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Managing information system test
Lesion 1: Information system and business
1. How Information system change business?
①Increase in wireless technology use, Web sites②increased business use of Web 2.0
technologies
③ Cloud
computing,
mobile
digital
platform
allow
more
distributed
work,
decision-making, and collaboration
2. Why IS important to business?
①IS can help business firms to achieve six strategic business objectives including
Operational excellence, New products, services and business models, Customer and
supplier
intimacy,
Improved
decision
making,
Competitive
advantage
and
Survival②Information system is instrument for creating value③Investments in
information technology will result in superior returns including Productivity
increases, Revenue increases and Superior long-term strategic positioning
3. The benefit of IS
①Information systems can improve overall performance of business units by promoting
synergies and core competencies②IT changes relative costs of capital and the costs
of information③Information systems technology is a factor of production, like
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capital and labor④IT affects the cost and quality of information and changes
economics of information⑤IT lowers market transaction costs for a firm, making it
worthwhile for firms to transact with other firms rather than grow the number of
employees⑥IT can reduce agency costs, making it possible for firms to grow without
adding to the costs of supervising, and without adding employees.
4. Define an information system and describe the activities it performs
① IS consists of Set of interrelated components, Collect, process, store, and
distribute information and Support decision making, coordination, and control②Main
activities: Input, Processing and Output. Different from raw data and computer or
computer program. Using information systems effectively requires an understanding
of the organization, management, and information technology shaping the systems. An
information system creates value for the firm as an organizational and management
solution to challenges posed by the environment.
Lesion 2 various systems
1. how IS enhance business? Increasing efficiency of existing processes and Enabling
entirely new processes that are capable of transforming the businesses
2. TPS: supporting operational level employees and Major source of data for other
systems(differ from other system) Perform and record daily routine transactions
necessary to conduct business
Allow managers to monitor status of operations and relations with external
environment
Serve operational levels
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Serve predefined, structured goals and decision making
3. MIS: supporting managers
Serve middle management
Provide reports on firm’s current performance, based on data from TPS
Provide answers to routine questions with predefined procedure for answering them
Typically have little analytic capability
4. DSS: supporting managers
Serve middle management
Support non-routine decision making
Often use external information as well from TPS and MIS
Model driven DSS, such as Voyage-estimating systems
Data driven DSS, such as Intrawest’s marketing analysis systems
5. ESS: supporting executives and Recipient of data from lower-level systems
Support senior management
Address non-routine decisions
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Incorporate data about external events (e.g. new tax laws or competitors) as well
as summarized information from internal MIS and DSS
6. The importance of enterprise applications
Coordination of daily activities
Efficient response to customer orders (production, inventory)
Provide valuable information for improving management decision making
Lesion 3
1. Features of organization.①Use of hierarchical structure ②Accountability,
authority in system of impartial decision making③Adherence to principle of
efficiency④Routines and business processes⑤Organizational politics, culture,
environments
and
structures⑥Goals⑦Leadership
styles⑧Tasks⑨Surrounding
environments
2. Organizational environments
Organizations and environments have a reciprocal relationship
Organizations are open to, and dependent on, the social and physical environment
Organizations can influence their environments
Environments generally change faster than organizations
Information systems can be an instrument of environmental scanning, act as a lens
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3. The impact of Disruptive technologies and internet
Technology that brings about sweeping change to businesses, industries, markets, such
as personal computers, word processing software and the Internet.
The Internet increases the accessibility, storage, and distribution of information
and knowledge for organizations
The Internet can greatly lower transaction and agency costs
4. Internet has changed competitive forces and competitive advantage
①Transformation, destruction, threat to some industries, such as travel agency,
printed encyclopedia, newspaper
②Competitive forces still at work, but rivalry more intense③Universal standards
allow new rivals, entrants to market ④New opportunities for building brands and loyal
customer bases
5. Four competitive strategies enabled by IS
Low-cost leadership: Produce products and services at a lower price than competitors
while enhancing quality and level of service, Wal-Mart
Product differentiation: Enable new products or services, greatly change customer
convenience and experience, Google, Nike, Apple
Focus on market niche: Use information systems to enable a focused strategy on a single
market niche; specialize, Hilton Hotels
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Strengthen customer and supplier intimacy: Use information systems to develop strong
ties and loyalty with customers and suppliers; increase switching costs, Amazon.
Lesion 4
1. Key technological trends that heighten ethical concerns
① Doubling of computer power②Rapidly declining data storage costs③Networking
advances and the Internet ④Advances in data analysis techniques
2. Basic concepts for ethical analysis
Responsibility, Accountability, Liability and Due process
3. How the Internet challenges the protection of individual privacy and intellectual
property
Cookies: Allow Web sites to develop profiles on visitors
Web beacons/bugs: Web pages to monitor who is reading message
Spyware: Surreptitiously installed on user’s computer
4. Challenges to intellectual property rights
Digital media different from physical media, including ①Ease of replication, ②Ease
of transmission, ③Difficulty in classifying software④Difficulties in establishing
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uniqueness
5. Three main ways to protect intellectual property
Trade secret: Intellectual work or product belonging to business, not in the public
domain
Copyright: Statutory grant protecting intellectual property from being copied for
the life of the author, plus 70 years
Patents: Grants creator of invention an exclusive monopoly on ideas behind invention
for 20 years
Lesion 5 IT infrastructures
1. IT infrastructure includes:
Set of physical devices and software required to operate enterprise
Set of firm-wide services including Telecommunications services, Data management
services and Application software services
“Service platform” perspective more accurate view of value of investments
2. IT Infrastructure has 7 main components
1.Computer hardware platforms
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2.Operating system platforms
3.Enterprise software applications
4.Data management and storage
5.Networking/telecommunications platforms
6.Internet platforms
7.Consulting system integration services
3. Cloud computing and its advantages and disadvantages
Advantage: On-demand (utility) computing services obtained over network such as
Infrastructure as a service, Platform as a service and Software as a service
Cloud can be public or private
Allows companies to minimize IT investments
Disadvantage: Concerns of security, reliability
4. Current trends in computer hardware and software platforms
Hardware: Client machines, Servers, Mainframes, Top chip producers and Top firms
Software: open-source software, software outsourcing
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Lesion 6-7 enterprise system, supply chain and application
1. BI
Business Intelligence (BI) is the use of information systems to gather and analyze
information from internal and external sources in order to make better business
decisions.
Class of software applications
Analyze current and historical data to find patterns and trends and aid
decision-making
Used in systems that support middle and senior management, such as Data-driven DSS
Tools for consolidating, analyzing, and providing access to vast amounts of data to
help users make better business decisions
2. Enterprise systems help businesses achieve operational excellence
① Increase operational efficiency②Provide firm-wide information to support
decision making③Enable rapid responses to customer requests for information or
products④Include analytical tools to evaluate overall organizational performance
3. How does supply chain management systems involve planning, production, and
logistics with suppliers? Process: ①Procuring raw materials②Transforming them into
products③Distributing the products
importance: ?Match supply to demand?Reduce inventory levels?Improve delivery
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service?Speed product time to market?Use assets more effectively?Reduced supply
chain costs?Increased sales
4. How do customer relationship management systems help firms achieve customer
intimacy?
Boosting customer retention
Enhancing and optimizing customer retention and loyalty is a primary objective of
CRM
Identify, reward, and market to the most loyal and profitable customers
Evaluate targeted marketing and relationship programs
5. Business value of customer relationship management
?Increased customer satisfaction
?Reduced direct-marketing costs
?More effective marketing
?Lower costs for customer acquisition/retention
?Increased sales revenue
?Reduced churn rate
6. The challenges posed by enterprise applications
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Highly expensive to purchase and implement enterprise applications – total cost may
be 4 to 5 times the price of software
Requires fundamental changes such as Technology changes, Business processes changes
and Organizational changes
Incurs switching costs, dependence on software vendors
Requires data standardization, management, cleansing
Lesion 8 knowledge management
1. Knowledge management
Set of business processes developed in an organization to create, store, transfer,
and apply knowledge
2. Enterprise management systems
Help capture, store, retrieve, distribute, preserve
Bring in external sources
Tools for communication and collaboration
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3. What knowledge management systems can do or importance?
Provide tools for management, delivery, tracking, and assessment of various types
of employee learning and training
Support multiple modes of learning
Automates selection and administration of courses
Assembles and delivers learning content
Measures learning effectiveness
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