Chapter 2 Flashcards
Org Strategy, Competitive Advantage, and Information systems (29 cards)
Competitive Advantage
Refers to any asset that provide an organization with an edge against its competitors in some measure such as cost, quality, or speed.
Business process
ongoing collection of related activities that create a product or a service of value to the organization, its business partners, and its customers.
What are the three fundamental elements to a business process?
Inputs - materials, services, information
Resources - people and equipment
Outputs - the product or a service created by the process
Procurement process
includes all of the tasks involved in acquiring needed materials externally from a vendor.
The fulfillment process
concerned with processing customer orders
what is the first step in the procurement process?
the warehouse documenting the need for procurement.
What are the three (3) areas that Information systems play a vital role in?
*Executing the process
*Capturing and storing process data
*Monitoring process performance
In the context of capturing and storing process data, how does an information system provide an advantage over manual systems?
Data only need to be entered once and can be easily accessed by others in the process.
Robotic process automation (RPA)
a system that enables enterprises to automate business processes and tasks that historically were carried out by employees.
How do RPA bots enhance the purchasing process in business?
RPA bots can compare prices from different vendors, as well as product attributes and quality.
What are some of the functions of an RPA bot
Customer Service
Invoice Processing
Sales Order
Payroll
Price comparisons
manage customer information
processing HR information
recruitment
What are some significant measures of competitive performance in an organization?
*Customer satisfaction
*Cost reduction
*cycle and fulfillment time reduction
*Quality
*Differentiation
*Productivity
Business process management (BPM)
a management system that includes methods and tools to support the design, analysis, implementation, management, and continuous optimization of core businesses process throughout the organization.
Business Activity Monitoring (BAM)
a real time approach for measuring and managing business processes.
What does DMAIC acronym stand for?
Define
Measure
Analysis
Improve
Control
Business process reengineering (BRP)
a strategy for making an organization’s business processes more productive and profitable.
The main difference between Business process improvement (BPI) and Business process reengineering (BPR) is that
BPI is less risky, less costly and more incremental than BPR
Business environment
the combination of social, legal, economic, physical, and political factors in which businesses conduct their operations.
what is the purpose of a strategic system in an organization’s response to business pressures?
Increase market share and profits.
Strategic information systems (SISs)
provide a competitive advantage by helping an organization to implements its strategic goals and improve its performance and productivity.
What are porter’s five forces
1) the threat of new entrants
2) Bargaining power of suppliers
3) The bargaining power of customers
4) threat of substitutes products or services
5) rivalry among existing firms in the industry 6)
what does the term “Switching costs” imply in the context of Porter’s competitive forces model?
The costs associated with changing suppliers or products
what are strategies for a competitive advantage?
1) cost leadership strategy
2) differentiation strategy
3) innovation strategy
4) operational effectiveness strategy
5) customer orientation strategy
What are six characteristics of excellent business-information technology alignment?
1) organizations view IT as an engine of innovation and continually transforms the business, often creating new revenue streams.
2) organizations view their internal and external customers and their customer service function as supremely important
3) organizations rotate business and IT professionals across departments and job functions
4) organizations provide overarching goals that are completely clear to each IT and business employee
5) organizations ensure that IT employees understand how the company makes (or loses) money
6) organizations create a vibrant and inclusive company culture
