Reminder that first two Connect homeworks (and each has 2 parts) are due NEXT week

• Signup instructions are above.
• signup online with credit card or bookstore code, or get a trial code.
• Remember – late points taken off automatically.

Amazon Systems (parts of an organization and systems behind those parts):

• Algorithm collects searching and buying data and turn it into
  useful information
• Customer information (names, addresses, emails, ce4dit cards..)
• Website itself needs to updated
• Acquisition systems to buy products from vendors & pay them (A/P – Accounts payable)
• Pricing system to maximize profit
• Human Resources systems – Pay employees, track hours, benefits (including health)
• Financial system to collect money from customers (A/R – Accounts receivable)
• Prime system with membership
• Customer service (returns, complaints)
• Marketing system – Both on their website and outside in real world
• Dealing with 3rd party sellers. And paying them.
• Accounting systems
• Finance systems for warehouses & other capital expenditures
• Legal systems

Company goals – to be better than everyone else. Actually to make $$$!!

Competitive Advantage:

• Mac better because simple, interconnected
• UMB – Price – Public, Diversity, BEST Boston, Commuter friendly, Location
• Amazon – 2 day or even same day delivery, reliable, easy to use,
  have literally everything, price, satifaction guarantee

Understand the industry that you’re in. Michael Porter “Five Forces Model” – Your book figure 1.23

Grocery Store Industry

• Rivalry – Stop & shop, Costco, BJ, Whole Foods, H-Mart, Trader Joes
• Suppliers – Trucking industry, Farmers, Weather, Political, Fishing
• Buyers – Variety in stores, Demand, Ethinc foods, Frequent shopper,
  organic foods, local foods
• New entrants – SOme industries more than others.
  • Barriers to entry; Taxi industry Medallion. Bars.
  • Monopoly – No competitors. Utilities, MLB,
• Substitutes – Restaurants (fast food, slow food), Blue apron,

Focus – One of : Cost, Differentiation (Quality) or Focus/Niche
Cost – Costco. Differentation – Whole Foods. Focus – H Mart.

SWOT – Strengths, Weakness, Opportunites, Threats. NOT COVERED.
Value Chain – Again, not covering.

Definitions,
IT, IS, MIS – Sort of interchangeably. Computers to help you get your business running or see definition from last time for book definition.

Data, Information and Knowledge (not defining Business Intelligence yet)

• Data – Raw facts stored in a database
• Information – Data processed into a meaningful form
• Knowledge – Taking information & making decisions.

Funny (?) video about 5 Forces

And then we looked at problems IT has caused through comics