CHAPTER 4

•What is a metric?

–A metric is nothing more than a standard measure to assess performance in a particular area.

•Efficiency IT metrics focus on technology and include:

–Throughput
–Transaction speed
–System availability
–Information accuracy
–Web traffic
–Response time

•Effectiveness IT metrics focus on an organization’s goals, strategies, and objectives and include:

–Usability
–Customer satisfaction
–Conversion rates
–Financial

•Security is an issue for any organization offering products or services over the Internet

•It is inefficient for an organization to implement Internet security, since it slows down processing however, to be effective it must implement Internet security

–Secure Internet connections must offer encryption and Secure Sockets Layers (SSL denoted by the lock symbol in the lower right corner of a browser)

CHAPTER 3

STRATEGIC INITIATIVES 

• supply chain management (SCM)
• customer relationship management (CRM)
• business process re engineering (BPR)
• enterprise resource planning(ERP)

SCM

1. involve the management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability.
2. can enable organization :
   *decrease power of its buyer
   *increase its own supplier power
   *create entry barriers thereby decrease the threat of new entrants

CRM

1. involves managing all aspect of a customer relationship with an organization to increase customer loyalty and retention and an organization profitability.
2. Charles Schwab and kaiser Permante obtain a great success through CRM system.
3. can enable organization :
   *identify type of customer
   *design individual customer marketing campaigns
   *treat each customer as an individual

BPR

1. business process is a standardized set of activities that accomplish a specific task, such as processing a customer' s order.
2. the analysis of work flow within and between enterprise.
3. to make all business processes best-in-class.

ERP

1. integrate all departments and functions throughout an organization into a single IT system so that employees can make decisions by viewing enterprisewide information in all business operation.
2. keyword in ERP is "enterprise".
3. ERP system collect data from across an organization and correlates the data generating an enterprisewide view.   

CHAPTER 2

COMPETITIVE ADVANTAGE

• a product or service that an organization's customer place a greater value on than similar offerings from a competitor.

PORTER'S FIVE FORCES MODEL

1. buyer power
   high - when buyers have many choices of whom to buy
   low - when their choices are few
2. supplier power
   high - when buyers have few choices of whom to buy
   low - when their choices are many
3. threat of substitute products or services
   high - when there are many alternatives to a product or services
   low - when there are few alternatives from which to choose
4. threat of new entrants
   high - when it is easy for new competitors to enter a market
   low - -when there are significant entry barriers to entering a market
5. rivalry among existing companies 
   high - when competitors is fierce in a market
   low - when competition is more complacent 

THREE GENERICS STRATEGIES

• cost leadership
• differentiation
• focused strategy

CHAPTER 1

CHAPTER 1

INFORMATION TECHNOLOGY 

• A field that concerned with the use of technology in managing and processing system.
• It is important enabler of business success and innovation. 

MANAGEMENT INFORMATION SYSTEM

• general name for business and academic discipline covering the application of people, technologies and procedure to solve business problems.
• business function similar to accounting, finance, operation and human resource.

DATA

• raw facts that describe characteristic of event

INFORMATION

• data converted into a meaningful and useful context.

BUSINESS INTELLIGENCE

• applications and technologies that are used to support decision making effort.

IT RESOURCE

• people use
• information technology to work with
• information

IT CULTURES

• information-functional culture
• information-sharing culture
• information-inquiring culture
• information-discovery culture