Principles of Management Information Systems
Principles of Management Information Systems INFS 3100
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This 187 page Class Notes was uploaded by Cordie Ernser on Wednesday September 23, 2015. The Class Notes belongs to INFS 3100 at Middle Tennessee State University taught by Stanley Gambill in Fall. Since its upload, it has received 22 views. For similar materials see /class/213018/infs-3100-middle-tennessee-state-university in Computer Information Systems at Middle Tennessee State University.
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MIS CHAPTER 8 ECOMMERCE Hossein BIDGOLI MIS Chapter 8 L01 L02 L03 L04 L05 41 w Iearning outcomes Define ecommerce and describe its advantages disadvantages and business models Explain the major categories of ecommerce Describe the businesstoconsumer ecommerce cycle Summarize the major models of businessto business ecommerce Describe mobile and voicebased ecommerce learning outcomescont d L06 Explain two supporting technologies for e commerce MIS Chapter 8 Defining ECommerce Ebusiness Activities a company performs for selling and buying products and services using computers and communication technologies 0 Ecommerce Buying and selling goods and services over the Internet Builds on traditional commerce by adding the flexibility that networks offer and the availability of the Internet MIS Chapter 8 Defining ECommerce cont d Business applications that use the Internet Buying and selling products and services Collaborating with other companies Communicating with business partners Gathering business intelligence on customers and competitors Providing customer service Making software updates and patches available Offering vendor support Publishing and disseminating information MIS Chapter 8 The Value Chain and ECommerce Value chain Michael Porter 1985 Series of activities designed to meet business needs by adding value or cost in each phase of the process 0 Supporting activities Organizational infrastructure human resource management technological development and procurement MiChae39 Pbl l r39S Value Chain organizational structure hU man I39ESOU rte I39I39l nagern ent technological development P I39D CU rement service In bo un d logistics operations outboun d loglstl cs m arketing 8 sales Mls Chapter 3 7 2011 Course Technology a part ofCengage Learning The Value Chain and ECommerce cont d 0 Primary activities Inbound logistics Operations Outbound logistics Marketing and sales Service 0 The Internet Increases the speed and accuracy of communication between suppliers distributors and customers Low cost means companies of any size can participate in value chain integration MIS Chapter 8 ECommerce versus Traditional Commerce 0 Internet and telecommunication technologies play major role 0 No physical store Clickandbrick ecommerce Mix of traditional and e commerce 139qu 31 ECommer e versus Traditional Commerce Activity Traditional commerce E mmmerce Product information Magazines yers Web sites on li ne catalogs Business communication Regularmail phone calls Email Check product availability Phone calls faxes letters EmailWeb sites and extranets Order generation Printed forms Email Web sites Product acknowledgments Phone calls faxes E mailWeb sites and EDI Invoice generation Printed forms Web sites Mis Chapter 3 l Dell Computer ECommerce in Action Sells computers hardware and software directly to customers 0 Lower manufacturing costs faster delivery and more customized products and services Justintime JIT inventory system Keep inventory around for no more than 8 to 11 days Advantages and Disadvantages of ECommerce Advantages Better relationships with suppliers customers business partners Price transparency Round the clock and globe operations More information on potential customers Increasing customer involvement Improving customer service Increasing flexibility and ease of shopping MIS Chapter 8 Advantages and Disadvantages of ECommerce cont d Increasing the number of customers Increasing opportunities for collaboration with business partners Increasing return on investment because inventory needs are reduced Offering personalized services and product customization Reducing administrative and transaction costs MIS Chapter 8 Advantages and Disadvantages of ECommerce cont d Disadvantages Bandwidth capacity problems Security issues Accessibility Acceptance ECommerce Business Models 0 Ecommerce companies focus their operations in different parts of the value chain 0 Types Merchant Brokerage Advertising Mixed Informediary Subscription BusinesstoConsumer ECommerce nun 32 MaJor ECammerce Categoms Consumer Business Government Commr EEC QB C33 Busimn EEC 823 BEG Gaulmum GEE GEE 15243 BusinesstoConsumer ECommerce cont d Companies sell directly to consumers 0 Examples Amazoncom Barnesandnoblecom Onsalecom Types Pureplay Brick and mortar stores with virtual storefronts BusinesstoBusiness ECommerce Involves electronic transactions between businesses 0 Electronic data interchange EDI and electronic funds transfer ElT Fastest growing segment of ecommerce Uses Purchase orders invoices inventory status shipping logistics business contracts and other operations 0 Example Walmart MIS Chapter 8 ConsumertoConsumer ECommerce Involves business transactions between users 0 Online classified ads Craigslistorg Online auction sites eBaycom MIS Chapter 8 ConsumertoBusiness ECommerce Involves people selling products or services to businesses 0 Example Creating online surveys Search for sellers of a product and services Pricelinecom MIS Chapter 8 Government and Nonbusiness ECommerce Egovernment applications 0 Categories Governmentto citizen GZC Governmentto business GZB Governmenttogovernment GZG Governmentto employee GZE Government and Nonbusiness ECommerce cont d Nonbusiness organizations Universities Nonprofits Political and social organizations Organizational or lntrabusiness ECommerce Involves ecommerce activities that take place inside an organization 0 Can include Exchange of goods services or information among employees Conducting training programs and offering human resource services 0 Supporting activities in Porter s value chain A BZC ECommerce Cycle 0 Major activities Information sharing Ordering Payment Fulfillment Service and support MIS Ch apter 8 M tilll ilp BZB ECommerce A Second Look BZBs use these additional technologies extensively Intranets Extranets Virtual private networks Electronic data interchange EDI Electronic funds transfer EFI39 Lowers production costs and improves accuracy By eliminating many laborintensive tasks Major Models of BZB ECommerce Three major types of 328 ecommerce models based on who controls the marketplace Seller Buyer Intermediary thirdparty Fourth model called trading partner agreements SellerSide Marketplace 0 Most popular 328 model 0 Sellers who cater to specialized markets come together to create a common marketplace for buyers Eprocurement Enables employees in an organization to order and receive supplies and services directly from suppliers Can also automate some buying and selling activities 0 Major vendors of ecommerce and 328 solutions include 12 Technologies IBM Oracle and SAP MIS Chapter 8 EProcurement at Schlumberger Schlumberger Oil field services provider Eprocurement system for order processing Has reduced the cost per order by streamlining paperwork Replaced a centralized electronic data interchange EDI procurement system Easytouse interface BuyerSide Marketplace 0 Buyer or a group of buyers opens an electronic marketplace Invites sellers to bid on announced products or requests for quotation RFQs Buyers can Manage the procurement process more efficiently Lower administrative costs Implement uniform pricing 0 Large corporations such as General Electric or Boeing MIS Chapter 8 ThirdParty Exchange Marketplace Controlled by a third party Marketplace generates revenue from the fees charged for matching buyers and sellers 0 Usually active in vertical or horizontal market 0 Offers suppliers a direct channel of communication to buyers through online storefronts Worldbidcom A ThirdParty Exchange Marketplace 0 International marketplace Designed to help small to midsized companies buy and sell products or services domestically or internationally Provides Trade leads Request for proposals for private and government organizations worldwide Trading Partner Agreements Automate negotiating processes and enforce contracts between participating businesses 0 Business partners can send and receive bids contracts and other information needed when offering and purchasing products and services Enables customers to submit electronic documents via the Internet that previously required hard copies with signatures Using XML Mobile and Voice Based ECommerce Mobile commerce mcommerce Based on Wireless Application Protocol WAP Using handheld devices such as smart phones or PDAs to conduct business transactions 0 Supporting technologies Wireless widearea networks and 3G networks Shortrange wireless communication technologies 0 Examples iPhone apps Internet Explorer Mobile 8 Google mobile I we MIS Chapter Mobile and Voice Based ECommerce cont d Voicebased ecommerce Rely on voice recognition and texttospeech technologies Can conduct business using ewallets Security features Call recognition voice recognition fixed shipping address ECommerce Supporting Technologies 0 Electronic payment systems 0 Web marketing 0 Search engine optimization Electronic Payment Systems 0 Electronic payment Money or scrip that is exchanged only electronically Payment cards Credit debit charge and smart cards 0 Smart cards Credit card sized Contains an embedded microprocessor chip storing important financial and personal information Electronic Payment Systems cont d Other types of payments Ecash Echeck Ewallets PayPal Micropayments Web Marketing 0 Uses the Web and its supporting technologies to promote goods and services 0 Terms Ad impression Banner ads Click Cost per thousand CPM Cost per click CPC Clickthrough rate CTR Cookie MIS Chapter 8 Web Marketing cont d Hit Meta tag Page view PV Popup ads Popunder ads Splash screen Spot leasing Search Engine Optimization 0 Method for improving the volume or quality of traffic to a Web site 0 Some companies offer SEO service Editing a site s contents and HTML code to increase its relevance to specific keywords Recommendations for optimizing a Web site Keywords Page title Inbound links M I S CHAPTER7 INTRANETS AND EXTRANETS Hossein BIDGOLI MIS Chapter 7 learning outcomes L01 L02 L03 L04 L05 Describe the makeup of the Internet and World Wide Web Discuss navigational tools search engines and directories Describe common Internet services Summarize widely used Web applications Explain the purpose of intranets learning outcomescont d L06 Explain the purpose of extranets L07 Summarize new trends in the Web 20 and 30 eras MIS Chapter 7 The Internet and the World Wide Web 0 Internet Worldwide collection of millions of computers and networks Derived from the term internetworking No one actually owns or runs the Internet Started in 1969 as a US Department of Defense project called Advanced Research Projects Agency Network ARPANET Evolved into National Science Foundation Network NSFNET in 1987 The Internet and the World Wide Web cont d Internet backbone Foundation network linked with fiberoptic cables Can support very high bandwidth Several private companies operate their own Internet backbones Connect network access points NAPs World Wide Web WWW or the Webquot Graphical interface to the largely textbased Internet in 1989 The Internet and the World Wide Web cont d Hypermedia Documents can include embedded references to audio text images video and other documents Hypertext Embedded references in hypermedia documents Links users can click to follow a particular thread Domain Name System 0 Domain names Unique identifiers of computer or network addresses on the Internet 0 Internet Protocol IP address 20877188166 Assigned by the Internet Corporation for Assigned Names and Numbers ICANN Domain Name System DNS Domain names are converted to IP addresses Domain Name System cont d Uniform resource locators URLs Identify a Web page the address of a document or site on the Internet Suffix indicating the toplevel domain TLD it belongs to 0 TLD Organizational gTLDs Countrycode ccTLDs Understand the parts of a URL httpwwwcsubeduhbidgoibookshtml MIS Chapter 7 1w 11 Generic Tupibevel Damalns gTLD Purpose com Commercial organizations such as Microsoft 5611 Educational institutions such as Caiifomia State University int lnmemational organiza ons such as he United Nations mi US miitaryorganizau ons such as the U5Amty gav LLS government cwganimtions such as the utemal Revenue Serv ce net Backbom regional and commercia networks for examplg the National Science Foundation39s Internet Net work information Center mg Other ommindons such as rematch and nonpro t organizations for mplle the lmernetTuwn Ha What Is HTML Hypertext Markup Language HTML Language used to create Web pages 0 Structure for an HTML document ltHTMLgt ltHEADgt Enter the pageis descrpton ltHEADgt ltBODYgt Enter the pageis content ltBODYgt ltHTMLgt MIS Chapter 7 Types of Internet Connections Symmetric DSL SDSL Up to 15 Mbps in both directions 0 Asymmetric DSL ADSL Upstream rates 35 Mbps Downstream rates typically 24 Mbps 0 Very High Speed DSL VDSL Downstream upstream transmission rate up to 100 Mbps over short distances 0 T1 or T3 lines Equivalent of 24 conventional telephone lines MIS Chapter 7 Navigational Tools Search Engines and Directories Navigational tools Used to travel from sitetosite or to surf the mmma Search engines Give you an easy way to look up information and resources on the Internet Directories Indexes of information based on keywords in documents Make it possible for search engines to find what you re looking for MIS Chapter 7 Navigational Tools Graphical Web browsers Microsoft Internet Explorer IE Mozilla Firefox Google Chrome and Apple Safari Menu options View browsing history Bookmarking Setting viewing preferences Search Engines and Directories 0 Search engine Googlecom or Askcom Information system that enables users to retrieve data from the Web by searching for information using search terms 0 Three step process Crawling the Web Indexing The search process Search Engines and Directories cont d Directories Organize information into categories Types Automated crawlerbased Human powered A new search platform from Microsoft Bingcom Decision enginequot Internet Services 0 Most services made possible by the TCP suite of protocols Simple Message Transfer Protocol SMTP Post Office Protocol POP Popular services Email newsgroups discussion groups Internet Relay Chat instant messaging and Internet telephony Email 0 One of the most widely used services on the Internet 0 Main types Webbased email Clientbased email 0 Email programs include Folders for organization Address books and distribution groups Spell checkers Delivery notification MIS Chapter 7 Newsgroups and Discussion Groups 0 Discussion groups Formed for people to exchange opinions and ideas on a specific topic Group members can post messages or articles that others in the group can read Newsgroups Typically more general and can be established for any topic Allow people to get together for fun or for business purposes Instant Messaging Internet Relay Chat IRC Enables users in chat rooms to exchange text messages with people in other locations in real time 0 Instant messaging IM Service for communicating with others via the Internet in a private chat roomquot Many IM applications are available MIS Chapter 7 Internet Telephony Internet telephony Using the Internet rather than the telephone network to exchange spoken conversations Voice over Internet Protocol VoIP Requires highspeed Internet connection and microphone or headset International and other longdistance calls are much less expensive Used to route traffic starting and ending at public switched telephone network phones Call quality has been improving MIS Chapter 7 Web Applications 0 Services and products for a wide range of customers at more competitive prices and with increased convenience Can be used with minimum costs MIS Chapter 7 Tourism and Travel 0 Travel Web sites allow customers to book tickets for plane trips and cruises etc o InfoHubcom httpinfohubcom Specialty travel are offered 0 Other examples of sites that offer all types of tourism and travel services Expediacom Travecom Travelocity com Pricelinecom Hotelscom and Yahoo Travel Publishing 0 Major publishers in the United States and Europe offer Web sites with Descriptions of forthcoming books Sample chapters Online ordering Include search features Higher Education 0 Most universities have Web sites offering Information about departments programs faculty and academic resource Virtual tours of the campus 0 Online degree programs and Possible for students who couldn t attend school otherwise to enroll in classes MIS Chapter 7 Real Estate 0 Real estate Web sites Provide millions of uptodate listings of homes 0 Buyers and sellers can Review neighborhoods schools and real estate prices 0 Customers can Find realtors and brokerage firms and learn home buying tips 0 Major real estate Web sites Remax wwwremaxcom Century 21 wwwcentury21com Prudential wwwprudentiacom and ERA wwwera com IlT39ilng Employment 0 Services available Expert advice and tools for managing your career Resume assistance including tools for creating professionallooking resumes Job search tutorials Posting and distributing resumes Job alerts Searches by company industry region or category Announcements of job fairs Career tests to see what career is right for you Salary calculators MIS Chapter 7 Financial Institutions 0 Online banking services 0 Email to communicate with customers and send account statements and financial reports Helps banks reduce the time and costs of communicating via phone 0 Consumer acceptance has been slow 0 Banking services available via the Internet MIS Chapter 7 Software Distribution Vendors distribute software on the Internet as well as drivers and patches Antivirus updates Small fast and easy to download 0 Large programs not distributed via Internet 0 Online copyrightprotection schemes Healthcare 0 Possible benefits of Internet use in healthcare Store patient records on the Internet Accessible from one central location Potential problems with information privacy accuracy and currency Telemedicine httptelemedtodaycom Enables medical professionals to conduct remote consultation diagnosis and conferencing Telepresence surgery Online prescription drugs MIS Chapter 7 Politics 0 Most political candidates now make use of Web sites AnnoundngmaHOHns Publicizing voting records Notices of appearances and debates Fundraising Possible use for legislators voting online Security issues MIS Chapter 7 Intranets Network within an organization that uses Internet protocols and technologies for collecting storing and disseminating useful information that supports business activities 0 Also called corporate portals For internal use by employees Many companies also allow trusted business partners to access their intranets 0 Different from a LAN 0 Define and limit access carefully MIS Chapter 7 The Internet versus Intranets mu 1 The Internet versus Ina39anetts Key Feature Internet Intranet User Anybody Approved usets onDy Geog39aphicalt scope Unlimith Limited 3 unlimited Speed Slawer than an imranet Faster than the Internet Security Less than an intranets More than the lmarnet39s user access is reshrimed more MI Chapter 7 Applications of an Intranet Human resources management 0 Sales and marketing 0 Production and operations 0 Accounting and finance 0 Help organizations move from a calendar or schedulebased documentpublishing strategy to one that s based on events or need Reduce the costs and time of document production Extranets Secure network Uses the Internet and Web technologies to connect intranets of business partners 0 Type of interorganizational system 108 Electronic funds transfer EFI39 Electronic data interchange EDI 0 DMZ Refers to the demilitarized zone an area of the network that s separate from the organization s LAN MIS Chapter 7 Extranets cont d Advantages of extranets Coordination Feedback Consumer satisfaction Cost reduction Expedited communication MIS Chapter 7 New Trends The Web 20 and 30 Eras 0 Web 20 Trend of Web applications that are more interactive than traditional Web applications Collaboration or ecollaboration Web 30 Provides context for searching online information Focuses on intelligent Web applications using various applications of artificial intelligent technologies MIS Chapter 7 Tabla 74 Web 70 versus Web 20 Web 10 Web 20 DoubleClick used for online marketing Googile MSense Ofoto sharing digital photos Flickr Akamai streaming media services BitTorrent mp3com 1T U nes Britannica Online Mkipedia Personal Web sites Biogging e te Domain name speculation Page views Content management systems ERoom and Groove collaboration software Posting a movie le on a personalWeb page Upcomingorg and Events and Venues Database EVE Di a type ofwiki for event planning Search engine optimization Cost per click iMkis Coliabo ion portals such as iBM Quickr and Microsoft Sharepoint YouTu be Blogs Short for Weblog Journal or newsletter that s updated frequently and intended for the general public 0 Many sites offer free space for blogs and even include posting photos Such as Bloggercom Blogs on Web sites dedicated to a particular topic or organization Updated with the latest news and views Wikis Allows users to add delete and sometimes modify content Online encyclopedia Wikipediaorg Information user can also be an information provider Issue with quality of information Wikis have caught on at many companies MIS Chapter 7 Social Networking Sites Broad class of Web sites and services that allow users to connect with friends family and colleagues online 0 Popular social networking sites Facebook MySpace and LinkedIn Also popular for business use 0 Twitter Response or comment no longer than 140 characters MIS Chapter 7 A RSS Feeds Really simple syndicationquot Fast easy way to distribute Web content in Extensible Markup Language XML format XML Flexible method for creating common formats for information Tags represent the kind of content being posted and transmitted Defines data with a context Podcasting Electronic audio file posted on the Web for users to download to their mobile devices 0 Has a specific URL and is defined with an XML item tag Usually collected by an aggregator iTunes or iPodder Users can subscribe to a podcast The nternet2 Collaborative effort involving more than 200 US universities and corporations to develop advanced Internet technologies and applications For higher education and academic research Gigapop Local connection pointofpresence Main function is the exchange of 12 traffic with a specified bandwidth Relies on the NSFNET and MCI s very highspeed backbone network service MIS Chapter 7 The nternet2 cont d 0 Applications of Internet2 include Learningware Digital Library Teleimmersion Virtual laboratories MIS Chapter 7 lt m 93me Ugtgtwgtmm mltmmltm Ugtgt ltltgtmmIOcmmm gt20 Ugtgt ltgt m Iommmm w QOE MIS Chapter 3 L01 L02 L03 L04 L05 Iearning outcomes Define a database and a database management system Explain logical database design and the relational database model Define the components of a database management system Summarize recent trends in database design and use Explain the components and functions of a data warehouse learning outcomescont d L06 Describe the functions of a data mart MIS Chapter 3 Databases 0 Data base Collection of related data that can be stored in a central location or in multiple locations Usually a group of files 0 File Group of related records All files are integrated Record Group of related fields 0 Data hierarchy MIS Chapter 3 MIS Chapteri File arm BETTIE Fleld Databases cont d Critical component of information systems Any type of analysis that s done is based on data available in the database 0 Database management system DBMS Creating storing maintaining and accessing database files 0 Advantages over a flat file system MIS Cha Database pter 3 Types of Data in a Database 0 Internal data Collected within organization 0 External data Sources BI in Action Law Enforcement 0 Business intelligence BI Used in law enforcement as well as in the business world 0 Richmond Virginia System generates BI reports that help pinpoint crime patterns Allocate manpower to days and locations where crime likely to occur MIS Chapter 3 Methods for Accessing Files Sequential file structure Records organized and processed in numerical or sequential order Organized based on a primary keyquot Usually used for backup and archive files Because they need updating only rarely Random access file structure Records can be accessed in any order Fast and very effective when a small number of records need to be processed daily or weekly Methods for Accessing Files cont d Indexed sequential access method ISAM Records accessed sequentially or randomly Depending on the number being accessed 0 Indexed access Uses an index structure with two parts Indexed value Pointer to the disk location of the record matching the indexed value Logical Database Design 0 Physical view How data is stored on and retrieved from storage media 0 Logical view How information appears to users How it can be organized and retrieved Can be more than one logical view MIS Chapter 3 Logical Database Design cont d Data model Determines how data is created represented organized Includes Data structure Operations Integrity rules Hierarchical model Relationships between records form a treelike structure MIS Chapter 3 MIS Chapteri Siblings Siblings Siblings Logical Database Design cont d Network model Similar to the hierarchical model Records are organized differently Customer number lnvnite number Method of payment MIS Chapter 3 The Relational Model Relational model Uses a twodimensional table of rows and columns of data 0 Data dictionary Field name Field data type Default value Validation rule MIS Chapter 3 The Relational Model cont d 0 Primary key Unique identifier 0 Foreign key Establishes relationships between tables 0 Normalization Improves database efficiency Eliminates redundant data 1NF through 3NF or 5NF The Relational Model cont d Data retrieval Select Project Join Intersection Union Difference Components of a DBMS Database engine 0 Data definition 0 Data manipulation Application generation 0 Data administration Database Engine 0 Heart of DBMS software Responsible for data storage manipulation and retrieval Converts logical requests from users into their physical equivalents Data Definition 0 Create and maintain the data dictionary 0 Define the structure of files in a database Adding fields Deleting fields Changing field size Changing data type Data Manipulation Add delete modify and retrieve records from a database 0 Query language Structured Query Language SQL Standard fourthgeneration query language used by many DBMS packages SELECT statement Query by example QBE Construct statement of query forms Graphical interface Application Generation 0 Design elements of an application using a database Data entry screens Interactive menus Interfaces with other programming languages MIS Chapter 3 Data Administration 0 Used for Backup and recovery Security Change management 0 Create read update and delete CRUD Database administrator DBA Individual or department Responsibilities Recent Trends in Database Design and Use Datadriven Web sites Natural language processing Distributed databases Clientserver databases Objectoriented databases DataDriven Web Sites Datadriven Web site Interface to a database Retrieves data and allows users to enter data Improves access to information 0 Useful for Ecommerce sites that need frequent updates News sites that need regular updating of content Forums and discussion groups Subscription services such as newsletters MIS Chapter 3 Distributed Databases 0 Distributed data base Data is stored on multiple servers placed throughout an organization 0 Reasons for choosing Approaches for setup Fragmentation Replication Allocation Security issues ClientServer Databases 0 Client server database Users workstations clients linked in a local area network LAN to share the services of a single server Server processes data Returns only records meeting request MIS Chapter 3 ObjectOriented Databases Objectoriented database Object consists of attributes and methods Encapsulation Grouping objects along with their attributes and methods into a class Inheritance New objects can be created faster and more easily by entering new data in attributes Interaction with an objectoriented database takes places via methods MIS Chapter 3 Data Warehouses Data warehouse Collection of data used to support decisionmaking applications and generate business intelligence Multidimensional data 0 Characteristics Subject oriented Integrated Time variant Type of data Purpose MIS Chapter 3 Input 0 Variety of sources External Databases Transaction files ERP systems CRM systems MIS Chapter 3 A Data Warehouse at KeyCorp An IBM Solution KeyCorp Uses a data warehouse that Consolidates customer and account information Provides uptodate comprehensive information for marketing analysis decision making and customer relationship management applications 0 The data warehouse uses The IBM S390 product Decisionmaking and reporting tools ETL Extraction transformation and loading ETL Extraction Collecting data from a variety of sources Converting data into a format that can be used in transformation processing 0 Transformation processing Make sure data meets the data warehouse s needs 0 Loading Process of transferring data to the data warehouse MIS Chapter 3 Balmll data um Tnnuctlon lu Enurpmo moum plannhg cymms CustomermlatlonsMp mnngomom sgnuns 39 gt OLAP analysis Storage 0 Raw data 0 Summary data Metadata MIS Chapter 3 Output 0 Data warehouse supports different types of analysis Generates reports for decision making 0 Online analytical processing OLAP Generates business intelligence Uses multiple sources of information and provides multidimensional analysis Hypercube Drill down and drill up MIS Chapter 3 Cannod Goods Dairy Produc Prnduct gt MIS Chapter 3 2011 Course Technology a pan of Cengage Learning Output cont d o Datamining analysis Discover patterns and relationships 0 Reports Crossreference segments of an organization s operations for comparison purposes Find patterns and trends that can t be found with databases Analyze large amounts of historical data quickly MIS Chapter 3 Data Marts Data mart Smaller version of data warehouse Used by single department or function 0 Advantages over data warehouses More limited scope than data warehouses MIS Chapter 3 A MIS CHAPTER 1 INFORMATION SYSTEMS AN OVERVIEW Hossein BIDGOLI MIS Chapter1 L01 L02 L03 L04 L05 l L lwvmmm 39 7 v Iearning outcomes Discuss common applications of computers and information systems Explain the differences between computer literacy and information literacy Define transaction processing systems and management information systems Describe the four major components of an information system Discuss the differences between data and information MIS Chapter1 learning outcomescont d L06 L07 L08 L09 Explain the importance and applications of information systems in functional areas of a business Discuss how information technologies are used to gain a competitive advantage Explain the Five Forces Model and strategies for gaining a competitive advantage Summarize the future outlook of information systems Computers and Information Systems in Daily Life 0 Computers and information systems are all around you Online classes Grading Grocery and retail PDA and smartphones Internet 0 Information systems versus information tech nologyquot TJX Companies Inc Credit Card Breach January 2007 0 Identity thieves stole more than 465 million credit cards Used sophisticated hacking techniques to break through security systems Stored the stolen information on servers in Eastern Europe and the United States 0 Shows the international nature of cybercrime Computer Literacy and Information Literacy Computer literacy Having skills in using productivity software 0 Information literacy Understanding the role of information in generating and using business intelligence 0 Business intelligence BI Provides historical current and predictive views of business operations and environments Gives organizations a competitive advantage in the marketplace MIS Chapter1 The Beginning Transaction Processing Systems 0 Transaction processing systems TPSs Focus on data collection and processing Cost reduction Operations repetitive Human involvement minimal Management Information Systems 0 Management information system MIS Organized integration of hardware and software technologies data processes and human elements Designed to produce timely integrated relevant accurate and useful information a For decisionmaking purposes 0 Include Hardware components MIS software Processes MIS Chapter1 Management Information Systems cont d 0 Designing an M18 Define objectives Collect and analyze data Provide information in useful format 0 Used in both the private and public sect Many organizations use information systems to gain a competitive advantage Information Technology at Hertz Car Rental Company Mainframebased decision support system DSS Executive information system EIS Analyze essential information from both external and internal sources Manipulate and refine data to make it more meaningful Major Components of an Information System 0 Data 0 Database 0 Process 0 Information MIS haptei391 Data 0 Data Input to the system 0 Sources of data External Internal 0 Time orientation 0 Can be collected in different forms Aggregated Disaggregated MIS Chapter1 Database 0 Database Heart of an information system Collection of all relevant data organized in a series of integrated files 0 Essential for the success of any information system Managed with database management system DBMS eg Oracle Reduces personnel time needed to gather process and interpret data manually MIS Chapter1 Process 0 Process Generates the most useful type of information for decision making 0 Generally includes transactionprocessing reports and models for decision analysis 0 Includes a wide range of models to support all levels of decision making MIS Chapter1 Information 0 Information Output of an information system Facts that have been analyzed by the process component 0 Quality of information Timeliness Integration with other data and information Consistency and accuracy Relevance MIS Chapter1 Information cont d User interface Must be flexible and easy to use Graphical user interfaces GUIs Ultimate goal of an information system Generate business intelligence BI MIS Chapter1 Examples of Information Systems 0 Example 1 a university State university stores all student data in a database Builtin query capability Other types of analysis can be done 0 Example 2 Teletech International textile company Database stores data on products suppliers sales personnel costs Process components Forecasting models MISChapter1 Using Information Systems and Information Technologies 0 Information technologies Achieve goals of information systems 0 Examples Internet Databases POS Systems RFID tags Information Technologies at Home Depot POS system Fast customer service Improved inventory management 0 Wireless network Efficient instore communication 0 Web site Communicate with customers Increase sales with online orders 0 RFID tags Better manage inventory MIS Chapter1 The Importance of Information Systems 0 Information Second most important resource in any organization 0 Four Ms of resources Manpower Machinery Materials Money MISChapter1 The Importance of Information Systems cont d 0 Personnel information system PIS or human resource information system HRIS Designed to provide information that helps decision makers in personnel carry out their tasks more effectively Use Web technologies 0 Main difference between an intranet and the Internet Intranets are private and the Internet is public The Importance of Information Systems cont d Logistics information system LIS Designed to reduce the cost of transporting materials Maintains safe and reliable delivery 0 Manufacturing information system MFIS Manages manufacturing resources Companies can reduce manufacturing costs increase product quality and improve inventory decisions The Importance of Information Systems cont d 0 Financial information system FIS Provides information to financial executives in a timely manner 0 Marketing information system MKIS Improve marketing decisions Provide timely accurate and integrated information about the marketing mix Information Technologies at UPS 0 UPS Delivery Intercept Webbased service that allows customers to intercept and reroute packages before they are delivered 0 Package Flow Technology WallViart Stores Inc WalMart Satellite Network Largest private satellite communication system in the United States Links branch stores with the home office in Bentonville Arkansas POS systems RetailLink Electronic data interchange RFID technologies Using Information Technologies for a Competitive Advantage Michael Porter Professor at Harvard Business School Identified three strategies for competing in the marketplace successfully Overall cost leadership Differentiation Focus Using Information Technologies for a Competitive Advantage cont d Information systems Help organizations reduce the cost of products and services Assist with differentiation and focus strategies Can help bottomline ancl topline strategies 0 Enterprise systems Supply chain management SCM Customer relationship management CRM Enterprise resource planning ERP Collaboration software MIS Chapteri Using Information Technologies for a Competitive Advantage oont39d Differentiation strategies Make products and services different from competitors Examples Apple Amazoncom Using Information Technologies for a Competitive Advantage oont39d Focus strategies Concentrate on a specific market segment Attempt to achieve a cost or differentiation advantage Examples Apple Abercrombie amp Fitch Nordstrom Porter s Five Forces Model Understanding the Business Environment 0 Five Forces Model Michael Porter For analyzing an organization its position in the marketplace and how information systems could be used to make it more competitive Buyer power Supplier power Threat of substitute products or services Threat of new entrants Rivalry among existing competitors MIS Chapter1 MIS hapter1 Buga mlng Pane a Supplier quotarea of Emma Pruduns or Services Threat M In Entraml Bargaining Paul of Bugm Porter s Five Forces Model Understanding the Business Environment cont39d 0 Buyer power High when customers have many choices Low when they have few choices Limit buyers choices by offering services that make it difficult for customers to switch Supplier power High when customers have fewer options Low when customers have more options Use information systems to make their products and services cheaper MIS Chapter1 Porter s Five Forces Model Understanding the Business Environment cont39d Threat of substitute products or services High when many alternatives for an organization s products or services available Add services to make organization more distinct Add fees to discourage customers from switching Threat of new entrants Low when duplicating a company s product or service is difficult Use focus strategies to ensure that this threat remains low Porter s Five Forces Model Understanding the Business Environment cont39d Rivalry among existing competitors High when many competitors occupy the same marketplace position Low when there are few competitors Information Technology at Boeing Intelligent information systems Artificial intelligence technologies Expert systems Future Outlooks Hardware and software costs continue to decline Processing information less expensive in the future Artificial intelligence and related technologies will continue to improve and expand Computer literacy will improve 0 Networking technology will improve 0 Personal computers will continue to improve in power and quality MIS Chapter1 Future Outlooks oont39d Internet growth and acceptance will continue 0 Computer criminals will become more sophisticated Protecting personal identity information will become more difficult MIS Chapter1 Information Technologies at Charles Schwab First discount brokerage to offer automated aroundtheclock phone service Internet Wired and wireless networks Automated data centers 0 Comprehensive sales system 0 Customer information system Summary 0 Examples of uses for computers and information systems 0 Difference between computer literacy and information literacy Management information system MIS Data database process and information 0 Porter Three competitive strategies Five Forces Model MIS Chapter1 MIS CHAPTER 5 PROTECTING INFORMATION RESOURCES Hossein BIDGOLI MIS Chapter 5 L01 L02 L03 L04 mu 3 mamama r Iearning outcomes Describe basic safeguards in computer and network security Explain the major security threats Describe security and enforcement measures Summarize the guidelines for a comprehensive security system including business continuity planning Computer and Network Security Basic Safeguards Critical for most organizations Especially in recent years with hackers becoming more numerous and adept at stealing and altering private information Hackers use a variety of tools to break into computers and networks Sniffers password crackers and rootkits Journals PhraCand 2600 The Hacker Quartery Computer and Network Security Basic Safeguards cont d Comprehensive security system Protects an organization s resources Including information and computer and network equipment emails invoices transferred via electronic data interchange EDI new product designs marketing campaigns and financial statements Threats Include sharing passwords with coworkers leaving a computer unattended while logged on to the network or even spilling coffee on a keyboard Computer and Network Security Basic Safeguards cont d Comprehensive security system Includes hardware software procedures and personnel that collectively protect information resources 0 Confidentiality System must not allow disclosing information to anyone who isn t authorized to access it Secure government agencies Businesses Ecommerce MIS Chapter 5 Computer and Network Security Basic Safeguards cont d o Integrity Ensures the accuracy of information resources in an organization Financial transactions Availability Ensures that computers and networks are operating Authorized users can access the information they need Chapter Computer and Network Security Basic Safeguards cont d Three levels of security Level 1 frontend servers Level 2 backend systems Level 3 corporate network Faulttolerant systems Combination of hardware and software for improving reliability Uninterruptible power supply UPS Redundant array of independent disks RAID Mirror disks MIS Chapter 5 Security Threats An Overview 0 Some threats can be controlled completely or partially but some can t be controlled 0 Categories Unintentional Intentional i in ieii 39 w quotiquotc iii liliiaiililo riminnit in v1 Intentional Threats Viruses Worms Trojan programs Logic bombs Backdoors Blended threats eg worm launched by Trojan Rootkits Denialof service attacks 0 Social engineering MISCh t 5 Viruses 0 Type of malware In 2008 the number of computer viruses in existence exceeded one million Estimating the dollar amount of damage viruses cause can be difficult Usually given names I Love You Michelangelo Consists of selfpropagating program code that s triggered by a specified time or event Viruses cont d Seriousness of viruses varies Transmitted through a network and email attachments Bulletin or message boards 0 Virus hoaxes Can cause as much damage as real viruses Indications of a computer infected by a virus 0 Best measure against viruses Installing and updating antivirus programs MIS Chapter 5 Worms Travels from computer to computer in a network Does not usually erase data 0 Independent programs that can spread themselves without having to be attached to a host program Replicates into a fullblown version that eats up computing resources 0 Wellknown worms Code Red Melissa and Sasser MIS Chapter 5 Reward for the Creator of Conficker Conficker worm Targets computers and networks running Windows that don t have uptodate Windows security patches Affected as many as 12 million computers 0 Microsoft is offering a reward of 250000 to find Conficker s creator i mien 39 i39lquot l li lrllri 1 l iil miugliil in 31 Trojan Programs Named after the Trojan horse the Greeks used to enter Troy during the Trojan Wars Contains code intended to disrupt a computer network or Web site Usually hidden inside a popular program Logic Bombs Type of Trojan program used to release a virus worm or other destructive code Triggered at a certain time or by an event MIS Chapter 5 Backdoors Programming routine built into a system by its designer or programmer Enables the designer or programmer to bypass system security and sneak back into the system later to access programs or files 0 System users aren t aware a backdoor has been activated i when quot livii39Wi iiizt liilfaii i ll i ii ingiiii i ii fll39lwfju Blended Threats Combines the characteristics of computer viruses worms and other malicious codes with vulnerabilities found on public and private networks 0 Main goal is not just to start and transmit an attack but also to spread it MultiIayer security system could guard against blended threats DenialofService Attacks Floods a network or server with service requests Prevent legitimate users access to the system 0 Target Internet servers 0 Distributed denialof service DDoS attack Hundreds or thousands of computers work together to bombard a Web site with thousands of requests for information in a short period Difficult to trace Social Engineering 0 Using people skills to trick others into revealing private information Takes advantage of the human element of security systems 0 Use the private information they ve gathered to break into servers and networks and steal data Commonly used socialengineering techniques Dumpster divingquot and shoulder surfingquot Protecting Against Data Theft and Data Loss 0 Portable storage media Theft or loss of media Stealing company data 0 Guidelines to protect against these risks Security Measures and Enforcement An Overview Biometric security measures Nonbiometric security measures 0 Physical security measures 0 Access controls 0 Virtual private networks 0 Data encryption Ecommerce transaction security measures 0 Computer Emergency Response Team
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