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Business Information Systems > Ch1: Introduction to Information Systems > Flashcards

Ch1: Introduction to Information Systems Flashcards

1
Q

Process of Transforming Data into Information

A

Transformation Process - apply knowledge by selcting, organizing and manipulae data

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2
Q

Data

A

Faw facts

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3
Q

Information

A

A collection of facts organized in such a way that they have additional value beyond the value of the individual facts.

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4
Q

Process

A

A set of logically related tasks performed to achieve a defined outcome.

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5
Q

Knowledge

A

The awareness and understanding of a set of information and ways that information can be made useful to support a specific task or reach a decision.

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6
Q

Characteristics of Valuable Information

A
  • accessible
  • accurate
  • complete
  • economical
  • flexible
  • relevant
  • reliable
  • secure (from access by unauthorized users)
  • simple (easy to understand)
  • timely
  • verifiable (information is correct when checked against many sources)
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7
Q

Components of an Information System (IS)

A

An information system (IS) is a set of interrelated elements or components that collect (input), manipulate (process), store, and disseminate (output) data and information, and provide a corrective reaction (feedback mechanism) to meet an objective.

It is the feedback mechanism that helps organizations achieve their goals, such as increasing profits or improving customer services.

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8
Q

Input

A

The activity of gathering and capturing raw data.

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9
Q

Processing

A

Converting or transforming data into useful outputs.

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10
Q

Output

A

Production of useful information, usually in the form of documents and reports.

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11
Q

Feedback

A

Output that is used to make changes to input or processing activities.

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12
Q

Computer-Based Information Systems (CBIS)

A

A computer-based information system (CBIS) is a single set of hardware, software, databases, telecommunications, people, and procedures that are configured to collect, manipulate, store, and process data into information.

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13
Q

Information technology (IT)

A

Information technology (IT) refers to hardware, software, databases, and telecommunications.

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14
Q

Technology Infrastructure

A

A business’s technology infrastructure includes all the hardware, software, databases, telecommunications, people, and procedures that are configured to collect, manipulate, store, and process data into information.

The technology infrastructure is a set of shared IS resources that form the foundation of each computer-based information system.

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15
Q

Components of a Computer-Based Information System (CBIS)

A
  • Hardware
  • Software
  • Database
  • Telecommunications, Networks and Internet
  • People
  • Procedures
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16
Q

Hardware

A

Computer equipment used to perform input, processing, and output activities.

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17
Q

Software

A

The computer programs that govern the operation of the computer.

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18
Q

Database

A

An organized collection of facts and information.

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19
Q

Telecommunications

A

The electronic transmission of signals for communications, which enables organizations to carry out their processes and tasks through effective computer networks.

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20
Q

Networks

A

Computers and equipment that are connected in a building, around the country, or around the world to enable electronic communications.

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21
Q

Internet

A

The world’s largest computer network, consisting of thousands of interconnected networks, all freely exchanging information.

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22
Q

People

A

People can be the most important element in most computer-based information systems. They make the difference between success and failure for most organizations.

Information systems personnel include all the people who manage, run, program, and maintain the system.

Users are people who work with information systems to get results.

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23
Q

Procedures

A

The strategies, policies, methods, and rules for using a CBIS.

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24
Q

Types of IS used in Business Organizations

A

The most common types of information systems used in business organizations are those designed for:

  1. electronic and mobile commerce
  2. transaction processing
  3. management information, and
  4. decision support
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25
Q

e-commerce

A

Any business transaction executed electronically between

  • companies (B2B)
  • companies and consumers (B2C)
  • consumers and other consumers (C2C)
  • business and the public sector, and
  • consumers and the public sector
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26
Q

mobile commerce (m-commerce)

A

Transactions conducted anywhere, anytime.

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27
Q

electronic business (e-business)

A

Using information systems and the Internet to perform all business- related tasks and functions.

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28
Q

Transaction

A

Any business-related exchange, such as payments to employees, sales to customers, and payments to suppliers.

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29
Q

Transaction Processing System (TPS)

A

An organized collection of people, procedures, software, databases, and devices used to record completed business transactions.

30
Q

Enterprise Resource Planning (ERP) System

A

A set of integrated programs capa- ble of managing a company’s vital business operations for an entire multisite, global organization.

31
Q

Knowledge Management Systems (KMSs)

A

An organized collection of people, procedures, software, databases, and devices to create, store, share, and use the organization’s knowledge and experience

32
Q

Artificial Intelligence (AI)

A

A field in which the computer system takes on the characteristics of human intelligence.

33
Q

Major Elements of AI

A
34
Q

Expert System

A

A system that gives a computer the ability to make suggestions and function like an expert in a particu- lar field.

35
Q

Virtual Reality

A

The simulation of a real or imagined environment that can be experienced visually in three dimensions.

36
Q

Systems Development

A

The activity of creating or modifying business systems.

37
Q

Reasons for systems development failures

A
  1. poor planning and scheduling,
  2. insufficient management of risk,
  3. poor requirements determination, and
  4. lack of user involvement
38
Q

Outsourcing for Systems Development

A

Allows a company to focus on what it does best and delegate other functions to companies with expertise in systems development.

39
Q

Overview of Systems Development

A
  1. The goal of the systems investigation is to gain a clear understanding of the problem to be solved or opportunity to be addressed.
  2. Systems analysis defines the problems and opportunities of the existing system.
  3. Systems design determines how the new system will work to meet the business needs defined during systems analysis.
  4. Systems implementation involves creating or acquiring the various system components (hardware, software, databases, etc.) defined in the design step, assembling them, and putting the new system into operation.
  5. The purpose of systems maintenance and review is to check and modify the system so that it continues to meet changing business needs.
40
Q

Global Challenges in Information Systems

A
  1. Cultural challenges
  2. Language challenges
  3. Time and distance challenges
  4. Infratructure challenges
  5. Currency challenges
  6. Product and service chalenges
  7. Technology tranfer issues
  8. State, regional and national laws
  9. Trade agreements
41
Q

Cultural Challenges

A

Countries and regional areas have their own cultures and customs that can significantly affect individuals and organizations involved in global trade.

42
Q

Language Challenges

A

Language differences can make it difficult to translate exact meanings from one language to another.

43
Q

Time and Distance Challenges

A

Time and distance issues can be difficult to overcome for individuals and organizations involved with global trade in remote locations.

Large time differences make it difficult to talk to people on the other side of the world. With long distance, it can take days to get a product, a critical part, or a piece of equipment from one location to another location.

44
Q

Infrastructure Challenges

A

High-quality electricity and water might not be available in certain parts of the world. Telephone services, Internet connections, and skilled employees might be expensive or not readily available.

45
Q

Currency Challenges

A

The value of different currencies can vary significantly over time, making international trade more difficult and complex.

46
Q

Product and Service Challenges

A

Traditional products that are physical or tangible, such as an automobile or bicycle, can be difficult to deliver to the global market.

However, electronic products (e-products) and electronic services (e-services) can be delivered to customers electronically, over the phone, through networks, through the Internet, or by other electronic means. Software, music, books, manuals, and advice can all be delivered globally and over the Internet.

47
Q

Technology Transfer Issues

A

Most governments don’t allow certain military-related equipment and systems to be sold to some countries. Even so, some believe that foreign companies are stealing intellectual property, trade secrets, and copyrighted materials, and counterfeiting products and services.

48
Q

State, Regional, and National Laws

A

Each state, region, and country has a set of laws that must be obeyed by citizens and organizations operating in the country. These laws can deal with a variety of issues, including trade secrets, patents, copyrights, protection of personal or financial data, privacy, and much more. Laws restricting how data enters or exits a country are often called transborder data-flow laws.

Keeping track of these laws and incorporating them into the procedures and computer systems of multinational and transnational organizations can be very difficult and time consuming, requiring expert legal advice.

49
Q

Trade Agreements

A

Countries often enter into trade agreements with each other. The North American Free Trade Agreement (NAFTA) and the Central American Free Trade Agreement (CAFTA) are examples. The European Union (EU) is another example of a group of countries with an international trade agreement.67 The EU is a collection of mostly European countries that have joined together for peace and prosperity. Additional trade agreements include the Australia-United States Free Trade Agreement (AUSFTA), signed into law in 2005, and the Korean-United States Free Trade Agreement (KORUS-FTA), signed into law in 2007.68 Free trade agreements have been established between Bolivia and Mexico, Canada and Costa Rica, Canada and Israel, Chile and Korea, Mexico and Japan, the United States and Jordan, and many others.69

50
Q

Organization

A
  • A formal collection of people and other resources established to accomplish a set of goals.
  • An organization is a system, which means that it has inputs, processing mechanisms, outputs, and feedback.
51
Q

General Model of an Organization

A

Information systems support and work within all parts of an organizational process. Although not shown in this simple model, input to the process subsystem can come from internal and external sources. Just prior to entering the subsystem, data is external. After it enters the subsystem, it becomes internal. Likewise, goods and services can be output to either internal or external systems. (Chapter 2, pg45)

52
Q

Value Chain

A

A series (chain) of activities that includes inbound logistics, warehouse and storage, production, finished product storage, outbound logistics, marketing and sales, and customer service.

You investigate each activity in the chain to determine how to increase the value perceived by a customer. Depending on the customer, value might mean lower price, better service, higher quality, or uniqueness of product. The value comes from the skill, knowledge, time, and energy that the company invests in the product or activity.

The value chain is just as important to companies that don’t manufacture products, such as tax preparers, legal firms, and other service providers. By adding a significant amount of value to their products and services, companies ensure success.

Combining a value chain with just-in-time (JIT) inventory means companies can deliver materials or parts when they are needed.

Managing the supply chain and customer relationships are two key elements of managing the value chain.

53
Q

The Value Chain of a Manufacturing Company

A

Managing raw materials, inbound logistics, and warehouse and storage facilities is called upstream management. Managing finished product storage, outbound logistics, marketing and sales, and customer service is called downstream management. (Chapter 2, pg46)

54
Q

Supply Chain Management (SCM)

A

SCM helps determine what supplies are required for the value chain, what quantities are needed to meet customer demand, how the supplies should be processed (manufactured) into finished goods and services, and how the shipment of supplies and products to customers should be scheduled, monitored, and controlled.

55
Q

Customer Relationship Management (CRM)

A

CRM programs help a company manage all aspects of customer encounters, including marketing and advertising, sales, customer service after the sale, and programs to retain loyal customers.

CRM can help a company collect customer data, contact customers, educate them about new products, and actively sell products to existing and new customers.

Often, CRM software uses a variety of information sources, including sales from retail stores, surveys, e-mail, and Internet browsing habits, to compile comprehensive customer profiles.

CRM systems can also get customer feedback to help design new products and services.

56
Q

Competitive Advantage

A

A competitive advantage is a significant and (ideally) long-term benefit to a company over its competition, and can result in higher-quality products, better customer service, and lower costs.

An organization often uses its information system to help achieve a competitive advantage.

57
Q

Five-Forces Model

A

A widely accepted model that identifies five key factors that can lead to attainment of competitive advantage, including

  1. the rivalry among existing competitors,
  2. the threat of new entrants,
  3. the threat of substitute products and services,
  4. the bargaining power of buyers, and
  5. the bargaining power of suppliers
58
Q

Rivalry Among Existing Competitors

A

Typically, highly competitive industries are characterized by high fixed costs of entering or leaving the industry, low degrees of product differentiation, and many competitors. Although all firms are rivals with their competitors, industries with stronger rivalries tend to have more firms seeking competitive advantage. To gain an advantage over competitors, companies constantly analyze how they use their resources and assets. This resource-based view is an approach to acquiring and controlling assets or resources that can help the company achieve a competitive advantage.

For example, a transportation company might decide to invest in radio-frequency technology to tag and trace products as they move from one location to another.

59
Q

Threat of New Entrants

A

A threat appears when entry and exit costs to an industry are low and the technology needed to start and maintain a business is commonly available.

For example, a small restaurant is threatened by new competitors. Owners of small restaurants do not require millions of dollars to start the business, food costs do not decline substantially for large volumes, and food processing and preparation equipment is easily available. When the threat of new market entrants is high, the desire to seek and maintain competitive advantage to dissuade new entrants is also usually high.

60
Q

Threat of Substitute Products and Services

A

Companies that offer one type of goods or services are threatened by other companies that offer similar goods or services. The more consumers can obtain similar products and services that satisfy their needs, the more likely firms are to try to establish competitive advantage.

For example, consider the photographic industry. When digital cameras became popular, traditional film companies had to respond to stay competitive and profitable. Traditional film companies, such as Kodak and others, started to offer additional products and enhanced services, including digital cameras, the ability to produce digital images from traditional film cameras, and Web sites that could be used to store and view pictures.

61
Q

Bargaining Power of Customers and Suppliers

A

Large customers tend to influence a firm, and this influence can increase significantly if the customers can threaten to switch to rival companies. When customers have a lot of bargaining power, companies increase their competitive advantage to retain their customers.

Similarly, when the bargaining power of suppliers is strong, companies need to improve their competitive advantage to maintain their bargaining position. Suppliers can also help an organization gain a competitive advantage. Some suppliers enter into strategic alliances with firms and eventually act as a part of the company. Suppliers and companies can use telecommunications to link their computers and personnel to react quickly and provide parts or supplies as nec- essary to satisfy customers.

Government agencies are also using strategic alliances. The investigative units of the U.S. Customs and Immigration and Naturalization Service entered into a strategic alliance to streamline investigations.

62
Q

Strategic Planning for Competitive Advantage

A
  1. Cost leadership
  2. Differentiation
  3. Niche strategy
  4. Altering the industry structure
  5. Creating new products and services
  6. Improving existing product lnes and service
  7. Other strategies
63
Q

Cost Leadership

A

Deliver the lowest possible cost for products and services.

Wal-Mart and other discount retailers have used this strategy for years.

Cost leadership is often achieved by reducing the costs of raw materials through aggressive negotiations with suppliers, becoming more efficient with production and manufacturing processes, and reducing warehousing and shipping costs.

Some companies use outsourcing to cut costs when making products or completing services.

64
Q

Differentiation

A

Deliver different products and services.

This strategy can involve producing a variety of products, giving customers more choices, or delivering higher-quality products and services.

Many car companies make different models that use the same basic parts and components, giving customers more options. Other car companies attempt to increase perceived quality and safety to differentiate their products and appeal to consumers who are willing to pay higher prices for these features.

Companies that try to differentiate their products often strive to uncover and eliminate counterfeit products produced and delivered by others. Some believe counterfeit products cost companies about $600 billion annually. To distinguish their products from fakes, microscopic particles or other markers are inserted to allow companies, government regulators, and law enforcement agencies to distinguish genuine products from bogus ones.

65
Q

Niche Strategy

A

Deliver to only a small, niche market.

Porsche, for example, doesn’t produce inexpensive station wagons or large sedans. It makes high-performance sports cars and SUVs. Rolex only makes high-quality, expensive watches. It doesn’t make inexpensive, plastic watches that can be purchased for $20 or less.

66
Q

Altering the Industry Structure

A

Change the industry to become more favorable to the company or organization.

The introduction of low-fare airline carriers, such as Southwest Airlines, has forever changed the airline industry, making it difficult for traditional airlines to make high profit margins. To fight back, airlines such as United launched their own low-fare flights.

Creating strategic alliances can also alter the industry structure. A strategic alliance, also called a strategic partnership, is an agreement between two or more companies that involves the joint production and distribution of goods and services.

67
Q

Creating New Products and Services

A

Introduce new products and services periodically or frequently.

This strategy always helps a firm gain a competitive advantage, especially for the computer industry and other high-tech businesses.

If an organization does not introduce new products and services every few months, the company can quickly stagnate, lose market share, and decline. Companies that stay on top are constantly developing new products and services.

A large U.S. credit-reporting agency, for example, can use its information system to help it explore new products and services in different markets.

68
Q

Improving Existing Product Lines and Services

A

Make real or perceived improvements to existing product lines and services.

Manufacturers of household products are always advertising new and improved products. In some cases, the improvements are more perceived than actual refinements; usually, only minor changes are made to the existing product, such as to reduce the amount of sugar in breakfast cereal.

Some direct-order companies are improving their service by using Radio Frequency Identification (RFID) tags to identify and track the location of their products as they are shipped from one location to another. Customers and managers can instantly locate products as they are shipped from suppliers to the company, to warehouses, and finally to customers.

69
Q

Other Strategies

A
  1. Some companies seek strong growth in sales, hoping that it can increase profits in the long run due to increased sales.
  2. Being the first to market is another competitive strategy. Apple Computer was one of the first companies to offer complete and ready-to-use personal computers.
  3. Some companies offer customized products and services to achieve a competitive advantage. Dell, for example, builds custom PCs for consumers.
  4. Hire the best people is another example of a competitive strategy. The assumption is that the best people will determine the best products and services to deliver to the market and the best approach to deliver these products and services.
  5. Companies can also combine one or more of these strategies. In addition to customization, Dell attempts to offer low-cost computers (cost leadership) and top-notch service (differentiation).
70
Q

Productivity

A

Productivity is a measure of the output achieved divided by the input required.

A higher level of output for a given level of input means greater productivity; a lower level of output for a given level of input means lower productivity.

71
Q

Risk

A

In addition to the return-on-investment measures of a new or modified system, managers must also consider the risks of designing, developing, and implementing these systems.

Information systems can sometimes be costly failures.

The costs of development and implementation can be greater than the returns from the new system.

Business Information Systems (1 decks)

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