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MSU - ITM 209 - Study Guide - Midterm

Created by: Samantha Shea Elite Notetaker

> > > > MSU - ITM 209 - Study Guide - Midterm

MSU - ITM 209 - Study Guide - Midterm

School: Michigan State University
Department: OTHER
Course: Bus Analytics & Info Systems
Professor: Frederick Rodammer
Term: Fall 2017
Tags: ITM, 209, exam, study, and guide
Name: ITM 209 Exam 1 Study Guide
Description: This is a detailed study guide, covering chapters one through three, for the exam on Wednesday, October 4th.
Uploaded: 09/28/2017
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background image Highlighted  topics  are  topics  from  review  outline  provided  on  D2L Chapter  1:  Information  Systems  in  Business • Business  strategy:  leadership  plan  that  achieves  a  specific  set  of  goals  or  objectives   such  as ○ Developing  new  products  or  services
○ Entering  new  market
○ Increasing  customer  loyalty
○ Attracting  new  customers
○ Increasing  sales
Internet  of  things  Case  and  Class  Discussion • Internet  of  things  (IoT):  world  where  interconnected,  Internet-­‐enabled  devices  can   collect  and  share  data  without  human  intervention ○ Cars,  phones,  thermostats • It's  important  for  business  leaders  to  understand  that  data  collection  rates  from  IoT   devices  is  increasing  exponentially  because  it's  here  to  stay  and  they  need  to  know   how  to  utilize  it  due  to  the  rapid  growth. • There  are  security  issues  associated  with  IoT  devices  because  data  is  flowing  to  and   from  unsecure  areas. Business  Competitive  Advantages  Using  IT  Enablers • A  competitive  advantage  is  a  feature  of  a  product  or  service  on  which  customers  place   a  greater  value  than  they  do  on  similar  offerings  from  competitors   ○ Provide  the  same  product  or  service  either  at  a  lower  price  or  with  additional   value  that  can  fetch  premium  prices ○ Often  temporary  because  competitors  catch  on • First-­‐mover  advantage:  when  a  company  can  increase  its  market  share  by  being  the   first  with  a  new  competitive  advantage • Competitive  intelligence:  process  of  gathering  information  about  the  competitive   environment,  including  competitors'  plans,  activities,  and  products,  to  improve  a   company's  ability  to  succeed   • 4  tools  to  analyze  competitive  intelligence  and  develop  competitive  advantages 1. SWOT  analysis:  evaluates  an  organization's  strengths,  weaknesses,  opportunities,  and   threats  to  identify  significant  influences  that  work  for  or  against  business  strategies 2. Porter's  Five  Forces  Model:   analyze  the  competitive  forces  within  the  environment  in   which  a  company  operates  to  assess  the  potential  for  profitability  in  an  industry ○ Buying  power:  ability  of  buyers  to  affect  the  price  they  must  pay  for  an  item If  it's  high,  customers  can  force  a  company  and  its  competitors  to   compete  on  price,  typically  driving  prices  down Switching  costs  and  loyalty  programs ○ Supplier  power:  the  suppliers'  ability  to  influence  the  prices  they  charge  for   supplies If  it's  high,  the  supplier  can  influence  the  industry  by  charging  higher   prices,  limiting  quality  or  services,  or  shifting  costs  to  industry  participants ○ Threat  of  Substitute  Products  or  Services:  is  high  when  there  are  many   alternatives  to  a  product  or  service  and  low  when  there  are  few  alternatives Travelers:  many  choices  of  airlines A  company  can  reduce  the  threat  of  substitutes  by  offering  additional   value  through  wider  product  distribution § Pop  in  vending  machines ○ Threat  of  New  Entrants:  is  high  when  it  is  easy  for  new  competitors  to  enter  a   market  and  low  when  there  are  significant  entry  barriers  to  joining  a  market Entry  barrier:  feature  of  a  product  or  service  that  customers  have  come  to   expect,  and  entering  competitors  must  offer  the  same  for  survival ○ Rivalry  among  Existing  Competitors  :  is  high  when  competition  is  fierce  and  low   when  competitors  are  more  complacent Grocery  industry:  high Product  differentiation  can  reduce  rivalry 3. Porter's  Three  Generic  Strategies  Model: generic  business  strategies  that  are  neither   organization  nor  industry  specific  and  can  be  applied  to  any  business,  product,  or   service ○ Adopt  one  of  these  strategies Broad  cost  leadership Broad  differentiation Focused  strategy ○ Broad  market  and  low  cost:  Walmart
○ Broad  market  and  high  cost:  Neiman  Marcus
○ Narrow  market  and  low  cost:  Payless
○ Narrow  market  and  high  cost:  Tiffany  &  Co.
4. Value  Chain  and  Value  Chain  Analysis:  views  a  firm  as  a  series  of  business  processes,   each  which  adds  value  to  the  product  or  service ○ Primary  value  activities Inbound  logistics:  acquires  raw  materials  and  resources  and  distributes  to   manufacturing  as  required Operations:  transforms  raw  materials  or  inputs  into  goods  and  services Outbound  logistics:  distributes  goods  and  services  to  customers Marketing  and  sales::  promotes,  prices,  and  sells  products  to  customers Service:  provides  customer  support  after  the  sale  of  goods  and  services ○ Support  value  activities Firm  infrastructure:  the  company  format  or  development  sructures,   environment,  and  systems Human  resource  management:  provides  employee  training,  hiring,  and   compensation Technology  development:  applies  MIS  to  processes  to  add  value Procurement:  purchases  inputs  such  as  raw  materials,  resources,   equipment,  and  supplies Chapter  2:  Decisions  and  Processes • What  is  a  process? A  group  of  business  activities  undertaken  by  an  organization  in  pursuit  of  a   common  goal Typical  business  processes  include  receiving  orders,  selling  products,  delivering   services,  distributing  products,  or  invoicing  for  services  received A  business  process  usually  depends  upon  several  business  functions  for  support A  business  process  rarely  operates  in  isolation Processes  are  interdependent § • Customer  facing  process:  results  in  a  product  or  service  that  is  received  by  an   organization's  external  customer • Business  facing  process:  invisible  to  the  external  customer  but  essential  to  the   effective  management  of  the  business • Business  process  characteristics: Processes  have  internal  and  external  users Cross-­‐departmental Occur  across  organizations Based  on  how  work  is  done  in  the  organization Every  process  should  be  documented  and  fully  understood  by  everyone   participating  in  the  process Processes  should  be  modeled  to  promote  complete  understanding • Business  process:  standardized  set  of  activities  that  accomplish  a  specific  task,  such  as   processing  a  customer's  order Transform  a  set  of  inputs  into  a  set  of  outputs  (goods  or  services)  for  another   person  or  process  by  using  people  and  tools Operational,  Managerial  and  Strategic  Support  Systems • Different  levels  of  a  typical  organization  structure 1. Operational  level:  employees  develop,  control,  and  maintain  core  business  activities   required  to  run  day-­‐to-­‐day  operations ○ Operational  decisions  are  considered  structural  decisions  and  arise  when   established  processes  offer  potential  solutions 2. Managerial  level:  employees  are  continuously  evaluating  company  operations  to  hone   the  firm's  abilities  to  identify,  adapt  to,  and  leverage  change ○ Semi-­‐structured  decisions 3. Strategic  Level:  managers  develop  overall  business  strategies,  goals,  and  objectives  as   part  of  the  company's  strategic  plan 1. Unstructured  decisions What  is  Systems  Thinking? Focuses  on  how  the  things  being  studied  interacts  with  the  other  constituents   of  the  system-­‐ a  set  of  elements  that  interact  to  produce  behavior-­‐ of  which  it  is   a  part Why  is  Systems  Thinking  Important  to  a  Business? Works  by  expanding  its  view  to  take  into  account  larger  and  larger  number  of   interactions  as  an  issue  is  being  studied  or  a  problem  is  being  solved Systems  thinking-­‐    a  way  of  monitoring  the  entire  system  by  viewing  multiple  inputs   being  processed  or  transformed  to  produce  outputs  while  continuously  gathering   feedback  on  each  part Inputs Processes Outputs Feedback Control(s) Transaction  Processing  Systems: (TPS),  basic  business  system  that  serves  the   operational  level  and  assists  in  making  structured  decisions • Common  example:  operational  accounting  system  (payroll  system  or  order-­‐ entry  system) • Operational  support  system Decision  Support  Systems: model  information  using  OLAP,  which  provides  assistance   in  evaluating  and  choosing  among  different  courses  of  action • OLAP:  online  analytical  processing,  manipulation  of  information  to  create   business  intelligence  in  support  of  strategic  decisions  making • Managerial  support  system Executive  Information  Systems:  is  a  specialized  DSS  that  supports  senior-­‐level   executives  and  unstructured,  long-­‐term,  non-­‐routine  decisions  requiring  judgment,   evaluation,  and  insight • Strategic  support  system   Artificial  Intelligence:  (AI),  simulates  human  thinking  and  behavior,  such  as  the  ability   to  reason  and  learn • 5  categories  of  AI  systems 1. Expert  systems § Computerized  advisory  programs  that  imitate  the  reasoning  processes  of   experts  in  solving  difficult  problems § Most  common  form,  they  fill  in  the  gap  when  human  experts  are  difficult   to  find § Play  chess  and  assist  in  medical  diagnosis   2. Neural  networks § (Artificial  neural  network),  attempts  to  emulate  the  way  the  human  brain   works § Finance  industry  use  it  to  review  loan  applications  and  create  patterns  or   profiles  of  applications   § Fuzzy  logic 3. Genetic  algorithms § Mimics  the  evolutionary,  survival-­‐of-­‐the-­‐fittest  process  to  generate   increasingly  better  solutions  to  a  problem   § Mutation § Best  suited  to  decision  making  environments  in  which  thousands  of   solutions  are  possible § Business  executives,  investment  companies,  and  telecommunication   companies 4. Intelligent  agents § Special-­‐purpose,  knowledge-­‐based  information  system  that  accomplishes   specific  tasks  on  behalf  of  its  users § Usually  have  a  graphical  representation   § Shopping  bot:  software  that  will  search  several  retail  websites  and   provide  a  comparison  of  each  retailer's  offerings 5. Virtual  reality § Computer-­‐simulated  environment  that  can  be  a  simulation  of  the  real   world  or  an  imaginary  world § Virtual  surgery Business  Process  Definitions • Business  process  patent:  patent  that  protects  a  specific  set  of  procedures  for   conducting  particular  business  activity • Core  processes:  business  processes  such  as,  manufacturing  goods,  selling  products,   and  providing  service,  that  make  up  the  primary  activities  in  a  value  chain • Static  process:  uses  a  systematic  approach  in  an  attempt  to  improve  business   effectiveness  and  efficiency  continuously   • Dynamic  process:  continuously  changing  and  provides  business  solutions  to  ever-­‐ changing  business  operations • Business  process  modeling:  activity  of  creating  a  detailed  flowchart  or  process  map  of   a  work  process  that  shows  its  inputs,  tasks,  and  activities  in  a  structured  sequence • Business  process  model:  graphic  description  of  a  process,  showing  the  sequence  of   process  tasks,  which  is  developed  for  a  specific  purpose  and  from  a  selected  viewpoint • Business  Process  Model  and  Notation  (BPMN):  graphical  notation  that  depicts  the   steps  in  a  business  process • As-­‐is  process  models:  represent  the  current  state  of  the  operation  that  has  been   mapped,  without  any  specific  improvements  or  changes  to  existing  processes • To-­‐Be  process  model:  show  the  results  of  applying  change  improvement  opportunities   to  the  current  (As-­‐is)  process  model   • Operational  business  processes:  static,  routine,  daily  business  processes  such  as   stocking,  inventory,  checking  out  customers,  or  daily  opening  and  closing  processes • Managerial  business  processes:  semi-­‐dynamic,  semi-­‐routine,  monthly  business   processes  such  as  resource  allocation,,  sales  strategy,  or  manufacturing  process   improvements • Streamlining:  improves  business  process  efficiencies  by  simplifying  or  eliminating   unnecessary  steps • Strategic  business  process:  dynamic,  non-­‐routine,  long-­‐term  business  processes  such   as  financial  planning,  expansion  strategies,  and  stakeholder  interactions • Business  process  reengineering  (BPR):  the  analysis  and  redesign  of  workflow  within   and  between  enterprises ○ Fundamental  rethinking  and  radical  redesign  of  business  processes  to  achieve   dramatic  improvements  in  cost,  quality,  speed,  and  service ○ Purpose  of  BPR  is  to  make  all  business  processes  best-­‐in-­‐class Business  Process  Improvement • Attempts  to  understand  and  measure  the  current  process  and  make  performance   improvements • Continuous  process  improvement  model:  attempts  to  understand  and  measure  the   current  process,  and  make  performance  improvements  accordingly
Process  improvement  is  used  to  eliminate  unnecessary  work  and  improve  productivity
Process  improvement  involves  identifying,  analyzing,  and  improving  the  process Process  improvement  involves  taking  action  to  ensure  process  is  controlled  vs.  re-­‐ building  the  structural  costs  we  eliminated Improvement  in  processes  is  critical  to  seizing  and  maintaining  a  competitive   advantage Business  Process  Management • Focuses  on  evaluating  and  improving  processes  that  include  both  person-­‐to-­‐person   workflow  and  system-­‐to-­‐system  communications • Drivers: Modeling  for  understanding  and  documentation Modeling  for  redesign Modeling  for  execution  and  compliance • What  is  Systems  Thinking? ○ Focuses  on  how  the  things  being  studied  interacts  with  the  other  constituents   of  the  system-­‐ a  set  of  elements  that  interact  to  produce  behavior-­‐ of  which  it  is   a  part Systems  Thinking  and  Systems  Components • Why  is  Systems  Thinking  Important  to  a  Business? Works  by  expanding  its  view  to  take  into  account  larger  and  larger  number  of   interactions  as  an  issue  is  being  studied  or  a  problem  is  being  solved • Systems  thinking-­‐    a  way  of  monitoring  the  entire  system  by  viewing  multiple  inputs   being  processed  or  transformed  to  produce  outputs  while  continuously  gathering   feedback  on  each  part Inputs Processes Outputs Feedback Control(s) HBR:  Staple  Yourself  to  an  Order • Every  customer's  experience  is  determined  by  a  company's  order  management  cycle   (OMC)   When  managers  track  each  step  of  the  OMC,  they  work  their  way  through  the   company  from  the  customers'  angle  rather  than  from  their  own Discover  how  various  changes  affect  customers • The  typical  OMC  includes  ten  activities  that  can  overlap  or  interact Step  1:  order  planning Step  2:  order  generation:  usually  produces  a  gap  between  order  generation  itself,   order  planning,  and  later  steps Step  3:  cost  estimations  and  pricing Step  4:  order  receipt  and  entry Step  5:  order  selection  and  prioritization:  process  of  choosing  which  orders  to  accept   and  which  to  decline Step  6:  scheduling:  when  the  order  gets  slotted  into  an  actual  production  or   operational  sequence Step  7:  fulfillment:  actual  provision  of  the  product  or  service Step  8:  billing:  getting  the  bill  out  efficiently  and  making  the  collection  quickly ○ Serves  the  needs    of  the  company,  not  the  customer Step  9:  returns  and  claims:  flow  upstream  and  can  create  logistical  messes Step  10:  postsales  services • Problems  found: Most  companies  never  view  the  OMC  as  a  whole  system Each  step  requires  a  mix  of  overlapping  functional  responsibilities To  top  management,  the  details  of  the  OMC  are  invisible The  customer  remains  as  remote  form  the  OMC  as  top  management • It  takes  hard  work  for  a  company  to  improve  its  order  management Successful  efforts  involve  analysis,  system  focus,  and  political  strategy Analysis:  draw  your  OMC,  and  chart  the  gaps System  focus:    put  the  pieces  together,  move  across  boundaries Political  strategy:  staple  yourself  to  an  order,  tie  the  company  closer  together • Benefits  of  fixing  my  OMC Experience  improved  customer  satisfaction Interdepartmental  problems  will  recede Companies  will  improve  their  financial  performance Chapter  3:  eBusiness Pinterest  Case  and  Class  Discussion • Do  you  consider  Pinterest  a  form  of  disruptive  or  sustaining  technology? Sustaining Disruptive  vs.  Sustaining  Technologies • Disruptive  technology:  a  new  way  of  doing  things  that  initially  does  not  meet  the   needs  of  existing  customers • Sustaining  technology:  produces  an  improved  product  customers  are  eager  to  buy Internet  and  the  World  Wide  Web • The  internet  and  the  world  wide  web  caused  business  disruption ○ Allowed  people  to  communicate  and  collaborate  in  ways  that  were  not  possible   before  the  information  age ○ Disrupted  the  way  businesses  operate,  employees  communicate,  and  products   are  developed  and  sold. eBusiness  Models • Business-­‐to-­‐business(B2B):  businesses  buying  from  and  selling  to  each  other  over  the   internet • Business-­‐to-­‐consumer(B2C):  any  business  that  sells  its  products  or  services  to   consumers  over  the  Internet • Consumer-­‐to-­‐business(C2B):  any  consumer  who  sells  a  product  or  service  to  a   business  over  the  internet • Consumer-­‐to-­‐consumer(C2C):  sites  primarily  offering  goods  and  services  to  assist   consumers  interacting  with  each  other  over  the  Internet B2C  eBusiness  Types • Eshop:  sometimes  called  and  estore  or  etailer,  online  version  of  a  retail  store  where   customers  can  shop  at  any  hour 1. Brick-­‐and-­‐mortar:  business  that  operates  in  a  physical  store  without  an  Internet   presence 2. Click-­‐and-­‐Mortar:  business  that  operates  in  a  physical  store  and  on  the  Internet 3. Pure-­‐Play:  business  that  operates  on  the  Internet  only  without  a  physical  store eBusiness  Measurements • Tools  for  connecting  and  communicating:  email,  instant  messaging,  podcasting,   content  management  systems,  videoconferencing,  and  web  conferencing eBusiness  Advantages  and  Challenges • Advantages:  expanding  global  reach,  opening  new  markets,  reducing  costs,  and   improving  operations  and  effectiveness • Challenges:  identifying  limited  market  segments,  managing  consumer  trust,  ensuring   consumer  protection,  adhering  to  taxation  rules Web  1.0,  Web  2.0  and  Web  3.0 • Web  1.0:  refers  to  the  World  Wide  Web  during  its  first  few  years  of  operation • Web  2.0:  the  next  generation  of  internet  use ○ More  mature,  distinctive  communications  platform  characterized  by  new   qualities  such  as  collaboration,  sharing,  and  being  free ○ Technical  skills  no  longer  required  to  use  and  publish  information
○ Four  characteristics
§ Content  sharing  through  open  sourcing § User-­‐contributed  content § Collaboration  inside  the  organization § Collaboration  outside  the  organization ○ Blogs,  wikis,  and  mashups • Web  3.0:  based  on  intelligent  web  applications  using  natural  language  processing,   machine-­‐based  learning  and  reasoning,  and  intelligent  applications ○ Next  step  in  the  evolution  of  the  Internet  and  web  applications
○ Offers  a  way  for  people  to  describe  information  in  ways  that  enable  computers  
to  understand  the  relationships  among  concepts  and  topics Exam  1  Study  Guide Friday,  September   29,  2017 3:10  PM
background image Highlighted  topics  are  topics  from  review  outline  provided  on  D2L Chapter  1:  Information  Systems  in  Business • Business  strategy:  leadership  plan  that  achieves  a  specific  set  of  goals  or  objectives   such  as ○ Developing  new  products  or  services
○ Entering  new  market
○ Increasing  customer  loyalty
○ Attracting  new  customers
○ Increasing  sales
Internet  of  things  Case  and  Class  Discussion • Internet  of  things  (IoT):  world  where  interconnected,  Internet-­‐enabled  devices  can   collect  and  share  data  without  human  intervention ○ Cars,  phones,  thermostats • It's  important  for  business  leaders  to  understand  that  data  collection  rates  from  IoT   devices  is  increasing  exponentially  because  it's  here  to  stay  and  they  need  to  know   how  to  utilize  it  due  to  the  rapid  growth. • There  are  security  issues  associated  with  IoT  devices  because  data  is  flowing  to  and   from  unsecure  areas. Business  Competitive  Advantages  Using  IT  Enablers • A  competitive  advantage  is  a  feature  of  a  product  or  service  on  which  customers  place   a  greater  value  than  they  do  on  similar  offerings  from  competitors   ○ Provide  the  same  product  or  service  either  at  a  lower  price  or  with  additional   value  that  can  fetch  premium  prices ○ Often  temporary  because  competitors  catch  on • First-­‐mover  advantage:  when  a  company  can  increase  its  market  share  by  being  the   first  with  a  new  competitive  advantage • Competitive  intelligence:  process  of  gathering  information  about  the  competitive   environment,  including  competitors'  plans,  activities,  and  products,  to  improve  a   company's  ability  to  succeed   • 4  tools  to  analyze  competitive  intelligence  and  develop  competitive  advantages 1. SWOT  analysis:  evaluates  an  organization's  strengths,  weaknesses,  opportunities,  and   threats  to  identify  significant  influences  that  work  for  or  against  business  strategies 2. Porter's  Five  Forces  Model:   analyze  the  competitive  forces  within  the  environment  in   which  a  company  operates  to  assess  the  potential  for  profitability  in  an  industry ○ Buying  power:  ability  of  buyers  to  affect  the  price  they  must  pay  for  an  item If  it's  high,  customers  can  force  a  company  and  its  competitors  to   compete  on  price,  typically  driving  prices  down Switching  costs  and  loyalty  programs ○ Supplier  power:  the  suppliers'  ability  to  influence  the  prices  they  charge  for   supplies If  it's  high,  the  supplier  can  influence  the  industry  by  charging  higher   prices,  limiting  quality  or  services,  or  shifting  costs  to  industry  participants ○ Threat  of  Substitute  Products  or  Services:  is  high  when  there  are  many   alternatives  to  a  product  or  service  and  low  when  there  are  few  alternatives Travelers:  many  choices  of  airlines A  company  can  reduce  the  threat  of  substitutes  by  offering  additional   value  through  wider  product  distribution § Pop  in  vending  machines ○ Threat  of  New  Entrants:  is  high  when  it  is  easy  for  new  competitors  to  enter  a   market  and  low  when  there  are  significant  entry  barriers  to  joining  a  market Entry  barrier:  feature  of  a  product  or  service  that  customers  have  come  to   expect,  and  entering  competitors  must  offer  the  same  for  survival ○ Rivalry  among  Existing  Competitors  :  is  high  when  competition  is  fierce  and  low   when  competitors  are  more  complacent Grocery  industry:  high Product  differentiation  can  reduce  rivalry 3. Porter's  Three  Generic  Strategies  Model: generic  business  strategies  that  are  neither   organization  nor  industry  specific  and  can  be  applied  to  any  business,  product,  or   service ○ Adopt  one  of  these  strategies Broad  cost  leadership Broad  differentiation Focused  strategy ○ Broad  market  and  low  cost:  Walmart
○ Broad  market  and  high  cost:  Neiman  Marcus
○ Narrow  market  and  low  cost:  Payless
○ Narrow  market  and  high  cost:  Tiffany  &  Co.
4. Value  Chain  and  Value  Chain  Analysis:  views  a  firm  as  a  series  of  business  processes,   each  which  adds  value  to  the  product  or  service ○ Primary  value  activities Inbound  logistics:  acquires  raw  materials  and  resources  and  distributes  to   manufacturing  as  required Operations:  transforms  raw  materials  or  inputs  into  goods  and  services Outbound  logistics:  distributes  goods  and  services  to  customers Marketing  and  sales::  promotes,  prices,  and  sells  products  to  customers Service:  provides  customer  support  after  the  sale  of  goods  and  services ○ Support  value  activities Firm  infrastructure:  the  company  format  or  development  sructures,   environment,  and  systems Human  resource  management:  provides  employee  training,  hiring,  and   compensation Technology  development:  applies  MIS  to  processes  to  add  value Procurement:  purchases  inputs  such  as  raw  materials,  resources,   equipment,  and  supplies Chapter  2:  Decisions  and  Processes • What  is  a  process? A  group  of  business  activities  undertaken  by  an  organization  in  pursuit  of  a   common  goal Typical  business  processes  include  receiving  orders,  selling  products,  delivering   services,  distributing  products,  or  invoicing  for  services  received A  business  process  usually  depends  upon  several  business  functions  for  support A  business  process  rarely  operates  in  isolation Processes  are  interdependent § • Customer  facing  process:  results  in  a  product  or  service  that  is  received  by  an   organization's  external  customer • Business  facing  process:  invisible  to  the  external  customer  but  essential  to  the   effective  management  of  the  business • Business  process  characteristics: Processes  have  internal  and  external  users Cross-­‐departmental Occur  across  organizations Based  on  how  work  is  done  in  the  organization Every  process  should  be  documented  and  fully  understood  by  everyone   participating  in  the  process Processes  should  be  modeled  to  promote  complete  understanding • Business  process:  standardized  set  of  activities  that  accomplish  a  specific  task,  such  as   processing  a  customer's  order Transform  a  set  of  inputs  into  a  set  of  outputs  (goods  or  services)  for  another   person  or  process  by  using  people  and  tools Operational,  Managerial  and  Strategic  Support  Systems • Different  levels  of  a  typical  organization  structure 1. Operational  level:  employees  develop,  control,  and  maintain  core  business  activities   required  to  run  day-­‐to-­‐day  operations ○ Operational  decisions  are  considered  structural  decisions  and  arise  when   established  processes  offer  potential  solutions 2. Managerial  level:  employees  are  continuously  evaluating  company  operations  to  hone   the  firm's  abilities  to  identify,  adapt  to,  and  leverage  change ○ Semi-­‐structured  decisions 3. Strategic  Level:  managers  develop  overall  business  strategies,  goals,  and  objectives  as   part  of  the  company's  strategic  plan 1. Unstructured  decisions What  is  Systems  Thinking? Focuses  on  how  the  things  being  studied  interacts  with  the  other  constituents   of  the  system-­‐ a  set  of  elements  that  interact  to  produce  behavior-­‐ of  which  it  is   a  part Why  is  Systems  Thinking  Important  to  a  Business? Works  by  expanding  its  view  to  take  into  account  larger  and  larger  number  of   interactions  as  an  issue  is  being  studied  or  a  problem  is  being  solved Systems  thinking-­‐    a  way  of  monitoring  the  entire  system  by  viewing  multiple  inputs   being  processed  or  transformed  to  produce  outputs  while  continuously  gathering   feedback  on  each  part Inputs Processes Outputs Feedback Control(s) Transaction  Processing  Systems: (TPS),  basic  business  system  that  serves  the   operational  level  and  assists  in  making  structured  decisions • Common  example:  operational  accounting  system  (payroll  system  or  order-­‐ entry  system) • Operational  support  system Decision  Support  Systems: model  information  using  OLAP,  which  provides  assistance   in  evaluating  and  choosing  among  different  courses  of  action • OLAP:  online  analytical  processing,  manipulation  of  information  to  create   business  intelligence  in  support  of  strategic  decisions  making • Managerial  support  system Executive  Information  Systems:  is  a  specialized  DSS  that  supports  senior-­‐level   executives  and  unstructured,  long-­‐term,  non-­‐routine  decisions  requiring  judgment,   evaluation,  and  insight • Strategic  support  system   Artificial  Intelligence:  (AI),  simulates  human  thinking  and  behavior,  such  as  the  ability   to  reason  and  learn • 5  categories  of  AI  systems 1. Expert  systems § Computerized  advisory  programs  that  imitate  the  reasoning  processes  of   experts  in  solving  difficult  problems § Most  common  form,  they  fill  in  the  gap  when  human  experts  are  difficult   to  find § Play  chess  and  assist  in  medical  diagnosis   2. Neural  networks § (Artificial  neural  network),  attempts  to  emulate  the  way  the  human  brain   works § Finance  industry  use  it  to  review  loan  applications  and  create  patterns  or   profiles  of  applications   § Fuzzy  logic 3. Genetic  algorithms § Mimics  the  evolutionary,  survival-­‐of-­‐the-­‐fittest  process  to  generate   increasingly  better  solutions  to  a  problem   § Mutation § Best  suited  to  decision  making  environments  in  which  thousands  of   solutions  are  possible § Business  executives,  investment  companies,  and  telecommunication   companies 4. Intelligent  agents § Special-­‐purpose,  knowledge-­‐based  information  system  that  accomplishes   specific  tasks  on  behalf  of  its  users § Usually  have  a  graphical  representation   § Shopping  bot:  software  that  will  search  several  retail  websites  and   provide  a  comparison  of  each  retailer's  offerings 5. Virtual  reality § Computer-­‐simulated  environment  that  can  be  a  simulation  of  the  real   world  or  an  imaginary  world § Virtual  surgery Business  Process  Definitions • Business  process  patent:  patent  that  protects  a  specific  set  of  procedures  for   conducting  particular  business  activity • Core  processes:  business  processes  such  as,  manufacturing  goods,  selling  products,   and  providing  service,  that  make  up  the  primary  activities  in  a  value  chain • Static  process:  uses  a  systematic  approach  in  an  attempt  to  improve  business   effectiveness  and  efficiency  continuously   • Dynamic  process:  continuously  changing  and  provides  business  solutions  to  ever-­‐ changing  business  operations • Business  process  modeling:  activity  of  creating  a  detailed  flowchart  or  process  map  of   a  work  process  that  shows  its  inputs,  tasks,  and  activities  in  a  structured  sequence • Business  process  model:  graphic  description  of  a  process,  showing  the  sequence  of   process  tasks,  which  is  developed  for  a  specific  purpose  and  from  a  selected  viewpoint • Business  Process  Model  and  Notation  (BPMN):  graphical  notation  that  depicts  the   steps  in  a  business  process • As-­‐is  process  models:  represent  the  current  state  of  the  operation  that  has  been   mapped,  without  any  specific  improvements  or  changes  to  existing  processes • To-­‐Be  process  model:  show  the  results  of  applying  change  improvement  opportunities   to  the  current  (As-­‐is)  process  model   • Operational  business  processes:  static,  routine,  daily  business  processes  such  as   stocking,  inventory,  checking  out  customers,  or  daily  opening  and  closing  processes • Managerial  business  processes:  semi-­‐dynamic,  semi-­‐routine,  monthly  business   processes  such  as  resource  allocation,,  sales  strategy,  or  manufacturing  process   improvements • Streamlining:  improves  business  process  efficiencies  by  simplifying  or  eliminating   unnecessary  steps • Strategic  business  process:  dynamic,  non-­‐routine,  long-­‐term  business  processes  such   as  financial  planning,  expansion  strategies,  and  stakeholder  interactions • Business  process  reengineering  (BPR):  the  analysis  and  redesign  of  workflow  within   and  between  enterprises ○ Fundamental  rethinking  and  radical  redesign  of  business  processes  to  achieve   dramatic  improvements  in  cost,  quality,  speed,  and  service ○ Purpose  of  BPR  is  to  make  all  business  processes  best-­‐in-­‐class Business  Process  Improvement • Attempts  to  understand  and  measure  the  current  process  and  make  performance   improvements • Continuous  process  improvement  model:  attempts  to  understand  and  measure  the   current  process,  and  make  performance  improvements  accordingly
Process  improvement  is  used  to  eliminate  unnecessary  work  and  improve  productivity
Process  improvement  involves  identifying,  analyzing,  and  improving  the  process Process  improvement  involves  taking  action  to  ensure  process  is  controlled  vs.  re-­‐ building  the  structural  costs  we  eliminated Improvement  in  processes  is  critical  to  seizing  and  maintaining  a  competitive   advantage Business  Process  Management • Focuses  on  evaluating  and  improving  processes  that  include  both  person-­‐to-­‐person   workflow  and  system-­‐to-­‐system  communications • Drivers: Modeling  for  understanding  and  documentation Modeling  for  redesign Modeling  for  execution  and  compliance • What  is  Systems  Thinking? ○ Focuses  on  how  the  things  being  studied  interacts  with  the  other  constituents   of  the  system-­‐ a  set  of  elements  that  interact  to  produce  behavior-­‐ of  which  it  is   a  part Systems  Thinking  and  Systems  Components • Why  is  Systems  Thinking  Important  to  a  Business? Works  by  expanding  its  view  to  take  into  account  larger  and  larger  number  of   interactions  as  an  issue  is  being  studied  or  a  problem  is  being  solved • Systems  thinking-­‐    a  way  of  monitoring  the  entire  system  by  viewing  multiple  inputs   being  processed  or  transformed  to  produce  outputs  while  continuously  gathering   feedback  on  each  part Inputs Processes Outputs Feedback Control(s) HBR:  Staple  Yourself  to  an  Order • Every  customer's  experience  is  determined  by  a  company's  order  management  cycle   (OMC)   When  managers  track  each  step  of  the  OMC,  they  work  their  way  through  the   company  from  the  customers'  angle  rather  than  from  their  own Discover  how  various  changes  affect  customers • The  typical  OMC  includes  ten  activities  that  can  overlap  or  interact Step  1:  order  planning Step  2:  order  generation:  usually  produces  a  gap  between  order  generation  itself,   order  planning,  and  later  steps Step  3:  cost  estimations  and  pricing Step  4:  order  receipt  and  entry Step  5:  order  selection  and  prioritization:  process  of  choosing  which  orders  to  accept   and  which  to  decline Step  6:  scheduling:  when  the  order  gets  slotted  into  an  actual  production  or   operational  sequence Step  7:  fulfillment:  actual  provision  of  the  product  or  service Step  8:  billing:  getting  the  bill  out  efficiently  and  making  the  collection  quickly ○ Serves  the  needs    of  the  company,  not  the  customer Step  9:  returns  and  claims:  flow  upstream  and  can  create  logistical  messes Step  10:  postsales  services • Problems  found: Most  companies  never  view  the  OMC  as  a  whole  system Each  step  requires  a  mix  of  overlapping  functional  responsibilities To  top  management,  the  details  of  the  OMC  are  invisible The  customer  remains  as  remote  form  the  OMC  as  top  management • It  takes  hard  work  for  a  company  to  improve  its  order  management Successful  efforts  involve  analysis,  system  focus,  and  political  strategy Analysis:  draw  your  OMC,  and  chart  the  gaps System  focus:    put  the  pieces  together,  move  across  boundaries Political  strategy:  staple  yourself  to  an  order,  tie  the  company  closer  together • Benefits  of  fixing  my  OMC Experience  improved  customer  satisfaction Interdepartmental  problems  will  recede Companies  will  improve  their  financial  performance Chapter  3:  eBusiness Pinterest  Case  and  Class  Discussion • Do  you  consider  Pinterest  a  form  of  disruptive  or  sustaining  technology? Sustaining Disruptive  vs.  Sustaining  Technologies • Disruptive  technology:  a  new  way  of  doing  things  that  initially  does  not  meet  the   needs  of  existing  customers • Sustaining  technology:  produces  an  improved  product  customers  are  eager  to  buy Internet  and  the  World  Wide  Web • The  internet  and  the  world  wide  web  caused  business  disruption ○ Allowed  people  to  communicate  and  collaborate  in  ways  that  were  not  possible   before  the  information  age ○ Disrupted  the  way  businesses  operate,  employees  communicate,  and  products   are  developed  and  sold. eBusiness  Models • Business-­‐to-­‐business(B2B):  businesses  buying  from  and  selling  to  each  other  over  the   internet • Business-­‐to-­‐consumer(B2C):  any  business  that  sells  its  products  or  services  to   consumers  over  the  Internet • Consumer-­‐to-­‐business(C2B):  any  consumer  who  sells  a  product  or  service  to  a   business  over  the  internet • Consumer-­‐to-­‐consumer(C2C):  sites  primarily  offering  goods  and  services  to  assist   consumers  interacting  with  each  other  over  the  Internet B2C  eBusiness  Types • Eshop:  sometimes  called  and  estore  or  etailer,  online  version  of  a  retail  store  where   customers  can  shop  at  any  hour 1. Brick-­‐and-­‐mortar:  business  that  operates  in  a  physical  store  without  an  Internet   presence 2. Click-­‐and-­‐Mortar:  business  that  operates  in  a  physical  store  and  on  the  Internet 3. Pure-­‐Play:  business  that  operates  on  the  Internet  only  without  a  physical  store eBusiness  Measurements • Tools  for  connecting  and  communicating:  email,  instant  messaging,  podcasting,   content  management  systems,  videoconferencing,  and  web  conferencing eBusiness  Advantages  and  Challenges • Advantages:  expanding  global  reach,  opening  new  markets,  reducing  costs,  and   improving  operations  and  effectiveness • Challenges:  identifying  limited  market  segments,  managing  consumer  trust,  ensuring   consumer  protection,  adhering  to  taxation  rules Web  1.0,  Web  2.0  and  Web  3.0 • Web  1.0:  refers  to  the  World  Wide  Web  during  its  first  few  years  of  operation • Web  2.0:  the  next  generation  of  internet  use ○ More  mature,  distinctive  communications  platform  characterized  by  new   qualities  such  as  collaboration,  sharing,  and  being  free ○ Technical  skills  no  longer  required  to  use  and  publish  information
○ Four  characteristics
§ Content  sharing  through  open  sourcing § User-­‐contributed  content § Collaboration  inside  the  organization § Collaboration  outside  the  organization ○ Blogs,  wikis,  and  mashups • Web  3.0:  based  on  intelligent  web  applications  using  natural  language  processing,   machine-­‐based  learning  and  reasoning,  and  intelligent  applications ○ Next  step  in  the  evolution  of  the  Internet  and  web  applications
○ Offers  a  way  for  people  to  describe  information  in  ways  that  enable  computers  
to  understand  the  relationships  among  concepts  and  topics Exam  1  Study  Guide Friday,  September   29,  2017 3:10  PM
background image Highlighted  topics  are  topics  from  review  outline  provided  on  D2L Chapter  1:  Information  Systems  in  Business • Business  strategy:  leadership  plan  that  achieves  a  specific  set  of  goals  or  objectives   such  as ○ Developing  new  products  or  services
○ Entering  new  market
○ Increasing  customer  loyalty
○ Attracting  new  customers
○ Increasing  sales
Internet  of  things  Case  and  Class  Discussion • Internet  of  things  (IoT):  world  where  interconnected,  Internet-­‐enabled  devices  can   collect  and  share  data  without  human  intervention ○ Cars,  phones,  thermostats • It's  important  for  business  leaders  to  understand  that  data  collection  rates  from  IoT   devices  is  increasing  exponentially  because  it's  here  to  stay  and  they  need  to  know   how  to  utilize  it  due  to  the  rapid  growth. • There  are  security  issues  associated  with  IoT  devices  because  data  is  flowing  to  and   from  unsecure  areas. Business  Competitive  Advantages  Using  IT  Enablers • A  competitive  advantage  is  a  feature  of  a  product  or  service  on  which  customers  place   a  greater  value  than  they  do  on  similar  offerings  from  competitors   ○ Provide  the  same  product  or  service  either  at  a  lower  price  or  with  additional   value  that  can  fetch  premium  prices ○ Often  temporary  because  competitors  catch  on • First-­‐mover  advantage:  when  a  company  can  increase  its  market  share  by  being  the   first  with  a  new  competitive  advantage • Competitive  intelligence:  process  of  gathering  information  about  the  competitive   environment,  including  competitors'  plans,  activities,  and  products,  to  improve  a   company's  ability  to  succeed   • 4  tools  to  analyze  competitive  intelligence  and  develop  competitive  advantages 1. SWOT  analysis:  evaluates  an  organization's  strengths,  weaknesses,  opportunities,  and   threats  to  identify  significant  influences  that  work  for  or  against  business  strategies 2. Porter's  Five  Forces  Model:   analyze  the  competitive  forces  within  the  environment  in   which  a  company  operates  to  assess  the  potential  for  profitability  in  an  industry ○ Buying  power:  ability  of  buyers  to  affect  the  price  they  must  pay  for  an  item If  it's  high,  customers  can  force  a  company  and  its  competitors  to   compete  on  price,  typically  driving  prices  down Switching  costs  and  loyalty  programs ○ Supplier  power:  the  suppliers'  ability  to  influence  the  prices  they  charge  for   supplies If  it's  high,  the  supplier  can  influence  the  industry  by  charging  higher   prices,  limiting  quality  or  services,  or  shifting  costs  to  industry  participants ○ Threat  of  Substitute  Products  or  Services:  is  high  when  there  are  many   alternatives  to  a  product  or  service  and  low  when  there  are  few  alternatives Travelers:  many  choices  of  airlines A  company  can  reduce  the  threat  of  substitutes  by  offering  additional   value  through  wider  product  distribution § Pop  in  vending  machines ○ Threat  of  New  Entrants:  is  high  when  it  is  easy  for  new  competitors  to  enter  a   market  and  low  when  there  are  significant  entry  barriers  to  joining  a  market Entry  barrier:  feature  of  a  product  or  service  that  customers  have  come  to   expect,  and  entering  competitors  must  offer  the  same  for  survival ○ Rivalry  among  Existing  Competitors  :  is  high  when  competition  is  fierce  and  low   when  competitors  are  more  complacent Grocery  industry:  high Product  differentiation  can  reduce  rivalry 3. Porter's  Three  Generic  Strategies  Model: generic  business  strategies  that  are  neither   organization  nor  industry  specific  and  can  be  applied  to  any  business,  product,  or   service ○ Adopt  one  of  these  strategies Broad  cost  leadership Broad  differentiation Focused  strategy ○ Broad  market  and  low  cost:  Walmart
○ Broad  market  and  high  cost:  Neiman  Marcus
○ Narrow  market  and  low  cost:  Payless
○ Narrow  market  and  high  cost:  Tiffany  &  Co.
4. Value  Chain  and  Value  Chain  Analysis:  views  a  firm  as  a  series  of  business  processes,   each  which  adds  value  to  the  product  or  service ○ Primary  value  activities Inbound  logistics:  acquires  raw  materials  and  resources  and  distributes  to   manufacturing  as  required Operations:  transforms  raw  materials  or  inputs  into  goods  and  services Outbound  logistics:  distributes  goods  and  services  to  customers Marketing  and  sales::  promotes,  prices,  and  sells  products  to  customers Service:  provides  customer  support  after  the  sale  of  goods  and  services ○ Support  value  activities Firm  infrastructure:  the  company  format  or  development  sructures,   environment,  and  systems Human  resource  management:  provides  employee  training,  hiring,  and   compensation Technology  development:  applies  MIS  to  processes  to  add  value Procurement:  purchases  inputs  such  as  raw  materials,  resources,   equipment,  and  supplies Chapter  2:  Decisions  and  Processes • What  is  a  process? A  group  of  business  activities  undertaken  by  an  organization  in  pursuit  of  a   common  goal Typical  business  processes  include  receiving  orders,  selling  products,  delivering   services,  distributing  products,  or  invoicing  for  services  received A  business  process  usually  depends  upon  several  business  functions  for  support A  business  process  rarely  operates  in  isolation Processes  are  interdependent § • Customer  facing  process:  results  in  a  product  or  service  that  is  received  by  an   organization's  external  customer • Business  facing  process:  invisible  to  the  external  customer  but  essential  to  the   effective  management  of  the  business • Business  process  characteristics: Processes  have  internal  and  external  users Cross-­‐departmental Occur  across  organizations Based  on  how  work  is  done  in  the  organization Every  process  should  be  documented  and  fully  understood  by  everyone   participating  in  the  process Processes  should  be  modeled  to  promote  complete  understanding • Business  process:  standardized  set  of  activities  that  accomplish  a  specific  task,  such  as   processing  a  customer's  order Transform  a  set  of  inputs  into  a  set  of  outputs  (goods  or  services)  for  another   person  or  process  by  using  people  and  tools Operational,  Managerial  and  Strategic  Support  Systems • Different  levels  of  a  typical  organization  structure 1. Operational  level:  employees  develop,  control,  and  maintain  core  business  activities   required  to  run  day-­‐to-­‐day  operations ○ Operational  decisions  are  considered  structural  decisions  and  arise  when   established  processes  offer  potential  solutions 2. Managerial  level:  employees  are  continuously  evaluating  company  operations  to  hone   the  firm's  abilities  to  identify,  adapt  to,  and  leverage  change ○ Semi-­‐structured  decisions 3. Strategic  Level:  managers  develop  overall  business  strategies,  goals,  and  objectives  as   part  of  the  company's  strategic  plan 1. Unstructured  decisions What  is  Systems  Thinking? Focuses  on  how  the  things  being  studied  interacts  with  the  other  constituents   of  the  system-­‐ a  set  of  elements  that  interact  to  produce  behavior-­‐ of  which  it  is   a  part Why  is  Systems  Thinking  Important  to  a  Business? Works  by  expanding  its  view  to  take  into  account  larger  and  larger  number  of   interactions  as  an  issue  is  being  studied  or  a  problem  is  being  solved Systems  thinking-­‐    a  way  of  monitoring  the  entire  system  by  viewing  multiple  inputs   being  processed  or  transformed  to  produce  outputs  while  continuously  gathering   feedback  on  each  part Inputs Processes Outputs Feedback Control(s) Transaction  Processing  Systems: (TPS),  basic  business  system  that  serves  the   operational  level  and  assists  in  making  structured  decisions • Common  example:  operational  accounting  system  (payroll  system  or  order-­‐ entry  system) • Operational  support  system Decision  Support  Systems: model  information  using  OLAP,  which  provides  assistance   in  evaluating  and  choosing  among  different  courses  of  action • OLAP:  online  analytical  processing,  manipulation  of  information  to  create   business  intelligence  in  support  of  strategic  decisions  making • Managerial  support  system Executive  Information  Systems:  is  a  specialized  DSS  that  supports  senior-­‐level   executives  and  unstructured,  long-­‐term,  non-­‐routine  decisions  requiring  judgment,   evaluation,  and  insight • Strategic  support  system   Artificial  Intelligence:  (AI),  simulates  human  thinking  and  behavior,  such  as  the  ability   to  reason  and  learn • 5  categories  of  AI  systems 1. Expert  systems § Computerized  advisory  programs  that  imitate  the  reasoning  processes  of   experts  in  solving  difficult  problems § Most  common  form,  they  fill  in  the  gap  when  human  experts  are  difficult   to  find § Play  chess  and  assist  in  medical  diagnosis   2. Neural  networks § (Artificial  neural  network),  attempts  to  emulate  the  way  the  human  brain   works § Finance  industry  use  it  to  review  loan  applications  and  create  patterns  or   profiles  of  applications   § Fuzzy  logic 3. Genetic  algorithms § Mimics  the  evolutionary,  survival-­‐of-­‐the-­‐fittest  process  to  generate   increasingly  better  solutions  to  a  problem   § Mutation § Best  suited  to  decision  making  environments  in  which  thousands  of   solutions  are  possible § Business  executives,  investment  companies,  and  telecommunication   companies 4. Intelligent  agents § Special-­‐purpose,  knowledge-­‐based  information  system  that  accomplishes   specific  tasks  on  behalf  of  its  users § Usually  have  a  graphical  representation   § Shopping  bot:  software  that  will  search  several  retail  websites  and   provide  a  comparison  of  each  retailer's  offerings 5. Virtual  reality § Computer-­‐simulated  environment  that  can  be  a  simulation  of  the  real   world  or  an  imaginary  world § Virtual  surgery Business  Process  Definitions • Business  process  patent:  patent  that  protects  a  specific  set  of  procedures  for   conducting  particular  business  activity • Core  processes:  business  processes  such  as,  manufacturing  goods,  selling  products,   and  providing  service,  that  make  up  the  primary  activities  in  a  value  chain • Static  process:  uses  a  systematic  approach  in  an  attempt  to  improve  business   effectiveness  and  efficiency  continuously   • Dynamic  process:  continuously  changing  and  provides  business  solutions  to  ever-­‐ changing  business  operations • Business  process  modeling:  activity  of  creating  a  detailed  flowchart  or  process  map  of   a  work  process  that  shows  its  inputs,  tasks,  and  activities  in  a  structured  sequence • Business  process  model:  graphic  description  of  a  process,  showing  the  sequence  of   process  tasks,  which  is  developed  for  a  specific  purpose  and  from  a  selected  viewpoint • Business  Process  Model  and  Notation  (BPMN):  graphical  notation  that  depicts  the   steps  in  a  business  process • As-­‐is  process  models:  represent  the  current  state  of  the  operation  that  has  been   mapped,  without  any  specific  improvements  or  changes  to  existing  processes • To-­‐Be  process  model:  show  the  results  of  applying  change  improvement  opportunities   to  the  current  (As-­‐is)  process  model   • Operational  business  processes:  static,  routine,  daily  business  processes  such  as   stocking,  inventory,  checking  out  customers,  or  daily  opening  and  closing  processes • Managerial  business  processes:  semi-­‐dynamic,  semi-­‐routine,  monthly  business   processes  such  as  resource  allocation,,  sales  strategy,  or  manufacturing  process   improvements • Streamlining:  improves  business  process  efficiencies  by  simplifying  or  eliminating   unnecessary  steps • Strategic  business  process:  dynamic,  non-­‐routine,  long-­‐term  business  processes  such   as  financial  planning,  expansion  strategies,  and  stakeholder  interactions • Business  process  reengineering  (BPR):  the  analysis  and  redesign  of  workflow  within   and  between  enterprises ○ Fundamental  rethinking  and  radical  redesign  of  business  processes  to  achieve   dramatic  improvements  in  cost,  quality,  speed,  and  service ○ Purpose  of  BPR  is  to  make  all  business  processes  best-­‐in-­‐class Business  Process  Improvement • Attempts  to  understand  and  measure  the  current  process  and  make  performance   improvements • Continuous  process  improvement  model:  attempts  to  understand  and  measure  the   current  process,  and  make  performance  improvements  accordingly
Process  improvement  is  used  to  eliminate  unnecessary  work  and  improve  productivity
Process  improvement  involves  identifying,  analyzing,  and  improving  the  process Process  improvement  involves  taking  action  to  ensure  process  is  controlled  vs.  re-­‐ building  the  structural  costs  we  eliminated Improvement  in  processes  is  critical  to  seizing  and  maintaining  a  competitive   advantage Business  Process  Management • Focuses  on  evaluating  and  improving  processes  that  include  both  person-­‐to-­‐person   workflow  and  system-­‐to-­‐system  communications • Drivers: Modeling  for  understanding  and  documentation Modeling  for  redesign Modeling  for  execution  and  compliance • What  is  Systems  Thinking? ○ Focuses  on  how  the  things  being  studied  interacts  with  the  other  constituents   of  the  system-­‐ a  set  of  elements  that  interact  to  produce  behavior-­‐ of  which  it  is   a  part Systems  Thinking  and  Systems  Components • Why  is  Systems  Thinking  Important  to  a  Business? Works  by  expanding  its  view  to  take  into  account  larger  and  larger  number  of   interactions  as  an  issue  is  being  studied  or  a  problem  is  being  solved • Systems  thinking-­‐    a  way  of  monitoring  the  entire  system  by  viewing  multiple  inputs   being  processed  or  transformed  to  produce  outputs  while  continuously  gathering   feedback  on  each  part Inputs Processes Outputs Feedback Control(s) HBR:  Staple  Yourself  to  an  Order • Every  customer's  experience  is  determined  by  a  company's  order  management  cycle   (OMC)   When  managers  track  each  step  of  the  OMC,  they  work  their  way  through  the   company  from  the  customers'  angle  rather  than  from  their  own Discover  how  various  changes  affect  customers • The  typical  OMC  includes  ten  activities  that  can  overlap  or  interact Step  1:  order  planning Step  2:  order  generation:  usually  produces  a  gap  between  order  generation  itself,   order  planning,  and  later  steps Step  3:  cost  estimations  and  pricing Step  4:  order  receipt  and  entry Step  5:  order  selection  and  prioritization:  process  of  choosing  which  orders  to  accept   and  which  to  decline Step  6:  scheduling:  when  the  order  gets  slotted  into  an  actual  production  or   operational  sequence Step  7:  fulfillment:  actual  provision  of  the  product  or  service Step  8:  billing:  getting  the  bill  out  efficiently  and  making  the  collection  quickly ○ Serves  the  needs    of  the  company,  not  the  customer Step  9:  returns  and  claims:  flow  upstream  and  can  create  logistical  messes Step  10:  postsales  services • Problems  found: Most  companies  never  view  the  OMC  as  a  whole  system Each  step  requires  a  mix  of  overlapping  functional  responsibilities To  top  management,  the  details  of  the  OMC  are  invisible The  customer  remains  as  remote  form  the  OMC  as  top  management • It  takes  hard  work  for  a  company  to  improve  its  order  management Successful  efforts  involve  analysis,  system  focus,  and  political  strategy Analysis:  draw  your  OMC,  and  chart  the  gaps System  focus:    put  the  pieces  together,  move  across  boundaries Political  strategy:  staple  yourself  to  an  order,  tie  the  company  closer  together • Benefits  of  fixing  my  OMC Experience  improved  customer  satisfaction Interdepartmental  problems  will  recede Companies  will  improve  their  financial  performance Chapter  3:  eBusiness Pinterest  Case  and  Class  Discussion • Do  you  consider  Pinterest  a  form  of  disruptive  or  sustaining  technology? Sustaining Disruptive  vs.  Sustaining  Technologies • Disruptive  technology:  a  new  way  of  doing  things  that  initially  does  not  meet  the   needs  of  existing  customers • Sustaining  technology:  produces  an  improved  product  customers  are  eager  to  buy Internet  and  the  World  Wide  Web • The  internet  and  the  world  wide  web  caused  business  disruption ○ Allowed  people  to  communicate  and  collaborate  in  ways  that  were  not  possible   before  the  information  age ○ Disrupted  the  way  businesses  operate,  employees  communicate,  and  products   are  developed  and  sold. eBusiness  Models • Business-­‐to-­‐business(B2B):  businesses  buying  from  and  selling  to  each  other  over  the   internet • Business-­‐to-­‐consumer(B2C):  any  business  that  sells  its  products  or  services  to   consumers  over  the  Internet • Consumer-­‐to-­‐business(C2B):  any  consumer  who  sells  a  product  or  service  to  a   business  over  the  internet • Consumer-­‐to-­‐consumer(C2C):  sites  primarily  offering  goods  and  services  to  assist   consumers  interacting  with  each  other  over  the  Internet B2C  eBusiness  Types • Eshop:  sometimes  called  and  estore  or  etailer,  online  version  of  a  retail  store  where   customers  can  shop  at  any  hour 1. Brick-­‐and-­‐mortar:  business  that  operates  in  a  physical  store  without  an  Internet   presence 2. Click-­‐and-­‐Mortar:  business  that  operates  in  a  physical  store  and  on  the  Internet 3. Pure-­‐Play:  business  that  operates  on  the  Internet  only  without  a  physical  store eBusiness  Measurements • Tools  for  connecting  and  communicating:  email,  instant  messaging,  podcasting,   content  management  systems,  videoconferencing,  and  web  conferencing eBusiness  Advantages  and  Challenges • Advantages:  expanding  global  reach,  opening  new  markets,  reducing  costs,  and   improving  operations  and  effectiveness • Challenges:  identifying  limited  market  segments,  managing  consumer  trust,  ensuring   consumer  protection,  adhering  to  taxation  rules Web  1.0,  Web  2.0  and  Web  3.0 • Web  1.0:  refers  to  the  World  Wide  Web  during  its  first  few  years  of  operation • Web  2.0:  the  next  generation  of  internet  use ○ More  mature,  distinctive  communications  platform  characterized  by  new   qualities  such  as  collaboration,  sharing,  and  being  free ○ Technical  skills  no  longer  required  to  use  and  publish  information
○ Four  characteristics
§ Content  sharing  through  open  sourcing § User-­‐contributed  content § Collaboration  inside  the  organization § Collaboration  outside  the  organization ○ Blogs,  wikis,  and  mashups • Web  3.0:  based  on  intelligent  web  applications  using  natural  language  processing,   machine-­‐based  learning  and  reasoning,  and  intelligent  applications ○ Next  step  in  the  evolution  of  the  Internet  and  web  applications
○ Offers  a  way  for  people  to  describe  information  in  ways  that  enable  computers  
to  understand  the  relationships  among  concepts  and  topics Exam  1  Study  Guide Friday,  September   29,  2017 3:10  PM

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School: Michigan State University
Department: OTHER
Course: Bus Analytics & Info Systems
Professor: Frederick Rodammer
Term: Fall 2017
Tags: ITM, 209, exam, study, and guide
Name: ITM 209 Exam 1 Study Guide
Description: This is a detailed study guide, covering chapters one through three, for the exam on Wednesday, October 4th.
Uploaded: 09/28/2017
10 Pages 156 Views 124 Unlocks
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