well described change very quickly opposite of traditional data 0 Managing big data 0 Helps companies sort business trends more quickly and accurately Can reveal valuable patterns of info Companies are using NoSOL databases databases that can manipulate structured as well as unstructured data and inconsistent or missing data very useful for working with Big Data Gaining value from Big Data 1 Creating transparency making relevant data more readily accessible across otherwise separate departments can sharply reduce search and processing times 2 Enabling Experimentation allows organizations to discover needs and improve performance 3 Segmenting populations to customize actions tailor products and services to precisely meet customers needs Improve MKT 4 Replace human support with automated algorithms 5 Improve new business models products and services 6 Orgs can analyze far more data they do not have to rely on random sampling as much 53 the database approach Databases eliminates many problems with accessing and storing data bc all users access the same information o Databases minimize 1 Data redundancy the same data being stored in multiple locations prone to being inconsistent 2 Data isolation applications cannot access data associated with other applications 3 Data inconsistency various copies don t agree 4 Data security all data is put in 1 place and therefore have extremely high security measures to minimize mistakes and deter attacks 5 Data integrity data must meet certain entry requirements SSN mist have 9 characters 6 Data independence applications are not linked to one another so all applications are able to acces the same data 0 Data Hierarchy O O O 0 Bit smallest unit of data a computer can process 0 or 1 Byte a group of eight bits Represent a single character can be a letter number or symbol Field a logical grouping of characters into a word or ID Record a logical grouping of related elds student name courses taken grade Data le table logical grouping of related records a grouping of the records from a particular course consisting of course number professor and students grades Database logical grouping of related les the student course le could be grouped with les on students personal histories and nancial backgrounds to create a student database 0 Designing the Database 0 To be useful the database must be organizes so that users can retrieve analyze and understand the data they need Data model a diagram that represents entities in the database and their relationships Entity a person place thing or event customer product about which information is kept a Record entity Instance of an entity a speci c unique representation of the entity n Instance of STUDENT a certain student Attribute each characteristic or quality of a particular entity n Entities customer amp employee the entity attributes would include customer name amp an employee 0 Primary key every record in a le must have at least one eld that uniquely identi es that record so it can be retrieved Ex student ID SSN ISBN 0 Secondary key another eld that has some identifying info but does not identitfy the record with complete accuracy Ex the students major or birthdate 53 EntityRelationship Modeling Entityrelationship diagram what designers use to plan and create the database 0 Consisit of entities attributes and relationships Entities a person place or thing athat can be identi ed in the students work environment a Shown in boxes Relationships shown as diamonds show a link between two entities n Cardinality a maximum number of times an instance of one entity can be associated with an instance in the related entitiy Can be 1 or many a Modality minimum number of times an instance of one entity can be associated with an instances in the related entity 0 Can be a 1 or 0 0 Primary key underlined shidsint pain hairs A parking Ban unlljr 139 an rm Insins unlf l student an stuslaant ssn have many classes slass clan hams many shadElms Hay Aslass can harm uni 1 pmfssssr many classes 1 Fatahli mliijigpns J5 quotamiss can hitare I 1 Wald is ElFl diagram ETUEEIlEHT FAHMHG PERMIT gammanil iamriiasmm Hme lF nml E misser E 1 a 39 39 quot39 BLESS IF39HEllFEEEiH Eb Eln i Els15i39l39lzritintssi ill39ilEIIIEiiElll39ll all39 3 types of relationships 0 One to one a single entity instance of one type is related to a single entity instance of another type Ex student parking pass a student can have a parking permit but does not need to have one a Note that the relationship line on the PARKING PERMIT side shows zero or one that is a cardinality of 1 and a modality of 0 a On the STUDENT side of the relationship only one parking permit can be assigned to one student 0 One to many quotCLASS PROFESSORquot menas that a professor can teach one or more courses but each course can only have 1 professor 0 Many to manv represented by STUDENTCLASS a student can have one or more courses and a course can have one or more students The ER modeling is valuable because it allows database designers to communicated with users and ensure that all entities and relationships are accounted for 54 Database Management Systems DBMS a set of programs that provides users with tools to add delete access modify and analyze data stored in a signel location 0 An org can access the data by using query and reporting tools that are part of the DBSM 0 Provide security can recover information if the systems fail 0 Popular databases Microsoft access and Oracle Relational database model based on a number of related tables that contain records rows and attributes columns 0 The tables can be joined when they contain common columns 0 The primary key tells the DBMS which records and jined with others in realted tables Structured Query Language allows people to perform complicated searches by using relatively simple statements or key words Data Dictonary de nes the required format for entering the data into the database 0 The data dictionary provides information on each attribute such as its name whether it is a key or part of a key the type of data expected and valid values 0 The reduce the chances that the same attribute will be used in different applications but with a different name Nomalization a method for analyzing and reducing a relational database to its most streamlines form to ensure minimum redudency Maximum data integrity and optimal processing performance 0 When data normalized the attributes in the table depend only on the primary key 55 Data Warehouses and Data Marts Data warehouses and data marts are read only no extra processing time they can access large groups of related records to spot trends Data warehouse a repository of historical data that s organized by subject to support decision makers in the org expensive Data mart a lowcost scaled down version of a data warehouse that is designed for enduser needs in a strategic business unit or individualized department 0 Data in both are organized by business dimensions which are subjects such as products geographic area and time periods of the data collections The environment for data warehouses and marts includes the following 0 Source systems that provide data to the warehouse or mart Ex a companies operational database POS systems 0 Dataintegration technology and processes that prepare the data for use 0 Different architectures for storing data in an organization s data warehouse or data marts Different tools and applications for the variety of users Metadata data about data very important to maintain o Dataquality must meet users needs for it to be trusted and used 0 Governance processes that ensure that the warehouse or mart meets its purposes 00 56 Knowledge Management a process that helps organizations manipulate important knowledge that comprises parts of an orgs memory usually in an unstructured format For a company to be successful knowledge as a form of capital must exist in a format that can be exchanged among persons and it must be able to grow 0 Explicit knowledge more objective rational and technical knowledge such as polices procedures products amp stratigies o Tacit knowledge cumulative store of subjective or experiential learning In an organization tacit knowledge consists of an organization s experiences insights expertise knowhow trade secrets skill sets understanding and learning Knowledge Management Systems the use of modern information technologies to systematize enhance and expedite intra rm and inter rm knowledge 0 Bene ts KMS s make the quotbest practicesquot readily avaibae to a wide range of employees improved customer service and efficient product development 0 Goal of knowledge management help and org make the most producing use of the knowledge its accumulated KMS cycle 1 2 3 Create knowledge created as ppl determine new ways of doing things Capture knowledge new knowledge must be identi ed as valuable and be represented for Re ne knowledge new knowledge must be place into context so its actionable Store knowledge must be stored in reasonable formats so others can access it Manage knowledge must be kept current and reviewed regularly to verify its relevant and accurate Disseminate knowledge must be made available in a useful format to anyone in the org who needs it anywhere and anytime 31 Ethical Issues Ethical frameworks o Utilitarian approach the best ethical action is the one that provides the most good or does the least hard for all affected parties Rights approach the ethical action is the one that best protects and respects the moral rights of the affected parties Ex right to make one s own choices about what kind of life to live to be told the truth ect Fairness approach ethical actions treat all humans equally or if unequally then fairly based on some defensible standard 0 Common good approach respect and compassion for all others is the basis for ethical action Emphasizes common conditions that are important to the welfare of everyone Include a system of laws heathcare public education 0 A code of ethics a collection of principles intended to guide decision making by members of the organization 0 Accountabilitv determining who is responsible for actions that were taken 0 Responsibility accept the consequences of your decisions and actions 0 Liability gives individuals the right to recover the damages done to them by other individuals organizations or systems What is unethical is not necessarily illegal Variety of IT issues fall into 4 general categories 1 Privacy collecting storing sharing info about ppl 2 Accuracy authenticity delity and correctness of info that collected and processed 3 Property ownership and value of info 4 Accessibility who should have access to information and whether a fee should be paid for the access 32 Privacy 0 Information privacy the right to determine when and to what extent information about you can be gathered andor communicated to others 1 The right of privacy is not absolute Privacy must be balanced against the needs of society 2 The public s right to know supersedes the individuals right of pdvacy Digital dossier an electronic pro le of you and your habits thru banking transactions queries to search engines telephone calls and government records 0 Pro ling the process of forming a digital dossier Ch 6 telecommunications and Networking 61 0 Computer network a system that connects computers and other devices ex printers via communications media so that data and information can be transmitted among them 0 Bandwidth the transmission capacity of a network 0 Data and voice communications are continually becoming faster bc their bandwidth is increasing 0 Digital subscriber line DSL a broadband connection Local area networks local area network LAN connects two or more devices in a limited geographical region usually within the same building so that every device can communicate Use ethernet 0 File server contains various software and data for the network Wide area networks a network that covers a large geographical area WAN s usually connect multiple LANquots and are generally provided by telephone companies 0 Have large capacities and typically combine multiple channels WAN s also contain routers which is a communication processer that routes messages from a LAN to the internet or across connected LANs Enterprise network organizations that have multiple LANs and may have multiple WANs are interconnected Can also contain a backbone network high speed central network to which multiple smaller networks connect to Network fundamentals 0 Analog signal continuous waves that transmit info by altering the characteristics of the waves 0 2 parameters amplitude and frequency 0 Digital signals discrete pulses that are either on or off representing a series of bits 0 s and 1 s 0 A modem is used to conver digital signals to analog signals 0 Communication channel is a pathway comprised of two tpes of media cable twisted pair cable or ber optics and broadcast microwave satellite radio or infrared o Twistedpair wire most prevalent form of communications Usually inexpensive widely available and easy to work wit But its slow transmitting data subject to interference and can be easily tapped Eh i ri ll u t l i ld t l Twistedpair wire inflammable Elmii ow Emmi delly Hm ill hle Sumac l m intafwamtae to and with Easilir tapped ow securit whale Hhar bandv dth lethal and inflexible than I Wl l l i Easily tapped owMmede ammable to EEEuri E lmif f a i i t r l fm e Samba difficult in willl Fiberaopl i sable llilil l bandwidth Relatiwa Mmpmm i ulili Tll 39 tap food EEGMI iE Dif mu to work mth difficult in milling Network Protocols Nodes of the network computing devices that are connected to the network must access and share the network to transmit and receive data 0 Work together by adhering to a common set of rules and procedures know as PROTOCOLS o 2 major protocols Ethernet and TCPIP TCPIP the protocol of the internet 0 Manages the movement of packets btw the computers by establisihing a connection 0 Its sequesnces the transfer of packets 0 And acknolodges the packets have been transmitted The internet protocol IP is responsible for disassembling delivering and reassembling the data during transmission Packetswitching networks are reliable and fault tolerant For example if a path in the network is very busy or is broken packets can be dynamically quoton the yquot rerouted around that path 0 The packets use TCPIP to carry their data Types of Network Processing distributed processing divides the processing work amoung two or more computers ClientServer computing links two or more computers in an arrancement in which some machines called servers provide computing services for user PC s called clients Peertopeer P2P processing is a type of clientserver distributed processing where each computer acts as both a client and a server Each computer can access a les on all other computers Chapter 10 Information Systems Within the Organization Transaction processing system TPS monitors collects stores and processes data generated from all business transactions Captures data that other systems will use later Collects data in real time TPS s are critical to the success of any enterprise because they support core operations 0 Avoid errors and downtime Maintain privacy and security and records results accurately and securely The system processes data in one of two ways 1 Batch Processing when the rm collects data from transactions as they occur placing them in groups or batches then prepares and processes the batches periodically say every night 2 Online Transaction Processing OLTP when business transactions are processed online as soon as they occur 0 Source data automation involves collecting data from sensors eg barcode scanners and entering the data directly into a computer without human intervention Functional Area Information Systems designed to support a functional area by increasing its internal effectiveness and ef ciency Acc Fin Mkt 0 EX 0 Financial planning and budgeting 0 Managing nancial transactions Virtual close global stock exchanges managing multiple currencies Investment management Control and Auditing o Productionoperations management Inventory management quality control product life cycle management 0 HR Management recruitment HR planning payroll bene ts 0 F39clunt I Life EWI Q I quot39 EWTEEEll lulartagem paint nancial Planning TAETITIEHIL Maria E ash Earlier Payroll 31 Hamill Ful lmm EetFmmg r V 39 Payia e Wm Employee f Fm le IDHEHATIDHAL mmrnamma Tmsa m Pms im Swarmrs AWDUHMHE F39IHA39HEEE HILIMMI PH ILIETIEITFlf iHEEEILlIFiEEE PEH TllEIHE Figure I 12 Efrem FlIE E of l f l 39i39lElitlElll39l systems supporting the functional areas 0 Operational something that is needed for your day to day operations Supports daily activities 0 Tactical one year connotation what you re going to be using over the next year 0 Strategi applications you use to plan for far in the future Enterprise Resource Planning Systems ERP integrate the planning management and use of all resources of the organization 0 Integrate the functional areas of the organization by enabling seamless information ows across them automated 0 back of ce functions FIN ACC MKT traditional functions 0 ERP II front of ce functions includes supply chain management e business customer relationship mgt business intelligence sales mkt as well as ERP functions 0 Leading ERP software SAP 0 Bene ts of ERP systems 0 They make organizations more exible agile and adaptive 0 They improve managers ability to make better more timely decisions 0 They improve customer service production and distribution 0 Limitations of ERP systems 0 Companies may need to change existing business processes to t the prede ned business processes of the ERP software 0 Can be complex expensive and time consuming to implement If not implemented correctly it can cause huge consequences 0 Causes of ERP Implementation Failure 0 Failure to involve affected employees in the planning and development phases and in change management processes 0 Trying to do too much too fast in the conversion process 0 Insuf cient training in the new work tasks required by the ERP system 0 The failure to perform proper data conversion and testing for the new system Implementing ERP Systems OnPremise ERP Implementation 0 The vanilla approach just taking the system as it is Makes implementation quicker o The custom approach you customize and change the software in a major way Speci c to the organization Customization is expensive and risky bc the computer code must be written and updated every time a new version of the ERP software is released 0 The best of breed approach mix and match different modules from different companies integration Cloudbased ERP System Bene ts 0 The system can be used from any location that has internet access 0 Avoid the initial hardware and software expenses that are typical of an onpremise implementation 0 Scalable and can extend ERP support to new business processes and partners Bc you quotrentquot the space that the ERP software is installed in Disadvantages of using a cloudbased ERP system 0 Not clear if more secure than onpremise systems 0 Sacri ce their control 0 No people on site to help x problems with the ERP systems 0 Enterprise Application Integration EAI middleware like software that s an addition to functional area applications Allows you to create your own ERP system SoftwareasaService ERP AKA cloudbased ERP systems Business Process is a set of related steps or procedures designed to produce a speci c outcome 0 The Procurement Process 0 Originates when the company needs to buy goods from an external sources and it ends when the company receives and pays for them 0 Warehouse to accounting 0 The Ful llment Process 0 The company sells goods to a customer Starts when the company receives a customer order and concludes when it receives a payment from the customer 0 Sales to accounting 0 The Production Process 0 Only occurs in companies that produce physical goods Maketostock or maketoorder Originates and ends in warehouse but involves the production dept Reports Routine Reports reports produced at scheduled intervals Adhoc Reports on demand Drilldown reports display greater level of detail have a stronger focus Keyindicator reports summarize the performance of critical activities Comparative reports compare different business units or a single unit using different times Exception Reports include only information that falls outside certain threshold standards alert reportquot Customer Relationship Management a customer focused and customer driven organizational strategy Organizations concentrate on assessing customer s requirements for products and then providing a high quality responsive service 0 Its approach is designed to achieve customer intimacy Helps build sustainable longterm customer relationships that create value for the company acquire new and retain old customers 0 The organizations goal is to maximize the lifetime value of a customer which is that customers potential revenue stream over a number of years 0 Simple Idea Treat different customers differently because their needs differ and their value to the company also may differ CRM systems are information systems designed to support an organization s CRM strategy 0 Lifetime value depends on three things 0 Duration number and pro tability of relationships Tenets of CRM 0 Onetoone relationship btw a customer and a seller 0 Treats different customers differently o Keeps pro table customers and maximize lifetime revenue from them 0 Customer touch points the numerous and diverse interactions organizations have with their customers IEIL39Iquot V t l lcitsiy Mam Ehm39llrerslgelt Physical stare Media Bakery Service ca n ler a H 1 Sales quot Customer I representative Ernaill El item mail 39 Data consolidation a complete data set and 360 degree view of a customer The organization can asses the view and enhance its relationship with the customer Operational CRM systems support frontof ce business processes which directly interact with customers sales marketing and service Two major components 0 Customer facing applications an organization s sales eld service and customer interaction center representatives interact directly with customers 0 Customer service amp support systems that automate service requests complaints product returns and requests for information call center help desk 0 Sales force automation the component of an operational CRM system that automatically records all of the components in a sales transaction process 0 Campaign management applications help organizations plan campaigns that send the right messages to the right people through the right channels 0 Marketing 0 Customer touching applications customers interact directly with online technologies and applications rather than interact with a company representative 0 Search and comparison capabilities 0 Technical and other information services 0 Customized products and services 0 Loyalty programs Analytical CRM systems provide actionable business intelligence by analyzing customer behavior and perceptions For example analytical CRM systems typically provide information concerning customer requests and transactions and customer responses to the organization s marketing sales and service initiatives 0 Help create statistical models of customer behavior and the value of customer relationships over time o Ondemand CRM systems hosted by an external vendor in the vendor s data center 0 Mobile CRM system an interactive system that enables an organization to conduct communications related to sales marketing and customer service activities through a mobile device 0 Opensource CRM same features as other CRM software and they may be used wither on premise or ondemand Tier 3 Tier 2 Tier 1i Suppliers Suppliers Suppliers I lNiTEFlNiAiL sage digt Mlanurfacmrar D39smpumr or Retailer Customer V Wholesaler Orders information Payments Returns 39ll39 M H 4 77g 7 i Products Infill Supply Chains the ow of material information money and services from raw material suppliers through factories and warehouses to the end customer Improve collaboration and trust among the supply chain partners improving supply chain visibility In order to optimize revenues and costs to the chain the ow of information must be managed o Upstream sourcing or procurement from external suppliers occurs 0 Internal where packaging assembly or manufacturing takes place 0 Downstream where distribution takes place frequents by external distributors Flows in the supply chain Material ows the physical products raw materials supplies and so forth that ow along the chain Information ows consist of data related to demand shipments orders returns and schedules as well as changes in any of these data MOST IMPORTANT o If you manage this correctly the other two fall in place Financial ows involve money transfers payments credit card information and authorization payment schedules epayments and creditrelated data Supply chain management SCM its goal is to improve the way a company nds the raw materials it needs to produce a product or service and deliver it to its customers Optimize the supply chains activities Interorganizational information systems IOS information ows among two or more organizations 0 Involves trust and creates business partners Also reduces the costs of routine business transactions Push Model MakeToStock production process begins with a forecast which is an educated guess of demand and the company products the amount of products in the forecast and pushes those products to the consumers Push Model MaketoOrder production starts with a customer order The company makes only what the customers want Problems along the supply chain 0 Poor customer service due to a lack of information 0 Poor quality products 0 High inventory costs 0 Loss of revenues Solutions to supply chain problems 0 Using Inventories to Solve Supply Chain Problems 0 The most common solution to supply chain problems is building inventories as insurance against supply chain uncertainties o Justintime inventory systems deliver the precise number of parts in workinprocess inventory to be assembled into a nished product at precisely the right time 0 Information Sharing to solve problems 0 Vendormanaged inventory VMI when the supplier rather than the retailer manages the entire inventory process for a particular product or group of products Information Technology Support of Supply Chain Management 0 Electronic Data Interchange EDI a communication standard that enables business partners to exchange routine documents electronically 0 Bene ts Minimizes data errors each entry is checked by the computer EDI reduces cycle time increases productivity enhances customer service 0 Limitations Signi cant initial investment to implement Ongoing operating costs are high due to the use of expensive private VANs In exible Long startup period Extranet links business partners over the internet by providing them access to certain areas of each other s corporate intranets 0 MAIN GOAL To foster collaboration btw business partners 0 Use VPN virtual private networks to make communication over the internet more secure Industry wide extranet the major players in an industry can team up to create an extranet that will bene t all of them Joint ventures the partners use the extranet as a tool for communication and collaboration Business Intelligence applications and technologies for consolidating analyzing and providing access to vast amts of data to help users better make decisions BI includes applications but also technologies and processes 0 Getting data in to a warehouse and out thru BI apps Vital to modern decision making and organizational performance BI applications are increasingly available to frontline personnel eg call center operators suppliers customers Different companies use BI in different ways 0 The development of one or a few related BI applications 0 The development of infrastructure to support enterprise wide Bi 0 Support for organizational transformation new business model wide spread bene ts BI uses mutidimensiona analysis Multidimensional Analysis AKA Online Analytical Processing OLAP OLAP involves slicing and dicing data stored in a dimensional format concentrating its detail and aggregating the data data cube 0 Provides users with a look at what is happening or what has happened 0 Allows users to analyze data so business questions can be quickly answered Data Mining the process of searching for valuable business information in a large database warehouse or data mart 1 Predicts trends and behaviors 2 Identi es previously unknown patterns Decision Support Systems DDSs computer based info systems that combine models and data in an attempt to analyze semi structured problems and some unstructured problems that involve extensive user involvement DDSs enable business managers and analysts to access data interactively to manipulate these data and to conduct appropriate analyses 0 Sensitivity Analysis the study of the impact that changes in one or more parts of a decisionmaking model have on other parts Whatif Analysis attempts to predict the impact of a change in the assumptions on the solution 0 Putting in new data and seeing the effects of the changed data GoalSeeking Analysis a backward solution approach It attempts to calculated the value of the inputs necessary to achieve a desired level of output 0 Starting with desired end results and using formulas to come up with inputs Digital Dashboards provides easy access to timely information and direct access to management reports User friendly supported by graphics provides easy analysis of detailed data 0 Turns raw data into sophisticated illustrated images 0 Charts and graphs provide instant feedback 0 Ex Bloomberg terminal a nancial for of a digital dashboard Management Cockpit a strategic management room containing an elaborate set of dashboards that enable toplevel decision makers to pilot their business better 0 Goal to encourage more ef cient management meetings that boosts communication and team performance Advantages 0 Provide rapid access to timely information 0 Provide direct access to management reports 0 Very user friendly and supported by graphics 0 As you plan for your business you must plan your IT needs 0 Organizations must analyze the need for the IT applications 0 A costbene t justi cation is considered for each app 0 Application portfolio a prioritized list of existing and potential IT applications which will support business functions Organizational strategic plan IT Architecture IT strategic plan 0 Organizational strategic plan the firm s overall mission the goals that follow from that mission and the broad steps required to reach these goals 0 IT architecture outlines the way an organization should utilizes its information resources to accomplish its mission 0 IT strategic plan the set of longrange goals that identify the major IT initiatives needed to achieve the organizations goals One critical component in developing and implementing the IT strategic plan is the IT steering committee IT steering committee a group of managers and staff who represent the various organizational units and is created to establish IT priorities n Provides guidance advice and support to IT a Helps prioritize projects based on company needs 0 IS operational plan consists of a clear set of projects that the IT department and functional area managers will execute in support of the IT strategic plan Has a speci c mission objective constraints and resource allocation and project management Evaluating Justifying IT Investments costbene t analysis 0 Assessing the costs must allocate xed costs among different IT Projects 0 Fixed costs remain the same regardless of activity level 0 Want to nd Total Cost of Ownership training maintenance updates 0 Assessing the bene ts values 0 Intangible bene ts dif cult to place and accurate monetary value on but can be very valuable customer satisfaction employee moral Conducting the costbene t analysis must compare the costsbene ts o m converts future values of bene ts to their present value equivalent by discounting them at the organizations rate 0 ROI measures management s effectiveness in generating pro ts with its available assets What return am I getting from the investment 0 Breakeven Analysis determines the point when total dollar value bene ts from a project equal the investment made in the project Want a SHORT breakeven point for technology projects 0 Business case approach system developers write a business case to justify funding one or more speci c applications or projects Describe how the new system will bene t you Strategies for acquiring IT applications 0 Purchase a prewritten application Customize a prewritten application Lease the application 0 Use application service providers and softwareasaservice vendors a method of delivering software in which a vendor hosts the applications and provides them as a service to customers over a network typically the internet 0 Use opensource software Use outsourcing acquiring IT applications from external contractors or organizations 0 Custom development 0 Application service provider ASP a vendor who assembles the software needed by enterprises and then packages it with services such as development operations and maintenance 0 The customer then accesses these applications via the internet Softwareasaservice SaaS is a method of delivering software in which a vendor hosts the applications and provides them as a service to customers over a network 0 Customers do not own the software they just pay to use it o Eliminates the need for customers to install and run the application on their own computers less expensive The Traditional Systems Development Life Cycle the traditional systems development method that organizations use for largescale IT projects 1 Feasibility study is the main task of the Systems Investigation phase 0 Helps the organization choose btw 3 options Do nothing and continue to use the system unchanged Modify or enhance the existing system Develop a new system 0 Technical Feasibility assessment of whether hardware software and communication components can be developed and or acquired to solve a problem 0 Economic Feasibility assessment of whether a project is an acceptable nancial risk and if the organization can afford it 0 Organizational Feasibility the orgs ability to access the proposed project 0 Behavioral Feasibility assessment of the human issues involved in a proposed project including resistance to change skills and training needs 2 System Analysis the examination of the business problem that the organization plans to solve with an information system 0 Main purpose gather info about existing system to determine requirements for new or improved system 0 Want to determine a set of user requirements 3 System Design describes how the system will accomplish this task 0 Want to determine hardware software databases communication personnel and procedures and a blue print of how these components will work 4 Programming involves the translation of a system s design into computer code 0 Testing checks to see if the computer code will produce desired results under certain conditions Designed to delete errors bugs in the computer code 5 Systems Implementation involves three major conversion strategies 0 Direct 0 m introduces the new system in one part of the organization such as in one plant or one functional area If the system is liked its implemented in other parts of the org 0 Phased introduces components of the new system such as individual modules in stages Each module is assessed If it works properly then other modules are introduced until the entire new system is operational 0 Parallel 6 Operation amp Maintenance audits are preformed to assess the system s capabilities and to determine if its being used correctly 0 Debugging updating maintenance SDCL advantages 0 Control 0 Accountability able to assign responsibilities 0 Error detection for better products Drawbacks o Ridged there is no variability o Expensive time consuming o Discourages changes to user requirements Vendor and software selection 1 Identify potential vendors who t your needs 2 Determine the evaluation criteria based on your needs i Requests for proposals asks companies to respond to your requirement needs based on what they offer Evaluate vendors and packages they offer Choose the vendor and package Negotiate a contract Establish a service level agreement so you can measure the functionality of the system 9915 Service Level Agreement SLA a contract between a network service provider and a customer that speci es what services the network service provider will provide


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