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a digital firm is one in which nearly all of the organizations significant business relationships with customers, suppliers, and employees are accomplished though digital networks spanning the entire organization or linking multiple organizations |
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the set of logically related tasks and behaviors that organizations develop over time to produce specific business results and the unique manner in which these activities are organized and coordinated. |
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describes how a company produces, delivers and sells a product or service to create wealth |
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information technology (IT) |
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consists of all the hardware and software that a firm needs to use in order to achieve its business objectives |
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a set of interrelated components that collect (or retrieve, process, store, and distribute information to support decision making and control in an organization |
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data that have been shaped into a form that is meaningful and useful to human beings |
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streams of raw facts representing events occurring in organizations or the physical environment before they have been organized and arranged into a form that people can effectively understand and use |
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captures or collects raw data from within the organization or from its external environment |
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converts this raw input into a meaningful form |
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transfers the processed information to people who will use it or to the activities for which it will be used |
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output that is returned to appropriate members of the organization to help them evaluate or correct the input stage |
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information systems literacy |
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broader understanding of the management and organizational dimensions of information systems, which encompasses an understanding of the management and organizational dimensions of systems as well as the technical dimensions of systems |
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focuses primarily on knowledge of information technology |
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management information systems (MIS) |
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tries to achieve this broader information systems literacy, deals with behavioral issues as well as technical issues surrounding the development, use, and impact of information systems used by managers and employees in the firm |
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makes long range strategic decisions about products and services as well as ensures financial performance of the firm |
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carries out the programs and plans of senior management |
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is responsible for monitoring the daily activities of the business |
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such as engineers, scientists, or architects, design products or services and create new knowledge for the firm |
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secretaries or clerks, assist with paperwork at all levels of the firm |
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production or service workers |
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actually produce the product and deliver the service |
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specialized tasks performed by business organizations, consist of sales and marketing, manufacturing, production, finance and accounting, and human resources |
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fundamental set of assumptions, values and ways of doing things that has been accepted by most of its members |
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physical equipment used for input, processing and output activities in an information system |
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consists of the detailed, preprogrammed instructions that control and coordinate the computer hardware components in a information system |
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data management technology |
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consist of the software governing the organization of data on physical storage media |
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networking and telecommunications technology |
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consisting of both physical devices and software, links the various pieces of hardware and transfers data from one physical location to anoter |
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links two or more computers to share data or resources |
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internal corporate networks based on internet technology |
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private intranets extended to authorized users outside the organization |
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service provided by the internet that uses universally accepted standards for storing, retrieving, formatting and displaying information in a page format |
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information technology (IT) infrastructure |
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foundation on which the firm can build its specific information systems |
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organizations and management capital |
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investments in an organization and management such as complementary assets, new business models, new business procedures, management behavior, organizational culture or training |
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optimal organizational performance is achieved by jointly optimizing both the social and technical systems used in production |
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sales and marketing information systems |
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supports business processes that are concerned with identifying the customers for the firms products or services, determining what customers need or want, planning and developing products and services to meet their needs and advertising and promoting these products and services, taking orders and following up on sales |
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manufacturing and production systems |
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support activities that deal with planning, development, and maintenance of production facilities; the establishment of production goals; the acquisition, storage, and availability of production materials; and the scheduling of equipment, facilities, materials, and labor required to fashion finished products |
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finance and accounting information |
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deals with maintaining and managing the firms financial records to account for the flow of funds in a firm. keep tract of assets and fund flows. they track money owned the firm, prepares short term budgets, plans long term profits. |
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Human resources information systems |
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support activities such as identifying potential employees, maintaining complete records on existing employees, and creating programs to develop employees talents and skills |
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transaction processing system (TPS) |
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provides information on elementary activities, transactions of the organization- sales, receipts, cash deposits, payroll, credit decisions and the slow of materials in a factory |
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management information system (MIS) |
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designates a specific category of information systems serving the middle management. |
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decision support systems (DSS) |
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support nonroutine decision making for middle managment |
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executive support systems |
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help senior management make decisions such as strategic issues and long term trends in the firm and external environment |
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uses a web interface to present integrated personalized business content |
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systems that span functional areas, focus on executing business processes across the business firm and include all levels of management |
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solve problems by collecting data from various key business processes in manufacturing and production, fiance and accounting, sales and marketing, and human resources and storing the data in a single central data repository |
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help businesses manage relationships with their suppliers. help to suppliers, purchasing firms, distributors, and logistics companies share information about orders, production, inventory levels and delivery of products and services so that they can source, produce, and deliver goods and services efficiently |
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inter organizational system |
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they automate the flow of information across organizations boundaries. ex. supply chain |
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customer relationship management (CRM) systems |
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help firms manage their relationships with customers. |
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knowledge management systems (KMS) |
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enable organizations to better manage processes for capturing and applying knowledge and expertise |
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electronic business, e business |
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refers to the use of digital technology and the internet to execute the major business processes in the enterprise |
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electronic commerce, e commerce |
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part of the e business that deals with the buying and selling of goods and services over the internet |
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refers to the application of the internet and networking technologies to digitally enable government and pubic sector agencies relationships with citizens, businesses, and other arms of government |
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information systems department |
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is the formal organizational until responsible for maintaining the hardware, software, data storage, and networks that comprise the firms IT infrastructure |
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highly trained technical specialists who write the software instructions for computers |
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the principal liaisons between the information systems groups and the rest of the organization |
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information systems managers |
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are leaders of teams of programmers and analysts, project managers, physical facility managers, telecommunication managers, or database specialists. |
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chief information officer (CIO) |
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senior manager who oversees the use of information technology in the firm |
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representatives of departments outside of the information systems group for whom applications are developed. |
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a stable, formal social structure that takes resources from the environment and processes them to produce output |
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-standard operating procedures- are precise rules, procedures, and practices that have been developed to cope with virtually all expected situations |
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firms and individuals seek to economize on transaction costs, much as they do on production costs. |
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the firm is viewed as a "nexus of contracts" among self interested individuals rather than a unified, profit maximizing entity |
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most widely used for understanding competitive advantage, provides a general view of the firm, its competitors, and the firms enviroment |
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product is similar across the marketplace |
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efficient customer response program |
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directly links customer behavior to distribution and production and supply chains |
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the ability of offer individually tailored products or services using the same production resources as mass production |
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the cost of switching from one product to a competing product |
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highlights specific activities in the business where competitive strategies can be best applied and where information systems are most likely to have a strategic impact |
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are most directly related to the production and distribution of the firms products and services which create value for the customer |
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make the delivery of the primary activities possible and consist of organization infrastructure, human resources, technology, and procurement |
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comparing the efficiency and effectiveness of your business processes against strict standards and then measuring performance against those standards |
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are usually identified by consulting companies, research organizations, government agencies, and industry associations as the most successful solutions or problem solving methods for consistently and effectively achieving a business objective |
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a collection of independent firms that use information technology for a market collectively |
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is an activity for which a firm is a world class leader |
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a networking view to economics |
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uses networks to link people, assets, and ideas, enabling it to ally with other companies to create and distribute products and services without being limited by traditional organizational boundaries or physical locations |
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loosely coupled by interdependent networks of suppliers, distributors, outsourcing firms, transportation service firms and technology manufacturers |
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a movement between levels of sociotechnical systems |
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