CHP.2/CH.P 3 Flashcards
Business process or Business system
A network of activities, resources, facilities, and information that interact to achieve some business function; sometimes called a business system.
Activities
Parts of a business process that transform resources and information of one type into resources and information of another type; can be manual or automated.
Resources
Items of value, such as inventory or funds, that are part of a business process.
Facilities
Structures used within a business process.
Information
(1) Knowledge derived from data, where the term data is defined as recorded facts or figures. (2) Data presented in a meaningful context. (3) Data processed by summing, ordering, averaging, grouping, comparing, or other similar operations. (4) A difference that makes a difference.
Business Process Modelling Notation (BPMN)
A standard set of terms and graphical notations for documenting business processes.
Accurate information
Information that is factual and verifiable.
Information system (IS)
A group of components that interact to produce information.
Timely information
Information that is produced in time for its intended use.
Relevant (information)
Information that is appropriate to both the context and the subject.
Sufficient (information)
Adequate information to perform the task.
Just barely so (information)
Information that meets the purpose for which it is generated, but just barely so.
Worth its cost (information)
When an appropriate relationship exists between the cost of information and its value.
Business process management (BPM)
The process of generating information that will be useful for management and strategy decisions.
Total quality management (TQM)
A business process improvement method focused on improving quality.
Six sigma
A business process improvement method developed by Motorola that focuses on developing quality.
Lean production
A manufacturing method focused on using resources as efficiently as possible.
Automated system
An information system in which the hardware and software components do most of the work.
Manual system
An information system in which the activity of processing information is done by people, without the use of automated processing.
Operational decisions
Decisions that concern the day-to-day activities of an organization.
Transaction processing system (TPS)
An information system that supports operational decision making.
Managerial decisions
Decisions that concern the allocation and use of resources.
Management information systems (MIS)
Information systems that help businesses achieve their goals and objectives.
Strategic decisions
Decisions that concern broader-scope, organizational issues.
Structured decision
A type of decision for which there is a formalized and accepted method for making the decision.
Unstructured decision
A type of decision for which there is no agreed-on decision-making method.
Intelligence gathering
The first step in the decision-making process in which decision makers determine what is to be decided, what the criteria for selection will be, and what data are available.
Alternatives formulation
A step in the decision-making process in which decision makers lay out various alternatives.
Choice
A step in the decision-making process in which decision makers analyze their alternatives and select one.
Implementation
A step in the decision-making process in which decision makers implement the alternative they have selected.
Review
The final step in the decision-making process, in which decision makers evaluate results of their decision and, if necessary, repeat the process to correct or adapt the decision.
Information and Communications Technology (ICT) Sector
Provides products and services that other industries rely on to get their work done.
Productivity paradox
The lack of evidence of an increase in worker productivity associated with the massive increase in investment in information technology.
Productivity
The creation of business value.
Business value
Tangible benefits for organizations through either more efficient use of resources or more effective delivery of their services to customers.
Innovation
Rogers’ five characteristics: relative advantage, compatibility, complexity, trialability, and observability.
Business Technology Management (BTM)
A category of skills focused on the ability to effectively innovate using information technology in organizations.
Skills Framework for the Information Age (SFIA)
A set of skills thought to be useful for those employees focused on developing and maintaining information technology.
Efficiency
A measure of productiveness also refers to accomplishing a business process either more quickly with the same resources or as quickly with fewer resources.
Effectiveness
Doing the right things.
Value chain
A network of value-creating activities.
Margin
The difference between value and cost.
Primary activities
In Michael Porter’s value chain model, the fundamental activities that create value—inbound logistics, operations, outbound logistics, marketing/sales, and service.
Support activities
In Michael Porter’s value chain model, the activities that contribute indirectly to value creation—procurement, technology, human resources, and the firm’s infrastructure.
Five forces model
A model proposed by Michael Porter that assesses industry characteristics and profitability by means of five competitive forces—bargaining power of suppliers, threat of substitutions, bargaining power of customers, rivalry among firms, and threat of new entrants.
Competitive strategy
The strategy an organization chooses as the way it will succeed in its industry. According to Michael Porter, there are four fundamental competitive strategies: cost leadership across an industry or within a particular industry segment, and product differentiation across an industry or within a particular industry segment.
Sustaining technologies
Changes in technology that maintain the rate of improvement in customer value.
Disruptive technologies
A product that introduces a very new package of attributes from the accepted mainstream products.
Diffusion of innovation
The process by which an innovation is communicated through certain channels over time among the members of a social system.
Switching costs
The process of locking in customers by making it difficult or expensive for them to switch to another product.
Sustained competitive advantage
The development of people and procedures that are well supported by the underlying technology.
