Business Technology & Information Systems Concepts
Artificial Intelligence (AI) Fundamentals
AI involves simulating human intelligence processes in machines, such as learning, reasoning, and self-correction. AI has various applications, including expert systems, speech recognition, and machine vision. There are two types of AI: Weak AI, designed for specific tasks (e.g., virtual personal assistants like Siri), and Strong AI, possessing human-level intelligence capable of solving unfamiliar problems (e.g., autonomous cars).
Business Intelligence (BI) Essentials
Business Intelligence (BI) is the process of transforming data into knowledge to optimize decision-making in business. BI uses organizational data to provide information and analysis to stakeholders, such as employees, customers, and suppliers, enabling them to make more effective decisions. BI groups, measures, and analyzes information to provide insights to end-users.
Dashboards and Key Performance Indicators
Dashboards are visual tools that track and display KPIs, metrics, and key data points to monitor the health of a business. They answer important business questions and provide quick analysis and informational awareness. Dashboards track operational and analytical data and are interactive, with data visualized as tables, charts, and gauges. KPIs (Key Performance Indicators) are measurable values that demonstrate a company’s effectiveness in achieving key business objectives, and organizations use them at multiple levels to track performance measures.
Key Business & Technology Concepts
Balance Scorecard
A strategic planning and management system that helps organizations communicate, align, prioritize, measure, and monitor progress towards strategic targets, based on a balance between leading and lagging indicators.
Key Performance Indicators (KPIs) & Strategy
Business metrics used to track and analyze different factors in order to achieve strategic goals.
Data Warehousing
A federated repository for all the data collected by an enterprise’s various operational systems, emphasizing the capture of data from diverse sources for access and analysis.
Data Mining
The process of sorting through large data sets to identify patterns and establish relationships to solve problems through data analysis, allowing enterprises to predict future trends.
Budgeting, Forecasting, and Planning
A three-step process for determining and detailing an organization’s long- and short-term financial goals, usually managed by an organization’s finance department.
Business Process Management Software (BPMS)
A software tool used to improve an organization’s business processes through their definition, automation, and analysis.
“What If” Scenarios
A business planning and modeling technique used to generate various projections for some outcome based on selectively changing inputs, allowing businesses to respond to alternative situations more quickly and effectively.
Blockchain Technology Explained
Blockchain is a decentralized, transparent, and immutable database technology used for more than just currency and transactions. It offers benefits like faster transactions, better security, transparency, and true traceability. The three pillars of blockchain technology are decentralization, transparency, and immutability.
Understanding Big Data
Big Data refers to the large volume of structured and unstructured data that inundates a business on a day-to-day basis. It can be analyzed for insights that lead to better decisions and strategic business moves. The three initial Vs of Big Data are volume, velocity, and variety, and new Vs include veracity, value, and variability. Big Data is managed through new tools, technologies, and methodologies to work with millions of records in a timely manner.
Digital Transformation Advantages
Digital Transformation is a process change driven by the rapid adoption of technology that offers numerous advantages, including:
- Digital presence
- New contact channels with customers
- Customer-centric focus
- Better and quicker decision-making
- Improved efficiency and productivity
- Encouragement of innovation
- Easier communication and teamwork
- Improved working conditions
Information Systems Roles & Management
Chief Technology Officer (CTO) vs. Chief Information Officer (CIO)
What is CTO: The technological strategy to improve the final product.
What is CIO: Focuses on the information system to improve efficiency, such as communication systems.
Technological Infrastructure & Business Applications
Technological: The sum of infrastructure and business applications.
- Infrastructure: Everything related to office equipment, such as computers.
- Business Application: All software used by the company to carry out its activities.
Organization of Information Systems
Information system organization includes:
- System Maintenance: Ensuring all systems remain useful.
- IT Projects: Applications used for strategic plans.
- Infrastructure: Communication systems.
- Security: Preventing external and internal attacks.
- Supplier Management & Budget: Processes related to the supplier life cycle, and the budget required for these processes and suppliers (e.g., Microsoft).
Outsourcing
External services hired by a company to carry out its business processes. Examples include Slack or Microsoft Office.
Pros of Outsourcing:
- Cost savings
- Reduced time
- More resources
- Better service
Cons of Outsourcing:
- Difficulty in achieving efficiency if processes are not standardized.