Term
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Definition
| Pay close attention to organizational change. (first order automate, second order informate, and third order transform) |
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Term
| IS as Sociotechnical System |
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Definition
| Social system : structure, people. Tech system: IT, process. |
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Term
| Sociotechnical System: Structure |
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Definition
| organizational design (hierarchy, decentralized, loose coupling), reporting (functional, divisional, matrix) and relationships (communication and reward mechanisms) |
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Term
| Sociotechnical System: People |
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Definition
| end users, managers, IT professionals. Their attitudes, skills, preconceptions, and personal agendas affect outcome. |
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Term
| Sociotechnical System: IT |
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Definition
| hardware, software, and telecommunications equipment |
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Term
| Sociotechnical System: Process |
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Definition
| Steps necessary to complete business activity. Must remember that while manuals are provided, it is the personnel that enact such procedures and can determine success. |
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Term
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Definition
| Automate. Includes IT and process. Affects how current process is performed. |
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Term
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Definition
| Informate. Includes process, IT, and people. Individuals who perform tasks are affected by change in IS. |
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Term
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Definition
| Transform. Includes IT, process, and structure. Changes in IS cause changes in overall structure of the organization. |
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Term
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Definition
| Transform. Includes IT, process, and structure. Changes in IS cause changes in overall structure of the organization. |
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Term
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Definition
| Decision-making occurs at different levels within organization. Operational level: short-term activities. Managerial (tactical) Level: semi-structured by precedence. Executive (strategic) Level: Long range decisions. |
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Term
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Definition
| Decentralization of responsibilities (post WWII). Can lead to lack of unity within an org. |
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Term
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Definition
| BPR (Business Process Reengineering)-- series of steps performed within a business to go from input to process to output. Cons: will restructure job activities and costly. |
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Term
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Definition
| Efforts seek to organize, streamline, and simpliy a process or application. Internal or external locus. Business or systems object. |
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Term
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Definition
| Unification or creation of linkages among connected business activities. |
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Term
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Definition
| Unification or linkage of IT-enabled information systems and databases. |
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Term
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Definition
| Benefits: reduction of duplication; easier access to information, speed and response time; reduces direct costs and potential for error. |
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Term
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Definition
| Ex: Diamond. Worth more because it is so hard to find. Value in positive unique qualities. |
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Term
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Definition
| Value of the network > value of single nodes |
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Term
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Definition
| People. Not devices. Sponsored by organization or technology that enables it, controls access to it, and manages its evolution. |
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Term
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Definition
| Telephone or railroad network. |
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Term
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Definition
| self-reinforcing mechanism; strong get stronger, weak get weaker. |
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Term
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Definition
| Economies of scale; strong get weaker, weak get stronger. Occurs when dominant firm reaches significant size. |
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Term
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Definition
| Positive feedback dynamics, network externalities, demand-side economies of scale |
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Term
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Definition
| Have an impact on other individuals; positive for growing network, negative for other networks |
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Term
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Definition
| current members of the network have to "spread the word" and convince others to join |
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Term
| Firms losing due to network effects can survive by: |
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Definition
1. Becoming compatible with the dominant player
2. Finding a niche. Something that sets them apart. |
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Term
| Tippy Markets/Tipping Point |
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Definition
| Markets subject to strong positive feedback. Reaches certain point and falls in favor of dominant firm. |
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Term
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Definition
| The lower the cost of production and distribution of a product, the quicker the onset of the tipping point. |
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Term
| Tippy Market Characteristics |
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Definition
| Strong economies of scale. Variety of customer needs. |
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Term
| Low Economies of Scale + Low Demand for Variety = |
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Definition
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Term
| Low Econ of Scale + High Variety Demand = |
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Definition
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Term
| High Econ of Scale + Low Variety Demand = |
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Definition
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Term
| High Econ of Scale + High Variety Demand = |
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Definition
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Term
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Definition
| Two members creating value for one another (dependent) |
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Term
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Definition
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Term
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Definition
| Data in context; can be interpreted and utilized; easily customizable. (high initial production cost, low reproduction/distribution cost) |
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Term
| Traditional Business Models |
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Definition
| Based on information controlled by carrier. |
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Term
| Information in Networks Implications |
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Definition
| Traditional Business Models, Importance of Customer Interface, Decreasing Value of Asymmetric Information |
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Term
| Info in Networks Obstacles |
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Definition
| New Tech must adequately replace old, Retaliation from Incumbents, Human Resistance to change, Attention Challenges |
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Term
| Types of Retaliation from Incumbents |
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Definition
| Legal, legislative, hybrid offers (physical/online stores), heightened competition |
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Term
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Definition
| new tech that enable a product's performance to continue to grow |
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Term
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Definition
1. Offers a different set of attributes than the tech the firm currently uses.
2. Performance improvement rate of the technology is higher than the rate of improvement demanded by the market. |
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Term
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Definition
| Process of distributing, buying, selling, marketing, and servicing products and services over computer networks (Internet) |
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Term
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Definition
| use of Internet technologies and other advanced IT to enable business processes and operations |
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Term
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Definition
| B2C, B2B, C2C, C2B, eGovernment |
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Term
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Definition
| Business to Consumer. Organization for profit providing goods or service to end consumer. |
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Term
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Definition
| Business to Business. Transaction involving two or more businesses. |
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Term
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Definition
| Consumer to Consumer. Firm that enables transaction between two consumers. (eBay) |
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Term
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Definition
| Consumer to Business. Individual acts as supplier to business. |
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Term
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Definition
| all transactions involving legislative and administrative institutions |
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Term
| eCommerce Company Structure |
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Definition
| Brick and Mortar, Bricks and Clicks, Pure Play |
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Term
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Definition
| physical operations and locations (traditional) |
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Term
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Definition
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Term
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Definition
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Term
| eCommerce/eBusiness Business Models |
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Definition
| Online retailing, infomediaries, content providers, online communities, exchanges, infrastructure providers |
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Term
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Definition
| Pay for Service, Subscription, Advertisement Support, Affiliate |
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Term
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Definition
| Traditional exchange of good for adequate compensation |
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Term
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Definition
| Pay for good; unlimited access to good. |
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Term
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Definition
| firm's services made available for free due to support by third party advertisements. Firms value ability to target audience, but do not receive expected hits |
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Term
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Definition
| Third party sponsor that pays commission for business due to link on referring site's page. |
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Term
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Definition
| Online Retailing, Infomediaries, Content providers, Online Communities, Exchanges, Infrastructure Providers |
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Term
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Definition
| take control of inventory they then resell at a profit |
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Term
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Definition
| Information intermediaries; organizations that use the Internet to provide specialized information on behalf of product or service providers |
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Term
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Definition
| organizations that develop and publish content |
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Term
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Definition
| group of people brought together by a common interest or goal |
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Term
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Definition
| Organizations that create a marketplace for buyers and sellers to come together and transact. Doesn't take control of inventory. |
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Term
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Definition
| Have been able to create value by developing and managing the infrastructure of eCommerce |
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Term
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Definition
| Disintermediation, Reintermediation, Market Efficiency, Channel Conflict, Customer and Employee Self-Service |
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Term
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Definition
| distribution chain is shortened through the elimination of one or more intermediaries |
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Term
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Definition
| Internet created opportunities for new intermediaries to exist alongside their brick and mortar counterparts |
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Term
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Definition
| Reduce search costs and improve the efficiency of markets |
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Term
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Definition
| inherent difficulty of moving distribution from the traditional channel (one currently producing the vital revenue stream) to the online direct channel (one that promises highest profitability in the long run) |
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Term
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Definition
| easy-to-use Web sites and increased comfort with IT skills |
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Term
| eCommerce/eBusiness trends |
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Definition
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Term
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Definition
| enables coauthoring and editing of web content |
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Term
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Definition
| online journal (private/public) |
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Term
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Definition
| Real Simple Syndication. enables an organization to create Web feeds, short summaries of content with a link to the full-fledged version that are broadcast to all those who subscribe to the feed. |
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Term
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Definition
| Short descriptors associated with an object |
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Term
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Definition
| Mobile commerce. Ability to complete commercial transactions using mobile devices |
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Term
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Definition
| Ubiquitous networks to support personalized and uninterrupted communications and transactions (ubiquity, uniqueness, universality, and unison) |
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Term
| Six Strategic IS questions |
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Definition
1. How much should we spend?
2. Which processes should we spend money on?
3. Which IT capabilities need to be company-wide?
4. How good does IT need to be?
5. What security risks to we face?
6. Whom do we blame if an IT initiative fails? |
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Term
| Managerial Role in Strategic IS |
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Definition
| General and functional managers need to be involved in decisions that affect the investment in, and use of, IS tech resources. |
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Term
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Definition
| Objectives include clarifying implementation and management of IS |
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Term
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Definition
| Objectives of information systems deployment are specified and agreed upon |
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Term
| Strategic IS Planning Process Components |
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Definition
1. Strategic Business Planning
2. IS assessment
3. IS vision
4. IS guidelines
5. Strategic initiatives |
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Term
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Definition
| Critical Success Factors. What is unique to the firm that sets them apart from others in the same field; must go right for the firm to succeed. |
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Term
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Definition
| evaluation of both the firm's current and future IS needs |
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Term
| Current Need for Reliable IS det by? |
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Definition
1. Tangible loss of business if 1+ systems fail
2. Negative consequences associated with small degrading response time of 1+ system
3. Core business activities are online and require real-time(or near) info processing
4. Repeated service interruptions cause no serious consequences for viability of business
5. Company can quickly revert to manual ops (unwelcome, but possible) |
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Term
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Definition
1. New systems + function of existing = sig process/service improvements
2. New system/new function of existing = major cost red/efficiency improvements
3. New systems/new function of existing = close gaps in service, cost, or process performance with competitors
4. Systems work is mostly maintenance of the current state of the art and functionalities (no new systems major to success)
5. New systems promise little strategic differentiation (customers do not expect new funct/services) |
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Term
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Definition
| Comparison of IS reliability and need for new IS (Support, Factory, Turnaround, Strategic) |
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Term
| Strategic Impact Grid: Support |
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Definition
| IS not mission critical now or in a foreseeable future; cost conscious and conservative in IS decision making. |
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Term
| Strategic Impact Grid: Factory |
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Definition
| Enables business to operate with necessary degree of efficiency/effectiveness; must closely monitor current systems and be willing to fund maintenance and upgrade. |
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Term
| Strategic Impact Grid: Turnaround |
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Definition
| Not considered mission critical, but change is due in near future. Typically requiring reorganization. |
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Term
| Strategic Impact Grid: Strategic |
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Definition
| IS both currently critical and change expected in near future. Must be proactive with maintenance and IT investments. |
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Term
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Definition
| Communication, ID Responsibilities, Long-Range Decision Support |
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Term
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Definition
| Address future decisions pertaining to the hardware/software infrastructure, networking services, and the storage and protection of org data and info |
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Term
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Definition
| decisions that pertain to HR, org of IS function, reporting, hierarchical structures |
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Term
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Definition
| Strengths, Weaknesses, Opportunities, and Threats |
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Term
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Definition
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Term
| Components of Value Created |
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Definition
| Supplier Opportunity Cost, Firm Cost, Customer Willingness to Pay, Total Value Created |
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Term
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Definition
| Supplier Opportunity Cost: min amount of money the suppliers are willing to accept to provide firm with supply resources |
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Term
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Definition
| Firm Cost: actual amount of money the firm disbursed to acquire supply resources |
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Term
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Definition
| Customer Willingness to Pay: max amount of money a customer is willing to spend in order to obtain a product |
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Term
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Definition
| Total Value Created: CWP-SOC |
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Term
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Definition
| Value that would be lost if the firm did not take part in the exchange. Dependent on qualities that differentiate from competitors. Directly relates to firm's competitive advantage over similar firms. |
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Term
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Definition
| Increase CWP. Decrease SOC. |
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Term
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Definition
| Do not create added value but are important (crucial) to firm's success |
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Term
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Definition
| specific projects with clear boundaries |
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Term
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Definition
| Seeks to create advantage through initiative |
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Term
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Definition
| Limited scope. IT core. ERP-enabled business integration, supple chain management, customer relationship management, eCommerce, and eBusiness. Only pay off if part of larger IS design. |
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Term
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Definition
| Industry analysis, Value chain analysis, customer service life cycle analysis |
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Term
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Definition
| Five competitive forces: threat of new entrants, threat of subs, bargaining power of buyers, bargaining power of suppliers, rivalry among competitors |
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Term
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Definition
| Can reduce threat of entrants, contributed to power shift from suppliers to buyers, reduced firm's bargaining power to buyers |
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Term
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Definition
| Primary/Directly Related (inbound logistics, ops, outbound logistics, marketing and sales, and service) and Support/Indirectly Related (firm infrastructure, HR mgt, tech dev, procurement) Activities |
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Term
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Definition
| both physical and information processing components; focus on the role that information techs can play in transforming current activities |
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Term
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Definition
| create partnerships and dev interorg systems |
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Term
| Customer Service Life Cycle |
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Definition
Four main phases: requirements, acquisitions, ownership, and retirement
Thirteen subphases: est reqs, specify; select source, order, autorize and pay for, acquire, eval and accept; integrate, monitor, upgrade, maintain; transfer or dispose, account for |
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Term
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Definition
| Designed to help managers ID opportunities to harness info for value creation. Virtual Value Chain, Value Creation with Customer Data, Data-Driven Strategic Initiatives |
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Term
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Definition
map the set of activities that enable a firm to transform input into more valuable usable output.
Five activities:
1. Gather
2. Org
3. Select
4. Synthesize
5. Distribute |
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Term
| 3 Classes of Strategic Initiatives |
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Definition
Increasing order of complexity and unpredictable results:
1. Visibility--firm uses the sequential activities in the VVC to "see through" org processes
2. Mirroring Capabilities--shifting some of econ activities previously completed in the physical value chain to the info-defined world of VVC
3.New Digital Value--relationship with the customer and firm's ability to increase CWP using info gathered through VVC |
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Term
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Definition
| Firm's physical transformation processes |
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Term
| Value Creation with Customer Data |
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Definition
| firm's specialization in the production and sale of a specific set of goods and services |
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Term
| Theoretical Repurchase Frequency |
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Definition
| Regularity with which the average customer acquires goods and services offered by the firms in the industry (potential, not actual) |
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Term
| Degree of Customizability |
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Definition
| extent to which product or service can be personalized to fit consumer needs |
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Term
| Dimensions of Decision Making |
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Definition
| Theoretical Repurchase Frequency and Degree of Customizability |
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Term
| General Customer Data Strategies |
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Definition
| Personalization, Rewards, Acquisition, No Potential |
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Term
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Definition
| high repurchase frequency and high degree of customizability; there exists the potential to collect significant amount of individual preference based data because of significant repurchase rate leading to more custom products |
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Term
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Definition
| Based on notion that firm's product/service will be a repeat purchase; fairly standardized good/service; firm can analyze profitability of each customer |
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Term
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Definition
| Collects customer data to enable the recruitment of profitable customers |
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Term
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Definition
| very little data can be collected and manager is highly restricted |
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Term
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Definition
| Third dimension. Degree to which data collection can be easily done. |
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Term
| ID Opportunities to Create Data |
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Definition
1. ID relevant transaction processing systems
2. Inventory data currently available in these systems
3. Conceptualize initiatives that use the available data
4. Prioritize among the selected initiatives |
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Term
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Definition
| narrow the scope of analysis; focus on systems that are most likely to hold relevant data |
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Term
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Definition
| Gain access to the system and explore reporting functions |
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Term
| Conceptualize initiatives |
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Definition
| Determine what can be done with the data collected without worrying about feasibility or financial cost |
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Term
| Prioritize Initiatives (upside potential, data availability) |
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Definition
Evaluate feasibility of initiatives.
1. Upside potential--assessment for financial benefits (time sensitivity, impact immediacy, aggregation requirements, trending requirements)
2. Data Availability--immediacy with which the initiative can be implemented (accuracy, comprehensiveness) |
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Term
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Definition
| Imperatives, Quick Wins, Trade Offs, Losing Causes |
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Term
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Definition
| Significant upside potential and readily available information |
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Term
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Definition
| not much upside potential, implemented based on readily available info |
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Term
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Definition
| Sig upside potential, info not readily available/costly |
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Term
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Definition
| low upside potential and info not readily available |
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