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128 Cards in this Set
- Front
- Back
Business Objectives of Information Systems
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Use Information Systems to Achieve six major objectives: 1. Operational Excellence. 2. New products, services, and business models. 3. Customer / Supplier Intimacy. 4. Improved Decision Making. 5. Competitive Advantage. 6. Day to Day Survival
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What is an information system and the mechanism for transforming data into information
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IS: a set of interrelated components that collect, process, store, and distribute information to support decision making, coordinating and control in an organization. INPUT > PROCESSING > OUTPUT
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Dimensions of the information system from a socio-technical systems description
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IS is useless without skilled people to build and maintain them, and without those who can understand how to use the system to achieve the objectives. People are the only ones able to problem solve and convert information to solutions.
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Are information systems flexible?
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Yes, the infrastructure provides the foundation on which the firm can build its specific information systems. Each organization must design and manage its information technology infrastructure so that it has the set of technology services it needs for the work it wants to accomplish. Ultimately, an effective IS is created through a combination of people, organization, and technology elements.
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Problem Solving Approach
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1) Problem Identification: Understanding what kind of problem is being presented, identifying people, organization and technology factors. 2) Solution design: designing several alternative solutions to the problem that has been identified. 3)Evaluation and choice: selecting the best solution, taking into account its cost and the available resources and skills in the business. 4)Implementation: purchasing or building hardware and software, testing the software, providing training and document, managing change as the system is introduced, measuring outcome. Also requires critical thinking in which one suspends judgement to think of other options.
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Business Process
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the unique ways in which orgs coordinae and organize work activities, information, and knowledge to produce a product or service
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Management Information Systems
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the study of information systems focusing on their use in business and management
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Computer literacy
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knowledge of IT, focusing on understanding of how computer-based technologies work
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Data Management Technology
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the software that governs the organization of data on physical storage media
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Intranet
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internal networks based on inernet and www technology and standards
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Information technology infrastructure
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computer hardware, software, data, storage technology, and networks providing a portfolio of shared IT resources for the organizaion
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Extranet
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private intranets that are accessible to authorized outsiders
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Network
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linking of two or more computers to share data or resources, such as a printer
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Information systems literacy
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broad-based understanding of information systems that includes behavioral knowledge about organizations and individuals using information information systems as well as technical knowledge about computers
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Information
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Data that has been shaped into a form that is meaningful and useful to human beings
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TPS
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transaction processing systems- operational managers
• Computerized system that performs and records the daily routine transactions necessary to conduct business, such as a sales order entry, payroll, etc. • Principal purpose is to answer routine questions and to track the flow of transactions through the organization • Managers need TPS to monitor the status of internal operations and the firm’s relations with the external environment • TPS are also major producers of information for the other systems and business functions |
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MIS
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management information systems- middle management
• Provides middle managers with reports on the organization’s current performance, this information is used to monitor and control the business and predict future performance • Summarize and report on the company’s basic operations using data from the TPS • MIS generally provide answers to routine questions that have been specified in advance and have a predefined procedure for answering them |
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DSS
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Decision-support systems-middle management
• Support non-routine decision making for middle management, focus on helping users make a better decision • Focus on problems that are unique and rapidly changing, procedure for finding a solution may not be predefined • Uses internal information from TPS and MIS, but also brings in information from external sources • Condense large amount of data into a form which decision makers can analyze them • Designed so that users can work with them directly, user friendly |
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ESS
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Executive Support system- senior management
• Addresses non- routine decisions requiring judgment, evaluation, and insight because there is no agreed-on procedure for arriving at a solution • Presents graphs and data, through a portal which uses a Web interface to present integrated personalized business content • Designed to incorporate data about external events, but also draw summarized information from internal MIS and DSS • Information presented on a digital dashboard- displays on a single screen graphs and charts of key performance indicators for managing a company |
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Different types of systems (4)
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TPS, MIS, DSS, ESS
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Enterprise Applications
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Systems that span functional areas, focus on executing business processes across the business firm, and include all levels of management.
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Why are enterprise applications helpful?
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• Help businesses become more flexible and productive by coordinating their business processes more closely and integrating groups of processes so they focus on efficient management of resources and customer service
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4 types of Enterprise Applications
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Enterprise system (ERP Systems), Supply Chain Management Systems (SCM), Customer Relationship Manager (CRM), Knowledge Management Systems (KMS)
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Enterprise System (ERP)
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Integrate business processes in manufacturing and production, finance and accounting, sales and marketing, and human resources into a single software system
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Supply Chain Management Systems (SCM)
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Help manage relationships with their suppliers
Objective is to get the right amount of products from source to point of consumption in least amount of cost and time |
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Customer Relationship Manager (CRM)
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coordinates the business process surround his final customer
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Knowledge Management Systems (KMS)
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Enables organizations to better manage processes for capturing and applying knowledge and experise, collect all knowledge and experience of firm and make available wherever and whenever it is needed, and also link firm to external sources of knowledge.
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E-Business vs. E-Commerce vs. E-Government
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• E-business: use of digital technology and Internet to execute the major business processes in the enterprise, both internally and with suppliers or business partners
• E-commerce: part of e-business that deals with the buying and selling of goods and services over the Internet, also encompasses activities supporting those market transactions, such as, advertising, marketing, customer support, security, delivery and payment • E-government: refers to the application of the Internet and networking technologies to digitally enable government and public sector agencies’ relationships with citizens, businesses and other parts of the government. Makes government operations more efficient and empower its citizens by given them easier access to information and the ability to network electronically with other citizens |
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CIO
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(chief information officer)- Senior manager in charge of the information systems function in the firm
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CRM
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(customer relationship management systems)- Information systems that track all the ways in which a company interacts with its customers and analyze these interactions to optimize revenue, profitability, customers satisfaction, and customer retention
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Knowledge Management
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The set of processes developed in an organization to create, gather, store, maintain and disseminate the firm’s knowledge
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Supply Chain Management (SCM) Chain
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Information systems that automate the flow of information between a firm and its suppliers in order to optimize the planning, sourcing, manufacturing, and delivery of products and services
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Transaction processing system
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Computerized systems that perform and record the daily routine transactions necessary to conduct businesses; they serve the organization’s operational level
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Programmer
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Highly trained technical specialists who write computer software instructions
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End User
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Representatives of departments outside the information systems group for whom applications are developed
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Inter-organizational system
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Information systems that automate the flow of information across organizational boundaries and link a company to its customers, distributors or suppliers
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Systems analyst
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Specialists who translate business problems and requirements into information requirements and systems, acting as liaison between the information systems department and the rest of the organization
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Enterprise Application and types of systems
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Systems that can coordinate activities, decisions, and knowledge across many different functions, levels, and business units in a firm. Include enterprise systems, (coordinate key internal processes of firm), SCM systems, CRM systems, and knowledge management systems
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Porter's Model
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5 forces of competition
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How can information systems help companies compete with others?
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They maintain low costs, differentiate products, focus on market niches, strengthen ties with customers and supplies, and increase barriers o market entry with high levels of operational excellence.
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When are ISs most successful?
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when the technology is aligned with the business objectives.
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How has the internet changed how firms do business?
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1. Because Internet technology is based on universal standards anyone can use, it makes it easy for rivals to compete on price alone and for new competitors to enter the market.
2. It raises the bargaining power of customers/suppliers because they can easily find the lowest price online. 3. It widens the geographic market, increasing competitors, and reducing differences between. But it also creates new opportunities for building brands and building large customer bases. 5. Drastically cut the costs of operating on a global scale |
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Management Decision Problems
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organizations have to change their business processes in order to execute their business strategy successfully. Problems include: repetitive and redundant work, in quality, service, and speed.
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Benchmarking
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Companies achieve quality by using benchmarking to set strict standards for their products, services, and other activities, and then measuring performance against those standards.
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Business Process Reengineering
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Radical re-thinking and redesign of business processes. Can lead to drastic increases in productivity and efficiency; however, the change can be too far-reaching, making it hard for the employee transition.
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Computer Aided Design
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it automates the creation and revision of designs, using computers and sophisticated graphics software. The software allows users to create a digital model of a part, a product, or a structure, and make changes to the design on the computer without having to build physical prototypes.
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Network economics
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Business models based on a network helping firms strategically. In traditional economics, production experiences diminishing returns. However, the more people in a network-based business, the marginal costs are about zero while the gain is much larger.
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Total Quality Management
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Making quality the responsibility of all people and functions within the organization. TQM holds that the achievement of quality control is an end in itself.
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Six Sigma
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a specific measure of quality. Most companies use six sigma as a goal to implement a set of methodologies and techniques for improving quality and reducing costs.
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Value Web
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a collection of independent firms that use information technology to coordinate their value chains to produce a product or service for a market collectively. It synchronize the business processes of customers, suppliers, and trading partners among different companies in an industry or in related industries.
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Workflow Management
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workflow management system is a computer system that manages and defines a series of tasks within an organisation to produce a final outcome or outcomes. Workflow Management Systems allow you to define different workflows for different types of jobs or processes
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Product Differentiation
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Use information systems to enable new products and service or grealy change customer convenience in using your existing products and services. And also use it to create products and services that are customized and personalized to fit customer needs.
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Two components of infrastructure
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Computer hardware and computer software
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Computer Hardware
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consists of technology for computer processing, data storage, input, and output. This component includes large mainframes, servers, desktop and laptop computers, and mobile devices for accessing cooperate data and the Internet. IT includes equipment for gathering and inputting data, physical media for storing the data and devices for delivering the processed information as output.
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Computer Software
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System software manages the resources and activities of the computer. Application software applies the computer to a specific task for an end user, such as processing an order or generating a mailing list.
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Most important issues you will face when managing hardware and software technology
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capacity and scalability; determining the total cost of technology assets; determining whether to own and maintain your own hardware, software, and other infrastructure components or lease them; and managing mobile platforms and software localization.
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Application Service Provider
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is a business that provides computer-based services to customers over a network. Software offered using an ASP model is also sometimes called On-demand software or software as a service
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Capacity planning
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process of predicting when a computer hardware system becomes saturated. considers factors such as max number of users that the system can accommodate, impact of existing or future software applications.
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Centralized Processing
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processing is accomplished by one large central computer.
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Client/Server computing
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a type of distributed processing. processing clients and servers on the same network, but each machine is assigned functions it is best suited to perform.
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Distributed processing
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use of multiple computers linked by communications network for processing
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On-demand computing
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firms can purchase their computing services from remote providers and pay only for the amount of computing power they can actually use.
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Outsourcing
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contract with an external service provider to run their computer center and networks, to develop new software, or to manage all components of their IT infrastructures.
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Open source software
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providing all computer users with free access to its program code, so they can modify the code to fix errors or to make improvements
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Scalability
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the ability of a computer, product, or system to expand to serve a large number of users without breaking down.
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Web service
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refer to a set of loosely coupled software components that exchange information with each other using universal Web communication standards and languages
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TCP/IP Connectivity
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Universal and standard.
Developed during the early 1970’s to support U.S. Department of Defense Advanced Research Projects Agency (DARPA) efforts to help scientists transmit data among different types of computers over long distances. Uses TCP to handle movement of data between computers and IP to deliver packets during transmission. The reference model for TCP/IP reference model contains four layers: Application layer, Transport Layer, Internet Layer, and the Network Interface Layer. Data sent from one computer to the other passes downward through all four layers and reach the recipient computer. Then the data travel up the layers and are reassembled into a format the receiving computer can use. Allows two computers to communicate even if they are based on different hardware and software programs. |
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Types of physical transmission cables
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Twisted Wire, Coaxial Cable, Fiber Opitics, Wireless
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Twisted Wire Transmission
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consists of strands of copper wire twisted in pairs and is an older type of transmission medium. Can be used for analog or digital communication. Can obtain speeds up to 1 Gbps.
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Coaxial Cable
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consists of thickly insulated copper wire, which can transmit a larger volume of data than twisted wire. Has speeds up to 1 Gbps.
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Fiber Optics
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Fiber-optic cable consists of bound strands of clear glass fiber, each the thickness of a human hair. Transfers data by transforming them into pulses of light, which are sent by laser devices. Provides download speeds up to 50 Mbps.
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Wireless
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based on radio signals of various frequencies. Microwave systems transmit high-frequency radio signals through the atmosphere and are used for high volume, long distance, point to point communication. Cellular systems use radio waves and other protocols to communicate with radio antennas placed within adjacent geographic areas called cells. System used with cell phones.
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Transmission Speed
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bps=bits per second. Hertz=a cycle or signal change of the medium (how bits are transmitted). One cycle equals hertz. The bandwidth is the range of frequencies that can be accommodated on a particular telecommunications channel.
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Types / Uses for wireless transmission
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o Cellular systems, Bluetooth, Wi-Fi, WiMax are all forms of wireless internet use or mediums of communication. Radio frequency identification systems, which allows for the tracking of the movement of goods through the supply chain, and wireless sensor networks, which are networks of interconnected wireless devices that are embedded into the physical environment to provide measurements of many points over large spaces, are also having major impacts on the shipping and security sectors, respectively.
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Bandwidth
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the capacity of a communications channel as measured by the difference between the highest and lowest frequencies that can be transmitted by that channel
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Hertz
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measure of frequency of electrical impulses per second, with 1 Hertz equivalent to 1 cycle per second
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Broadband
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high-speed transmission technology. Also designates a single communications medium that can transmit multiple channels of data simultaneously
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Modem
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a device for translating a computer’s digital signals into analog form for transmission over ordinary telephone lines, or for translating analog signals back into digital form for reception by a computer.
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Domain Name
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English-like name that corresponds to the unique 32-bit numeric Internet Protocol (IP) address for each computer connected to the Internet.
IP address- four-part numeric address indicating a unique computer location on the Internet |
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Domain Name Server (DNS)
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a hierarchical system of servers maintaining a database enabling the conversion of domain names to their numeric IP addresses.
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TCP/IP
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dominant model for achieving connectivity among different networks. Provides a universally agreed-on method for breaking up digital messages into packets, routing them to the proper addresses, and then reassembling them into coherent messages
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Groupware
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a collaborative software system with capabilities that allow each participant to see and display information from others and other activities.
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VoIP
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voice over IP. Facilities for managing the delivery of voice information using the Internet Protocol (IP)
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WiFi
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Standards for Wireless Fidelity and refers to the 802.11 family of wireless networking standards
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RFID
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radio frequency identification. Technology using tiny rags with embedded microchips containing data about an item and its location to transmit short-distance radio signals to special RFID readers that then pass the data on to a computer for processing.
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System Vulnerability
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o When data are stored in electronic form, they are vulnerable to many threats. Through communications networks, information systems in different locations are interconnected, which means the potential for unauthorized access, abuse, or fraud is not limited to a single location but can occur at any access point in the network. Threats can stem from technical, organizational, and environmental factors compounded by poor management decisions. Criminal acts, software failure, natural disasters, and the increasing use of portable technologies all increase system vulnerabilities.
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HIPAA
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o All firms in the healthcare industry are now forced to comply with HIPAA which outlines medical security and privacy rules and procedures for simplifying the administration of healthcare billing and automating the transfer of healthcare data between healthcare providers, payers, and plans. Members must retain patient info for six years and ensure confidentiality. Also specifies privacy, security and electronic transactions standards for handling patient info.
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Gramm-Leach Billey Act
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Firms in financial services need to comply with the Financial Services Modernization Act of 1999, or the Gramm-Leach Billey Act. This requires financial institutions to ensure the security and confidentiality of customer data. Data must be stored on a secure medium, and special security measures must be enforced.
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Public Company Accounting Reform and Investor Protection Act of 2002, aka the Sarbanes-Oxley Act
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Publicly traded companies must comply with the Public Company Accounting Reform and Investor Protection Act of 2002, aka the Sarbanes-Oxley Act. This was designed to protect investors after financial scandals at various public companies. It imposes responsibility of companies and their management to safeguard the accuracy and integrity of financial information that is used internally and released externally.
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AUP
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An acceptable use policy (AUP) defines acceptable uses of the firm’s information resources and computing equipment. Authorization policies determine differing levels of access to information assets for different levels of users. Authorization management systems establish where and when a user is permitted to access certain parts of a Web site or a corporate database.
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Disaster Recovery Planning
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o Planning for events that prevent information systems and the business from operating is called disaster recovery planning. This devises plans for the restoration of computing and communications services after they have been disrupted. Focus primarily on technical issues involved in keeping systems up and running.
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What tools and technologies are there that protect information resources?
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Access control (tokens, smart cards, biometric authentication), and firewalls, which are a combination of hardware and software that controls the flow of incoming and outgoing network traffic. Intrusion detection systems, antivirus software, and unified threat management systems, all make connecting to the internet safe.
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What secures wireless networks?
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Secure Sockets Layer (SSL) and Secure Hypertext Transfer Protocol (S-HTTP) and digital certificates
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Authentication
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the ability of each party in a transaction to ascertain the identity of the other party
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Token
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physical device, similar to an identification card that is designed to prove the identity of a single user
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Denial of service attacks
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DoS attacks. Flooding a network server or Web server with false communications or requests for services in order to crash the network
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Social Engineering
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tricking people into revealing their passwords by pretending to be legitimate users or members of a company in need of information
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Fault tolerant computer systems
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systems that contain extra hardware, software, and power supply components that can back a system up and keep it running to prevent system failure
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Spoofing
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misrepresenting one’s identity on the Internet or redirecting a Web link to an address different from the intended one, with the site masquerading as the intended destination
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MIS Audit
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identifies all the controls that govern individual information systems and assesses their effectiveness
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Trojan Horse
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a software program that appears legitimate but contains a second hidden function that may cause damage.
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PKI
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public key infrastructure. system for creating public and private keys using a certificate authority (CA) and digital certificates for authenication.
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War driving
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an eavesdropping technique in which eavesdroppers drive by buildings or park outside and try to intercept wireless network traffic
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Supply Chain
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network of organizations and business processes for procuring raw materials, transforming these materials into intermediate and finished products, and distributing the finished products to customers
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Why are supply chain management systems helpful?
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o Enables a company to model its existing supply chain, generate demand forecasts for products, and develop optimal sourcing and manufacturing plans
o They help companies make better decisions about amounts to manufacture, amount of inventory to have, and identifying how to transport goods o Manage the flow of products through distribution centers and warehouses to ensure that products are delivered to the right locations in the most efficient manner o Reduce supply chain costs and help increase sales |
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Customer Relationship Management
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o Capture and integrate customer data from all over the organization, consolidate the data, analyze the data, and distribute the results to various systems throughout the company
o Provide a single enterprise view of a customer that is useful for improving sales and customer service. They also provide the customer with a single view of the company regardless of the touch point they use |
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Upstream
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portion of the supply chain that includes the company’s suppliers and supplier’s suppliers and the processes for managing relationships with them
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Downstream
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portion of the supply chain that consists of organizations and processes for distributing and delivering products to the final customers
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Just in Time Strategy
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components would arrive exactly at the moment they were needed and finished goods would be shipped as they left the assembly line. Requires companies to have perfect information
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Bullwhip Effect
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information about the demand for a product gets distorted as it passes from one entity to the next across the supply chain. As small change by one entity affects all the others and often becomes magnified
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Push-based Model
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production master schedules are based on forecasts or best guesses of demand for products and products are pushed to customers
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Pull-Based Model
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actual customer orders or purchases trigger events in the supply chain (more current model)
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Touch Point
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method of interaction with the customer (ex: phone, customer svc desk, retail store)
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Churn Rate
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number of customers who stop using or purchasing products from the company
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Operational CRM
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customer facing applications, such as tools for sales force automation, call center and customer svc support, and marketing automation
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Analytical CRM
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applications that analyze customer data generated by operational CRM applications to provide info for improving business processed
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Ethical Issues in IT
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o Information rights and obligations, property rights and obligations, system quality, quality of life, and accountability and control
o As computing power doubles and becomes more complex and the cost of data storage declines, this allows companies to keep detailed profiles of customers: violation of individual privacy? o The rise of the internet has brought with it concerns about privacy |
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Non Obvious Relationship Awareness (NORA)
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takes information from different and unrelated sources and compiles it to look for hidden links that indicate criminal or terrorist activity
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Fair Information Practices
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set of principles governing the collection and use of information about individuals
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Cookies
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small text files deposited on a computer hard drive when a user visits a website. When the user revisits the website that cookie will see what the user has visited since it was there last so the experience is more customized
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Web Bugs
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tiny graphic files embedded in email messages that are designed to monitor who reads the email and send that info to another computer
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Opt In
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security advocates prefer this method of consent which forces users to give consent to use personal information
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P3P
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Platform for Privacy Preferences: a standard for providing a Web site’s security information to consumers and comparing that policy to a user’s preferences
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Intellectual Property
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intangible property created by individuals or organizations
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Copyright
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statutory grant that protects intellectual property from being copied during the creator’s life plus 70 years after death
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Profiling
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use of computers to combine data from multiple sources to create a database of detailed info about a person
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Policy Process
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1. Make the Policy, 2. Educating the employees about the policy, 3. Monitoring employees. 4. Punishing employees if policy isn't abided by.
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Computer Aided Design
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Automates the creation and revision of designs, enables users to create digital models of products and tweak them as necessary.
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