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Business Technology Management (Comm 226) - Final Study
Guide
Business Technology Management (Concordia University)
Studocu is not sponsored or endorsed by any college or university
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CHAPTER 1 Intro to Information Systems
Information Systems Defined
Systems A group of components that interact to achieve a purpose.
↳ Not necessarily technology related.
↳ When a system’s purpose is to create information, it then becomes an information system.
Computerized information system An information system that is enabled by technology.
↳ Consists of 6 components
1. Hardware All electrical components of the system. → Computer, cables, phones
2. Software Programs/application that are part of the system. → Adobe, Excel, Powerpoint
3. Data Facts and statistics collected to form information. → Sales revenue, temperature
4. Procedures Instructions or steps followed to achieve an outcome. → ‘How to’ guides
5. People Those who interact with the system both directly and indirectly.
6. Network Connects the computers within the system and connects the system to other
resources.
Information Technology vs. Information Systems
Information Technology (IT) Raw technology which includes hardware, software, data, and
networks. → A computer
Information Systems (IS) Gives IT a purpose by including all ‘6 components’.
↳ A tool to accomplish organizational goals.
→ A computer being used by someone to generate monthly sales forecasts
Role of the IS Department
- Technology Lead by the Chief Technology Officer, in charge of new tech and innovation.
- Operations Day-to-day administration. → Infrastructure, user support
- Development Improve current systems and implement new ones.
- Outsourcing Relations Monitors relationships and service levels.
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Business Technology and Systems
Office Automation System Supports daily work activities of individuals/groups. → Word, Excel
Management Information System Produces reports summarized from transaction data, usually
in one functional area.
Decision Support System Provides access to data and analysis tools.
Expert System Mimics human expert in a particular are and makes decisions. → WebMD
Supply Chain Management System Manages flows of products, services, and information
among organizations.
Inter-Organizational System System that is used between two different companies.
Strategic Information System Systems that help an organization to gain a competitive
advantage by supporting strategic goals, increasing performance, or boosting productivity.
Logistic Information System Systems used to control inbound and outbound logistics in a
company. → moving things around
Financial Information System Used to control financial and management accounting data
within the company.
Human Resources Information Systems Systems used to manage hiring, recruiting, training, job
positions, employee profiles, positions, compensation, payroll, and termination processes
within in the company.
CHAPTER 2 Hardware Technology Guide
Components of Computers
4 Main Functions of a Computer
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1. Inputs Anything that helps you input data.
→ Text, point, audio-visual, voice, image
2. Processing
The CPU The brain of the computer.
↳ Controls all the functions
↳ Contains registers and cache memory
↳ Speed is measured in Hertz
Dual Processor 2 CPUs in the computer.
Quad Processor 4 CPUs in the computer.
Memory ROM and RAM
Read Only Memory Purpose is to start the computer.
↳ Permanent (non-volatile)
↳ Does not increase processing speed
Random Access Memory Purpose is run programs when the computer is on.
↳ Temporary (volatile)
↳ Adding RAM lets you do more things at the same time
3. Outputs
→ Screens, printers, video projectors, speakers
4. Storage
Mechanical Hard Drives (HDD) Moving part.
↳ Max storage of around 4 TB
Platter Round thin plates inside the HDD housing magnetized spots that represent data.
Access Time The time it takes to find data on the HDD.
Solid State Drives Non moving part.
↳ Max storage of around 4 TB
↳ No noise, little heat, less power
↳ Faster access times (100x faster than HDD)
↳Allows computer to start faster
Flash Memory Devices No moving parts and uses less power by using flash memory.
Optical Drives Uses lasers to store and read data on optical media.
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Measuring Computer Data
Binary Code Language used by computer components to communicate.
↳ Consists of 1’s and 0’s
↳ Each 1 or 0 = 1 bit → 8 bits = 1 byte
Moore’s Law The number of transistors per square inch on electronic chips is roughly doubling
every 18 months or so.
↳ Computer speed increasing exponentially
↳ Mobile platforms and internet access is growing worldwide
↳ Data storage and data communication costs virtually nothing
↳ Routine tasks can be outsourced cheaply, so if your job can be automated, it isn't secure
CHAPTER 3 Software Technology Guide
Software
Operating System Controls the computer’s resources. →ios, Android, Windows, Linux, etc.
↳ Made to run on certain types of hardware.
1. Manages computer’s hardware
2. Middleman between the CPU and the application software
3. Manages, schedules, and coordinates tasks
4. Provides a user interface
Application Software Allows the user to perform a specific task. → Shazam, Adobe, Office, etc.
↳ Made to run on certain operating systems.
Word Processing Used to create writing documents with editing and formatting. → Word, Pages
Spreadsheet Software Uses rows/columns to manipulate numerical data, and can perform
what-if and goal seeking analysis. → Excel, Numbers
Presentation Software Allows for the creation of graphics-focused slides. → Powerpoint
Data Management Allows users to store, retrieve, and manipulate related data. → FileMaker
Graphics Allows for image editing, storage, printing, and publishing. →Photoshop.
Personal Information Management Software Creates calendars, appointments, to-do lists,
business contacts, and often manages emails. → Outlook
Personal Finance Manages chequebooks, investments, credit cards, bank statements, pays
bills/taxes for personal use. → Microsoft Money
Desktop Publishing Software Extended word processing software that allows for graphically-rich
documents (including photographs, diagrams, and additional fonts). → Publisher, InDesign
Web Management Software Allows for the creation/publishing of websites. → Dreamweaver
Communications Allows for voice and video communication over the internet. → Skype
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CHAPTER 4 Cloud Computing
Cloud Computing Characteristics
On Demand Self Service Helps with seasonality and demand management.
Uses Grid Computing Pools various hardware and software, divides it, and shares it amongst
many users.
Encompasses Utility Computing Charging customers for usage rather than fixed flat rates.
Uses Broad Network Access Services provided over the internet, accessible from anywhere.
Uses Virtualized Servers Divides a server to provide a piece of the pie to each user to create
standalone, virtual environments that they can use.
Types of Clouds
Public Cloud For general public access, usually free per usage. → DropBox, Icloud
Private Cloud For internal or company use.
Hybrid Cloud Combination of private and public networked together.
Vertical Cloud For one industry. → Banking, fashion
How It’s Delivered
Infrastructure as a Service (IaaS)
↳ Provides servers, networks, and storage.
↳ More RAM and more CPU power.
Platform as a Service (PaaS)
↳ Provides same as Iaas but with an OS.
↳ Provides tools to develop application software on.
Software as a Service (SaaS)
↳ Provides all from Iaas with OS and a specific application you want
Advantages and Concerns of Cloud Computing
Benefits
1. Cheap, scalable, and flexible.
2. Accessible.
3. Gain access to resources without storing them on your own device.
Concerns
1. Compatibility with older systems.
2. Reliability is in the hands of the vendor, so downtime happens.
3. Privacy Your data is controlled by your vendor.
4. Security Who can access your data and what measures are in place by the vendor.
5. Regulatory and Legal The laws aren’t the same everywhere when it comes to data
management and access.
6. Hacking Target There’s a lot of data in these clouds.
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CHAPTER 5 Organizational Strategy and IT
Goal = Competitive Advantage
Alignment When the IT department’s mission, goals, and plans overlap with those of the
organization’s.
↳ Major challenge in business today.
↳ Requires constant communication between business and IT.
↳ Only 16% of business executives and IT professionals agreed that their organisation had
adequate alignment.
Porter’s 5 Competitive Strategies
↳ Companies can adopt one or several of these strategies to compete.
↳ Company goals, culture, and activities must be in line with the chosen strategy.
1. Cost Leader → Walmart, Amazon, Dollarama
2. Differentiation → Apple, Tesla, Gucci
3. Innovation → Google, Uber, Apple
4. Operational Effectiveness → Tim Hortons, McDonalds
5. Customer-Oriented → Ritz-Carlton, Starbucks
Value Chain Analysis
Primary Activities The activities involved with providing a product or service.
1. Inbound Logistics → Receiving inventory, Raw materials
2. Operations → Manufacturing, Processing (different from company to company)
3. Outbound Logistics → FedEx, UPS, Delivery
4. Marketing and Sales → Product, Price, Place, Promotion (4 P’s)
5. Service
Support Activities The background activities that help the business run.
● Firm Infrastructure → Lease, Rent, Properties
● Human Resource → Training, Compensation
● Technology Development
● Procurement → Purchasing, Buying of materials
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Porter’s 5 Forces Model
↳ Defines the industry structure.
↳ Shows if an industry is attractive and profitable.
1. New Entrants How easy is it for new companies to enter the market?
High Easy to set up shop.
Low Laws, setup costs are high, few new competitors.
2. Power of Customers Can the customers put pressure on the firms?
High Lots of choice, very sensitive to price.
Low Something they need, no choice but to buy from you.
3. Threat of Substitutes Are there other products that can be bought instead of the ones in your
industry?
High Your product is one of many alternatives.
Low Your product is unique and irreplaceable.
4. Power of Suppliers Can your suppliers control prices and put pressure on your ability to
produce?
High You need to buy from them.
Low You can switch suppliers easily.
5. Existing Rivals Competitors
High A lot of innovation, advertising, and price wars.
Low Few competitors, and little advertising.
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CHAPTER 6 Business Procedure and Process Management
Processes
Business Process A sequence of activities that serve to accomplish something.
Activity The tasks involved in completing a business process.
Types of Processes in Organizations
Strategic Solving broad, organization - wide issues.
↳ Often made by executives. → New product lines, New menu items, Outsourcing
Managerial Planning, analyzing, and managing resources in order to meet objectives.
→ Schedule maintenance, Inventory management, Financial Statements
Operational Day-to-day tasks structured processes that focus on efficiency.
↳ i. e. front-line staff. → Customer service agents, Bookkeeping, Software testing
IT’s Role in Processes
Executing the Process Acts as a trigger. → Send orders to suppliers
Monitoring Problems and Performance Detects problems. → Order is late, Inventory is low
Capturing and Storing Data Transaction data. → Stores order info and employee data
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Process Improvement
*Process improvement is about changing the way we do things to better meet our objectives*
Business Process Reengineering (BPR) Strategy of rebuilding all processes to make them more
productive and profitable.
↳ Harder to do
- Costly
- Time consuming
- Sometimes fixing something that is not broken
- Unknown outcome
- Lots of changes
Business Process Improvement (BPI) Looking at the outputs of processes and determining what
caused defects.
↳ Less risky and less costly.
↳ Allows for incremental changes over time.
↳ Often uses Six Sigma. → A methodology to ensure that processes have no more than 3.4
defects per square million outputs.
How to
Define Map it out.
Measure Find the metrics.
Analyze Determine the problem.
Improve Fix the problem.
Control Monitor it
Business Process Management (BPM)
Process Modelling To understand the interactions and dependencies between people and
activities.
Web-enables Technology To monitor and track processes across the globe from a single point.
Business Activity Monitoring (BAM) Real time approach for identifying failures or exceptions and
recording them.
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Business Process Model and Notation (BPMN) A standard for communicating business
processes in visual, human terms.
Role A category of activities within the process performed by an actor.
Actor A human or computer that accomplishes certain tasks.
Swimlanes All of the activities in one role.
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CHAPTER 7 Business Processes
Information Silos
↳ Caused when data is stored in different systems that don’t interact.
↳ If not prevented, departments in the company work in isolation.
3 Product Processes
1. Procurement Purchasing
Warehouse » Purchasing » Warehouse » Accounting
2. Production Operations
Warehouse » Production » Warehouse » Production » Warehouse
3. Fulfillment Outbound
Sales » Warehouse » Accounting
4 Operations Management Processes
1. Lifecycle Data Management Supports the design and development of new products from the
idea all the way until it is discontinued.
2. Material Planning Using historical data and forecasts to plan which materials need to be
bought/produced and how much of each.
3. Inventory and Warehouse Management (IWM) How to store and track materials within the
warehouse.
4. Asset Management and Customer Service How to provide service for repairs to customers
internally. (where the product goes, and how do we handle repairs)
2 Management Processes
1. Human Capital Management Managing people in the company including recruitment, hiring,
training, compensation, benefits management, payroll, and dismissal.
2. Project Management Temporary undertakings that are large and complex, to accomplish
something within the business. (managing the time, people, and resources needed)
2 Money Processes
1. Financial Accounting How to track accounting data. ➝ Balance sheet items, Income
statement accounts.
2. Management Accounting Controlling and tracking costs and revenues to help manage
profitability within the company.
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CHAPTER 8 Enterprise Systems
Architecture of Enterprise Systems
Client Server Architecture
↓
Scalable for businesses and reduce IT costs
which help to address growth, seasonality, and better management of resources.
Service Oriented Architecture Instead of accessing all applications separately, applications are
grouped together to form a web service or composite application.
↳ Access to programs happen via web browser.
Enterprise Resource Planning System
Elements of an ERP
↳ One database.
↳ Integrated industry-leading processes needed to use the system.
↳ Involves all 6 components of an IS
- Hardware
- Software
- Data
- Procedure
- People
- Network
Types of Data in ERP
Organizational Data Data about the company.
➝ Locations, Warehouses, Financial accounts
Master Data Data that doesn’t change between transactions. ➝ Customers, Vendors, Materials
↳ Material Master Basic characteristics about materials for each department.
↳ Material Type There are 16 but the most common are:
- Raw materials (ROH)
- Semi-finished goods (HALB)
- Finished goods (FERT)
- Trading goods (HAWA) ➝ for resale
↳ Material Group Materials with similar characteristics. ➝ what its made out of
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Transactional Data Day-today data collected from operations.
↳ Changes by transaction. ➝ Sales made, Items purchased
↳ Transaction Documents Documentation supporting a purchase. ➝ Purchase orders, Invoices
↳ Financial Accounting Documents, Management Accounting Documents and Controlling
Documents Documents that reside inside the enterprise system and are used occasionally to
view and aggregate financials.
ERP Vendors
SAP Gold standard with a 22% market share.
↳ Runs on NETWEAVER
↳ ABAP is the programming language.
Oracle High-quality technical staff with a 15% market share.
Microsoft Dynamics With a 10% market share, all modules are acquired smaller companies.
Other Key Terms
Supplier Relationship Management (SRM) and Supply Chain Management (SCM) Systems
Information systems that help companies to manage relationships with suppliers, often
connecting to their system to better coordinate order and procurement.
Customer Relationship Management (CRM) Systems that help manage customer information,
sales, marketing data, and services.
Product Lifecycle Management (PLM) Systems that help companies research, design, and
manage products throughout their existence, from concept to divesting.
Application Suite Collection of inter-company systems all into one package that can be bought
by companies.
Online Lists Shows master/transaction data related to the process being analysed in the system.
Standard Information Structure Predefined SAP ERP systems that collect data needed to
generate commonly used reports.
User-generated Information Structure Data used to create customized reports with customer
requirements.
Standard Analysis Pre-defined way of analysing the information that comes from the enterprise
system.
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CHAPTER 9 Procurement Process
Organization Data
Enterprise-Level Purchasing Purchasing done at the client level.
Company-Level Purchasing Purchasing done at the company-code level.
Plant-Level Purchasing Purchasing done at the plant level
Centralized
Advantages
- Control
- Economics
- Standardization
Decentralized
Advantages
- Customizability
- Faster supply chains
- Easier to forecast
Disadvantages
- Harder to forecast
- Lack of customizability
Disadvantages
- Lack of control
- Less economies of scale
- Difficult to standardize.
Master Data - Material Master
Moving Average Price Value of material divided by quantity to define average price per unit.
↳ Updated each time the price is affected.
Standard Price Periodically updated price.
↳ Does not fluctuate when inventory changes.
↳ Usually monthly or quarterly to determine the value of materials.
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Purchasing Data
Good Receipt Processing Time How long it takes the company to unpack the boxed, count the
material, inspect, and store them.
Delivery Tolerance How much variation can be allowed in the delivery in terms of there being
too much or too little.
↳ No large scale delivery is perfect.
Plant/Storage Data
Master Data - Vendor Master
General Data About the supplier. ➝ Name, Address, Contact info
Accounting Data Bank information, Taxes, Payment options
Purchasing Data Terms with the vendor who is the purchasing organization that deals with
them.
Master Data - Purchasing Info Records
Information about a specific material provided by a specific vendor.
➝ Delivery times,
Pricing condition types,
Surcharges, Freight
Procurement Process
1. Requirements Determination Determine that something is needed and create a requisition.
Source List List of vendors that you work with
2. Order Processing Create the official purchase order.
3. Goods Receipt
Delivery Document or Packing List Outlines what's included in the package and purchase order.
Goods Receipt Document Data from the purchase order are copied into this document to
document on our end.
4. Invoice Verification
Three-Way Match Most common way of verifying invoices to ensure the purchase order, goods
receipt/delivery document, and invoice are aligned.
5. Payment Processing After receiving goods.
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CHAPTER 10 Data and Knowledge Management
Difficulties in Managing Data
Too Many Possibilities Due to the wealth of possibility in any decision, proper data doesn’t
always mean you can make a perfect decision.
Information Overload We can now measure data in Exabytes (EB).
Data Quality
Dirty Data/Integrity Problematic differences in the formatting.
Data Rot The medium on which the data us stored can deteriorate.
Missing Values We don’t always collect all the data we’ll ultimately need.
Data Not Integrated Collected for different purposes, store separately.
Data Granularity The degree of summarization or detail.
Coarse Data Highly summarized.
Fine Data Lots of detail, too precise.
Storage Problems
Data Redundancy The same data can be stored in multiple locations.
Data Isolation Applications cannot access data associated with other applications.
Data Inconsistency Various copies of the data are not the same.
Data Security Need to put everything in one place to reduce risk of loss and theft.
Data Independence Applications and data that are dependant on one another need to be
linked.
Databases Defined
↳ Each row is called a record.
↳ Each column is a field.
Primary Key A column that contains unique data that identifies a row/record in a table.
Foreign Key A column that refers to another table to form a relationship between the 2.
Metadata Data about data.
Database Management Systems (DBMS)
↳ Software that is used to create, process, and manage databases.
↳ Provides users with access to the database.
↳ Data can be created, modified, deleted, read, and secured
Most Popular DBMS Access, SQL Server, MySQL, DB2
Structured Query Language (SQL) The language used to speak to databases.
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Entity Relationship Diagram
Entities Something that we are collecting data about.
Attributes Characteristics about the entity.
Relationships Common data between entities.
Types of Relationships
Big Data
↳ Exhibits variety.
↳ Includes structures, unstructured, and semi-structured data.
↳ Generated at high velocity and uncertain patterns.
↳ Does not fit into traditional neatly structured DBs.
↳ Sophisticated IS needed in order to properly process, transform, and analyze it.
Types of Big Data
- Traditional Enterprise Data ➝ Customer data, Transactional data, Accounting data
- Machine Generated/ Sensor Data ➝ Stats and results
- Social Data ➝ Customer feedback, Tweets, Likes, Comments
- Images
Characteristics of Big Data
1. A lot of volume
2. Entering the business rapidly
3. Many different topics, all over the place
Problems with Big Data
1. Data can come from untrusted sources
2. Could be inaccurate, incomplete, and incorrect
3. Data can change as the conditions do
Collecting Data
Online Transaction Processing (OLTP) Systems that collect and process data online immediately
as it is entered in real time.
↳ The opposite of Batch Processing. ➝ Waiting for the accumulation of data.
Data Resource Challenge Collecting data that you don’t need or use.
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Processing Data
Online Analytical Processing (OLAP) Systems that process historical data to support decision
making.
↳ Extremely expensive to maintain.
↳ Large volumes of data.
↳ The resulting reports are called OLAP Cubes.
↳ Allows you to drill down. ➝ Break the data down into fine levels of detail
↳ An example of DSS.
Data Warehouse
↳ Set of databases designed to support decision-making in an organization.
↳ Structured for fast online queries and exploration of data.
↳ Can aggregate lots of data from many different operational systems.
↳ Master DB for metadata.
Data Mart
↳ Database focused on addressing a particular problem or business unit.
↳ Lower-cost, smaller scale compared to data warehouse.
↳ Usually pulls data from the data warehouse.
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