Management Information Systems Chapter 1-3

Management Information Systems (MIS)
deals with the planning for, development, management, and use of information technology tools to help people perform all tasks related to information processing and management
Data
Raw facts that describe a particular phenomenon such as the current temperature, the price of a movie rental, or your age
Information
Data that have a particular meaning within a specific context
Business Intelligence
Collective information – about your customers, your competitors, your business partners, your competitive environment, and your own internal operations – that gives you the ability to make effective, important, and often strategic business decisions
Knowledge
1) It can provide contextual explanation for business intelligence
2) It can point toward actions to take to gain business intelligence
3) It can include intellectual assets such as patents and trademarks
4) It includes organizational know-how for things such as best practices
Garbage-In Garbage-Out
If the information coming into your decision-making process is in bad form (in), you’ll more than likely make a poor decision (out)
Information Granularity
Refers to the extent of detail within the information
Internal Information
Describes specific operational aspects of an organization
External Information
Describes the environment surrounding the organization
Objective Information
Quantifiably describes something that is known
Subjective Information
Attempts to describe something that is unknown
Technology-Literate Knowledge Worker
Knows how and when to apply technology
Information-Literate Knowledge Worker
1) Can define what information is needed
2) Knows how and where to obtain information
3) Understands the information once it is received
4) Can act appropriately based on the information to help the organization achieve the greatest advantage
Ethics
The principles and standards that guide our behavior toward other people
Information Technology (IT)
Any computer-based tool that people use to work with information and support the information and information-processing needs of an organization
Hardware
The physical devices that make up a computer
Software
The set of instructions that your hardware executes to carry out a specific task for you
Input Device
A tool you use to enter information and commands
Output Device
A tool you use to see, hear, or otherwise recognize the results of your information-processing requests
Storage Device
A tool you use to store information for use at a later time
Central Processing Unit (CPU)
The hardware that interprets and executes the system and application software instructions and coordinates the operation of all the hardware
Random Access Memory (RAM)
A temporary holding area for the information you’re working with as well as the system and application software instructions that the CPU currently needs
Telecommunications Device
A tool you use to send information to and receive it from another person or computer in a network
Application Software
The software that enables you to solve specific problems and perform specific tasks
System Software
Handles tasks specific to technology management and coordinates the interaction of all technology devices
porters Five Forces Model
Helps business people understand the relative attractiveness of an industry and the industry’s competitive pressures in terms of the following five forces:
Buyer power; Supplier power; Threat of substitute products or services; Threat of new entrants; Rivalry among existing competitors
Buyer Power
High when buyers have many choices from whom to buy, and low when their choices are few
Loyalty Programs
Reward customers based on the among of business they do with a particular organization
Competitive Advantage
Providing a product or service in a way that customers value more than what the competition is able to do
First-Mover Advantage
A significant impact on gaining market share by being the first to market with a competitive advantage
Supplier Power
High when buyers have few choices from whom to buy, and low when their choices are many
Threat of Substitute Products or Services
High when there are many alternatives to a product or service, and low when there are few alternatives from which to choose
Switching Costs
Costs that make customers reluctant to switch to another product or service supplier
Threat of New Entrants
High when it is easy for new competitors to enter a market, and low when there are significant entry barriers to entering a market
Entry Barrier
A product or service feature that customers have come to expect from organizations in a particular industry and that must be offered by an entering organization to compete and survive
Rivalry Among Existing Competitors
High when competition is fierce in a market, and low when competition is more complacent
Overall Cost Leadership
Offering the same or better quality product or service at a price that is less than what any of the competition is able to do
Loss Leader
A product sold at or below cost to entice customers into a store in the hope that they will also buy more profitable products
Differentiation
Offering a product or service that is perceived as being “unique” in the marketplace
Focus
Focusing on offering products and services 1) to a particular market segment or buyer group, 2) within a segment of a product line, and/or 3) to a specific geographic market… returants. legal office
Customer Self-Service System
An extension of a transaction processing system that places technology in the hands of an organization’s customers and allows them to process their transactions
Transaction Processing System (TPS)
A system that processes transactions within an organization
Run-Grow-Transform Framework (RGT)
An approach in which you allocate in terms or percentages how you will spend your IT dollars on various types of business strategies
Value-Chain Analysis
A systematic approach to assessing and improving the value of business processes within your organization to further increase its competitive strengths
Value Chain
The chain or series of business processes, each of which adds value to your organization’s products or services for customers
Business Process
A standardized set of activities that accomplishes a specific task
Primary Value Processes
The chain of processes that takes in the raw materials and makes, delivers, markets, sells, and services your organization’s products or services
Support Value Processes
Including infrastructure, human resource management, technology development, and procurement that ensure the smooth operations of the primary value processes
query and reporting tools
Are similar to QBE tools, SQL, and report generators in the typical database environment