Management Information Systems Terms Test 1

Digital Systems
Computers and related devices that use the binary system (two digits)
Problem
any undesirable situation
Decision
arises when more than one solution to problem exists
Purpose of Info systems
TO HELP PEOPLE IN ORGANIZATIONS MAKE BETTER DECISIONS.
Data
a given or fact
Information
facts or conclusions that have meaning within context
Process
the manipulation of data, usually with the goal of producing information
System
array of components that work together to achieve goal or goals (it does so by accepting input, processing it, and producing output in an organized manner)
Subsystem
component of larger system
Systems thinking
thinking of an organization in terms of subsystems; powerful management approach that creates a framework for problem solving and decision making
Database
large collection of related records
Synergy
combining resources to produce output that exceeds the sum of outputs of the separate resources by themselves; Greek “work together”
Computer-based Information system
system with one or more computers at center
Trends in IS
*Growing power/decreasing cost of computers
*Growing capacity/decreasing costs of data storage devices
*Increasing variety/ingenuity of computer programs
*Available, reliable, affordable, and fast communications links to Internet
*Internet Growth
*Increasing computer literacy of the workforce
Input
collect and introduce data to system
Transaction
a business event, usually entered as input
Transaction Processing System (TPS)
a system that records transactions and processes transactions
Data processing
performs calculations on input
Output
what is produced by the information system; includes devices such as printers and speakers
Storage
maintaining vast amounts of data and information
Telecommunications
communication technologies are used to support the four data processing functions (receive input, process data, display information, store data, transfer data)
Management Information System
A SYSTEM THAT SUPPORTS PLANNING, CONTROL, AND MAKING DECISIONS
Supply Chain
sequence of activities involved in producing and selling products or services (for products includes marketing, purchasing raw materials,etc & for services includes marketing, monitoring customer portfolios, etc)
Supply Chain Management Systems (SCM)
systems that support the sequence of activities involved in producing and selling products or services and are linked to become one large IS providing information on any stage of a business process.
Enterprise Resource Planning Systems
systems that occur inside the walls of business and mainly serve managers in monitoring and modifying business practices; also supports the planning of shipping resources such as personnel, funds, raw materials, and vehicles.
Customer Relationship Management Systems (CRM)
systems for managing relations with customers
Business Intelligence Systems (BI)
***Systems that glean relationships and trends from raw data to help organization compete better
Data warehouse
large database that usually stores transactional records
Decision support System (DSS)
system that SUPPORTS decision making; extrapolates data to predict outcomes…answers “what if?”
Expert system (ES)
system that supports knowledge-intensive decision making; uses artificial intelligence techniques
Geographic Information System (GIS)
system that is used to tie data to physical locations
Functional Business Area
SERVICES WITHIN A COMPANY THAT SUPPORT MAIN BUSINESS; includes accounting, finance, marketing, and human resources
E-Commerce
buying and selling goods and services through the Internet
Help desk technician
supports end users in their daily use of IT; often provides help via telephone
Systems analyst
Researches, plans, and recommends software and systems choices; responsible for developing cost analyses, design considerations, implementation timelines, and feasibility studies
Database administrator (DBA)
responsible for databases and data warehouses
Network administrator
acquires, implements, manages, maintains, and troubleshoots networks; implements security
System administrator
manages an organization’s computer operating systems; must ensure that operating systems work together, support business requirements, and function properly
Webmaster
creates and maintains Web site
Chief security officer (CSO)
supervises security of information system; usually reports to chief information officer (CIO)
Chief information officer (CIO)
responsible for all aspects of information system; often a corporate vice president
Chief technology officer (CTO)
has similar duties as CIO
Strategy
framework, or approach, to obtaining an advantageous position
Business strategy
a plan to help an organization outperform its competitors; often done by creating new opportunities, not beating rivals
Strategic Information system (SIS)
an information system that helps seize opportunities; company-wide and crosses departments
Strategic advantage
using strategy to maximize company strengths
Competitive advantage
WHEN THERE IS SOMETHING THAT YOUR CUSTOMERS CAN NOTICE THAT YOU DO BETTER THAN YOUR COMPETITORS; achieved when a for-profit company increases market share and increases profits significantly
Switching costs
expenses incurred when customer stops buying from one company and starts buying from another
First mover
organization that is first to offer a new product or service; usually results in superior brand name, better technology, more experience, or critical mass
Critical mass
body of clients that is large enough to attract other clients
Product differentiation
persuading customers that your product is better than competitors’; usually achieved through advertising and customer experience
Alliance
two companies combining services; makes product more attractive; reduces costs; provides one-stop shopping
Affiliate program
linking to other companies and rewarding the linker for click-throughs
Bargaining power
leverage to influence buyers and suppliers; achieved by being major competitor or eliminating competitors; uses purchase volume as leverage over suppliers
Reengineering
ELIMINATING AND REBUILDING OPERATIONS FROM THE GROUND UP; often involves new machinery and elimination of management layers; frequently involves information technology
JetBlue
airline company that entered a formerly hurting market with great success
Late mover
enters the market later than other competitors; can be viewed as advantage; implements latest available technologies; not burdened with legacy systems
Bleeding edge
FAILURE OCCURRING BECAUSE OF COMPANY TRYING TO BE ON LEADING EDGE; no prior experience from which to learn; implementation costs are greater than anticipated; technology ends up losing money for company
Effectiveness
THE DEGREE TO WHICH A GOAL IS ACHIEVED
Efficiency
THE RELATIONSHIP BETWEEN RESOURCES EXPENDED AND BENEFITS GAINED IN ACHIEVING A GOAL
Productivity
efficiency of HUMAN resources; improves when fewer workers are required to achieve the same goal
Productivity tools
software applications that improve productivity
Customer Relationship Management system (CRM)
SYSTEM THAT SERVES CUSTOMERS
Accounting information system
receives information from transaction processing systems (TPSs); automatically routes purchases to accounts payable; automatically routes sales to accounts receivable
Cost accounting systems
accumulate data about costs involved in producing specific products
Time to market
time between generating an idea for a product and completing a prototype
Brainstorming
process of a group of colleagues meeting and collaborating to generate creative solutions and new ideas
Computer aided design (CAD)
tools to create, modify, and store designs and drawings electronically
Rapid prototyping
creating one-of-a-kind products to test design in three dimensions
Computer aided manufacturing (CAM)
systems that instruct machines how to manufacture parts and assemble products
Supply chain
consists of procurement of raw materials, processing materials into goods, and delivering goods
Supply chain management
monitoring, controlling, and facilitating supply chains; logistics
Material requirements planning (MRP)
inventory control; determines when inventory needs to be restocked; can predict future need based on demand forecasts
Bill of materials (BOM)
list of all raw materials and subcomponent demands to produce a product
Economic order quantity (EOQ)
optimal quantity of a raw material that minimizes overstocking and saves cost, without missing production deadlines
Manufacturing resource planning (MRP II)
combines MRP with other related activities to plan the entire manufacturing process; uses master production schedule
Master production schedule
specifies how production capactity is to be used to meet customer demands
Just in time manufacturing
suppliers ship parts directly to assemply lines as needed; avoids warehousing costs
Radio frequency identification (RFID)
a technology containing circuity that allows recording of information about a product
Electronic product code (EPC)
a code on an RIFD tag that provides more information than the universal product code (UPC); information may include date of manufacturing, plant location, expiration date, destination
Customer relationship management (CRM)
designed to support any and all relationships with customers; supports the three areas of marketing, sales, customer service
Market research
helps discover populations and regions that are most likely to purchase product
Targeted marketing
promotes to people most likely to purchase products
Customer service
web provides automated service 24/7, includes FAQs, tracking systems, maintenance of customer profiles
Salesforce Automation
Equips traveling salespeople with information technology to improve productivity
Telemarketing
marketing over the telephone; caller has large database of consumer data
Computer telephony integration
allows computer to use telephone lines as input; caller ID can be used to locate customer data
Data mining
uses large data warehouses to find trends and shopping habits of various demographic groups
Inventory turns
the number of times the business sells its inventory per year
Enterprise Resource Planning system (ERP)
manages daily operations and facilities planning