Exam 1-chp 1 INFO

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Exam 1-chp 1 INFO
2013-09-07 16:39:07

Exam Chp 1,2,3
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  1. How information systems are transforming business
    • -Increase in wireless technology use, Web sites
    • -Increased business use of Web 2.0 technologies
    • -Cloud computing, mobile digital platform allow more distributed work, decision-making, and collaboration
  2. Globalization opportunities in Information System
    • -Internet has drastically reduced costs of operating on global scale
    • -Presents both challenges and opportunities
  3. In the emerging, fully digital firm
    • -significant business relationships are digitally enabled and mediated
    • -Core business processes are accomplished through digital networks
    • -Key corporate assets are managed digitally
  4. Digital firms offer greater _________ in organizations and management
    • flexibility
    • -Time shifting, space shifting
  5. Business firms invest heavily in information systems to achieve 6 strategic business objectives
    • 1. Operational excellence
    • 2. New products, services, and business models
    • 3. Customer and supplier intimacy
    • 4. Improved decision making
    • 5. Competitive advantage
    • 6. Survival
  6. Operational Excellence
    • -Improvement of efficiency to attain higher profitability
    • -Information systems, technology and important tool in achieving greater efficiency and productivity
    • -Walmart's RetailLink system links suppliers to stores for superior replenishment system
  7. New products, services, and business models:
    • -Business model: describes how company produces, delivers, and sells product or service to create wealth
    • -Information systems and technology a major enabling tool for new products, services, and business models. Ex: apple's ipod, itunes, iphone, ipad, google's android OS, and netflix
  8. Customer and supplier intimacy
    • -Serving customers well leads to customers returning, which raises revenues and profits. Ex: High-end hotels that use computers to track customer preferences and use to monitor and customize environment
    • -Intimacy with suppliers allows the to provide valid inputs, which lowers costs. Ex: J.C. Penny's information system which links sales records to contact manufacturer
  9. Improved decision making
    • -Without accurate information: managers must use forecasts, best guesses, luck. Leads to: Overproduction, underproduction of goods and services, misallocation of resources, poor response time. Poor outcomes raise costs, lose customers.
    • -Example: Verizon's WEb-based digital dashboard to provide managers with real-time data on customer complaints, network performance, line outages, etc.
  10. Competitive advantage
    • -Delivering better performance
    • -Charging less for superior products
    • -Responding to customers and suppliers in real time
    • -Example: Apple, Walmart, UPS
  11. Survival
    • -Information technologies as necessity of business
    • -Maybe: Industry-level changes, e.g., Citibank's introduction of ATMs, Governmental regulations requiring recordkeeping. Ex: Toxic substances Control Act, Sarbanes Oxley Act
  12. Information system
    • -Set of interrelated components
    • -Collect, process, store, and distribute information
    • -Support decision making, coordination , and control
  13. Information vs. data
    • Data are streams of raw facts
    • Information is data shaped into meaningful form
  14. 3 activities of information systems produce information organizations need:
    • 1. Input: captures raw data form organization or external environment
    • 2. Processing: Converts raw data into meaningful form
    • 3. Output: Transfers processed information to people or activities that use it
  15. feedback
    Output returned to appropriate members of organization to help evaluate or correct input stage
  16. Computer/Computer program vs. information system
    Computers and software are technical foundation and tools, similar to the material and tools used to build a house
  17. Organizational dimension of information systems: Hierarchy of authority, responsibility
    • senior management
    • middle management
    • operational management
    • knowledge workers
    • data workers
    • production or service workers
  18. Management dimension of information systems
    • Managers set organizational strategy for responding to business challenges
    • in addition, managers must act creatively:
    • -creation of new products and services
    • -occasionally re-creating the organization
  19. Technology dimension of information systems
    • computer hardware and software
    • data management technology
    • networking and telecommunications technology
    • -networks, the internet, intranets and extranets, World wide web
    • IT infrastructure: provides platform that system is built on
  20. Business perspective on information systems
    • Information system is instrument for creating value
    • Investments in information technology will result in superior returns:
    • - ¬†productivity increases
    • - ¬†revenue increases
    • - ¬†superior long-term strategic positioning
  21. Business information value chain
    • raw data acquired and transformed through stages that add value to that information
    • value of information system determined in part by extent to which it leads to better decisions, greater efficiency, and higher profits
    • Business perspective: calls attention to organizational and managerial nature of information systems
  22. Investing in information technology does not guarantee good returns
    Considerable variation in the returns firms receive from systems invetments
    • Adopting the right business model
    • Investing in complementary assets (organizational and management capital)
  23. Complementary assets:
    • Assets required to derive value from a primary investment
    • Firms supporting technology investments with investment in complementary assets receive superior returns
    • Example: invest in technology and the people to make it work properly
    • Complementary assets include:
    • -organizational assets, e.g., appropriate business model, efficient business processes
    • -managerial assets, e.g., incentives for management innovation, teamwork and collaborative work environment
    • -social assets, e.g., the internet and telecommunications infrastructure, technology standards
  24. Technical approach to information systems
    • emphasizes mathematically based models
    • computer, science, management science, operations research
  25. Behavioral approach to information systems
    • Behavioral issues (strategic business integration, implementation, etc.)
    • psychology, economics, sociology
  26. MAnagement information systems
    • Combines computer science, management science, operations research and practical orientation with behavioral issues
    • Four main actors
    • -Suppliers of hardware and software
    • -business firms
    • -managers and employees
    • -firm's environment (legal, social, cultural context)
  27. Approach of this book: Sociotechnical view
    • Optimal organizational performance achieved by jointly optimizing both social and technical systems used in production
    • helps avoid purely technological approach