Lectures 1-4 Flashcards
(33 cards)
HIPPO
Highest Paid Persons Opinion
Data
Facts that can be recorded and accessed
Information
Data that is accessed for a certain reason or purpose
Information is the “data” we need
Information System
Computer-Based system that collects, stores, and uses data
3 Main Components of an Information System based on priority:
People
Data & Information
Information Technology
Hardware Resources
Computers, Servers, devices
Software Resources
System Software, Application Software
Networks
Wired & Wireless Networks
Application Software
Software to perform a specific task and improve business processes, examples include word processing, spreadsheets, database, videogames are a software
System Software
Enables application software to run properly between hardware. Think Windows 11, macOS, iOS.
Other system software includes anti-virus software
People Resources
IS Team(IT Pros) - Manage and maintain information systems, communicate with users
IT and business users are becoming less separated
Users(Business Users) - From sophisticated/knowledgeable to button presser
Information System Main Roles
Store data and facilitate business processes; Data Analysis. Not every information system is to generate profit
Competitive Advantage
An advantage that ranges from a feature, benefit, product, service or even customer perception that a company has over another. They are typically temporary as other companies will duplicate them.
First Mover Advantage
The first company to establish a certain competitive advantage
Not necessarily an advantage, can get overtaken
Think Netscape vs. Google
Usually creates improvements
Competitive Intelligence
The collection and analysis of information to monitor/anticipate competitors
Main point is to learn what is happening outside of the company
SWOT Analysis
Strength
Weakness
Opportunities
Threats
SWOT is used to analyze gathered information
Porter’s Five Forces
Existing Industry Rivalry; Threat of Substitutes, Threat of New Entrants, Power of Suppliers, Power of Buyers
Switching Cost
The cost for customers of using/switching to a different product(Think switching from AT&T to Xfinity) - Emotional Cost as well(Think not wanting to move on)
Entry Barrier
Cost for an entrant into a market; The cost that customers expect for a product or service.
Power of Buyers
Customers influence the prices
Buyer power is high when there are many alternatives
Buyer power is low when there are few alternatives
Examples: High Buyer power – Coffee shops, many options
Low Buyer Power – Cars in this market, Pharmaceutical
Power of Suppliers
Suppliers influence prices
Supplier power is high when buyer has few alternatives
Supplier power is low when buyer has many alternatives
Examples: High:
Low: Loyola Program
Threat of New Entrants
The threat new competitors pose to new companies or entrants
Threat of a new entrant is high when entry barriers are low
Threat of a new entrant is low when entry barriers are high
Examples: Personal Lawn care company vs professional company
Threat of Substitutes
Threat that an alternative product may offer similar benefits to the consumer the existing products do
Threat is high when there are alternatives
Threat is low when there are no alternatives
Examples: Zoom instead of physical traveling
Existing Industry Rivalry
Rivalry among already existing companies
Industry Rivalry is high when there are several competitors
Rivalry is low when there are little to no competitors
