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ITHardware, Software, Networks, DataISPeople, Processes5. Identify the 7 Major Reasons Firms Invest in Information SystemsReason1) Achieve operational excellence2) Develop new products and series3) Attain customer intimacy and service4) Improve decision making5) Promote competitive advantage6) Ensure long term survival7)6. What is data, information, and knowledge?Levels of Data QualityDescriptionExampleDatapricesManagement Info System- category of info sys that provides performance reports based on results from TPS such as product cost data, sales data, and expense data. Makes automatic decisionsLower to Middle Managers who make tactical and/or operational decisionsTransaction Processing System - collect, store, update and retrieve transaction data within org (payroll, customer sales, supplier payments)Non managerial employees who make operational decisionsHaving good equipment aids in keeping up with updated techniques and communications with othersHelp to have a competive advantage and make the proper decisions for the businesscharacteristics input that can be stored and used to generate information
InformationData that has been organized to provide value to organizationprice increases over time on a graphKnowledgethe practical application of informationknowing how to set the prices based on increases7. What are examples of how the following functional areas utilize Information Systems?DepartmentExample/Types of Systems they useHuman ResourcesRecruiting and training (fieldglass), benefits and regulations (livetotalhealth), employee records(workday)Production and OperationsProduct life cycle, manufacturing, inventory management, quality control, r&d (SAP)Accounting & FinanceAccounts Payable, accounts receivable, budgeting, payroll, GLs, cash flows (Quickbooks, SAP)Sales and MarketingSales analysis, set pricing, marketing mix, product promotions, customer profilingForcesDescriptionHow would one combat this force?Threat of New EntrantsHaving a patent for their productThreat of SubstitutesPower of CustomersPower of SuppliersCompetitive RivalryHave products that are proprietory to their business9. Network-based StrategiesStrategyDescriptionNetwork EconomicsThe cost of adding another busines participant to business venture is small, and the potential to gain is greatVirtual Company ModelNetworks of people and resources join together to provide a service or create a product without traditional storefrontBusiness Ecosystems10. Describe the systems and how they benefit businesses.8. Porter’s 5 ForcesAnother company can make the same product, existance of barriers to entry (patents, rights, etc)There are substitute products that use different technology to fill the same need. Someone makes the same product for cheaper or more efficientlyGet ahead of trends and make their product more efficient and cheper where possibleCustomers put the firm under pressure based on price, which also affects the customers sensitivity to price change