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IDS Test 3 Study Guide

by: Lael Wynne

IDS Test 3 Study Guide 24418

Lael Wynne

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These notes include what is going to be on exam 3.
Intro to Management Information Systems
Study Guide
IDs, information and decisions management, business
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This 13 page Study Guide was uploaded by Lael Wynne on Sunday March 27, 2016. The Study Guide belongs to 24418 at University of Illinois at Chicago taught by Erickson in Spring 2016. Since its upload, it has received 24 views. For similar materials see Intro to Management Information Systems in Business at University of Illinois at Chicago.


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Date Created: 03/27/16
IDS 200 –SPRING 2016 TEST 3 REVIEW OUTLINE Chapter 7 – Organizations and Information Systems Personal Info system- system used by a single individual 1) Only has one user 2) Scope: personal, workgroup, enterprise, inter-prise Workgroup Info System- system that organizes and facilitates activities for groups of people Inter-Enterprise Info System- system that’s shared by two or more independent organizations Departmental Info System- system that supports a particular department Functional Info System- system that supports a specific business function Enterprise Info Systems- systems that cover an organization and support the activities for people in various departments Information Silos- data is isolated in separated info systems List of common Departmental Systems 3) Sales & marketing, Operations, Manufacturing, Customer service, Human resources, Accounting List of problems created by Information Silos 1) Data integrity- duplicated data and inconsistency 2) Disjointed processes 3) Limited info and lack of integrated info 4) Isolated decisions lead to organization inefficiencies 5) Increased expenses Business Process Reengineering and its relationship to Enterprise Systems 4) Altering existing and designing new business processes to take advantage of new info systems 5) Difficult, slow, and expensive Inherent Processes- predesigned procedures for the use of software products, saved orgs and time consuming business process reengineering Customer Relationship Management (CRM) system- suite of apps, database, and set of inherent processes for managing interactions with customers, from generation to customer service. Four phases of the customer life cycle- marketing, customer acquisition, relationship management, and loss/churn Enterprise Resource Planning (ERP) - suite of apps and inherent processes for consolidating business operations into a single computing platform 6) SAP is the worldwide leader of ERP vendors 7) Connects islands via new layer of software 8) Enables existing applications to communicate and share data Enterprise Application Integration- suite of software apps that integrates existing systems by offering layers of software and metadata that connects the apps together Four challenges of implementing enterprise systems 1) Collaborative management 2) Requirement gaps 3) Transition problems 4) Employee resistance Enterprise silos Distributed Systems- app processing is distributed across multiple computing devices Chapter Extension 9 – Enterprise Resource Planning (ERP) Systems ERP Systems -an info system based on ERP technology  Main purpose is integration  Enterprise Resource Planning (ERP)- suite of apps called modules and a set of inherent processes for consolidating business operations into a single computing platform List of applications integrated by ERP: 1) Supply chain 2) Manufacturing 3) CRM 4) Human Resources 5) Accounting Implement of ERP apps: 1) Determine current and ERP models 2) Remove inconsistencies 3) Implement the ERP application Ways to customize ERP application programs – Configuration tables, Change business processes, Change application code ERP databases:  Triggers- computer program stores within a database to keep database consistent when certain conditions are present  Stored procedures- program stored in the database that’s used to enforce business rules Process blueprints- comprehensive sets of inherent processes for all org activities Two categories of ERP training: 1) How to implement ERP solution 2) How to use the ERP app software Train the Trainer- training sessions which vendors train the orgs employees to become in house trainers As-is Process Model- model the represents current situation and processes List of key ERP vendors: 1) SAP- 25% 2) Oracle- 13% 3) Epicor- 6% 4) Infor- 6% 5) Microsoft- 5% Two future aspects of ERP applications – The Cloud and mobile systems Chapter Extension 10 – Supply Chain Management Examples of inter-enterprise systems – credit card transaction processing, Automated Clearing House, supply chain Automated Clearing House (ACH) - network of info systems that provides for the interbank clearing of electronic payments  “chain” implies that each org is connected to just one company up/down the chain Supply Chain- network of orgs and facilities that transforms materials (raw) into products that are delivered to customers Four drivers of Supply Chain performance: 1) Facilities- location, size, and operations methodology 2) Inventory- size, inventory management 3) Transportation- in house/outsourced, mode, routing 4) Information- purpose, availability, and means Three factors of Supply Chain information: 1) Purpose 2) Availability 3) Means Supply Chain profitability- difference between the sum of the revenue generated by the supply chain and the sum of all orgs in the supply chain  Supply chain profitability is not necessarily maximized when each individual organization in a supply chain maximizes their own profitability Bullwhip Effect- variability in the size and timing of the orders increases at each stage of the supply chain Supply Chain speed- dollar value of goods exchanged in a given period of time Benefits of Supply Chain Information Systems: 1) Reduce costs of buying & selling 2) Increase speed of supply chain 3) Reduce size and costs of inventories 4) Improved delivery scheduling a. Enables JIT 5) Fixes bullwhip effect 6) Don’t optimize supply chain profitability E-Commerce Special Topic E-Commerce- any business that incorporates the transfer of info across the internet Web 2.0- dynamic system that uses user generated info/content Enterprise 2.0- use of emergent social software platforms within or between companies and their customers/ partners Merchant and Non-merchant companies B2B (Business to business) – relationship of businesses that generate new retail leads B2C (Business to consumer) - relationship of businesses market to their products to end users B2G Auctions, Clearinghouses and Electronic Exchanges Disintermediation Price Elasticity, and how E-commerce applications measure it Channel and Price Conflict Expenses increased by using E-commerce applications – logistics and customer service Comparison of Web 2.0 processing and Traditional processing (Figure 8-5 in the Supplemental Reading) User-generated Content and Crowdsourcing Mashups Adwords and Adsense Chapter 8 – Social Media Information Systems Social Media- use of info technology to support sharing of content between a networks of users Social Media Information Systems- info system that supports sharing of content amongst networks of users Social Networks- network of interactions social relationships amongst people who share common interests 3 SMIS Roles: 1) Social Media Providers- companies that enable social networks a. Ex: Facebook, Twitter, LinkedIn, and Google 2) Users- individuals and orgs that use social media site to create social relationships 3) Communities- group of people who share a similar interest or relationship Viral Hooks- causes people to share an ad, link, file, etc. with other people over the internet Content Data- data/responses to data that’s contributed by users Connection Data- data about relationships How Social Media contributes to the five primary value chain activities: 1) Sales & Marketing- a. Outward to prospects, peer to peer sales, loss of credibility and bad PR 2) Customer Service- a. Outward to customers, peer to peer support, loss of control 3) Inbound logistics a. Upstream supply chain providers, problem solving, risk of privacy 4) Outbound logistics a. Downstream supply chain shippers, problem solving, risk of privacy 5) Manufacturing & Operations a. Outward of user design, inward to operations/manufacturing, user guided design, operational efficiencies, risk of efficiency/effectiveness 6) Human Resources a. Employee candidates/communications, employee prospecting, risk of error and loss of credibility Social CRM- social network elements and gives customers more power/control in the customer/vendor relationship Capital- investment of resources of resources for future profit Human Capital- investment of human knowledge/skills for future profit Social Capital- investment in social relations with the expectations of return in the marketplace The three components of the value of Social Capital: 1) Number of relationships in a social network 2) The strength of those relationships 3) Resources controlled by those related Nan Lin said 4 ways to benefit from social capital: 1) Information 2) Influence 3) Social credentials 4) Personal reinforcement Revenue models for Social Media – advertising, Freemium, sale of apps and virtual goods, affiliate commissions and donations – the concept of “use increases value” Pay-per-click- advertisers’ show ads to potential customers for free and are paid when customers click it Conversion rates- frequency of when someone clicks on an ad and makes a purchase, likes a site, or any other action Impact of smaller screen size for mobile devices vs. PC’s on social media revenue Intel’s pillars of Social Media Policy: 1) Disclose a. Be transparent, be truthful, be yourself 2) Protect a. Don’t tell secrets, slam the competition or overshare 3) Use Common Sense a. Add value, keep it cool, and admit mistakes Four problems from external users of an organization’s social media site- 1) Junk and crackpot contributions 2) Inappropriate content 3) Unfavorable reviews 4) Mutinous movements 3 possible responses: 1) Leave it 2) Respond to it 3) Delete it List of risks from internal users of social media: 1) Ability of orgs to secure their info resources 2) Leaked info about property of the company 3) Increased corporate liability Chapter Extension 11 – Enterprise Social Networks and Knowledge Management List of six steps for developing Social Media Information Systems: 1) Define your goals 2) Identify success metrics 3) Identify target audience 4) Define your value 5) Make personal connections 6) Gather and analyze data Success metrics or Key Performance Indicators (KPI) - measures that tell whether you’ve achieved a specific goal Enterprise Social Network (ESN) – platform that uses media to facilitate work of people within an org Enterprise 2.0- use of social software platforms within/ between companies and their partners/customers SLATES acronym:  Search  Links  Authoring  Tags  Extensions  Signals Folksonomy- content structure that emerges from activities and processing of many user tags Knowledge Management- process of creating value from capital and sharing that knowledge with people who need it 2 fundamental ways in which it benefits organizations: 1) Improves process quality 2) Increases team strength Expert Systems- rule based systems that encode human knowledge If/Then Rules- if a particular condition exists then a specific action should be taken  Used for expert systems and decisions Three disadvantages of Expert Systems: 1) Difficult and expensive to develop 2) Expert systems are difficult to maintain 3) Expert systems are unable to live up to high expectations set by their name Content Management Systems- info system that supports the management and delivery of documents and other forms of employee knowledge Challenges of organizational Content Management Systems: 1) Content databases are huge 2) CMS content is dynamic 3) Documents don’t exist in isolations from each other 4) Contents are perishable 5) Multinational companies Three alternatives for Content Management applications: 1) In house customs apps 2) Off the shelf apps 3) Public search engines Chapter 9 – Business Intelligence Systems Business Intelligence- process of using operational and other data to create info that exposes patterns of importance to the org Business Intelligence (BI) Systems- info systems that process operational and other data to analyze past performance and to make predictions Business Intelligence (BI) applications- software component of a BI system Four collaborative tasks that use Business Intelligence: 1) Project management 2) Problem solving 3) Deciding 4) Informing Three typical uses for Business Intelligence: 1) Identifying changes in purchasing patterns 2) Business intelligence for entertainment 3) Predictive policing Three primary activities in the Business Intelligence process: 1) Acquire data- obtain, cleanse, organize/relate, and catalog 2) Perform analysis- reporting, data mining, and BigData 3) Publish results- print, webservers, report servers, and automation Push publishing- delivers business intelligence to users without any request from the users Pull publishing- requires user to request BI results Data Warehouse- facility for managing on org’s BI data Types of data used in Data Warehouses: 1) Social data 2) Purchased data 3) Data warehouse metadata 4) Data warehouse database Problems with operational data: 1) Dirty data 2) Missing values 3) Inconsistent data 4) Data not integrated 5) Wrong granularity- too fine or not fine enough 6) Too much data- too many attributes or too many data points Data Mart- data collection that addresses the needs of a particular department/area of the business Three types of Business Intelligence analysis: 1) Reporting 2) Data mining 3) BigData Reporting Analysis- process of sorting, grouping, etc. data Structured Data- data in the form of rows and columns  Tables in a relational database Exception Reports- produced when something out of the predefined bounds occurs Data Mining- app of statistical techniques to find relationships/patterns amongst data Unsupervised Data Mining- analysts don’t create model/hypothesis prior to running the analysis Supervised Data Mining-miners create a model prior to the analysis and apply techniques to data to estimate parameters of the model Cluster Analysis- statistical techniques are used to identify groups of entities that have similar characteristics Regression Analysis- estimates the values of parameters in a linear equation BigData- describes the data collections that are characterized by huge volumes and great variety MapReduce- technique for harnessing the power of thousands of computers working in parallel Hadoop- open source program supported by the apache foundation that manages 1000’s of computers that implement MapReduce Four possible BI publishing alternatives: 1) Email/Collaboration tool a. Static, manual, low 2) Web Server a. Static dynamic, alert/RSS, low for static, high for dynamic 3) SharePoint a. Static dynamic, alert/RSS, low for static, high for dynamic 4) BI server a. Dynamic, alert/RSS subscription, high skill level Static Reports- intelligence documents that are fixed at the time of creation and don’t change Dynamic Reports- intelligence documents that are updated at the time of request User Subscriptions- requests for specific business intelligence results on a stated schedule/ in response to specific events BI Server- web server app; purpose for publishing of business intelligence Two major functions of BI Servers: 1) Management 2) Delivery Data Broker or Aggregator- acquires/purchases consumer and other data from public records and other sources to create business intelligence Chapter Extension 12 – Database Marketing Database Marketing- apps of business intelligence systems to the planning, execution, and assessment of marketing programs RFM Analysis- way of analyzing and ranking customers according to their purchasing patterns Market-Basket Analysis- data mining technique for finding sales patterns  That fact that customers that buy product A also by product B develops a cross selling opportunity Support- activities that contribute indirectly to value creation Confidence- probability estimate that 2 items will be bough together Lift- ratio of confidence to the base probability of buying an item Decision Tree- hierarchal placement of criteria that predicts a classification/value Unsupervised data mining technique Chapter Extension 13 – Reporting Systems and OLAP Reporting System- info system that enables people to create info by processing data from sources and delivering info to the correct users on a timely manner Four fundamental operations for Reporting Systems: 1) Filtering data 2) Sorting data 3) Grouping data 4) Making simple calculations on the data Report Type: 1) Static- paper and PDF file, push mode a. Prepared once from underlying data & don’t change 2) Dynamic- computer via app, pull mode a. Documents that are updated at the time of request 3) Query- website 4) Online analytical processing (OLAP) - digital dashboard, web service, etc. Query Reports- in response to data entered by users Three functions of Reporting Systems – Authoring, Management, and Delivery OLAP- reporting technology that provides ability to calculate and perform arithmetic operations on data Measure- data item of interest Dimension- characteristic of a measure OLAP Cube- OLAP measure with associated dimensions Two characteristics of OLAP Reports – Dynamic format and drill down capability OLAP servers- servers running software that performs OLAP analysis Dimensional Databases- structured to support OLAP processing


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