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MIS111
Exam Review Session September, 19 2007
Technology in Business
Finance & Accounting
Computer systems automate transaction handling
ex: paying invoices, billing customers
Generate financial reports for internal and external parties
Economics
Data Mining to organize and analyze data
Economic Activity Measures, GDP, Federal Reserve Monetary Policy
Marketing & Sales
Track sales Analyze trends CRM
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Human Resources
Keep track of employees information Benefits Training g Hiring
Manufacturing & Services
Mfg. facilities often computerized Databases used to keep track of customer information
Management & Organizations
Track revenues and profits Forecasting
Components of MIS
What does processing data really mean?
Data: D Raw Facts R F Information: Contextual Data Knowledge: Actionable Information
What is the business decision process?
Data collection (Organization) Data analysis (Decision Support) Data distribution (Communication)
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Competitive Strategy leads to a competitive advantage over companies producing similar products.
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Competitive Strategy
Cost C Quality
Conformance, Performance
Time
Lead Time, On Time, Time to Market
Design and Flexibility
Volume, Customization
Strategic IS
Must:
Serve organizational goal/purpose Work with business functions to achieve goal Determine if need for reengineering exists
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Achieving Competitive Advantage
Reduce cost ... reduce price, sell more units, gain market share Raise barriers R i b i to market entrants ... reduces competition k d ii Establish high switching costs ... keeps customers Create new products/services ... first mover, unique offering Differentiate products/services ... attracts customers Enhance products/services ... better value to customers Establish alliances ... cross-industry synergy crossLock in suppliers/buyers ... bargaining power
Components of MIS
Processing Data: :
Data: Raw Facts Information: Contextual Data Knowledge: Actionable Information
Business Decision Process: :
Data collection (Organization) Data analysis (Decision Support) Data distribution (Communication)
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Databases
Organized data store with tools to manage and manipulate data Data Organized By:
Character - smallest piece of data Field - single piece of information Record R rd - collection of fields ll ti f fi ld File - collection of related records Database - collection of related files
Database Models
Traditional Model
Based on flat files
Relational Model
Based on linked tables Uses relational algebra
Tuple: Tuple: record (row) Attribute: Attribute: field (row and column) Relation: Relation: table (group of rows and columns) Key: Key: identifier field (connector to link tables)
ObjectObject-oriented Model
Based on data structures and relevant procedures Data structures and methods are hidden
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Example of a Relational Database
The Relational Model
Primary key: unique key key:
Uniquely identifies record Required in table
Foreign key: shared field key:
Links tables
Join: Composite of Tables
Creates table relationships among tables
One-toOne-to-many relationship: one item in table relationship: linked to many items in other table Many-toMany-to-many relationship: many items in table relationship: linked to many items of other table
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Data Modeling
EntityEntity-Relationship (ER) Diagram
Boxes identify entities Lines indicate relationship Li i di t l ti hi Crossbars indicate mandatory fields Circles indicate optional Crows feet identify "many" many"
Data Modeling (continued)
Entity
Relationship
One
Mandatory Many
Optional
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Transactional Databases versus Data Warehouses
Transactional database is typically not suitable for business analysis
Current data is dynamic Often historical information is not available
Data warehouse
Static S i set of historical information f hi i li f i Optimized for decision making May integrate several transactional databases into a single (consistent) database
Definitions
Schema
The structure of the database being designed
Names and types of fields in different records
Metadata
"data about the data"
Source of data (including contact info) ( g ) Tables with related data Field and index information Programs and processes that use the data Population rules
What is inserted, or updated, or how often
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Search Engines
CrawlerCrawler-based search engines (e.g., Google) `crawl' or crawl `spider' the web, then people search the database of what they have found. Most search engines and databases use Boolean Operators to create search statements, (desktop or laptop) and (Linux not Windows). Be B aware! S ! Some now charge f hi h page placement h for higher l t
Boolean Operators
AND (all) crime and punishment OR (either) crime or punishment NOT (without) crime not punishment
Google retrieved 5,670,000 web pages 81,400,000 web pages 71,800,000 web pages
Which Boolean operator extends the search? http://www.opiskelijakirjasto.lib.helsinki.fi/koulutus/libtut/4searching_20.html
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Boolean Operator AND
AND finds records
containing all terms crime punishment crime and punishment (search statement)
"and" operator gives better precision
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Boolean Operator - OR
OR finds records
containing either term crime
punishment crime or punishment (search statement)
Use this operator to include synonyms.
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Boolean Operator (NOT)
NOT finds records
that appear in the 1st result set but not set, in the second.
crime
punishment
(second result set)
crime not punishment (search statement)
Web pages with the word crime are in red. Only what is in red will appear in your results.
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What Search Engines Don't Search
`Bots (robots) only crawl the visible web which is only about 20% of everything that is on the Internet. They don't look at the "Deep Web", or "The Invisible Web."
What is the Invisible Web or Deep Web?
Commercial databases that charge a fee (e g library research Commercial fee, (e.g., databases of periodical articles). Sites that require membership or a login. Non-HTML pages (Word or Excel files), scripts, or dynamic pages.
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New Generation of Search Engine: *www.groxis.com Grokker *www.groxis.com
(sample search is Barcelona)
Grokker is a meta
searcher & browser produced by Groxis. results into categories.
Cl ifi Classifies Visualizes results. 25
VLOOKUP
1.
2.
Searches for a value in the leftmost column of a table bl Returns a value in the same row from a column you specify in the table The V in VLOOKUP stands for "Vertical." VLOOKUP(lookup_value,table_array,col_i ndex_num,range_lookup)
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E-Commerce Business Models
Nine Major Categories
Brokerage B k Advertising Infomediary Merchant Manufacturer (Direct Sales) Affiliate Community Subscription Utility
Source: Business Models on the Web by Mike Rappa
Brokerage Business Model
Brokers are market-makers: they bring buyers and sellers markettogether and facilitate transactions in business-to-business (B2B), business-tobusiness-tobusiness-to-consumer (B2C) or consumer-to-consumer (C2C) b i (B2C), consumer-tomarkets. Usually a broker charges a fee or commission for each transaction it enables. Some examples of a Brokerage Model are:
Marketplace Exchange (Orbitz.com) Demand Collection System (Priceline.com) Auction Broker (eBay.com) A ti B k ( B ) Transaction Broker (PayPal.com)
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Advertising Business Model
The web advertising model is an extension of the traditional media broadcast model. The broadcaster, in this case, a web site, provides content ( id (usually, but not necessarily, for free) and ll b il f f ) d services (like email, IM, blogs) mixed with advertising messages in the form of banner ads. Some examples of an Advertising Model are:
Portal (Yahoo.com) Classifieds (Monster.com) Content-t Content C t t-targeted and Query-b d P id Placement Advertising t d d Query-based Paid Pl Q t Ad ti i (Google.com)
Infomediary Business Model
F s Firms act as infomediaries (information intermediaries) o ed a es ( o at o te ed a es) helping buyers and/or sellers understand a given market. Independently collected data about producers and their products are useful to consumers when considering a purchase. Some examples of an Informediary Model are: p y
Advertising Networks (DoubleClick.com) Audience Measurement Services (Neilsens Ratings) Metamediary (Edmunds.com)
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Merchant Business Model
Wholesalers and retailers of goods and services. Sales may be made based on list prices or through auction. Some examples of a Merchant Model are:
Virtual Merchant (Amazon.com) Catalog Merchant (LandsEnd.com) Click and Mortar (BarnesandNoble.com) Bit Merchant (iTunes.com)
Manufacturer (Direct Sales) Business Model
The manufacturer or "direct model", it is predicated on the , p power of the web to allow a manufacturer (i.e., a company that creates a product or service) to reach buyers directly and thereby compress the distribution channel. The manufacturer model can be based on efficiency, improved customer service, and a better understanding of customer preferences. Some examples of a Merchant M d l are: S l f M h Model
Purchase / Direct Sale (Dell.com) Lease / License (Microsoft OfficeLive, SalesForce.com)
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Affliliate Business Model
The affiliate model, provides purchase opportunities wherever people may be surfing. It does this by offering financial incentives (in the form of a percentage of revenue) to affiliated partner sites. The affiliates provide purchase-point click-through purchaseclickto the merchant. It is a pay-for-performance model -- if an pay-foraffiliate does not generate sales, it represents no cost to the merchant. Some examples of an Affiliate Model are: S l f Affili M d l Banner exchange Pay-perPay-per-click Revenue sharing programs
Community Business Model
T e v ab ty o t e co The viability of the community model is based on user u ty ode s o use loyalty. Users have a high investment in both time and emotion. Revenue can be based on the sale of ancillary products and services or voluntary contributions; or revenue may be tied to contextual advertising and subscriptions for premium services. Some examples of a Community Model are:
Open Source Development (RedHat.com) Open Content (Wilipedia.com) Social Networking Services (MySpace.com)
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Subscription Business Model
Use s a e c a ged pe od c da y, o t y o a ua Users are charged a periodic -- daily, monthly or annual -- fee to subscribe to a service. It is not uncommon for sites to combine free content with "premium" (i.e., subscriber- membersubscriber- or member-only) content. Subscription fees are incurred irrespective of actual usage rates. Some examples of a Subscription Model are: p p
Content Services (NetFlix.com) Person-toPerson-to-Person Networking (Classmates.com) Trust/Privacy Services (Truste.com)
Utility Business Model
The utility or "on-demand" model is based on metering usage, y "ong g , or a "pay as you go" approach. Unlike subscriber services, metered services are based on actual usage rates. Traditionally, metering has been used for essential services (e.g., electricity water, long-distance telephone services). Internet service longproviders (ISPs) in some parts of the world operate as utilities, charging customers for connection minutes, as opposed to the subscriber model common in the U.S. Some examples of a Utility Model are: Metered Usage (IBM's On-Demand Hosting) OnMetered Subscriptions (Slashdot.com)
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E-commerce Business Models
Consumer-toConsumer-to-Consumer E-commerce (C2C) EOnline exchange or trade of goods, services, or information between individual consumers. Often involves the use of an intermediary such as eBay. Challenge is the actual exchange of payment and the transfer of goods. Business-toBusiness-to-Consumer E-commerce (B2C) EB2C: transactions between businesses and individual consumers B2C is when a business uses the Internet to supply consumers with services, information services information, and or products. products Business-toBusiness-to-Business (B2B) Business uses the Internet to provide another business with the services, supplies, and/or materials, it needs to conduct its operations. Example is Sesami.net an intermediary Much of revenues of EC are tied to B2B transactions
MISA Meeting
Tuesday @ 6:00PM in The ECOM Lab
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