CIS 2200 CH1, CH2 |57 QUESTIONS AND ANSWERS|GUARANTEED SUCCESS

Fact the confirmation or validation of an event or object. Information age infinite quantities of facts are widely available to anyone who can use a computer. 4 core drivers of the information age data, info, knowledge, BI Data raw facts that describe the characteristics of an event or object.(Order date, amount sold, customer number) Information data converted into a meaningful and useful context (bestseller, outsider, best customer, worst customer) Variable a data characteristic that stands of a value that changes over time. Business Intelligence (BI) information collected from multiple sources such as suppliers, customers, competitors, partners, and industries that analyzes patterns, trends, and relationships for strategic decision making. (lowest sales per week compared with the economic interest rates, best selling product by month compared to sport season) Top managers use BI to define the future of the business, strategic direction for his firm. Primary difference between information and BI... Information primarily focuses on the internal variables, while as BI- manipulates multiple variables (internal and external) Knowledge includes the skills, experience, and expertise, coupled with information and intelligence, that creates a person's intellectual resources.(choosing to fire...., listing products that are about to expire first) Knowledge workers are individuals valued for their ability to interpret and analyze information. (info and intuition) Departments found in a typical company -Accounting -Finance -Human Resources -Marketing -Operational Management -Sales Accounting records, measures, and reports monetary transactions (monetary data) Finance Deals with strategic financial issues including money, banking, credit, investments, and assets.(monetary data) Human Resources Maintains policies, plans, and procedures for the effective management of employees.(employee data) Marketing supports sales by planning, pricing, and promoting goods or services. (transactional data) Operations management manages the process of converting or transforming or resources into goods or services.(production data) Sales performs the function of selling goods or services.(transactional data) Successful companies operate ______________, integrating the operations of all departments. cross-functionally Operating cross-functionally means integrating the operations of all ________. departments System a collection of parts that link to achieve a common purpose. (car) Goods material items or products that customers will buy to satisfy a want or need. Services tasks performed by people that customers will buy to satisfy a want or need. Production the process where a business takes raw materials and processes them or converts them into a finished product for its goods or services. Process of production input-process-output-feedback Productivity the rate at which goods and services are produced based upon total output given total inputs. System thinking a way of monitoring the entire system by viewing multiple inputs being processed or transformed to produce outputs while continuously gathering feedback on each part. provides an end-to-end view of how operations work together to create a product or service Feedback information that returns to its original transmitter (input, transform, or output) and modifies the transmitter's actions. (car's fuel light) Management Information Systems (MIS) (IT department, Information Systems department) a business function, like accounting and human resources, which moves information about people, products, and processes across the company to facilitate decision making and problem solving. MIS incorporates system thinking to help companies operate cross-functionally chapter 2 chapter 2 business strategy a leadership plan that achieves a specific set of goals or objectives. competitive advantage a feature of a product or service on which customers place a greater value than they don similar offerings from competitors. first-mover advantage occurs when a company can significantly increase its market share by being first with a new competitive advantage. Competitive Intelligence the process of gathering information about the competitive environment, including competitors' plans, activities, and products, to improve a company's ability to succeed. Porter's 5 force model analyzes the competitive forces within the environment in which a company operates to assess the potential for profitability in an industry. (buyer power, supply chain, threat of substitutes of products or services, threat of new entrants, rivalry among existing competitors) Buyer power the ability of buyers to affect the price they must pay for an item. switching costs costs that make customers reluctant to switch to another product or service. loyalty programs reduces buyer power by rewarding customers based on their spending. supply chain consists of all parties involved, directly or indirectly, in obtaining raw materials or a product. supplier power supplier's ability to influence the prices they charge for supplies (including materials, labor, and services) threat of substitute products or services when there are a high amount of alternatives to a product or service and low when there are few alternatives from which to choose. Threat of new entrants when it is easy for new competitors to enter a market and low when competitors are more complacent. entry barrier a feature of a product or service that customers have come to expect and entering competitors must offer the same for survival. product differentiation occurs when a company develops unique differences in its products or services with the intent to influence demand. Broad market and low cost walmart competes by offering a broad range of products at low prices. Its business strategy is to be the low-cost provider of goods for the cost - conscious consumer. broad market and high cost neiman marcus competes by offering a broad range of differentiated products at high prices. Its business strategy offers a variety of specialty and upscale products to affluent consumers. Narrow market and low cost payless competes by offering a specific product, shoes, at low prices. Its business strategy is to be the low-cost provider of shoes. Payless competes with walmart, which also sells low-cost shoes, by offering a far bigger selection of sizes and styles. Narrow market and high cost tiffany & co. competes by offering a differentiated product, jewelry, at high prices. Its business strategy allows it to be a high-cost provider of premier designer jewelry to affluent consumers.