Information Systems In organization Flashcards
Why Learn About Information Systems in Organizations?
Organizations of all types use information systems to cut costs and increase profits
Organization
- A system
- Formal collection of people and other resources established to accomplish a set of goals
- Constantly uses money, people, materials, machines and other equipment, data, information, and decisions
Value chain
Series (chain) of activities that an organization performs to transform inputs to outputs in such a way that the value of the input is increased.
Example of value chain
a gift wrapping department of an upscale retail store takes packages from customers, covers them with appropriate, decorative wrapping paper, and gives the package back to the customer, thus increasing the customer’s perceived value of the gift
Supply chain
In a manufacturing organization, the supply chain is a key Value Chain whose primary activities include inbound logistics, operations, outbound logistics, marketing and sales, and services.
What Supply chain management (SCM) determines ?
Determines:
What supplies are required for value chain
What quantities are needed to meet customer demand
How supplies should be processed into finished goods and services
How shipment of supplies and products to customers should be scheduled, monitored, and controlled
Supply chain management (SCM)
helps determine what supplies are required
for the value chain, what quantities are needed to meet customer demand, how the supplies
should be processed (manufactured) into finished goods and services, and how the shipment
of supplies and products to customers should be scheduled, monitored, and controlled.
Customer relationship management (CRM)
help companies of all sizes manage
all aspects of customer encounters, including marketing and advertising, sales, customer service
after the sale, and programs to retain loyal customers
Organizational culture and change
- Culture ?
- Organizational culture ?
- Organizational change ?
- Change model ?
- Unfreezing ?
- Moving ?
- Refreezing ?
- Organizational learning ?
Culture:
Set of major understandings and assumptions shared by a group
Organizational culture:
Major understandings and assumptions for an organization
Influences information systems
Organizational change:
How organizations plan for, implement, and handle change
Change model:
Represents change theories by identifying phases of change and the best way to implement them
Unfreezing:
Ceasing/stop old habits and creating a climate that is receptive to change
Moving:
Learning new work methods, behaviors, and systems
Refreezing:
Involves reinforcing changes to make the new process second nature, accepted, and part of the job
Organizational learning:
The adaptations to new conditions or adjustments based on experience and ideas over time
Reengineering
Radical redesign of business processes, organizational structures, information systems, and values of the organization to achieve a breakthrough in business results
(more serious task)
Continuous Improvement
Constantly seeking ways to improve business processes and add value to products and services
Technology diffusion
Measure of how widely technology is spread throughout an organization (Effects The Whole Department)
Technology infusion
Extent to which technology permeates(spread throughout) a department (Only Effects Certain Department)
Outsourcing
Contracting with outside professional services
On-demand computing
AKA on-demand business or utility computing
More Details:
-Resources are made available to users when required
-Rapidly responding to the organization’s flow of work as the need for computer resources varies
-(Example Microsoft Teams Pro, I Subscribe for 1 year when I Need It, After 1 Year I Might Not Need It)
Downsizing
Reducing number of employees to cut costs
Competitive Advantage
Significant and (ideally) long-term benefit to a company over its competition
Can result in higher-quality products, better customer service, and lower costs
Factors That Lead Firms to Seek Competitive Advantage
The five forces model:
1. Rivalry among existing competitors
2.Threat of new entrants
3.Threat of substitute products and services
4.The bargaining power of buyers
5.The bargaining power of suppliers
1.Rivalry among existing competitors:
-Industries with stronger rivalries tend to have more firms seeking competitive advantage
2.Threat of new entrants:
Threat appears when:
-Entry and exit costs to an industry are low
-Technology needed to start and maintain a business is commonly available
- Threat of substitute products and 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
4.Bargaining power of customers and suppliers:
-When customers or suppliers have a lot of bargaining power, companies increase their competitive advantage to retain their customers, and to maintain their bargaining position with their suppliers
-Suppliers can also help an organization gain a competitive advantage
Strategic Planning for Competitive Advantage
Cost leadership-Deliver the lowest possible cost for products and services (like Walmart,Costco,Dell)
Differentiation – deliver different products and services to give customers more choices(like a car manufacturer has many car models)
Niche strategy – deliver to only a small, niche market. Porsche or Rolex
Altering the industry structure – change the industry to become more favorable to the company.
Airasia(introduced low cost carrier in msia)
Creating new products and services – introduce new products and services periodically. Apple, with their Ipad and iphones
Improving existing product lines and services – make real or perceived improvements to existing product lines and services. Coke Zero(no sugar), Kelloggs(reduced sugar in cereal)
Other strategies:
-Seek growth in sales
-First to market
-Customizing products and services
-Hiring the best people
-Innovation
Productivity
-A measure of output achieved divided by input required
-Higher level of output for a given level of input means greater productivity
-Lower level of output for a given level of input means lower productivity
-Productivity = (Output / Input) × 100%
Return on Investment and the Value of Information Systems
Return on investment (ROI):
-One measure of IS value
-Investigates the additional profits or benefits that are generated as a percentage of the investment in IS technology
Earnings growth:
The increase in profit that the system brings
Market share and speed to market:
-The percentage of sales that a product or service has in relation to the total market
-CapEx Vs OpEx
Customer awareness and satisfaction:
-Performance measurement is based on feedback from internal and external users
Total cost of ownership:
-The sum of all costs over the life of the information system
Roles, Functions, and Careers in IS
Primary responsibilities in information systems:
Operations:
-System operators primarily run and maintain IS equipment
-Example: Data center manager, information systems security analyst, LAN administrator
Systems development:
-Focuses on specific development projects and ongoing maintenance and review
-Software developer, systems analyst, programmer, web developers
Support:
-Provides user assistance in hardware and software acquisition and use, data administration, user training and assistance, and Web administration
-Database administrator, help desk support specialis
