ISDS test 1 study guide - Ch 1 Introduction to Business...

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Ch. 1: Introduction to Business Intelligence 1.1Changing Business Environments and Computerized Decision Support The Business Pressures—Responses—Support Model The Business Pressures—Responses—Support Model has three components o Business pressures that result from today’s business climate o Responses (action taken) by companies to counter the pressures (or to take advantage of the opportunities available in the environment) o Computerized support that facilitates the monitoring of the environment and enhances the response actions taken by organizations The Business Environment The environments in which organizations operate today is becoming more and more complex Complexity creates opportunities on the one hand and problems on the other Business environment factors can be divided into four major categories: markets, consumer demands, technology, and societal Markets Strong competition Expanding global markets Booming electronic markets on the Internet Innovative marketing methods Opportunities for outsourcing with information technology support Need for real-time, on-demand transactions Consumer demands Desire for customization Desire for quality, diversity of products, and speed of delivery Customers getting powerful and less loyal
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Technology More innovations, new products, and new services Increasing obsolescence rate Increasing information overload Social networking, Web 2.0 and beyond Societal Growing government regulations and deregulation Workforce more diversified, older, and composed of more women Prime concerns of homeland security and terrorist attacks Necessity of Sarbanes-Oxley Act and other reporting-related legislation Increasing social responsibility of companies Greater emphasis on sustainability Organizational Responses: Be Reactive, Anticipative, Adaptive, and Proactive Both private and public organizations are aware of today’s business environment and pressures Managers may take other actions, including the following: o Employ strategic planning o Use new and innovative business models o Restructure business processes o Participate in business alliances o Improve corporate information systems o Improve partnership relationships o Encourage innovation and creativity o Improve customer service and relationships o Move to electronic commerce (e-commerce) o Move to make-to-order production and on-demand manufacturing and services o Use new IT to improve communication, data access (discovery of information), and collaboration o Respond quickly to competitors’ actions (e.g. in pricing, promotions, new products and services)
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o Automate many tasks of white-collar employees o Automate certain decision processes, especially those dealing with customers o Improve decision making by employing analytics Closing the Strategy Gap One of the major objectives of computerized decision support is to facilitate close the
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