Midterm 1 Flashcards
Weeks 1-6
1
Q
What is a business process?
A
Ongoing collection of related activities or tasks that in a specific sequence create a product or service of value to the organization
2
Q
Inputs
A
Materials, services, and information that flow through and are transported as a result of a process
2
Q
Resources
A
People and equipment that perform processes
2
Q
Outputs
A
Product or service created by the process
2
Q
Effectiveness
A
Focuses on creating outputs of value to the process customer
2
Q
Procurement Process
A
All tasks involved in acquiring needed materials externally from a vendor
3
Q
Efficiency
A
Focuses on doing things without wasting resource
3
Q
Firm areas involved with procurement
A
- Warehouse
- Purchasing
- Accounting
3
Q
Procurement step 3
A
Vendor ships the material to the warehouse
3
Q
Procurement step 1
A
Warehouse sends a purchase requisition form to purchasing
3
Q
Procurement step 2
A
Purchasing department creates a purchase order based upon the requisition
4
Q
Procurement step 4
A
Vendor sends an invoice to the accounting department
5
Q
Procurement step 5
A
Accounting sends payment to vendor
5
Q
Fulfillment step 1
A
Purchase order sent to the sales department
5
Q
Fulfillment process
A
Concerned with processing customer orders
5
Q
Fulfillment step 2
A
Sales creates a sales order
6
Q
Sales order
A
Communicates data related to the order to other functional areas in the organization
7
Q
Fulfillment step 3
A
Warehouse prepares and sends shipment
8
Q
Fulfillment step 4
A
Accounting creates an invoice once it is notified of shipment
9
Q
Fulfillment step 5
A
Customer pays the invoice which is recorded by accounting
10
Q
When does a business process create a competitive advantage?
A
When the company innovates or is more effective and efficient than competitors
11
Q
When does a business process create a liability
A
If they make the company less responsive
12
Q
Customer satisfaction
A
The result of optimizing operations and supplier processes
13
Q
Cost reduction
A
The result of optimizing operations and supplier processes
14
Cycle and fulfillment time reduction
The result of optimizing the manufacturing and logistics processes
15
Quality
The result of optimizing the marketing and innovation processes
16
Differentiation
The result of optimizing the marketing and innovation processes
17
Productivity
The result of optimizing each individual work process
18
Business process re-engineering (BPR)
A radical redesign of a business process that improves its efficiency and effectiveness. Begins from scratch
19
Business process improvement
Focuses on reducing variation in the process outputs by finding the root cause of the variation
20
Phases of the BPI Project
DMAIC
21
Define phase (BPI)
BPI team documents the existing "as is" process activities, process resources, and process inputs and outputs
22
Measure phase (BPI)
BPI team identifies relevant process metrics and collects data to understand how the metrics evolve over time
23
Analysis phase (BPI)
BPI examines the process map and the collected data to identify problems with the process and the root cause
24
Improve phase (BPI)
BPI team identifies possible solutions for addressing the root causes and maps the "to be" alternatives
25
Control phase (BPI)
The team establishes process metrics and monitors the improved process after the solution
26
Business Process Management (BPM)
Management system that includes methods and tools to support the continuous health of core business processes
27
Process modelling
Graphical depiction of all steps in a process. Important component of BPM
28
Business Activity Monitoring (BAM)
Real-time approach for measuring and managing business processes
29
True or false: BAM tracks operations and indicates their success
True
30
Business process management suites
Set of applications that includes process maps, business rules, and tools for process modelling
31
Social BPM
Technology that enables employees to collaborate, using social media tools on wired and mobile platforms
32
Make-to-order
Producing customized products
33
Mass production
Producing a large quantity of identical items
34
Mass customization
A company produces a large quantity of items, but customizes them to meet the needs of individual customers
35
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
36
Strategic Information Systems (SISs)
Provide a competitive advantage by helping an organization to implement its strategic goals and improve its performance and productivity
37
Force 1 (Porters Five Forces)
The threat of entry of new competitors
38
Entry barrier
A product or service feature that customers have learned to expect from organizations
39
Force 2 (Porters Five Forces)
The bargaining power of suppliers
40
Force 3 (Porters Five Forces)
The bargaining power of customers
41
Force 4 (Porters Five Forces)
The threat of substitute products or services
42
Force 5 (Porters Five Forces)
The rivalry among existing firms in the industry
43
Value Chain
Sequence of activities through which the organizations inputs are transformed into valuable outputs
44
Value Chain Model
Identifies points for which an organization can use information technology to achieve a competitive advantage
45
Primary Activities
Relate to the production and distribution of the firm's products and services
46
Support activities
Do not add value to the firm's products or services. Contribute to the firm's competitive advantage by supporting primary activities
47
Sequence of primary activities
1. Inbound logistics (inputs)
2. Operations (manufacturing and testing)
3. Outbound logistics (Storage and distribution)
4. Marketing and Sales
5. Services
48
How value is added to products?
1. Materials are processed
2. Raw materials are turned into products
3. Products are prepared for delivery
4. Marketing and sales sell the products
5. Company performs after-sales service
49
Support activity examples
1. The firm's infrastructure (accounting, finance, and management)
2. Human resource management
3. Product and technology development (R&D)
4. Procurement
50
Value system
AKA industry value chain. Includes the suppliers that provide inputs necessary to the firm along with their value chains
51
Cost leadership strategy
Produce products and services at the lowest cost in the industry
52
Differentiation strategy
Offer different products, services, or product features than competition
53
Innovation strategy
Introduce new products and services, add new features, or develop new ways to produce them
54
Operational effectiveness strategy
Improve the manner in which a firm executres its internal business processes
55
Customer orientation strategy
Concentrate on making customers happy
56
Business information technology alignment
Tight integration of the IT function with the organization's strategy, mission, and goals
57
Characteristics of excellent Business-IT Alignment
1. Organizations view IT as an engine of innovation
2. Organizations view their internal and external customers and customer service functions as important
3. Organizations rotate business and IT professionals across departments
4. Organizations provide overarching goals that are clear to IT and business employees
5. Organization ensure that IT employees understand how the company makes money
6. Organizations have a vibrant company culture
58
Data Governance
Formal set of processes and policies that are designed to ensure that data are handled in a well-defined fasion
59
Master data management
Process that spans all of an organization's processes and applications
60
Master data
Includes:
- Customer
- Product
-Employee
- Vendor
- Location
61
Transactional data
Describes the businesses activities
62
Data file
collection of logically related records
63
Problems solved by databases
- Data redundancy
- Data isolation
- Data inconsistency
64
Data redundancy
The same data stored in multiple locations
65
Data isolation
Applications cannot access data associated with other applications
66
Data inconsistency
Various copies of the data do not agree
67
Advantages of databases
Maximized data security, integrity, and independence
68
Data security
Databases must have a very high security to minimizes a lot of data being lost
69
Data integrity
Data meets certain constraints
70
Data independence
Applications and data are not linked so all applications are able to access the same data
71
Database management system (DBMS)
Set of programs that provide tools to create and manage a database
72
Relational database model
Based on the concept of two-dimensional tables. Each table contains records and attributes
73
Data model
Diagram that represents entities in the database and their relationships
74
Entity
Person, place, thing, or an event about which an organization maintains information
75
Instance
Each row in a relational table which is a specific representation of the entity
76
Attribute
Each characteristic or quality of a particular entity
77
Primary key
A field or attribute of a record that uniquely identifies the record so it can be retrieved, updated, and sorted
78
Secondary key
A field with some identifying information but does not identify the record with complete accuracy
79
Foreign key
A field in one table that uniquely identifies a row of another table
80
Structured data
Highly organized data in fixed fields in a data repository. Must be defined in terms of field name and type
81
Unstructured data
Data that does not reside in traditional relational databases. Includes: emails, word documents, PowerPoints, web pages.
82
Big data
Collection of data that is so large and complex it is difficult to manage using traditional systems
83
Big data characteristics
- Volume
- Velocity
- Variety
84
Dirty Data
Inaccurate, incomplete, incorrect, duplicate, or erroneous data
85
Massively parallel processing
Coordinated processing of an application by multiple processors that work on different parts of the application
86
Data warehouse
Repository of historical data that are organized by subject to support decision makers within the organization
87
Data mart
Low-cost, scaled-down version of a data warehouse that is designed for end-user needs
88
Characteristics of data warehouses and marts
- Organized by business dimension or subject
- Use online analytical processing
- Integrated
- Time variant
- Non-volatile
- Multidimensional
89
Meta Data
Data that describes and gives information about other data
90
Data lake
Central repository that stores all of an organization's data, regardless of source or format
91
Knowledge management
Process that helps organizations manipulate important knowledge that makes up part of the organization's memory
92
Knowledge
Information that is contextual, relevant, and useful
93
Explicit knowledge
Objective, rational, and technical knowledge
94
Tacit knowledge
Cumulative store of subjective or experiential learning. Imprecise and costly to transfer
95
Knowledge management systems
The use of modern information technologies to expedite the knowledge management both within one firm and among multiple firms
96
Best practices
Most effective and efficient ways of accomplishing processes
97
KMS Cycle
1. Create knowledge
2. Capture knowledge
3. Refine knowledge
4. Store knowledge
5. Manage knowledge
6. Disseminate knowledge
98
Cloud computing
Type of computing that delivers convenient, on-demand, pay-as-you-go access for multiple customers to a shared pool of configurable computing resources
99
On-premises computing
Organizations own their IT infrastructure and maintain it in their data centres
100
Grid computing
Pools various hardware and software components to create a single IT environment with shared resources
101
Utility computing
A service provider makes computing resources and infrastructure management available to a customer as needed
102
Server farms
Massive data centres
103
Server virtualization
Uses software-based partitions to create multiple virtual servers on a single physical server
104
Public clouds
Shared, easily accessible, multicustomer IT infrastructures that are available to any entity in the general public
105
Private clouds
IT infrastructures that can be accessed only by a single entity or by an exclusive group of related entities that share the same purpose and requirements
106
Hybrid clouds
Composed of public and private clouds that remain unique entities, but are tightly integrated.
107
Vertical clouds
Building cloud infrastructure and applications for different businesses
108
Infrastructure as a service (IaaS)
Cloud computing providers offer remotely accessible servers, networks, and storage capacity
109
Platform as a service (PaaS)
Customers rent servers, operating systems, storage, a database, software development technologies, and network capacities. Allows running existing applications and develop new ones
110
Software as a service (Saas)
Cloud computing vendors provide software that is specific to their customers' requirements. Most widely used service model and provides a broad range of software applications
111
Cloud computing advantages
1. Positive impact on employees
2. Can save money
3. Can improve organizational flexibility and competitiveness
112
Cloud computing risks
1. Legacy IT systems are not easily transferred
2. Reliability
3. Privacy
4. Security
5. Regulatory and legal environment
6. Criminal use of cloud computing
113
Service-oriented architecture (SOA)
Collection of web services that are used to build a firm's IT applications
114
Extensible markup language (XML)
Computer language that makes it easier to exchange data among a variety of applications and to validate and interpret these data
115
Hypertext markup language (HTML)
Page-description language for specifying how things are placed on a web page
116
Transaction
Any business event that generates data worthy of being captured and stored
117
Transaction processing system (TPS)
Supports the monitoring, collection, storage, and processing of data from the organization's basic business transactions
118
Batch processing
The firm collects data from transactions as they occur, placing them in groups, or batches
119
Online transaction processing (OLTP)
Business transactions are processed online as soon as they occur
120
Functional area information system (FAIS)
Supports a particular functional area in the organization by increasing each area's internal efficiency and effectiveness
121
Computer-integrated manufacturing
Approach that integrates various automated factory systems
122
CIM Goals
1. Simply all manufacturing technologies
2. Automatic as many manufacturing processes as possible
3. Integrate and coordinate all aspects of design, manufacturing, and related functions
123
Product life cycle management
Management of a product through its lifecycle
124
Routine reports
Reports produced on scheduled intervals
125
Ad hoc (on-demand) reports
Out of routine reports
126
Drill-down report
Report with a greater level of detail
127
Key indicator research
Summarize the performance of critical activities
128
Comparative reports
Compare performance of different business units or of a single unit during different times
129
Exception reports
Include only information that falls outside certain threshold standards
130
Enterprise resource planning (ERP)
Software that manages and integrates essential parts of the business
131
Why were ERP II systems developed
Early ERP systems did not extend to other functional areas (sales and marketing) and did not include any CRM capabilities
132
ERP II Systems
Interorganizational ERP systems that provide web-enabled links among a company's key business systems
133
ERP Benefits
1. Organizational flexibility
2. Decision support
3. Quality and efficiency
134
ERP Limitations
1. Companies may need to alter processes to fit ERP best practices
2. Systems can be very complex, expensive, and time consuming to implement
135
Types of on-premise ERP implementations
1. Vanilla approach
2. Custom approach
3. Best-of-breed approach
136
The vanilla approach
Company implements a standard ERP package using the package's built-in configuration options
137
The custom approach
Company implements a more customized ERP system by developing new ERP functions designed specifically for that firm
138
Best-of-breed Approach
Combines the benefits of the vanilla and customized systems while avoiding the costs avoided with complete customization.
139
Advantages of cloud based ERP
1. Used anywhere
2. Avoid initial software and hardware expenses
3. Scalable
140
Disadvantages of cloud based ERP
1. Less secure
2. Less control
141
Enterprise Application Integration (EAI) System
Connects existing systems to applications through middlewhere
142
Cross-departmental process
A process that involves other departments. Supported by ERP
143
Procurement process
Begins with the need to acquire goods or services and ends when the company receives them
144
Procurement steps
1. Warehouse produces a purchase requisition
2. Purchase requisition is sent to Purchasing which produces a purchase order
3. Warehouse receives order and checks to make sure the delivery matches the order
4. Warehouse issues a goods receipt document
5. Accounting receives a supplier invoice and checks for a three-way match
6. After accounting verifies the match, it processes payment and sends it to the vendor
145
Three-way match
A check to make sure that the PO, goods received document, and supplier invoice match
146
Goods received document
States whether the shipment received matches the PO
147
Order fulfillment process
Process in which a company sells goods to a customer
148
Order fulfillment steps
1. Sales receives a customer inquiry
2. Sales provides a quotation
3. Sales creates a purchase order and a sales order
4. Sales forwards sales order to the warehouse
5. Warehouse prepares the shipment and produces the picking document and the packing list
6. Accounting issues an invoice for the customer
7. Process concludes when accounting receives a payment that is consistent with the invoice
149
Sales order
Provides detail of quantity, price, and other product characteristics
150
Picking document
Used to remove goods from the warehouse
151
Packing list
Accompanies the shipment and provides delivery details
152
Production process
Process in which a company makes physical goods
153
Production process strategies
1. Make-to-stock
2. Make-to-order
154
Make-to-stock
Occurs when the company produces goods to create or increase an inventory
155
Make-to-order
Occurs when production is generated by a specific customer order
156
Production steps
1. Warehouse issues a planned order and sends it to production
2. Production receives the planned order and issues a production order
3. Production generates a material withdrawal slip and sends it to the warehouse
4. If the parts are available in the warehouse they are sent to production. If the parts aren't available they are procured
5. Production creates the products and updates the production order to send units to the warehouse
6. Warehouse issues a goods receipt
157
Production order
Written authorization to start production of a product
158
Material withdrawal slip
Lists all of the needed parts needed
159
Goods receipt document
Certifies how many units of a product it received that are available for sale
160
Customer relationship management (CRM)
Organizations concentrate on assessing customers' requirements for products and services and then provide a high-quality service
161
Customer touch points
Interaction between customer and organization
162
Collaboration CRM Systems
Provide effective and efficient interactive communication with the customers throughout the entire organization
163
Customer identify management
A marketing technology that creates a complete view of a customer across an organization
164
Operational CRM systems
The component of CRM that supports front-office business processes
165
Front-office processes
Those that directly interact with customers (sales, marketing, service)
166
Major components of operation CRM
1. Customer-facing applications
2. Customer touching applications
167
Customer-facing CRM applications
Areas in which customers directly interact with the organization, including customer service and support
168
Customer Interaction Centres (CIC)
Organizational representatives use multiple channels to communicate with customers
169
Salesforce automation (SFA)
Component of an operational CRM system that automatically records all of the components in a sales transaction process
170
Customer-touching CRM applications
Applications and technologies with which customers interact and typically help themselves
171
Analytical CRM systems
Provide business intelligence by analyzing customer behaviour and perceptions
172
ON-demand CRM system
One that is hosted by an external vendor in the vendor's data centre
173
Mobile CRM system
Interacting directly with customers through portable devices like smartphones
174
Open-Source CRM systems
Provides CRM systems that are favourably priced, and highly customizable
175
Social CRM
Use of social media technology and services to enable organizations to engage their customers
176
Real-time CRM
A system that allows for organizations to respond to customers 27/7/365
177
Supply chain
Flow from raw material suppliers, through factories and warehouses, and to the end customers
178
Supply chain visibility
The ability of all organizations in a supply chain to access or view data on purchased materials
179
Upstream supply chain
Where sourcing or procurement from external suppliers occurs
180
Internal supply chain
Where packaging, assembly, or manufacturing takes place
181
Downstream supply chain
Where distribution takes place, frequently by external distributors
182
Supply chain management (SCM)
Improves the processes a company uses to acquire the raw materials needed to produce a product or service
183
Components of SCM
1. Plan
2. Source
3. Make
4. Deliver
5. Return
184
Interorganizational Information Systems (IOS)
Information flows among two or more organizations
185
Push model
Make-to-stock. Organization must forecast demand
186
Pull model
Make-to-order. Companies only make what the customers want
187
Bullwhip effect
Erratic shifts in orders up and down the supply chain
188
Vertical integration
Business strategy in which a company purchases upstream suppliers to ensure suppliers are available as needed
189
Just-in-time (JIT) inventory system
Supplier delivers the exact amount of parts to be assembled at the perfect time
190
Vendor-managed inventory (VMI)
Occurs when the supplier manages the inventory process
191
Electronic data interchange (EDI)
Communication standard that enables business partners to exchange documents electronically
192
Extranets
Link business partners over the internet by providing access to certain areas of each other's corporate intranets
193
Procurement portals
Automate business processes involved in purchasing or procuring products between a buyer and suppliers
194
Distribution portals
Automate the business processes involved in selling or distributing products from a single supplier to multiple buyers
195
Application portfolio
List of existing and potential IT applications
196
IT Strategic Plan
Set of long-range goals that describe the IT infrastructure and identify the major IT initiatives
197
Objectives of the IT strategic plan
1. Aligned with organization's strategic plan
2. Must provide IT architecture that networks users, applications, and databases
3. Must efficiently allocate IS development resources among projects
198
IT steering committee
Committee created to establish IT priorities and ensure that the MIS function is meeting the organization's needs
199
IS operational plan
Plan that consists of a clear set of projects that the IS department will complete
200
Elements of the IS Operational Plan
1. Mission
2. IS environment
3. Objectives of the IS function
4. Constraints of the IS function
5. Application portfolio
6. Resource allocation and project management
201
Pros of purchasing a prewritten application
Cost-effective and time-saving.
202
Cons of purchasing a prewritten package
A single software package can rarely satisfy all an organization's needs
203
Customizing a prewritten application
Attractive option if the software vendor allows the company to modify the application
204
Cons of customizing a prewritten application
Not good if the software is expensive or likely to become obsolete.
205
Pros of leasing the application
Compared with buying and developing applications, leasing can save time and money
206
Cons of leasing an application
Leased packages may not fit the company's application perfectly
207
80/20 rule
If the software meets 80% of the company's needs, then the company should consider modifying the processes to use the remaining 20%
208
What sized companies is leasing attractive to?
Small and medium sized enterprises that cannot afford major IT investments
209
Application service providers
Agent or a vendor that assembles the software needed by enterprises and then packages with services
210
Software-as-a-service (SaaS)
Vendor hosts applications and provides them as a service to customers over a network
211
Outsourcing
Acquiring IT applications from outside contractors or external organizations
212
Advantages of outsourcing
Allows for experimenting with IT technologies and to obtain access to outside experts
213
Disadvantages of outsourcing
Companies frequently must place their valuable corporate data under the control of the outsourcing vendor
214
Continuous application development
Process of steadily adding new computer code to a software project when the code is tested and written
215
Systems development life cycle (SDLC)
Structured framework that consists of sequential processes which develops IS
216
SDLC processes
1. Investigation
2. Analysis
3. Design
4. Programming and testing
5. Implementation
6. Operation and maintenance
217
Systems analysts
IS professionals who specialize in analyzing and designing information systems
218
Programmers
IS professionals who either modify programs or write new programs
219
Technical specialists
Experts on a certain type of technology
220
Systems stakeholders
Everyone who is affected by changes in a company's information systems
221
Systems investigation
Addresses the business problem by means of a feasibility study
222
Feasibility study
Analyzes which of three solutions fit the business problem
223
Three basic business problem solutions
1. Do nothing and continue to use the existing system unchanged
2. Modify or enhance the existing system
3. Develop a new system
224
Technical feasibility
Determines whether the company can develop or buy what is needed
225
Economic feasibility
Determines whether the project is an acceptable financial risk
226
Behavioural risk
Addresses the human issues of the systems development project
227
Systems analysis
Process whereby systems analysts examine the business problem that the organization plans to solve
228
Systems design
Describes how the system will resolve the business problem
229
Programming
Translating the design specifications into computer code
230
Implementation
Process of converting from an old computer system to a new one. Three major strategies: direct, pilot, and phased
231
Direct conversion
Old system is cut off, and the new system is turned on at a point in time. Least expensive and most risky
232
Pilot conversion
Introduces the new system in one part of the organization.
233
Phased conversion
Introduces components of the new system in stages. Large organizations combine the pilot and phased approaches
234
Parallel conversion
Old and new systems operate together for a time
235
Joint application design
Group-based too for collecting user requirements and creating system designs
236
Rapid application development
Systems development method that combines multiple tools to rapidly produce a high-quality system
237
Agile development
Software development methodology that delivers functionality in rapid iterations which are measured in weeks
238
Scrum approach
Maximizes the development team's ability to deliver iterations quickly and to respond effectively to new user requirements
239
Primary roles of scrum
1. Scrum master
2. Product owner
3. Team
240
Scrum master
Maintains the processes
241
Product owner
Represents the business users and any other stakeholders in the project
242
The team
A cross-functional group of about seven people who perform analysis, coding, implementation, and testing
243
End-user development
Approach in which the organization's end users develop their own applications with no assistance from teh IT department
244
Shadow IT
Technology implemented by end-users without receiving proper approvals from the organizational IT department
245
Prototyping
Defines an initial list of user requirements, builds a model of the system and refines the system
246
Computer-aided software engineering (CASE)
Group of tools that automate tasks in the SDLC
247
Upper CASE tools
The tools automate early stages of the SDCL
248
Lower CASE tools
Tools automate later stage of the SDLC
249
Integrated Case tools (ICASE)
Tools that provide links between upper CASE and lower CASE tools
250
Component-based development
Uses standard components to build applications
251
Object-orientated development
A systems development methodology that begins with aspects of the real world that must be modelled to perform a task
252
Containers
Method of developing applications that run independently of the base operating system of the server
253
