FINAL Flashcards
Value to a Firm
The difference between *all* the costs associated with the inputs and transformation process, as well as *all* the revenue from the outputs generated.
Value Chain
Inputs -> Transformation -> Outputs
VC Support Activities
Organization, HR, Technology, Purchasing
VC Primary Activities
Inbound Logistics, Operations, Outbound Logistics, Marketing and Sales, Service
How One Achieves Competitive Advantage
1.) Lowering the cost to perform an activity 2.) Adding value to a product or service so buyers will be willing to pay more
Value System
Extended connection of multiple value chains
What does SCM entail?
Management of entire supply chain from raw material sources to final consumption. Not just the up/downstream distribution logistics, but also financial terms, inventory mgmt, etc.
Customer Relationship Management (CRM)
how a company creates and maintains lasting relationships with customers
Benefits of Good CRM (8)
Enables 24/7 operation, individualized service, improved info, speeds problem identification, speeds up processes, improves integration, improves product development, improves planning.
Operational CRM
Sales force automation, customer service & support, enterprise marketing management.
Sales Force Automation
Supports day-to-day-sales activities, can improve market conditions, and allows sales managers to track sales performance.
Customer Service and Support (CSS)
Automation of traditional “help desk” services, customer interaction center (CIC)
Enterprise Marketing Management (EMM)
Improves management of promotional campaigns because it analyze effectiveness of campaigns.
Analytical CRM
Data warehouses, data mining and visualization, business intelligence, ERP Systems.
Data Mining
Key technologies used to create predictive models. Continuous data collection and analysis necessary.
Analytical CRM Customer Focused Business Process
- Marketing campaign mgmt 2. Customer campaign customization 3. Customer communication optimization 4. Customer segmentation and sales coverage optimization 5. Pricing optimization and risk assessment 6. Price, quality, and satisfaction analysis of competitors 7. Customer acquisition and retention analysis 8. Customer satisfaction and complaint management 9. Product usage, life cycle analysis, and product development 10. Product and service quality tracking
Analytical CRM Digital Dashboards
Help to visualize key CRM performance metrics
Analytical CRM Includes all but what?
Collaborative CRM (Includes: Digital Dashboards, Customized Mktg, Analysis of Customer Behavior)
Collaborative CRM
Methods and technologies to facilitate communication.
CRM refers to
communication with the customer from the organization.
Database Management System
The software that manages the data and data access. The Database is the actual data.
Relational Database*
dominant
Flat File Database
The original database type, more like a spreadsheet than a database, all parts in a single file. No longer in common use.
Object Oriented Database
Uses modern programing paradigms, not widely used in business, used in specialized applications.
Records (Tuples)
Each line/row is a recrd that contains info about an entity.
Key/Primary Key
The unique identifier in a database table which allows an entity to be referenced
Attributes/Fields
Individual pieces of information about each entity. Ex: attributes about you might include your phone number, your last name, etc.
Why do we avoid trying to duplicate records about an entity?
It can be a problem if we need to capture multiple attributes
Database tables are not spreadsheets:
Some calculated fields are possible, but it lacks the flexibility of a spreadsheet. Access forms through reports, not directly in the table.
CRUD Functions
Create, Read, Update, Delete
Query By Example
Question Asked - usually returns a table
Structured Query Language
Language used to access databases. Ex: “SELECT userID, Fname, Lname..”
Foreign Key
Links a record in a table to the primary key in another table
Form
Way to enter data
Report
Once you ask for a report, it is more specific and presentable than a query.
What should the PV formula in Cell B12 look like, if you want it to be correct and to be able to use it for all Expense and Revenue PV calculations just by copying it?
B11/(1+$B$1)^B$3
The Procure to Pay business process involves how many different functional areas
4
Parts of a supply chain
The retailer who sells goods to consumers The upstream value added production (elements you buy to make your goods) Your own company The raw goods production (petroleum, mining, renewable resources)
In what department did Information Systems first make an appearance when starting to be used by business?
Accounting
Which of these is not a justification for using Total Cost of Ownership (TCO) when acquiring new systems? a. The system will provide significant long-term benefits b. There will be large maintenance costs associated with the system c. The system has significant operating costs d. The system has large disposal costs e. The system costs more to implement than to purchase
A
Parts of TCO
Disposal Acquisition Maintenance Operations
TCO, when incorporated in any financial benefit analysis, provides a cost basis for determining the total economic value of an investment. Examples include everything but? a. payback period b. return on investment c. internal rate of return d. economic value added e. return on information technology
A
Critical Path
- If something is on the critical path, adding x days work to it extends the project by x days - If something is not on the critical path, there is some amount of slack (y days), you can add that amount of work (y days) and not lengthen the project. If you add fewer than y days it still isn’t on the critical path. If you add exactly y days it becomes part of the critical path but doesn’t extend the project. If you add more than y days it extend the project by the number of days you added minus y
Value Chain Model
- Support Activities: Organization, HR, Technology, Purchasing - Primary Activities: Inbound logistics, Operations, Outbound logistics, Marketing and Sales, Service
**Operational CRM includes all the following components except? 1) Sales Force Automation (SFA) 2) Digital Dashboards (DD) 3) Customer Support and Services (CSS) 4) Enterprise Marketing Management (EMM)
2
Database Management System (DBMS)
the software that manages the data and data access: - MS Access & MS SQL Server - Oracle’s 11g - IBM’s DB2
Database
the actual data: - files with data indexes to speed up data access
3 database types
- Relational: dominant in business - Flat file: the original database type, more like a spreadsheet than a database, all parts in a single file (no longer in common use) - Object Oriented: uses modern programming paradigms, not widely used in business, used in specialized applications
Record (tuples)
Each line/row - contains info about one thing (entity) - typically has a unique identifier (“key” or “primary key”) which allows it to be referenced to other tables
Foreign Keys
references to other tables that “unlock” data - they point to other tables
Fields/Attributes
- the individual pieces of information about each entity - ex: your phone number, last name, first name, zip code - avoid duplicate records about an entity
**If a person has a home and mobile phone number, how do you think we put that into a database?
Have a separate table to capture phone numbers, referenced from the table containing individuals
Related Tables
all the data in each table is related to date in one or more other tables
Database tables
- are not spreadsheets - can be accessed through forms, reports, programs and interfaces - lack flexibility
CRUD functions
Create, read, update, delete (used to access data in databases)
To access data, use
- CRUD - Forms - Direct editing of database tables - Query by example (QBE) Structured Query Language (SQL) - Program Access
Form
form to input data - ex: name, sex, eye color, height
Query
a question we post to get an answer (gives you a table)
Report
Structured data
Porter’s Five Forces Model of Competitive Advantage
1) Potential threat of new entrants 2) Bargaining power of buyers 3) Bargaining power of suppliers 4) Threat of substitute products 5) Industry competitors
Business Strategy
- dictates where a business wants to go and how it will get there - forward looking
The Generic Strategies Framework
1) Industry wide differentiated 2) Industry wide low cost 3) Focused differentiated 4) Focused low cost
Cost Leadership
- the organization aims to be the low cost producer in the marketplace - typically only ONE leader can exist in the industry - ex: Retail Goods - Walmart Airline Travel - Jet Blue Travel Reservations - Priceline
**What is Ford’s Business Strategy?
Differentiation
**What is Porsche’s Business Strategy?
Focus
Order-to-Cash
create customer record –> check credit –> create order –> create order –> allocate stock –> pick, pack and ship –> prepare and send invoice –> collect payment
Procure-to-Pay
negotiate price and terms –> issue purchase order –> receive goods –> receive invoice –> settle payment
Silo
- a system that is isolate from others (island) - data can’t reach rest of the company
**A functional corporation restricts process flow
Between different functions
**How many paths can come out of a decision diamond?
Any number greater than 1
**How many paths can go in/come out of a process box?
Any number greater than 0
Total Quality Management (TQM)
a tool for change that uses small incremental changes - personnel favorable - change is viewed as less of a threat
Six Sigma
one popular approach to TQM - developed by Motorola in 1986 - Adopted by GE in 1995 - focused on reducing errors and variance in business products and processes - asserts that continuous efforts to achieve stable and predictable process results are of vital importance to business success
**A Six Sigma process has one defect per ____ products or process iterations
3.4 million
Business Process Reengineering (BPR)
a more “radical” change management tool - personnel more resistant - use only when major change is needed
Workflow diagram
tool used to understand a business process
**If a company hasn’t been keeping pace with its peers, and is now far behind in quality and efficiency, its best hope for survival is?
BPR
Workflow Management (video)
- the process and procedures in which tasks are completed - need to operate as efficient and effective as possible - goals of workflow management: tasks that need to be accomplished, what order, who’s involved, systems being used and rules being followed - as organizations group, they face issues with scaling, maintaining, and managing
Ethical Dilemma
- It is not a dilemma unless all the alternatives are bad / negative - Deciding to rob a store or not rob a store typically isn’t a dilemma - Deciding whether or not to rob a store for life saving medications that you can’t get any other way for your dying child is an ethical dilemma
3 conditions to deter from unethical behavior
1) There is a fear of the penalty assessed 2) There is a probability of being caught 3) There is a probability of the penalty actually being administered
Stockholder Theory
Maximize stockholder wealth, in legal and non-fraudulent manners
Stakeholder Theory
Maximize benefits to all stakeholders while weighing costs to competing interests..
Social Contract Theory
Create value for society in a manner that is just nondiscriminatory.
Authentication
- are you who you say you are? - password, other control - something the user is (biometrics) - something the user has (id card, RSA passcode generator) - something the user does (signature) - something the user knows (password)
**A firewall is most like a
furnace filter that blocks anything the wrong size or shape
Virtual Private Networks (VPN)
- an overlay network built on top of public network, especially internet – Why do we use? - leased lines cost too much - there are too many nodes to be connected (UA students) - it is totally transparent to applications
Wired Equivalent Privacy (WEP)
is unsecured
Wi-Fi Protected Access (WPA)
is good
**To have the most secure wireless network, you should use
WPA2
