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-provides a general view of the firm, its competitors, and the firm's environment. Includes new market entrants, substitute products, customers, and suppliers. |
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Efficient customer response system |
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-directly links consumer behavior to distribution and production and supply chains. |
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-the ability to offer individually tailored products or services using the same production resources as mass production |
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-the cost of switching from one product or service to competitor and loyalty to your firm. |
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-Use information systems to produce products and services at a lower price than competitors while enhancing quality and level of service. Ex: Walmart |
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-Use information systems to differentiate products, and enable new services and products. Ex: Google, eBay, Apple, Starbucks |
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-Use information systems to enable a focused strategy on a single market niche; specialize Ex: Hilton Hotels, Harrah's |
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Customer and supplier intimacy |
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-Use information systems to develop strong ties and loyalty with customers and suppliers Ex: Toyota Corporation, Amazon |
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Substitute products or services |
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-Enables new substitutes to emerge with new approaches to meeting needs and performing functions. |
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Customers' bargaining power |
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-shifts bargaining power to customers due to the availability of global price and product information |
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Suppliers' bargaining power |
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-Tends to raise bargaining power over suppliers in procuring products and services; however, suppliers can benefit from reduced barriers to entry and from the elimination of distributors and other intermediaries standing between them and their users. |
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-Reduces barriers to entry, such as the need for a sales force, access to channels, and physical assets; it provides a technology for driving business processes that makes other things easier to do. |
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Positioning and rivalry among existing competitors |
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-Widens the geographic market, increasing the number of competitors and reducing differences among competitors; makes it more difficult to sustain operational advantage; puts pressure on competition to compete on price. |
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-model that highlights the primary or support activities that add a margin of value to a firm's products or services where information systems can best be applied to achieve a competitive advantage. |
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Activities most directly related to the production and distribution of a firm's products or services |
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-activities that make the delivery of a firm's primary activities possible. Consist of the organization's infrastructure, human resources, technology, and procurement. |
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Setting strict standards for products, services, or activities and measuring organizational performance against those standards. |
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-the most successful solutions or problem-solving methods that have been developed by a specific organization or industry. |
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Customer-driven network of independent firms who use information technology to coordinate their value chains to collectively produce a product or service for a market. |
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Activity at which a firm excels as a world class leader. |
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Model of strategic systems at the industry level based on the concept of a network where adding another participant entails zero marginal costs but can create much larger marginal gains. |
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Uses networks to link people, assets, and ideas, enabling it to ally with other companies to create and distribute products and services without being limited by traditional organizational boundaries or physical locations |
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technologies with disruptive impact on industries and businesses, rendering existing products, services and business models obsolete. |
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Form of business organization characterized by heavy centralization of corporate activities in the home country of origin. |
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form of business organization that concentrates financial management and control out of a central home base while decentralizing production, sales, and marketing operations to units in other countries. |
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form of business organization in which a product is created, designed, financed, and initially produced in the home country, but for product-specific reasons relies heavily on foreign personnel for further production, marketing, and human resources. |
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Truly global form of business organization where value-added activities are managed from a global perspective without reference to national borders, optimizing sources of supply and demand and local competitive advantage. |
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systems development and operation occur totally at the domestic home base. |
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development occurs at the home base but operations are handed over to autonomous units in foreign locations. |
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each foreign unit designs its own unique solutions and systems. |
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systems development and operation occur in an integrated and coordinated fashion across all units. |
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product or service's conformance to specifications and standards. |
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Total quality management (TQM) |
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a concept that makes quality control a responsibility to be shared by all people in an organization. |
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A specific measure of quality, representing 3.4 defects per million opportunities; used to designate a set of methodologies and techniques for improving quality and reducing costs. |
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the total elapsed time from the beginning of a process to its end. |
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computer-aided design (CAD) system |
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Information system that automates the creation and revision of designs using sophisticated graphics software. |
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Business Process Management (BPM) |
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Business process management is an approach to business which aims to continuously improve and manage business processes. |
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Business Process Reengineering (BPR) |
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The radical redesign of business processes, combining steps to cut waste and eliminating repetitive, paper-intensive tasks in order to improve cost, quality, and service, and to maximize the benefits of information technology. |
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Provides the final certification that the system is ready to be used in a production setting |
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Component-based development |
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Building large software systems by combining pre-existing software components. |
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Computer-aided software (CASE) Engineering |
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provides software tools to automate the methodologies described to reduce the amount of repetitive work in systems development. |
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the process of changing from the old system to the new system |
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the modification of a software package to meet an organizations unique requirements without destroying the package software's integrity. |
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primary tool for structured analysis that graphically illustrates a system's component process and the flow of data between them. |
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A risky conversion approach where the new system completely replaces the old one on an appointed day. |
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descriptions of how an information system works from either a technical or end-user standpoint. |
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the development of information systems by end users with little or no formal assistance from technical specialists |
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the interaction of people and machines in the work environment, including the design of jobs, health issues, and the end-user interface of information systems. |
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As part of the systems analysis process, he way to determine whether the solution is achievable, given the organization's resources and constraints. |
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Formal planning and tools |
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improve project management by listing the specific activities that make up a project, their duration, and the sequence and timing of tasks. |
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visually represents the timing, duration, and human resource requirements of project tasks, with each task represented as a horizontal bar whose length is proportional to the time required to complete it. |
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Simon's final stage of decision-making, when the individual puts the decision into effect and reports on the progress of the solution. |
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A detailed statement of the information needs that a new system must satisfy; identifies who needs what information, and when, where, and how the information is needed |
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a road map indicating the direction of systems development the rationale, the current situation, the management strategy, the implementation plan and the budget. |
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benefits that are not easily quantified; they include more efficient customer service or enhanced decision making |
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Joint application design (JAD) |
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process to accelerate the generation of information requirements by having end users and information systems specialists work together in intensive interactive design sessions. |
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changes in hardware, software, documentation, or procedures to a productions system to correct errors, meet new requirements,or improve processing efficiency. |
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Object-oriented development |
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approach to systems development that uses the object as the basic unit of systems analysis and design. The system is modeled as a collection of objects and the relationship between them. |
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Organizational impact analysis |
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study of the way a proposed system will affect organizational structure, attitudes, decision making, and operations. |
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a safe and conservative conversion approach where both the old system and its potential replacement are run together for a time until everyone is assured that the new one functions correctly. |
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graphically depicts project tasks and their interrelationships, showing the specific activities that must be completed before others can start. |
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introduces the new system in stages either by functions or by organizational units. |
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an analysis of the portfolio of potential applications within a firm to determine the risks and benefits, and to select among alternatives for information systems. |
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describe the logic of the processes occurring within the lowest levels of a data flow diagram. |
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the stage after the new system is installed and the conversion is complete; during this time the system is reviewed by users and technical specialists to determine how well it has met its original goals. |
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a planned series of related activities for achieving a specific business objective. |
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Application of knowledge, skills, tools and techniques to achieve specific targets within specified budget and time constraints. |
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the process of building an experimental system quickly and inexpensively for demonstration and evaluation so that users can better determine information requirements. |
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Rapid application development (RAD) |
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process for developing systems in a very short time period by using prototyping, fourth generation tools, and close teamwork among users and systems specialists. |
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Request for proposal (RFP) |
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a detailed list of questions submitted to vendors of software or other services to determine how well the vendor's product can meet the organization's specific requirements. |
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defines what work is or is not included in a project |
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a quick method fro deciding among alternative systems based on a system of ratings for selected objectives. |
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system documentation showing each level of design, the relationship among the levels, and the overall place in the design structure; can document one program, one system or part of one program. |
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refers to the fact that techniques are carefully drawn up, step by step, withe each step building on a previous one. |
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tests the functioning of the information system as a whole in order to determine if discrete modules will function together as planned. |
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the analysis of a problem that the organization will try to solve with an information system. |
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details how a system will meet the information requirements as determined by the systems analysis. |
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Systems development lifecycle (SDLC) |
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a traditional methodology for developing an information system that partitions the systems development process into formal stages that must be completed sequentially with a very formal division of labor between end users and information systems specialists. |
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benefits that can be quantified and assigned a monetary value; they include lower operational costs and increased cash flows. |
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prepared by the development team in conjunction with the users it includes all of the preparation for the series of tests to e performed on the system. |
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the exhaustive and thorough process that determines whether the system produces the desired results under known conditions. |
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the process of testing each program separately in the system. Sometimes called program testing. |
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User-designer communications gap |
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the differences in backgrounds, interests, and priorities that impede communication and problem solving among end users and information systems specialists. |
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Sales and operations planning (S & OP) |
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A process of balancing resources and forecasted demand, aligning an organization's competing demands from supply chain to final customer, while linking strategic planning with operations over all planning horizons. |
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A plan that includes forecast levels for families of products of finished goods, inventory, shortages, and changes in the workforce. |
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The process of breaking an aggregate plan into greater detail. |
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A planning strategy that sets production equal to forecast demand. |
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Maintaining a constant output rate, production rate, or workforce level over the planning horizon. |
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A planning strategy that uses two or more controllable variables to set a feasible production path. |
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Aggregate planning techniques that work with a few variables at a time to allow planners to compare projected demand with existing capacity. |
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Transportation method of linear |
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A way of solving for the optimal solution to an aggregate planning problem. |
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Revenue (or yield) management |
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Capacity decisions that determine the allocation of resources to maximize revenue or yield. |
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Master production schedule |
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A timetable that specifies what is to be made and when. |
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