CHAP 1

1.2 Computer-based information systems

-information system: data and knowledge
-data: numbers and characters
Information: data that have been organized so that they have meaning and value to the recipient.
Knowledge: consist of data and/or information that have been organized and processed to convey
understanding, experience, accumulated learning, and expertise as they apply to a current business
problem.
- computer-based information system CBIS: an IS uses computer technology to perform some or all of its
intended tasks
o hardware: devices such as the processor, monitor, keyboard and printer. Together these
devices accept, process and display data and information
o software: program or collection of programs that enable th hardware to process data
o database: collection of related files or tables containing data.
o Network: connecting system (wireless or wireless) that permits different computers to
share resources.
o Procedure: instruction for combining the preceding components to process information
and generate the desired output.
o People: use the hardware and software, interface with it, or use its output.

-IT INFRASTRUCTURE: IT components plus IT services. IT services+ IT Personnel + IT Components

IT components: hardware, software, databases, and network
IT service: IT personnel use ITT components to perform these IT service: develop IS, oversee security and
risk, and manage data.
-Emergence of Cognitive Computing: IBM Watson
Is an application of advanced natural language processing, information retrieval, knowledge
representation and reasoning, and machine learning technologies to the field of open-domain (general)
question answering.
4 main capabilities: the ability to understand human language, with all its nuance and ambiguity, to
learn and absorb information, to formulate hypotheses, to understand the contact of a question.
CHAPTER 2

Business Process is an ongoing collection of related activities that create a product or a service of value
to the organization, its business partners, and its customers. The process involves three fundamental
elements:
- input: materials, services, and information that flow through and are transformed as a result of process
activities
-resource: people and equipment that perform process activities
-output: the product or the service created by the process
Ex: accounting business processes, finance business processes, marketing, productin/operations, human
resource, MIS
PORTER’S COMPETITIVE FORCES MODEL
1. Threat of Entry of New Competitors: Entry barrier – A feature of a product or service that
customers have come to expect and entering competitors must offer the same for survival.
1. The threat that new competitors will enter your market is high when entry is easy and
low when there are significant barriers to entry.
2. Low when there are significant (High) Barriers to enter the Market.
2. Bargaining Power of Suppliers:
1. Supplier power is HIGH when buyers have few choices from whom to buy. LOW when
buyers have many choices.

2. Therefore, organizations would rather have more potential suppliers so that they will be
in a stronger position to negotiate price, quality, and delivery terms

3. Bargaining Power of Customers/Buyers:

1. Buyer power is HIGH when buyers have many choices from whom to buy. LOW when
buyers have few choices.

2. For example, in the past, there were few locations where students could purchase
textbooks (typically, one or two campus bookstores). In this situation, students had low
 buyer power. Today, the web provides students with access to a multitude of potential
suppliers as well as detailed information about textbooks. As a result, student buyer
power has increased dramatically.

3.
4. Threat of Substitute Products or Services: High when there are many alternatives to a product or
service and low when there are few alternatives

1. Ex The threat of substitute products or services: Any industry which is primarily based
on digitized information is at risk, and must take the threat of Internet delivered
products and services seriously.

2.

5. Rivalry Among Existing Firms within the Industry: High when competition is fierce in a market
and low when competitors are more complacent
1. Product differentiation – Occurs when a company develops unique differences in its
products or services with the intent to influence demand
2. Example: The Internet makes competition more intense.

1. Keeping anything secret is impossible once it is available on the Internet.

2. Competitors can see the systems and match their features to remain
competitive.

COMPETITIVE STRATEGY: A statement identifying a business’s approach to compete, it’s goals, and the
plans and policies required to attain those goals.

• Cost Leadership: I can sell at a lower price than you can

• Differentiation: I am better because I am different
• Innovation: I’m doing something new and you can’t catch up
• Operational Effectiveness: I can do the same thing more efficiently than you can
• Customer-Orientation: I treat my customers better than you do.
PORTER’S VALUE CHAIN MODEL:

• Value Chain: A sequence of activities through which the organization’s inputs are transformed
into valuable outputs.
includes the suppliers that provide the inputs necessary to the firm along with their value
chains. After the firm creates products, these products pass through the value chains of
distributors (which also have their own value chains), all the way to the customers. All parts of
these chains are included in the value system.
Two Categories of Organization Activities in the Value Chain:
 • Primary Activities: relate to the production and distribution of the firm’s products and services.
These activities create value for which customers are willing to pay. Typically perform five
primary activities

• Inbound logistics (inputs): the incoming materials are process (in receiving, storage, and
so on)

• Operations (manufacturing and testing): turning raw materials into products

• Outbound logistics (storage and distribution): prepare for delivery (packaging, storing,
and shipping)

• Marketing and sales

• services

• Support activities: contribute to the firm’s competitive advantage by supporting the primary
activities, but do not add value directly to the firm’s products or services.

• The firm’s infrastructure (accounting, finance, management)

• Human resources management

• Product and technology development

• procurement

• Support Activities: contribute to the firm’s competitive advantage by supporting the primary
activities, but do not add value directly to the firm’s products or services.+

1. Firm’s Infrastructure (accounting, finance, management)

2. Human Resources Management
3. Product & Technology Development (R&D)
4. Procurement

CHAPTER 5
1. How are the relationship
2. Database terminology
a. Database: collection of interrelated 2 dimensions
b. Tables: consist row and column
c. Records: (within row) each row represent a record
d. Fields: (lolumn) represent an attribute (chracteristics) of that record
e. Bytes:
3. Database management system - What is it, and what does it do.
 4. How can you query a Database? Structure Query Language , SQL to process BIG DATA. Can
manipulate structured and unstructured data and inconsistent or missing data.
5. What are the components of a Database Management System?
6. Describing your tables – Metadata (Data Dictionary)
7. Big data- What is it? What’s it’s characteristics? How do we work with it?
- Big data is a collection of data so large and cmplex that it is difficult to manage using traditional
data base management sytems
- It chracteristics: volume. Velocity. Variety.
- Included structured, unstructured. Semistructure data, do not fit neatly into traditional,
structured, relational databses
8. Data Warehouses – what is it, how it used and what is it’s characteristics, for example : Multi-
dimensional structure, historical data, etc.
-data warehouses: repository of historical data that are organized b subject to support decision
markers in the organization.
-data mart is a lower cost versio of data warehouses
Basic characteristics od data warehouse: organized by business dimension or subject. Use online
analytical processing. Intergrated. Time variant. Nonvolatile. Multidimensional.

9. Knowledge Management, Knowledge Management systems -what is it? How can we use it.
Knowledge management (KM) is a process that helps organizations manipulate
important knowledge that comprises part of the organization's memory, usually in an
unstructured format. For an organization to be successful, knowledge, as a form of
capital, must exist in a format that can be exchanged among persons. It must also be
able to grow.

a. Explicit knowledge: deals with more objective, rational, technical knowledge ex in an

organization, explicit knowledge consist of the policies, procedural guides, reports,
products, strategies, goals, core competencies, and IT infrastructure of the enterprise.
b. Tacit knowledge is the cumulative store of subjective or experitial learning. In an
organization, tacit knowledge consists of an organization’s experience, insights,
expertise, know-how, trade secrets, skills sets, understanding, learning.

CHAPTER 7
• Electronic Commerce
• The process of buying, selling, transferring, or exchanging products, services, or
information via computer networks, including the Internet.
• Electronic Business (e-business)
• A much broader concept than e-commerce
• Servicing customers, collaborating with business partners, and performing electronic
transactions within an organization
-B2C:
-B2B: comprises the vast majority of EC volume
-C2C: the major strategies for conducting C2C on the internet are auctions and classified ads.
-B2E: business-to-employee. Ex companies allow employees to manager their benefits and to take
training classes electronically. Employees can also buy discounted insurance, travel package, and tickets
to events on the corporate intranet.
-G2C: GOVERNMENT-TO-citizen:
-G2B: government-to-business: is much like B2B EC,
- E-COMMERCE Business Models
-online direct marketing
-electronic tendering system: business request quotes from suppliers. Uses B2B with a reverse
auction mechanism
-name-your-own-price: customer decide how much they are willing to pay. An intermediary try to match
a provider.
-find the best price: customers specify a need an intermediary compares provider and shows the lowest
price. Customers must accept the offer in a short time, or they may lose the deal
-affiliate marketing: vendors ask partners to place logos Or banners on partner’s site. If customers close
on a logo, go to a vendor’s site, and make a purchase, then the vendor pay commission to the partners.
-viral marketing: recipient of your marketing notices send conformation about your product to their
friends.
Group purchasing (e-coops): companies run aunction of various type on the internet. Very popular in
C2C, but gaining ground in other types of EC as well.
Product customization
Electronic marketplace and exchanges
Bartering online: intermediary administer online exchange of surplus products or company receives
“points” for its contribution, which it can use to purchase other need items.
Deep discounter
Membership.
-Mobile commerce: (m-commerce): conducted entirely in a wireless environment. An example is using
cellphone to shop over the internet
Social commerce: to the delivery of electronic commerce activities and transaction through social
computing
Conversational commerce: called chat commerce: electronic commerce using messaging and chat apps
to offer a daily choice, often personalized, of a meal, product, or service.
MAJOR E-COMMERCE MECHANISMS
-electronic catalogs
Electronic auctions
E-storefronts: website that represents a single store
E-malls: cybermall or e-mall, collection of individual shop consolidate under on internet address.
E-marketplaces
-Auctions: competitive buying and selling in process
-forward auctions: sell solicit bids from many potential buyers.
-reverse auctions: on buyer usually an organization, want to purchase a product or a service, the
buyer posts a request for a quotation RFQ on its website or on a third-party site.
-procurement: is overarching function that describes the activities and processes to acquire goods and
services.
-BRICK AND MORTAR: organizations in which the product, the process, and the delivery agent are all
physical.
CLICK-AND-MORTAR: do business in both physical and digital dimensions.