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by: Darwin Stamm
Darwin Stamm
Texas A&M
GPA 3.78

Cindi Smatt

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Cindi Smatt
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This 16 page Class Notes was uploaded by Darwin Stamm on Wednesday October 21, 2015. The Class Notes belongs to INFO 210 at Texas A&M University taught by Cindi Smatt in Fall. Since its upload, it has received 13 views. For similar materials see /class/226258/info-210-texas-a-m-university in Information & Operations Mgmt at Texas A&M University.

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Date Created: 10/21/15
INFO Test 17Review I Speaker a Ryan Hudson b Price Waterhouse Cooper c Ethical Professional Hacker d Ethical Hacking e White Hat Grey Hat Black Hat f Penetration Test IntemalExtemal II Chapter 1 Managing in the Digital World a Explain what an information system is contrasting its data technology people and organizational components i Jobs 1 C10 7 highest ranking IS manager responsible for strategic planning and IS use throughout the rm 2 IS Director 7 responsible for managing all systems throughout the rm and the daytoday operations of the entire IS unit 3 Systems Manager 7 responsible for managing a particular existing system 4 Operations Manager 7 responsible for supervising the daytoday operations of the data and or computer center 5 Network Manager 7 responsible for managing one piece of the enterprisewide network ii Types of IS Used in Organizations 1 Transaction Processing System 7 process daytoday business event data at the operation level of the organization 2 Management Information System 7 produce detailed information to help manage a fum or a part ofthe firm 3 Customer Relationship Management System 7 support interaction between the firm and its customers 4 Enterprise Resource Planning System 7 support and integrate all facets of the business including planning manufacturing sales marketing and so on 5 Supply Chain Management System 7 support the coordination of suppliers product or service production and distribution iii Knowledge Worker 1 Term coined by Peter Drucker in 1959 2 An individual who is relatively well educated and who creates modifies and or synthesizes knowledge as a fundamental part of a iv Knowledge Society 1 Information is now as important as land labor and capital resources v Digital World 1 Globalization is the integration of economies throughout the world enabled by technological progress Fquot 2 Globalizations manifests itself through changes in economy cultures and technology vi Globalization Economic Changes 7 increase in intemational trade of goods and services 2 Cultural Changes 7 increased access to other cultures through TV intemet and so on 3 Technological Changes 7 availability of lowcost communication systems vii Information Systems 7 combination of five elements 1 People 2 Hardware 3 Software 4 Data 5 Telecommunications networks Data The Root and Purpose of Information Systems 1 Data 7 raw unformatted information 2 Information 7 data that is transformed to have meaning 3 Knowledge 7 the body of governing procedures used to organize or manipulate data 4 Wisdom 7 accumulated knowledge ix The Components of Information Systems 7 relationship of computerbased information systems to information technology and technology in general 1 Technology 7 any machine that can supplement or replace human manual work 2 Information Technology 7 atype of technology that is controlled by or uses information 3 Computerbased IS 7 systems using computers to provide useful date to people Describe types of j obs and career opportunities in information systems and in related fields i People The Builders and Managers of IS 1 Career opportunities are strong and expected to grow a Computer IT Analyst and Computer amp IS Manager both in the top 10 bestjobs for the next decade i Median earnings for managers 102360 Careers in IS Evolution of the C10 1 Chief Information Officer 7 job title became popular in l9080s 2 Early 90s 7 people joked that CIO stood for Career is Over a Primary reasons i Tightened budgets ii Overblown expectations viii IS Personnel 1 Higher prestige amp more women iv What makes IS personnel valuable Integrated knowledge and skills in three areas ii39 1 Technical competency 7 skills in hardware software networking and security 2 Business competency 7 understanding of the nature of the business this is key in addition to technical competency 3 Systems competency 7 understanding of how to build and integrate large scale systems V Organizations the context of IS 1 Many different types of systems are used in organizations a Transaction support systems decision support systems intelligent systems and so on 2 These systems used to be clearly categorized7now the boundaries are fading due to a Interworking b Systems integration vi Organizing the IS function 1 Early history poor service and worse attitudes a Early systems were cumbersome to use over budget and late 2 the rise and fall of enduser development a users developed their own applications or improved existing systems 3 the modern information systems organization a attitudes changed and service mentality emerged vii End user development 1 The advent of the IBM PC and early applications packages led to enduser development viii Other issues facing the IS function 1 The spread of technology in organizations 2 Downsizingrightsizing and outsourcing 3 Career prospects and opportunities a Need for people within organizations with analyst skills c Describe the dual nature of information systems in the success and failure of modern organizations i The Dual Nature of IS 1 IS can make you or break you a London Heathrow7the failure i Original system cost 400 million 50 million in added costs due to problems b FedEx7the success i 38 billion family of companies7largest express transportation company ii information hub for business where managing information is the business ii IS for Competitive Advantage 1 Both FedEx and London Heathrow were developing strategic information systems 2 Only strategic information systems can help sustain competitive advantage iii Why Information Systems Matter 1 Nicholas Carr articlei IT Doesn t Matter a IT no longer a source of advantage on the rm level b Companies should focus IT on cost reduction and risk mitigation 2 Many experts disagreed with his arguments a Abbie Lundbergiinterview with Carr b Don Tapscotti The Engine That Drives Success The Best Companies Have the Best Business Models Because They Have the Best IT Strategies i Many successful companies use IT to support a unique business strategy d End of Chapter Content 39 Apple many successes and failures i39 Bionic Contact Lens iii Steve Jobs and Steve Wozniak iv Internet usage 17 of active users in US l 74 of North American population 2 53 of African population H v Online Rights 1 Some govt regulation worldwide ie China 2 Some companies make deals with countries 3 Who owns web data 4 Should the intemet create laws vi Looking at piggybacking WiFi so that everyone has access vii How to meet the need of global skills 1 Gain international experience 2 Learn more than on language 3 Sensitize yourself to global culturepolitics 4 Immerse in culture food local TV read booksnewspapers III Chapter 2 Fueling Globalization Through Information Systems a Define globalization describe how it evolved over time and describe the key drivers of globalization i Globalization created a new world characterized by 1 Worldwide communication 2 Collaboration without barriers ii Evolution of Globalization 1 Globalization 10 a 14921800 countries b Mainly European countries are globalizing c Power is the primary driver d Industries changed e Slow pace of change 2 Globalization 20 ii39 lt v39 S viii IE Egtlt X39 N a 18002000 companies b Companies are globalizing c Reduction in transportation and telecommunications costs d Mainly Europe and America involved 3 Globalization 30 a 2000now individualssmall groups b Individuals and small groups are globalizing c Faster pace of change d Emergence of new industries The World is Flat by Thomas L Friedman l 10 enablers 9 key factors enabling Globalization 30 Enabler l The Fall of the Berlin Wall 1 November 9 1989 2 Fall of communism 3 People from the former communist countries gained more freedom Enabler 2 Netscape Browser 1 August 9 1995 2 First mainstream browser 3 Gave individuals access to the intemet Enabler 3 Work Flow Software 1 Applications that allow people worldwide to communicate 2 XML allows applications to talk to each other 3 New possibilities for information sharing Enabler 4 Uploading 1 Individuals and companies actively participate in content generation on the Web 2 Wikipedia a huge success Enabler 5 Outsourcing l Outsourcing companies profited from the drop in telecommunication costs 2 Companies can now use talented engineers from anywhere Enabler 6 Offshoring 1 Companies set up entire factories in countries such as China a Mass production b Low costs Enabler 7 Supply Chaining 1 Integration of retailers suppliers and customers 2 WalMart became an early leader a RFID tags used Enabler 8 InSourcing l Delegation of company s key operations to a subcontractor a Example UPS provides complete supply chain solutions to companies Enabler 9 InForming l Informing is to individuals what outsourcing Offshoring and in sourcing is to companies Fquot O 2 Individuals have access to massive amount of information Enabler 10 The Steroids l Technologies that support different types of collaboration a Greater mobility b Convergence Describe the emerging opportunities for companies operating in the digital world i Opportunities for Operating in the Digital World 1 Reaching new markets a Former Eastern Bloc countries provide new opportunities for international companies to reach new customers 2 Opportunities of a global workforce a Low communications costs b Highlyskilled labor pool Explain the factors companies have to consider when operating in the digital world i Challenges of Operating in the Digital World Governmental 2 Geoeconomics 3 Demographic 4 Cultural ii Governmental Challenges 1 Political system challenges a Political stability 2 Regulatory challenges a Tariffs b Embargoes c Export regulations d Quotas 3 Datasharing challenges a Transborder data ow regulations 4 Internet access and individual freedom a Content blocking by govemmentscensorship i Chinaiuse of VoIP restricted ii Germanyisites with fascist symbols prohibited b Internet access blocking i Cuba North Korea iii Geoeconomic Challenges 1 Infrastructurerelated Challenges a Traditional infrastructureiroads electricity b Connectivityireliable intemet connections 2 Challenges related to economic welfare a GDP growth not distributed evenly throughout the world iv Demographic challenges 1 Differing rates of population growth 2 Expertise related challenges a Different concentration of skilled workers xiii b Different costs of workers V Cultural Challenges 1 National Cultures a Power distanceidifferences in how societies handle the issues of human inequality b Uncertainty avoidanceirisk taking nature c IndividualismCollectivismivalue placed on an individual vs a group d Masculinityfemininityidegree to which a society is characterized as masculinefeminine e Concept of timeilong term vs short term f Life focusiquantity vs quality of life 2 Cultural barriers a Languageicommunication language and norms b Work cultureiwork skills habits and attitudes c Aestheticsiart music and culture d Educationiattitudes toward education and literacy e Religion beliefs and attitudesispiritual institutions and values f Social organizationsifamily and social cohesiveness 3 Other challenges a Differences in what is regarded as appropriate b Standards of dealing with intellectual property c Different standards i Examples writing paper pillowcases Describe international business and information systems strategies used by companies operating in the digital world i Going Global Intemational Business Strategies in the Digital World 1 Homereplication strategy 2 Global business strategy 3 Multidomestic business strategy 4 Transnational business strategy ii HomeReplication Strategy 1 Most basic form of going global a Companies view international operations as secondary to or extension of home operations b Focus on core competencies in home market c Inability to react to local market conditions d Homogeneous markets iii Global Business Strategy 1 Centralized 2 Used to achieve economies of scale 3 Example CocaCola a Same core product b Some different tastes made for local markets iv Multidomestic Business Strategy F1 II 1 Low degree of integration between subunits 2 Flexible and responsive to the needs and demands of local markets 3 Example General Motors a Opel in Germany b Vauxhall in Great Britain V Transnational Business Strategy 1 Some operations centralized while others decentralized a Flexibility b Economies of scale 2 Difficult to manage 3 Example Unilever Business Strategies Summary 1 Different types of information systems can support these organizational forms d of Chapter Content i Infosys Technologies 1 Helping to atten the world 2 Does business in new ways a Outsourcing b Supply chains c Consulting d Employment Netscape s James Clark and Marc Andreessen 1 Founded Mosaic Communications Corporation 2 75 percent of Web surfers used Netscape in 1996 3 AOL acquired Netscape in 1999 for 10 billion in stock Online Searching vi ii39 1 To Google has become a household verb meaning search iv Accenture 1 Provides consulting technology and outsourcing 2 Global before other companies were just waking up to globalization v Accenture growing 1 Announced plans for doubling its thirteen thousand business consultants between 2008 and 2011 vi Underground Gaming Economy 1 a Virtual worldiplayers live through avatars 2 Players started selling virtual tools for real moneyifarmers a Banned from various gaming sites due to behavior being unethical and fear of turning users away vii Learning Languages in Context 1 Livemocha a Online language instruction using social networking i Structured lessons ii Help with grammar iii Canned pronunciation guides b Most valuable asset i Conversation with native speaker ii Using social community to increase understanding viii EWaste l Disposal of electronics containing hazardous materials is a rising issue 2 US exports much of its ewaste to third world countries a China banned the import in 2002 b Other countries to follow 3 In mid 2006 EU banned toxic ingredients a Production of green hardware 4 US government working on making changesicurrently state level legislation most effective ix Automobile Industry 1 Feeling the pressure of globalization 2 Failed attempts at making a world car a Consumers have different tastes b Differences in infrastructures derive needs c The price of gasoline d Variations in emission standards 3 Cultural and economic conditions need to undergo more globalization to make a world car successful IV Chapter 3 Valuing Information Systems Investments a Discuss how organizations can use information systems for automation organizational learning and strategic advantage i Information systems can be used in three ways to add value to an organization 1 Automating 2 Informating 3 Strategizing ii IS for Automating 1 With automation tasks can be completed a Faster b Cheaper c More accurately d With greater consistency iii Automatic example 1 Loan processing comparison for 3 methods from the moment the customer takes the application until the applicant is notified of decision a Manual loan processi25 to 40 days b Technologyisupport process75 to 20 days c Fully automated processil hour to 15 days iv IS for Organizational Leaming doing things better 1 IS can also be used to a Learn about processes b Improve processes c Support organizational learning V Informating Example 1 Computerbased loan system indenti es peak times during the year When speci c loans are processed vi IS for Supporting Strategy doing things smarter 1 IS used to gain or sustain competitive advantage a Turning bene ts of automating and Informating into strategic advantage vii Strategizing Five types of Organizational Strategies 1 Organizational strategies de ne the way in which a company plans to gain sustain competitive advantage a Overall Low Cost Leadership Strategy i Offer best prices in the industry or productservice category ii Broad focus7WalMart b Focused LowCost Strategy i Offer best prices in the industry or productservice category ii Focus on niche 1 Dell c Broad Differentiation Strategy i Offer better products services than competitors ii Broad focus 1 Nordstrom Focused Differentiation Strategy i Offer better products services than competitors ii Focus on niche 1 Apple a Highquality computers b Home and educational markets e BestCost Provider Strategy i Provide products of reasonably good quality at competitive prices 1 Target viii Sources of Competitive Advantage Bestmade product on the market Superior customer service Achieving lower costs than rivals Having proprietary manufacturing technology Having shorter lead times in research and development projects Having a wellknown brand name and reputation 7 Giving customers more value for their money iX Competitive Advantage 3 1 9959 Fquot 1 How do you identify opportunities to use information systems for competitive advantage 2 Porter s Value Chain a Process of analyzing an organization s activities to determine where value added and costs are x Value Chain Analysis 1 Tool used by managers to identify opportunities for gaining competitive advantage xi IS and Value Chain Analysis 1 IS use in adding value a Use of Internet b Use of Extranet Intranet Describe how to formulate and present the business case for an information system i Making the Business Case for an IS 1 Identi cation of bene ts that the proposed information system will bring to the organization a Automating bene ts b Informating bene ts c Strategic bene t Productivity gains 1 Easy to indentify costs with developing an IS 2 Dif cult to identify productivity gains a There are limitation to productivity gains with development of an IS 3 Why hasn t productivity increased at the rate of IS investments iii The Productivity Paradox 1 Information systems may be used in unintended ways a Web sur ng b Junk mail c Games iv Measurement problems a Bene ts dif cult to quantify i Wrong things measured 1 Ef ciency vs effectiveness b Example ATM v Time lags 1 Bene ts do not always occur at the same time IS is implemented a Some ISIT implementation requires people to gain experience b System must be integrated with existing systems vi Redistribution 1 IS may redistribute the pieces of the pie rather than make the pie bigger a Increases in market share come at the expense of the competitors market share vii Mismanagement 1 Bad business model cannot be overcome by good IS a IS implementation as temporary x b Creation of unanticipated bottlenecks viii Making a successful business case 1 Dif cult to quantify bene ts of IS 2 Money doesn t grow on trees 3 Need to make a strong business case a Based on i Faith ii Fear iii Facts ix Arguments based on faith Arguments based on beliefs about a Organizational strategy b Competitive advantage c Industry forces d Customer perceptions 2 Example Procter amp Gamble x Arguments based on Fear 1 Arguments based on the notion that if system is not implemented a Company loses to a competitor b Goes out of business 2 Example a Automotive industry Factors in IS Investment Decisions 1 Often considered when presenting arguments based on fear xii Porter s Five Forces Model 1 Framework used to analyze competition within an industry xiii Arguments Based on Fact 1 Arguments based on a Data b Quantitative analysis c Indisputable factors 2 primary tools a costbene t analysis i identify costs ii identify bene ts iii contrast expected costs and bene ts b weighted multicriteria analysis xiv CostBene t Analysis 1 Identifying costs a Total cost of ownership TCO i Cost of acquisition ii Cost of use iii Cost of maintenance X b Recurring vs nonrecurring costs c Tangible vs intangible costs 2 Identifying bene ts a Tangible bene ts i 5 percent increase in sales ii Reduction of order entry errors b Intangible bene ts i Improvement to customer service ii Improvement in overall perception of a fum 3 Contrasts total expected tangible costs with total tangible bene ts a Breakeven analysis 7 identi es the point when tangible costs equal tangible bene ts b Netpresentvalue analysis 7 identi es the present value of future cash ows xv Weighted Multicriteria Analysis 1 Method used for deciding between alternative IS investments or alternatives of the same system xvi Presenting the Business Case 1 Persuade decision makers in the rm a Know the audience b Identify stakeholder groups 2 Convert bene ts to monetary terms 3 Devise proxy variables a Used when clearcut assessment is not possible i Measures of perceived value of change 4 Measure what is important to management a Case becomes more meaningful b Focus on senior management s hot button issues xvii Assessing Value for IS Infrastructure 1 Present holistic view a Economic value b Architectural value c Operational value d Regulatory and compliance value 2 View IS as asset rather than necessary expense Explain why and how companies are continually looking for innovative ways to use information systems for competitive advantage i Valuing innovations 1 Which new technology will make or break your business ii Successful innovation is dif cult 1 Innovation is often eeting a The advantages gained from innovations are often short lived 2 Innovation is often risky a Sometimes even superior products can lose the race i Bluray vs HD DVD 3 Innovation choices are often difficult a Foreseeing the future is not always possible i In 1994 the internet was not given much attention iii Organizational Requirements for Innovation 1 Process requirementsithe org has to be willing to do whatever it takes to implement the change 2 Resource requirementsineed to have the human capital necessary for successful deployment of the system 3 Risk tolerance requirementsiorganizational members must have appropriate tolerance of risk and uncertainty iv Predicting the next new thing 1 Deciding which innovations to adopt is very difficult 2 Diffusion of innovations a Classic view of adoption of innovations v The Innovator s Dilemma l Disruptive innovations a New technologies products or services that eventually surpass dominant technologies i Online vs brickandmortar retailing ii Automobiles vs horses iii CDs vs records iv MP3 vs CDs b Undermine effective management practices vi Disruptive innovations 1970s mid and high performance users were bulk of the market Digital equipment company DEC tried to sell to those markets Microcomputers seen as toys 1980s microcomputers focusing on low performance users needs Ignored by DEC 1990s growing performance of microcomputers meeting mid performance users needs 7 DEC lost biggest market segment 8 Today microcomputers meeting entire market s needs 9 DEC out of business 10 Next disruptive innovation 3G and 4G mobile phones vii The Innovator s Solution 1 Christensen outlines a processidisruptive grth engineithat helps orgs Respond to disruptive innovations more effectively a Start early b Executive leadership c Build a team of expert innovators d Educate the organization viii Implementing the Innovative Process EBusiness Innovative Cycle a The key to success is the extent of IS use in timely and innovative ways 99595 3 1 D ix EBusiness Innovation Cycle 1 Choosing enablingemerging technologies a Process group devoted to looking for emerging IT 2 Matching technologies to Opportunities a Most promising new technology matched with current economic opportunities 3 Executing business innovation for growth a Stage at which the change is actually implemented 4 Assessing Value a Value created for customers and internal operations assessed x Three ways to think about investments in disruptive innovations 1 Put technology ahead of strategy a Technology is so important to success it needs to be considered rst b Strategy is developed afterwards 2 Put technology ahead of marketing a RapidJ 39 I of 39 39 people to know what they want 3 Innovation is continuous a New technologies are constantly being developed Describe freeconomics and how organizations call leverage digital technologies to provide free goods and services to customers as a business strategy for gaining a competitive advantage Freeconomicsithe leveraging of digital technologies to provide free foods and services to customers as a business strategy for gaining competitive advantage How does Freeconomics Work for Yahoo 1 From Yahoo Free email service iii The freeconomic value proposition 1 What a business provides to a customer and what that customer is willing to pay for that product or service iv Approaches for applying freeconomics 1 Advertising 2 Freemium 3 Crosssubsidies 4 Zero marginal cost 5 Labor exchange 6 Gift economy End of Chapter Content i TiVo l Unprecedented control over television viewing ii IT department often knows 1 Strategies to grapple with ethical decisions a IT equipment and data use policy i Whistleblower provision J makes it 39 quot 39 for b Report violations then let company handle it c IT professionals should develop code of ethics iii Sony s Secret 1 Sony BMG Music Entertainment was using rootki to copyright protect CDs a Rootkit was installed on users hard drives wo their knowledge b Left computers vulnerable to malicious intrudersiTrojan horses used c Rootkit was discontinued and uninstall instructions were given to affected customers iv Bill Gates and Paul Allen 1 Dropouts and rich v Who is Sharing Files 1 Active consumers a Accustomed to ondemand lifestyle 2 Informed about current events a Internet is primary sources 3 Conversations focused on tech gadgets car accessories home theater setups 4 Many were Mac users 5 Gamers 6 Frustrated with musicentertainment industries for punishing them vi Domains 1 Domainersibuy and sell domain names a 20069 billion business b 20097projected 23 billion 2 Ad space renting a Domainer registers URL b Webpage with advertisements is displayed c Search engine owner pays money to the domainer for each click on an ad 3 EmSense a EEG sensor headset b Game designers tell players emotions c EEG not as reliable as MRI 4 Photo Industry a 20022006 four year move from film to digital i Canon and Konica Minolta no longer make film models ii Nikon makes two beginner and professionals b Business models changed rapidly i Digital technology was a disruptive innovation for the photo industry V Also know HTML stuff


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