Chapter 3: Information systems and data analytics Flashcards
What is strategic planning
Top of the organisation
Future courses of action
Long-term forecasts
Uses several varieties of models
Summarised data/ external sources
What is management control
Mid tier
effective use of resources to achieve targets set at strategic planning
Budgets/ productivity/ labour stats/ capacity utilisation
What is operational control
bottom tier
day-to-day implementation of plans of organisation
Short term transactional data
detailed data/ internal/ frequent
What are the 3 levels of management
1) Strategic
2) Management
3) Operational
What is competent
Sufficiency in expertise to make a decision
What is an executive information system (EIS)
Gives senior execs access to internal & external info
Summarised info to drill down
Strategic planning/ trends
Easy to model - make summarised reports
What are management information systems
Converts data to useful info in an appropriate form for managers at all levels
Management control- planning/ directing/ controlling activities
enable timely/ effective decisions
What are transaction processing systems (TPS)
Historic info- low level
routine business transactions (ST)
done in large volumes
Operational control
Specific inputs & outputs
MUST BE CORRECT- informs all decisions
Basic decisions
What are transaction processing systems (TPS)
routine business transactions
done in large volumes
Operational control
What is strategic information
used by directors / senior execs
Alternative courses of action
plan overall objectives
E.g profitability & prospects for presents and future markets
Uses MIS & EIS
What is tactical information
Used by managers at all levels
Normally middle management
Pricing/ purchasing/ distribution
Sales analysis/ stock levels/ productivity measures
Exception reporting
uses MIS
What is operational information
Foremen/ section heads
Routine tasks
Listings of debtors/ creditors
Payroll details
Raw materials/ usage
When are TPS used?
Sales/ Marketing systems- record transactions
Manufacturing production systems- details of purchases, production & shipping of goods
Finance & accounting systems- maintaining financial data, purchase & sales ledger & payroll
When are TPS used?
Sales/ Marketing systems- record transactions
Manufacturing production systems- details of purchases, production & shipping of goods
Finance & accounting systems- maintaining financial data, purchase & sales ledger & payroll
What do MIS show?
1) Collate info from individual transactions - helps control the business
2) Customer purchases are summarised into reports to identify the products& customers w/ most revenue
3) Level of repeat business- indicates customer satisfaction
4) Management accounts -shows margins for products and customers- sets rewards
What are features of management Information systems (MIS)
1) support structured decision making at all levels
2) Online access to TPS- summary info
3) Internal focus
4) detailed info if needed
5) simple summary reports & comparisons
What are 4 types of MIS?
1) database system- process & store info which is the org’s memory
2) Direct control systems - monitor & report on activities
3) Enquiry systems - based on databases, specific info e.g performance of department or employee
4) Support systems - provide computer based methods 7 procedures for conducting analyses, forecasts & simulations
What are Enterprise Resource Planning systems (ERPS)?
integrates data from all operations within the organisation into one system
everyone works off the same system for decision making
e.g SAP & Oracle
What do ERPS offer?
Real time info
Standardisation of data
Common data files reducing duplication
Provide packages for functions
Installed on Database Management Systems
What can ERPs be used for?
Supply chain management
Activity based costing
Balanced scorecard performance reporting
What are customer relationship management systems (CRMS)?
Build/ sustain LT business with customers
The processes a company uses to track/ organise its contacts with current & prospective customers (supports these processes)
Enter and store customer info
What are the 5 stages of customer relationship management development processes
1) Selection
2) Acquisition
3) Retention
4) Extension
5) After- sales service
What is phase 1 -selection
Segmentation, Targeting & Positioning process
Market research to target correct customers
What is phase 2- Acquisition
Minimise costs of this
But this has the lasting customer impression
What is phase 3 - retention
Additional sales from customers w/ a relationship to business
KEY- Costs more to get new customers than retain
Indepth understanding of customer needs - products / services tailored to them
Loyalty schemes used (lock-in strategy) –> informed by data information systems
What happens if you can’t retain a customer?
It’s an opportunity cost lost
Haven’t brought in new custom
What is phase 4- extension
Additional sales can come from reselling the same product, cross-selling or up-selling
re-selling= e.g renewal of motor insurance
cross-selling= sold them motor now sell travel
up-selling= upgrading their policy
What are the 2 phases of the customer life cycle
Retention & extension
What is phase 5- after sales service?
Using tech to provide answers to FAQ, handle complaints
Newletters, offers, targeted emails
What is big data?
Large volumes of data beyond normal processing, storage, analysis & capacity of typical databases
e.g Petabytes & exabytes
Can be structured or unstructured
What is structured data?
Contained within a field in a data record/ file (databases/ spreadsheets/ data warehouses)
What is a data warehouse
Store of consolidated data from multiple sources, archived & ordered
Products inside containers on shelves in rows like in a normal warehouse
What is unstructured data?
not easily contained within data fields e.g pictures/ videos/ webpages/ emails
Stored in data lakes
What is a data lake?
data in its rawest form
What are the challenges of big data
identifying patterns in unstructured data ( a lot of which is text format)
Benefits of big data
Greater competitive advantage
Improved productivity
increasing innovation- decreasing time to answer questions & make decisions
What are the 5 Vs
Velocity
Volume
Variety
Veracity
Value
What’s velocity
Timely- understands changing needs
Constant rate of data that servers can’t cope with the flow
What is volume
comes from many sources and data generation increases volumes to a potentially unmanageable level
What is variety
Traditionally- consistent format e.g spreadsheets/ standard databases
Now- wide range of formats e.g text/ audio/ images
Approx 80% is unstructured
Big data can sort them into relationships
What is veracity
Trends in data
work with different types of data e.g colloquial language/ hashtags etc
Increases accuracy
What is value
added value for companies
Generating business value from their investments
What is big data used for
traffic flow monitoring/ streamed audio/ web page content/ Gov docs/ GPS tracking
What are the 3 risks of big data?
1) Availability of skills- combine analysis skills with industry
2) security of data- if not manage greater risk of loss
3) data protection- orgs collect a greater range of data (personal)
What is big data management?
Storage, admin & control of vast quantities of structured & unstructured data
What is the aim of big data management?
stored data is high quality and accessible
What is effective big data management
Process & analyse large sets of data from a variety of relatively new sources e.g social media
What is big data analytics
scrutinises big data to identify patterns & insights
Impacts the future profitability
What are big data sources
May need more advanced software than data warehouses e.g Hadoop
Hadoop= open source programming framework to process large data from data to info using multiple servers
What is the big data pyramid
Relationship between data, info, knowledge & wisdom
Sequence of efforts
Model representing structural & functional relationships
What is data
Know nothing
Raw & unmeaningful
Needs context to give info
Information management
What is information
Know what
Needs meaning to give knowledge
Information management
What is knowledge
Know how
Needs insight to give wisdom
Knowledge management
What the business can learn from
What is wisdom
Know why
Knowledge management
Insight to make relevant business decisions
What is information management?
Collect, process, disseminate, store, display & protect
What is knowledge management
Create, organise, apply, transfer
What is data mining
Identifying trends & patterns in large sets of data
Turns raw data to useful info
Stats, machine learning & databases
What is predictive analytics
valuable insights based on past data to assume forward behaviour
uses stat models from past raw data
What is scepticism
There are limitations of analytics
Predictions only based on reasonable probabilities & assumptions
