Chapter 1 & 2: Management Information Systems - Business Driven MIS/Decisions and Processes Flashcards
What is the first-mover advantage?
When a company can significantly increase its market share by being first with a new competitive advantage.
What is competitive intelligence?
Process of gathering info about the competitive environment to improve a company’s ability to succeed.
What is the 5 forces model?
Porter’s 5 forces model analyzes competitive forces to access potential for profitability in an industry.
The 5 forces are…
1. Buyer power
2. Supplier power
3. Threat of substitute products or services
4. Threat of new entrants
5. Rivalry among existing competitors
What are the 3 generic strategies managers can use to develop competitive advantages?
- Broad cost leadership
- Broad differentiation
- Focused strategy
In which 2 categories does a value chain analysis group a firm’s activities?
Primary value activities and support value activities.
What are primary value activities (value chain analysis)? 5
- Inbound logistics
- Operations
- Outbound logistics
- Marketing and sales
- Service
What are support value activities (value chain analysis)? 4
- Firm infrastructure
- HR mgmt
- Technology development
- Procurement
What are the 6 steps in the decision-making process?
- Problem identification
- Data collection
- Solution generation
- Solution test
- Solution selection
- Solution implementation
How structured are decisions at different levels of management?
Operational level decisions are structured decisions.
Managerial level decisions are semistructured decisions.
Strategic level decisions are unstructured decisions.
What are CSFs and KPIs and which are more specific?
Critical Success Factors - crucial steps companies perform to achieve their goals and objectives and implement strategies.
KPIs are used to evaluate progress toward CSFs
KPIs are more specific than KPIs
What is a common internal KPI?
ROI - earning power of a project
How many KPIs should a company use?
Only a few, 3-5
What is the difference between efficiency and effectiveness MIS metrics?
Efficiency metrics measure the performance of the MIS itself. Focuses on the extend to which a firm is using its resources in an optimal way.
Effectiveness metrics measure the impact MIS has on business processes and activities. Focuses on how well a firm is achieving its goals and objectives.
List (5) efficiency metrics?
- Throughput
- Transaction speed
- System availability
- Information accuracy
- Response time
List (4) effectiveness metrics?
- Usability
- Customer satisfaction
- Conversion rates
- Financial
What is benchmarking?
Process of continuously measuring system results and comparing results to optimal system performance.
What type of MIS system is used for operational, structured decision making?
Transaction processing system
What type of MIS system is used for managerial, semi-structured decision making?
Decision support system
What type of MIS system is used for strategic, unstructured decision making?
Executive information system
What is a Transaction Processing System (TPS)?
Basic business system that serves the operational level (analysts) and assists in making structured decisions. Inputs are source documents.
What is OLTP?
Online Transaction Processing. Operational MIS system that captures transactions and event info using technology to process the info according to defined business roles and stores and updates information.
What is OLAP?
Online Analytical processing is a managerial MIS system that manipulates info to create business intelligence in support of strategic decision making.
What are DSSs?
Decision support systems help make managerial decisions to model info using OLAP which provides assistance in evaluating and choosing among different courses of action.
What are the (4) common DSS analysis techniques?
- What-if analysis
- Sensitivity analysis
- Goal-seeking analysis
- Optimization analysis
What is EIS?
Executive information system, a specialized DSS that supports senior-level execs and unstructured, long-term, nonroutine decisions.
What is granularity?
Level of detail in the model or decision-making process. Moving up the organizational pyramid, managers deal with less details.
What are the 4 areas of AI primary overview?
- Natural language processing
- Natural language understanding
- Knowledge representation
- Knowledge planning
What are expert systems?
Computerized advisory programs that imitate the reasoning processes of experts in solving difficult problems.
What is a genetic algorithm?
AI system that mimics evolutionary through survival-of-the-fittest process to generate increasingly better solutions to a problem.
What is overfitting and underfitting?
Overfitting - when a machine learning model matches training data so closely that the model fails to make predictions on new data.
Underfitting - when a machine learning model matches has poor predictive abilities because it did not learn the complexity in the training data.
What are the 4 types of bias in machine learning?
- Sample bias
- Prejudice bias
- Measurement bias
- Variance bias