ISM3003 MIDTERM STUDY GUIDE Study guide for the midterm exam The following may be a title of a slide or a topic in a slide Remember to study related figures the only information on this study guide is the information is exactly the information that was asked if your looking for a comprehensive study guide for everything we ve learned in class this is not it but this is what he asked for and he said that if you know the study guide you should be fine GOOD LUCK D Chapter 1 Business must drive technology o How Businesses Decide What Technology to Use Assess state of competition and industry pressures affecting your organization Determine business strategies to address competitive and industry pressures NEVER DO THIS IN REVERSE Identify business processes to support your chose business strategies Align technology tools with those business processes 5 Force Model 3 Generic Strategies Value Chain Model MIS introduction o MIS planning for developing managing and using IT tools to help people perform their work 3 Key Resources of MIS Information People Technology deals with the use of 3 important organizational resources information people and IT how people use IT to work with information Information Resource Organizational Perspective different information flows and the IS 1 ISM3003 MIDTERM STUDY GUIDE o Upward describes state of the organization based on transactions o Downward strategies goals and directives that originate at a higher level and are passed to lower levels o Horizontal between functional business units and work teams o Outward Inward from and to customers suppliers distributors and other partners o People the most important resource in any Technology Literacy knowing how to and when to apply technology Information Literacy knowing how to define information needs knowing how and where to obtain information Ethical Responsibilities principles and standards that guide our behavior toward other people Porter s Five Forces Model o Helps business people understand the relative attractiveness of an industry and the industry s competitive pressures in the terms of Buyer power high when buyers have many choices low when buyers have few choices competitive advantages are created to get buyers to stay with a given company Competitive Advantages providing a product or service in a way that customers value more than what the competition is able to offer Supplier power high when buyers have few choices low when buyers have many choices the opposite of buyer power 2 ISM3003 MIDTERM STUDY GUIDE Threat of substitute products services high when buyers have many alternatives and low when buyers have few alternatives Switching costs can reduce this threat Switching Costs a cost that makes buyers reluctant to switch to another product service o Ex long term contract with financial penalty great service personalized products based on purchase history Threat of new entrants high when it is easy for competitors to enter the market and low when entry barriers are significant Entry Barrier product or service feature that customers have come to expect and that must be offered by an entering organization o Ex banking atms online bill pay etc These barriers often start out as a switching cost but then become a barrier when competitors replicate to compete the product service then becomes mandatory to compete and it becomes a barrier Rivalry among existing competitors high when competition is fierce and low when competition is more complacent general trend is toward more competition in almost all industries IT has intensified competition in all sectors of business Porter s 3 generic strategies o For beating competition in business Overall Cost Leadership offering the same or better quality product or service at a price that is less than what any of the competition is able to do Ex Wal Mart EDLP Dell Cheapest customizable pc Hyundai Kia Grocery Stores high volume low margin Differentiation offering a product or service that is perceived as being unique in the marketplace 3 ISM3003 MIDTERM STUDY GUIDE Ex Hummer like nothing else Audi VW Michelin safety Lund s Byerly s high end grocery store Focus focusing on offering products or services To a particular segment or buyer group Within a segment of a product line To a specific geographical market Ex restaurants physician offices legal offices Value chain analysis o Systematic approach to assess and improve the value of business processes or services Primary Support products and services o Value Chain chain or series of business processes each of which adds value to your organization s products o Business Process standardized set of activities that accomplishes a specific task Primary processes in the Porter s value chain o Primary Value Process takes in raw materials and makes delivers markets and sells and services your o Support Value Process supports the primary value processes Ask customers which processes add value and which processes reduce value focus IT appropriately Chapter2 What s SCM companies o Supply Chain Management SCM tracts inventory and information among business processes and across most supply chains use inter modal transportation multiple transportation channels Supply Chain Management System SCMS IT system that supports supply chain management Dell s Effective SCM Through JIT o Just In Time JIT method for producing or delivering a product or service just at the time in the customer wants Dell uses JIT to deliver custom computers 4 ISM3003 MIDTERM STUDY GUIDE IT support for CRM o Front Office Systems primary interface to customers and sales channels o Back Office Systems fulfill and support customer orders both interface to CRM database and analysis and reporting systems ERP system o How SCM CRM E Collaboration systems are brought together o E Collaboration the use of technology to support Work activities with integrated collaboration environments Knowledge management with knowledge management systems Social networking with social networking systems Learning with e learning tools Informational collaboration to support open source information 5 ISM3003 MIDTERM STUDY GUIDE o Enterprise Resource Planning ERP System collection of integrated software for business management accounting finance supply chain management inventory management customer relationship management e collaboration etc o ERP attempts to integrate everything CRM drives what SCM will produce Everyone works together in e collaboration The entire organization knows the