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ERP (Enterprise software) can reach across functions/departments and flows based on
functions. *It creates transparency and coordinates across organization. It is more integrated
than each department having separate software (separate software = separate data)
Transactional Information systems feeds databases and captures all the data. It is the
workhorse of the pyramid.
- Supports the monitoring, collection, storage, and processing of data from the
organizations basic business transactions, each of which generates data. The TPS
collects data continuously, typically in real timethat is, as soon as the data are
generatedand it provides the input data for the corporate databases. The TPSs are
critical to the success of any enterprise because they support core operations.
Other Porter model: Value Chain
(Only need to know definition)
Value Chain A sequence of activities through which the organizations inputs, whatever they
are, are transformed into more valuable outputs, whatever they are.
Value chain model identifies points where an organization can use information technology to
achieve competitive advantage.
ROI (return on investment) measures effectiveness in generating profits with its available
assets. It is a percentage, the higher the percentage, the higher the return.
Disintermediation taking someone/something out of the middle, a tendency of computers.
Vertical Integration (Maybe question) High degree of vertical integration = a great deal of control
over the process. If a business is very horizontally integrated they have less control over their
supply chain.
Volatile memory - loses memory when disconnected from power. Non volatile does not.
** Moores law. How fast do capacities double? Every 18mos to 2 years. Impact increases in
hardware processing power while decreasing in size.
Disruptive technologies. Main attributes/characteristics:
- Starts not as effective as existing technology
- Improves exponentially and takes over the existing technology
Relationship between: Data, knowledge, wisdom, information Data is the raw numbers and
text, it has no meaning when it is considered in isolation. It is missing context to give it meaning,
with context it becomes information. Information is used to develop knowledge. Result of having
sufficient knowledge is wisdom.
True False
If IT can be the sole source of... ?enterprise software? ----> False
Enterprise System, more or less functional D
epartment Software ?
Enterprise System is more functional
Data Silo is a repository of fixed data that remains under the control of one department