FIS - Module 2 Flashcards by Maurriel de Leon

formal collection of people and other resources to accomplish a set of goals
a system that has input, processing, output and feedback
it constantly use money, people, materials, machines and other equipment

Organization

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For-profit vs. Non-profit Org

For-profit - maximize shareholder value, price of the company stock (has income)
Nonprofit - social groups, religous groups, universities (no income)

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support and work within all parts of an org’al process
org use this to cut cost and increase profits

Information Systems

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focuses on outperforming others, often aiming to be the best.

Competitive

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focuses on efficiency and effectiveness, aiming to accomplish goals successfully.

Productive

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a series (chain) of act
* inbound logistics
* warehouse & storage
* production
* finished product storage
* outbound logistic
* marketing and sales
* customer service

value chain

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helps determine the ff:
* supplies
* quantities
* how should it be processed
* shipment

Supply Chain Management

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Help a company manage all aspects of customer encounters, including:

1. Marketing and advertising,
2. Sales,
3. Customer service after the sale, and
4. Programs to retain loyal customers.

help get customer data/feedback

Customer Relationship Management

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Refers to organizational sub-units and the way they relate to the overall organization.
An organization’s structure depends on its goals and approach to management, and can affect how it views and uses information systems.
The types of organizational structures typically include traditional, project, team, and virtual.

Organizational Structure

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Also called as a “hierarchical” structure.
It is like a managerial pyramid where the hierarchy of decision making and authority flows from the strategic management at the top down to operational management and non-management employees.

Traditional Organizational Structure

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Includes the president of the company and vice presidents.
They have the highest degree of decision authority and has the most impact on corporate goals.

Strategic Level

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Includes the major department heads.
Usually divided according to function and can include marketing, production, information systems, finance and accounting, research and development, and so on.

Tactical Level

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Known as the “Line positions”.
These positions or departments are directly associated with making, packing, or shipping goods.

Operational Level

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Known as the “Staff positions”.
These are positions that might not be directly involved with the formal chain of command but instead assist a department or area.

NOn-Management Level

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Empowers employees at lower levels to make decisions and solve problems without needing permission from midlevel managers.

Flat Organizational
Structure

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Centered on major products or services.
Project teams are temporary— when the project is complete, the members go on to new teams formed for another project.

Project Organizational
Structure

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Centered on work teams or groups. In some cases, these teams are small; in others, they are very large.
Typically, each team has a leader who reports to an upper-level manager.
Depending on its tasks, the team can be temporary or permanent.

Team Organizational
Structure

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Employs individuals, groups, or complete business units in geographically dispersed areas that can last for a few weeks or years, often requiring telecommunications or the Internet
.Allows work to be separated from location and time.
Work can be done anywhere, anytime.

Virtual Organizational
Structure

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People might never meet physically, which explains the use of the word virtual, and highlights the difference between virtual organizations and traditional ones that have operations in more than one location.
A Virtual organization is geographically distributed, and uses information technology to communicate and coordinate the work.
It can last for a few weeks, months, years or decades.

Virtual Organizational
Structure

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A ____________ is geographically distributed, and uses information technology to communicate and coordinate the work.

Virtual organization

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A set of major understandings and assumptions shared by a group, such as within an ethnic group or a country.

Culture

Consists of the major understandings (common beliefs, values, and approaches to decision making) and assumptions for a business, corporation, or other organization.

Organizational Culture

Deals with how for-profit and nonprofit organizations plan for, implement, and handle change.

Organizational Change

INTERNAL vs EXTERNAL CHANGE

Internal change – factors initiated by employees at all levels.
External change- activities created by competitors, stockholders, federal and state laws, community regulations, natural occurrences (such as hurricanes), and general economic conditions.

Can help an organization **improve** the supply of raw materials, the production process, and the products and services it offers.

**Sustaining Change**

Often `harms` an organization’s performance or even puts it out of business.

**Disruptive Change**

**CHANGE MODEL** by Kurt Lewin and Edgar Schein

* **Unfreezing** - stopping old habits and creating a climate that is receptive to change. * **Moving** - learning new work methods, behaviors, and systems. * **Refreezing** - reinforcing changes to make the new process second nature, accepted, and part of the job.

Involves the radical `redesign` of business processes, organizational structures, information systems, and values of the organization to achieve a `breakthrough` (advancement) in business results.

**Business Process Reengineering**

* Constantly seek ways to `improve` business processes and `add value` to products and services. * This continual change will `increase` customer satisfaction and loyalty and ensure `ong-term` profitability.

**Continuous Improvement**

A model that describes the factors leading to higher levels of acceptance and usage of technology.

**Technology Acceptance Model (TAM)**

**TECHNOLOGY `DIFFUSION` vs `INFUSION`**

* **T. Diffusion** - A measure of how widely technology is `spread throughout the organization`. * **T. Infusion** - The extent to which technology is `deeply integrated` into an `area or department`.

The ability of a product (including services) to meet or exceed customer expectations.

**Quality**

* Involves contracting with `outside` professional services to meet specific business needs. * Organizations often outsource a process to focus more closely on their `core business`—and target limited resources to meet strategic goals.

**Outsourcing**

* Involves `rapidly responding` to the organization’s flow of work as the need for computer resources varies. * Organization pays for `computing resources` from a computer or consulting company.

**On-demand Computing**

* Instead of purchasing hardware, software, and database systems, the organization only pays a `fee` for the systems it needs at `peak times`. * It also allows the organization’s IS staff to concentrate on `more-strategic` issues.

**On-demand Computing**

* Involves reducing the number of employees to `cut costs`. * Rather than pick a specific business process to downsize, companies usually look to downsize across the entire company. * Reduces total payroll costs, though employee morale can suffer.

**Downsizing**

* Employers need to be open to alternatives for reducing the number of employees but use `layoffs` as the last resort. * It’s simpler to encourage people to leave `voluntarily` through early retirement or other incentives.

**Downsizing**

* A significant and (ideally) `long-term benefit` to a company over its competition, and can result in higher-quality products, better customer service, and lower costs. * Establishing and maintaining a competitive advantage is complex, but a company’s survival and prosperity depend on its success in doing so.

**Competitive Advantage**

* To gain an advantage over competitors, companies constantly analyze how they use their resources and assets. * For example, a transportation company might decide to invest in radio-frequency technology to tag and trace products as they move from one location to another.

**Rivalry Among Existing Competitors**

When the threat of `new market` entrants is high, the desire to seek and maintain competitive advantage to dissuade / discourage new entrants is also usually high.

**Threat of New Entrants**

* Companies that offer one type of goods or services are threatened by other companies that offer similar goods or services. * The more consumers can obtain `similar products` and services that satisfy their needs, the more likely firms are to try to establish competitive advantage.

**Threat of Substitute Products and Services**

* Large customers tend to influence a firm, and this influence can increase significantly if the customers can threaten to switch to rival companies. * When the bargaining power of suppliers is strong, companies need to improve their competitive advantage to maintain their bargaining position.

**Bargaining Power of Customers and Suppliers**

* Deliver the `lowest possible cost` for products and services. * Achieved by `reducing the costs of raw materials` through aggressive negotiations with suppliers, becoming more efficient with production and manufacturing processes, and reducing warehousing and shipping costs.

**Cost Leadership**

* Deliver `different products and services`. * This strategy can involve `producing a variety of products`, giving customers `more choices`, or delivering higher quality products and services.

**Differentiation**

* Deliver to `only a small, niche market`. * **Porsche**, for example, doesn’t produce inexpensive station wagons or large sedans. It makes high-performance sports cars and SUVs. \ * **Rolex** only makes high-quality, expensive watches. It doesn’t make inexpensive, plastic watches.

**Niche strategy**

* Introduce `new products` and services `periodically or frequently`. * If an organization does not introduce new products and services every few months, the company can quickly stagnate, lose market share, and decline.

**Creating New Products and Services**

Make real or perceived improvements to existing product lines and services.

**Improving Existing Product Lines and Services**

* A measure of the `output` achieved `divided by` the `input` required. * A higher level of output for a given level of input means greater productivity; a lower level of output for a given level of input means lower productivity.

**Productivity** Productivity = (Output / Input) × 100%

This measure investigates the `additional profits or benefits` that are generated as a percentage of the investment in IS technology.

**Return on Investment (ROI)**

The percentage of sales that a product or service has in relation to the total market.

**Market Share**

Bringing new products and services to customers in less time.

**Speed to Market**

The measurement of the `total cost of owning computer equipment`, including desktop computers, networks, and large computers.

**Total Cost of Ownership (TCO)**