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Chapter 2 : Information - Coggle Diagram
Chapter 2 : Information
Human obsession with prediction
Predictive model : bread and butter of analytics
Assumption : past behavior reasonably predicts the future
3.Good predictions need sound data and sound models(reasoning)
Sound data
Information : sorted, condensed and contextualized data
Insight : actionable information
IT unit's job : collecting and managing data
Data : raw facts
Sound models (reasoning)
Software apps transform data into information then inti business insight
Insight does not emerge spontaneously from data without efforts to transform it
Big data is more than just volume
Data points being replaced by ephemeral big data streams
Ephemeral : the data lasts for a very short time because its volume far exceeds our capacity to store it.
Streams : the data is continuously flowing as a series of data poitns.
most firms fail to capitalize on data in hand
Opportunities in big data :
Generating foresight cheap computing horsepower speeding transformation
Discovering what causes what - correlation in statistics, causation is the Holy Grail of prediction, can tweak things that cause sales, returns or customer loyalty
Trifecta is opening up opportunities exclusive to born-digital firms
Three lenses of IT strategy
Five forces model
how IT effect your industry
Fierceness of competition is driven by the bargaining power of customer and supplier, the threat of new entrants and the threat of substitutes offering that can meet customers' need
IT's impact :
a. Increases transparency
b. Erase geographical constraints
c. Blur industry boundaries
d. Enable legacy-free business models
e. Increase operational effectiveness
f. Enables unconventional competitive barriers.
Value chain
how it can alter, how your firm creates value vis-a-vis your archrivals
inbound logistics :arrow_right: operations :arrow_right: outbound logistics :arrow_right: marketing :arrow_right: after-sales service
Raw materials will be supplied by supplier to your firm for creating products then will be distributed to retailers, wholesalers and distribution channel for sales to customers
IT can alter value chain in one of two places :
content of individual steps
linkages
The competitive litmus test
whether a particular IT assets can create a sustainable competitive advantage
valuable but not rare
most IT infrastructure
many analytics initiatives
operational but not strategic
merely creates competitive parity
Valuable and rare
purchased apps can often be imitated
solution : creating new apps faster than imitated
but often financially exhausting and unsustainable