The Role of IT in Business Flashcards
refers to the network of businesses, individuals, organizations, resources, and activities that are involved in creating and delivering a product or service to customer
supply chain
management of a wide range of components and processes, such as storing raw materials, managing the inventory, warehousing, and moving finished products from the point of manufacture to the point of consumption
Supply chain management
are an integral part of any company that produces a product to sell to consumers, end users, or other companies
supply chains
plays an integral part of supply chain management
information technology (IT)
This process ensures that inventory is kept to a minimum, reducing costs and improving efficiency
just-in-time methodology
a form of inventory management that requires working closely with suppliers so that raw materials arrive as production is scheduled to begin, but no sooner
just-in-time methodology
The Five Business Departments
- Accounting
- Production or operations
- Research and development
- Marketing
- Human resource
knows how many cars need to be sold for the business to be profitable
Business Department
accounting department
needs to know exactly how many cars to produce
Business Department
production department
is betting that its new innovations will sell more cars
Business Department
research and development department
knows which models of the Camaro certain people are most likely to buy and what the car’s appropriate price should be
Business Department
marketing department
knows how many people it takes to make a car
Business Department
human resources department
are accounting rules for preparing, presenting, and reporting financial statements so an organization and its investors can have a standard set of reports regarding a business’s well-being
generally accepted accounting principles (GAAP)
were enacted to counter fraudulent reporting
Sarbanes-Oxley Act of 2002 (SOX)
Many businesses make tangible products like cars and machinery
goods
Others create intangible products
services
focus their efforts on which goods and services to produce, how to produce them, and what it will cost to produce them
production departments
also focus their attention on the most efficient and cost-effective way to produce goods and services to maximize profits
production departments
take a creative and systematic approach to evolve a business’s original idea and devise new ones
research and development department
A review of the subject and what has already been done in the world of business to determine whether any of it has a commercial application for the business
Basic research
Research that is focused on developing a commercial product or process to meet customer or industry requirements and needs. This includes studying what other solutions exist in the market
Applied Research
The stage of R&D where the findings of the research are used for the production of products, including the results of the simulations run using IT to develop material requirements and methodologies of production
Development Research
the promotion of a business’s products and/or services is the fourth core business department
marketing
focus on customers and have core responsibilities like advertising and branding a business’s products and services
marketing departments
a business will charge less for a product when the supply of the product is plentiful and charge more for the same product in a region where the product is scarce
economic theory
is a crucial aspect of IT that aims to enhance a website’s visibility in search results when users look for relevant keywords
Search engine optimization (SEO)
Marketing advertisements within the results pages have been paid for by businesses so that their products or services are displayed prominently (usually at the top or side) of the search page based on the search criteria
search engine results pages (SERPs)
Paid search campaigns
Displayed below or alongside the paid advertisements, these query results are calculated algorithmically, based on factors such as keyword relevance, content quality, and site authority
search engine results pages (SERPs)
organic search results
where the brand is charged only when a user clicks on the advertisement
pay-per-click (PPC) or cost-per-click (CPC) advertising
the most important asset in any business
people
involve ensuring compliance with employment laws and regulations, managing employee benefits and compensation, addressing employee grievances, and maintaining a healthy work environment
human resources department
the practice of using data analysis techniques to understand, measure, and improve various aspects of human resources management within an organization
HR analytics or workforce analytics
involves two or more people or departments working together towards a common business goal
business collaboration
Measures and provides financial information about an organization
department
accounting
Prepares goods and services to be sold in the most efficient and cost-effective way
department
production/operations department
Presents a creative and systematic approach to evolve a business’s original idea and devise new ones
department
research and development
Focuses on customers and is responsible for advertising and branding a business’s products and services
department
marketing
Is responsible for the administration of a business’s personnel
department
human resources
refers to the acceptance of and commitment to a particular idea or course of action
Buy-in
Which business department closely aligns with the customer-centric IT services aimed at enhancing core business functions in a cutting-edge organization known for implementing emerging technologies?
marketing
Which tool helps teams track progress, share documents, communicate effectively, and collaborate efficiently on projects, thereby supporting common business goals?
project management software
enables teams to track progress, share documents, communicate effectively, and collaborate efficiently on projects, thereby supporting their common business goals
project management software
Which term describes a private computer network for sharing corporate information, collaboration tools, and computing services?
intranet
for internal use only
intranet
are the most significant implementation of an IT system
transaction processing systems (TPS)
Services like Apple Pay, Google Pay, and Square Cash enable users to make contactless payments, transfer money, and manage transactions through their smartphones
Mobile wallets and peer-to-peer payment apps
Platforms like Stripe, PayPal, and Adyen facilitate online payment processing for businesses, handling transactions for a wide range of industries and currencies
E-commerce payment gateways
Solutions like Marketo, Mailchimp, and Pardot process transactions associated with email campaigns, lead generation, and customer engagement, helping businesses optimize their marketing efforts
Digital marketing automation tools
are typically presented in a document format, such as PDF or Word, and may include charts, graphs, and tables to illustrate data
executive reports
provide an in-depth analysis of specific business aspects, events, or metrics
executive reports
often created periodically, such as monthly, quarterly, or annually, to review the company’s performance
executive reports
are used to support tactical decisions that refer to specific actions that serve a larger purpose
tactical reports
a summary of the detailed TPS reports and can sometimes be used for strategic decisions, but it is generally used for tactical decisions that require specific actions
Management reporting
are visual representations of data, typically displayed in a web-based or software application interface
Executive dashboards
provide a quick, real-time, and easily accessible overview of the company’s performance
executive dashboards
focus on presenting a high-level view of the data, emphasizing key metrics and KPIs
platform
dashboards
information systems that manage the information on a company’s customers, including all interactions with each customer
Customer relationship management systems (CRM)
A CRM is three things to a business:
- technology
- strategy
- process
are information systems that are interactive software-based systems designed to assist decision makers in compiling useful information from business data and business models to make large business decisions
Decision support systems (DSS)
Decision support systems need three elements for accurate decision-making:
- business intelligence
- data analytics
- data management capabilities
a framework for gathering, managing, and analyzing data
geographic information system (GIS)
It analyzes locations and organizes layers of information into visuals using computer-generated maps
geographic information system (GIS)
How does a Customer Relationship Management (CRM) system benefit a business?
Facilitates targeted marketing strategies
can track customer interactions and preferences, providing insights that can inform targeted marketing strategies to increase sales
customer relationship management (CRM)
How can a business address the challenge of capturing excessive amounts of data in its IT systems?
Limit data capture to necessary information only
Which type of reporting should a company utilize when using customer relationship management (CRM) data on its call volume to determine call center staffing?
Tactical
What is the purpose of reporting systems in business?
Facilitate decision-making
focuses on production requirements and simulation studies
development research
a system that collects and stores customer transactions data.
Transaction processing system (TPS)
is a type of online advertising and is not related to increasing a web page’s visibility in search engine results
Search engine results page advertising (SERP)
is a marketing technique used to increase a web page’s visibility in search engine results
Search engine optimization (SEO)
the primary language used to write database queries that can retrieve data for reports
Structured Query Language (SQL)
a server that listens for client requests that serve web documents like web pages
web service
What is the process of using clustered servers to provide virtual resources that can accommodate the demand of a website?
cloud web hosting
What is a function of computer-aided design/computer-aided manufacturing (CAD/CAM) in the manufacturing process?
Reduce development time and provide detailed instructions for manufacturing
allows businesses to store, manage, and access data and applications over the internet rather than on local servers or computers
cloud computing
Social media platforms like Facebook, Twitter, and Instagram allow businesses to reach a wider audience and connect with customers in new and innovative ways.
Social media marketing
widely used technology that enables devices to communicate with each other wirelessly within a short range
bluetooth network
are designed to receive signals from an app on a phone, in a car, from other devices, and from geostationary satellites so that a precise location can be determined
Global positioning systems (GPS)
Which type of wireless network uses a short-range network for connection between a cell phone and another device, such as a speaker?
Bluetooth
How has the use of browser-based web development tools affected the demand for professional web developers?
It has decreased the need for professional web developers
the discipline dealing with what is good and bad and with moral duty and obligation
ethics
principles of right and wrong in human behavior and then conforming to them
Morals
involve issues such as privacy, security, and data protection, and they have become increasingly relevant with the rise of new technologies such as artificial intelligence and big data
Ethical dilemmas in information technology
A definitive right given to the owner of an original work
Copyrights
Words, designs, and so forth that identify a source of a product
Trademarks
Established to encourage innovation and technological advances and protect the rights of the inventor
Patents
Information that is private or not known outside the company and if disclosed would cause harm or loss to the corporation
Trade secret
let users on their network exchange music files (MP3s) with anyone in the world and monetize the free service through advertising
Napster’s business model
Which ethical dilemma is created if music is shared on a website without the artist’s authorization or knowledge?
The user has bypassed an artist’s copyright
used to conduct analytics and business intelligence activities to gain insights into business through data.
Decision support system (DSS)
is essential for real-time connectivity and data transfer between devices
High-speed internet
available everywhere, and the drone can use GPS to find the correct location
GPS
A graphic designer creates a website for a small business using a browser-based web development platform. The graphic designer copies an image file of a large company’s logo and places the words “Just Buy It” underneath the logo and places the logo prominently on the website.
Which intellectual property law does this website violate?
Trademark
What do Internet of Things (IoT) devices need to be able to communicate with other devices?
Unique identifier on the internet
Which issue hinders the effective use of decision support systems (DSS)?
The collection of too much data
Why does management use transaction processing system (TPS) data?
Tactical decision-making
Which aspect of human resource management is supported by the IT department?
Administration of information on employees
What does the Sarbanes-Oxley Act of 2002 require of IT departments in companies located in the United States of America?
Ensure the accuracy and fair reporting of financial statements
What is the purpose of radio frequency identification (RFID)?
Tracking the inventory of the parts from a supplier
Which type of network configuration should be used when implementing a transaction processing system (TPS)?
Intranet
