Module 1 - 5 Flashcards
How does IT impact orgs.
Reduce # middle managers
Inc # employees reporting to single manager
Prom opp will dec
Comp for prom will inc
What is an info system?
- Message
- Context of the message
- Carrier (way to pass on the message)
Three market pressures
Market pressures
Technological pressures
Societal / political / legal pressures
Market pressures
Globalisation
Changing nature of workforce
Powerful customers
Technological pressures
Technological innovation and obsolescence- todays state of art products may be obsolete tomorrow- ever changing demands
Information overload - amount of information doubles almost every year, orgs need tools to handle these data processing demands
Societal / political / legal pressures
social responsibility
compliance with govt reg
ethical
Competitive strategy
statement that identifies a businesses approach to compete, goals and plans and policies required to carry out those goals
Strategic information system
provides competitive advantage by helping an organisation implement its strategic goals and increase its performance and productivity
Competitive Forces Model
- The threat of entry of new competitors; the threat new competitors will enter your market is high when entry is easy and low when there are significant barriers to entry. Entry Barriers are products or service features that customers have learned to expect from organisations in certain industry’s.
- The bargaining power of suppliers; supplier power is high when buyers have few choices and low when they have many choices. Therefore org prefer to have more suppliers so they have a stronger position to negotiate.
- The bargaining power of customers (buyers) ; high when they have multiple choices and low when they have fewer choices. For example- the internet have inc the bargaining power of buyers and loyalty programs dec the bargaining power of buyers.
- The threat of substitute products or services; if there are many alt to a product then the threat of substitution is high whereas if there are limited alternatives then it is low. For example- info based industries face the greatest threat of substitutions whereby CD’s or Books can be replaced by digital versions which are easily accessible to buyers. Switching costs are the costs in money and time, of a decision to buy elsewhere for example the cost to switch phone plans is high (financial nature)
- The rivalry among existing firms in the industry; threat of rivalry is high when there is intense competition among many firms in an industry.
Business IT Alignment
Tight integration of the ICT function with strategy … ICT function directly supports the business objectives of the organisation
Six characteristics for good business IT alignment
- Organisations view IT/ICT as an engine of innovation that continually transforms the business, often creating new revenue streams
- Org view their internal and external customers and customer service function as important
- Org rotate IT/ICT professionals across job functions and departments
- Org provide overarching goals that are completely clear for each IT/ICT employee
- Organisations ensure that IT/ICT employees understand how the organisations make and lose money
- Create a vibrant and inclusive company culture
What is DATA, INFORMATION and KNOWLEDGE?
Data is the raw (unprocessed) facts that have some relevancy (albeit unknown) to an individual or organisation
e.g. the raw score of 88% STATISTIC
Information is data that has been processed or given some structure that brings meaning to an ind or org
e.g. score of 88% for ISYS1000 CONTEXT
Knowledge is when we apply the data
e.g. 88% for ISYS1000 is a high distinction APPLICATION
Databases minimise the following problems
- Data redundancy; the same data are stored in many places
- Data isolation; applications cannot access data associated with other applications
- Data inconsistency ; various copies of the data do not agree
- Data security; keeping the org safe from theft , hackers etc
- Data integrity; meet constraints and be reliable
- Data independence
Database
a living, electronic representation of organisational reality. The reality consists of logically distinct entities of interest to the organisation that are interrelated to each other by business rules that enable their tracking and management by the database system.
Database management systems:
a database is a shared collection of logical related data (and a description of this data) designed to meet the information needs of a organisation.
Data warehouse
a repository of historical data organised by subject
Can be external to company / organisation
Supports decision makers in the organisation
Data mart
Low cost, scaled down version of a data warehouse
Designed for the end user needs in a strategic business unit or a department
Three kinds of knowledge
- Knowledge management
- Explicit knowledge (kinda info) e.g. policies
- Tacit knowledge e.g. experience, insights
Business Intelligence
comprehensive, cohesive and integrated set of tools and processes used to capture, collect, integrate, store and analyse data with the purpose of generating and presenting information to support business decision making
Goal of BI is to allow
Identify new business opportunities
Implement effective strategy based on insights provided
Providing competitive market advantage and long-term stability
Architecture
Data warehouse; collection of integrated subject orientated databases supply info required for decision making
Business analysts; tools for analysing data
Business performance management; methodologies and tools for strategising and monitoring performance
User interface; dashboard, how users interact with the system
Benefits of BI systems
Accurate real time view of overall corporate performance and its ind parts
Faster more accurate reporting better accountability
Improved decision making
Improved strategies, plans and tactical decision
Time savings
All views are of the same or contrived same data
Improved customer service
Increased revenue
Business Analytics
» BA refers to the skills, technologies, practices for continuous
iterative exploration and investigation of past business
performance to gain insight and drive, business planning
Data Mining
» refers to the process of searching for valuable business info in large
databases, data warehouses, or data marts. Involves:
1. predicting trends and behaviours
2. identifying previously unknown patterns
