Sunday, 27 September 2015


-Internet is a powerfu channel that presents new opportunities for an organizational
: touch customers
: enrich products 
:services with information 
: reduce costs

The buyimh and selling of goods and services over the internet.

The conducting of business on the internet including , not only buying and selling, but also serving customers and collaborating with business partners

(E - business models)


-Business to business (b2b)
Electronic marketplaces : interactive business communities providing a central market where multiple buyers and sellers can engage in e-business activities.

-Business to consumer (b2c)
E-shop : a version of a retail store where customers can shop at any hour of the day without leaving their home or office.
E-mall : consits of a number of e-shops.

-Consumer to business (c2b) is an example of a c2b e- business model.
The demand for c2b e-business will increase over the next few years due to customer's desire for greater convenience and lower princless.

-Consumer to consumer (c2c)

(Online auctions)
Electronic : seller and buyer solicit consecutive bids from each other.
Forward : seller use as a selling channel to many buyers and the highest bid wins.
Reverse : buyers use to purchase a products or servise, selecting the seller with the lowest bid.

(Communities include)
Interest : people interact with each other on specific topics.
Relations : people come together to share certain life experiences.
Fantasy : people participate in imaginary environments.


1. Highly accessible
2. Decreased cost
3. Protecting consumers
4. Increasing liability

Web site that usea content from more than one source to create a completely new service.
- Application programming interface ( API)
-Mashup editor


ERP systems is a database, when a user enters or update information in one module, it is immediately and automatically updated throughout the entire system

-Integrating SCM, CRM, and ERP

SCM, CRM, and ERP are the backbone of e-business.
Integration of these application is the key tu success for many companies.
Integration allows the unlocking of information to make it available to any user, anywhere, anytime.

-Integration tools
Enterprise application integration (EAI) 

-Enterprise Resource Planning (ERP)
Modular and open 
Beyond the company


To provide better customer service 
To make call centers more efficient
To cross sell productsore effectibely
To help sales staff close deals faster
To discover new customers

-The evolution of CRM

Reporting technlogy - help organizations identify their customers across other application.

Analysis technology - help organization segment their customers into categories such as best and worst customers.

-Predicting technologies - help organizations make predictions regarding customer behavior.

Operational CRM - support traditional transactional processing for day-to-day front-office operations or systems that deal directly with the customers.

Analytical CRM - support back-office operations and strategic analysis and includes all systems that do not deal directly with customers.


The average company spends nearly half of every dollar that it earns on production.

-Basics of supply chain

- Factors driving ( SCM )

consumer behavior

The ability to view all areas up and down the supply chain .
Bullwhip effect-occurs when ditorted products demand information passes from one entity to the next throughout the supply chain.

-Consumer behavior
Companies can respond faster and more effectively to consumer demands through supply chain enhances.
Demand planning software - generates demand forecasts using statistical tools and forecasting techniques.

Supply chain planning (SCP) software
Supply chain execution (SCE) software

Serving the customer in the best, most efficient, and more effective.
Information is crucial to managers abilities.
Information flows are essential to strategic planning.


A simplified representation or abstraction of reality

-Transaction processing systems
transaction processing system
online transaction processing
online analytical pricessing 

-Decision support systems (DSS)
sensitivity analysis
what-if analysis
goal-seeking analysis

-Executive information system (EIS)

-Artificial intelligence (AI)
expert system
neural network
   *fuzzy logic
genetic algorithm
intelligent agent

-Data mining

(cluster analysis)
technique used to devide an information set into mutually exclusive group

(association detection)
market basket analysis - analyzes such items as web sites and checkout scannner information to detect customers buying behavior

(statistical analysis)
forecast - predictions made on the basis of time-series information
time-series informatiom - time stanped information colected at a particular frequency


-Data warehouse
A logical collection of information gathered from many different operational databases that support business analysis activities and decision making tasks
the primary purpose of a data warehouse is to aggeregate information throughout an organizational into a single repository for decision making purposes

- ETL (extraction, transformation, loading)
Process that extracts information from internal and external database, transform the information using a common set of entreprise definitions, and loads the information into a data warehouse

-Data mart
contains a subset of data warehouse information

-Multidimensional analysis 
cube - common term for the representation of multidimensional information
-Data mining
data mining - the process af analyzing data ti extract information not offered by the raw data alone 

-Business intelligence (BI)
informatiom that people use to support their decision making efforts

-Principle BI


               -Information is stored in databases
 Database is maintain information about various type of object, events, people, and places

-Database model

Hierarchical database :
 information is organized into a tree-like structure in such away that it cannot have too many relationships

Network database:
a flexible way of representing object and their relationships

Relational database model:
stores information in the form of logically related two-dimensional tables

a person, place, thing, transaction or event about which information is stored
characteristics or properties of any entity class

-Primary key
a field that uniquely identifies a given entity in a table
-Foreign key 
a primary key of one table taht appears an attribute in another table acts to provide a logical relationship among the two table

-Advantages relational database
:increased flexibility
Physical view
logical view

:increased scalability and performance

:reduced information redundancy

:increased information integrity
information integrity
integrity constraint

:increased information security
access level
access control

-Database management systems
software through which users and application programs interact with a database

-Data-driven web sites
an interactive web site kept constanly updated and relevant to the needs ot its customers through the use of a database

: development
:content management
:future expandabilit
:minimizing human error
:cutting production and update costs
:more efficient
:improved stability

-Inteligrating information among multiple databases

forward integration
backward integration

Saturday, 26 September 2015

           Valuing Organizational Information
Chapter 6

Organizational Information

Information is everywhere in an organization

Employees must be able to obtain and analyze the many different levels, formats, and granularities of organizational information to make decisions

Successfully collecting, compiling, sorting, and analyzing information can provide tremendous insight into how an organization is performing

Information level

:include individual, department, and enterprise

Information formats

:include document presentation, spreadsheet, and database

Information granularities

:include detail, summary, and aggregate

Transactional information 

encompasses all of the information contained within a single business process or unit of work, and its primary purpose is to support the performing of daily operational tasks

Analytical information 

encompasses all organizational information, and its primary purpose is to support the performing of managerial analysis tasks

Timely information

Information that depends on the situation
Real-time information is immediate, up-to-date information
Real-time system is provides real-time information in response to query requests

Quality information

Business decisions are only as good as the quality of the information used to make the decisions
You never want to find yourself using technology to help you make a bad decision faster

Characteristics of high quality information

Saturday, 19 September 2015


Chief Information Officer (CIO)
oversees all uses of IT and ensures the strategic alignmen

of IT with business goals and objectives

Chief Technology Officer (CTO)

responsible for ensuring the throughput, speed, accuracy, 

availability, and reliability of IT

Chief Security Officer (CSO)

responsible for ensuring the security of IT systems

Chief Privacy Officer (CPO)
responsible for ensuring the ethical and legal use of 

information (newest senior executive position in IT)

Chief Knowledge Office (CKO)
responsible for collecting, maintaining, and distributing 

the organization's knowledge

Ethics and Security

Ethics and security are two fundamental building blocks that organizations must base their businesses on to be successful 


the principles and standards that guide our behavior toward other people

Issues affected by technology advances

  • Intellectual property
  • Copyright
  • Fair use doctrine
  • Pirated software
  • Counterfeit software


Information security is the protection of information from accidental or intentional misuse by persons inside or outside an organization


Friday, 18 September 2015

Key performance indicator; 
measures that are tied to business drivers

Metrics are detailed measures that feed KPIs

Performance metrics fall into the nebulous area of business intelligence that is neither technology, nor business centered, but requires input from both IT and business professionals

Efficiency IT metric 
 measures the performance of the IT system itself including throughput, speed, and availability

Effectiveness IT metric 
 measures the impact IT has on business processes and activities including customer satisfaction, conversion rates, and sell-through increases

Regardless of what is measured, how it is measured, and whether it is for the sake of efficiency or effectiveness, there must be benchmarks – baseline values the system seeks to attain

A process of continuously measuring system results, comparing those results to optimal system performance (benchmark values), and identifying steps and procedures to improve system performance

is the amount of information that can travel through a system at any point

Transaction speed
the amount of time a system takes to perform a transaction 

System availability
the number of hours a system is available for users

Information accuracy 
the extent to which a system generates the correct results when executing the same transaction numerous times

Web traffic 
includes a host of benchmarks such as the number of page views, the number of unique visitors, and the average time spent viewing a web page

Response time 
the time it takes to respond to user interactions such as a mouse click

the ease with which people perform transactions 
and find information. A popular usability metric on the 
Internet is degrees of freedom, which measures the number 
of clicks required to find desired information

Customer satisfaction
 measured by such benchmarks as satisfaction surveys, percentage of existing customers retained, and increases in revenue dollars per customer

Conversion rates
the number of customers an organization touches for the first time and persuades to purchase its products or services. This is a popular metric for evaluating the effectiveness of banner, pop-up, and pop-under ads on the Internet.


such as return on investment, cost-benefit analysis, and 
break-even analysis 

Metrics for Strategic Initiatives

Web site metrics

Supply chain management (SCM) metrics

Customer relationship management (CRM) metrics

Business process reengineering (BPR) metrics

Enterprise resource planning (ERP) metrics

(Web site metrics include)

  • Abandoned registrations
  • Abandoned shopping cards
  • Click-through
  • Conversion rate
  • Cost-per-thousand
  • Page exposures
  • Total hits
  • Unique visitors

  • Back order
  • Customer order promised cycle time
  • Customer order actual cycle time
  • Inventory replenishment cycle time
  • Inventory turns (inventory turnover)

  • Sales metrics
  • Service metrics
  • Marketing metrics

Wednesday, 16 September 2015

Chapter 3 | Strategic Initiatives for Implementing Competitive Advantages

List and describe the four basic components of supply chain management.

  • Supply Chain Strategy: A plan to manage all the resources need it by customers to supply their own products and services.
  • Supply Chain Partners: The associates to the business, picked by the company to deliver their finish products and other tasks such as pricing, delivering, selling, and paying partnership.
  • Supply Chain Operation: The way and time of production activities are conducted, from the packing to the testing, from productivity and quality of such.
  • Supply Chain Logistics: The way the product is being deliver, the cars and carriers, invoicing the product and returns.


Customer relationship management systems and how they can help organizations understand their customers.

 It manages everything that involves the customer's relationship with the company. The way this is conducted determines the loyalty of a customer and the profits they will maintain with them. It allows the organization to observe the customers behavior when buying from it. 

Summarize the importance of enterprise resource planning systems.

The importance of enterprise resource planning is saving and keeping track of all the information use by a company to be share and to be available by any of the employees and departments in this company. None of this departments is allow to change the system they work with without letting the others now, this will breakdown the communication in the company. All this data is in one single IT system and is really helpful when employees want to make decisions while looking at their company information, anywhere at anytime.

Identify how an organization can use business process re engineering to improve its business.  

A business can use Business process re engineering to analyze and change the workflow within ad between companies. The purpose of Business Process Re engineering is to make all business processes the best one in it's class. Not only to make it a better business but to optimize it's productivity. 


Monday, 6 July 2015



·         A product or services that an organization’s customers place a greater value on than similar                  offerings from a competitor.

·         Unfortunately, CA is temporary because competitors keep duplicates the strategy.

·         Then, the company should start the new competitive advantage.


·         Michael porter’s Five Forces Model is useful tool to aid organization in challenging decision               whether to join a new industry or industry segment.


·         High- when buyers have many choices of whom to buy.

·         Low- when their choices are few.

·         To reduce buyer power (and create competitive advantage), an organization must make it more            attractive to buy from the company not from the competitors.

·         Best practices of IT-based- loyalty program in travel industry (e.g. rewards on free airline                   tickets or hotel stays)


·         High- when buyers have few choices of whom to buy from.

·         Low- when their choices are many. (Best practices of IT to create competitive advantage.)

·         Supplier power is the converse of buyer power.

          Suppliers > organization > customers


·         High- when there are many alternatives to a product or services.

·         Low- when there are few alternatives from which to choose.

·         Ideally, an organization would like to be on a market in which there are few substitute of their             product or services.



·         High- when it is easy for new competitors to enter a market.

·         Low- when there are significant entry barriers to entering a market.

·         Entry barriers is a product or service feature that customers have come to expect from                         organizations and must be offered by entering organization to compete.


·         High- when competition is fierce in a market.

·         Low- when competition is more complacent.


·         Cost leadership

-          Becoming a low-cost producer in the industry allows the company to lower prices to                            customers.

-          Competitors with higher cost cannot afford to compete with the low cost leader on price.

·         Differentiation

-          Create competitive advantage by distinguishing their products on one or more features                        important to their customers.

-          Unique features or benefits may justify price differences and/or stimulate demand.