CHAPTER I & II Key Term: 1. Ad hoc report: specific reports to help solve specific problems. 2.Closed system: is the system that can stand alone, with no connection to another system, nothing flows in from another system, nothing flows out to another system. 3. Data processing: is the changing and manipulating the data in the IS. 4. Data warehouse: is the large archival database or collection of related databases that serves in the organization. 5. Data: is the plural of Latin datum, literally a given or fact, which may take the form of a number, a statement, or a picture, or data is the raw materials in the production of information. 6. Database: is the large pool of the data. 7. Decision Support System (DSS): is the information al build system of organization which especially designed to help managers make the decision. 8. Decision: is the way that an organization or individual finding one particular way when there are more than one way to solve a problem. In other word, when an organization or individual finds more than one way to solve the problem must take a decision. 9. E-commerce: is a way of buying and selling goods and services via a telecommunications network. 10. Enterprise applications system: is the enterprise software or system thinking that led many manufacturing and other organization to adopt system that fulfill the functions of inventory planning, purchasing, payment, billing…together. 11. Exception Report: is the periodic or ad hoc reports that flag facts or numbers that deviate from preset standards. 12. Executive information system (EIS) or executive support system (ESS): is a system use to help highranking officers direct an organization which often programmed to integrate thousands of pieces of data and produce summary reports. 13. Executive support system (ESS) Process: is any manipulation of data. Input: entering data into the Information System. 17. make decisions. 28. Information System (IS): consist of all components that work together to process data and produce information. 22. 23. Input device: tool used to enter data into an IS. 26. Information Map: is the description of data and information flow within an organization and show a network of information subsystems that exchange information with each other and with the world outside the system. country. decision making. 27. Open system: the system that interfaces and interacts with other systems in order to operate. or even the entire world. 21. 19. Management information system (MIS): the computer-based information systems that can be used for planning. Problem: is any undesirable situation. Information: data that have been manipulated or processed to be meaningful and useful.14. county. Knowledge worker: the workers whose main function is to generate information based on knowledge in their respective fields. and problem solving rather than reporting transactions. state. city. project leaders and marketing managers. 15. Output: getting the information out of Information System. Geographic Information Systems (GISs): can be used to tie data to physical location such as a neighborhood. 25. 20. 30. Subsystems: component of a larger system-with sub goals. Expert System: Information systems (ISs) can be developed that incorporate human expertise. control. 29. Group Decision Support System (GDSS): a program that help a group. Information Technology (IT): a term that refers to all technologies that collectively facilitate construction and maintenance of information system. usually with the goal of producing information. Those people are scientists. 18. . all contributing to meeting the main goal. 24. budget planners. rather than an individual. Storage: storing data and information. 16. communication occurs between computers over great distances. even if it is not. 41. 40. 46. or multiple goals. Transaction: is a business event: a sale. so they willing to go there. 47. First mover: an organization that is the first to offer a new product or service.31. Affiliate programs: Web site that places link to commercial sites. Locking in clients or suppliers: people always think about marketing. and the like. 43. 35. Creating new and unique products and services: start offering an identical or similar product or service for a comparable or lower price. 37. 39. processing it. Creating a standard: is the way to make a product or service become well and high quality. . Synergy: combine resources produce output that exceeds the sum of outputs of the same resources employed separately. 45. Bleeding edge: failures that occur when organization tries to be on the technological leading edge. 38. 34. Transaction processing system (TPS): is a system that records transactions such as a cash register or order entry terminal. 32. 44. Establishing high switching costs: is the way which starts to increase the expenses incurred when a customer stops buying a product or service from one business and starts buying it from another. by accepting input. 33. Competitive advantage: refers to offering a product or service that competitors cannot provide or providing the same product or service more attractively to customers. Telecommunication: communication that takes place between computer components. Differentiation: is the way to persuading consumers that its product or service is better than its competitors’. 36. 42. the hiring of a new employee. System: is an array of components that work together to achieve a common goal. a purchase. Enhancing existing products and services: is the way that organization may actually add to their product or service to enhance its value to the consumer. allowing any purchases by clicking. and produce output in organized manner. Critical mass: is a body of clients that is large enough to attract many other clients. Alliances: Companies who gain competitive advantage by combining services to make them more attractive because of cheaper service and one-stop shopping. the price of each model. Why are these subsystems and not systems? Three examples of subsystems not operating in the context of IT: . name of their illness. and revenues… Computer shop: the data that are useful for computer shop can be the new model of laptop or desktop. 51. SivY 3. number of customers. names of meal. number of each computer brand in stock… 4. Question: 1. so called competitive advantage. and other tools. expenses. 49. 52.48. Raising barriers to entrants: is anything that prevents entry when entry is socially beneficial. size of Ram. number and address of the patient´s family. CPU. 2. Give three examples of subsystems not operating on the context of IT. Strategic advantage: A position in which one dominate a market. price of vegetable. What does the word “processing” in data processing mean? The word “processing” in data processing mean: is the manipulation of data into information using mathematical. Reengineering: involve adoption of new machinery and elimination of management layers. 50. hard disk size. what can they eat. statistical. Three business examples of data that must be processed to provide useful information: Hospital: the data that are useful in this business can be the name of patients. Give three business examples (not mentioned in the text) of data that must be processed to provide useful information. Reducing costs: lowering prices. Strategic information system (SIS): Any information system that gives its owner a competitive advantage. name of the medicines that they have to use… Restaurant: the data that are useful for restaurant can be price of meat. the color that customers like. if you know that some customers do not pay their debts on time.input that the system takes to produce information. you can solve problem with the aid of information and simple accounting software can help. human-computer combination allows the results of human thought to be translated into efficient processing of large amounts of data. “An information system consists of hardware and software”. Its goal is to manage and facilitate the education quality in the field of management. The management collage in a particular university is the subsystem of university management which consists of many collages and functions. A problem is any undesirable situation. In this case. humans work relatively slowly and make mistakes. A chapter in a book is also a subsystem of the entire book since the book will be incomplete and thus leads to incomplete understanding without a chapter. but its end goal is operating the university. What is a problem? Give an example of a business problem and discuss how a computer-based information system could solve it. The HR department of a given company is a subsystem of the whole company management because it has distinctive goals from the main system. 7. 5. A computer cannot make independent decisions. 6. Thus. For example. Why is this statement inadequate? Because it consists of other major components as well: Data\information. but you don’t know who or how much they owe. How do TPSs and DSSs differ? TPSs (Transaction processing systems): systems that record transactions such as a cash register or order entry terminal. 8. A computer works quickly and accurately. . What is synergy? How is synergy accomplished when a person uses a computer? Synergy (work together) occurs when combined resources produce output that exceeds the sum of the outputs of the some resources employed separately. so you have problem. maximizing profit. but those goals contribute to the company goal. DSSs (Decision support systems): information systems which is designed to help managers make decisions. marketing strategy. sound. What is the most prevalent type of information system? Why is this type of IS ubiquitous? . After graduation. How can a DSS help make decisions? A DSS can help make the decision by finding the optimal course of action and answer the question “what if?” DSS are programmed to process raw data. project leaders and marketing managers. output. and those people are scientists. organizing. pictures.rules for achieving optimal and secure operations in data processing. Who is considered as knowledge worker? Will you have a career as a knowledge worker? Explain? The knowledge workers are those whose main function is to generate information based on knowledge in their respective fields. International Business Management. 10. I would become a manager or project leader who will be able to use the learned skill to get the job done effectively. Telecommunication. not an absolute alternative to human decision making. make comparisons. (Glean: to collect info in small amounts and often difficulty) 11. budget planners. and generate information to help manages glean the best alternatives for financial investment. storage devices. credit approval. 12. 13. Note the word “support” in decision support systems? Why are these applications not called dicisionmaking systems? Note the word “support” in decision support systems term. network manager. When does a manager need to make a decision? Manager need to make decision when they want to make planning. leading. 9. Hardware. and animation in the form of electronic data. People. system analysts etc. Procedures\policies.hardware and software that facilitates fast transmission and reception of text. and data communication equipment.a computer and its peripheral equipment: input.technicians. The reasons why these applications are not called Decision-making systems because a DSS is only a decision aid. I will exactly have a career as knowledge worker providing that I am now being trained for a specific field. and controlling. What is an exception report? How does it help save managers’ time? Exception report is the periodic or ad hoc reports that flag facts or numbers that deviate from preset standard. Often. 14. withdrawing money from a checking account. corporations’ perception of information changed. and these systems can link different functions and sites of a business because of telecommunication. ATMs. What should an information system achieve for an organization in order to be considered a strategic information system? In order to be considered a strategic information system. finance. How did the role of information systems change in the late 1970s and early 1980s? During the 1970s and 1980s. and other systems that record data and perform basic processing. TPSs (Transaction processing systems). and so on in order to pursue the organization goal. 16. TPSs are usually used at the boundaries of the organization. IS must work with managers of other functional units including marketing. applying information systems to long-term planning completely changes the way firm conducts its business. 17. Executives learned that information can significantly change an organization’s long-term strategic position in national and global markets. 15. an information system achieve IS must serve an organization goal rather than simply provide information. purchasing. Some systems even change the product or service that a firm provides. For example: making a purchase at a store. making a payment to creditor or paying an employee. Boundaries is at the point where the organization transaction business with other parties. human resource. 18. They allow managers to save time by focusing on exceptions and take care of a situation that caused an unplanned event. What strategic goal can an IS attain that does not involve wresting market share from competitors? . What are boundaries? Give three examples of boundaries. because they are systems such as cash register. Why? Because SIS is the information system that help seize opportunities which is less tangible. 19.” What does “creating a standard” mean in the software industry. and the company may encounter loses. 21. or involve from an organization’s existing ISs. Why? It is sometimes hard to convince the top managers to commit funds to develop and implement an SIS because it involves risk. there are 2 conditions must exist: 1st: the information system must serve an organizational goal rather than simply provide information. reengineering involves implementing new ISs. Software developers have made great efforts to “create a standard. for example in the banking industry. and so on) to pursue the organizational goal. 2nd: the organization´s IS unit must work with managers of other functional units (including marketing. purchasing. or it can evolve from an organization’s existing IS. In case the implementation does not go as planned. the entire management system has to be changed. Implementing the SIS. The strategic goal that IS can attain and does not involve wresting market share from competitors is Strategic Information System (SIS). An SIS often offers a corporative short-lived advantage. What conditions must exist in an organization planning as SIS? In an organization planning an SIS. Sometimes it is difficult to convince top management to commit funds to develop and implement an SIS. and why are companies doing it? . human resources. 23. and it takes time as well as budget. 22. This strategic can be developed from scratch. Developing and implementing SIS is not always beneficial and runs as expected. Almost always. 20. The corporative shortlived advantage is identifying and seizing the opportunities. finance. What is reengineering? Reengineering is the process of designing a business process from scratch to achieve hundreds of percentage points in improvement rates. the outcome might be disastrous or the company has to shut down. it can be developed from scratch. 2). 24. it starts bund the browser with windows and forcing the PC maker who wanted to sell the machines need their product. real-time TV. Classify the initiatives of the JetBlue Reducing the cost: Massive Automation (reduce the cost of booking and reservation) Enhancing products and services: Enhanced service (leather seat. creating a moving target for competitors. the organization should continuously modifies and enhances it. Referring to the list of strategic moves (see figure 2. “creating a standard” in the software industry means the way to make a product or service become good quality and enhances capability. they can get paid from other companies because their browser can links automatically to other companies sites. check-in and language 27. on-schedule departure and arrival and open skies system) Differentiating the products and services Locking the buyers: convenient booking. Adobe encourages PC users to download its acrobat PDF reader free of charge. especially in the Internet arena. how does their generosity help them make money? Adobe encourage PC user to download its acrobat PDF reader free of charge. How does this eventually help them strategically? If they give the application away. Companies are doing it because they want to lock in either suppliers to their mode of operation or buyers to their product and they have pursued this strategy vigorously.com? . Macromedia encourage people to download its Flash player free for charge. and they can hefty sales of related software. reservation. Moreover. classify the initiative of JetBlue. 26. and Macromedia encourage people to download also can help their strategic:Widespread of using their web browsers. Their generosity help them to make money: Great numbers of people use their software. What were the reasons for the failures of FordDirect. What should an organization do to sustain the strategic benefits of an IS? An organization can sustain the strategic benefits of IS. 25. the consumers were not familiar with the new online purchasing patterns. First of all. the suppliers lowered the prices greatly and thus and made no profits for long term. businesses have to take great risk too. Many state laws do not permit cutting an agent out of the sale. especially the online retailer. so others soon emulated the new services they offered.com were: The buyers were not enthusiastic about having Web access in their vehicles as Nasser predicted. it made no sense for investors to infuse their money into such uncertain businesses. inspiring by successful stories of other online businesses.com businesses were booming but were forced to shut the door because of a few reasons. which are only magnified when implementing new technology. The reasons for failure of FordDirect. Furthermore. so the B2C initiative failed. dot. What does the term of bleeding edge mean? The bleeding edge refers to the failure that occurs because an organization tries to be on the technological leading edge. these businesses failed to analyze what customers needed and wanted. 29. The second reason is that there were many businesses entered into the small market. Last but not least. 28. and being on the bleeding edge often means that implementation costs are significantly more than anticipated. . Businesses have experienced disasters with new business ideas. and thus create loses. and the number of customers were quite small. Being at the front line. Another reason is that these companies failed to implement the requirements for strategic advantages. State franchising laws did not allow Ford to bypass its dealers. When there were competitors. What are the reasons of failure of so many Web-based businesses in the early 2000s? During the year 2000. What does the term first mover mean? First mover: an organization that is the first to offer a new product or service. The company did not carefully consider state laws and its relationship with dealers. 30.