CIS Study guide for midterm
CIS Study guide for midterm CIS 2010
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This 12 page Study Guide was uploaded by Daria Trikolenko on Sunday October 2, 2016. The Study Guide belongs to CIS 2010 at Georgia State University taught by Jim Senn in Fall 2016. Since its upload, it has received 16 views.
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Date Created: 10/02/16
The Digital Advantage Digital describes electronic technology that generates, stores, and processes data in terms of two states: positive and non-positive. Business Productivity is the ability of an organization to utilize its available resources in order to produce profitable goods or services as desired by customers or clients. It is the productivity that measures the performance of an organization, and it can also be used for companies themselves in order to assess their own progress. Productiveness increases the overall efficiency of an organization. When the efficiency of the organization increases, the production capacity of the company is utilized to the optimum level. Thus, all resources are used in an effective and efficient manner to get the best possible results. As is often indicated by business, the more products you make, the lower your overhead, and the higher your profits. Moor's law- prediction that microprocessor complexity would double appriximately every two years (just for hardware). General system model A model of organizations was developed using the concepts of general systems theory, GST. The model provides a set of logical assertions about causality in organizations and a framework for the detection and analysis of organizational change. Four major propositions derive directly from the model: (1) the level proposition, (2) the constraint proposition, (3) the permanent change proposition and (4) the predominance proposition. The propositions give rise to specific organizational hypotheses Data items refer to an elementary description of things, events, activities, and transactions that are recorded, classified, and stored but are not organized to convey any specific meaning. Data items can be numbers, letters, figures, sounds, and images. Information refers to data that have been organized so that they have meaning and value to the recipient. For example, a grade point average Knowledge consists of data and/or information that have been organized and processed to convey understanding, experience, accumulated learning, and expertise as they apply to a cur- rent business problem. Job security - organizations are responding to today’s highly competitive environment by doing more with less. Regardless of your position, then, you consistently will have to add value to your organiza- tion and to make certain that your superiors are aware of this value. Assurance (or lack of it) that an employee has about the continuity of gainful employment for his or her work life. Job security usually arises from the terms of the contract of employment, collective bargaining agreement, or labor legislation that prevents arbitrary termination, layoffs, and lockouts. It may also be affected by general economic conditions. Customer relationship management (CRM)- an organization wide effort toward maximizing the customer experience. Enterprise resourse planning (ERP) – business management software- typically a suite of integrated apps, that organization use to collect, manage, interret data from business activities. Role of Information System in organizations Operational role- improve the manner in which firm exectes its internal business process for effectively performance. Importance of transaction processing system – a set of information which process the data transaction in database system that monitors transaction programms. Manages data, that must be left in a consistence rate. Business intelligence systems provide computer-based support for complex, nonroutine decisions, primarily for middle managers and knowledge workers. Let’s consider some examples of globalization(IT) • Multinational corporations operate on a global scale, with offices and branches located worldwide. • Many automobile manufacturers use parts from other countries, such as a car being assem- bled in the United States with parts coming from Japan, Germany, or Korea. • The World Trade Organization (www.wto.org) supervises international trade. • Regional agreements such as the North American Free Trade Agreement (NAFTA), which includes the United States, Canada, and Mexico, have contributed to increased world trade and increased competition. • The European Union is an economic and political union of 28 countries that are located primarily in Europe. • The rise of India and China as economic powerhouses has increased global competition. IT is also enabling people to work from home, The Information Systems major emphasizes the application of computer and systems techniques to the solution of real world problems. The Information Systems (IS) Major is designed to prepare professionals in Information Systems including such areas as systems analysis and design and software engineering. This degree focuses on the use of computer technology and information management methods to solve business problems. This requires an understanding of both the organizational context of the problem and the technologies, methodologies, and tools typically utilized. Supply chain management (SCM) is the oversight of materials, information, and finances as they move in a process from supplier to manufacturer to wholesaler to retailer to consumer. Supply chain management involves coordinating and integrating these flows both within and among companies. It is said that the ultimate goal of any effective supply chain management system is to reduce inventory (with the assumption that products are available when needed). A transaction processing system supports the monitoring, collection, storage, and process- ing of data from the organization’s basic business transactions, each of which generates data. A transaction is anything that changes the firm’s database. The TPS collects data continuously, typically in real time—that is, as soon as the data are generated—and it provides the input data for the corporate databases. TPSs are considered critical to the success of any enterprise because they support core operations. Productivity: The result of optimizing each individual’s work processes. ( strategic role) Strategic systems provide organizations with advantages that enable them to increase their market share and/or profits, to better negotiate with suppliers, and to prevent competitors from entering their markets. Corporate strategy The overall scope and direction of a corporation and the way in which its various business operations work together to achieve particular goals. A business strategy is the means by which it sets out to achieve its desired ends (objectives). It can simply be described as a long-term business planning. Typically a business strategy will cover a period of about 3-5 years (sometimes even longer). Corporate and business strategies work together and influence each other in an effort to make the business units and the corporation successful. Strategic - important or essential in relation to a plan of action; Transaction Process System (TPS)mean? A transaction process system (TPS) is an information processing system for business transactions involving the collection, modification and retrieval of all transaction data. Characteristics of a TPS include performance, reliability and consistency. TPS is also known as transaction processing or real-time processing. Strategic Thinking and Strategic Analysis Business model - the conceptual structure supporting the viability of a business, including its purpose, its goals and its ongoing plans for achieving them. «business model is the method by which a company generates revenue to sustain itself.' Online direct marketing- Manufacturers or retailers sell directly to customers. Very efficient for digital products and services. Can allow for product or service customization (www. dell.com) Electronic tendering system - Businesses request quotes from suppliers. Uses B2B with a reverse auction mechanism Name-your-own-price - Customers decide how much they are willing to pay. An intermediary tries to match a provider Find-the-best-price- Customers specify a need; an intermediary compares providers and shows the lowest price. Customers must accept the offer in a short time, or they may lose the deal (www.hotwire.com) Affiliate marketing - Vendors ask partners to place logos (or banners) on partner’s site. If customers click on logo, go to vendor’s site, and make a purchase, then the vendor pays commissions to the partners Viral marketing - Recipients of your marketing notices send information about your product to their friends Group purchasing (e-coops)- Small buyers aggregate demand to create a large volume; the group then conducts tendering or negotiates a low price Online auctions - Companies run auctions of various types on the Internet. Very popular in C2C, but gaining ground in other types of EC as well (www.ebay.com) Product customization - Customers use the Internet to self- configure products or services. Sellers then price them and fulfill them quickly (build-to-order) (www.jaguar.com) Electronic marketplaces and exchanges - Transactions are conducted efficiently (more information to buyers and sellers, lower transaction costs) in electronic marketplaces (private or public) Bartering online - Intermediary administers online exchange of surplus products and/or company receives “points” for its contribution, which it can use to purchase other needed items (www.bbu.com) Deep discounters - Company offers deep price discounts. Appeals to customers who consider only price in their purchasing decisions (www.half.com) Membership - Only members can use the services provided, including access to certain information, conducting trades, etc. Commodities and differentiated products are the two ends of the product spectrum. A product is a commodity when all units of production are identical, regardless of who produces them. However, to be a differentiated product, a company’s product is different than those of its competitors. On the continuum between commodities and differentiated products are many degrees and combinations of the two. Porter’s value chain model – uses to identify specific activities where they can use competitive strategies for greatest impact. Value chain is a sequence of activities through which the organization’s inputs are transfers into more valuable outputs. Model identifies points to use IT to achieve competitive advantage. Primary activities- relate to production and distribution of products, create value for which customer will pay. Support activities- don’t add value directly; contribute competitive advantage by supporting the primarily activities. Industry structure - An explanation of the operations and relationships within a given industrial sector (such as mining or paper products). The idea behind industry analysis is that a company's profits depend on the structure of the industry it's in. 1. Industry competitors: companies competing for the same business 2. Customers: the customers of the companies in the industry 3. Suppliers: the suppliers to the companies in the industry 4. New entrants: companies who might enter the industry to compete with the existing companies 5. Substitutes: companies that provide a substitute to the product the industry competitors are selling A competitive strategy is a statement that identifies a business’s approach to compete, its goals, and the plans and policies that will be required to carry out those goals. Focuses on achieving a desired outcome when competitors want to prevent you from reaching your goal. Strategies for competitive advantage: 1) Cost of leadership: produce at lowest cost in the industry 2) Differentiation strategy: offer products which are differ from your competitor’s 3) Innovation strategy: add new features to existing products or develop new ways to produce them 4) Operation effectiveness strategy: improve the manner in which frim executes its interna business process for effectively performance. 5) Customer orientation strategy: make customer happy. Competitive scope influences the competitive advantage by shaping the structure and economics of the value chain. It has different dimensions such as segment scope, vertical scope, geographic scope, and industry scope. Coalitions help broaden the scope of operations without broadening the firm. Further, the basis for defining relevant business unit boundaries is provided by the relationship between competitive scope and the value chain. Switching costs are the costs, in money and time, imposed by a decision to buy elsewhere. For example, contracts with smartphone providers typically include a substantial penalty for switching to another provider until the term of the contract expires (quite often, two years). This switching cost is monetary. An entry barrier is a product or service feature that customers have learned to expect from organi- zations in a certain industry. A competing organization must offer this feature in order to survive in the marketplace. A strategy is about the external logic of a business. A business model is about the internal logic of the business. A business model is a tool that complements both a business strategy and a business plan. It is an important tool because 1) it ensures that you understand the logic of your business; and, 2) it helps you communicate the logic of your business. The Data World: Data-Driven Business The relational database model is based on the concept of two-dimensional tables. It is usually designed with a number of related tables. Each of these tables contains records (listed in rows) and attributes (listed in columns). A relational database must be organized so that users can retrieve, analyze, and understand the data they need. Database –grouping of related files. Database files- collection of logically realred records (table). Record – logical grouping of related fields. Single source of truth is the practice of structuring information models and associated schemata such that every data element is stored exactly once. Importance to business and management of having each objective met? Meaning and importance of data independence Applications and data are independent of one another; they shouldnot be linked to each other so all applications are able to access thesame data Achieved by using the same data and that applications cannotaccess data associated with other applications (data isolation) Information siloes- lack of communication and integration that make organizations less efficient How they arise: a.Applications created to stand alone (principal cause) b.Data isolated in islands of automation c.Different department and operational functions d.Different personal and workgroup needs e.Duplicate data as organization grows 6.Importance of single source of truth Without a single source of truth, you don’t know which data is true andcreate information silos. 'Information Silo' An information management system that is unable to freely communicate with other information management systems. Communication within an information silo is always vertical, making it difficult or impossible for the system to work with unrelated systems. Information silos exist because management does not believe there to be enough benefit from sharing information, and because information might not be useful to personnel in other systems. Master data management- process that spans all organization's business process and applications. Ability to store, maintain and exchange data. Database management system (DBMS) set of programs that provide users with tools to create and manage a database. Provide the mechanisms for maintaining the integrity of stored data, managing security and user access recovering information, if system fails. Data independence: Applications and data are independent of one another; that is, applica- tions and data are not linked to each other, so all applications are able to access the same data. Data independence is the idea that generated and stored data should be kept separate from applications that use the data for computing and presentation. In many systems, data independence is an innate function related to the multiple components of the system; however, it is possible to keep data contained within a use application. If it covers large area say a district or taluka then data independence is not possible. But if you select small area/settlement/group of people then I think you alone and independently collect data with out the help of others/sharing the data collected by others.Then for any reason do not share or barrow data from others.This way you can achieve data independence but you should consult your guide before you do it. An Information System (IS) is any combination of information technology and people's activities using that technology to support operations, management, and decision-making. A database system is a term that is typically used to encapsulate the constructs of a data model, database Management system (DBMS) and database. If a firm use databases, why are data warehouse and data mining sometimes needed or beneficial? They support business intelligence Data warehouse- Repository of historical data that are organized by subject tosupport decision makers in the organization Basic characteristics :Organized by business dimension or subject- organized bycustomer, vendor, product, price levels, etc. Use online analytical processing: Processed online as soon as they occur; goal is speed andefficiency Integrated - Data are collected from multiply systems and then integratearound subjects; creating a comprehensive view of thecustomer Time varians: stores years of data and utilize historical data to detectdeviations, trends, and long-term relationships: Nonvolatile - Users cannot change or update the data; Multidimensional - Store data more than two-dimensions Data mining- Process of searching for valuable business info in a large database,data warehouse, or data mart can perform 2 basic operations: Predicting trends and behaviors Identifying previously unknown patterns. Big data – a collection of data so alrge and complex thta it is difficult to manage using traditional database management system. It's about predictions, came from applying math to huge quantities of data to infer probabilities. Explicit knowledge deals with more objective, rational, and technical knowledge. In an organization, explicit knowledge consists of the policies, pro- cedural guides, reports, products, strategies, goals, core competencies, and IT infrastructure of the enterprise. Tacit knowledge is the cumulative store of subjective or experiential learning. In an organization, tacit knowledge consists of an organization’s experiences, insights, expertise, know-how, trade secrets, skill sets, understanding, and learning. It also includes the organiza- tional culture, which reflects the past and present experiences of the organization’s people and processes, as well as the organization’s prevailing values. Tacit knowledge is generally impre- cise and costly to transfer. It is also highly personal. Data Communication, Networking, & Mobility Network neutrality is an operating model under which Inter- net service providers (ISPs) must allow customers equal access to content and applications, regardless of the source or nature of the content. That is, Internet backbone carriers must treat all Web traffic equally, not charging different rates by user, content, site, platform, or application. Compare and contrast the two major types of networks. The two major types of networks are local area networks (LANs) and wide area networks (WANs). LANs encompass a limited geographical area and are usually composed of one communications medium. In contrast, WANs encompass a broad geographical area and are usually composed of multiple communications media. LAN- connect two or more devices in a limited geographical region, usually within the same building, so every device can communicate with every other device. Every device has a network interface card (NIC) – allow the device to physically connect to the LAN’s company medium. WAN - a network that covers a large geographical area. Connect multiple LANs. Provided by telephone companies (AT&T) Embedded LANs – LANs connected to the backbone WAN. Backbone – high- speed central networks to which multiple smaller network connected. The Internet – global WAN that connects approximately 1 mil organization's computer networks in more then 200 countries. Internet backbone- network connections and telecommunications lines that link the nodes. Intranet – a network that uses Internet protocol so that users can take advantage of familiar applications and work habits. Extranet – connects parts of the intranets of different organizations, enables to communicate securely using virtual private network (VPNs). Portals – a Web-based, personalized gateway to informtion and knowledge that provides relevant information from different IT systems. Commercial (public)- for broad and diverse audiences. Affinity portals- single point of entry to an entire community of same interest A corporate portal – personalized, single point of access through Web browser to critical business information (inside and outside of oganization). Industry-wide- serves entire industry. Wireless technologies include both wireless devices, such as smartphones, and wireless trans- mission media, such as microwave, satellite, and radio. These technologies are fundamentally changing the ways organizations operate. Short-range wireless networks simplify the task of connecting one device to another. In addi- tion, they eliminate wires, and they enable users to move around while they use the devices. In general, short-range wireless networks have a range of 100 feet or less. Medium-range wireless networks are the familiar wireless local area networks (WLANs). The most common type of medium-range wireless network is Wireless Fidelity, or Wi-Fi. WLANs are useful in a variety of settings, some of which may be challenging. Wide-area wireless networks connect users to the Internet over a geographically dispersed terri- tory. These networks typically operate over the licensed spectrum— that is, they use portions of the wireless spectrum that are regulated by the government. In contrast, Bluetooth, Wi-Fi, and Super Wi-Fi operate over the unlicensed spectrum and are therefore more prone to interfer- ence and security problems. In general, wide-area wireless network technologies fall into two categories: cellular radio and wireless broadband. Internet protocol – responible for dissambling, delivering and reassambling the data during transmission. It manages the movement of data packets between computers by establishing a connection between the computers, it sequences the transfer of packets, and it acknowledges the packets that have been transmitted. Packet – small, fixed bundles of data. Packet switching – transmission technology that breaks up blocks of text into packets. A 4G network theoretically will have a higher data transfer rate. A 4G wireless network is a pure data connection: that is, it is an end-to-end Internet Protocol connection. This provides some real advantages, but also some disadvantages. On the one hand, a smartphone simply becomes another data device whose native mode is as an Internet-enabled terminal and that can be managed as such. Internet service providers: Cable modems- modems that operate over coaxial cable (cable TV), it offer broadband access to the Internet or corporate intranets. DSL modems- operate on the same lines as voice telephone and dial-up modems. It always maintain connection. Near-field communication (NFC) is a set of communication protocols that enable two electronic devices, one of which is usually a portable device such as a smartphone, to establish communication by bringing them within about 4 cm (2 in) of each other. Bluetoothis an industry specification used to create small personal area networks. A personal area network is a computer network used for communi- cation among computer devices—for example, telephones, personal digital assistants, and smartphones—located close to one person. Business (enterprise) network- connection of all LANs and WANs in organization. Software – defined networks (SDN) – an emerging technology that is becoming incresingly important to help organizations manage their data flows across teir enterprise networks.Controlling how network traffic flows across network devices and managed centrally by software. Convergence is a coming together of two or more distinct entities or phenomena. Convergence is increasingly prevalent in the IT world; in this context the term refers to the combination of two or more different technologies in a single device. Taking pictures with a cell phone and surfing the Web on a television are two of the most common examples of this trend. May influence consumers to accept new technologies. A major barrier to more rapid convergence is the large investment required to bring cable TVto households, both by cable access providers and individual households. Satellite wirelessservice is another approach that is only beginning to bring its subscribers access to the Internet. Digital Subscriber Line ( DSL ) technologies offer the possibility of sufficient bandwidth connections over ordinary phone wires for streaming video to TV sets.
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