Business Driven Information Systems
Information Age>>> infinite quantities of facts are widely available to anyone who can use a computer
The core drivers of the information age:>>> Data
Information
Business intelligence
Knowledge
Data>>> Raw facts that describe the characteristics of an event or object
Information>>> Data converted into a meaningful and useful context
Business Intelligence>>> Information collected from multiple sources such as suppliers customers
competitors partners and industries that analyzes patterns trends and relationships for strategic
decision making.
Knowledge>>> Skills experience and expertise coupled with information and intelligence that creates a
person's intellectual resources
Companies are typically organized by department or functional area such as:>>> Accounting
Finance
Human resources
Marketing
Operations management
Sales
Accounting>>> Records
measures
reports monetary transactions
Finance>>> Deals with strategic financial issues including money banking credit investments and assets
Human resources>>> Maintains policies plans and procedures for the effective management of
employees
, Marketing>>> Supports sales by planning pricing and promoting goods or services
Operations management>>> Manages the process of converting or transforming of resources into goods
or services
Sales>>> Performs the function of selling goods or services
Systems 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
Feedback>>> Feedback is information that returns to its original transmitter (input transform or output)
and modifies the transmitter's actions
(MIS)>>> 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
(CIO)>>> Chief Information Officer (CIO)—Oversees all uses of IT and ensures the strategic alignment of
IT with business goals and objectives
(CKO)>>> Chief Knowledge Officer (CKO)—Responsible for collecting maintaining and distributing the
organization's knowledge
(CPO)>>> Chief Privacy Officer (CPO)—Responsible for ensuring the ethical and legal use of information
(CSO)>>> Chief Security Officer (CSO)—Responsible for ensuring the security of IT systems
(CTO)>>> Chief Technology Officer (CTO)—Responsible for ensuring the throughput speed accuracy
availability and reliability of IT
Business Strategy—A leadership plan that achieves a specific set of goals or objectives such as:>>>
Developing new products or services Entering new markets Increasing customer loyalty Attracting new
customers Increasing sales
Competitive Advantage>>> A product or service that an organization's customers place a greater value
on than similar offerings from a competitor
First-Mover Advantage>>> Occurs when an organization can significantly impact its market share by
being first to market with a competitive advantage
Competitive Intelligence>>> The process of gathering information about the competitive environment to
improve the company's ability to succeed
Competitive intelligence tools:>>> Porter's Five Forces Model Porter's Three Generic Strategies Porter's
Value Chain Analysis
Buyer Power is>>> The ability of buyers to affect the price of an item
Buyer Power consists of>>> Switching Cost & Loyalty Program
Information Age>>> infinite quantities of facts are widely available to anyone who can use a computer
The core drivers of the information age:>>> Data
Information
Business intelligence
Knowledge
Data>>> Raw facts that describe the characteristics of an event or object
Information>>> Data converted into a meaningful and useful context
Business Intelligence>>> Information collected from multiple sources such as suppliers customers
competitors partners and industries that analyzes patterns trends and relationships for strategic
decision making.
Knowledge>>> Skills experience and expertise coupled with information and intelligence that creates a
person's intellectual resources
Companies are typically organized by department or functional area such as:>>> Accounting
Finance
Human resources
Marketing
Operations management
Sales
Accounting>>> Records
measures
reports monetary transactions
Finance>>> Deals with strategic financial issues including money banking credit investments and assets
Human resources>>> Maintains policies plans and procedures for the effective management of
employees
, Marketing>>> Supports sales by planning pricing and promoting goods or services
Operations management>>> Manages the process of converting or transforming of resources into goods
or services
Sales>>> Performs the function of selling goods or services
Systems 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
Feedback>>> Feedback is information that returns to its original transmitter (input transform or output)
and modifies the transmitter's actions
(MIS)>>> 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
(CIO)>>> Chief Information Officer (CIO)—Oversees all uses of IT and ensures the strategic alignment of
IT with business goals and objectives
(CKO)>>> Chief Knowledge Officer (CKO)—Responsible for collecting maintaining and distributing the
organization's knowledge
(CPO)>>> Chief Privacy Officer (CPO)—Responsible for ensuring the ethical and legal use of information
(CSO)>>> Chief Security Officer (CSO)—Responsible for ensuring the security of IT systems
(CTO)>>> Chief Technology Officer (CTO)—Responsible for ensuring the throughput speed accuracy
availability and reliability of IT
Business Strategy—A leadership plan that achieves a specific set of goals or objectives such as:>>>
Developing new products or services Entering new markets Increasing customer loyalty Attracting new
customers Increasing sales
Competitive Advantage>>> A product or service that an organization's customers place a greater value
on than similar offerings from a competitor
First-Mover Advantage>>> Occurs when an organization can significantly impact its market share by
being first to market with a competitive advantage
Competitive Intelligence>>> The process of gathering information about the competitive environment to
improve the company's ability to succeed
Competitive intelligence tools:>>> Porter's Five Forces Model Porter's Three Generic Strategies Porter's
Value Chain Analysis
Buyer Power is>>> The ability of buyers to affect the price of an item
Buyer Power consists of>>> Switching Cost & Loyalty Program
