Final Exam Study Guide
Final Exam Study Guide MGMT 382
Popular in Management Information Systems
Popular in Business, management
verified elite notetaker
verified elite notetaker
verified elite notetaker
One Day of Notes
verified elite notetaker
One Day of Notes
verified elite notetaker
This 17 page Study Guide was uploaded by Emily Gurnee on Tuesday October 20, 2015. The Study Guide belongs to MGMT 382 at Purdue University taught by Dr. Dejoie in Winter2015. Since its upload, it has received 122 views. For similar materials see Management Information Systems in Business, management at Purdue University.
Reviews for Final Exam Study Guide
Report this Material
What is Karma?
Karma is the currency of StudySoup.
You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!
Date Created: 10/20/15
MGMT 382 Final Exam Notes Spring 2015 Associate Entitv quotmanytomanyquot entity that has attributes Also a relationship it links entities together When should a relationship with attributes instead be an associate entity o All relationships for the associative entity should be many 0 Associative entity could have meaning independent of other entities o Associate entity preferably has a unique indenti er and should also have other attributes o Associative entity may be participating in other relationships other than the entities of the associated relationships 0 Ternary relationships should be converted to associative entities Infrastructu re 0 Framework of an organization 0 Behind the scenes Enables functionality Organization Design Challenge of the 199039s and beyond Complex centralized intel frame Network gt intelligence A Hierarchy control collaboration El Entrepreneur Simple StableCertain DynamicUncertain Centralized One processor many monitors amp key boards VERY Limited access 0 Good for organization bad for individuals Decentralized 1980 information revolution PCD own processor storage Microcomputer autonomy Small area network More power at individual level Respond to problems faster Great for individuals not for organization Networked intellidence best of both worlds Which activities should we keep inside 1950 Vertically integrated rm 0 Vast majority of ops held in company itself Selective Sourcino Distribution 19601980 0 Pick which parts of the process you want to do Outsource the rest Easier to create a computer system for a vertically integrated from Virtual Corporation 0 Most of ops happen outside the organization 0 Example mom amp lunch boxes from China 0 Many companies thrive on just putting a buyer amp seller in touch with each other 0 Information and management of organization always stays in core American Airline s SABRE System 0 19601978 before deregulation oTransaction relationship 0 Onetomany market structure 0 Large travel agents 0 19781980 0 Other airlines come into the picture no more regulation 0 Contract relationships manytomany relationships Late 1980 spresent 0 Individual travel link directly to SBRE through 3rCI party networks o Online service providers Compuserve AOL Prodigy 0 Corporate travel nits link directly to SABRE through their rm39s proprietary networks 0 Disintermediation eliminating the role of the middle man Use of information technology to reduceeliminate middle man Strategy Porter39s Five Forces Competitive Advantage Superior performance in a particular area compared to your peerscompetition Resources Economies of scale Not long lived need to keep coming up with it Internal Competitive Advantage Other people can39t see it Inside organization Internal process particular rights to resources Ef ciency in employee management Recipe External Competitive Advantade People can see it and gure it out Shortlived Example Shaq O39Neal Michael Porter Harvard Professor l quotFather of competitive advantagequot 5 Forces Existing Rivalry Threat of new entrance Threat of substitute prod uctsservices Bargaining power of buyer Bargaining power of supplier PWF E Existind Rivaer Coke is always thinking about Pepsi Purdue D Big 10 0 Relative Rivalry 0 Relative size of the company Threat of New Entrance You get to know the people that you complete with on a regular basis Barriers to entrance are created to prevent new people 0 Competitive necessity competitive advantage becomes a requirement for industry o Supermarkets staying open later amp later The only way you can break into this industry is to be open 24 hours Threat of Substitute productsservices How do I make myself unique among common commodities Baroain Power of Buver Night clubs 0 Freedom to choose Baroain Power of Suoplier MONOPOLY POWER 0 How many suppliers are there 0 Example cable companies at Texas AampM Bargaining power is able to shift Application to Information Technoloqv Relative rivalry o Leverage information 0 Use technology to improve systems 0 How can you use a technology over your competitors Barrier to Entry 0 Storefront amp web purchasing 0 Net ix use technology to break down barrier to entry 0 Blockbuster McDonald39s Model D real estate 0 Instead of people coming to us we will go to them 0 Substitute productsservices o Expedia bypass travel agent Created new business model 0 TurboTax bypass tax accountant Bargaining Power of Seller 0 Purchasing college textbooks 0 Also based on supply and demand amp timing 0 Many limitations New Bank Accounts 0 Where are the ATMs o This is a technology question not a nance question How do companies resoond to 5 forces 1 Low cost provider a Lowest cost in business b gure in their name c Walmart i use IT for ops amp supply chain ii justintime inventory iii use technology to address expense issues iv How can I cut a nickel per transaction 2 Differentiation a Why you should pay more for my product b Selection taste i The quoterquot factor 1 Tied to marketing amp sales side of business c Not as worried about cost 3 Niche Provider a Be a specialist in a particular area b Don39t compete headtohead i Chicken fast food ii Seafood fast food c What speci cally do you do i Narrow scope What does Porter sav Must be expert specialists Pick M strategy amp go with it don39t try to do everything In ecommerce these things change Value Chain Firm Inl rastrueture general management amounting finance strategic planning Human Resource Management recruiting training development Technology Development READ produet and process impmmemnt Eu 3point Activities Procurement l purohaein of raw materials machineel supplies llil lh ll39ld perations utbouinzd IM melting Service Logistics V 39 Logistics anti Sails I raw materials machining I warehousing advertising linetallatiun handling assembling and distribution 39 promotiom repair parts and testing I at l ainiehecl pricing 39 warehousing 39 product channel 39 relations Primary Activities Emma Reprinted with the pemi ai n of The Free Press a Division of Simon El Echusler 7 inc tram Competitive Rummage Greeting anti Sustaining Superior Performance by Michael Porter copyright quot 1935 by Michael Porter Vaue Creation Customize amp demassify AmazonDrecommending products lupgrading Primarv Activities 0 Financial activities 0 COGS 0 Direct Materials 0 Direct Labor Suoport Activities Managerial Accounting 0 Overhead 0 Salary Company slogans show where the important parts of the value chain are Jimmy John39s operations amp outbound logistics How IT impacts Value Chain 0 Service 0 call centers amp resource locations 0 Computers in cars that keep track of everything that is happening with engine etc o Create your own car on your online pro le Outbound logistics o Figuring out delivery schedules to reduce costs amp be more ef cient Inbound logistics o Justintime inventory 0 HR 0 Skills management DivX Case 0 Network effects the more people that use a product the more valuable it becomes 0 Direct your technology is directly impacted by other people using it 0 Indirect network effects by critical mass More people that want it more likely that it will open l does not change prices 0 As new standard emerge other standards will get pushed out o 2 standards can both survive if there is enough critical mass in each standard gas amp diesel 6 principles Principle 5 industry 0 All others company 0 Circuit City wants to own video recording amp watching industry Principle 1 A monopoly in the bush is often worth more than an oligopoly in hand that is under certain conditions it will be worthwhile to compete quotfor the marketquot rather than quotcompete within the marketquot Competing quotforquot verses quotinquot the market For you want a bite of everyone s piece of the pie Circuit City failed in the implementation for playing for the market 50 chance of monopoly o Relatively large piece of pie 50 chance of nothing quotClean Breakquot standard D brand new technology Not many competitors in the market DVD Consortium Principle 2 Oneway compatibility between competing standards may back re when both standards are still in their infancy and there is relatively little software available for either standard The reason is that vendors of complementary products will likely choose to release their software in a form that is compatible with the technology that reaches BOTH audiences DivX does not play in DVD player Hardware perspective buy the DivX player Last standard change was 20 years ago people are not ready to change standards again Software perspective buy the DVD disks This is a software driven problem not hardware Software sales drive hardware sales D people are willing to buy software rst Principle 3 Firms competing in markets with network effects must insure that their technology appeals to early adopters Otherwise a bandwagon of support can build an insurmountable lead for another technology Early adopters critical mass 0 Movie geeks U want to own movies 0 Internet geeks rst to own tech OTV one time view 0 Blockbuster model DivX plays 43 DVD plays widescreen D appeals more to movie geeks More titles available in DVD Lower con dence in hardware quality for DivX tech geeks not excited PERCEPTION Hardware quality most people watch once amp throw away D no need for high quality DivX is priced 1015 more than DVD with no incentive to buy over DVD Special features component of DVD Principle 4 Firms should insure that they have a formidable valet net which consists of suppliers competitors and producers of complementary products and services This is especially important for industries with network effects Suppliers 0 Zenith Good before globalization Bloated model domestic electronics little competition Not prepared for foreign competitors with competitive quality and much lower prices Distributors o The Good Guys Best Buy in Australia Some in SoCal amp Arizona Do not sell DivX exclusively o Missed opportunity overlooked distributors in mid9039s Amazon Originally just books rst expansion was into DVDvideo One of the rst trusted ecommerce Niche provider appeal to movie geek for rare titles Online company appeal to tech geek Principle 5 Make sure at least one format survives If complementary product providers support different incompatible standards demand may be very low for each of the incompatible standards demand may be very low for each of the incompatible standards and both might fail DVD consortium industry decides we re not going to have a war amp just go with DVD 0 May lead to semicompatible standards Principle 6 Communications among consumers via the Internet will likely play a big role in future standards battles While the DVD vs DivX battle was likely the rst key standards war where communication among consumers via the Internet had a major impact the Internet will surely play a key role in future standards competition 0 Consumers have an early voice in war amp have more control over standards 0 Catch DivX before it can get traction Internet politics general policy religion McBusted Case Shut down after 170 million spent on project Problems McDonaIds is not a technology company 0 Do they understand and implement technology culture 0 McDonaIds operations company 0 Everything tastes the same everywhere Consistency Easy to duplicate 0 Technology Adverse Franchisee problematic 0 70 franchises o How do I talk them into getting on board Last corporate change made process longer than before 0 Not helpful 0 More expensive 0 Franchisee quotWhat39s in it for mequot 0 Expected to see a 5 revenue increase needed 15 of 5 need to pay for the system 0 Finance people will never say quotI don39t knowquot 0 0 They will at least give you a range They were not able to estimate an increase in revenue for the company with this new technology Hispeed Internet 0000 0 Wanted a realtime system Need hispeed internet everywhere to make this possible Most McDonalds are in residential settings not corporate Most corporate stores are in international cities Is there hispeed internet there This would potentially only be possible in 50 of stores 0 Information Granularity A Summarized Information DetailFine Information V 0 Corporate is trying to manage operational level 0 Too much information 0 Who is the audience of the data ECommerce Youtube quotMaking Customers Better Makes Better Customersquot Going outside constraints amp parameters of world Commerce exchange of goods and services Ecommerce use of IT to enable or enhance commerce via electronic means electronic data interchange 0 Computers talk to each other without humans 0 Justintime inventory 1 Manifestation of Commerce a b C d Brick amp mortar establishment i Products only available at store CIick amp order i No store fronts Click amp Mortar i Both stores amp onIine ii Integration problem Digital Pure Play i Subset of Click amp Order ii Only purchase onIine iii Product is digitized amp delivered online 2 Commerce Models Business Buys Consumer Buys Business Sells B2B B2C Consumer Sells C2B C2C B2B Con rce F01 IrancnIse Clou0 S ace 0 Of ce Supplies D Purdue B2C Commerce B2C ECommerce Dell D College Students Kohl s Online 0 Pet Store D You C2C Commerce C2C Ecommerce Garage sale 0 eBay Flea market Craigslist C2B Commerce C2B Ecommerce Plato39s Closet 0 Making amp seing apps 0 Books University Book Store B2B Market Space 0 Example Pilot Uniform 0 Vertical industry speci c 0 Horizontal general to all industries Companies are allowed to play in multiple models both commerce amp e commerce 0 Amazon plays in all 4 B2B 97 activity revenues in ecommerce o VolumeD example carpet Business drives technology not the other way around BampM Pros BampM Cons Immediacy Geographic limitations Touchfeel Selection 0 Return 0 Hours 0 Customer service Face to face 0 Not convenient Cash 0 Product location Salespersuasion Costs Shoppers ambience Dropby amp impulse Cost of time CampO Pros CampO Cons Recommendations 0 Shipping 0 Cross sellupsell Lack touchfeel Reference 0 Disconnect No geographic limitations 0 Pure impulse 247 0 Technology 0 Buyers Comparisons Convenience Search CampM Pros CampM Cons Brick amp Mortar Pros Double costs 0 Click amp Order Pros Addon integration cost Addon integration 0 2 platforms 0 Online saving l differential DPP Pros DPP Cons Click amp Order Pros Most Click amp Order Cons lmmediacy Specialized tech mobile high Savingscost shipping speed 0 Inventory no restocking no 0 Transmissionvirus carrying cost Piracy Sometimes no variable cost in o No refunds app purchases 0 Preference Multiplatform Tie to technology 0 Access availability 0 Search capabilities makes better customers 0 Reduce damage 0 Updates are easier to distribute No marginal cost economies of scale Channel Con ict 63 Sunloort Click amp Mortar Perspective Channel Con ict Example St Louis Galleria o Forbid stores from promoting online platforms Mall traf cs Anchor stores create impulse buy niche provider 0 Malls take of sales don39t want revenue to happen anywhere else than the mall Channel Suoport Stockouts when they run out of stock Balking leaving if line is too long Raincheck many are never redeemed 0 1015 max are redeemed Try to keep you in the store 0 Go to online site amp order a computer that will get here by tomorrow Long Tail Case Niche products Overwhelmed with so much data amp products What is the long tail 0 Normal distribution can39t have negative product 0 If this graph was superimposed on a store the long tail represents those items not sold in the store 0 Those products are not worth the floor space they are kept in a warehouse with a cheaper real estate value c In order for quotBquot to get in the store it must become more popular or more pro table How do you get C in the store 0 Make store bigger What does it cost to build and maintain it What is the sweet spot Exploitation of Long Tail Typical Barnes amp Noble 100000130000 titles in store Amazon 3 million titles 3040 of Amazon revenue comes from books outside topo 100000 titles Video store 3000 titles Net ix 15000 titles Net ix D 20 of revenue came from outside top 3000 titles It has become more pro table for people to shop outside the store rather than inside Demand Addredation Similar to exposure by minute description 0 There39s Purdue demand all over the world not enough to put a storefront in any single location 0 But you bring them all together you have big demand Porter Niche Provider You need to be an expert Pick 1 of the 5 forces and stick with it 0 Amazon 17000 documentary titles 0 No documentary specialist on staff 0 Amazon is a differentiator amp niche provider with very little risk 0 Amazon Limit end parameter of the product Amazon will provide 0 Still holding shipping insurance cost 0 How do you get past this Integrated systems amp inventory C2C Digital Pure Play low risk Contract dealpartnership Still get revenue deferred risk 0 Don39t necessarily need to be an expert or stick to one of the 5 forces in the e commerce world 0 IT amp Information systems allow us to exploit the Long Tail 0 always us quotless popularquot not quotunpopularquot Computer Crime Keven Mitnick l 60 minutes video quotthrill seekerquot Computer vs Actual Crime quotwhite collarquot crime quotbloodlessquot crime Certain level of speci cationeducation Anonymous Hard to see that the crime has occurred Hard to value stolen information Easier to impact many people at once Don t need multiple people to steal 20 million virtual money Issue not viewed at same level as other crime Computer crime can be done from anywhere 0 Multiple countries which laws do we use Threats to Computer Environment People weakest link of any security system Hacker D 0 Originally community of people that helped each other with code problems Black hats villains malice no malice Adrenaline hacker for the thrill Vandals do damage doesn39t matter who they are Hacktivist political social agenda D send a message Cyberterrorist message with danger and violence Crackers hackers for hire focused on money Scripters hacker wannabes not high level of understanding use tool kit to break in White hats help companies gure out where weaknesses in the security system ethical hackers D ego component Nonpe0ple threats Virus application that does something that is not expected or wanted in a computer environment 0 quothave a nice dayquot virus 0 quotcookie monsterquot virus 0 Destruction Hard drive Security system rewall Graphics Printing 0 Virus requires human interventions 0 quotI39m going to try to bypass your softwarequot Worm takes advantage of network 0 Does not need human intervention quotselfpropagating Trojan humans are weak link 0 quotWarning This may be a virus but I can39t tell for sure Open or noquot 0 Payload hidden inside illegal song or video that works Denial of Service DOS overload of request so that your computer can39t function the right way 0 Large computer overloads smaller computer 0 Distributed Denial of Service DDOS uses many computers to attack another computer 2step method 0 How do I get control of 5 million computers quotcooptedquot Worm Zombie does the will of the master 0 quotAre you therequot quotCheck your balancequot Redirects amp responds to Citibank server adds millions of responses to Citi server Phishing Emails links 0 Need human help 0 Link D File downloading wormTrojan Redirected to site looks legitimate Enter password 0 Down for maintenance Scams occur in less than 10 minutes 0 Nigerian print scam Encryption Caesar cipher Julius Caesar D shift the alphabet a certain number of characters Need a key that both sides understand Steganography D hide in plain sight
Are you sure you want to buy this material for
You're already Subscribed!
Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'