Info Systems Exam One Flashcards
Information System (IS)
collects, processes, stores, analyzes, and disseminates information for a specific purpose
Data
elementary description of things, events, activities, and transactions that are recorded, classified, and stored but are not organized to convey any specific meaning (B, C, D, A, K)
Information
refers to data that have been organized so that they have meaning and value to the recipient (ex. GPA)
Knowledge
consists of data and/or information that have been organized and processes to convey understanding, experience, accumulated learning, and expertise as they apply to a current business problem
Computer-based information system (CBIS)
information system that uses computer technology to perform some or all of its intended tasks
Information technology components
hardware: consists of devices such as processor, monitor, keyboard, keyboard, and printer
software: program or collection of programs that enable the hardware to process data
database: collection of related files or tables containing data
network: connecting system that enables multiple computers
procedures: instructions for combining that above components to process information and generate desired output
Information technology infrastructure
IT components plus IT services (refer to visual)
Application
computer program designed to support a specific task or business process
Functional area information system (FAIS)
collection of application programs in a single department
Enterprise resource planning systems (ERP)
two information systems that support the entire organization. transaction processing systems, are designed to correct a lack of communication among the functional are IS
Transaction processing system (TPS)
supports monitoring, collection, storage, and processing of data from the organization’s basic business transactions, each of which generates data
Inter-organizational information systems (IOSs)
IS that connect two or more organizations
ex. supply chain management (flow of materials)
Electronic commerce systems (e-commerce)
enable organizations to conduct transactions, called business-to-business electronic commerce, and customers to conduct transactions with businesses called business-to-consumer electronic commerce e
Knowledge workers
experts in a particular subject area
Business analytics systems
provide computer-based support for complex, non routine decisions, primarily for middle managers and knowledge workers
Expert systems
attempt to duplicate the work of human experts by applying reasoning capabilities, knowledge, and expertise within a specific domain
Dashboards
special form of IS that supports all managers of the organization
What does IT do to middle managers?
reduces the number, makes them more productive, and increase the number of employees who can report to a single manager, provides them with real-time information, makes their jobs more stressful
Potential IT impacts on non managerial workers
eliminate jobs, cause employees to experience a loss of identity, cause job stress and physical problems such as repetitive stress injury
Positive and negative societal effects of increased use of IT
positive: provide opportunities for people with disabilities, provide flexibility, robots take over mundane chores, improvements in health care
negative: cause health problems, place employees on constant call, potentially misinform patients about health problems
Competitive advantage
assets that provide an organization with an edge against its competitors in some measure, such as cost, quality, or speed
Business process
ongoing collection of related activities that create a product or a service of value to the organization, its business partners, and its customers
Fundamental elements of business process
inputs: materials, services, and information that flow through and are transformed as a result of process activities
resources: people and equipment that perform process activities
outputs: product or service created by the process
Metrics for assessing business processes
efficiency: doing things well in the process, without delay or without wasting money or resources
effectiveness: focuses on doing things that matter
Cross-functional processes
processes that cut across multiple functional areas
Three areas IS plays a vital role in business processes
executing the process, capturing and storing process data, monitoring process performance
Business environment
combo of social, legal, economic, physical, and political factors in which businesses conduct their operations
Globalization
integration and interdependence of economic, social, cultural, and ecological facets of life, made possible by rapid advances in information technology
Market pressures
globalization, changing nature of workforce, powerful customers
Technology pressures
technological innovaation/obsolescence, information overload
Societal/political/legal pressures
social responsibility, compliance with government regulations, protection against terrorist attacks, ethical issues
Digital divide
refers to wide gap between those individuals who have access to information and communications technologies and those who don’t
Responses to various pressures
strategic systems, customer focus, make-to-order and mass customization, e-business/e-commerce
Competitive strategy
statement that identifies a business’s approach to compete, its goals, and the plans and policies that will be required to carry out those goals
Strategic information systems (SISs)
provide a competitive advantage bu helping an organization to implement its strategic goals and improve its performance and productivity
Michael Porter’s competitive forces model
- threat of entry of new competitors: high when entry is easy and low when there are significant barriers to entry
- bargaining power of suppliers: supplier power is high when buyers have few choices from whom to buy and low when buyers have many choices
- bargaining power of customers (buyers): buyer power is high when buyers have many choices from whom to buy and low when buyers have few choices
- threat of substitute products or services: if many alternatives to an organization’s products or services, the threat of substitutes is high
- rivalry among existing firms in the industry: threat from rivalry is high when there is intense competition among many firms in an industry
Entry barrier
product or service feature that customers have learned to expect from organizations in a certain industry
Value chain
sequence of activities through which the organization’s inputs, whatever they are, are transformed into more valuable outputs, whatever they are
Value chain model
identifies points for which an organizations can use information technology to achieve a competitive advantage
Primary vs. support activities
Primary: relate to the production and distribution of the firm’s products and services
Support: do not add value directly to the firm’s products or services
Value system
includes the suppliers that provide the inputs necessary to the firm along with their value chains
Strategies to counter five competitive forces identified by Porter
- cost leadership strategy: produce products and services at the lowest cost in the industry
- differentiation strategy: offer different products, services, or product features than your competitors
innovation strategy: introduce new products and services, add new features to existing products and services, or develop new ways to produce them - operational effectiveness strategy: improve manner in which a firm executes its internal business processes more effectively
- customer orientation strategy: concentrate on making customers happy
Business-IT alignment
tight integration of the IT function with the organization’s strategy, mission, and goals
Ethics
principle of right and wrongs that individuals use to make choices that guide their behavior
Utilitarian approach
ethical action is the one that provides the most good or does the least harm
Rights approach
maintains that an ethical action is the one that best protects and respects the moral rights of the affected parties