Chapter 1: Management Information Systems Flashcards
Information Technology
Refers to computer and telecommunications technologies that helps to produce, manipulate, store, communicate, and disseminate information
Information Systems
Formal, sociotechnical, organizational systems designed to collect, process, store, and distribute information
Sociotechnical Theory
Questions the overly optimistic predictions about the potential benefits of new technology
Process
A series of steps necessary to complete a business activity
Organizational Impacts of Information Technology
Automation, information, innovation,
Automation
Computerization of manual work, increases speed of the organization, easy to understand and deploy, and requires little business executive sponsorship or involvement
Information
Helps an organization take advantage of available market opportunities, increases and organization’s overall effectiveness, requires more business executive support and involvement
Innovation
Revamps the existing way of doing business, creates quantum leap business improvements, and requires significant business executive support and involvement
Fact
The confirmation or validation of an event or object
Information Age
The present time during which infinite quantities of facts are widely available to anyone who can use a computer
Data
Raw facts that describe the characteristics of an event or object
Information
Data converted into a meaningful and useful context
Business Intelligence
Information collected from multiple sources such as suppliers, customers, competitors, partners, and industries that analyzes patterns and trends for strategic decision making
Knowledge
Skills, experience, and expertise coupled with information and intelligence that creates a person’s intellectual resources
Knowledge Worker
Individual valued for their ability to interpret and analyze information
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
Management Information Systems
A business function which moves information about people, products, and processes across the company to facilitate decision making and problem solving
Chief Information Officer
Oversees all uses of IT and ensures the strategic alignment of IT with business goals and objectives
Chief Knowledge Officer
Responsible for collecting, maintaining, and distributing the organization’s knowledge
Chief Privacy Officer
Responsible for ensuring the ethical and legal use of information
Chief Security Officer
Responsible for ensuring the security of IT systems
Chief Technology Officer
Responsible for ensuring the throughput, speed, accuracy, availability, and reliability of IT
Difficulties and Complexities of Management Information Resources
Information systems has an enormous strategic value to organizations, are very expensive to acquire, operate, and maintain, and evolution of the MIS function within the organization
Traditional Functions of MIS
Managing systems development and systems project management, managing computer operations, developing IS skills, providing technical services, and infrastructure planning
New Functions of MIS
Initiating and designing specific strategic IS, incorporating the Internet into the business, managing outsourcing, and creating business alliances with business partners
Governance of IT
Collaborative effort between IS, the business and their constituencies and big picture planning
Role of Information Systems
System integration and infrastructure development, development and management of relationships with external service providers, and outsourcing strategic alliances
Business Strategy
A leadership plan that achieves a specific set of goals or objectives
Competitive Advantage
A product or service that an organization’s customers place a greater value on than similar offerings from a competitor
First Mover Advantage
Occurs when an organization can significantly impact its market share by being first to market with a competitive advantage
SWOT Analysis
Evaluates an organization’s strengths, weaknesses, opportunities, and threats to identify significant influences that work for or against business strategies
Porters Five Forces Model
Buyer power, supplier power, threat of new entrants, threat of substitutes, and rivalry among existing competitors
Buyer Power
The ability of buyers to affect the price of an item
Switching Cost
Manipulating costs that make customers reluctant to switch to another product
Loyalty Program
Rewards customers based on the amount of business they do with a particular organization
Supplier Power
The suppliers ability to influence the prices they charge for supplies
Supply Chain
Consists of all parties involved in the procurement of a product or raw material
Threat of Substitute Products or Services
High when there are many alternatives to a product or service and low when there are few alternatives
Threat of New Entrants
High when it is easy for new competitors to enter a market and low when there are significant entry barriers
Entry Barrier
A 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
High when competition is fierce in a market and low when competitors are more complacent
Product Differentiation
Occurs when a company develops unique differences in its products or services with the intent to influence demand
Business Process
A standardized set of activities that accomplish a specific task, such as a specific process
Value Chain Analysis
Views a firm as a series of business processes that each add value to the product or service
Inbound Logistics
Acquires raw materials and resources, and distributes them
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
Firm Infrastructure
Includes the company format or departmental structures, environment, and systems
Human Resource Management
Provide 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
