Shared Flashcard Set

Details

IS midterm #1
IS midterm #1
99
Business
Undergraduate 3
10/28/2012

Additional Business Flashcards

 


 

Cards

Term

IT's impact on business today - *

 

Name two ways business has been influeced by IT

 

 

Definition

Internet popularity

  • High percentage of users
  • Email
  • Facebook
  • New websites
News & Media
  • Blogs
  • E-news
  • Twitter
Term

Information Technology Capital Investment - ***


What effect does IT investment have on Total investment?

Definition
IT is the main driver of total investment over the past few decades.
Term
A business information system - **
 
After receiving an input what 4 processes does an Info System do to create an output?
Definition
  • Processing
  • Classify
  • Arrange
  • Calculate
Term
Inoformation Systems is made up of what 3 broad catagories? *
Definition
  • Organization
  • Technology
  • Management
Term
Management Information Systems is made up of 3 Technology and 3 Behavioral approaches. List them. *
Definition

Tech:

  • Management Science
  • Computer science
  • Operations research

Behavioral:

  • Socialogy
  • Economics
  • Psychology
Term
Tech Dimensions of IS - **
Definition
  • Hardware
  • Software
  • Storage
  • Communications technology
  • Networks
Term

Organization-IT Interdependence *

 

IS communicates Business objectives and processes with what 3 aspects of software?

Definition
  • Hardware
  • Data management
  • Telecommunications
Term

Strategic Business Objectives of IT **

 

There are 6 objectives, with examples.

Definition
  • Operational excellence
    • UPS
  • New products, services, and business models.
    • Spotify (soft ownership)
  • Customer and supplier intimacy
    • JCPenny and TAL - utilize customer data
  • Improved decision making
    • Verizon - shortened customer service call times
  • Competative advantage
    • Dell - pull model
  • Survival
    • Citibank - first to put out ATM's
Term

Variation of ROI of IT ***

 

Explain the benefits and drawbacks of investing in IT

Definition

Benefit: on average investments in IT are far above other investments

 

Drawback: Variation is much higher across firms (risky)

Term

Complementary Assets **

 

List some assets that complement of each of the following aspects of business:

  • Organizational Assets
  • Managerial Assets
  • Social Assets
Definition

Organizational

  • Culture
  • Business model
  • Processes
  • IS Developement

Mangerial

  • Management Support
  • Innovation
  • Teamwork
  • Training

Social

  • Society's invetment
  • Laws and regulations
  • Internet
  • Education
  • IT Services
Term

Four Major Business Functions **

 

List them.

Definition
  • Sales & Marketing
  • Manufactuing & Production
  • Finance & Accounting
  • Human Resource
Term
List the 3 levels of of business and what information systems pertain to that level. **
Definition

Strategic Level (top)

  • ESS - Executive Support System

Management Level (middle)

  • MIS - Management Information Systems
  • DSS - Decision-Support Systems

Operational level (bottom)

  • TPS - Transaction Processing Systems
Term
What is TPS, and when is it used? **
Definition

TPS - Transaction Processing System

 

TPS is used by employees to support operational activities and transactions

Term
What is MIS, and when is it used? **
Definition

Management Information Systems

 

MIS is used to sum up all relevant information for management to make educated decisions.

Term
What is DSS, and when is it used? **
Definition

Decision Support System

 

Takes in various information, analyzes the data and gives the best possible solution.

Term
What is ESS, and when is it used?
Definition

Executive Support System

 

ESS is used to monitor each devision of a company and make broad strategic executive decisions.

Term

Order Tracking System

What type of:

Business Function?

Information System?

Definition

Manufacturing & Production

 

TPS

Term

Order fulfillment System e.g. NewEgg

What type of:

Business Function?

Information System?

Definition

Sales & Marketing

 

TPS

Term

Order fufilment process *

 

Name the function of each of the following processes

  • Sales
  • Accounting
  • Manufacturing and Production
Definition

Sales

  • Generate and submit order

Accounting

  • Check/approve credit

Manufacturing & Production

  • Assemble product
  • Ship product
Term
Challenges and oppurtunities with IT consearning Customer satisfaction in information Era
Definition

Challenge:

More "empowered" customers - online forums and customer reviews can tarnish your product

 

Oppurtunity

More "involved" customer - fish for feedback on your product to improve

Term

CRM - Acronym for what? **

 

An enterprice applicatin taht helps firms manage ________ with customers.

Definition

Customer Relationship Management

 

"relationships"

Term

From Marketing *

 

Explain some benifits of a high customer retention, and good customer service.

Definition

Cost is 1/6th of a new customer.

 

Dissatisfied customers gossip

 

Profits increase 85% by increasing customer retention by 5%

 

Odds of selling to a new customer - 15%

Odds of selling to an existing customer - 50%

Term

Beyond Sales... **

 

The front office is the focus of the:

a. Sales department

b. Entire company

Definition
b. Entire company
Term

Beyond Sales... **

 

With new CRM technology business models are shifting from _________-based to _________-service based.

Definition
from "transaction"-based business model to "service"-based business model.
Term

Beyond Sales... **

 

Customer Centricity definition

Definition
Maxime value of every customer interaction
Term

Customer Loyalty Management Process Map *

 

After entering customer information into the CRM database, what are the three possible routes to manage their service?

Definition

Returning Customer?

  • w/ high value and loyalty
    • Provide special offers and service*
  • w/o high value and loyalty
    • Route to best agent to resolve issue*

New Customer?

  • Route to best agent to resolve issue*

* = end result

Term

Functions of CRM *

 

List a few functions of CRM

Definition
  • Manages ways used by firms to deal with existing and potential new customers
  • Captures customer data
  • Consolidates customer data and provides analytical tools for answering questions
  • Provides a unified view of customers across the company
  • Distribute customer info to variosu systems and customer touch points
Term

Touch Points *

 

3 Good

 

3 Bad

Definition

Good

  • New product offerings to customers in need
  • Customized website
  • Product promotions to right customers

Bad

  • Junk mails
  • Phone calls at wrong time
  • SPAM
Term

How CRM System Supports Marketing *

 

What two mediums of communication generate the best response

Definition
Telephone (30.8%) & Direct Mail (29.2%)
Term

Customer Relationship Management (CRM) **

 

Provides/organizes customer data to aid in these three fields.

List the fields and explain how they are helped.

Definition

Sales

  • Telephone sales
  • Web Sales
  • Retail Store sales
  • Field Sales

Marketing

  • Campaign data
  • Content
  • Data Analysis

Service

  • Call center data
  • Web self-service
  • Wireless data
Term

Example of CRM Software Capabilities *

 

List the 3 uses of customer data and how you can use that data.

Definition

Sales

  • Account management
  • Lead management
  • Order management
  • Sales planning
  • Field sales
  • Sales analytics

Marketing

  • Campaign management
  • Channel promotions management
  • Events management
  • Market planning
  • Market operations
  • Marketing analytics

Service

  • Service delivery
  • Customer satisfaction management
  • Returns management
  • Service planning
  • Call center & help desk
  • Service analytics
Term

Operational CRM **

 

Define operational CRM and give examples

Definition

Managing customers face to face, sales, service and marketing.

 

Examples include:

  • Campaign management
  • e-marketing
  • account and contact management
  • lead management
  • telemarketing
  • telselling
  • e-selling
  • field sales
Term

Analytical CRM **

 

Define and give examples of Analytical CRM

Definition

Analyzes customer data generated by operational CRM applications to provide information for improving business performance.

 

Examples include:

  • Develop customer segmentation and profiles
  • analyze customer or product profitability
  • identify trends in sales length cycle
  • analyze leads generate and conversion rates
Term

Analytical CRM Data Warehouse *

 

The Customer Data Warehouse plays what role within CRM?

Definition
The Customer Data Warehouse collects data from channels within the company and other sources. It then uses analysis tools and data mining to provide info on profitable customers, market segments, customer profiles and churn rates.
Term

Business Value of CRM Systems **

 

What are the values of a CRM System (6 total)

know the 2 bold ones

Definition
  • Increased customer satisfaction
  • More effective marketing and reduce direct marketing costs
  • Lower costs for customers acquisition and retention
  • Increased revenue from identifying most profitable customer and segements of marketing, cross-selling, up-selling
  • Reduce churn rate: Number of customers who stop using or purchasing products or services from a company.
  • Realizing Customer Lifetime Value (CLTV): Difference between revenues and expenses minus the cost of promotional marketing used to retain an account.
Term

CRM Performance Measurement **

 

List ways to measure CRM effectiveness (5 total)

Definition
  • Cost per lead
  • Cost per sale
  • Number of repeat customers
  • Churn rate
  • Sales closing rate
Term

Name 4 types of IT and a company that utilizes that

 

1.

Definition

Pricing and marketing: QuiBids/Priceline/Groupon

Selling direct: Amazon Fresh/Dell/MINIUSA

Digital goods: iTunes/Amazon Kindle

C2C commerce: Craigslist/eBay/Prosper.com/GetAround

Term

What are 3 types of media IT is prevalent in and an example of its use in that type?

 

1.

Definition

TV: HDTV / Interactive TV / 3D TV / Google TV

Music: Spotify / Satellite Radio / iCloud / Google Music

Movie: Netflix / Amazon VOD / Hulu

Term

What are examples of IT in Gaming, Social Networking, & Virtual Communities?

 

1.

Definition

Gaming: MW3 / WoW / Second Life / Kinect / Wii

Social: Facebook / MySpace / LinkedIn / Twitter

Virtual Communities: Wikipedia / Flickr / YouTube / Instagram

Term

What is IT?

 

2.

Definition
Broad subject conerned with technology and other aspects of managing and processing information especially in large organizations.
Term
What are computer professionals called? Division of company that deals with software technlonogy called?
Definition

IT Specialists

IT department

Term

What is MIS (IS)?

 

2.

Definition
System (includes hardware, software, people, & communications systems) that collects and rocesses data and provides it to managers at all levels who use it for decision making, program implementation, and control.
Term

What are the four roles of IS?

 

2.

Definition

Functional support role

Decision support role

Strategic support role

Performance monitoring role

Term

What are the historical IT views and what they were viewed as?

 

2.

Definition

Connection View (~1970-95) IT as Tool

Immersion View (~1991-2012) IT as Environment

Fusion View (~2012 - ?) IT as Fabric

 

Term

What is the idea of Ubiquitous Computing?

 

1.

Definition
Computing/technology surrounds us. WiFi, laptops, cell phones, projectors, tvs. It requires focused effort to remove yourself from tech environment.
Term

What are some voice recognition applications?

 

1.

Definition
Siri, GPS, Shazam, Phone operator systems
Term

What is special about today's business vs business 50+ years ago.

 

1.

Definition

Doing business on a Global Scale

Overcoming regional/country differences and similarities

Term

To be good at everything means being good at nothing.

 

--Old Chinese Idiom

 

What is it referring to?

 

1.

Definition
Specialization
Term

What are challenges/impacts of the ubiquitous environment?

 

1.

Definition
  1. Organizational
  2. Economic
  3. Technological
  4. Political, cultural, social, etc.
Term
List an example of the benefits for business specialization for each section (Factories, Remote offices, Business Partners, Suppliers, Customers)
Definition

Factories

  • Just-in-time production
  • Continuous inventory replenishment
  • Production planning

Remote offices

  • Communicate plans and policies
  • Group Collaboration
  • Electronic communication
  • Scheduling

Business Partners

  • Joint Design
  • Outsourcing

Suppliers

  • Procurement
  • Supply chain management

Customers

  • Online marketing
  • Online sales
  • Built-to-order products
  • Customer service
  • Sales force automation
Term

IT is considered a key enabler. What does that mean/refer to?

 

1.

Definition
Without IT, communications between retailers, distributors, customers, etc. would not be as efficient or information rich. IT enables many types of info: inventory, shipping, production, procurement, order processing, and planning & scheduling.
Term

What is the history of adoption of Global Outsourcing in the US (% & Year --> % and Year)

 

2.

Definition
Global Outsourcing increased from 40% of US largest manufacturers (1991) to 80% (2004).
Term

What % of companies experienced cost saving from outsourcing?

 

2.

Definition

61% of global companies using outsourcing experience cost saving

 

Term

What % of companies utilizing outsourcing found increasing ability to focus on core business?

 

2.

Definition

57% found increasing ability to focus on core business

 

Term

What % of companies utilizing outsourcing reported improvements in process speed?

 

2.

Definition
50% reported improvements in process speed
Term

What is the relationship between a website & webpage?

 

2.

Definition
Website contains webpages
Term

How does someone access a website?

 

2.

Definition
Client sends request to a server. Server sends data back.
Term

What is the impact of the architecture of enterprise applications?

 

1.

Definition
Enables enterprise applications to automate processes that span multiple business functions (S&M, M&P, Fin & Acc, HR) and organizational levels (programmer - CEO) and may extend outside the organization (Suppliers, Customers, etc.).
Term

The Leavitt Diamond

 

2.

Definition
[image]
Term

What is an Enterprise Resource Planning System?

 

1.

Definition

A cross-functional enterprise system that allows different software modules to communicate with each other and utilize each other's data.

 

 

Term

What is the traditional view of systems?

 

2.

Definition
Business functions (M&P, Fin & Acc, S&M, HR) utilize business processes to communicate with their corresponding Information Systems (M&P Systems, Fin & Acc Systems, etc.). Vendors and customers outside the "organizational boundaries."
Term

How do Enterprise Systems Work?

 

2.

Definition
All business processes communicate with a centralized database to access information required to complete their tasks. (HR can see how many hours worked, labor cost, and job skills of an individual)
Term

What are ERP benefits?

 

2.

Definition

Decision support and Knowledge Management (KM): provides cross-functional information on business performance to managers, increases decision speed & effectiveness.

 

Enterprise agility: breaks down walls of business processes, accelerates transfer of information between departments

Term

What are the challenges of Enterprise Systems?

 

1.

Definition

Difficult to build: requires fundamental changes in the way the business operates

 

Technology: Requires complex software; large investments of time, money, expertise

 

Centralized organizational coordination and decision making: Not best way for all firms to operate

Term

Costs of ERP (pie-chart)

 

2.

Definition

Reengineering: 43%

Data Conversions: 15%

Training and Change Management: 15%

Sofware: 15%

Hardware: 12%

Term

What is a Supply Chain Management System? (SCM)

 

2.

Definition

Enterprise application that helps manage relationshiop with suppliers.

Macy's sends purchase data to suppliers so they can analyze what colors are popular, when to restock, etc.

Term

What is a supply chain?

 

2.

Definition
Network of organizations and business processes for getting raw materials, turning them into products, and distributing to customers.
Term

Which directions do materials, information, and payments flow through the supply chain?

 

2.

Definition

Supplies: downstream

(raw materials -> finished product -> consumer)

 

Information: upstream & downstream

(supplier <- purchase info ; tracking info -> consumer)

 

Payments: upstream

(supplier <- firm <- consumer)

Term

Nike supply chain

 

1.

Definition

Note the tiers of suppliers, flow from Nike <-> Distributor <-> Retailer <-> Customer

 

[image]

Term

Name 2 key processes of SCM for each:

Plan, Source, Make, Deliver, Return

 

2.

Definition
[image]
Term

What are 2 functions of SCM Systems?

 

2.

Definition
  1. Decide when and what to produce, store, and move.
  2. Rapidly communicate orders/product design
  3. Track status of orders/shipment
  4. Check inventory availability; monitor inventory levels
  5. Reduce inventory, transportation, & warehousing costs
  6. Plan production based on actual customer demand
Term

Define the push-based and pull-based models. Who uses them? (SCM)

 

3.

Definition

Push-based: Production master schedules based on forecasts of demand for products; products "pushed" to customers (Fashion industry)

 

Pull-based: Supply chain driven by actual customer orders (Dell)

Term

Push vs. Pull SCM

 

1.

Definition
[image]
Term

What are the 3 Supply Chain Management Applications?

 

2.

Definition
  1. Supply chain management systems: Automate flow of info between company and supply chain partners
  2. Supply chain planning systems: Generate demand forecasts for a product; help develop sourcing & manufacturing plans
  3. Supply chain execution systems: Ensure products delivered to right locations in most efficient manner. Manage flow of products thru distribution centers and warehouses.
Term

What are the metrics used to evaluate Supply Chain Performance?

 

2.

Definition
  1. Fill rate
  2. Average time: order to delivery
  3. Number of days of supply in inventory
  4. Forecast accuracy
  5. Cycle time for sourcing and making a product
Term

What are two benefits of SCM systems?

 

1.

Definition
  • Close coordination of activities involved in buying, making, and moving product; match supply w/ demand
  • Integrates supplier, manufacturer, distributor, and customer logistics; including reverse logistics
  • Reduces time, redundant effort, and inventory costs; minimizes inventory level
  • Helps in procurement of materials & transformation of raw materials into intermediate and finished products
  • Helps in distribution of the finished products to customers
  • Speed product time to market; use assets more effectively
Term

What is the "Future Internet-Driven Supply Chain?"

 

1.

Definition

A chain with not beginning or end, communication/information flowing throughout.

 

[image]

Term

Growth of e-Commerce

From graph, 1994 - 2104, what is the projected growth?

 

1.

Definition

1994: just above $0 billion

2014: projected $350 billion

Term

Traits of e-Commerce

Name 3

 

2.

Definition
  • Ubiquity: shop anywhere
  • Global reach: shop anywhere
  • Universal standards: Communications between different systems are seamless
  • Increases richness: Internet increases depth, detail, and scope of info
  • Interactivity: More interactions with customers
  • Information density: Reduces information cost and information asymmetry
  • Personalization: Individualized commerce
  • Social technology: user-generated content
Term

What do digital markets reduce?

 

1.

Definition

Information asymmetry

Search costs

Transaction costs

Menu costs

Term

What do digital markets enable?

 

1.

Definition

Price discrimination

Dynamic pricing

Disintermediation

Term

Digital Markets Compared to Traditional Markets

 

3.

Definition

Digital markets reduces over cost, reduces information asymmetry, delays gratification, has stronger network effects, and disintermediates the transaction.

 

Traditional markets have a higher overall cost, instant gratification, high info asymmetry, intermediation, and weaker network effects.

 

Chart on pg. 380

Term

What is the fundamental basis of e-Commerce? Why do people use it?

 

1.

Definition
Revenues generated from customers who see it having a superior value to traditional markets.
Term

What is one e-Commerce Revenue Option from each group?

Commerce, community, content, infrastructure

 

1.

Definition

Commerce:

  • Product sales
  • Commissions
  • Sales or transaction fees

Content:

  • Subscription fees
  • Document fees
  • Registration fees

Community:

  • Ad fees
  • Referral fees
  • Membership fees

Infrastructure:

  • Software/hardware sales or license
  • Maintenance/update
  • Integration/install
  • Hosting/access fees
Term

What is a portal?

 

2.

Definition

Provides initial point of entry to Web

ex. Yahoo.com, MSN.com

Term

What is an e-Tailer?

 

2.

Definition

Online retail store for goods

ex. Amazon.com, Newegg.com

Term

What is a content provider?

 

2.

Definition

Provides digital content

ex. WSJ.com, ESPN.com

Term

What is a transaction broker?

 

2.

Definition

Facilitates online transactions

ex. eTrade.com, Expedia.com

Term

What is a market creator?

 

2.

Definition

Provides a trading platoform for individuals and firms

ex. eBay.com, craigslist.org

Term

What is a service provider?

 

2.

Definition

Provides online services, including search

ex. flickr.com, PayPal.com

Term

What is a community provider?

 

2.

Definition

Provides online community to focused groups

ex. MySpace.com, facebook.com

Term

What are two properties of information goods?

Example?

 

2.

Definition
  • Information based
  • Big fixed cost
  • Small or negligible variable cost
  • Easy versioning and pricing

Ex. Movie, record, book, research paper, etc.

Term

What is the goal of versioning?

 

2.

Definition
To charge as many people as possible the price as high as possible.
Term

What is the theoretical basis of versioning? What is its purpose?

 

Is it easier to version information goods or physical goods?

2.

Definition

Price discrimination. Purpose is to capture consumer surplus

 

Information goods. Same product, different modules enabled/disabled.

Term

Costs of Digital vs. Traditional Goods

 

3.

Definition

Digital goods have zero marginal cost, high cost of production, and low copying, dributed delivery, and inventory costs. Marketing and pricing are variable.

 

Traditional goods have high marginal, copying, distributed delivery, and inventory costs. Variable cost of production and market cost. Fixed pricing.

 

Chart pg. 381

Term

The study by Brynjolfsson and Smith (2000) showed what about prices for online and conventional stores?

 

2.

Definition

Prices online < conventional store

Price fluctuation online > conventional store

Price dispersion online > conventional store

Term

Why should prices online be lower than traditional stores?

 

3.

Definition

Regular shopping provides:

  • Affective processing (images, sounds, smells) leading to impulse buys vs cognitive faculties (price and feature comparison)
  • Invisible trasaction costs (gas, time, parking) vs. visible (shipping)
  • Instant gratification vs. delayed gratification
Term

What is cost transparency?

 

2.

Definition
Ability of consumer to determine the premium the seller is charging.
Term

What are direct impacts of cost transparency?

 

2.

Definition

Low profits: (AT&T vs. Sprint) Sprint undercut AT&T showing extreme premium AT&T was charging

Services and products as commodities: (Ameritrade, e-Trade vs. Merrill Lynch) Online trading taking lower commission

Customer loyalty: (P&G) 

Reputation damage by price unfairness: (Auto industry 1970s) High value, low price japanese cars coming into market

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