DISS MIS201

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Description

1- Explain the role of MIS in customer relationship management (CRM).
Accurately respond to and plan for the specific needs of an MIS project.
2-Describe technologies that underlie pervasive computing, providing examples of how businesses can utilize each one.
Explain how the four major threats to wireless networks can damage a business.
3-Discuss the implications of laws governing the ethical uses of data, information, and knowledge in the context of selected business environments
Accurately respond to and plan for the specific needs of an MIS project
4-Describe each phase of the business analytics process.
Describe each of the various analytics tools and examples of their uses.
Provide a definition and a use case example for descriptive analytics, predictive analytics, and prescriptive analytics.
5- Upon successful completion of this module, the student will be able to:
Explain the attributes of data, information, and knowledge.CHAPTE
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Introduction to Information
Systems
1
1. Why Should I Study Information
Systems?
2. Overview of Computer-Based Information
Systems
3. How Does IT Impact Organizations?
4. Importance of Information Systems to
Society
1. Identify the reasons why being an informed user
of information systems is important in today’s
world.
2. Describe the various types of computer-based
information systems in an organization.
3. Discuss ways in which information technology
can affect managers and non-managerial
workers.
4. Identify positive and negative societal effects of
the increased use of information technology.
1.1 Why Should I Study
Information Systems
• The Informed User – You!
• IT Offers Career Opportunities
• Managing Information Resources
Reasons Why You Should
Be An Informed User…
1. You will benefit more from your
organization’s IT applications because
you will understand what is “behind”
those applications.
2. Your input can enhance your
organization’s IT applications.
3. As you enter the workforce you can
assist in selecting the IT applications
your organization will use.
Reasons Why You Should Be
An Informed User (con’t)…
4. You will aware of both new
information technologies and rapid
developments in existing
technologies.
5. You will understand how using IT can
improve your organization’s
performance.
6. If you are entrepreneurial minded,
you can use IT to start your own
business.
IT Offers Career
Opportunities
• Chief Information Officer (CIO)
• Substantial Demand for IT Staff
– Programmers
– Business Analysts
– System Analysts
– Designers
• $130,000 is the median salary in 2015
for IS Managers (US Dept of Labor)
IT Skills Open Many Doors
Because IT Is So Widely Used
Managing Information
Resources
• Managing information systems (IS)
is difficult and complex
• Contributing Factors:
– Strategic value of IS’s
– Acquiring, operating, and maintaining
IS’s is very expensive
– Evolution of the IS Function
1.2 Overview of
Computer-Based IS’s
• Data – Information – Knowledge
• Computer-Based Information
System (CBIS)
• Types of Computer-Based
Information Systems (CBIS)
Data – Information –
Knowledge
Data versus Information
versus Knowledge
Components of a CBIS
• Hardware
• Software
• Database
• Network
• Procedures
• People
Computer-Based Information
Systems (CBIS)
Types of Computer Based
Information Systems (CBIS)
• Breadth of Support for Information
Systems (IS)
• Support for Organizational
Employees
Breadth of Support for
Information Systems (IS)
• Functional Area Information Systems
(FAIS)
• Enterprise Resource Planning Systems
(ERP)
• Transaction Processing Systems (TPS)
• Interorganizational Information
Systems (IOS)
• E-Commerce Systems
Major Capabilities of
Information Systems
(Table 1.3)
• Perform high-speed, high-volume numerical
computations.
• Provide fast, accurate communication and
collaboration within and among organizations.
• Store huge amounts of information in an easy-toaccess, yet small space.
• Allow quick and inexpensive access to vast amounts
of information, worldwide.
• Analyze and interpret vast amounts of data quickly
and efficiently.
• Automate both semiautomatic business processes
and manual tasks.
Figure 1.5: IS that function
among multiple organizations
Support for Organizational
Employees
• Knowledge Workers
• Office Automation Systems (OASs)
• Business Intelligence (BI) Systems
• Expert Systems (ES)
• Dashboards
Types of Organizational
Information Systems (Table 1.4)
1.3 How Does IT Impact
Organizations?
• IT Impacts Entire Industries
• IT Reduces the Number of Middle
Managers
• IT Change’s the Manager’s Job
• Will IT Eliminate Jobs?
• IT Impacts Employees at Work
IT Impacts Entire Industries
• Book Industry
• Music Industry
• Video Industry
• Software Industry
• Videogame Industry
• Photography Industry
• Marketing Industry
IT Impacts Entire Industries
(Continued)
• Recruiting Industry
• Financial Services Industry
• Motion Picture Industry
• Automotive Industry
• Agriculture Industry
• National Defense Industry
• Fashion Industry
IT Impacts Entire Industries
(Continued)
• Education
• Legal Profession
IT Impacts Employees at
Work
• IT Impacts Employees’ Health and
Safety
• IT Provides Opportunities for People
with Disabilities
Figure 1.6: Ergonomic products
protect computer users.
1.4 Importance of IS to
Society
• IT Affects Our Quality of Life
• The Robot Revolution is Here Now
• Improvements in Healthcare
CHAPTE
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Organizational Strategy,
Competitive Advantage,
and Information Systems
2
1. Business Pressures, Organizational
Responses, and Information Technology
Support
2. Competitive Advantage and Strategic
Information Systems
1. Identify effective IT responses to different
kinds of business pressures.
2. Describe the strategies that organizations
typically adopt to counter Porter’s five
competitive forces.
2.1
Business Pressures,
Organizational Responses,
and IT Support
• Business Pressures
• Organizational Responses
Business Pressures
• Market Pressures
• Technology Pressures
• Societal/Political/Legal Pressures
Figure 2.1: Business Pressures,
Organizational Performance &
Responses, and IT Support
Market Pressures
• Globalization
• Changing Nature of the Workforce
• Powerful Customers
Technology Pressures
• Technological Innovation and
Obsolescence
• Information Overload
Societal/Political/Legal
Pressures
• Social Responsibility
• Compliance with Government
Regulations
• Protection Against Terrorist Attacks
• Ethical Issues
Social Responsibility
• IT Assists “Go Green” Efforts in
Three Areas:
1. Facilities design and management
2. Carbon management
3. International and U.S. environmental
laws
• Digital Divide
Organizational Responses
• Strategic Systems
• Customer Focus
• Make-to-Order and Mass
Customization
• E-Business and E-Commerce
2.2 Competitive Advantage
and Strategic IS’s
• Porter’s Competitive Forces Model
• Porter’s Value Chain Model
• Strategies for Competitive
Advantage
• Business – Information Technology
Alignment
Porter’s Five Forces Model
1. The threat of new competitors
2. The bargaining power of suppliers
3. The bargaining power of customers
(buyers)
4. The threat of substitute products
or services
5. The rivalry among existing firms in
the industry
Figure 2.2: Porter’s
Competitive Forces Model
Porter’s Value Chain Model
• Value Chain
• Two Categories of Organization
Activities in the Value Chain
– Primary Activities
– Support Activities
Figure 2.3: Porter’s Value
Chain Model
Primary Activities
• Inbound logistics
• Operations
• Outbound logistics
• Marketing and sales
• Services
Support Activities
• The Firm’s Infrastructure
• Human Resources Management
• Product and Technology
Development
• Procurement
Strategies for Competitive
Advantage
1. Cost leadership strategy
2. Differentiation strategy
3. Innovation strategy
4. Organizational effectiveness
strategy
5. Customer orientation strategy
Figure 2.4: Strategies for
Competitive Advantage
Business-Information
Technology Alignment
• Business–Information Technology
Alignment
• Six Characteristics of Excellent
Business-IT Alignment:
Six Characteristics of Excellent
Business-IT Alignment
1. Organizations view IT as an engine of
innovation that continually transforms the
business, often creating new revenue
streams.
2. Organizations view their internal &
external customers & their customer
service function as supremely important.
3. Organizations rotate business & IT
professionals across departments and job
functions.
Six Characteristics of Excellent
Business-IT Alignment
(continued)
4. Organizations provide overarching
goals that are completely clear to
each IT and business employee.
5. Organizations ensure that IT employees
understand how the company makes (or
loses) money.
6. Organizations create a vibrant and
inclusive company culture.
CHAPTE
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Data and Knowledge
Management
3
1. Managing Data
2. The Database Approach
3. Big Data
4. Data Warehouses and Data Marts
5. Knowledge Management
1. Discuss ways that common challenges in
managing data can be addressed using data
governance.
2. Discuss the advantages and disadvantages of
relational databases.
3. Define Big Data, and discuss its basic
characteristics.
4. Explain the elements necessary to successfully
implement and maintain data warehouses.
5. Describe the benefits and challenges of
implementing knowledge management systems
in organizations.
3.1 Managing Data
• Difficulties of Managing Data
• Data Governance
The Difficulties of Managing
Data
•The amount of data increases
exponentially over time
•Data are scattered throughout
organizations
•Data are generated from multiple
sources (internal, personal, external)
–Clickstream Data
•New sources of data
The Difficulties of Managing
Data (continued)
•Data Degradation
•Data Rot
•Data security, quality, and integrity
are critical
•Legal requirements change
frequently and differ among
countries & industries
Data Governance
• Master Data Management
• Master Data
3.2 The Database
Approach
• Data File
• Database Systems Minimize &
Maximize Three Things
• The Data Hierarchy
• The Relational Database Model
Figure 3.1: Database
Management System
Database Management
Systems (DBMS) Minimize:
• Data Redundancy
• Data Isolation
• Data Inconsistency
Database Management
Systems (DBMS) Maximize:
• Data Security
• Data Integrity
• Data Independence
Data Hierarchy
• Bit
• Byte
• Field
• Record
• Data File (Table)
• Database
Figure 3.2: Hierarchy of Data
for a Computer-based File
The Relational Database
Model
• Database Management System
(DBMS)
• Relational Database Model
• Data Model
• Entity
• Instance
• Attribute
The Relational Database
Model (continued)
• Primary Key
• Secondary Key
• Foreign Key
• Unstructured Data
Figure 3.3: Student
Database Example
3.3 Big Data
• Defining Big Data
• Characteristics of Big Data
• Issues with Big Data
• Managing Big Data
• Putting Big Data to Use
• Big Data Used in the Functional
Areas of the Organization
Defining Big Data
• Gartner (www.gartner.com)
• Big Data Institute
Defining Big Data: Gartner
• Diverse, high volume, high-velocity
information assets that require new
forms of processing to enable
enhanced decision making, insight
discovery, and process optimization.
Defining Big Data: The Big
Data Institute (TBDI)
• Vast Datasets that:
– Exhibit variety
– Include structured, unstructured, and semistructured data
– Generated at high velocity with an uncertain
pattern
– Do not fit neatly into traditional, structured,
relational databases
– Can be captured, processed, transformed,
and analyzed in a reasonable amount of time
only by sophisticated information systems.
Big Data Generally Consist
of the Following:
• Traditional Enterprise Data
• Machine-Generated/Sensor Data
• Social Data
• Images Captured by Billions of
Devices Located Throughout the
World
Characteristics of Big Data
• Volume
• Velocity
• Variety
Issues with Big Data
• Untrusted data sources
• Big Data is dirty
• Big Data changes, especially in data
streams
Managing Big Data
• Big Data makes it possible to do
many things that were previously
impossible:
– Spot business trends more rapidly and
accurately
– tracking the spread of disease
– tracking crime
– detecting fraud
Managing Big Data
(continued)
• First Step:
– Integrate information silos into a
database environment and develop
data warehouses for decision making.
• Second Step:
– making sense of their proliferating
data.
Managing Big Data
(continued)
• Many organizations are turning to
NoSQL databases to process Big
Data
Putting Big Data to Use
• Making Big Data Available
• Enabling Organizations to Conduct
Experiments
• Micro-Segmentation of Customers
• Creating New Business Models
• Organizations Can Analyze Far More
Data
Big Data Used in the
Functional Areas of the
Organization
• Human Resources
• Product Development
• Operations
• Marketing
• Government Operations
3.4 Data Warehouses and
Data Marts
• Describing Data Warehouses and
Data Marts
• A Generic Data Warehouse
Environment
Describing Data
Warehouses and Data Marts
• Organized by business dimension or
Use online analytical processing
(OLAP)
• Integrated
• Time variant
• Nonvolatile
• Multidimensional
A Generic Data Warehouse
Environment
• Source Systems
• Data Integration
• Storing the Data
• Metadata
• Data Quality
• Governance
• Users
Figure 3.4: Data Warehouse
Framework
Figure 3.5: Relational
Databases
Figure 3.6: Data Cube
Figure 3.7: Equivalence Between
Relational and Multidimensional
Databases
3.5 Knowledge
Management
• Concepts and Definitions
• Knowledge Management Systems
• The KMS Cycle
Concepts and Definitions
• Knowledge Management
• Knowledge
• Explicit and Tacit Knowledge
• Knowledge Management Systems
• The KMS Cycle
Figure 3.8: The Knowledge
Management System Cycle
CHAPTE
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Telecommunications
and Networking
4
1. What Is a Computer Network?
2. Network Fundamentals
3. The Internet and the World Wide Web
4. Network Applications: Discovery
5. Network Applications: Communication
6. Network Applications: Collaboration
7. Network Applications: Education
1. Compare and contrast the major types of
networks.
2. Describe the wireline communications
media and transmission technologies.
3. Describe the most common methods for
accessing the Internet.
4. Explain the impact that discovery network
applications have had on business and
everyday life.
5. Explain the impact that communication
network applications have had on business
and everyday life.
6. Explain the impact that collaboration
network applications have had on business
and everyday life.
7. Explain the impact that educational network
applications have had on business and
everyday life.
4.1 What Is a Computer
Network?
• Computer Network
• Bandwidth
• Broadband
• Local Area Networks
• Wide Area Networks
• Enterprise Networks
Figure 4.1: Ethernet Local
Area Network (LAN)
Figure 4.2: Enterprise
Network
4.2 Network
Fundamentals
• Communications Media and
Channels
• Network Protocols
• Types of Network Processing
Communications Media and
Channels
• Twisted-Pair Wire
• Coaxial Cable
• Fiber Optics
Table 4.1: Advantages and
Disadvantages of Wireline
Communications Channels
Communications Media:
Twisted-Pair Wire
Communications Media:
Coaxial Cable
Communications Media:
Fiber Optics
Network Protocols
• Ethernet
• Transmission Control Protocol /
Internet Protocol (TCP/IP)
Transmission Control
Protocol / Internet Protocol
• Three Basic Functions of TCP
• Packets & Packet Switching
• Four Layers of the TCP/IP Reference
Model
Three Basic Functions of the
TCP
1. Manages the movement of data
packets between computers by
establishing a connection between
the computers
2. Sequences the transfer of packets
3. Acknowledges the packets that
have been transmitted
Figure 4.7: Packet
Switching
Four Layers of the TCP/IP
Reference Model
1. Application Layer
2. Transport Layer
3. Internet Layer
4. Network Interface Layer
Figure 4.6: The Four Layers of
the TCP/IP Reference Model
Types of Network
Processing
• Client/Server Computing
• Peer-to-Peer Processing
4.3 The Internet and the
World Wide Web
• Internet (“the Net”)
• Accessing the Internet
• The Future of the Internet
• The World Wide Web
Accessing the Internet
• Connecting via an Online Service
• Connecting via Other Means
– Satellite
– Google Fiber
• Addresses on the Internet
Table 4.2: Internet
Connection Methods
Future of the Internet
• High User Demand = Reduced
Performance in the Near Future
• The Internet is unreliable and not
secure.
• Internet2
The World Wide Web
(WWW)
• World Wide Web
• Hypertext
• URL
4.4 Network Applications:
Discovery
• Search Engines and Metasearch
Engines
• Publication of Material in Foreign
Languages
• Portals
Publication of Materials in
Foreign Languages
Affinity Portals
4.5 Network Applications:
Communication
• Electronic Mail
• Web-Based Call Centers
• Electronic Chat Rooms
• Voice Communication
– Voice Over Internet Protocol (VoIP)
• Unified Communications
• Telecommuting
4.6 Network Applications:
Collaboration
• Workgroup
• Workflow
• Virtual Group (Team)
• Virtual Collaboration
• Crowdsourcing
• Electronic Teleconferencing and
Video Conferencing
Figure 4.11: Telepresence
System
4.7 Network Applications:
Educational
• E-Learning
• Distance Education
– MOOC’s
• Virtual Universities
CHAPTE
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Business Analytics
5
1. Managers and Decision Making
2. The Business Analytics Process
3. Business Analytics Tools
4. Business Analytics Models: Descriptive
Analytics, Predictive Analytics, and
Prescriptive Analytics
1. Use a decision support framework to
demonstrate how technology supports
managerial decision making at each phase of the
decision-making process.
2. Describe each phase of the business analytics
process.
3. Describe each of the various analytics tools and
examples of their uses.
4. Provide a definition and a use case example for
descriptive analytics, predictive analytics, and
prescriptive analytics.
• Business Analytics (BA)
• Business Intelligence (BI)
• BA versus BI
5.1 Managers and Decision
Making
• The Manager’s Job and Decision Making
• Why Managers Need IT Support
• A Framework for Computerized Decision
Analysis
The Manager’s Job and
Decision Making
• Management
• Productivity
• Three Basic
Roles of Managers
• Decision
• Four Phases
of Decision Making
Three Basic Roles of Managers
• Interpersonal Roles
• Informational Roles
• Decisional Roles
Figure 5.1: The Process and
Phases in Decision Making
Why Managers Need IT
Support
• The number of alternatives is constantly
increasing
• Most decisions are made under time
constraints
• Increased uncertainty requires
sophisticated analyses
• Group decision making required without
incurring major expenses
A Framework for Computerized
Decision Analysis
• Problem Structure
• The Nature of Decisions
– Operational Control
– Management Control
– Strategic Planning
• Decision Matrix
Figure 5.2: Decision Support
Framework
5.2 The Business Analytics
Process
Business analytics (BA):
the process of developing actionable decisions or
recommendations for actions based on insights
generated from historical data. Business analytics
examines data with a variety of tools and
techniques, formulates descriptive, predictive, and
prescriptive models, and communicates these
results to organizational decision makers.
Figure 5.3: The Business
Analytics Process
The Scope of Business
Analytics
• The Development of One or a Few
Related Analytics Applications
• The Development of Infrastructure to
Support Enterprisewide Analytics
• Support for Organizational
Transformation
5.3 Business Analytics Tools
• Excel
• Multidimensional Analysis or Online
Analytical Processing
• Data Mining
• Decision Support Systems
Multidimensional Analysis or
Online Analytical Processing
• Online Analytical Processing
• Multi-dimensional Analysis
Data Mining
• Two Basic Data Mining Operations
– Predicting trends and behaviors
– Identifying previously unknown patterns
Data-Mining Applications Used in
Business and Other Fields
• Retailing and Sales
• Banking
• Manufacturing & Production
• Insurance
• Policework
• Healthcare
Data-Mining Applications Used in
Business and Other Fields
• Marketing
• Politics
• Weather
• Higher Education
• Social Good
Decision Support Systems
(DSS)
• Sensitivity Analysis
• What-If Analysis
• Goal-Seeking Analysis
5.4
Business Analytics Models:
Descriptive, Predictive, and
Prescriptive Analytics
• Descriptive Analytics
• Predictive Analytics
• Prescriptive Analytics
• Presentation Tools
Predictive Analytics:
Examples…
• Drive the coupons you receive at the
grocery store register
• Website predict which ads you will click
on
• President Obama was re-elected in 2012
with the help of voter prediction
• Leading online dating companies match
compatible individuals
Predictive Analytics: Examples
(Continued)
• Automatic grading of student essays
• Wireless carriers predict customer churn
• Insurance companies predict body injury
liability from car crashes
• Better diagnosis of breast cancer
• Predict the likelihood a convict will offend
again
Predictive Analytics: Examples
(Continued)
• Financial Service Firms produce credit
scores
• Predict sales based on which products
are purchased together
• Sentiment analysis
Presentation Tools
• Dashboards
• Geographic Information Systems
Table 5.1: The Capabilities of
Dashboards
Figure 5.3: Sample
Performance Dashboard
Figure 5.5: Bloomberg Terminal
Figure 5.6: Management
Cockpit
CHAPTE
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Information Security
7
1. Introduction to Information Security
2. Unintentional Threats to Information
Systems
3. Deliberate Threats to Information
Systems
4. What Organizations Are Doing to Protect
Information Resources
5. Information Security Controls
1. Identify the five factors that contribute to the
increasing vulnerability of information resources and
specific examples of each factor.
2. Compare and contrast human mistakes and social
engineering, along with specific examples of each
one.
3. Discuss the 10 types of deliberate attacks.
4. Describe the three risk mitigation strategies and
examples of each one in the context of owning a
home.
5. Identify the three major types of controls that
organizations can use to protect their information
resources along with an example of each one.
7.1 Introduction to
Information Security
• Information Security
• Threat
• Exposure
• Vulnerability
• Five Key Factors Increasing
Vulnerability
• Cybercrime
Five Key Factors Increasing
Vulnerability
1. Today’s interconnected, interdependent,
wirelessly networked business
environment
2. Smaller, faster, cheaper computers and
storage devices
3. Decreasing skills necessary to be a
computer hacker
4. International organized crime taking over
cybercrime
5. Lack of management support
7.2 Unintentional Threats to
Information Systems
• Human Errors
• Social Engineering
Figure 7.1
Security
Threats
Human Errors
• Higher employee levels = higher
levels of security risk
• Most Dangerous Employees
• Human Mistakes
Dangerous Employees
• Two organizational areas pose the
greatest risk
– Human Resources
– Information Systems
• Janitors and Guards Frequently
Overlooked
Human Mistakes
• Carelessness with laptops
• Carelessness with computing
devices
• Opening questionable e-mails
• Careless Internet surfing
• Poor password selection and use
• Carelessness with one’s office
Human Mistakes
(continued)
• Carelessness using unmanaged
devices
• Carelessness with discarded
equipment
• Careless monitoring of
environmental hazards
Table 7.1: Human Mistakes
Social
Engineering
• Social Engineering:
– an attack in which the perpetrator uses
social skills to trick or manipulate
legitimate employees into providing
confidential company information such
as passwords.
7.3 Deliberate Threats to
Information Systems
1. Espionage or Trespass
2. Information Extortion
3. Sabotage or Vandalism
4. Theft of Equipment or Information
5. Identity Theft
6. Compromises to Intellectual
Property
7.3
Deliberate Threats to
Information Systems
(continued)
7. Software Attacks
8. Alien Software
9. Supervisory Control and Data
Acquisition Attacks
10. Cyberterrorism and Cyberwarfare
6. Compromises to
Intellectual Property
• Intellectual Property
• Trade Secret
• Patent
• Copyright
7. Software Attacks: Three
Categories
1. Remote Attacks Requiring User
Action
– Virus
– Worm
– Phishing Attack
– Spear Phishing
7. Software Attacks: Three
Categories (continued)
2. Remote Attacks Needing No User
Action
– Denial-of-Service Attack
– Distributed Denial-of-Service Attack
7. Software Attacks: Three
Categories (continued)
3. Attacks by a Programmer
Developing a System
– Trojan Horse
– Back Door
– Logic bomb
8. Alien Software
• Adware
• Spyware
• Spamware
• Spam
• Cookies
7.4
What Organizations Are
Doing to Protect
Information Resources
• Risk
• Risk Management
• Risk Analysis
• Risk Mitigation
Table 7.3: The Difficulties in
Protecting Information Resources
Risk Management
Three Processes of Risk Management:
1. risk analysis
2. risk mitigation
3. controls evaluation
Risk Analysis
Three Steps of Risk Analysis
1. assessing the value of each asset
being protected
2. estimating the probability that each
asset will be compromised
3. comparing the probable costs of the
asset’s being compromised with the
costs of protecting that asset
Risk Mitigation
• Risk Acceptance
• Rick Limitation
• Risk Transference
7.5 Information Security
Controls
• Physical Controls
• Access Controls
• Communications Controls
• Business Continuity Planning
• Information Systems Auditing
Figure 7.2: Where Defense
Mechanisms are Located.
Physical Controls
• Walls
• Doors
• Fencing
• Gates
• Locks
• Badges
• Guards
• Alarm Systems
Access Controls
• Authentication
• Authorization
– Something the user is (Biometrics)
– Something the user has
– Something the user does
– Something the user knows
Communications Controls
• Firewall
– Demilitarized Zone (DMZ)
• Anti-malware Systems
• Whitelisting
• Blacklisting
• Encryption
• Virtual Private Network (VPN)
Communications Controls
(Continued)
• Transport Layer Security (formerly
called Secure Socket Layer)
• Employee Monitoring Systems
Figure 7.3: (a) Basic Firewall for Home
Computer. (b) Organization with Two
Firewalls and Demilitarized Zone
Figure 7.4: How Public-key
Encryption Works
Figure 7.5: How Digital
Certificates Work.
Figure 7.6: Virtual Private
Network (VPN) and Tunneling
Business Continuity
Planning
• Business Continuity
• Business Continuity Plan
Information Systems
Auditing
• Internal Audits
• External Audits
• Three Categories of IS auditing
procedures
Three Categories of IS
auditing procedures:
• Auditing Around the Computer
• Auditing Through the Computer
• Auditing With the Computer
CHAPTE
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Social Computing
8
CHAPTER OUTLINE
1. Web 2.0
2. Fundamentals of Social Computing in
Business
3. Social Computing in Business: Shopping
4. Social Computing in Business: Marketing
5. Social Computing in Business: Customer
Relationship Management
6. Social Computing in Business: Human
Resource Management
1. Describe six Web 2.0 tools and two major
types of Web 2.0 sites.
2. Describe the benefits and risks of social
commerce to companies.
3. Identify the methods used for shopping
socially.
4. Discuss innovative ways to use social
networking sites for advertising and
market research.
5. Describe how social computing improves
customer service.
6. Discuss different ways in which human
resource managers make use of social
computing.
8.1 Web 2.0
• Tagging
– Folksonomies
– Geotagging
• Really Simple Syndication (RSS)
• Blogs
Figure 8.1: Web Site of National
Public Radio with RSS Toolbar
8.1 Web 2.0 (continued)
• Microblogging
• Wikis
• Social Networking Web Sites
• Enterprise Social Networks
• Mashups
Figure 8.2: Google Maps is a
Classic Example of a Mashup
8.2 Fundamentals of Social
Computing in Business
• Social Commerce
• Benefits and Risks of Social
Commerce
• Collaborative Consumption
Social Commerce:
Benefits to Customers
• Better and faster vendor responses to
complaints (on Twitter, Facebook, and
YouTube)
• Customers can assist other customers
(e.g., in online forums)
• Customers’ expectations can be met
more fully and quickly
• Customers can easily search, link,
chat, and buy while staying on a social
network’s page
Social Commerce:
Benefits to Businesses
• Can test new products and ideas
quickly and inexpensively
• Learn a lot about their customers
• Identify problems quickly and alleviate
customer anger
• Learn about customers’ experiences
via rapid feedback
• Increase sales when customers
discuss products positively on social
networking site
Social Commerce:
Benefits to Businesses (Con’t)
• Create more effective marketing
campaigns and brand awareness
• Use low-cost user-generated content,
for example, in marketing campaigns
• Obtain free advertising through viral
marketing
• Identify and reward influential brand
advocates
Table 8.2: Potential Benefits
of Social Commerce
Social Commerce:
Risks
• Companies concerned about
negative posts
• 80/20 rule – 80% of content is
generated by 20% of users
• Information Security Concerns
• Invasion of Privacy
• Violation of Intellectual Property
and Copyright
Social Commerce:
Risks (Continued)
• Employees’ Reluctance to Participate
• Data Leakage of Personal Information
or Corporate Strategic Information
• Poor or Biased Quality of User
Generated Content
• Cyberbullying/Cyberstalking and
Employee Harassment
8.3 Social Computing in
Business: Shopping
• Ratings, Reviews, and
Recommendations
• Group Shopping
• Shopping Communities and Clubs
• Social Marketplaces and Direct
Sales
• Peer-to-Peer Shopping Models
Figure 8.3: Epinions is a Web site
that allows customers to rate
anything from cars to music.
Figure 8.4: LivingSocial.com is a
Popular Example of a Group
Shopping Web Site.
Figure 8.5: Etsy.com is a Social
Marketplace for all Handmade or
Vintage Items.
8.4 Social Computing in
Business: Marketing
• Social Advertising
• Market Research
– Conversational Marketing
• Conducting Market Research Using
Social Networks
Figure 8.6: Customers Share
Their Ideas and Feedback with
Dell via IdeaStorm.com.
8.5
Social Computing in
Business: Customer
Relationship Management
• How Social Computing Improves
Customer Service
8.6
Social Computing in
Business: Human
Resource Management
• Recruiting
• Onboarding
• Employee Development
• Finding a Job
CHAPTE 10
R
Wireless, Mobile Computing,
and Mobile Commerce
1. Wireless Technologies
2. Wireless Computer Networks and
Internet Access
3. Mobile Computing and Mobile Commerce
4. The Internet of Things
1. Identify advantages and disadvantages of each
of the four main types of wireless transmission
media.
2. Explain how businesses can use short-range,
medium-range, and long-range wireless
networks.
3. Provide a specific example of how each of the
five major m-commerce applications can benefit
a business.
4. Describe the Internet of Things, along with
examples of how organizations can utilize the
Internet of Things.
10.1 Wireless Technologies
• Wireless Devices
– Dematerialization
• Wireless Transmission Media
• Wireless Security
Wireless Devices
Wireless Devices Provide Three Major
Advantages:
1. Small enough to easily carry or
wear
2. Sufficient computing power to
perform productive tasks.
3. Can communicate wirelessly with
the Internet and other devices.
Figure 10.1: Dematerialization
with Smartphones
Wireless Transmission
Media
• Microwave
• Satellite
– Types of Orbits
– Global Positioning Systems
– Radio
Wireless Transmission
Media: Microwave
• Advantages of Microware
– High bandwidth
– Relatively inexpensive
• Disadvantages of Microwave
– Must have unobstructed line of sight
– Susceptible to environmental
– interference
Wireless Transmission
Media: Satellite
• Advantages of Satellite
– High bandwidth
– Large coverage area
• Disadvantages of Satellite
– Expensive
– Must have unobstructed line of sight
– Signals experience propagation delay
– Must use encryption for security
Table 10.1 Advantages &
Disadvantages of Wireless Media
Satellites
• Three Types of Satellites Circling Earth
1. Geostationary-Earth-Orbit (GEO)
2. Medium-Earth-Orbit (MEO)
3. Low-Earth-Orbit (LEO)
• Footprint
• Propagation Delay
• Internet over Satellite (IoS)
Table 10.2: Three Basic Types of
Telecommunications Satellites
Figure 10.3: Obtaining GPS
Information in an Automobile
Wireless Transmission
Media: Radio
• Advantages of Radio
– High bandwidth
– Signals pass through walls
– Inexpensive and easy to install
• Disadvantages of Radio
– Creates electrical interference problems
– Susceptible to snooping unless encrypted
10.2
Wireless Computer
Networks and Internet
Access
• Short-Range Wireless Networks
• Medium-Range Wireless Networks
• Wide-Area Wireless Networks
Short-Range Wireless
Networks
• Bluetooth
– Bluetooth 1.0
– Bluetooth 4.0
– Personal Area Network
• Ultra-Wideband
• Near-Field Communications
Medium-Range Wireless
Networks
• Wireless Fidelity (Wi-Fi)
• Wireless Mesh Networks
Wireless Fidelity (Wi-Fi)
• Wireless Access Point
• Hotspot
• IEEE Wi-Fi Standards
• Major Benefits of Wi-Fi
• Wi-Fi Direct
• MiFi
• Super Wi-Fi
Major Benefits of Wi-Fi
• Low cost
• Ability to provide simple Internet
access
Wide-Area Wireless
Networks
• Cellular Radio
• Generations of Cellular Technology
Evolution
• Wireless Broadband or WiMAX
Generations of Cellular
Technology Evolution
• (1G) First generation
• (2G) Second generation
• 2.5G
• (3G) Third generation
• (4G) Fourth generation
• (5G) Fifth generation
Wireless Broadband or
WiMAX
• Worldwide Interoperability for
Microwave Access (WiMAX)
• WiMAX = IEEE Standard 802.16
• Wireless access range of up to 31
miles
• Data transfer rate of up to 75 Mbps
• A secure system offering voice and
video
Wireless Security
• Four Major Challenges to Wireless
Networks:
– Rogue Access
• Evil Twin Attack
• Hotspotter
– War Driving
– Eavesdropping
– Radio-Frequency (RF) Jamming
10.3 Mobile Computing and
Mobile Commerce
• Mobile Computing
– Mobility
– Broad Reach
• Mobile Commerce
• Mobile Commerce Applications
Mobility and Broad Reach
Mobility and Broad Reach Create
Five Value-added Attributes:
1. Ubiquity
2. Convenience
3. Instant connectivity
4. Personalization
5. Localization of products and services
Mobile Commerce
Development of M-Commerce is
Driven by:
– Widespread availability of mobile
devices
– Declining prices
– Bandwidth improvement
Mobile Commerce
Applications
• Mobile Wallets
• Location-Based Applications and Services
• Mobile Advertising
• Financial Services
• Intrabusiness Applications
• Accessing Information
– Mobile Portal
– Voice Portal
• Telemetry Applications
Mobile Wallets
• Softcard
• Google Wallet
• Android Pay
• MasterCard’s Contactless, American
Express’s ExpressPay, and Visa’s
PayWave
• Apple Pay
Location-Based Applications
and Services
• Location-Based Commerce
(L-Commerce)
• Benefits of Location-Based Services
for Users
• Benefits of Location-Based Services
for Service Providers
Benefits of Location-Based
Services for Users:
• Request the nearest business or
service
• Receive alerts
• Find a friend
• Locating taxis, service personnel,
doctors, and rental equipment
Benefits of Location-Based
Services for Service Providers
• Schedule fleets
• Tracking objects such as packages
and train boxcars
• Find information such as navigation,
weather, traffic, and room schedules
• Targeting advertising
• Automating airport check-ins
Mobile Commerce
Applications: Financial
Services
• Banking
• Micropayments
• Money Transfers
• Wireless Mobile Wallets (M-Wallets)
• Bill Payment Services
Intrabusiness Applications
Mobile Computing For Employee
Support:
• Workflow Applications
• Dispatch Functions
Accessing Information
• Mobile Portals
• Voice Portals
Mobile Computing
Applications: Telemetry
• Identify maintenance problems in
equipment
• Monitor medical patients
• Control medical equipment remotely
• Remote vehicle diagnosis &
preventive maintenance
• Find My iPhone
10.4 The Internet of Things
• Wireless Sensor Networks
• Radio-Frequency Identification
(RFID)
• Examples of the Internet of Things
in Use
Radio-Frequency
Identification (RFID)
• RFID
• Bar Codes
• QR Codes
Bar Codes
Limitations of Bar Codes:
• Requires line of sight from scanning
device
• Pose substantial problems in
manufacturing plants, warehouses and
shipping/receiving docks
• Paper bar codes are easily damaged
• Identifies the manufacturer and
product but not the actual item
QR Codes:
Advantages Over Bar Codes
• Store more information
• Data types stored include numbers,
text, URLs, and even Japanese
characters.
• Smaller because they store
information both horizontally and
vertically.
• Read from any direction or angle
• More resistant to damage
RFID
• RFID Systems
• Two Basic Types of RFID Tags
– Active RFID Tags
– Passive RFID Tags
The Internet of Things (IoT)
• Capabilities of IoT
• Examples of IoT Use
Capabilities of IoT
• Reducing waste, loss, and cost
• Identifying the need for repair,
replacement, or recall
• Tracking expiration data on
perishable items
Examples of IoT Use
• Smart Home
• Healthcare
• Automotive
• Supply Chain Management
• Environmental Monitoring
• Energy Management
• Agriculture
• Transportation
CHAPTE 11
R
Information Systems within the
Organization
1. Transaction Processing Systems
2. Functional Area Information Systems
3. Enterprise Resource Planning (ERP)
Systems
4. ERP Support for Business Processes
1. Explain the purpose of transaction
processing systems.
2. Explain the types of support that information
systems can provide for each functional
area of the organization.
3. Identify advantages and drawbacks to
businesses implementing an enterprise
resource planning system.
4. Describe the three main business processes
supported by ERP systems.
11.1 Transaction Processing
Systems
• Transaction
• Transaction Processing System
(TPS)
• Batch Processing
• Online Transaction Processing
(OLTP)
Figure 11.1: How TPS
Manage Data
11.2 Functional Area
Information Systems
• IS for Accounting and Finance
• IS for Marketing
• IS for Production/Operations
Management
• IS for Human Resource
Management
• Reports
IS for Accounting and
Finance
• Financial Planning and Budgeting
• Managing Financial Transactions
• Investment Management
• Control and Auditing
Financial Planning and
Budgeting
• Financial and economic forecasting
• Budgeting
Managing Financial
Transactions
• Global stock exchanges
• Managing multiple currencies
• Virtual close
• Expense management automation
(EMA)
Control and Auditing
• Budgetary control
• Auditing
• Financial ratio analysis
IS for Production/Operations
Management (POM)
• In-House Logistics and Materials
Management
• Inventory Management
• Quality Control
• Planning Production and Operations
Management
• Computer-Integrated Manufacturing
• Product Lifecycle Management
IS for Human Resource
Management
• Recruitment
• Human Resources Development
• Human Resources Planning and
Management
Three Areas of IT support in
HR Planning and Management
1. Payroll and employees’ records
2. Benefits administration
3. Employee relationship
management
Figure 11.2: Systems
supporting functional Areas
Reports
• Routine Reports
• Ad-hoc (On-Demand) Reports
– Drill-down reports
– Key indicator reports
– Comparative reports
– Exception reports
Monthly Sales Report
11.3 Enterprise Resource
Planning (ERP) Systems
• ERP II Systems
• Benefits and Limitations of ERP
Systems
• Implementing ERP Systems
• Enterprise Application Integration
Core ERP Modules
ERP II
SYSTEM
Manufacturing
Accounting
and Financial
Module
& Production
Module
Human
Resources
Module
Suppliers
Customers
Supply Chain
Management
Module
ERP
Platform &
Database
Business
Intelligence
Module
E-Business
Module
Extended ERP Modules
Customer
Relationship
Management
Module
ERP Systems: Benefits
• Organizational Flexibility and Agility
• Decision Support
• Quality and Efficiency
ERP Systems: Limitations
• Business Processes Predefined by
Best Practices
• Difficult to Implement
• Potential for Failure
Major Causes of ERP
Implementation Failure
• Failure to involve affected
employees in planning and
development
• Attempting too much too fast
• Insufficient training
• Failure to perform proper data
conversion and testing
Implementing ERP Systems
• On-Premise ERP Implementation
• Software-as-a-Service (SaaS) ERP
Implementation
On-Premise ERP
Implementation
• Vanilla Approach
• Custom Approach
• Best of Breed Approach
11.4 ERP Support for
Business Processes
• The Procurement, Fulfillment, and
Production Processes
• Interorganizational Processes: ERP
with SCM and CRM
The Procurement, Fulfillment,
and Production Processes
• Procurement Process
• Order Fulfillment Process
• Production Process
Figure 11.4: Departments &
Documents Flow in Procurement
Figure 11.5: Departments &
Documents Flow in Fulfillment
Figure 11.6: Departments &
Documents Flow in Production
Figure 11.7: Integrated
Processes with ERP Systems
Interorganizational Processes:
ERP with SCM and CRM
• Enterprise Resource Planning (ERP)
Supply Chain Management (SCM)
Systems
• Enterprise Resource Planning (ERP)
Customer Relationship Management
(CRM) Systems
CHAPTE 12
R
Customer Relationship
Management
1. Defining Customer Relationship
Management
2. Operational Customer Relationship
Management
3. Other Types of Customer Relationship
Management Systems
1. Identify the primary functions of both
customer relationship management (CRM)
and collaborative CRM strategies.
2. Describe how businesses might utilize
applications of each of the two major
components of operational CRM systems.
3. Explain the advantages and disadvantages
of mobile CRM systems, on-demand CRM
systems, open-source CRM systems, social
CRM systems, and real-time CRM systems.
12.1
Defining Customer
Relationship
Management
• Customer Touch Points
• Data Consolidation
Figure 12.1: CRM Process
Figure 12.2: Customer
Touchpoints
12.2
Operational Customer
Relationship
Management System
• Customer-Facing Applications
• Customer-Touching Applications
Customer Facing
Applications
• Customer Service and Support
• Sales Force Automation
• Marketing
• Campaign Management
Customer Facing Applications:
Customer Service & Support
• Customer Interaction Centers (CIC)
• Call Center
• Oubound Telesales
• Inbound Teleservice
• Information Help Desk
• Live Chat
Customer Facing Applications:
Sales Force Automation
• Contact Management System
• Sales Lead Tracking System
• Sales Forecasting System
• Product Knowledge System
• Configurator
Customer Facing
Applications: Marketing
• Data Mining
• Cross-Selling
• Upselling
• Bundling
Customer Facing Applications:
Campaign Management
• Campaign Planning
– Right messages
– Right people
– Right channels
– Marketing communications opt-out
Customer Touching
Applications
• Search & Comparison Capabilities
• Technical and Other Information and
Services
• Customized Products and Services
• Mass Customization
• Personalized Web Pages
• Frequently Asked Questions (FAQs)
• E-mail and Automated Response
• Loyalty Programs
Figure 12.3: Relationship Between
Operational CRM & Analytical CRM
12.3
Other Types of
Customer Relationship
Management Systems
• On-Demand CRM Systems
• Mobile CRM Systems
• Open-Source CRM Systems
• Social CRM
• Real-Time CRM
Open-Source CRM Systems
• Benefits of Open-Source CRM
Systems
• Disadvantages of Open-Source CRM
Systems
• Examples
Open-Source CRM Systems:
Benefits
• Favorable pricing
• Wide variety of applications
• Easy to customize
• Updates and bug (software error)
fixes rapidly distributed
• Extensive support information
available for free
Open-Source CRM Systems:
Disadvantages
• Risk related to quality control
• Company’s IT platform must match
development platform of opensource CRM system
Open-Source CRM Systems:
Examples
• SugarCRM
– (www.sugarcrm.com)
• Concursive
– (www.concursive.com)
• Vtiger
– (www.vtiger.com)
Social CRM
• Provides two-way communication
between organization & customers
• Organizations monitor social media
sites and respond accordingly
• Customers obtain faster, better
customer service
Real-Time CRM
Organizations are implementing real-time
customer relationship management in order
to provide a superior level of customer
satisfaction for today’s always-on, alwaysconnected, more knowledgeable, and less
loyal customers
CHAPTE 13
R
Supply Chain Management
1. Supply Chains
2. Supply Chain Management
3. Information Technology Support for
Supply Chain Management
1. Describe the three components and the
three flows of a supply chain.
2. Identify popular strategies to solving
different challenges of supply chains.
3. Explain the utility of each of the three
major technologies that support supply
chain management.
13.1 Supply Chains
• Supply Chain
• Supply Chain Visibility
The Structure and
Components of Supply Chains
• Three Segments of the Supply
Chain
• Tiers of Suppliers
• The Flows of the Supply Chain
Three Segments of the
Supply Chain
• Upstream
• Internal
• Downstream
Three Flows of the Supply
Chain
1. Material Flows
– Reverse Flows
2. Information Flows
3. Financial Flows
13.2 Supply Chain
Management (SCM)
• Five Basic Components of SCM
• Supply Chain Management Systems
• The Push Model Versus the Pull
Model
• Problems Along the Supply Chain
• Solutions to Supply Chain Problems
Five Basic Components of
SCM
1. Plan
2. Source
3. Make
4. Deliver
5. Return
The Push Model Versus the Pull
Model
Problems Along the Supply
Chain
Two Primary Sources of Problems
Along the Supply Chain:
1. Uncertainties
2. The need to coordinate multiple
activities, internal units, and business
partners.
• Demand Forecast
• Bullwhip Effect
Figure 13.2: The Bullwhip
Effect
Solutions to Supply Chain
Problems
Using Inventories to Solve Supply
Chain Problems
– Vertical Integration
– Just-In-Time Inventory
– Information Sharing
– Vendor-Managed Inventory (VMI)
13.3 IT Support for Supply
Chain Management
• Electronic Data Interchange (EDI)
• Extranets
• Portals and Exchanges
Electronic Data Interchange
(EDI): Benefits
• Minimizes data entry errors
• Length of the message can be shorter
• Messages are secured
• Reduces cycle time
• Increases productivity
• Enhances customer service
• Minimizes paper usage and storage
Electronic Data Interchange
(EDI): Disadvantages
• Business processes sometimes must
be restructured to fit EDI
requirements
• Many EDI standards in use today
Figure 13.3: Purchase Order
Fulfillment without EDI
Figure 13.3: Purchase
Order Fulfillment with EDI
Extranet
• A Company and Its Dealers,
Customers, or Suppliers
• Industry Extranet
• Joint Ventures and Other Business
Partnerships
Figure 13.4: The Structure
of an Extranet
Portals and Exchanges
• Procurement Portal
• Distribution Portal
CHAPTE 14
R
Acquiring Information Systems
and Applications
1. Planning for and Justifying IT Applications
2. Strategies for Acquiring IT Applications
3. Traditional Systems Development Life
Cycle
4. Alternative Methods and Tools for
Systems Development
1. Discuss the different cost–benefit analyses that
companies must take into account when
formulating an IT strategic plan.
2. Discuss the four business decisions that
companies must make when they acquire new
applications.
3. Enumerate the primary tasks and the importance
of each of the six processes involved in the
systems development life cycle.
4. Describe alternative development methods and
the tools that augment these methods.
14.1
Planning for and
Justifying IT
Applications
• IT Planning
• Evaluation and Justifying IT
Investment: Benefits, Costs, and
Issues
Figure 14.1: The IS
Planning Process
IT Planning
• Organizational Strategic Plan
• IT Strategic Plan
• IT Steering Committee
• IS Operational Plan
IT Strategic Plan
Three Objectives of an IT Strategic
Plan:
– Must be aligned with the organization’s
strategic plan
– Provide for an IT architecture
– Efficiently allocate IS development
resources
IT Steering Committee
Major Tasks of an IT Steering
Committee
– Link corporate strategy with IT
strategy
– Approve the allocation of resources for
the MIS function
– Establish performance measures for
the MIS function and ensure they are
met
IS Operational Plan
Elements of an IS Operational Plan:
– Mission
– IS Environment
– Objectives of the IS Function
– Constraints on the IS function
– Application Portfolio
– Resource Allocation and Project
Management
Evaluation and Justifying IT
Investment: Benefits, Costs,
and Issues
• Assessing the Costs
• Assessing the Benefits
• Conducting the Cost-Benefit
Analysis
Conducting the Cost-Benefit
Analysis
Four Common Approaches for CostBenefit Analysis:
• Net Present Value
• Return on Investment (ROI)
• Breakeven Analysis
• Business Case Approach
14.2 Strategies for Acquiring
IT Applications
• Fundamental Decisions
• Acquisition Methods
• Purchase a Prewritten Application
• Customize a Prewritten Application
• Lease the Application
• Application Service Providers and
Software-as-a-Service Vendors
14.2
Strategies for Acquiring
IT Applications
(Continued)
• Use Open-Source Software
• Outsourcing
• Continuous Development
• Employ Custom Development
Fundamental Decisions
• How much computer code does the
company want to write?
• How will the company pay for the
application?
• Where will the application run?
• Where will the application originate?
Table 14.1: Advantages &
Disadvantages of Buy Option
Figure 14.2: Operation of
an ASP
Figure 14.3: Operation of a
SaaS Vendor
14.3 The Traditional Systems
Development Life Cycle
• Systems Development Life Cycle
(SDLC)
1. Systems Investigation
2. Systems Analysis
3. Systems Design
4. Programming and Testing
5. Implementation
6. Operations and Maintenance
Figure 14.4: A six-stage
SDLC with Supporting Tools
Figure 14.5: Comparison of user &
Developer Involvement Over the
SDLC
Table 14.2: Advantages and
Disadvantages of System
Acquisition Methods
Table 14.2: Advantages and
Disadvantages of System
Acquisition Methods (Continued)
Table 14.2: Advantages and
Disadvantages of System
Acquisition Methods (Continued)
Table 14.2: Advantages and
Disadvantages of System
Acquisition Methods (Continued)
Table 14.2: Advantages and
Disadvantages of System
Acquisition Methods (Continued)
Table 14.2: Advantages and
Disadvantages of System
Acquisition Methods (Continued)
Table 14.2: Advantages and
Disadvantages of System
Acquisition Methods (Continued)
SDLC:
Systems Investigation
• Three Basic Solutions
• Feasibility Study
• Go / No Go Decision
Systems Investigation:
Three Basic Solutions
1. Do nothing and continue to use the
existing system unchanged
2. Modify or enhance the existing
system
3. Develop a new system.
Systems Investigation:
Feasibility Study
• Technical Feasibility
• Economic Feasibility
• Behavioral Feasibility
SDLC:
Systems Analysis
The process whereby systems
analysts examine the business
problem that the organization plans
to solve with an IS.
• Deliverable:
– A set of system requirements (or User
Requirements)
SLDC:
Systems Design
Describes how the system will resolve
the business problem.
• Deliverable:
– a set of technical system
specifications.
• Scope Creep
Systems Design:
Technical Specifications
• Technical Specifications include
following:
– System outputs, inputs, and user
interfaces
– Hardware, software, databases,
telecommunications, personnel, and
procedures
– A blueprint of how these components
are integrated
SDLC:
Programming and Testing
• Programming
• Testing
SDLC:
Implementation
• Implementation
• Three Major Conversion Strategies
– Direct
– Pilot
– Staged
SDLC:
Operations & Maintenance
Systems Require Several Types of
Maintenance:
• Debugging
• Updating
• Adding
14.4
Alternative Methods and
Tools for Systems
Development
• Joint Application Development
• Rapid Application Development
• Agile Development
• End-User Development
• Tools for Systems Development
Figure 14.6: A Rapid Prototyping
Development Process vs. SDLC
Agile Development
• Scrum Approach
• Practices and Predefined Roles
Contained in Scrum:
– The Scrum Master
– The Product Owner
– The Team
Tools for Systems
Development
• Prototyping
• Integrated computer-assisted
software engineering (CASE)
• Component-based development
• Object-oriented development
Integrated Computer-Assisted
Software Engineering (CASE)
Tools
• Upper CASE Tools
• Lower CASE Tools
• Integrated CASE (iCASE) Tools

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Description 1- Explain the role of MIS in customer relationship management (CRM). Accurately respond to and plan for the specific needs of an MIS project. 2-Describe technologies that underlie pervasive computing, providing examples of how businesses can utilize each one. Explain how the four major threats to wireless networks can damage a business. 3-Discuss the implications of laws governing the ethical uses of data, information, and knowledge in the context of selected business environments Accurately respond to and plan for the specific needs of an MIS project 4-Describe each phase of the business analytics process. Describe each of the various analytics tools and examples of their uses. Provide a definition and a use case example for descriptive analytics, predictive analytics, and prescriptive analytics. 5- Upon successful completion of this module, the student will be able to: Explain the attributes of data, information, and knowledge.CHAPTE R Introduction to Information Systems 1 1. Why Should I Study Information Systems? 2. Overview of Computer-Based Information Systems 3. How Does IT Impact Organizations? 4. Importance of Information Systems to Society 1. Identify the reasons why being an informed user of information systems is important in today’s world. 2. Describe the various types of computer-based information systems in an organization. 3. Discuss ways in which information technology can affect managers and non-managerial workers. 4. Identify positive and negative societal effects of the increased use of information technology. 1.1 Why Should I Study Information Systems • The Informed User – You! • IT Offers Career Opportunities • Managing Information Resources Reasons Why You Should Be An Informed User… 1. You will benefit more from your organization’s IT applications because you will understand what is “behind” those applications. 2. Your input can enhance your organization’s IT applications. 3. As you enter the workforce you can assist in selecting the IT applications your organization will use. Reasons Why You Should Be An Informed User (con’t)… 4. You will aware of both new information technologies and rapid developments in existing technologies. 5. You will understand how using IT can improve your organization’s performance. 6. If you are entrepreneurial minded, you can use IT to start your own business. IT Offers Career Opportunities • Chief Information Officer (CIO) • Substantial Demand for IT Staff – Programmers – Business Analysts – System Analysts – Designers • $130,000 is the median salary in 2015 for IS Managers (US Dept of Labor) IT Skills Open Many Doors Because IT Is So Widely Used Managing Information Resources • Managing information systems (IS) is difficult and complex • Contributing Factors: – Strategic value of IS’s – Acquiring, operating, and maintaining IS’s is very expensive – Evolution of the IS Function 1.2 Overview of Computer-Based IS’s • Data – Information – Knowledge • Computer-Based Information System (CBIS) • Types of Computer-Based Information Systems (CBIS) Data – Information – Knowledge Data versus Information versus Knowledge Components of a CBIS • Hardware • Software • Database • Network • Procedures • People Computer-Based Information Systems (CBIS) Types of Computer Based Information Systems (CBIS) • Breadth of Support for Information Systems (IS) • Support for Organizational Employees Breadth of Support for Information Systems (IS) • Functional Area Information Systems (FAIS) • Enterprise Resource Planning Systems (ERP) • Transaction Processing Systems (TPS) • Interorganizational Information Systems (IOS) • E-Commerce Systems Major Capabilities of Information Systems (Table 1.3) • Perform high-speed, high-volume numerical computations. • Provide fast, accurate communication and collaboration within and among organizations. • Store huge amounts of information in an easy-toaccess, yet small space. • Allow quick and inexpensive access to vast amounts of information, worldwide. • Analyze and interpret vast amounts of data quickly and efficiently. • Automate both semiautomatic business processes and manual tasks. Figure 1.5: IS that function among multiple organizations Support for Organizational Employees • Knowledge Workers • Office Automation Systems (OASs) • Business Intelligence (BI) Systems • Expert Systems (ES) • Dashboards Types of Organizational Information Systems (Table 1.4) 1.3 How Does IT Impact Organizations? • IT Impacts Entire Industries • IT Reduces the Number of Middle Managers • IT Change’s the Manager’s Job • Will IT Eliminate Jobs? • IT Impacts Employees at Work IT Impacts Entire Industries • Book Industry • Music Industry • Video Industry • Software Industry • Videogame Industry • Photography Industry • Marketing Industry IT Impacts Entire Industries (Continued) • Recruiting Industry • Financial Services Industry • Motion Picture Industry • Automotive Industry • Agriculture Industry • National Defense Industry • Fashion Industry IT Impacts Entire Industries (Continued) • Education • Legal Profession IT Impacts Employees at Work • IT Impacts Employees’ Health and Safety • IT Provides Opportunities for People with Disabilities Figure 1.6: Ergonomic products protect computer users. 1.4 Importance of IS to Society • IT Affects Our Quality of Life • The Robot Revolution is Here Now • Improvements in Healthcare CHAPTE R Organizational Strategy, Competitive Advantage, and Information Systems 2 1. Business Pressures, Organizational Responses, and Information Technology Support 2. Competitive Advantage and Strategic Information Systems 1. Identify effective IT responses to different kinds of business pressures. 2. Describe the strategies that organizations typically adopt to counter Porter’s five competitive forces. 2.1 Business Pressures, Organizational Responses, and IT Support • Business Pressures • Organizational Responses Business Pressures • Market Pressures • Technology Pressures • Societal/Political/Legal Pressures Figure 2.1: Business Pressures, Organizational Performance & Responses, and IT Support Market Pressures • Globalization • Changing Nature of the Workforce • Powerful Customers Technology Pressures • Technological Innovation and Obsolescence • Information Overload Societal/Political/Legal Pressures • Social Responsibility • Compliance with Government Regulations • Protection Against Terrorist Attacks • Ethical Issues Social Responsibility • IT Assists “Go Green” Efforts in Three Areas: 1. Facilities design and management 2. Carbon management 3. International and U.S. environmental laws • Digital Divide Organizational Responses • Strategic Systems • Customer Focus • Make-to-Order and Mass Customization • E-Business and E-Commerce 2.2 Competitive Advantage and Strategic IS’s • Porter’s Competitive Forces Model • Porter’s Value Chain Model • Strategies for Competitive Advantage • Business – Information Technology Alignment Porter’s Five Forces Model 1. The threat of new competitors 2. The bargaining power of suppliers 3. The bargaining power of customers (buyers) 4. The threat of substitute products or services 5. The rivalry among existing firms in the industry Figure 2.2: Porter’s Competitive Forces Model Porter’s Value Chain Model • Value Chain • Two Categories of Organization Activities in the Value Chain – Primary Activities – Support Activities Figure 2.3: Porter’s Value Chain Model Primary Activities • Inbound logistics • Operations • Outbound logistics • Marketing and sales • Services Support Activities • The Firm’s Infrastructure • Human Resources Management • Product and Technology Development • Procurement Strategies for Competitive Advantage 1. Cost leadership strategy 2. Differentiation strategy 3. Innovation strategy 4. Organizational effectiveness strategy 5. Customer orientation strategy Figure 2.4: Strategies for Competitive Advantage Business-Information Technology Alignment • Business–Information Technology Alignment • Six Characteristics of Excellent Business-IT Alignment: Six Characteristics of Excellent Business-IT Alignment 1. Organizations view IT as an engine of innovation that continually transforms the business, often creating new revenue streams. 2. Organizations view their internal & external customers & their customer service function as supremely important. 3. Organizations rotate business & IT professionals across departments and job functions. Six Characteristics of Excellent Business-IT Alignment (continued) 4. Organizations provide overarching goals that are completely clear to each IT and business employee. 5. Organizations ensure that IT employees understand how the company makes (or loses) money. 6. Organizations create a vibrant and inclusive company culture. CHAPTE R Data and Knowledge Management 3 1. Managing Data 2. The Database Approach 3. Big Data 4. Data Warehouses and Data Marts 5. Knowledge Management 1. Discuss ways that common challenges in managing data can be addressed using data governance. 2. Discuss the advantages and disadvantages of relational databases. 3. Define Big Data, and discuss its basic characteristics. 4. Explain the elements necessary to successfully implement and maintain data warehouses. 5. Describe the benefits and challenges of implementing knowledge management systems in organizations. 3.1 Managing Data • Difficulties of Managing Data • Data Governance The Difficulties of Managing Data •The amount of data increases exponentially over time •Data are scattered throughout organizations •Data are generated from multiple sources (internal, personal, external) –Clickstream Data •New sources of data The Difficulties of Managing Data (continued) •Data Degradation •Data Rot •Data security, quality, and integrity are critical •Legal requirements change frequently and differ among countries & industries Data Governance • Master Data Management • Master Data 3.2 The Database Approach • Data File • Database Systems Minimize & Maximize Three Things • The Data Hierarchy • The Relational Database Model Figure 3.1: Database Management System Database Management Systems (DBMS) Minimize: • Data Redundancy • Data Isolation • Data Inconsistency Database Management Systems (DBMS) Maximize: • Data Security • Data Integrity • Data Independence Data Hierarchy • Bit • Byte • Field • Record • Data File (Table) • Database Figure 3.2: Hierarchy of Data for a Computer-based File The Relational Database Model • Database Management System (DBMS) • Relational Database Model • Data Model • Entity • Instance • Attribute The Relational Database Model (continued) • Primary Key • Secondary Key • Foreign Key • Unstructured Data Figure 3.3: Student Database Example 3.3 Big Data • Defining Big Data • Characteristics of Big Data • Issues with Big Data • Managing Big Data • Putting Big Data to Use • Big Data Used in the Functional Areas of the Organization Defining Big Data • Gartner (www.gartner.com) • Big Data Institute Defining Big Data: Gartner • Diverse, high volume, high-velocity information assets that require new forms of processing to enable enhanced decision making, insight discovery, and process optimization. Defining Big Data: The Big Data Institute (TBDI) • Vast Datasets that: – Exhibit variety – Include structured, unstructured, and semistructured data – Generated at high velocity with an uncertain pattern – Do not fit neatly into traditional, structured, relational databases – Can be captured, processed, transformed, and analyzed in a reasonable amount of time only by sophisticated information systems. Big Data Generally Consist of the Following: • Traditional Enterprise Data • Machine-Generated/Sensor Data • Social Data • Images Captured by Billions of Devices Located Throughout the World Characteristics of Big Data • Volume • Velocity • Variety Issues with Big Data • Untrusted data sources • Big Data is dirty • Big Data changes, especially in data streams Managing Big Data • Big Data makes it possible to do many things that were previously impossible: – Spot business trends more rapidly and accurately – tracking the spread of disease – tracking crime – detecting fraud Managing Big Data (continued) • First Step: – Integrate information silos into a database environment and develop data warehouses for decision making. • Second Step: – making sense of their proliferating data. Managing Big Data (continued) • Many organizations are turning to NoSQL databases to process Big Data Putting Big Data to Use • Making Big Data Available • Enabling Organizations to Conduct Experiments • Micro-Segmentation of Customers • Creating New Business Models • Organizations Can Analyze Far More Data Big Data Used in the Functional Areas of the Organization • Human Resources • Product Development • Operations • Marketing • Government Operations 3.4 Data Warehouses and Data Marts • Describing Data Warehouses and Data Marts • A Generic Data Warehouse Environment Describing Data Warehouses and Data Marts • Organized by business dimension or Use online analytical processing (OLAP) • Integrated • Time variant • Nonvolatile • Multidimensional A Generic Data Warehouse Environment • Source Systems • Data Integration • Storing the Data • Metadata • Data Quality • Governance • Users Figure 3.4: Data Warehouse Framework Figure 3.5: Relational Databases Figure 3.6: Data Cube Figure 3.7: Equivalence Between Relational and Multidimensional Databases 3.5 Knowledge Management • Concepts and Definitions • Knowledge Management Systems • The KMS Cycle Concepts and Definitions • Knowledge Management • Knowledge • Explicit and Tacit Knowledge • Knowledge Management Systems • The KMS Cycle Figure 3.8: The Knowledge Management System Cycle CHAPTE R Telecommunications and Networking 4 1. What Is a Computer Network? 2. Network Fundamentals 3. The Internet and the World Wide Web 4. Network Applications: Discovery 5. Network Applications: Communication 6. Network Applications: Collaboration 7. Network Applications: Education 1. Compare and contrast the major types of networks. 2. Describe the wireline communications media and transmission technologies. 3. Describe the most common methods for accessing the Internet. 4. Explain the impact that discovery network applications have had on business and everyday life. 5. Explain the impact that communication network applications have had on business and everyday life. 6. Explain the impact that collaboration network applications have had on business and everyday life. 7. Explain the impact that educational network applications have had on business and everyday life. 4.1 What Is a Computer Network? • Computer Network • Bandwidth • Broadband • Local Area Networks • Wide Area Networks • Enterprise Networks Figure 4.1: Ethernet Local Area Network (LAN) Figure 4.2: Enterprise Network 4.2 Network Fundamentals • Communications Media and Channels • Network Protocols • Types of Network Processing Communications Media and Channels • Twisted-Pair Wire • Coaxial Cable • Fiber Optics Table 4.1: Advantages and Disadvantages of Wireline Communications Channels Communications Media: Twisted-Pair Wire Communications Media: Coaxial Cable Communications Media: Fiber Optics Network Protocols • Ethernet • Transmission Control Protocol / Internet Protocol (TCP/IP) Transmission Control Protocol / Internet Protocol • Three Basic Functions of TCP • Packets & Packet Switching • Four Layers of the TCP/IP Reference Model Three Basic Functions of the TCP 1. Manages the movement of data packets between computers by establishing a connection between the computers 2. Sequences the transfer of packets 3. Acknowledges the packets that have been transmitted Figure 4.7: Packet Switching Four Layers of the TCP/IP Reference Model 1. Application Layer 2. Transport Layer 3. Internet Layer 4. Network Interface Layer Figure 4.6: The Four Layers of the TCP/IP Reference Model Types of Network Processing • Client/Server Computing • Peer-to-Peer Processing 4.3 The Internet and the World Wide Web • Internet (“the Net”) • Accessing the Internet • The Future of the Internet • The World Wide Web Accessing the Internet • Connecting via an Online Service • Connecting via Other Means – Satellite – Google Fiber • Addresses on the Internet Table 4.2: Internet Connection Methods Future of the Internet • High User Demand = Reduced Performance in the Near Future • The Internet is unreliable and not secure. • Internet2 The World Wide Web (WWW) • World Wide Web • Hypertext • URL 4.4 Network Applications: Discovery • Search Engines and Metasearch Engines • Publication of Material in Foreign Languages • Portals Publication of Materials in Foreign Languages Affinity Portals 4.5 Network Applications: Communication • Electronic Mail • Web-Based Call Centers • Electronic Chat Rooms • Voice Communication – Voice Over Internet Protocol (VoIP) • Unified Communications • Telecommuting 4.6 Network Applications: Collaboration • Workgroup • Workflow • Virtual Group (Team) • Virtual Collaboration • Crowdsourcing • Electronic Teleconferencing and Video Conferencing Figure 4.11: Telepresence System 4.7 Network Applications: Educational • E-Learning • Distance Education – MOOC’s • Virtual Universities CHAPTE R Business Analytics 5 1. Managers and Decision Making 2. The Business Analytics Process 3. Business Analytics Tools 4. Business Analytics Models: Descriptive Analytics, Predictive Analytics, and Prescriptive Analytics 1. Use a decision support framework to demonstrate how technology supports managerial decision making at each phase of the decision-making process. 2. Describe each phase of the business analytics process. 3. Describe each of the various analytics tools and examples of their uses. 4. Provide a definition and a use case example for descriptive analytics, predictive analytics, and prescriptive analytics. • Business Analytics (BA) • Business Intelligence (BI) • BA versus BI 5.1 Managers and Decision Making • The Manager’s Job and Decision Making • Why Managers Need IT Support • A Framework for Computerized Decision Analysis The Manager’s Job and Decision Making • Management • Productivity • Three Basic Roles of Managers • Decision • Four Phases of Decision Making Three Basic Roles of Managers • Interpersonal Roles • Informational Roles • Decisional Roles Figure 5.1: The Process and Phases in Decision Making Why Managers Need IT Support • The number of alternatives is constantly increasing • Most decisions are made under time constraints • Increased uncertainty requires sophisticated analyses • Group decision making required without incurring major expenses A Framework for Computerized Decision Analysis • Problem Structure • The Nature of Decisions – Operational Control – Management Control – Strategic Planning • Decision Matrix Figure 5.2: Decision Support Framework 5.2 The Business Analytics Process Business analytics (BA): the process of developing actionable decisions or recommendations for actions based on insights generated from historical data. Business analytics examines data with a variety of tools and techniques, formulates descriptive, predictive, and prescriptive models, and communicates these results to organizational decision makers. Figure 5.3: The Business Analytics Process The Scope of Business Analytics • The Development of One or a Few Related Analytics Applications • The Development of Infrastructure to Support Enterprisewide Analytics • Support for Organizational Transformation 5.3 Business Analytics Tools • Excel • Multidimensional Analysis or Online Analytical Processing • Data Mining • Decision Support Systems Multidimensional Analysis or Online Analytical Processing • Online Analytical Processing • Multi-dimensional Analysis Data Mining • Two Basic Data Mining Operations – Predicting trends and behaviors – Identifying previously unknown patterns Data-Mining Applications Used in Business and Other Fields • Retailing and Sales • Banking • Manufacturing & Production • Insurance • Policework • Healthcare Data-Mining Applications Used in Business and Other Fields • Marketing • Politics • Weather • Higher Education • Social Good Decision Support Systems (DSS) • Sensitivity Analysis • What-If Analysis • Goal-Seeking Analysis 5.4 Business Analytics Models: Descriptive, Predictive, and Prescriptive Analytics • Descriptive Analytics • Predictive Analytics • Prescriptive Analytics • Presentation Tools Predictive Analytics: Examples… • Drive the coupons you receive at the grocery store register • Website predict which ads you will click on • President Obama was re-elected in 2012 with the help of voter prediction • Leading online dating companies match compatible individuals Predictive Analytics: Examples (Continued) • Automatic grading of student essays • Wireless carriers predict customer churn • Insurance companies predict body injury liability from car crashes • Better diagnosis of breast cancer • Predict the likelihood a convict will offend again Predictive Analytics: Examples (Continued) • Financial Service Firms produce credit scores • Predict sales based on which products are purchased together • Sentiment analysis Presentation Tools • Dashboards • Geographic Information Systems Table 5.1: The Capabilities of Dashboards Figure 5.3: Sample Performance Dashboard Figure 5.5: Bloomberg Terminal Figure 5.6: Management Cockpit CHAPTE R Information Security 7 1. Introduction to Information Security 2. Unintentional Threats to Information Systems 3. Deliberate Threats to Information Systems 4. What Organizations Are Doing to Protect Information Resources 5. Information Security Controls 1. Identify the five factors that contribute to the increasing vulnerability of information resources and specific examples of each factor. 2. Compare and contrast human mistakes and social engineering, along with specific examples of each one. 3. Discuss the 10 types of deliberate attacks. 4. Describe the three risk mitigation strategies and examples of each one in the context of owning a home. 5. Identify the three major types of controls that organizations can use to protect their information resources along with an example of each one. 7.1 Introduction to Information Security • Information Security • Threat • Exposure • Vulnerability • Five Key Factors Increasing Vulnerability • Cybercrime Five Key Factors Increasing Vulnerability 1. Today’s interconnected, interdependent, wirelessly networked business environment 2. Smaller, faster, cheaper computers and storage devices 3. Decreasing skills necessary to be a computer hacker 4. International organized crime taking over cybercrime 5. Lack of management support 7.2 Unintentional Threats to Information Systems • Human Errors • Social Engineering Figure 7.1 Security Threats Human Errors • Higher employee levels = higher levels of security risk • Most Dangerous Employees • Human Mistakes Dangerous Employees • Two organizational areas pose the greatest risk – Human Resources – Information Systems • Janitors and Guards Frequently Overlooked Human Mistakes • Carelessness with laptops • Carelessness with computing devices • Opening questionable e-mails • Careless Internet surfing • Poor password selection and use • Carelessness with one’s office Human Mistakes (continued) • Carelessness using unmanaged devices • Carelessness with discarded equipment • Careless monitoring of environmental hazards Table 7.1: Human Mistakes Social Engineering • Social Engineering: – an attack in which the perpetrator uses social skills to trick or manipulate legitimate employees into providing confidential company information such as passwords. 7.3 Deliberate Threats to Information Systems 1. Espionage or Trespass 2. Information Extortion 3. Sabotage or Vandalism 4. Theft of Equipment or Information 5. Identity Theft 6. Compromises to Intellectual Property 7.3 Deliberate Threats to Information Systems (continued) 7. Software Attacks 8. Alien Software 9. Supervisory Control and Data Acquisition Attacks 10. Cyberterrorism and Cyberwarfare 6. Compromises to Intellectual Property • Intellectual Property • Trade Secret • Patent • Copyright 7. Software Attacks: Three Categories 1. Remote Attacks Requiring User Action – Virus – Worm – Phishing Attack – Spear Phishing 7. Software Attacks: Three Categories (continued) 2. Remote Attacks Needing No User Action – Denial-of-Service Attack – Distributed Denial-of-Service Attack 7. Software Attacks: Three Categories (continued) 3. Attacks by a Programmer Developing a System – Trojan Horse – Back Door – Logic bomb 8. Alien Software • Adware • Spyware • Spamware • Spam • Cookies 7.4 What Organizations Are Doing to Protect Information Resources • Risk • Risk Management • Risk Analysis • Risk Mitigation Table 7.3: The Difficulties in Protecting Information Resources Risk Management Three Processes of Risk Management: 1. risk analysis 2. risk mitigation 3. controls evaluation Risk Analysis Three Steps of Risk Analysis 1. assessing the value of each asset being protected 2. estimating the probability that each asset will be compromised 3. comparing the probable costs of the asset’s being compromised with the costs of protecting that asset Risk Mitigation • Risk Acceptance • Rick Limitation • Risk Transference 7.5 Information Security Controls • Physical Controls • Access Controls • Communications Controls • Business Continuity Planning • Information Systems Auditing Figure 7.2: Where Defense Mechanisms are Located. Physical Controls • Walls • Doors • Fencing • Gates • Locks • Badges • Guards • Alarm Systems Access Controls • Authentication • Authorization – Something the user is (Biometrics) – Something the user has – Something the user does – Something the user knows Communications Controls • Firewall – Demilitarized Zone (DMZ) • Anti-malware Systems • Whitelisting • Blacklisting • Encryption • Virtual Private Network (VPN) Communications Controls (Continued) • Transport Layer Security (formerly called Secure Socket Layer) • Employee Monitoring Systems Figure 7.3: (a) Basic Firewall for Home Computer. (b) Organization with Two Firewalls and Demilitarized Zone Figure 7.4: How Public-key Encryption Works Figure 7.5: How Digital Certificates Work. Figure 7.6: Virtual Private Network (VPN) and Tunneling Business Continuity Planning • Business Continuity • Business Continuity Plan Information Systems Auditing • Internal Audits • External Audits • Three Categories of IS auditing procedures Three Categories of IS auditing procedures: • Auditing Around the Computer • Auditing Through the Computer • Auditing With the Computer CHAPTE R Social Computing 8 CHAPTER OUTLINE 1. Web 2.0 2. Fundamentals of Social Computing in Business 3. Social Computing in Business: Shopping 4. Social Computing in Business: Marketing 5. Social Computing in Business: Customer Relationship Management 6. Social Computing in Business: Human Resource Management 1. Describe six Web 2.0 tools and two major types of Web 2.0 sites. 2. Describe the benefits and risks of social commerce to companies. 3. Identify the methods used for shopping socially. 4. Discuss innovative ways to use social networking sites for advertising and market research. 5. Describe how social computing improves customer service. 6. Discuss different ways in which human resource managers make use of social computing. 8.1 Web 2.0 • Tagging – Folksonomies – Geotagging • Really Simple Syndication (RSS) • Blogs Figure 8.1: Web Site of National Public Radio with RSS Toolbar 8.1 Web 2.0 (continued) • Microblogging • Wikis • Social Networking Web Sites • Enterprise Social Networks • Mashups Figure 8.2: Google Maps is a Classic Example of a Mashup 8.2 Fundamentals of Social Computing in Business • Social Commerce • Benefits and Risks of Social Commerce • Collaborative Consumption Social Commerce: Benefits to Customers • Better and faster vendor responses to complaints (on Twitter, Facebook, and YouTube) • Customers can assist other customers (e.g., in online forums) • Customers’ expectations can be met more fully and quickly • Customers can easily search, link, chat, and buy while staying on a social network’s page Social Commerce: Benefits to Businesses • Can test new products and ideas quickly and inexpensively • Learn a lot about their customers • Identify problems quickly and alleviate customer anger • Learn about customers’ experiences via rapid feedback • Increase sales when customers discuss products positively on social networking site Social Commerce: Benefits to Businesses (Con’t) • Create more effective marketing campaigns and brand awareness • Use low-cost user-generated content, for example, in marketing campaigns • Obtain free advertising through viral marketing • Identify and reward influential brand advocates Table 8.2: Potential Benefits of Social Commerce Social Commerce: Risks • Companies concerned about negative posts • 80/20 rule – 80% of content is generated by 20% of users • Information Security Concerns • Invasion of Privacy • Violation of Intellectual Property and Copyright Social Commerce: Risks (Continued) • Employees’ Reluctance to Participate • Data Leakage of Personal Information or Corporate Strategic Information • Poor or Biased Quality of User Generated Content • Cyberbullying/Cyberstalking and Employee Harassment 8.3 Social Computing in Business: Shopping • Ratings, Reviews, and Recommendations • Group Shopping • Shopping Communities and Clubs • Social Marketplaces and Direct Sales • Peer-to-Peer Shopping Models Figure 8.3: Epinions is a Web site that allows customers to rate anything from cars to music. Figure 8.4: LivingSocial.com is a Popular Example of a Group Shopping Web Site. Figure 8.5: Etsy.com is a Social Marketplace for all Handmade or Vintage Items. 8.4 Social Computing in Business: Marketing • Social Advertising • Market Research – Conversational Marketing • Conducting Market Research Using Social Networks Figure 8.6: Customers Share Their Ideas and Feedback with Dell via IdeaStorm.com. 8.5 Social Computing in Business: Customer Relationship Management • How Social Computing Improves Customer Service 8.6 Social Computing in Business: Human Resource Management • Recruiting • Onboarding • Employee Development • Finding a Job CHAPTE 10 R Wireless, Mobile Computing, and Mobile Commerce 1. Wireless Technologies 2. Wireless Computer Networks and Internet Access 3. Mobile Computing and Mobile Commerce 4. The Internet of Things 1. Identify advantages and disadvantages of each of the four main types of wireless transmission media. 2. Explain how businesses can use short-range, medium-range, and long-range wireless networks. 3. Provide a specific example of how each of the five major m-commerce applications can benefit a business. 4. Describe the Internet of Things, along with examples of how organizations can utilize the Internet of Things. 10.1 Wireless Technologies • Wireless Devices – Dematerialization • Wireless Transmission Media • Wireless Security Wireless Devices Wireless Devices Provide Three Major Advantages: 1. Small enough to easily carry or wear 2. Sufficient computing power to perform productive tasks. 3. Can communicate wirelessly with the Internet and other devices. Figure 10.1: Dematerialization with Smartphones Wireless Transmission Media • Microwave • Satellite – Types of Orbits – Global Positioning Systems – Radio Wireless Transmission Media: Microwave • Advantages of Microware – High bandwidth – Relatively inexpensive • Disadvantages of Microwave – Must have unobstructed line of sight – Susceptible to environmental – interference Wireless Transmission Media: Satellite • Advantages of Satellite – High bandwidth – Large coverage area • Disadvantages of Satellite – Expensive – Must have unobstructed line of sight – Signals experience propagation delay – Must use encryption for security Table 10.1 Advantages & Disadvantages of Wireless Media Satellites • Three Types of Satellites Circling Earth 1. Geostationary-Earth-Orbit (GEO) 2. Medium-Earth-Orbit (MEO) 3. Low-Earth-Orbit (LEO) • Footprint • Propagation Delay • Internet over Satellite (IoS) Table 10.2: Three Basic Types of Telecommunications Satellites Figure 10.3: Obtaining GPS Information in an Automobile Wireless Transmission Media: Radio • Advantages of Radio – High bandwidth – Signals pass through walls – Inexpensive and easy to install • Disadvantages of Radio – Creates electrical interference problems – Susceptible to snooping unless encrypted 10.2 Wireless Computer Networks and Internet Access • Short-Range Wireless Networks • Medium-Range Wireless Networks • Wide-Area Wireless Networks Short-Range Wireless Networks • Bluetooth – Bluetooth 1.0 – Bluetooth 4.0 – Personal Area Network • Ultra-Wideband • Near-Field Communications Medium-Range Wireless Networks • Wireless Fidelity (Wi-Fi) • Wireless Mesh Networks Wireless Fidelity (Wi-Fi) • Wireless Access Point • Hotspot • IEEE Wi-Fi Standards • Major Benefits of Wi-Fi • Wi-Fi Direct • MiFi • Super Wi-Fi Major Benefits of Wi-Fi • Low cost • Ability to provide simple Internet access Wide-Area Wireless Networks • Cellular Radio • Generations of Cellular Technology Evolution • Wireless Broadband or WiMAX Generations of Cellular Technology Evolution • (1G) First generation • (2G) Second generation • 2.5G • (3G) Third generation • (4G) Fourth generation • (5G) Fifth generation Wireless Broadband or WiMAX • Worldwide Interoperability for Microwave Access (WiMAX) • WiMAX = IEEE Standard 802.16 • Wireless access range of up to 31 miles • Data transfer rate of up to 75 Mbps • A secure system offering voice and video Wireless Security • Four Major Challenges to Wireless Networks: – Rogue Access • Evil Twin Attack • Hotspotter – War Driving – Eavesdropping – Radio-Frequency (RF) Jamming 10.3 Mobile Computing and Mobile Commerce • Mobile Computing – Mobility – Broad Reach • Mobile Commerce • Mobile Commerce Applications Mobility and Broad Reach Mobility and Broad Reach Create Five Value-added Attributes: 1. Ubiquity 2. Convenience 3. Instant connectivity 4. Personalization 5. Localization of products and services Mobile Commerce Development of M-Commerce is Driven by: – Widespread availability of mobile devices – Declining prices – Bandwidth improvement Mobile Commerce Applications • Mobile Wallets • Location-Based Applications and Services • Mobile Advertising • Financial Services • Intrabusiness Applications • Accessing Information – Mobile Portal – Voice Portal • Telemetry Applications Mobile Wallets • Softcard • Google Wallet • Android Pay • MasterCard’s Contactless, American Express’s ExpressPay, and Visa’s PayWave • Apple Pay Location-Based Applications and Services • Location-Based Commerce (L-Commerce) • Benefits of Location-Based Services for Users • Benefits of Location-Based Services for Service Providers Benefits of Location-Based Services for Users: • Request the nearest business or service • Receive alerts • Find a friend • Locating taxis, service personnel, doctors, and rental equipment Benefits of Location-Based Services for Service Providers • Schedule fleets • Tracking objects such as packages and train boxcars • Find information such as navigation, weather, traffic, and room schedules • Targeting advertising • Automating airport check-ins Mobile Commerce Applications: Financial Services • Banking • Micropayments • Money Transfers • Wireless Mobile Wallets (M-Wallets) • Bill Payment Services Intrabusiness Applications Mobile Computing For Employee Support: • Workflow Applications • Dispatch Functions Accessing Information • Mobile Portals • Voice Portals Mobile Computing Applications: Telemetry • Identify maintenance problems in equipment • Monitor medical patients • Control medical equipment remotely • Remote vehicle diagnosis & preventive maintenance • Find My iPhone 10.4 The Internet of Things • Wireless Sensor Networks • Radio-Frequency Identification (RFID) • Examples of the Internet of Things in Use Radio-Frequency Identification (RFID) • RFID • Bar Codes • QR Codes Bar Codes Limitations of Bar Codes: • Requires line of sight from scanning device • Pose substantial problems in manufacturing plants, warehouses and shipping/receiving docks • Paper bar codes are easily damaged • Identifies the manufacturer and product but not the actual item QR Codes: Advantages Over Bar Codes • Store more information • Data types stored include numbers, text, URLs, and even Japanese characters. • Smaller because they store information both horizontally and vertically. • Read from any direction or angle • More resistant to damage RFID • RFID Systems • Two Basic Types of RFID Tags – Active RFID Tags – Passive RFID Tags The Internet of Things (IoT) • Capabilities of IoT • Examples of IoT Use Capabilities of IoT • Reducing waste, loss, and cost • Identifying the need for repair, replacement, or recall • Tracking expiration data on perishable items Examples of IoT Use • Smart Home • Healthcare • Automotive • Supply Chain Management • Environmental Monitoring • Energy Management • Agriculture • Transportation CHAPTE 11 R Information Systems within the Organization 1. Transaction Processing Systems 2. Functional Area Information Systems 3. Enterprise Resource Planning (ERP) Systems 4. ERP Support for Business Processes 1. Explain the purpose of transaction processing systems. 2. Explain the types of support that information systems can provide for each functional area of the organization. 3. Identify advantages and drawbacks to businesses implementing an enterprise resource planning system. 4. Describe the three main business processes supported by ERP systems. 11.1 Transaction Processing Systems • Transaction • Transaction Processing System (TPS) • Batch Processing • Online Transaction Processing (OLTP) Figure 11.1: How TPS Manage Data 11.2 Functional Area Information Systems • IS for Accounting and Finance • IS for Marketing • IS for Production/Operations Management • IS for Human Resource Management • Reports IS for Accounting and Finance • Financial Planning and Budgeting • Managing Financial Transactions • Investment Management • Control and Auditing Financial Planning and Budgeting • Financial and economic forecasting • Budgeting Managing Financial Transactions • Global stock exchanges • Managing multiple currencies • Virtual close • Expense management automation (EMA) Control and Auditing • Budgetary control • Auditing • Financial ratio analysis IS for Production/Operations Management (POM) • In-House Logistics and Materials Management • Inventory Management • Quality Control • Planning Production and Operations Management • Computer-Integrated Manufacturing • Product Lifecycle Management IS for Human Resource Management • Recruitment • Human Resources Development • Human Resources Planning and Management Three Areas of IT support in HR Planning and Management 1. Payroll and employees’ records 2. Benefits administration 3. Employee relationship management Figure 11.2: Systems supporting functional Areas Reports • Routine Reports • Ad-hoc (On-Demand) Reports – Drill-down reports – Key indicator reports – Comparative reports – Exception reports Monthly Sales Report 11.3 Enterprise Resource Planning (ERP) Systems • ERP II Systems • Benefits and Limitations of ERP Systems • Implementing ERP Systems • Enterprise Application Integration Core ERP Modules ERP II SYSTEM Manufacturing Accounting and Financial Module & Production Module Human Resources Module Suppliers Customers Supply Chain Management Module ERP Platform & Database Business Intelligence Module E-Business Module Extended ERP Modules Customer Relationship Management Module ERP Systems: Benefits • Organizational Flexibility and Agility • Decision Support • Quality and Efficiency ERP Systems: Limitations • Business Processes Predefined by Best Practices • Difficult to Implement • Potential for Failure Major Causes of ERP Implementation Failure • Failure to involve affected employees in planning and development • Attempting too much too fast • Insufficient training • Failure to perform proper data conversion and testing Implementing ERP Systems • On-Premise ERP Implementation • Software-as-a-Service (SaaS) ERP Implementation On-Premise ERP Implementation • Vanilla Approach • Custom Approach • Best of Breed Approach 11.4 ERP Support for Business Processes • The Procurement, Fulfillment, and Production Processes • Interorganizational Processes: ERP with SCM and CRM The Procurement, Fulfillment, and Production Processes • Procurement Process • Order Fulfillment Process • Production Process Figure 11.4: Departments & Documents Flow in Procurement Figure 11.5: Departments & Documents Flow in Fulfillment Figure 11.6: Departments & Documents Flow in Production Figure 11.7: Integrated Processes with ERP Systems Interorganizational Processes: ERP with SCM and CRM • Enterprise Resource Planning (ERP) Supply Chain Management (SCM) Systems • Enterprise Resource Planning (ERP) Customer Relationship Management (CRM) Systems CHAPTE 12 R Customer Relationship Management 1. Defining Customer Relationship Management 2. Operational Customer Relationship Management 3. Other Types of Customer Relationship Management Systems 1. Identify the primary functions of both customer relationship management (CRM) and collaborative CRM strategies. 2. Describe how businesses might utilize applications of each of the two major components of operational CRM systems. 3. Explain the advantages and disadvantages of mobile CRM systems, on-demand CRM systems, open-source CRM systems, social CRM systems, and real-time CRM systems. 12.1 Defining Customer Relationship Management • Customer Touch Points • Data Consolidation Figure 12.1: CRM Process Figure 12.2: Customer Touchpoints 12.2 Operational Customer Relationship Management System • Customer-Facing Applications • Customer-Touching Applications Customer Facing Applications • Customer Service and Support • Sales Force Automation • Marketing • Campaign Management Customer Facing Applications: Customer Service & Support • Customer Interaction Centers (CIC) • Call Center • Oubound Telesales • Inbound Teleservice • Information Help Desk • Live Chat Customer Facing Applications: Sales Force Automation • Contact Management System • Sales Lead Tracking System • Sales Forecasting System • Product Knowledge System • Configurator Customer Facing Applications: Marketing • Data Mining • Cross-Selling • Upselling • Bundling Customer Facing Applications: Campaign Management • Campaign Planning – Right messages – Right people – Right channels – Marketing communications opt-out Customer Touching Applications • Search & Comparison Capabilities • Technical and Other Information and Services • Customized Products and Services • Mass Customization • Personalized Web Pages • Frequently Asked Questions (FAQs) • E-mail and Automated Response • Loyalty Programs Figure 12.3: Relationship Between Operational CRM & Analytical CRM 12.3 Other Types of Customer Relationship Management Systems • On-Demand CRM Systems • Mobile CRM Systems • Open-Source CRM Systems • Social CRM • Real-Time CRM Open-Source CRM Systems • Benefits of Open-Source CRM Systems • Disadvantages of Open-Source CRM Systems • Examples Open-Source CRM Systems: Benefits • Favorable pricing • Wide variety of applications • Easy to customize • Updates and bug (software error) fixes rapidly distributed • Extensive support information available for free Open-Source CRM Systems: Disadvantages • Risk related to quality control • Company’s IT platform must match development platform of opensource CRM system Open-Source CRM Systems: Examples • SugarCRM – (www.sugarcrm.com) • Concursive – (www.concursive.com) • Vtiger – (www.vtiger.com) Social CRM • Provides two-way communication between organization & customers • Organizations monitor social media sites and respond accordingly • Customers obtain faster, better customer service Real-Time CRM Organizations are implementing real-time customer relationship management in order to provide a superior level of customer satisfaction for today’s always-on, alwaysconnected, more knowledgeable, and less loyal customers CHAPTE 13 R Supply Chain Management 1. Supply Chains 2. Supply Chain Management 3. Information Technology Support for Supply Chain Management 1. Describe the three components and the three flows of a supply chain. 2. Identify popular strategies to solving different challenges of supply chains. 3. Explain the utility of each of the three major technologies that support supply chain management. 13.1 Supply Chains • Supply Chain • Supply Chain Visibility The Structure and Components of Supply Chains • Three Segments of the Supply Chain • Tiers of Suppliers • The Flows of the Supply Chain Three Segments of the Supply Chain • Upstream • Internal • Downstream Three Flows of the Supply Chain 1. Material Flows – Reverse Flows 2. Information Flows 3. Financial Flows 13.2 Supply Chain Management (SCM) • Five Basic Components of SCM • Supply Chain Management Systems • The Push Model Versus the Pull Model • Problems Along the Supply Chain • Solutions to Supply Chain Problems Five Basic Components of SCM 1. Plan 2. Source 3. Make 4. Deliver 5. Return The Push Model Versus the Pull Model Problems Along the Supply Chain Two Primary Sources of Problems Along the Supply Chain: 1. Uncertainties 2. The need to coordinate multiple activities, internal units, and business partners. • Demand Forecast • Bullwhip Effect Figure 13.2: The Bullwhip Effect Solutions to Supply Chain Problems Using Inventories to Solve Supply Chain Problems – Vertical Integration – Just-In-Time Inventory – Information Sharing – Vendor-Managed Inventory (VMI) 13.3 IT Support for Supply Chain Management • Electronic Data Interchange (EDI) • Extranets • Portals and Exchanges Electronic Data Interchange (EDI): Benefits • Minimizes data entry errors • Length of the message can be shorter • Messages are secured • Reduces cycle time • Increases productivity • Enhances customer service • Minimizes paper usage and storage Electronic Data Interchange (EDI): Disadvantages • Business processes sometimes must be restructured to fit EDI requirements • Many EDI standards in use today Figure 13.3: Purchase Order Fulfillment without EDI Figure 13.3: Purchase Order Fulfillment with EDI Extranet • A Company and Its Dealers, Customers, or Suppliers • Industry Extranet • Joint Ventures and Other Business Partnerships Figure 13.4: The Structure of an Extranet Portals and Exchanges • Procurement Portal • Distribution Portal CHAPTE 14 R Acquiring Information Systems and Applications 1. Planning for and Justifying IT Applications 2. Strategies for Acquiring IT Applications 3. Traditional Systems Development Life Cycle 4. Alternative Methods and Tools for Systems Development 1. Discuss the different cost–benefit analyses that companies must take into account when formulating an IT strategic plan. 2. Discuss the four business decisions that companies must make when they acquire new applications. 3. Enumerate the primary tasks and the importance of each of the six processes involved in the systems development life cycle. 4. Describe alternative development methods and the tools that augment these methods. 14.1 Planning for and Justifying IT Applications • IT Planning • Evaluation and Justifying IT Investment: Benefits, Costs, and Issues Figure 14.1: The IS Planning Process IT Planning • Organizational Strategic Plan • IT Strategic Plan • IT Steering Committee • IS Operational Plan IT Strategic Plan Three Objectives of an IT Strategic Plan: – Must be aligned with the organization’s strategic plan – Provide for an IT architecture – Efficiently allocate IS development resources IT Steering Committee Major Tasks of an IT Steering Committee – Link corporate strategy with IT strategy – Approve the allocation of resources for the MIS function – Establish performance measures for the MIS function and ensure they are met IS Operational Plan Elements of an IS Operational Plan: – Mission – IS Environment – Objectives of the IS Function – Constraints on the IS function – Application Portfolio – Resource Allocation and Project Management Evaluation and Justifying IT Investment: Benefits, Costs, and Issues • Assessing the Costs • Assessing the Benefits • Conducting the Cost-Benefit Analysis Conducting the Cost-Benefit Analysis Four Common Approaches for CostBenefit Analysis: • Net Present Value • Return on Investment (ROI) • Breakeven Analysis • Business Case Approach 14.2 Strategies for Acquiring IT Applications • Fundamental Decisions • Acquisition Methods • Purchase a Prewritten Application • Customize a Prewritten Application • Lease the Application • Application Service Providers and Software-as-a-Service Vendors 14.2 Strategies for Acquiring IT Applications (Continued) • Use Open-Source Software • Outsourcing • Continuous Development • Employ Custom Development Fundamental Decisions • How much computer code does the company want to write? • How will the company pay for the application? • Where will the application run? • Where will the application originate? Table 14.1: Advantages & Disadvantages of Buy Option Figure 14.2: Operation of an ASP Figure 14.3: Operation of a SaaS Vendor 14.3 The Traditional Systems Development Life Cycle • Systems Development Life Cycle (SDLC) 1. Systems Investigation 2. Systems Analysis 3. Systems Design 4. Programming and Testing 5. Implementation 6. Operations and Maintenance Figure 14.4: A six-stage SDLC with Supporting Tools Figure 14.5: Comparison of user & Developer Involvement Over the SDLC Table 14.2: Advantages and Disadvantages of System Acquisition Methods Table 14.2: Advantages and Disadvantages of System Acquisition Methods (Continued) Table 14.2: Advantages and Disadvantages of System Acquisition Methods (Continued) Table 14.2: Advantages and Disadvantages of System Acquisition Methods (Continued) Table 14.2: Advantages and Disadvantages of System Acquisition Methods (Continued) Table 14.2: Advantages and Disadvantages of System Acquisition Methods (Continued) Table 14.2: Advantages and Disadvantages of System Acquisition Methods (Continued) SDLC: Systems Investigation • Three Basic Solutions • Feasibility Study • Go / No Go Decision Systems Investigation: Three Basic Solutions 1. Do nothing and continue to use the existing system unchanged 2. Modify or enhance the existing system 3. Develop a new system. Systems Investigation: Feasibility Study • Technical Feasibility • Economic Feasibility • Behavioral Feasibility SDLC: Systems Analysis The process whereby systems analysts examine the business problem that the organization plans to solve with an IS. • Deliverable: – A set of system requirements (or User Requirements) SLDC: Systems Design Describes how the system will resolve the business problem. • Deliverable: – a set of technical system specifications. • Scope Creep Systems Design: Technical Specifications • Technical Specifications include following: – System outputs, inputs, and user interfaces – Hardware, software, databases, telecommunications, personnel, and procedures – A blueprint of how these components are integrated SDLC: Programming and Testing • Programming • Testing SDLC: Implementation • Implementation • Three Major Conversion Strategies – Direct – Pilot – Staged SDLC: Operations & Maintenance Systems Require Several Types of Maintenance: • Debugging • Updating • Adding 14.4 Alternative Methods and Tools for Systems Development • Joint Application Development • Rapid Application Development • Agile Development • End-User Development • Tools for Systems Development Figure 14.6: A Rapid Prototyping Development Process vs. SDLC Agile Development • Scrum Approach • Practices and Predefined Roles Contained in Scrum: – The Scrum Master – The Product Owner – The Team Tools for Systems Development • Prototyping • Integrated computer-assisted software engineering (CASE) • Component-based development • Object-oriented development Integrated Computer-Assisted Software Engineering (CASE) Tools • Upper CASE Tools • Lower CASE Tools • Integrated CASE (iCASE) Tools Purchase answer to see full attachment

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