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IS 223 Midterm and Final Exam Reviews

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by: Frankie Fucci

IS 223 Midterm and Final Exam Reviews IS 223

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These notes cover most, if not all, of what was on the midterm and final exams for IS 223 last semester (Fall 2015).
Introduction to Information Systems
Dr. Jeffrey W. Allen
Study Guide
IS, Information Systems, IS223, midterm, final exam, study guides
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"If Frankie isn't already a tutor, they should be. Haven't had any of this stuff explained to me as clearly as this was. I appreciate the help!"
Madisyn Cole

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This 32 page Study Guide was uploaded by Frankie Fucci on Wednesday January 13, 2016. The Study Guide belongs to IS 223 at Boston University taught by Dr. Jeffrey W. Allen in Fall 2015. Since its upload, it has received 105 views. For similar materials see Introduction to Information Systems in Business, management at Boston University.

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If Frankie isn't already a tutor, they should be. Haven't had any of this stuff explained to me as clearly as this was. I appreciate the help!

-Madisyn Cole


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Date Created: 01/13/16
 IS 2  Disney: there is a limit to its capacity at one time, so Disney uses info systems to more efficiently use the resources/facilities they have to increase revenues o Info systems was used to improve customer experience/service  Use of video cameras and special computer software to ID gridlock and launch counter activities to reroute crowds  New interactive services like video games to help pass time waiting  Mobile apps to help visitors navigate the park more efficiently  Digital Firm: nearly all organization's significant business relationships with customers, suppliers and employees are digitally enable/mediated o Core business processes are accomplished though digital networks spanning entire organization/linking multiple organizations  Business processes: set of logically related tasks and behaviors organizations develop over time to produce specific business results and unique matter in which activities are organized/coordinated  Operational Excellence: high efficiency of operations in order to achieve higher profitability o IS/technology - important tools for mangers to achieve higher levels of productivity/efficiency  Business Model: describes how company produces, delivers an sells a product/service to create wealth  Customer and Supplier Intimacy o Business knows its customers/serves them well --> customers return and purchase more  Raises revenues/profits o The more business engages its suppliers --> the better suppliers can provide vital inputs  Lowers costs  Competitive Advantage: when firms achieve one or more of these business objectives: o Operational excellence, new products/services/business models, customer/supplier intimacy, improved decision making o Doing things better than competitors, charging less for superior products, responding to customers/suppliers in rea-time --> higher sales/profits  Survival: investment in IS/technology are necessities of doing business o Can be driven by industry-level changes o IS allows businesses respond to new emerging challenges they must face to survive  Information Technology (IT): hardware/software needed to achieve business objectives  Information System (IS): set of interrelated components tat collect/retrieve, process, store and distribute information to support decision making and control in an organization o Contains info about significant people, places and things within organization and its environment  Info vs. Data o Information: data that has been shaped into a form that is meaningful and useful o Data: streams of raw data facts representing events occurring in the firm or its environment before they have been organized and arranged into form people can understand and use  Three activities in an IS produce the info firms need to make decisions, control operations, analyze problems and create new products/services: o Input: captures/collects raw data from within organization or its external environment o Processing: converts raw input into a meaningful form o Output: transfers processed info to people who need it or the activities for which it'll be used o IS also require feedback: output that is returned to appropriate members of organization to help them execute/correct input stage  IS literacy: broad understand of IS - the management/organizational dimensions of systems and technical dimensions of systems  Computer literacy: knowledge of IT  Management Information System (MIS): tries to achieve broad IS literacy o Behavioral issues and technical issues surrounding development, use and impact of IS used by managers and employees of a company  IT terms: o Computer hardware: physical equipment used for input, processing and output activities in iS o Computer software: detailed programmed instructions that control/coordinate hardware o Data Management Tech: software governing organization of data on physical storage media o Networking/telecommunication technology: physical devices and software - links various pieces of hardware and transfers data between physical locations o Network: links two or more computers to share data/resources (ex: printer) o Internet: world's largest and most widely used network; global network of networks uses universal standards to connect millions of different networks with nearly 2.3 billion users in over 230 countries o World Wide Web (WWW): service provided by the internet that uses universally accepted standards for storing, retrieving, formatting and displaying info in page format o IT Infrastructure: all the technologies above and people that work them representing resources that can be shared throughout firm  Provides foundation (platform) on which firm can builds its specific IS  UPS o Main competitor - FedEx o Maintains high customer service while keeping costs low o Scannable bar code label attached to package --> contains data about sender, destination and estimated arrival of package  Customer can download their own labels o Info from label is sent to computer centers before UPS even gets package o Special software is used to route the most efficient route o 340 Methods: optimizes performance of every task in the shipping/delivery process o First thing drivers do in mornin: Delivery Information Acquisition Device (DIAD): handheld comp.  DIAD has calculated daily route, captures customers signature, has delivery/pick up info  Tracking info is transferred to UPS computer network and can be accessed anywhere o Input: the DATA about who shipped the package/address it's going to  Comes from information on the barcode that's scanned o Processing: the scans that occur along every step/location  1st thing drivers pick up in the morning: DIAD (handheld computer system)  Drivers dispatch plan  Lets them know their delivery route or if it needs to be changed  Specific delivery route (avoid left-hand turns) o Output: delivered package o Feedback loop: insurance process o Stakeholders: customers, package receiver, UPS, employees, competitors, investors  Complementary assets: assets required to derive value from primary investment o These investments aka organizational and management capital  IS 3  IT Infrastructure: shared technology resources that provide the platform for the firm's specific IS apps  General-Purpose Mainframe and Minicomputer Era (1959-Present)  Widespread commercial use of mainframe: support thousands of online remote terminals connected to centralized mainframe  Highly centralized computing under control of programmers/operators  This changed with minicomputers: made decentralized computing possible, customized to specific needs  Powerful machines at lower prices  Client/Server Era (1983-Present)  Client/server computing: clients - desktops/laptops - are networked to power server computers - provide client computers with various services/capabilities  Two-tiered client/server architecture: client computer networked to server computer, processing split between the two; simplest client/server network  Multitiered (N-tiered) client/server architectures: work of entire network balanced over several levels of servers, depending on service requested  First level: web server will serve web page to client's service request  Web server software: locates and manages stored web pages  If client asks for corporate system access, passed on to application server  Application server software: handles all app operations between user and organization's back-end business systems  Cloud and Mobile Computing Era (2000-Present)  Growing bandwidth power of internet --> Cloud Computing Model  Cloud computing: gives access to shared pool of resources over a network (internet)  Accessed on as-needed basis from any connected device/location  Moore's Law: computing power doubles every 18 months  Hard drive size, RAM memory, GHz speed  Nanotechnology: uses individual atoms/molecules to create computer chips and other devices that are thousands of times smaller than current technologies permit  Law of Mass Digital Storage: amount of digital information is roughly doubling every year  Cost of storing digital info is falling at exponential rate  Infrastructure Components   Computer Hardware Platforms:  Blade servers: computers consisting of circuit boards with processors, memory and network connections that are stored in racks  Operating System Platforms  Unix/Linux: inexpensive/robust opens source operating systems  Scalable, reliable and much les expensive than mainframe OS  Major providers of Unix: IBM, HP, Sun  Operating system: used to manage resources and activities of the computer  Greater variety now with Chrome, Android, iOS etc.  Data Management and Storage  Storage area networks (SAN):connect multiple storage devices on a separate high speed network dedicated to storage  Creates large central pool of storage that can be rapidly accessed and shared  Internet Platforms  Web hosting service: maintains large Web server, or series of servers and provides fee-paying users with space to maintain their web sites  Consulting and System Integration Services  Legacy systems: older transaction processing systems created for mainframe computers that continue to be used to avoid high cost of replacing/redesigning them  Consumerization of IT: forcing business, especially large firms, to rethink the way they obtain/manage IT equipment and services  Ex: BYOD = bring your own device  Grid computing: connecting geographically remote computers into a single network to create virtual supercomputer by combining computational power of all computers on the grid  Impossible until high-speed internet connections connected remote machines economically  Virtualization: presenting set of computing resources so they can all be accessed in ways that are not restricted by physical configuration/geographic location  Enables single physical resource to appear to user as multiple logical resources  Ex: server or storage device  Two operating systems, one computer  Cloud Computing: model of computing in which computer processing, storage, software and other services are provided as pool of virtualized resources over a network, primarily the internet   On-demand self-service: can access computing capabilities as needed on one's own  Ubiquitous network access: can be accessed using standard internet devices/mobile  Location-independent resource pooling: user doesn't know where resources located  Rapid elasticity: resources rapidly provisioned/increased/decreased to meet user need  Measured service: charges based on amount of resources used  ***Cloud computing consists of 3 different types of services:  Cloud infrastructure as service: processing, storage, networking, etc. from cloud service providers to run IS  Cloud platforms as service: infrastructure/programming tools to develop own apps  Cloud software as service: software hosted by vendor and delivered over network   Public Cloud: owned/maintained by cloud service provider and made available to public/group  Private cloud: operated solely for an organization  Managed by organization or outside vendor, can be on or off premise  Green computing (Green IT): practices/technologies for designing, manufacturing, using and disposing of computers servers and associated devices such as monitors, printers, storage decides and networking and communications systems to minimize impact on environment  Multicore processor: integrated circuit to which 2+ processor cores have been attached for enhanced performance, reduced power consumption and more efficient simultaneous processing of multiple tasks  Autonomic computing: industry-wide effort to develop systems that can configure themselves, optimize and tune themselves, heal themselves when broken and protect themselves from outside intruders and self- destruction  Open source software: software produced by several hundred thousand programmers around the world; free and can be modified by users (mostly based on Linux or Unix OS)  Linux: OS related to Unix; Linux apps embedded in smartphones/netbooks /electronics; major force in local area networks, web servers and high performance computing work (IBM, Oracle, HP, Intel, Dell)  Java: OS-independent, processor-independent, object-orientated programming language has become leading interactive environment for the web Web browser: easy-to-use software tool with graphical user interface for  displaying web pages and accessing web and other internet resources  Hypertext Markup Language (HTML): page description language for specifying how text, graphics, video and sound are placed on web pages and for creating dynamic links to other pages/objects  HTML5: solves problem of third-party plug-ins needed to view content and take up processing power  makes it possible to embed images, audio, video and other elements directly into document without processor-intensive add-ons  Extensible Markup Language (XML): a foundation technology for the web; more powerful/flexible language than HTML  Can perform presentation, communication and storage of data  Service Orientated Architecture (SOA): set of self-contained services that communicate with each other to create working software application  Software package: prewritten commercially available set of software programs that eliminates need for firm to writ its own software programs; saves money/time/resources  Outsourcing: (software) outsourcing enables firms to contract custom software development or maintenance of existing legacy programs to outside firms (usually in low-wage areas of world)  Cloud-Based Software Services/Tools  *Software as a Service (Saas): services for delivering/providing access to software remotely as web-based service  In order to mange relationship with outsourcer/tech service provider need contract  Must include Service Level Agreement (SLA): defines specific responsibilities of service provider and level of service expected by customer  Specify nature and level of services provided, criteria for performance measurement, support options, provisions for security and disaster recovery, hardware and software ownership upgrades, customer support, billing and conditions for terminating agreement  Mashup: software apps that take different sources and produce new work better than what you had separately before  Web mashups - combine capabilities of two or more online apps to create hybrid that provides more customer value than original source alone  Apps: small pieces of software that run on internet/computer/phone, etc. and delivered over internet  Scalability: ability of a computer/product/system to expand/serve larger # users w/out breaking down  How well does infrastructure grow (or shrink) as company grows (or shrinks)  Total Cost of Ownership (TCO): model used to analyze direct/indirect costs to help firms decide actual cost of certain technology implementations  *actual cost of owning tech resources => original cost of acquiring/installing hardware and software AND ongoing administration costs for hardware/software upgrades, maintenance, tech support, training and utility/real estate costs for running/housing technology  Competitive forces model for IT infrastructure: addresses question how much spend on IT infrastr.  Internal factors:  Market demand for firm's services  Firm's business strategy: try to assess what new services/capabilities will be requires to achieve strategic goals in 5-year plan  Form's IT strategy, infrastructure and cost: assess IT plans for next five years in comparison to firm's business plan  IT assessment: is firm behind tech curve or at bleeding edge of IT (avoid both)  Don't want to be behind but don't want to spend $ on developing tech because may spend $$ on something that doesn't work/costs a lot for maintenance and upkeep  External factors:  Competitor firm serves: asses what tech services competitors offer and compare to your firm; pay attention of competitive disadvantages in relation to competitors  Competitor IT infrastructure investments: benchmark IT expenditure against competitors  IS 4: Long tail - obscure series of products people want  In low demand --> find in technology based location  80-20 rule: 80% of profit comes from 20% of customers  Personalized recommendations - data mining  Help to sift through everything available o Saves time  Extends long tail in total, but also shortens it individually o Possible for 2 reasons  Place --> space  Power of search: match right content --> right customer  Up internet, pay attention to internet experience  Supply Side Drivers - reasons why suppliers are moving from "brick and mortar" to internet  Down inventory costs (information goods, centralized warehouse, drop-shipping cost)  Greater reach (demand over internet)  Down product/distribution costs  Up willingness to supply if can sell to niche markets  IS 5: Blockbuster Movie Rental Case  *READ OVER CASE NOTES FROM BOOK  Blockbuster Inc. o Founder, David Cook, wanted to take advantage of fragmented video rental market o Blockbuster have inventory 3x that of competitors o 1993: leading global provider of in-home movie/game entertainment o Merchandise selection/quantity/formats customized at store level to meet needs of local market o 1999: Netflix launched and became major competitor  Challenges blockbuster on variety and late fees o Late 2000s: pressure from lower-cost options  Netflix charged monthly fee of $9, even blockbusters online plan was $20  Redbox sold DVD rentals for as low as $1  Pressure from Netflix to drop late fees --> loss of $400 million per year  Netflix o Had problems with competitors as well  Other rent-by-mail companies were fighting to be on top o Differentiated itself through heavy promotion, partnerships with companies selling DVD players o Was in price war with Blockbuster and facing competitors such as Amazon and Wal-Mart o Focused on large variety, helping consumers navigate through recommendation engine and speed  "long tail" selection***  Having old titles as well as recommending titles people actually liked increased its popularity o Did not focus as much on having the newest titles out there, preferring to wait some time, buy in bulk and save money  Redbox o 2002: purpose was to bring more people into McDonald's restaurants o Target: budget-conscious movie renter - allowed for last minute rentals of new DVDs at low cost  Mail-in orders were causing video stores to close down --> left gap of people who wanted DVD for immediate use o Video kiosks in stores created foot traffic which kept Redbox popular with stores  The kiosk was relatively inexpensive - good for store owners who got a percent of revenues o Studios were unhappy: felt people were less likely to purchase DVDs and instead rent them, and Redbox was quicker at bringing out new releases  How is that possible if the studio gives out the DVD for others to sell???  Video on Demand o Hollywood felt this would be their savior - brought in higher revenues and gave greater share to studios o With decline of physical and increase in technology, studios have to find new way to get movies out  1997 - Netflix started  2004: BB online - too late to make real impact  Helps a little but closing stores --> losing revenue  2006-13: BB dying  2011 Quickster Fiasco: if started on physical DVD's --> higher fees  Lots of people went from Netflix --> BB but once Netflix fixed this, back to them  Netflix Growth  No late fees  Larger selection  Mailed to you - convenience  Live streaming (eventually)  *Technology disrupts industries BUT created new ones  Technology decreases costs/leaves certain costs behind  IS 6: Nomadic: Business Process Modeling  Lick's Breakthrough  "Man-Computer Symbiosis" - Lick's paper proposing computers be designed to solve daily problems, make decisions fast by doing the mundane tasks that people do  Core Concept: Process Maps and Process Friction  Process improvement begins with process mapping  Good process map aims to make the invisible, visible  First place we look to make improvements are at points of friction - where a process breaks down/slows down o Goal is to decrease friction o Sometimes IS created to create friction - Apple does that a lot  Framework: Mapping Processes  Principles/Points of views shared by good process mappers: o Cultivate Detached POV: to have detailed observation we need to find POV outside the stream of the process in action o Understand the Purpose of Process:  Process defined by moving towards particular objective  To understand process must understand its purpose  Ultimate business process --> creation of value o Study with Experts & Practitioners: to map process --> study behavior of people engaged in process, especially those who have expertise o Map the Process as Simply as Possible: represent whole process elegantly, quickly highlight critical weaknesses and effectively communicate need for change  Business Process Terms:  Role: subset of the activities in a business process that is performed by an actor o Name of each column in the business process model  Actor: people in the business process  Swimlanes: each lane contains all activities for a particular role performed by a particular actor o Each column in the model  Repository: collection of something, usually records of some type; storage  5 components of IS - model of components of an IS; present in every IS  Computer-based IS: an IS systems that includes computers  Info vs. Data  Information: knowledge derived from data; processed data presented in meaningful context  Data: recorded facts/figures  Factors that drive information quality:  Data Factors:  Accurate: correct/complete measure of what is being measured/processed correctly in accordance with expectations and standards  Timely: late data is useless  time can be measured against calendar/events  Correct granularity: level of detail; too fine-grained --> to much detail / too coarse --> too highly summarized  Data that is too fine can be regrouped together  Data that is too broad cannot be broken up  In terms of database: break things down to many fields (First/last/middle name)  Easy to use Human factors:   Knowledge: know where to focus on/what is important in data to make it meaningful  Criteria used to interpret the data  Structured processes: formally defined, standardized; support day-to-day operations  Dynamic process: less specific/more adaptive and intuitive  IS 7: Junk Van Case - 5 possible solutions to challenge  Challenges with this system as company grew: o Administrative tasks took up a lot of drivers time o Customer service quality was poor --> damages reputation o Errors in customer contact information, forgotten emails, manual calculations and billing mistakes  Negative client interactions o Data clerk was main problem  Microsoft Access o Quick solution/small budget o Access locally on few computers/through internet o Issues:  No remote access - each instance would have to be updated manually every day o Custom Application o Central database and remote access, basic functionality included o Issues:  4 weeks  Expensive - especially maintenance/data migration  Cannot see final product beforehand - no control o Google Docs o Create docs/share with others o Can be used remotely and all at the same time o Email distribution supported o Quick fix/cheap o Issues:  Online spreadsheet - cannot be cross referenced as with relational database  Lack of formal customer support  Confidentiality issues o Platform as a Service (PaaS) o Cloud computing infrastructure o Can use common apps as well as create own applications o 3 days for implementation and data migration o No long-term contracts o Issues:  Slightly costly - need to decide what exactly he wants to determine price o Enterprise Resource Planning (ERP) System o Central database o Accessible remotely o Integration of business processes o Issues:  Costly  Did not seem to fit his needs  IS 8 o Databases: keep track of data/info to make queries/organize data o Benefits of Database: o Flexibility o Scalability/performance o Decrease repeated info o Higher quality of info/info integrity o Higher info security o Simultaneous access o Users of databases: o DB admin o Programmers o End users  Internal: managers, analysts, clerks, etc.  External: customers, partners, vendors, etc. o Contents of database: self-describing collection of integrated records o Byte: characters of data  Columns: bytes group into columns  Fields: columns in a database  Rows: fields (columns) are grouped into rows  Records: rows in a database  Table/File: group of similar records (rows) o Primary key: fields/groups of fields that IDs unique row in a table  Given a value in that table, you can determine one and only one record o Foreign key: such fields are keys of a different table than the one in which it resides  Can only be identified once relationships are made o Relational database: carry their data in form of tables/represent relationships using foreign keys o Metadata: data describing the data (ex: descriptive field in Access) o Database Application System: three major components - database, DBMS, one or more database apps o Database Management System (DBMS): program used to create/process/administer a database  Companies usually license DBMS products from vendors like IBM, Microsoft, Oracle, etc.  Database vs. DBMS - DBMS is a software, database is collected of tables of data, relationships and metadata o Structured Query Language (SQL): international standard language for processing a database; used to create database and database structures o Database Administration (DBA): one or more dedicated employees responsible or development, operation, backup/recovery and adaptation of important databases in an organization o Database application: set of forms/reports/queries/app programs that use DBMS to process database o A database may have more than one database app with more than one user o Query: quickly filter and find desired information from data in database o Lost update problem: when more than one person is using same database and trying to update same thing --> some data is overrode and lost; occurs with multi-user database processing o Prevention: locking to coordinate activities of users who don't know about each other o Enterprise DBMS: process large organizational and workgroup databases; support thousands of users and many database apps; supports 24/7 operations o IBM's DB2, Microsoft's SQL, Oracle's Oracle Database o Personal DBMS: designed for smaller, simpler database applications; small workgroup/personal apps involving fewer than 100 users (many person DBMS are databases with single users) o Ex: Microsoft Access o Entity-Relationship Data (ERD) Model: tool for constructing data models; used to describe content of data mode by defining the entities that will be stores in database and the relationships among them o Blueprint - conceptual model that will be transferred to physical model (database) o Entity: something users want to track; represents a type of objects with common characteristics  Expressed as singular noun*** o Attributes: entities have attributes - describe characteristics of entity o Identifiers: entities have identifiers - attribute whose value is associated with one and only one entity; conceptual primary key (or keys) o Relationships: action verbs  Associated with real-world  Represented by straight line connecting entire entities (whole table)  Not all entities connected together  Must have connecting words going both ways (top and bottom)   Crow's-foot diagram: o One-to-many relationship => 1:N o Many-to-many relationship => N:M o One-to-one relationship => 1:1 o All cardinalities have min and max participation o *minimum participation (cardinalities) = 0 and/or 1 o *maximum participation (cardinalities) = 1 and or < (many) o  Normalization: convert poorly structures tables into two or more well- structured tables  Data integrity problem: when database contains inconsistent data o Can occur when normalizing a table for data integrity o Databases with data integrity problems --> yield incorrect/inconsistent data  Steps for E-R D o Make entities/attributes o Choose PKs o Model relationships o Determine cardinalities o Check model  Converting ERD to Physical Model  May encounter issues: ERD can have many-to-many relationship but databases cannot o Where there are many-to-many relationships --> must create intermediary table  Must include primary keys of both tables (creates one- to-many relationships) Access notes: Never type the quotes in access or dollar signs, let access out those in for you And query: anything on the same line = and query Different lines=or query OR "e or c" on same line in same field Greater than or equal to: ">=" Between --> >=20 and <=234 Never have two boxes with same field content Don't use between: in access it includes beginning and end points Cannot have query design with two tables that are not connected If need to connect two, then add in another table that connects the three Foreign key (only call that after two tables connected together): field in one table that is nonprimary that in another table is primary and is used to connect two table together Called a foreign key in the nonprimary table Instead of yes no field --> make it short text field and put in "yes" or "no" IS15 Nomadic : Needs/Solutions  Info systems designed to solve needs of particular group of users, using particular combinational of technologies  Understand/anticipate user's needs requires mix of analysis and imagination  Effective solutions --> balance between needs of users and technological/strategic reality  Stories from the Field: Facebook Zero  *Get users early, get them for life --> opportunities in developing world  Issue: most don’t have internet access, smartphones or hi-speed Wi-Fi  Facebook studied needs of mobile users in developing work to figure out how to translate Facebook into must-have service for those with a phone  Facebook Zero: stripped-down version of Facebook meant to work on feature-limited phones that took almost no data wile still working like regular Facebook o Results: Facebook has become dominant platform in Africa particularly  To keep up: Google launched Free Zone - stripped-down version of google apps on a single carrier in Philippines  Needs Analysis vs. Needs Anticipation  Listening to users is important but can also be dangerous  Needs Analysis: formal method for listening to users in design process  Includes focus groups, ethnographic observations, detailed time/motion studies, personas  **Limitations: only works if users actually know what they want and if user's preferences are relatively uniform and stable o Users may not know what they want or how to get what they want o May want one thing today and another tomorrow - technological change  ***Creating for existing needs --> always be BEHIND  Needs analysis must be balanced with needs anticipation Needs Anticipation: ID trends, imagine how they will evolve into new needs, design systems that adapt  to meet those needs as they emerge  Balance what users think they need today w/ what designers think they'll need tomorrow  Creating new needs as well as fulfilling existing ones  Affordances and Constraints  IS designed to be used on specific set of devices with particular platform and they all have RULES  Affordances: things a user can do with particular technologies Constraints: things users can’t do   Art of solution design: take advantage of affordance while working within constraints  Stories from the Field: Real Estate App Wars  Early 2000s no way to search for available homes online  Eraken --> launched Redfin: entire process of buying a home now online  Put process into hands of consumers --> give them more control and lower prices  Inkinen--> launched Trulia: user-friendly marketplace to ease stress of searching for a home  Solutions Trade-Offs  Every choice made has direct impacts on broader strategic goals  One Need vs. Many: entrepreneurs sometimes feel the need to fix whole process at once o Focus on one and need to ignore others  Simplicity vs. Complexity: having a lot to work with --> feature-creep/clunky systems o Features that interfere with goals --> take out  Breadth vs. Depth: IS can scale quickly --> get caught up in going big and not looking at details until later o Can cause problems in complex, service-orientated markets  Sarbanes Oxley Act: a government regulation that calls for stricter financial reporting requirements that can have a major impact on firm’s productivity in an attempt to reduce it which can counteract the increased productivity technology may have  System effectiveness: extent to which a system enables people and/or a firm to accomplish goals and tasks well; biggest increases in technological productivity result from this  System efficiency: the extent to which system enables people and/or a firm to do things faster, at lower cost, or with relatively little time/effort; business metrics to measure productivity increases usually focus on this  Total Cost of Ownership (TCO): understand cost of acquisition AND ongoing use/maintenance  Non-recurring costs: One time costs that are not expected to continue after the system is implemented  Ex: Initial purchase price of software, site preparation Recurring costs: ongoing costs that occur throughout life of the system   Ex: Maintenance, upgrades, monthly fees  Tangible cost: relatively easy to quantify  Intangible cost: do not neatly fit quantitative analysis  Tangible benefits: relatively easy to determine  Intangible benefits: hard to quantify with confidence  Cost-benefit analysis: total expected tangible costs vs. tangible benefits  Weighted multicriteria analysis: decide among different IS investments  3 options for an application being considered for purchase, planning meetings ID’d 3 requirements and 4 constraints to help make the decision:  List requirements and constraints separately on left-hand side  Assign weights of important to each by relative importance  Assign a rate (1-5) of how well the option fits with system characteristics  Add up weighted scores to see which option is best  Presenting Business Case: make most effective presentation of system  Know the audience: understand issues important to them  Convert benefits to monetary terms: helps stakeholders measure and compare benefits  Calculation: convert time savings into dollar figures  Ex: Benefit – system saves at least 1 hours/day for 12 mid-level managers  Quantified as:  Manager’s salary (per hour): $30.00  # managers affected: 12  Daily savings (1 hour of salary saved x 12 managers): $360  Weekly savings (daily savings x 5): $1.800  Annual savings (weekly savings x 50): $90,000  Measure what is important to management: focus on “hot-button” issues to make it more meaningful to senior managers  Characteristics of stakeholders who make IS investment decision:  Management  Steering committee  User department  IS executive  Systems analysis and design: process of designing, building and maintaining IS  System analyst: person who performs this task  Customized Software: developed to meet specifications of firm; can be developed in-house or outsourced; two primary advantages:  Customizability: tailored to meet unique firm requirements  Ex: gain competitive advantage, better fit business operations, better interface with existing systems  Problem specificity: pay only for features specifically required for users  Rare to build IS from scratch now  Open source software: freely available for use/modification; large user base helps fix problems and improve software  Linux: most prevalent examples  Anyone can suggest modifications for official releases but only select committers can implement the modifications into official releases; ensures quality and stability  Hidden costs: obtaining reliable customer support,  Benefits: Combine advantages of different types of software: buy commercial and customize as needed  Mangers goal: whatever software is chosen, must fit firm’s needs  Project manager: most responsible for ensuring a project is a success; must deal with continual change and problem solving; critical skill for systems analysts; focus of project management: ensure projects meet customer expectations and are delivered within budget and on time  Systems Development Life Cycle (SDLC): life of an IS from conception to retirement; 4 phases  Systems planning and selection: ID, plan and select a development project from all possible projects, cannot work on everything with limited resources (time, money, etc.)  IS planning system: someone IDs/assess all possible systems development projects --> those deemed most likely to yield benefits are selected  Evaluative criteria:  Strategic alignment  Potential benefits  Potential costs/resource availability  Project size/duration  Technical difficulty/risks  Systems analysis: designers gain thorough understanding of firm's current way of doing things in area where IS will be constructed  Requirements collection: gather/organize info from users, managers, customers, business process and documents to understand how proposed IS should function  Interviews  Questionnaires  Observations  Document analysis  Joint application design (JAD): group meeting-based process where users jointly define/agree on system requirements/designs  Data modeling: understand what data the IS needs to accomplish intended task  Data modeling tools: collect/describe the data to users to confirm al needed data are known/presented to users as information  Modeling processes and logic: model how data being input, processes and presented  Data flows: movement of data through firm/ within IS  Processing logic: way data are transformed  Expressed in pseudocode: program's internal functioning, independent of actual programming language being used  Level of detail can vary  Systems design: details of chosen approach elaborated; elements that must be designed:  Human-Computer Interface (HCI): point of contact between system and users  Databases and files: need thorough understand of firm's data and info needs  Processing and logic: steps/procedures that transform raw inputs --> new or modified information  Systems implementation and operation:  Software programming and testing: process of transforming system design into working computer system; broad range of tests conducted before IS is complete:  Developmental: correctness of individ. models/integration of multiple models  Alpha: overall system to see whether it meets design requirements  Beta: capabilities of system in user environment with actual data  System conversion, documentation, training, support  System conversion: decommission current way of doing this/installing new system into organization; effective conversion => new software installed AND users must be effectively trained and supported  System conversion strategies:  Parallel: old and new systems used at same time  Direct: old system discontinued on one day, new is used on next  Phased: parts of new system implemented over time  Pilot (single location): entire system is used in one location  Many types of documentation must be produced for IS User and reference guides   User training manuals/tutorials  Installation procedures/troubleshooting suggestions  Repeating SDLC: Systems Maintenance: IS systematically repaired and/or improved  Maintenance process parallels initial IS development process: one person within systems development group is responsible for collecting maintenance requests for users, routinely analyzed to see how they would change/effect the system  Change request management: formal process that ensures any proposed system changes are documented, reviewed for risks, appropriately authorized, prioritized and carefully managed  Types of software maintenance:  Corrective: make changes to repair flaws in design, coding, or implementation  Adaptive: make changes to evolve IS functionality, to accommodate hanging business needs, or to migrate it to different operating environment  Preventive: make changes to reduce chance of future system failure  Perfective: make enhancements to improve processing performance or interface usability, or adding desired but not necessarily required system features ("bells and whistles")  Patch management systems: use internet to check software vendor's webs site for available patches and/or updates  If website offers a patch, application with download and install patch to fix software flaw  Used by commercial off-the-shelf software package vendors to facilitate different forms of software maintenance for user  Game Development Studios Case  Software companies derive most income from variety of sources beyond sales  EXCEPT game development: gaming giants generated 100% of revenue from software sales  Most software development follows methodology (like SDLC) - game development has unique characteristics  Begins with establishment of general project goal: solve problem/take advantage of opportunity  Rest of process resembles movie making process:  Process of developing central idea/general concept - once established brainstorm sequencing and how the game will play out  Repeatedly refined and tested  Paper play testing: game developed on paper and see how people react to the flow and action  Then, game's design document is completed --> translated into working prototype  Refined and fine tunes by play testing with wide range of people  Educational value and fun-factor are tested here  Transitioned into marketplace with expensive market campaign  Prototyping: trial-and-error for discovering how system should operate Process:   Collect requirements: interview users of system using JAD session (indiv/group) to gain general understand of what users want  Develop/refine prototype: create new system ASAP to share with users  Review with users:  Does User Accept Prototype: May like it or ask for changes  Process of sharing continues until user approves functionality of system Implement/use system   Agile: manage/implement a solution in small junks  Deliver value in small portions called features  Each feature is developed in a sprint  Focus on what business needs now, if changes=> accommodate in next iteration  Successful agile  Sprints 4-12 weeks  Face to face communication  Co-location  Sponsor /team committed to agile process  Requirement changes anticipated/accommodated  Lifecycle stages  Envision - sets boundaries of project  Speculate->explore->adapt stages - cycle through repeatedly  Close once at the end  Agile vs. Waterfall  Waterfall: requirements for project documented up front, then whole design process is completed, followed by development/testing/implementation  Situations where may not be feasible to build in-house IS:  Situation 1: Limited IS staff  Situation 2: IS staff has limited skill set  Situation 3: IS staff is overworked  Situation 4: Problems with performance of IS staff  Efforts of IS departments derailed because high turnover, changing requirements, shifts in technology, budget constraints, etc.  When building in-house isn’t possible:  External acquisition: purchase existing/prepackaged system from outside vendor  Steps in external acquisition:  Systems planning and selection  Systems analysis  Development of request for proposal (RFP): doc used to tell vendors what requirements are  Sent to vendors who might be able to meet requirements  Includes:  Summary of existing system/apps  Requirements for system performance/features  Reliability, backup and service reqs  Criteria that will be used to evaluate proposal  Timetable/budget constraints  Proposal evaluation: evaluate proposals received from vendors  Systems benchmarking: standardized performance tests to facilitate comparison between systems  Common system benchmarks include:  Response time given specified number of users  Time to sort records  Time to retrieve set of records  Time to produce given report  Time to read in a set of data  Vendor selection: prioritizing/ranking system off which to base proposals  Managing software license: companies have to agree to license agreement when buying from vendor  Enterprise license (volume license): contain limitations of liability/warranty disclaimers that protect vendor from being sued if software doesn’t work as expected  Software asset management: helps firms avoid negative consequences; set of activities to help firms better manage software infrastructure by being able to consolidate/standardize their software titles, decided to retire unused software, or decide to upgrade/replace software  Outsourcing systems development: acquire new systems with many responsibilities of development turned over to outside firm; reasons to outsource:  Cost/quality concerns: higher quality at lower price through economies of scale better management of hardware, lower labor costs and better software licenses  Problems with IS performance: increased reliability through outsourcing  Supplier pressures: aggressive sales force convince managers to outsource IS needs  Simplifying, downsizing, reengineering: running IS can take away from core competencies of firm under competitive pressure  Financial factors: strengthen balance sheet by liquidating IT assets  Organizational culture: hard for IS group to overcome political/firm problems  Internal irritants: tension between end users and IS staff can intrude on daily ops, neutral IS system can help to alleviate that IS 17: ExerciseApp  Key aspects: the way he needed to do this, make programmer part shareholder (ownership for programmer)  They will be doing most of the work -> give him share so don't have to pay him (as much)  Needed more money  System will come out in increments  *address questions on syllabus IS: 19 internet marketing  Growth of E-commerce  Technology Foundations:  Social networking software/sites such as Facebook, MySpace, Twitter, LinkedIn, etc. become major new platform for e-commerce, marketing and advertising  New business Model Emerge:  Online entertainment business models offering TV, movies, music, sports and e-books surge, with cooperation among major copyright owners in Hollywood and New York and with inter distributors like Apple, Amazon, Google, YouTube and Facebook  Unique features of e-commerce technology:  Ubiquity: available jut about everywhere, at all times (Ex: e-commerce is ubiquitous)  Marketspace: result of ubiquity; marketplace extended beyond traditional boundaries and removed from temporal/geographic location  Transaction costs: costs of participating in a market; reduced by ubiquity because don't need to spend time/money traveling to market/less mental effort required to make purchase  Global reach: technology reached across national boundaries, around the world  Universal standards: one set of technology standards (internet standards)  Lowers market entry costs: cost merchants must pay to simply bring their goods to market  Reduce search costs: effort required from consumers to find suitable products  Richness: complexity and content of a message; web makes it possible to deliver rich messages with text, audio and video simultaneously to large umbers of people (don't have to sacrifice reach or richness)  Interactivity: technology works through interaction with the user  Information density: total amount/quality of indo available to all market participants, consumers and merchants  E-commerce tech reduces info collection, storage, processing and communications costs while greatly increasing currency, accurate and timeliness in information  Increases price transparency: ease with which consumers can find out the variety or prices in a market  Cost transparency: ease with which consumers can find out the actual cost merchants pay for product  Advantages for merchants as well:  Can find out more info about consumers so that they can segment their target market(s)  Can engage in price discrimination: selling same good to different groups at diff. prices  Personalization/customization:  Personalization: target specific individ. by adjusting messages to person's clickstream behavior/interests/etc.  Customization: change delivered product/service based on user's preferences/prior behavior  Social technology: technology supports content generation and social networking  Information asymmetry: reduced due to internet; exists when one party in transaction has more info that is important for transaction than other party  Dynamic pricing: price of product varies depending on demand charac


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