Exam 1 Study Guide

Topics: Business process, Process management, Business process reengineering Pages: 10 (1703 words) Published: October 28, 2013
ITM 309 Fall, 2013
Exam One Topics: Review Outline
September 30, 2013

Information Systems in Business – Chapter 1
Apple Case and Class Discussion
1. What might have happened to Apple if its top executives had not supported investment in iPods or iPhones or iPads? *It would have fallen due to the Porter’s Five Forces
2. Using Porter’s Five Force Model, analyze Apple’s buyer power and supplier power. *Buy power is low because iPod is the dominant player in portable music *Supplier power is average because there are a fair amount of suppliers 3. Which of Porter’s Five Forces did Apple address through its introduction of the iPhone? *Low buyer power – few substitutes. High supplier power

4. Which of the Generic Strategies is Apple following?
*Broad cost leadership/broad differentiation

Competitive Intelligence
The process of gathering information about the competitive environment to improve the company’s ability to succeed Porter’s Five Forces Model
Porter’s Three Generic Strategies
Porter’s Value Chain Analysis

Porter’s Five Forces Model
Analyzes the competitive forces within the environment in which a company operates to assess the potential for profitability in an industry PURPOSE is to combat the competitive forces by identifying opportunities, competitive advantages, and competitive intelligence Determines the relative attractiveness of an industry

Threat of Substitutes
Threat of New Entrants
Buyer Power
Supplier Power
Rivalry among Existing Competitors

Porter’s Three Generic Strategies Model
broad cost leadership
Broad market and low cost (Wal-Mart)
broad differentiation
Broad market and high cost (Neiman Marcus)
focused strategy
Narrow market and low cost (Payless Shoes)
Narrow market and high cost (Tiffany)

Business Process
A standardized set of activities that accomplish a specific task, such as processing a customer’s order

Value Chain
Views an organization as a series of processes, each of which adds value to the product or service for each customer Useful for determining how to create the greatest possible values for customers. The goal is to identify processes for which the firm can add value for the customer and create a competitive advantage for itself, with cost advantage or differentiation.

Value Chain Analysis
Support Value Activities:
Firm Infrastructure – 3.1%
Human Resource Management – 7.1%
Technology Development and R&D – 4.2%
Procurement – 27.0%
Primary Value Activities:
Receive and Store Raw Materials – 5.2%
Make the Product or Service – 40.3%
Deliver the Product or Service – 6.6%
Market and Sell the Product or Service – 4.3%
Service after the Sale – 2.2%

Business Competitive Advantages Using IT Enablers
Information technologies can support many competitive strategies including broad cost leadership, broad differentiation, and focused strategies IT can help:
Build customer-focused businesses
Reengineer business processes
Businesses become agile companies
Create virtual companies
Build knowledge-creating companies

Strategic Decision Making – Chapter 2
Operational, Managerial and Strategic Support Systems
Transaction Processing System (TPS) – basic business system that serves the operational level and assists in making structured decisions Online Transaction Processing (OLTP) – capturing of transaction and event information using technology to process, store, and update Source Document – the original transaction record

Online Analytical Processing (OLAP) – manipulation of information to create business intelligence in support of strategic decision making Decision Support System (DSS) – models information to support managers and business professionals during the decision-making process 4 qualitative models used by DSS’s include:

What-If analysis
Sensitivity analysis
Goal-seeking analysis
Optimization analysis
Executive Information System (EIS) – a specialized DSS that supports senior level...
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