CHAPTER 6 ( VALUING ORGANIZATIONAL INFORMATION )

6.1  Describe the broad levels, formats,               and granularities of information

6.2   Differentiate between transactional   and analytical information

6.3  List, describe, and provide an example   of each of the five characteristics of   high quality information

6.4  Assess the impact of low quality   information on an organization and   the   benefits of high quality information on an   organization

ORGANIZATIONAL INFORMATION

v Employees must be able to obtain and analyze the Information is everywhere in an organization

v many different levels, formats, and granularities of organizational information to make decisions

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

The Value of Timely Information 

v Timeliness is an aspect of information that depends on the situation

§ Real-time information – immediate, up-to-date information

§ Real-time system – provides real-time information in response to query requests

The Value of Quality Information

v  Business decisions are only as good as the quality of the information used to make the decisions

v  You never want to find yourself using technology to help you make a bad decision faster

»Characteristics of high-quality information include:

»Accuracy

»Completeness

»Consistency

»Uniqueness

»Timeliness

Understanding the Costs of
Poor Information

v  The four primary sources of low quality information include:

1.Online customers intentionally enter inaccurate information to protect their privacy

2.Information from different systems have different entry standards and formats

3.Call center operators enter abbreviated or erroneous information by accident or to save time

4.Third party and external information contains inconsistencies, inaccuracies, and errors

»Potential business effects resulting from low quality information include:

»Inability to accurately track customers

»Difficulty identifying valuable customers

»Inability to identify selling opportunities

»Marketing to none Existent customers

»Difficulty tracking revenue due to inaccurate invoices

»Inability to build strong customer relationships

Understanding the Benefits of
Good Information

v High quality information can significantly improve the chances of making a good decision

v Good decisions can directly impact an organization's bottom line

 

CHAPTER 4 ( Measuring the Success of Strategic Initiatives )

4.1  Compare efficiency IT metrics and effectiveness IT metrics

4.2  List and describe five common types of efficiency IT metrics

4.3  List and describe four types of effectiveness IT metrics

4.4  Explain customer metrics and their importance to an

     organization

Efficiency and Effectiveness

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

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

Efficiency IT Metrics

v Efficiency IT metrics focus on technology and include:

§Throughput

§Transaction speed

§System availability

§Information accuracy

§Web traffic

§Response time

Effectiveness IT Metrics

v Effectiveness IT metrics focus on an organization’s goals, 

  strategies, and objectives and include:

§Usability

§Customer satisfaction

§Conversion rates

§Financial

WEB SITE METRICS

v Web site metrics include:

§Abandoned registrations

§Abandoned shopping cards

§Click-through

§Conversion rate

§Cost-per-thousand

§Page exposures

§Total hits

§Unique visitors

CHAPTER 5 ( Organizational Structures that Support Strategic Initiatives )

5.1  Compare the responsibilities of a chief information officer (CIO), chief technology officer (CTO), chief privacy officer (CPO), chief security officer (CSO), and chief knowledge office (CKO)

5.2  Explain the gap between IT people and business people and the primary reason this gap exists

5.3  Define the relationship between information security and ethics

Chief Information Officer (CIO) – oversees all uses of IT and ensures the strategic alignment of IT with business goals and objectives

v Broad CIO functions include:

Manager      – ensuring the delivery of all IT projects, on time and within budget

Leader       – ensuring the strategic vision of IT is in line with the strategic vision of the organization

Communicator – building and maintaining strong executive relationships

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

Chief Knowledge Office (CKO) - responsible for collecting, maintaining, and distributing the organization’s knowledge

The Gap Between Business Personnel and IT Personnel 

v  Business personnel possess expertise in functional areas such as marketing, accounting, and sales 

v  IT personnel have the technological expertise 

v  This typically causes a communications gap between the business personnel and IT personnel

Organizational Fundamentals – Ethics and Security

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

v In recent years, such events as the Enron and Martha Stewart, along with 9/11 have shed new light on the meaning of ethics and security

CHAPTER 3 (Strategic Initiatives for Implementing Competitive Advantages )

Helloooooo and assalamualaikum! 

  I'm here to share with you all about the chapter 3.

The learning outcomes about this topic are:

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

3.2-Explain customer relationship management systems and how they can help organizations understand their customers.

3.3-Summarize the importance of enterprise resource planning systems.

3.4-Identify how an organization can use business process reengineering to improve its business

ANSWER FOR TUTORIAL QUESTIONS FOR CHAPTER 2 (MGT300)

True/False:

1. A competitive advantage is typically temporary, unless its a first-mover advantage.                        (FALSE)

2. An entry barrier is typically used to influence the threat of new entrants.                                          (TRUE)

3. Switching cost are typically used to influence the threat of substitute products or services.          (TRUE)

4. The Five Forces Model helps to determine the relative attractiveness of an industry.                      (FALSE)

5. Organizations can add value by offering lower prices or by competing in a distinctive way.            (TRUE)

6. An entry barrier is typically used to influence the rivalry among existing competitors.                    (FALSE)

7. Competitive advantage occurs when an organization can significantly impact its market share by
    being first to market with a an advantage.                                                                                                  (FALSE)

8. Buyer power, supplier power, threat of products or services, threat of new entrants and rivalry   
    among existing competitors are all included in Porter's Five Forces Model.                                          (TRUE)

9. Switching costs are typically used to influence the threat of substitute products or services.           (TRUE)

Long Essay:

1. Describe three (3) Porter Generic Strategies. Support your answer with examples.                (12 marks)

       The are three Porter Generic Strategies is broad cost leadership,broad differentiation and focused strategy. Firstly is broad cost leadership. Broad cost leadership is broad strategies reach a large market segmentation.The firm can compete on the price with every other industries and earn higher units profit.Cost reduction provides the focus of the organisation's strategy.For example Wal-Mart.Walt-malt is to keep retail price low and the company has been very successful at this.Secondly is broad differentiation.Broad differentiation is focused strategies target a niche market.Customers perceive the product to be different and better than that of rivals.Differentiation can be based on product image or durability,after-sales,quality,additional features.For example Mc Donald's.Mc Donald's strove to meet a customer wait time at no more than one minute in line and 30 second at the counteAnd the lastly is focused strategy. Focused strategy is concentrate on either cost leadership or differentiation.A firm using a focus strategy often enjoys a high degree of customer loyalty,and this entrenched loyalty discourages other firms from competing directly. For example, food and beverages(PEPSICO).

2. Porter's Five Forces Model is a one of common tools used in industry to analyze and develop
    competitive advantages. List and describe each of the five (5) forces in Porter's Five Forces
    Model.                                                                                                                                 (20 marks)

    Five(5) forces in Porter’s five forces:

          1) Threat of substitute products or service

    2) Buyer power

    3) Threat of new entrants

    4) Supplier power

    5) Rivalry among existing competitors

   

         There have five forces in Porter's model.Firstly, is threat of substitute products or services.

This is high when there are many alternatives to a product or service and low when there are few alternatives from which to choose.For example,if the price of coffee rises substantially,a Milo drinker is likely to switch over to a beverage like cocoa because the products are so similar.

            Secondly,is buyer power the high when buyers have many choices of whom to buy low when their choices are few.For example,cement industry.The number of players in this industry is relatively small so that the customers does not have a strong bargaining position.

           

            Thirdly is threat of new entrants there will become high when it is easy for new competitors to enter a market and low when there are significant entry barriers to entering a market.For example,barrier to entry is very large amount of capital to start a business in the industry especially oil and gas industry.

             Next is supplier power there will become high when buyers have few choices of whom to buy from and low when their choices are many.For example, lack of bargaining power of supplier is IKEA.

IKEA can easily switch supplier if his raise prices because there are many other supplier entering.

            Finally,rivalry among existing competitors.This is high when competition is fierce in a market and low when competition is more complacent.

3. Michael Porter's Five Forces Model is one of the tools used by the organization to analyze and
    develop competitive advantages. Explain how information technology can develop a competitive
    advantage for each force in Five Forces Model.                                                                                                                                                                                                              (20 marks)

    Information technology is permeating the value chain at every point, transforming the way value activities are performed and the nature of the linkages among them. it also is affecting competitive scope and reshaping the way products met buyer needs. These basic effects explain why information technology has required strategic significance and is different from the many other technologies business use.

     Every value activity has both a physical and an information-processing component. The physical component includes all the physical tasks required to perform the activity. The information-processing component encompasses the steps required to capture, manipulate, and channel the data necessary to perform the activity.

     Every value activity creates and uses information of some kind. logistics activity, for example, uses information like scheduling promises, transportation rates, and production planes to ensure timely and cost-effective delivery. A service activity uses information about service requests to schedule calls and order parts, and generates information on product failures that a company use to revise product designs and manufacturing methods.

     An activity's physical and information-processing components may be simple or quite complex. Different activities require a different mix of the two components. For instance, metal stamping uses more physical processing than information processing; processing of insurance of claims requires just the opposite balance.

     For most of industrial history, technological progress principally affected the physical component of what businesses do. During the Industrial Revolution, companies achieved competitive advantage by substituting machines for human labor. Information processing at the time was mostly the result of human effort.

    From the power of buyer, information technology can develop a competitive advantage based on loyalty program in travel industry. For example, rewards on free airlines tickets or hotel stay. If the supplier power wants the best practices of IT, they need to create competitive advantage. For example, B2B marketplace is private exchange allow a single buyer to posts it needs and then open the bidding to any supplier who would care to bid. Reverse auction is auction format in which increasingly lower bids. An organization would like to be on market in which there are few substitutes of their product or services. The best practices of IT is electronic product. It has same function but different brands.For best practices of IT such as Wal-mart and its suppliers using IT was enabled system for communication and track product at aisles by effective tagging system.

CHAPTER 2 ( IDENTIFYING COMPEPETIVE ADVANTAGES)

  Hi today,i want to share something about chapter two that is Identifying Competitive Advantage.

The learning outcomes about this topic are:

1-Explain why competitive advantages are typically temporary.2-List and explain each of the five forces in Porter's Five Forces Model.3-Compare Porter's three generic strategies.4-Describe the relationship between business processes and value chain.

CHAPTER 1 ( BUSINESS DRIVEN TECHNOLOGY )

Assalamualaikum wbt, 

              hi gaisss today I want to shared something what I was learned from this subject which is MGT300. My Madam PN Intan Liana was already explain to us about chapter one that is BUSINESS DRIVEN TECHNOLOGY.

The learning outcomes about this topic are:

1-compare management information system (MIS) and information technology(IT)

2-describe the relationships among people,information technology,and information

3-identify four different departments in a typical business and explain how technology helps them to work together

4-compare the four different types of organizational information cultures and decide which culture applies to your school