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Business Information Systems

by: Keon Schuster

Business Information Systems MANG 420

Marketplace > West Virginia University > Business, management > MANG 420 > Business Information Systems
Keon Schuster
GPA 3.82

Virginia Kleist

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Virginia Kleist
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This 18 page Class Notes was uploaded by Keon Schuster on Saturday September 12, 2015. The Class Notes belongs to MANG 420 at West Virginia University taught by Virginia Kleist in Fall. Since its upload, it has received 5 views. For similar materials see /class/202851/mang-420-west-virginia-university in Business, management at West Virginia University.

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Date Created: 09/12/15
MANG420 EXAM 2 REVIEW CHAPTER 5 Information Technology Infrastructure the shared technology resources that provide the platform for the rms speci c information system applications IT Infrastructure includes investment in hardware software and servicessuch as consulting education and trainingthat are shared across the entire firm or across entire business units in the firm ClientServer Computing 7 desktop or laptop computers are the clients which are networked to powerful server computers that provide the client computers with a variety of services and capabilities Computer processing work is split between these two types of machines Multitiered gN tier ClientServer Architectures 7 the work of the entire network is balanced over several different levels of serves depending on the kind of services being requested Used in much larger organizations than those that would used clientserver computing Application Server 7 software that handles all application operations between a user and an organization s backend business systems It may reside on the same computer as the web server or have its on dedicated computer Moore s Law 7 the number of components on a chip with the smallest manufacturing costs per component have doubled each year It has since further been interpreted into 1 the power of microprocessors doubles every 18 months 2 computing power doubles every 18 months 3 the price of computing falls by half every 18 months Nanotechnology uses individual atoms and molecules to create computer chips and other devices that are thousands of times smaller than current technologies permit Law of Mass Digital Storage 7 the number of kilobytes that can be stored on magnetic disks for one dollar roughly doubles every 15 months Metcall s Law 7 the more people on your network the more value it has Technolog Standards specifications that establish the compatibility of products and the ability to communicate in a network Blade Severs 7 ultrathin computers consisting of a circuit board with processors memory and network connections that are stored in racks Operating System 7 manage the resources and activities of the computer Linux 7 an inexpensive and robust opensource relative to Unix an operating system Created by Linus Torvalds and first posted on the intemet in August 1991 It is now the world s fastestgrowing client and server operating system Open Source Software software created and updated by a worldwide community of programmers and available for free Storage Area Networks gSANs 1 connect multiple storage devices on a separate high speed network dedicated to storage The SAN creates a large central pool of storage that can be rapidly accessed and shared by multiple servers Web Hosting Service 7 maintains a large web server or a series of servers and provides feepaying subscribers with space to maintain their web sites Legacy Systems generally older transaction processing systems created for mainframe computers that continue to be used to avoid the high cost of replacing or redesigning them Grid Computing 7 involves connectin network to create a virtual the r computers on the grid On Demand Computing 7 refers to rms offloading peak demand for computer power to remote largescale data processing centers Utility Computing 7 suggests that rms purchase computing power from central computing utilities and pay only for the amount of computing power they use much as they would pay for electricity Autonomic Computing an industrywide effort to develop systems that can con gure themselves optimize and tune themselves heal themselves when broken and protect themselves from outside intruders and selfdestruction Edge Computing 7 a multitier loadbalancing scheme for webbased applications in which signi cant parts of Web site content logic and processing are performed by smaller lessexpensive servers located nearby the user in order to increase response time and resilience while lowering technology costs g geographically remote computers into a single by A A 39 power of all Table 5 4 Four Apects of SelfManagement as they are now and would be with autonomic computing Concept Current Computing Autonomic Computing SelfCon guration Corporate data centers have multiple vendors Automated con guration of and platforms Installing con guring and components and systems follows integrating systems is timeconsuming and error highlevel policies Rest of prone system adjusts automatically and seamlessly SelfOptimization Systems have hundreds of manually set Components and systems nonlinear tuning parameters and their number continually seek opportunities to increases with each release improve their own performance and ef ciency SelfHealing Problem determination in large complex System automatically detects systems can take a team of programmers weeks diagnoses and repairs localized software and hardware problems SelfProtection Detection of and recovery from attacks and System automatically defends cascading failures is manual against malicious attacks or cascading failures It uses early warning to anticipate and prevent a 39 39 failures Virtualization 7 the process of presenting a set of computing resources such as computing power or data storage so that they can all be accessed in ways that are not restricted by physical con guration or geographic location Server Virtualization enables companies to run more than one operating system at the same time on a single machine Multicore Processor 7 an integrated circuit that contains two or more processors m 7 an operating 3 t 39 J r J p 39 J r J objectoriented programming language that has become the leading interactive programming environment for the web If an object moves on the Web or takes input from the user a Java applet is likely behind it Web Browser 7 an easytouse software tool with a graphical user interface for displaying Web pages and for accessing the Web and other Internet resources Middleware 7 software that connects two otherwise separate applications enabling them to communicate with each other and to exchange data Ente139prise Application Integration gEAI software 7 this software enables multiple systems to exchange data through a single software hub rather than building countless custom software interfaces to link each system Web Services 7 refer to a set of loosely coupled software components that exchange information with each other using standard Web communication standards and languages Extensible Markup Langpage XML17 the foundation technology for Web services This language was developed in 1996 by the World Wide Web Consortium as a more powerful and exible markup language than Hypertext Markup Language for Web pages World Wide Web Consortium W3C the international body that oversees the development of the web Hypertext Markup Language gHTML17 is a page description language for specifying how text graphics video and sound are placed on a Web page document HTML is limited to describing how data should be presented in the form of Web pages XML can perform presentation communication and storage of data Simple Obiect Access Protocol SOAP 7 a set of rules for structuring messages that enables applications to pass data and instructions to one another Web Services Description Language 1 SDL17 a common framework for describing the tasks performed by a Web service and the commands and data it will accept so that it can be used by other applications Universal Descriptiona Discove1ya and Integration gUDDI enables a Web service to be listed in a directory of Web services so that it can by easily located Service Oriented Architecture 1S0A17 set of selfcontained services that communicate with each other to create a working software application Software Packag 7 a prewritten commercially available set of software programs that eliminates the need for a firm to write its own software programs for certain functions such as payroll processing or order handling Application Service Provider gASP17 a business that delivers and manages applications and computer services from remote computer centers to multiple users using the Intemet or a private network Outsourcing 7 a firm contracts custom software development or maintenance of existing legacy programs to outside firms frequently firms that operate offshore in lowwage areas of the world Scalability 7 refers to the ability of a computer product or system to expand to serve a large number of users without breaking down Total Cost of Ownership gTC017 model that can be used to analyze these direct and indirect costs to help rms determine the actual cost of speci c technology implementations CHAPTER 6 An effective information system provides users with accurate timely and relevant information Accurate information is free of errors Information is timely when it is available to decision makers when it is needed Information is relevant when it is useful and appropriate for the types of work and decisions that require it 61 Data to sort a Data Redundancy 7 the presence of duplicate data in multiple data files so that the same data are stored in more than one place or location Data Inconsistency the same attribute may have different values Program data Dependence 7 refers to the coupling of data stored in files and the specific programs required to update and maintain those files such that changes in programs require changes to the data Database Management System gDBMSl software that permits an organization to centralize data manage them efficiently and provide access to the stored data by application programs The DBMS acts as an interface between application programs and the physical data files Relational DBMS the most popular type of DBMS today for PCs as well as for larger computers and mainframes they represent data as twodimensional tables called relations Object Oriented DBMS stores the data and procedures that act on those data as objects that can be automatically retrieved and shared OODBMS are becoming popular because they can be used to manage the various multimedia components or Java applets used in Web applications which typically integrate pieces of information from a variety of Data 39 39 quot 39 r 39 quot A language that most DBMS have hat is used to add change delete and retrieve the data in the database Structured Quegy Language 1S 2L 7 the most prominent data manipulation language today Normalization 7 the process of creating small stable yet exible and adaptive data structures from complex groups of data Data warehouse 7 a database that stores current and historical data of potential interest to decision makers throughout the company Data mart 7 subset of a data warehouse in which a summarized or highly focused portion of the organization s data is placed in a separate database for a speci c population of users Business Intelligence RI 7 the tools for consolidating analyzing and providing access to vast amounts of data to help users make better business decisions Online Anal ical Processing gOLAP17 supports multidimensional data analysis enabling users to view the same data in different ways using multiple dimensions Data Mining 7 provides insights into corporate data that cannot be obtained with OLAP by finding hidden patterns and relationships in large databases and inferring rules from them to predict future behavior Predictive Analysi 7 uses data mining techniques historical data and assumptions about future conditions to predict outcomes of events such as the probability a customer will respond to an offer or purchase a specific product Database server 7 in a clientserver environment the DBMS resides on a dedicated computer called this Information policy 7 specifies the organization s rules for sharing disseminating acquiring standardizing classifying and inventorying information Data administration 7 responsible for the specific policies and procedures through which data can be managed as an organizational resource Data governance 7 deals with the policies and processes for managing the availability usability integrity and security of the data employed in an enterprise with special emphasis on promoting privacy security data quality and compliance with government regulations Data Quality audit a structured survey of the accuracy and level of completeness of the data in an information system Data cleansing 7 consists of activities for detecting and correcting data in a database that are incorrect incomplete improperly formatted or redundant CHAPTER 7 Network Interface Card gNIC17 a network interface device that each computer on a network has 7 most are built into the motherboard Network Operating System NOS 7 routes and manages communications on the network and coordinates network resources Dedicated Server Computer a network server computer is a computer on a network that performs important network functions for client computers such as serving up Web pages storing data and storing the network operating system and hence controlling the network Hubs simple devices that connect network components sending a packet of data to all other connected devices Switch more intelligence than a hub and can filter and forward data to a specified destination on a LAN Routers 7 network devices that connect two or more networks Packet Switching a method of slicing digital messages into parcels called packets sending the packets along different communication paths as they become available then reassembling the packets once they arrive at their destination Protocol 7 a set of rules and procedures governing transmission of information between two points in a network Transmission Control ProtocolInternet Protocol TCP1P 7 uses a suite of protocols the main ones being TCP and IP TCP refers to the Transmission Control Protocol TCP which handles the movement of data between computers TCP establishes a connection between the computers sequences the transfer of packets and acknowledges the packets set IP refers to the Internet Protocol IP which is responsible for the delivery of packets and includes the disassembling and reassembling of packets during transmission Area Up to 500 meters oor of a Campus Area Up to 1000 Meters a or Area A or area A or area Star Network 7 all network components connect to a single hub and all network traffic ows through the hub Bus Network 7 one station transmits signals which travel in both directions along a single transmission segment All of the signals are broadcast in both directions to the entire network All machines on the network receive the same signals and software installed on the clients enables each client to listen for messages addressed specifically to it Ring Network 7 connects network components in a closed loop and messages are passed from computer to computer in only one direction around the loop Only one station on the loop my transmit at a time This is often seen in older LANs using Token Ring networking software Twisted Wire 7 consists of strands of copper wire twisted in pairs and is an older type of transmission medium Coaxial Cable 7 consists of a single thickly insulated copper wire which can transmit a larger volume of data than twisted wire Fiber optic Cable 7 consist of strands of clear glass fiber each the thickness of a human hair which are bound into cables Data are transformed into pulses of light which are sent through the fiberoptic cable by a laser device Backbone 7 pa1t of a network that handles the major traffic Optical Network can transmit all types of traffic 7 voice data and video over fiber cables and provide the massive bandwidth for new types of services and software Dense Wavelength Division Multiplexing gDWDM enables a single communications channel to carry simultaneously data transmissions from multiple sources This is accomplished by dividing a highspeed channel into multiple channels of slower speeds or by assigning each transmission source a very small slice oftime for using a highspeed channel Microwave System 7 both terrestrial and celestial transmit highfrequency radio signals through the atmosphere and are widely used for highvolume longdistance pointtopoint communication Satellitestypically used for communications in large geographically dispersed organizations that would be difficult to tie together through cabling media or terrestrial microwave transmission Cellular Phones cell phones7 work by using radio waves to communicate with radio antennaes towers placed within adjacent geographic areas called cells Hertz 7 the number of cycles per second that can be sent through a medium 7 one hertz is equal to one cycle of the medium Bandwidth 7 the range of frequencies that can be accommodated on a particular telecommunications channel It is the difference between the highest and lowest frequencies that can be accommodated on a single channel Frame relay 7 a shared network service that is faster and less expensive than packet switching and can achieve transmission speeds ranging from 56kbps to more than 40mbps Asynchronous Transfer Mode gATMl takes advantage of highbandwidth digital circuits ATM can pass data among computers from different vendors and is popular for transmitting data video and audio over the same network Integrated Services Digital Network gISDN 1 7 an older international telephone standard for network access that integrates voice data image and video services Digital Subscriber Line gDSL17 operate over existing telephone lines to carry voice data and video but they have higher transmission capacities than ISDN Cable Internet Connections provided by cable television vendors use digital cable coaxial lines to deliver highspeed Intemet access to homes and businesses Internetworking 7 what the word intemet comes from it is the linking of separate networks each of which retains its own identity into an interconnected network Internet Service Provider gISP17 a commercial organization with a permanent connection to the intemet that sells temporary connections to retail subscribers Internet Protocol 1le addres a 32bit number represented by four strings of numbers ranging from 0 to 255 separated by periods Domain Name System gDNS17 converts IP addresses to domain names which is the Englishlike name that corresponds to the unique 32bit numeric IP address for each computer connected to the Internet Information Appliance 7 a device such as an intemetenabled cell phone or a TV intemet receiver for web access and email that has been designed to perform a few tasks well with minimal user effort on on to one computer system on another File Transfer Protocol FTP Transferring les from computer to computer World Wide Web Retrieving formatting and displaying information including text audio graphics and video using hypertext links vaertext Transfer Protocol HTTP 7 the communications standard used to transfer pages on the Web Webmaster 7 the person in charge of an organization s web site Uniform Resource Locator URL17 the whole web site address when typed into a browser a URL tells the browser software exactly where to look for the information Example httpwww me acorn f atuc 027607 html Shopping Bot 7 use intelligent agent software for searching the Internet for shopping information Web 20 refers to the secondgeneration interactive intemetbased services m 7 stands for Rich Site Summary or Really Simple Syndication syndicates Web site content so that it can be used in another setting Firewalls 7 security systems with specialized software to prevent outsiders from entering private networks Groupware 7 provides capabilities for supporting enterprisewide communication and collaborative work Internet telephony 7 enables companies to use Internet technology for telephone voice transmission over the intemet or private networks Voice over IP 1 YOIP17 technology that uses the Internet Protocol IP to deliver voice information in digital form using packet switching avoiding the tolls charged by local and longdistance telephone networks Virtual Private Network 1 YPN17 is a secure encrypted private network that has been configured within a public network to take advantage of the economies of scale and management facilities of large networks such as the Internet Personal Digital Assistants gPDAs17 small handheld computers featuring applications such as electronic schedulers address books memo pads and expense trackers Smart phone 7 hybrid device that combines the functionality of a PDA with that of a digital cell phone Global System for Mobile Communication GS m 7 the standard in Europe and much of the rest of the world outside of the US its strength is its international roaming capability Users have seamless samenumber roaming in more than 170 countries Code Division Multiple Access CDMA 7 the most widely used standard in the United States was developed by the military during WWII It transmits over several frequencies occupies the entire spectrum and randomly assigns users to a range of frequencies over time Short Message Service gSM81 7 a text message serviced used by a number of digital cell phone systems to send and receive short alphanumeric messages less than 160 characters in length Third Generation 13G Network 7 have transmission speeds ranging from 384kbps for mobile users to 2mbps for stationary users 25G Network use upgrades to the existing cellular infrastructure and feature data transmission rates ranging from 30 to 144 kbps Wireless Application Protocol g AP 7 a system of protocols and technologies that enables cell phones and other wireless devices with tiny display screens lowbandwidth connections and minimal memory to access webbased information and services Microbrowser 7 an intemet browser with a small le size that works with the low memory constraints of handheld wireless devices and the low bandwidth of wireless networks I mode 7 a wireless service offered by J apan s NTT DoCoMo mobile phone network that uses a different set of standards Instead of using WAP imode uses compact HTML to deliver content making it easier for businesses to convert their HTML web sites to mobile service Bluetooth 7 the popular name for the 80215 wireless networking standard which is useful for creating small Personal Area Networks PANs It links up to eight devices within a lOmeter area using lowpower radiobased communication and can transmit up to 722 kbps in the 24GHz band Wi Fi 1 Wireless Fidelity the IEEE set of standards for wireless LANs is the 80211 family Wireless Network Interface Card Wireless NIC17 credit card size cards that snap into the personal computer memory card international association PCMCIA card slot Access poin a box consisting of a radio receivertransmitter and antennas that links to a wired network router or hub Hotspots consist of one or more access points positioned on a ceiling wall or other strategic spot in a public place to provide maximum wireless coverage for a specific area WiMax 7 stands for Worldwide Interoperability for Microwave Access is the popular term for IEEE standard 80216 known as the Air Interface for Fixed Broadband Wireless Access Systems Has a wireless access range ofup to 31 miles Radio Freguency Identi cation gRFID17 systems that provide a powerful technology for tracking the movement of goods throughout the supply chain Wireless Sensor Networks gWSNs17 are networks of interconnected wireless devices that are embedded into the physical environment to provide measurements of many points over large spaces CHAPTER 8 Phishing Attack 7 sends email that claims to be from a bank credit card company retailer or other company directing the recipient to a Web site where that person is asked to enter vital information such as bank account numbers social security numbers credit card details or online passwords Security refers to the policies procedures and technical measures used to prevent unauthorized access alteration theft or physical damage to information systems Controls 7 consist of al the methods policies and organizational procedures that ensure the safety of the organization s assets the accuracy and reliability of its accounting records and operational adherence to management standards War driving 7 eavesdroppers drive by buildings or park outside and try to intercept wireless network traffic Malware 7 malicious software programs that include a variety of threats such as computer viruses worms and Trojan horses Computer Virus a rogue software program that attaches itself to other software programs or data les in order to be executed usually without user knowledge or permission Worms 7 independent computer programs that copy themselves from one computer to other computers over a network Worms operate on their own without attaching to other computer program les and rely less on human behavior in order to spread from computer to computer Trojan Hors 7 a software program that appears to be benign but then does something other than expected The Trojan horse is not itself a virus because it does not replicate but is often a way for viruses or other malicious code to be introduced into a computer system Spmare 7 small programs that install quot 39 sur r 39J on r to monitor user Web surfing activity and serve up advertising Key logger 7 record every keystroke made on a computer to steal serial numbers for software to launch intemet attacks to gain access to email accounts to obtain passwords to protected computer systems or to pick up personal information such as credit card numbers Hacker 7 an individual who intends to gain unauthorized access to a computer system Cracker 7 a hacker with criminal intent although in public press the terms hacker and cracker are used interchangeably Cybervandalism 7 the intentional disruption defacement or even destruction of a web site or corporate information system Spoofing 7 may involve redirecting a web link to an address different from the intended one with the site masquerading as the intended destination Sniffer 7 a type of eavesdropping program that monitors information traveling over a network Denial of service gDoS attack 7 hackers ood a network server or web server with many thousands of false communications or requests for services to crash the network Distributed denial of service gDDoS attack 7 uses hundreds or even thousands of computers to inundate and overwhelm the network from numerous launch points Identity theft 7 a crime in which an imposter obtains key pieces of personal information such as social security identification numbers drivers license numbers or credit card numbers to impersonate someone else Evil twins 7 wireless networks that pretend to offer trustworthy WiFi connections to the intemet such as those in airport lounges hotels or coffee shops The bogus network looks identical to a legitimate public network Fraudsters try to capture passwords or credit card numbers of unwitting users who log on to the network Pharrning 7 redirects users to a bogus web page even when the individual types the correct web page address into his or her browser Click fraud 7 occurs when an individual or computer program fraudulently clicks on an online ad without any intention of learning more about the advertiser or making a purchase Patches 7 small pieces of software vendors create to repair the aws without disturbing the proper operation of the software Electronic records management gERM17 consists of policies procedures and tools for managing the retention destruction and storage of electronic records Health Insurance Portability and Accountability Act gHIPAA of 1996 7 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 Sarbanes Oxley Act 7 designed to protect investors after the nancial scandals at Enron WorldCom and other public companies It imposes responsibility on companies and their management to safeguard the accuracy and integrity of financial information that is used internally and released externally Computer Forensics the scientific collection examination authentication preservation and analysis of data held on or retrieved from computer storage media in such a way that the information can be used as evidence in a court of law Risk assessment 7 determines the level of risk to the firm if a specific activity or process is not properly controlled Security policy 7 consists of statements ranking information risks identifying acceptable security goals and identifying the mechanisms for achieving these goals Acceptable use policy gAUP17 def1nes acceptable uses of the f1rm s information resources and computing equipment including desktop and laptop computers wireless devices telephones and the intemet Authorization policies 7 determine differing levels of access to information assets for different levels of users Authorization management systems 7 establish where and when a user is permitted to access certain parts of a web site or corporate database nline t quot processing 7 quot entered online are immediately processed by the computer Fault tolerant computer systems 7 contain redundant hardware software and power supply components that create an environment that provides continuous uninterrupted service Downtime 7 the periods of time in which a system is not operational Disaster recovepy planning 7 devises plans for the restoration of computing and communications services after they have been disrupted by an event such as an earthquake ood or terrorist attack Business continuity planning 7 focuses on how the company can restore business operations after a disaster strikes It identifies critical business processes and determines action plans for handling missioncritical functions if systems go down Managed security service providers gMSSPs17monitor network activity and perform vulnerability testing and intrusion detection Example Symantec MIS audit 7 examines the f1rm s overall security environment as well as controls governing individual information systems Access control 7 consists of all the policies and procedures a company uses to prevent improper access to systems by unauthorized insiders and outsiders Authentication 7 refers to the ability to know that a person is who he or she claims to be Token 7 a physical device similar to an identification card that is designed to prove the identity of a single user It displays passcodes that change frequently Smart card 7 a device about the size of a credit card that contains a chip formatted with access permission and other data Biometric authentication 7 uses systems that read and interpret individual human traits such as ngerprints irises and voices in order to grant or deny access Packet filtering 7 examines selected elds in the headers of data packets owing back and forth between the trusted network and the internet examining individual packets in isolation Stateful inspection 7 provides additional security by determining whether packets are part of an ongoing dialogue between a sender and receiver Network Address Translation gNAT17 conceals the IP addresses of the organization s internal host computers to prevent sniffer programs outside the rewall from ascertaining them and using that information to penetrate internal systems Application proxy filtering 7 examines the application content of packets Intrusion detection system 7 feature fulltime monitoring tools placed at the most vulnerable points or hot spots of corporate networks to detect and deter intruders continually Antivirus software 7 designed to check computer systems and drives for the presence of computer viruses Enc ption 7 the process of transforming plain text or data into cipher text that cannot be read by anyone other than the sender and the intended receiver Public key encpyption 7 uses two keys one shared or public and one totally private The keys are mathematically related so that data encrypted with one key can be decrypted using only the other key Digital signature 7 an encrypted message such as the sender s name that only the sender using his or her private key can create Digital certi cates 7 data les used to establish the identity of users and electronic assets for protection of online transactions Public key infrastructure 7 the use of public key cryptography working with a certi cate authority Chapter 1 Digital Firm 7 a rm in which nearly all of the organization s significant business relationships with customers suppliers and employees are digitally enabled and mediated Business Processes 7 refer to the set of logically related tasks and behaviors that organizations develop over time to produce speci c business results and the uni ue manner in which these activities are organized and coor 39n d Key Corporate Assets intellectual property core competencies and nancial and human assets all of which are managed through digital means Speci cally business rms invest heavily in information systems to achieve six strategic business objectives Operational excellence new pro u s services and business models customer and supplier intimacy improved decision making competitive advantage and survival 0 Information System 7 de ned technically as a set of interrelated components that collect or retrieve process store and distribute information to support decision making and control in an organization It may also help managers and workers analyze problems visualize complex subjects and create new products 0 Information 7 data that have been shaped into a form that is meaningful and useful to human beings o 7 streams of raw facts representing events occurring in organizations or the physical environment before they have been organized and arranged into a form that people can effectively understand and use 0 Three Activities in an information system produce the information that organizations need to make decisions control operations analyze problems and create new products or services These activities are Input Processing and utput o m 7 captures or collects raw data from within the organization or from its external environment 0 Processing 7 converts this raw input into a meaningful form 0 Output 7 transfers the processed information to people who will use it or to the activities for which it will be used 0 Information systems also require Feedback which is output that is returned to appropriate members of the organization to help them evaluate or correct the input stage Information Technology 7 consists of all the hardware and software that a rm needs to use in order to achieve its business objectives This includes not only computers printers handheld personal digital assistants but also software such as Windows or Linux operating systems the Microsoft Of ce desktop productivity suite and the many thousands of computer programs that can be found in a typical large rm Organizations Technology Management Information Systems Information Systems Literacy 7 the broader understanding of information systems which encompasses an understanding of the management and organizational dimensions of systems as well as the technical dimensions of systems Includes a behavioral as well as a technical approach to studying information systems Computer Literacy 7 focuses primarily on knowledge of information technology Management Information Systems MIS 7 this eld tries to achieve this broader information systems literacy MIS deals with behavioral issues as well as technical issues surrounding the development use and impact of information systems used by managers and employees in the rm Organizations Senior Management makes longrange strategic decisions about products and services as well as ensures nancial performance of the rm Middle Management carries out e programs and plans of senior management and Operational Management is responsible for monitoring the daily activities of the business Knowledge Workers such as engineers scientists or architects design products or services and create new knowledge for the rm whereas Data Workers such as secretaries or clerks assist with paperwork at all levels of the rm Production or Service Workers actually produce the product and deliver the service Business Functions 7 specialized tasks performed by business organizations consist of sales and marketing manufacturing and production nance and accounting an human resources Organization Cultur 7 a fundamental set of assumptions values and ways of doing things that has been accepted by most of its members IE take college for example Some bedrock assumptions of university life are that professors know more than students the reasons students attend college is to learn and that classes follow a regular schedule Management Management s job is to make sense out of the many situations faced by organizations make decisions and formulate action plans to solve organizational problems Managers perceive business challenges in the environment they set the organizational strategy for responding to those challenges and they allocate the human and nancial resources to coordinate the work and achieve success Throughout they must exercise responsible leadership Technology Information technology is one of the many tools mangers use to cope with change 0 Computer Hardware is the physical equipment used for input processing and output activities in an information system It consists of the following computers of various shapes and sizes various input output and storage devices and telecommunications devices that link computers together Computer Software consists of the detailed preprogrammed instructions that control and coordinate the computer hardware components in an information system Data Management Technology consists of the software governing the organization of data on physical storage media Network and Telecommunications Technology consisting of both physical devices and software links the various pieces of hardware and transfers data from one physical location to another Computers and communications equipment eo can be connected in networks for sharing voice data images sound and v1d A Network links two or more computers to share data and resources such as a printer 0 Internet the world s most widely used network Intranets 7 internal corporate networks based on Internet Technology Extranets 7 private intranets extended to authorized users outside the organization and rms use such networks to coordinate their activities with other rms for making purchases collaborating on design and other interorganizational work 0 World Wide Web 7 a service provided by the intemet that uses universally accepted standards for storing retrieving formatting and displaying information in a page format on the Internet 0 IT Infrastructure 7 all of these technologies along with the people required to run and manage them represent resources that can be shared throughout the organization The IT Information Technology in astructure provides the foundation or plagfmm on which the rm can build its speci c information systems Each organization must carefully design and manage its information technology in astructure so that it has the set of technology services it needs for the work it wants to accomplish with information systems 0 F Assets ssets required to derive value from a primar investment Type Of Asset Includes Organizational Assets 0 Supportive organizational culture that values ef ciency and effectiveness 0 Appropriate business model 0 Ef cient business processes Decentralized au ority Distributed decisionmaking rights 0 Strong IS team Managerial Assets 0 Strong senior management support for technology investment and change Incentives for management innovation Teamwork and collaborative work environments 0 Training programs to enhance management decision skills 0 culture that values exibility and1 4 based deci ion making SOCial Assets 0 The Internet and telecommunications infrastructure ITenriched educational programs raising labor force computer literacy Standards both government and private sector 0 Laws and regulations creating fair stable market environments 0 Technology and service rms in adiacent market to a i 39 Sociotechnical view 7 in this view of systems optimal organizational performance is achieved by jointly optimizing both the social and technical systems used in production A sociotechnical systems perspective helps avoid a purely technological approach to information systems Chapter 2 Information systems are all about improving business processes which lie at the very heart of a business To a large extent the performance of a business rm depends on how well its business processes A company s business processes can be a source of competitive strength if they enable the company to innovate or to execute better than its rivals Business processes can also be liabilities if they are based on outdated ways of working that impede organizational responsiveness and ef ciency Information business processes increasing the ef ciency of existing processes and enabling entirely new processes Checking quality Making customers aware of the product nancial statements Evaluating job performance Sales and Marketing information Systems7 responsible for selling the organization s products and services Marketing is concerned with identifying the customers while sales is concerned with contacting customers and selling the products and Manufacturng and Production Information Systems 7 responsible for actually producing the rm s goods and services Deals 39th planning development and maintenance of production facilities the establishment of production goals the acquisition storage and availability of production materials and the scheduling of equipment facilities materials and labor required to Finance and Accounting Information System 7 the nance function is responsible for managing the rm s nancial assets such as cash stocks bonds and other investments to maximize the return on these nancial assets The accounting function is responsible for maintaining and managing the rm s nancial records 7 receipts disbursements depreciation payroll 7 to Human Resources Information Systems 7 responsible for attracting developing and maintaining the rm s workforce It supports activities such as identifying potential employees maintaining complete records on existing employees and creating M 7 Supply Chain Management 7 help businesses manage relationships with their suppliers These systems provide information to help suppliers purchasing rms distributors and logistics companies share information about orders production inventory levels and deliver goods and services ef ciently The ultimate objective is to get the right amount of their products from their source to their point of consumption with the least amount of time and with the lowest cost This is an example of an interorganiza onal system because they automate the ow of information across organizational boundaries Strategic Information Systems 7 edge over the competition 7 makes a difference profoundly alters the wayI do business sustained m 7 Transactions Processing Systems gt Operations 7 a computerized system that performs and records the daily routine transactions necessary to conduct business such as sales order entry hotel reservations payroll employee record keeping and shipping m 7 Enterprise Resource Planning also known as Enterprise Systems solves problems by collecting data from various key business processes in manufacturing and production nance and accounting sales and marketing and human resources and storing the data in a single central data repository This makes it possible for information that was previously fragmented in different systems to be shared across the rm and for different parts of the businessto work more closely together w 7 Management Information Systems gt Management 7 provide middle managers with reports on the organizations current performance This information is used to monitor and control the business and predict future performance w 7 Executive Support Systems gt Executive 7 help senior management make decisions involved with strategic issues and longterm trends both in the rm and the external environment ESS are designed to incorporate date about external events such as new tax laws or competitors but they also draw summarized information from internal MIS and DSS m 7 Decision Support Systems gtManagement 7 support nonroutine decision making for middle management They focus on problems that are unique and rapidly changing for which the procedure for arriving at a solution may not be fully prede ned in advance They use internal information from TPS and MIS but also bring in information from external sources such as current stock prices and product prices of competitors m 7 Customer Relationship Management 7 systems that help rms manage their relationships with customers They provide information to coordinate all of the business processes that deal with customers in sales marketing and service to optimize revenue customer satisfaction and customer reten 39on KM 7 Knowledge Management Systems 7 enable organizations to better manage processes for capturing and applying knowledge and expertise These systems collect all relevant knowledge and experience in a rm and make it available wherever and whenever it is needed to improve business processes and management decisions Entepprise Application 7 systems that span functional areas focus on executing business processes across the business rm and include all levels of management Enterprise applications help businesses become more exible and productive by coordinating their business processes more closely and integrating groups of processes so they focus on ef cient management of resources and customer service Electronic Business 7 EBusiness refers to the use of digital technology and the intemet to execute the major business processes in the enterprise Electronic Commerce 7 ECommerce the part of EBusiness that deals with buying and selling of goods and services over the intemet EGovernment 7 refers to the application of the intemet and networking technologies to digitally enable government and public sector agencies relationships with citizens businesses and other arms of government Information Systems Department 7 the formal organizational unit responsible for information technology services Systems Analysts 7 constitute the principal liaisons between the information systems groups and the rest of the organization They translate business problems and requirements into information requirements and s stems Information Systems Manager 7 leaders of teams of programmers and analysts project managers physical facility managers e ec rnrnunications managers or database specialists They are also managers of computer operations and data en t Chief Information Of cer C10 7 a senior manager who oversees the use of information technology in a rm They head the information systems de artrnent End User 7 representatives of departments outside of the information systems group for who applications are developed These users are playing an increasingly large role in the design and development of information systems Chapter 3 Organization 7 a stable formal social structure that takes resources from the environment and processes them to produce outputs This technical de nition focuses on three elements of an organization Capital and Labor are primary production factors provided by the environment The organization the rm transforms these inputs into products and services in a production function The products and services are consumed by environments in return for supply inputs Routines 7 o en called Standard Operating Procedures are precise rules procedures and practices that have been developed to cope with virtually all expected situations As employees learn these routines they become highly productive and ef cient and the rm is able to reduce its costs over time as ef ciency increases a a simple structure and is managed an entrepreneur serving as its a standard products It is a centralized a different product or service all topped by one General Motors on the expertise and Dominated by hospitals environments Consists of large groups of specialists organized Rand Corporation into shortlived multidisciplinary teams and has weak central Transaction Cost Theog 7 rms and individuals seek to economize on transaction costs much as they do on production costs This has been traditionally done through vertical integration by getting bigger hiring more employees and buying their own suppliers and distributors Agency Theory 7 the rm is viewed as a nexus of contacts among selfinterested individuals rather than as a uni ed pro t maxirnizing entity A principal owner employs agents employees to perform work on his or her behalf As rms grow in size and scope agency costs or coordination costs rise because owners must expend more and more effort supervising and managing employees IT pushes decisionmaking rights lower in the organization because lowerlevel employees receive the information they need to make decisions without supervision To deliver genuine bene ts information systems must be built with a clear understanding of the organization in which they will be used In our experience the central organizational factors to consider when planning a new system are the following o The environment in which the organization must ction The structure of the organization hierarchy specialization routines and business processes The organization s culture and politics The type of organization and its style of leadership The principal interest groups affected by the system and the attitudes of workers who will be using the system The kinds of tasks decisions and business processes that the information system is designed to assist Competitive Forces Model 7 provides a general view of the rm its competitors and the rm s environment In this model ve competitive forces shape the fate of the rm They are Traditional Competitors New Market Entrants Substitute Products and Services Customers and Suppliers 7 directly links consumer behavior to distribution and production and supply chains offer individually tailored products or services using the same production resources as mass Value Chain Model 7 highlights speci c activities in the business where competitive strategies can be applied and where information systems are most likely to have a strategic impact This model identi es speci c criticalleverage points where a rm can use information technology most effectively to enhance its competitive position Prima Activitie 7 most directly related to the production and distribution of the rm s products and services which create value for the customer These include inbound logistics operations outbound logistics sales and marketing and service Support Activitie 7 make the delivery of primary activities possible and consist of organization infrastructure administration and management human resources employee recruiting hiring and training technology improving products and the production process and procurement purchasing input Benchrnar 39ng 7 involves comparing e ef ciency and effectiveness of your business processes against strict standards and then measuring performance against those standards lndustry Best Practice 7 usually identi ed by consulting companies research organizations government agencies and industry associations as the most successful solutions or problemsolving methods for consistently and effectively achieving a business objective Value Web 7 a collection of independent rms that use technology to coordinate their value chains to produce a product or service for a market collective y Core Competency 7 an activity for which a rm is a worldclass leader It may involve being the world s best miniature parts designer the best package delivery service or the best thin lm manufacturer In general a core competency relies on knowledge that is gained over many years of experience and a rstclass research organization or simply key people who follow the literature and stay abreast of new external knowled e Network Economics 7 Model of strategic systems at the industry level based on the concept of a network where adding another participant entails zero marginal costs but can create much larger marginal gains Virtual Company 7 also known as a virtual organization uses networks to link people assets and ideas enabling it to ally with other companies to create and distribute products and services without being limited by traditional organizational boundaries or physical locations One company can use the capabilities of another company without being physically tied to the company Business Ecosystem 7 another term for these loosely coupled but interdependent networks of suppliers distributors outsourcing rms transportation service rms and technology manufacturers Strategic Transition 7 when adopting a new kind of strategic system it generally requires changes in business goals relationships with customers and suppliers and business processes These sociotechnical changes affecting both social and technical elements or an organization can be considered a strategic transition which is a movement between levels of sociotechnical systems


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