BUS303 Study Guide

Unit 1: Information Technology and Competitive Advantage

1a. Explain the effective use of information technology in business organizations

1. Organizations invest billions in information technology for daily business operations. In Unit 1, you learned the difference between information technology and information systems and how businesses use technology to compete. Information systems help organizations create a strategic competitive advantage.

• Briefly list the four components of information systems and the role technology plays in business.
• Define Moore's Law and what it means to business information system managers.

2. Not all information systems are computerized. Many information systems are IT-enabled due to modern operations and effective management in organizations.

• What is an information system?
• How are information technology and information systems separate?
• How are people, processes, and structures of an information system dependent on each other?

3. Managers can predict the future using Moore's Law through slight calculations of cost.

• Explain what price elasticity is and what it means for consumers and organizations.
• How did the "fifth wave" affect Apple's iPod six years after its original release.

Read Achieving Efficiency and Effectiveness through Systems and Moore's Law and More: Fast, Cheap Computing and What It Means for the Manager.

1b. Summarize key concepts of an information systems strategy

The history of an organization is essential to its future. What leaders can achieve in the future depends on what they currently have to work with. Improving an organization's performance is not just something for top management to work with; it is everyone's job to influence the way any part of an enterprise function can make a difference.

• Understand how organization-wide challenges with long-term implications but short-term imperatives for action benefited companies like Alibaba.com.
• List some advantages and disadvantages of using the SWOT method to evaluate organizational strategy.
• Explain how the five forces (buyers, suppliers, rivals, new entrants, and substitutes) help companies sustain profitability over time.

Unit 2: ERP Systems, Business Processes, and IT

2a. Explain the concept of business processes

A business process is a series of tasks that are repeated to produce a measurable output.

2b. Explain the purpose of an enterprise resource planning (ERP) system in organizations

An ERP helps organizations eliminate duplication of efforts by streamlining business processes through modular interfaces. For example, as accounting, marketing, warehouse, sales, and other teams perform their function, an ERP system brings everything together for each department to operate through an IT platform, which eliminates redundancy.

2c. Give examples of how information systems support organizations in managing business processes

Information systems can automate business processes to communication media, which can facilitate new business processes.

2d. Explain the concept of business process reengineering and describe the role information technology plays in it

Process reengineering is part of business process management and has been adopted for organizational transformation in multiple industries.

Review Business Process Modeling and Process Management, Introduction to ERP Systems, More on ERP Systems, Business Process Management in Health Care: Current Challenges and Future Prospects, and Business Process Improvement: Creating Value from Asset Information Management.

Unit 2 Vocabulary

This vocabulary list includes terms that might help you answer some of the review items above and some terms you should be familiar with to be successful in completing the final exam for the course.

• Business process
• ERP system
• Return on Investment
• Process Modeling
• Process Management

Unit 3: Using Information for Decision Making

3a. Explain the concept of business intelligence

1. Business intelligence (BI) is a vague term that combines aspects of reporting, data exploration, ad hoc queries, and sophisticated data modeling and analysis.

2. Static reports, dynamic reports, and dating mining are the three types of business intelligence.

3b. Compare and contrast system design methodologies

1. Information systems (IS) affect most management functions and are essential to competitive advantage and survival in the "new global digital economy". Organizations are under pressure and need to adapt to changes and align themselves with newly introduced information systems.

2. Methodologies are developed and used in systems development. Each methodology differs in details and the expected work products.

3. Organizations use different methodologies depending on the need of the project.

3c. Analyze how data warehousing and data mining can be used as part of an organization's strategy

1. A data warehouse is a set of databases designed to support decision making in an organization. It is structured for fast online queries and exploration. Data warehouses may aggregate an enormous amount of data from many different operational systems.

Review Data Warehouses and Data Marts.

2. Data mining is the process of discovering new patterns from large data sets.

Review The Data Asset: Databases, Business Intelligence, and Competitive Advantage, Business Intelligence Analysis of App Sales Data, and Data Mining: A Simple Guide for Beginners.

Unit 3 Vocabulary

This vocabulary list includes terms that might help you answer some of the review items above and some terms you should be familiar with to be successful in completing the final exam for the course.

• Datamart
• Data mining
• Data warehouse
• Knowledge discovery in database
• Methodology
• Strategic Information Systems Planning (SISPM)
• Business Process Re-engineering (BPRM)
• System Development Methodologies (SDMs)
• Information Security Methodologies (ISM)
• Business Process Re-engineering
• Agile
• Waterfall
• Formalized methodologies
• Method engineering
• Transformational projects
• Methods
• Problem situation
• Problem-solving processing
• Hard methodologies
• Soft methodologies
• Ad-hoc methodologies

Unit 4: e-Commerce

4a. Explain the concept of e-commerce

E-commerce is the use of computer networks to improve organizational performance.

• Understand all aspects of e-commerce as an organization's electronic interactions with stakeholders.
• List and briefly define some of the activities involved with e-commerce beyond ordering goods from an online catalog.
• Understand how innovation and inefficiency risk affect products and services in e-commerce.

Read Electronic Commerce: An Introduction.

4b. Describe the technologies used in e-commerce, including hardware, software, and database systems

1. Internet technology, IT infrastructure, electronic publishing, e-commerce topologies, security, electronic funds, and secure electronic transactions are the technologies used in e-commerce.

• Internet technology such as data transport, routing, and addressability enable computers to communicate when using a common protocol or language.
• Understand data transport, routing, and addressability.
• E-commerce is built on multiple technologies that create a layered, integrated infrastructure that permits the development and deployment of e-commerce applications.
• Understand all layers of e-commerce infrastructure.

2. Internet, Intranet, and Extranet are the three types of communication networks used in e-commerce.

• The Internet is a global network of networks used to connect with any server in the system.
• The Intranet is a local network of networks within an organization that focuses on employee information and communication.
• The Extranet is a series of business partnership distribution channels that host the internal processes involved in e-commerce.

3. Security is an eternal concern for organizations as they face the dual problem of protecting stored data and transported messages.

• Data access control is the major method of controlling who has access to stored data.
• Firewalls provide a layer of defense between an organization's network and the Internet.
• Through encryption technologies, data can be protected and used to complement data access controls.
• Understand every security element used to protect data in organizations and how critical security is for e-commerce.

Read pages 21-38 of Electronic Commerce Technology.

4c. Analyze the competitive advantage of the types of hardware, software, and database systems as they relate to e-commerce

1. In Unit 1, you explored the ideas of Michael Porter and how organizations achieve competitive advantage. In this unit, you will understand how the creative use of information technology and communications technologies can help obtain a competitive advantage.

• Review Porter's Five Forces Model. Understand how each element contributes to competitive rivalry within an industry.
• Understand Porter's three generic strategies and how they contribute to businesses pursuing a competitive advantage.
• Porter's Value Chain uses a graph of the processes involved in most organizations to display ways to streamline costly activities and add value to activities through information systems.

2. Computer firms struggle to solve hardware and software problems for multiple customers. Some customers solve each other's problems while other problems can spiral out of control if not probably mitigated in time.

• Apple uses a listserv to network customers using similar products, which results in customers supporting each other to reduce the number of people Apple has to support.
• Software developers use their web sites as a venue for customers to voice complaints and offer suggestions about the product.
• List a few ways hardware and software connect customers to their favorite e-commerce sites for customer service.
• E-commerce databases contain the names, phone numbers, and addresses of customers who have either expressed interest in an organization's products and services or are existing customers.
• Once a customer or potential customer's information is captured, their data is a strategic asset that can be further examined to refine and retarget electronic marketing efforts.

Review Using Information Technology Competitively, Electronic Commerce: An Introduction, E-Commerce in China, Importance of e-commerce, and e-Commerce.

Unit 4 Vocabulary

This vocabulary list includes terms that might help you answer some of the review items above and some terms you should be familiar with to be successful in completing the final exam for the course.

• E-Commerce
• Data transport
• Routing
• Addressability
• Infrastructure
• National Information Infrastructure
• Message Distribution Infrastructure
• Electronic Publishing Infrastructure
• Business Services Infrastructure
• Electronic commerce applications
• Electronic publishing
• Internet
• Intranet
• Extranet
• Security
• Coding
• Encryption
• Electronic money
• Electronic funds transfer
• Digital cash
• Secure electronic transactions

Unit 5: Technology Trends

5a. Explain cloud computing, including server hosting

1. "Cloud computing" means performing computer tasks using services provided over the Internet. A cloud symbol was used to represent the Internet when IT professionals diagrammed computer systems. The terms "cloud" and "Internet" have become interchangeable and typically mean the same thing when technology firms reference using the "cloud" for computing.

• Cloud computing involves using cloud- or Internet-based applications you probably already use, such as Microsoft Office with Office 365 as the cloud-based suite of Office products.
• Cloud computing enables individuals and organizations to pay a cloud vendor a monthly service fee for services rather than paying for a yearly license, which is more expensive.
• Products such as Office 365 are categorized as software as a service (SaaS), allowing companies to access a large assortment of software packages without having to invest in hardware or install it on a local machine.
• Understand the difference between SaaS, infrastructure as a service (IaaS), and platform as a service (PaaS) groups.

Read Computer Networks and Cloud Computing.

2. Server hosting is the offsite or remote management of hardware resources. Think about server hosting as you do cloud computing but with hardware.

• Organizations can pay a monthly fee for server hosting services to establish a complete IT infrastructure without the cost of physical machines, maintenance, and updates.
• Server hosting enables organizations to lease server resources for on-premises use.
• Organizations may select server hosting to lease dedicated servers for a monthly fee through server hosts.

5b. Identify why an organization might want to use cloud computing

Cloud computing offers organizations a list of advantages and disadvantages.

• Organizations can reduce costs by paying a monthly fee for applications instead of more expensive license fees.
• Purchasing and installing software and data processing equipment is time-consuming versus cloud computing services that can get organizations up and running in a shorter time.
• Understand how cloud computing offers scalable solutions and mobilization to an entire workforce.

5c. Analyze how current trends in e-commerce technologies, including cloud computing, online transactions and user interface, influence an organization's competitive advantage

Current cloud computing trends include a public, private, and enterprise cloud, each with different levels of security and access to public and private information in the cloud.

• Public clouds are used for e-commerce sites such as Amazon, Azure, Microsoft, and any publicly accessible service or application. About 1/3 of the overall market is moving to the public cloud.
• Private clouds are hosted onsite at an organization for data center use. Systems of record such as core business assets such as financial applications and HR are hosted on private clouds.
• Enterprise clouds are used to run modern business applications for organizations off-premises.
• Understand the different uses for each cloud type and why organizations may choose to host certain information and applications in an onsite private cloud instead of a public cloud, and what key aspects organizations have on a public cloud.

Review The State of Cloud Today and Top 5 "Giants" of Cloud Computing.

Unit 5 Vocabulary

This vocabulary list includes terms that might help you answer some of the review items above and some terms you should be familiar with to be successful in completing the final exam for the course.

• Cloud computing
• Private cloud
• Public cloud
• Enterprise cloud
• Server hosting
• Software as a service (SaaS)
• Infrastructure as a service (IaaS)
• Platform as a service (PaaS)
• Client-server system

Unit 6: Creating a Technology Strategy

6a. Compare and contrast different theories of information systems strategies

1. There is no blueprint for creating a strategy. Strategic frameworks help managers describe the competitive environment an organization is facing. Managers must determine which information systems strategies will work best for their organization.

• Understand some of the aspects beyond recognizing opportunities and meeting demands, such as resource-based thinking.
• Strategies will not give an organization an advantage forever; thus, managers need to revisit or renew strategies to keep up with industry trends.
• Understand the role frameworks have in helping managers develop a competitive environment through strategies.

2. Developing a mobile strategy:

• Understand the steps of developing a mobile strategy.
• List some of the goals a team must meet when developing a mobile strategy.
• List and understand the phases in a mobile strategy project plan.
• What steps and processes might be involved in a logic workflow diagram?

3. Creating an effective mobile app strategy:

• What factors should a manager consider when choosing between a mobile website and a mobile app?
• Understand the differences between mobile apps and mobile websites.
• List the steps to creating an effective mobile app strategy.

6b. Explain the strategic planning process

Organizations develop plans and strategies that outline how they want to decide which products and services to develop, price, promote, and sell.

• Understand what a value proposition is.
• Explain how a mission statement helps a company with strategic planning.
• List how internal environments are analyzed.
• How does a SWOT analysis identify strengths and weaknesses in an organization?

6c. Create an information systems strategy

Hardware, software, competitive strategies, and cloud computing are tools to help develop an information systems strategy.

• When creating an IS strategy, you must be familiar with the organization the strategy will be for.
• List the required steps for developing an IS strategy.
• What tools and resources do you need to develop an IS strategy?

Review Introduction, Developing a Mobile Strategy, 3 Steps to Creating an Effective Mobile App Strategy, Developing a Mobile Strategy that Works, Develop Your Own Social Media Strategy, and Strategic Planning.

Unit 6 Vocabulary

This vocabulary list includes terms that might help you answer some of the review items above and some terms you should be familiar with to be successful in completing the final exam for the course.

• Information systems strategy
• SWOT analysis
• Strategic planning
• Mobile strategy
• Mobile app strategy
• Strategic framework
• Value Proposition
• Target markets
• Situation analysis
• Internal environment
• External environment
• Competitive environment
• Sustainable competitive advantage
• Operational effectiveness