Procurement (electronic ordering from suppliers) IS can be used for Synergism companies together for lower operating costs (tying together disparate units) Enhancing core competencies Network-based Strategies Network economics (value created by amount of users) Virtual Company Model (enhance flexibility/adaptability) Business Ecosystems (niche firms use keystone firms as platforms to address niche market demand, egg phones and android) Click and mortar – Two domains to capture value, has tactile aspect. IS would be more complex, difficult to integrate into system. Click only (pure play) – Low cost, very flexible/adaptable.
No tactile aspect, competition fiercer, online security issues. Intranets/Extranets Information timeliness/accuracy Technology Integration (allows separate systems to communicate cross-platform) Low cost, Hall value (not much training name, automation AT processes, quickly access to information) Collaboration easier Video conferencing E-Tailing Product benefits – unlimited variety/number Place benefits – ubiquity Price benefits – high inventory turnover, large volume, lower prices due to lower costs Able to target Long Tail Drawbacks Physical product delivery Direct product experience (tactile) Enterprise Resource Planning (ERP)
Connects systems and legacy systems of an organization together Can be integrated (may not be perfect fit) or best of breeds (closes gaps in systems, more $) Core components (Internal focus) Financial Management Operations Management HRS Management Extended components (external focus) SCM CRM Cannot communicate across organizational boundaries. Mostly internal.
Value Chain: inbound logistics->processing->outbound logistics->sales and marketing->after-sale service (money is bottom to top)(info both way) Supply chain management (SCM) (aims to reduce cost) Supply chain: a collection of companies and prices involved in moving a product from he suppliers of raw materials, to the suppliers of intermediate components, to final production, and ultimately to customer.
Types of inventory systems Just-in-time Production (minimize investment in storage space and inventory as they are not value-adding activities) Vendor-Managed Inventory (vendors monitor stock levels and sales data) Related issues of vendor-managed inventory: security issues, reducing bargaining power of buyers, different systems) Bullwhip Effect (errors in end supply chain forecast can cause large errors in early supply chain) Corporate Social Responsibility Product Recalls
Sustainable Business Practices (ethical worker treatment, environmental practices) Supply chain planning (SSP) Demand forecasting Distribution planning Production scheduling Inventory and buffer planning Supply chain execution (SEE) Product flow Information flow (orders, delivery status – complete removal of paper documents) Financial flow supply canal analytics uses to moonlit supply canal performance supply canal visibility (ability to track product flow) Customer Relationship Management (CRM): aims to maximize revenue, for existing and new customers Operational CRM (automation of front-end processes, interaction tit customer) Sales Force Automation (SEA) Customer Service and Support (CSS) {Helps to communicate with customer easily}/ Enterprise Marketing Management (MEME) (promotional campaigns) Analytical CRM (analysis of customer behavior and perceptions) (helps the company to identify how’s the sales goings on Collaborative CRM (provides effective communication between customer and org) Sales pipeline: the process of achieving sales of products and services: 1, discovery: preaching potential customers who have wants or demands to purchase products and similar substitute 2, proposal,: quoted price to customers , negotiations: get to sign the deal and confirm transaction. – There is a trade off between effectiveness and efficiency , therefore, people has to maintain a balance between effectiveness and efficiency SEES(top)->ADS->Mils->TAPS(bottom) (hierarchy) (more structured decision-making from top to bottom) Transaction processing system (TAPS) Performs and records routine transactions Management information systems (MIS) (structured decision making) Provides middle management with information on company’s performance Used to monitor, control and predict performance Converts data from TAPS into reports/summaries
Decision-support systems (ADS) Supports non-routine decision making Uses information from TAPS, MIS and external sources (competitor pricing, stock prices) Consists of both unstructured and structured elements Executive support system (SEES) with appearance of dashboard becoming cheaper due to customization and more users Problem for the hierarchy: only usable for structured information information asymmetry accuracy of data Structured Query Language (SQL) is commonly used to retrieve information from databases Business intelligence can use operational systems data (such as data from sere of ALTO, online transaction processing) for its applications. Master data – data most important in the operation of the business Data can be stored in data warehouses. However, they need data cleansing to standardize the data. Data mart – categorization of data from data warehouses customized for a specific group.
Stages in decision making: 2 types of business intelligence system: Data mining: find for more hidden relationship through without any ideas about the existence of those relationship and data that they do not collect it before. OLIN: multidimensional analyzing, summarizing data to get International Trot excellent data hey can collect Trend of 81: Social media: new platform for intelligence, help business identify customer’s view about performance and customer relationship of business in the market. Cloud service: minimize cost of storage of data, minimize time of processing and summarizing data. Visualization(important): (real time updating) easier for business to do and understand the data, easier to identify potential and most influential customers.
Business Intelligence (81) components Information and knowledge discovery (Collects current data) Ad hoc queries and reports Online Analytical Processing (OLAP) (multidimensional) hidden relationships, complements OLAP) Association discovery Clustering (attribute based) and classification (pre-knowledge segmentation) Unstructured data analysis Web content mining (web crawler collects wealth of information from websites, stores in data warehouse) Text mining (extracts information from text documents, or from web content mining data warehouse) Web usage mining (slipstream data – path of user through a site) Decision making support Business Analytics (predictive analysis, identifies trends/outcomes, depends heavily on underlying models/assumptions) Decision support systems (ADS)
Intelligent systems Expert systems (series of questions to narrow down solution) Neural networks (draws conclusions from patterns, deals with noisy data) Intelligent agents (bots, egg web crawlers) Knowledge management systems Tacit knowledge (in a person’s mind) Explicit knowledge (can be archived, codified) Information Visualization Dashboards Soft data (non-analytical data, egg news reports) Hard data (usually from data warehouse) Geographic Information Systems (GIS) Creating, analyzing, storing and managing geographical information Used in dealing with spatial decisions Visual Analytics Combines analysis techniques and interactive visualization Allows users to analyses information gathered, making sense of noisy data or unexpected trends Building information systems – Testing: conversion strategies Parallel – old and new system run together. Has backup Direct cutover – instant replacement of old system. No backup Pilot study – Introduce new system to a limited area of the organization.
Has backup Phased approach – Introduction by stages, either by functions or business units. Has backup Dimensions AT project rolls Size Structure Project team’s experience with technology Giant chart – schedule of project start/end dates Program Evaluation and Review Technique (PERT) chart – graphically depicts project tasks and their relationships in a network diagram. Computer virus: an independent computer program that copies themselves from one computer to another . Not All hacking activities are illegal such as cracking is legal as it gains authorization from companies for testing the system’s security. A denial of service attack : where hackers flood the network or web with many thousands of false communications.
Computer crime: need for 2 elements: purpose and computer Automated control: Authentication: verifying the identity of users Tokens, smarted, biometrics Spoofing – identity theft, redirection Sniffing – monitoring information traveling over a network Protection technologies Authentication (use of passwords, tokens, smart cards, biometric authentication (fingerprints, voice)) Firewalls Network Address Translation (NAT) – conceals host IP address Application proxy filtering – proxy communication Intrusion detection systems Antivirus/interweaves Unified threat management (TM) – combination of various security tools Encryption Secure Sockets Layer (SSL) – between two computers
