1

CIS 2010 Final Exam

Chapter 1: The Information Age in Which You Live1. MIS- deals with the planning for, development, management, and use of IT tools

to help people perform tasks related to info processing and management.a. 3 KEY RESOURCES

i. Informationii. People

iii. technology2. IT- any computer based tool that people use to work with info and support the

info and info-processing needs of an organization.a. Computerb. Barcode scanner

3. IT IS THE ACTUAL TOOL…MIS IS THE PLANNING SIDE4. Disruptive technology

a. Netflix and blockbuster—blockbuster must find new ways of making money other than late fees

5. Knowledge Workera. Works with and produces information as a productb. KNOWLEDGE IS POWER

6. Data and Informationa. Data- simply raw factsb. Information- data that has meaning…assembly into a report

7. 3 dimensions of personal informationa. Time

i. Timelinessii. Relating to the relevant time period

b. Locationi. Having access to info no matter where you are

ii. Intranet- internal organizational internet that is guarded against outside access by a firewall.

1. ex: GSU’s wireless network2. differs by type of business and unique to each business

c. Formi. Info is in a form that is usable and understandable

1. audio, text, videoii. accuracy! Free from errors

8. Informational flows in an organizationa. Up, down, horizontally, inward/outwardb. Structure of an organization

i. Strategic management- provides org with overall direction and guidance

ii. Tactical management- develops the goals and strategies outlined by strategic management

iii. Operational management- manages and directs the day to day operations and implementations of the goals and strategies.

2

c. Upward flow of informationi. Current state of the org based on its daily transactions

d. Downward flow of informationi. Strategies and goals that originate at one level and are passed on to

the lower levelsii. Collaborative technologies!

e. Horizontal flow of informationi. Between functional business units and work teams

ii. Collaborative technologies!f. Outward/inward flow of information

i. Infor communicated to customers, suppliers, and other partners for the purpose of doing business

9. Information Granularitya. The extent of detail within the information

i. Coarse granularity- highly summarized information1. ppl in highest levels of organization2. ex: sales by year

ii. Fine granularity- information containing high amts of detail1. ppl in lower levels of organization2. ex: each individual sale, when it occurred, method of

payment, etc.b. transaction originates at lowest level?...must be consolidated by IT to

coarser granularity as it move up through the organization (upward flow)10. 4 Organizational dimensions of information:

a. Internal- describes specific operational aspects of an organizationb. External- describes the environment surrounding the organizationc. Objective- information that is more easily determined to be true or false

i. Ex: customer either purchased a car or a burger or did not…after money changes hands and ownership transferred, no ? about whether transaction occurred

d. Subjective- information based on the observer’s perception of realityi. Ex: Lockheed sales rep may report that he thinks a customer will

sign contract for 5 jets w/in next 2 weeks. If turns out that contract differs from what sales rep projected, does not mean sales rep lied! Circumstances could change, or info available to sales rep could’ve been incomplete

11. 4 combos of ethical and legala. Legal and ethical- normal use of systems to support operations

i. Sales at fast food restaurantb. Legal but unethical- forwarding an e-mail message without getting the

sender’s permission.c. Ethical but illegal- breaking into systems to track and identify hackers.d. Illegal and Unethical- software piracy, hacking to commit fraud

12. Ubiquitous Computing- technology support anywhere, at anytime, with access to all needed info and all business partners always, both internal and external to the org.

3

a. Decentralized computing- environment in which an organization distributes computing power and locates it in functional business areas as well as on the desktops of knowledge workers.

i. Serversii. Personal computers

iii. PDAsiv. Tablet PCs

b. A shared database- environment where the org’s information is organized in one or more central locations, allowing anyone to access and use it as he or she needs to.

c. Mobile computing- wireless technology to connect to needed resources and info.

i. M-commerce: electronic commerce conducted wirelessly13. 4 ways in which one can protect from viruses, spyware, and identity theft:

a. Keep antivirus software up to dateb. Use only secure web sites when submitting personal or financial infoc. Never give out your personal info to enter a contest on the internetd. Change your passwords frequently and intersperse capital letters and digits

in them14. Transaction Processing System (TPS)- system that processes transactions within

an organization—ATMS, online banking. a. Transactions processed w/ a TPS

i. Ordering a refill on a prescriptionii. Buying an airline ticket

iii. Returning an item to walmartiv. USPS to hold your mailv. Registering for a course

15. Executive Information Systems (EIS)- highly interactive. Allows you to first view highly summarized (coarsely granulated) information and then choose how you would like to see greater detail.

a. Offers great speed in massaging info, developing alternatives, and viewing info from various perspectives

b. DO NOT make recommendations on what to doc. Managers can view summary data in graphical form to monitor operations,

or they can “drill down” to various levels of detail.

Chapter 2: Major Business Initiatives16. Porter’s five forces Model:

a. Buyer poweri. High when buyers have many choices, and low when there are few

choices1. Provider- want LOW buyer power2. Consumer- want HIGH buyer power

ii. Reduce buyer power using IT1. Loyalty program—frequent flyer miles

b. Supplier power

4

i. High when buyers have few choices, and low when buyers have many choices.

1. As business, want high buyer power when making purchases

2. high supplier power when selling products and servicesc. Threat of substitute products or services

i. High when there are many alternatives, and low when there are few.

ii. Switching costs can help—cell phone companies!d. Threat of new entrants

i. High when it is easy for new competitors to start, and low when it is difficult

ii. Entry barrier---feature that customers want and new competitors must provide to successfully enter market

1. ONLINE BANKING, ATMse. Rivalry among existing competitors

i. High is a fiercly competitive market and low in a more complacent market

1. Retail grocersa. HIGHLY COMPETITIVEb. USE IT TO COMPETE ON PRICE

17. Dell Supply chain model: sell, source, shipa. JIT (just in time)- provides product/service just when needed

18. Supply Chain management systems- tracks inventory and information among processes and across companies.

a. IT support-i. SAP, oracle, PeopleSoft

19. Customer Relationship management- uses information about customers to gain insight in order to serve them better.

a. IT supporti. Front office systems- order taking…primary interface to customers

and sales channelsii. Back office systems- Filling orders.

20. Business Intelligence system- knowledge of competitors, suppliers, your own internal operations, etc. STATWARE

a. Internal- customers, products, suppliers, employeesb. External- competition, markets, environment: economic, politicalc. IT support

i. Digital dashboard- displays key information tailored to an individual

21. Supply Chain Management:a. Just-in-time (JIT)- Provides product or service just when needed.b. Distribution chain- path followed by product or service.c. Fulfillment- right quantity of parts at right time.d. Logistics- transportation costs low.e. Production- production lines run smoothly

5

f. Revenue and profit- no sales are lost because of stock-outs.g. Spend- minimizing costs of purchases of material

22. Business Intelligence- Knowledge about competitors, suppliers, your own internal operations that gives you the ability to make effective, important, and often strategic business decisions.

23. Sales Force Automation- CRM system. Automatically tracks all the steps in the sales process, including contact management, sales lead tracking, sales forecasting and order management, and product knowledge.

a. General Motors—focuses on creating repeat customers with Purchase funnel

24. Digital dashboard- IT support for BI system. Displays key information tailored to a specific individual. NO PERSONAL INFO.

25. Virtual team- ICE system. When team members are located in varied geographical locations.

26. Alliance partner- a company your company does business with on a regular basis in a collaborative fashion, usually facilitated by IT systems.

27. Workflow- a process defined by steps that are performed in a fixed order…apply for financial aid, being granted aid, and being notified of the decisions made.

28. Workflow system- the system that enforces rules associated with the workflow process…system often informs the next person that approval is needed and reminds people if they have not taken action when they were supposed to.

29. Knowledge management system- supports the capturing, organization, and dissemination of knowledge. Ex: FAQ database

30. Social network system- links you to people you know, and from there, people they now. Ex: MySpace

31. Presence awareness- determines if person is immediately reachable.32. Yield Management System- helps hotels fill unsold rooms.

Extended Learning Module C, Haag book, beginning of Chapter 3 and database textbook, Introduction, Chapter 1 and Chapter 2

33. Databases vs. Spreadsheetsa. Both have rows and columnsb. Spreadsheet-must know physical row and columnc. Database- work with information logically

34. Entity relationship diagram- a graphic method of representing entity classes and their relationships.

a. Cardinality- shows the numerical nature of relationships.35. Entity- typically a person, place or thing about which you wish to store

information and that you can identify with a unique key (primary key).36. attribute- used within an element to describe a characteristic of the element and

supply additional information.37. Instance- a record in a database38. Primary key- a field or group of fields that uniquely describe each record

6

39. Foreign key- common field is a field that appears in two or more tables and contains identical data to relate the tables…the common field is called a foreign key in the second table.

40. database- collection of information that you organize and access according to the logical structure of that information.

41. Relational database- uses a series of logically related two-dimensional tables or files to store information in the form of a database.

42. Database management system (DBMS)- used to manage data.a. Oracle, ColdFusion, Microsoft Access, and MySQLb. Each program has specific advantages for different organizations

43. Database design process:a. STEP 1: The discovery phaseb. STEP 2: Plan the tablesc. STEP 3: Normalize the datad. STEP 4: Test the database using sample data

44. Database design: the discovery phasea. Gather all existing datab. Research messing and incomplete datac. Talk with users about their data output needs

45. Database design: assimilating the available info and planning the databasea. Determine best way to organize data into logical groups of fields.

i. Field- single characteristic of entity1. Column

ii. Record- values in each field in table 1. row

iii. Table- collection of fields that describe one entity1. entity or relation

iv. Database- Collection of one or more tables46. 4 main database objects used to display data normally:

a. Tablesi. Data in relational databases are stored in one or more tables

b. Queryi. Question asked about data stored in database

ii. Query results look similar to data in a tableiii. Select query

1. most commonly used iv. Cross-tab query

1. performs calculations on values in a field and displays results in a datasheet

c. Formi. Used to view, add, delete, update, and print records in a database

ii. Based on a table or queryiii. Switchboard- form displayed when a database is opened

d. Reporti. Formatted presentation of data from table or query

ii. Created as a printout or to be viewed on screen

7

iii. Usually based on query47. Field/data types:

a. Text- letters and numbers. Not used in calculations or formulas. DEFAULT in access.

b. Memo- store long passages of textc. Number- stores both positive and negative numbers. Use for values used

in calculationsd. Currency- included two decimal places and displays values w/ $ sign.e. Date/time- Display values in mm/dd/yyyy and other formatsf. AutoNumber- Unique to Access. Number automatically generated by

Access…unique to each record.g. Yes/No- assigned to fields requiring yes/no, true/false, on/off.

48. Database design: Planning the Tablesa. Must have unique namesb. Divide existing and missing data into discrete entitiesc. Assign data typesd. Assign field sizese. Name the tables using the Leszynski/Reddick naming convention

49. Creating Table relationships:a. Overcome limitations of flat file databasesb. You can query more than one table at a timec. A join specifies a relationship between tables and the properties of that

relationship.50. One-to-many relationship- most tables! One record in the first table matches

zero, one, or many records in the related table. a. Primary table is on the one side of the relationship and the related table is

on the “many” side of the relationship.51. One-to-one relationship- each record in one table matches exactly one record in

the related table.52. Many-to-many relationship- each record in the first table matches many records

in the second table, and each record in the second table matches many records in the first table.

53. Enforcing Referential integrity- rule that if the foreign key in one table matches the primary key in a second table, the values in the foreign key must match the values in the primary key. If not, problems can occur that lead to inaccurate and inconsistent data.

54. Data integrity- including a primary key in a table to ensure integrity—a guarantee that there are no duplicate records in a table, that each record is unique, and that no primary key field contains null values.

55. Normalizationa. First Normal Form- NO REPEATING GROUPS! No further

normalization is required for a relational database.b. Repeating groups- data associated with a person, place, thing, or idea that

may have more than one instance…each order may have more than 1 itemi. Auto service- customer may bring the car in many times

ii. PRIMARY KEY VALUES MUST BE UNIQUE

8

iii. ALL FIELD VALUES MUST BE ATOMIC (have only 1 value)c. Second Normal Form- has only one primary key field OR all nonkey

fields are dependent on ALL fields in the primary keyd. Anomalies- occur when database is NOT normalized…occur when

attempting to update a table in some wayi. Update anomaly- value in one record may be updated while the

same value in other records is not updated….person will not know which one is correct!

ii. Deletion anomaly- record contains outdated info…deleting it may also delete info that is still useful.

iii. Addition anomaly- you can’t add a record to a relational table if you don’t know what the value of the primary key field is…you can’t store info that you already know in the other fields

e. Redundancy- reduced but not eliminated in a normalized database….b/c need it to allow JOINING OF TABLES.

56. Query By Example (QBE)- creating the query in design view…typing the value you are looking for as a criterion

a. LIMIT RECORDS TO BE DISPLAYED?i. Enter the value in the criteria row, under the approp field name

ii. Use double quotes around text field valuesb. MULTIPLE CRITERIA?

i. AND criteria- selects records that contain ALL specified valuesii. OR criteria- selects that contain ANY of the specified values

c. RUN QUERY…i. Access displays datasheet of records

ii. Save query…only saves design…NOT VALUES FROM TABLE DISPLAYED IN RESULTS!!!

d. SORT?i. Results appear in same order as data from underlying tables

ii. Unless specify sort order when designing queryiii. Sort order determined from L to Riv. Multiple columns must be side-by-side to sort on more than one

field! Ex: 1st and 2nd columns!e. EXPAND CRITERIA….

i. Wildcards- placeholder…stands for one or more characters1. Ab*--locate any word starting with Ab2. J?—matches Jan, Jun, Jul

ii. Comparison Operators1. <> not equal to2. Between….And- inclusive within specified range…USE

WITH DATES!3. In- include values

a. In (“CO”, “AZ”)4. Is- include records null, not null, true, or false

a. Is Null, Is not null, Is true, Is false5. Like

9

a. Like “?usty”i. First name can begin with any letter, but rest

of name is ‘usty’f. Parameter values- serve as a prompt for the user to enter a value

i. Usually in form of question or instructionii. Enclosed in square brackets

iii. [Enter a job ID]iv. Entered as criterion

g. Primary table- contains the primary key (I) in a relationshiph. Related table- contains the foreign key is on the “many” side. i. Join

i. linking of tables using their primary and foreign keys to be queried together OR

1. each table shares field w/same or compatible data type2. One join field primary key

ii. If no fields can be joined1. add extra table or qry2. link tables that contain the data

j. Logical operators- used to test values and can only be “true or false”i. AND- only if both criteria are true

ii. OR – if either criteria are trueiii. NOT excludes values that don’t meet the criterion

k. Calculations in Queriesi. Predefined calcs- “totals” compute amts for groups of records or

for all the records combined in the query1. sum, avg, count, min, max, stdev, and variance

ii. Custom calcs- must create calc field in query design view1. numeric, date, and text computations on each record using

data from 1+ fieldsiii. Concatenation- combining the contents of 2+ fields

l. Aggregate functions- arithmetic operations you apply to records that meet a query’s selection criteria

i. AVGii. Count- # of record

iii. Maxiv. Minv. Sum

m. Calculated field, Calculated Column, Computed field, Computed column i. Expression- arithmetic formula used to make calc.

ii. Use standard arithmetic operators and parenthesisiii. Function- perform standard calc, return valueiv. Field properties

1. change format and number of dec. places for calc fieldn. Fields Occurring in 2 or more tables…identify by tblName.FieldName

i. Prevent ambiguity and syntax errors!!!

10

o. Crosstab queries- totals query that performs aggregate function calcs on the values of one database field and allows you to determine exactly how your summary data appears in the results.

i. Large amt of sum data in columns similar to spreadsheetsii. View data in ideal for creating charts

iii. Include multiple levels of detailiv. Time-series data

p. Sorting in Ascending or Descending orderi. Leftmost field

ii. Must specify….ASC or DESC…default is not sortedq. Parameter query- cannot be executed until the user supplies the value of

one or more fields…with parameter question provided.r. Action queries

i. Modify data in a tableii. Add records to or delete records from table

iii. Create a new tableiv. BACKUP DATA BEFORE DOING ACTION QUERY!

57. Structured Query Language (SQL)- a. COMMON QUERY LANGUAGE OF MOST DBMS’Sb. ACCESS TRANSLATES ENTERIES AND CRITERIA INTO SQL

STATEMENTS FROM DESIGN VIEWc. USE TO INTERACT WITH RELATIONAL DATABASESd. USE SQL VIEW TO VIEW/EDIT SQL STATEMENTS GENERATED

BY ACCESS (QBE)e. Keywords

i. Use to construct SQL statementsii. Place each statement on separate line…easier to read

f. Select statement- what data AND how should presenti. SELECT tblEmployee.EmpLast

1. select data from the EmpLast field in the tblEmployee tableg. From statement- dines the database objects that contain this data.

i. FROM tblEmployee1. indicates all data is stored in tblEmployee

h. SELECT and FROM are keywords in SQL…UPPERCASE LETTERSi. Keywords serve to define a command or clause in expression

i. WHERE- list criteria that apply USE SINGLE QUOTES AROUN TEXTj. GROUP BY- group records w/ identical values….usually to calc summary

statisticsi. GROUP BY tblEmployee.JobID

1. group the results by records in the JobID fieldk. HAVING- list conditions for selecting grouped records, connected by

AND, OR, or NOTl. ORDER BY- specify sorting specifications

i. ASC is default….must choose DESCm. AS- use with calc columns to specify name of resulting calc.

i. [EmpFirst] & “ “ & [EmpLast] AS Name

11

1. concatenate the contents of EmpFirst and EmpLast fields and display the results as the Name field

n. ; (semicolon)- Used to end every SQL commandBASIC SYNTAX FOR SQL QUERY

o. SELECT*FROM tblTrainer;

HAAG, CHAPTER 3—DATABASES AND DATA WAREHOUSES58. Data warehouse- special forms of databases that support decision making….use

information gathered from OLTP and analyzes it59. DBMS (database management systems)- helps specify logical org for a database

and access and use the info within a database.60. OLTP (online transaction processing)- gathering and processing transaction

information and updating existing information to reflect transaction.a. Databases support OLTPb. Operational Databases—database that supports OLTPc. Registering for online course via GoSolard. Usually customer self-service!

61. OLAP (Online analytical processing)- manipulation of information to support decision making

a. Databases can help someb. Data warehouses support only OLAP

62. Data Warehouses and Data mininga. Data warehouses support OLAP and decision making “Business

Intelligence”b. Data Warehouses do not support OLTP!!!!c. Data mining tools are tools for working with data warehouse information

i. DBMS software manipulates data in an operational databaseii. Data-mining tools analyze data in a data warehouse

63. Data warehouse- logical collection of information—gathered from operational database---used to create business intelligence that supports business analysis activities and decision-making!!

a. Multidimensionalb. Rows and columnsc. Also layersd. HYPERCUBES

64. Data-mining tools- software tools that you use to query info in a data warehousea. Query and reporting toolsb. Intelligent agents—help find hidden patterns in infoc. Multidimensional analysis tools- view diff persp ..SLICE AND DICEd. Statistical tools-APPLY MATH MODELS TO INFO

65. Data marts- subset of a data warehouse in which only a focused portion of the data warehouse information is kept

12

DATA WAREHOUSES DATA MARTS

All org information Subsets of information

Cost 1 mill+ Cost <100,000

Long time to built Build in less than 90 days

66. HOW DATA-MINING IS USED:

a. Banking- i. predicting fraudulent use of credit cards

ii. which customers are getting into financial troubleiii. which customers interested in certain promotions

b. Retail-i. Identifying products that are often purchased together

c. Marketing-i. Categorizing customers by demographic group

ii. Predict which customers will be interested in a mailing or purchase product

67. Business Intelligence- knowledge about your customers, competitors, business partners, environment, and internal operations

a. Enable effective decision making

Chapter 7: Enterprise Infrastructure and Integration1. Enterprise Systems- large software application that companies use to manage their

operations.a. Key way dist. Content of all kinds to their

i. Workforceii. Suppliers

iii. Customersb. Underlying information “factory”c. Achieves true “connectivity”

2. Enterprise Resource Planning (ERP) systems- software systems for business management, supporting areas such as planning, man, sales, marketing, dist, acct, etc.

a. Allow comps to implement SINGLE integrated system by replacing legacy systems

b. MUST HAVE:i. Modular design

ii. Centralized DBMSiii. Integrated functionsiv. Flexible best bus practicesv. Internet enabled

c. CORE ERP FUNCTIONS:i. Acct

13

ii. Financialiii. Maniv. Prodv. Transport.

vi. Sales and distvii. Human resource

viii. Supply chainix. Customer relationshipx. E-business

d. ERP vendorsi. SAP—large businesses

ii. Oracle/PeopleSoft—large businessesiii. SSA Global (Baan)—large businessesiv. Microsoft (Great Plains)—small-to-medium businesses

e. ADVANTAGES:i. Reliable information access

ii. Avoid redundancyiii. Cost reduction

f. DISADVANTAGES:i. Time-consuming

ii. Expensiveiii. Vendor dependence

3. Legacy information systems (LIS)- represents massive, long-term bus investmenta. BRITTLE, SLOW, NONEXTENSIBLE!

4. Availability- determining when an IT system will be available for employees to access.

a. MOST 24/7/365!5. Accessibility- determining who has the rt to access diff types of IT systems and

information.a. Who can access or manipulate the info, whether they can create, read,

update, and/or delete information6. Reliability- ensures your IT systems are functioning correctly and providing

accurate info.a. Inaccurate info exists if info was entered incorrectly or info became

corrupt7. Scalability- refers to how well a system can adapt to increased demands.

a. Factors affecting:i. The market

ii. The industryiii. The economy

8. Flexibility- single system can be designed in a number of diff ways to perform exactly the same function.

a. Ability to change quickly!9. Performance- measures how quickly an IT system performs a certain process

a. Benchmarks- baseline values a system seeks to attain

14

b. Benchmarking- process of cont measuring system results, comparing those results to optimal benchmarks.

i. Identify steps to improve system performance10. Capacity Planning- determines the future IT infrastructure requirements for new

equipment and additional network capacity.11. IT architecture- blueprint for translating a business strategy into a plan.

a. Hardware, software, telecommunications network, and informationb. Identifies what info must be standardized corporate wide and what will be

standardized at regional levelsc. Where and how info will be located and accessed

12. IT infrastructure- relative term meaning “the structure beneath a structure”a. Diff layers of structure that provide support or servicesb. APPLICATION—not infrastructurec. DATA, SOFTWARE, HARDWARE, ENTERPRISE SYSTEMS—IT

infrastructured. BUILDING, PUBLIC UTILITY, FIRE AND POLICE—Public

infrastructuree. Efficiency, effectiveness, agilityf. TRANSLATING ARCHITECTURE INTO INFRASTRUCTURE—

i. Create details about—1. hardware, software, network, and information

13. 4 TYPES OF IT INFRASTRUCTURES:a. Decentralized- little or no sharing of information systems

i. Users liberty to develop apps that meet their needs and maintain control over the apps they develop

b. Centralized- sharing of info systems in one central area or one central mainframe.

c. Distributed- distributing info and processing power of IT systems via a network.

i. All locations can share info and apps!d. Client/server- one+ comps that are servers which provide services to other

comps called clients. i. FORM OF DISTRIBUTED!

14. Backup- making copy of info stored on a computer15. recovery- reinstalling backup info in event of lost info16. Disaster Recovery Plan- a detailed process for recovering IT info in the event of a

catastrophic disaster…flood17. Collocation facility- comp and rents space and telecomm equipment from another

comp.18. Disaster Recovery cost curve- charts

a. The cost of the unavailability of info and technologyb. The cost of recovering from a disaster over time

19. Integration- allows sep apps to comm. Directly with each other by automatically exporting data files from one app and importing them into another.

a. Help maintain better control over the info!b. Cost reduction

15

c. Reduction of inventory costsd. Reduction of personnel costs

20. Integration obstacles- people, process, technology21. Business Process Reengineering (BPR)- the analysis and redesign of workflow

within and between enterprises.22. Workflow- all the steps or bus rules, from begin to end, required for a bus.

Process.

Chapter 4: Decision Support and Artificial Intelligence23. PHASES OF DECISION MAKING:

a. Intelligence- find or recog problem, need, or opportunityb. Design- consider possible ways of solving problemc. Choice- weigh the merits of each sold. Implementation- carry out the sol

24. Decision Support System- highly flexible and interactive system that is designed to support decision making when the problem is not COMPLETELY structured.

a. Help with semi-structured problemsb. Analyze alternativesc. Must know how to solve problem and how to use the results of the

analysisd. COMPONENTS:

i. Model management- consists of both the DSS models and the model management system

1. allows user to pick which of many available quantitative models to run..NUMBERS

ii. Data management- stores and maintains the info that you want your DSS to use

1. allows user to enter data or select stored dataiii. User interface management- allows you to communicate with the

DSS.1. enables user to access the model management and data

management components of the DSS2. make the DSS easy or hard to use

e. Yield management systems- DSS used byi. Airlines

ii. Hotel chainsiii. Car rental agenciesiv. Projects future demand based on past demand for that flight, based

on time of year, day of week, etc and determines how many units can be sold at each price

25. Geographical information systems (GIS)- DSS designed specifically to analyze SPATIAL information.

a. In map formb. Analyze info, generate bus intelligence, make decisions

26. Artificial Intelligence (AI)- the science of making machines imitate human thinking and behavior

16

a. Robot- mechanical device equipped with simulated human senses and the ability to take action on its own.

b. TYPES:i. Expert/knowledge based systems

a. applies reasoning capabilities to reach conclusionb. diagnostic problems (what’s wrong?)

i. allows users of medical and equip function or malfunction systems to diagnose probs

c. Prescriptive problems (what to do?)i. Make recommendations for solving problem

based on user’s answers to questions2. ADVANTAGES:

a. REDUCE ERRORSb. IMPROVE CUST SERVICEc. REDUCE COST

3. CAN’T…a. USE COMMON SENSEb. AUTOMATE ALL PROCESSES

4. EX: tax prep software that audits your return5. asks questions…yes or no…go to step #

ii. Intelligent agents- software that assists you in performing repetitive computer-related tasks

1. TYPES:a. Information agents

i. IA’s that search for info and bring it backii. Buyer agent or shopping bot

iii. Specify travel website to inform every time fare drops below certain price

b. Monitoring-and-surveillance or predictive agentsi. Constantly observe, report

ii. New version of Int Exp warns users about fake websites

c. Data-mining agentsi. Operates in data warehouse discovering info

d. User or personal agentsi. Takes action on your behalf

ii. Prioritize email, fill out form for youc. DELIVER CONCLUSION RATHER THAN HELP ANALYZE

OPTIONS---DIFFERENCE B/W AI AND DSS27. Compare/Contrast DSS, GIS, AI (expert systems)

a. System’s output represents a diagnosis or recommendation—EXPERTb. System’s output helps the user compare alternatives—DSS (no map) or

GIS (with map)c. System’s output provides an optimal solution (how to price seats on a

flight, how to cut a specific log, mix of dog food ingredients)—DSS (one that solves a fairly structured problem)

17

28. Structured Decision- processing info in a certain way so you will always get the right answer

a. Plug in data values into formula, you can be confident you will get optimal solution

29. Nonstructured Decision- one for which there may be several “right” answers, w/out a sure way to get the right answer…concern whether all variables have been considered.

a. What job offer to accept…hope you have all info to make decision30. Semi-structured decision- some parts of the problem are structured (relationships

b/w variables) and some are not. a. Use DSS to calculate mortgage pmt for diff int rts, amts borrowed, etc…

but CANNOT determine whether you can afford the higher pmt on 15 yr mort or better for 30 yrs. w/ smaller pmts.

31. Recurring decision- decision made repeatedly in an organizationa. McDonald’s regularly deciding where to locate a new McD’s restaurant

32. Nonrecurring (ad hoc) decision- decision rarely made in an orga. Whether to move headquarters

Chapter 5: Electronic Commerce33. 2 MAJOR TYPES OF E-COMMERCE

a. Business to Business (B2B)- bus sells products and services to customers that are primarily other businesses

i. MOST $ 97% b. Business to Consumer (B2C)- when a bus sells products and services to

individsi. MOST WELL KNOWN

ii. Amazon, blue nile, netflix, etciii. Mass Customization- ability of org to give its customers the

opportunity to tailor its products or services1. dell- customized computer purchases2. Apple itunes- only the music you want (not necessarily the

whole album)

34. Customer Perceived Value of Products and services in B2B and B2C modelsBusiness to Consumer (B2C) Business to Business (B2B)

Convenience- low priced but something needed on a frequent basisEx: common food items

Maintenance, repair, and operations (MRO) materials- necessary items that do not relate directly to the company’s primary business activities.Similar to convenience items in B2C

Buyers make large purchases Can then demand a discount (not in

B2C) Can team up with others to create

demand aggregation—justify larger disc by combining w/others

Specialty- higher price, ordered on a less frequent basis, and often requiring customizationEx: stereos, computers

18

Ex: office supplies, repair parts, lubricating oils

Commoditylike- the same no matter where you buy itPrice and ease of ordering are importantEx: books, music, movies

Direct Materials- materials used in production in a manufacturing company or placed on the shelf for sale in a retail environmentQuality, quantity, and delivery timing importantBuyers can participate in Reverse auctions- buyer posts its interests in buying items, and seller compete by submitting successively lower bids

Digital- the best of all b/c of low cost of inventory and shippingPurchased and delivered over the internetEx: digital greeting cards, music, software

35. E-marketplaces in B2Ba. interactive business providing a central market where multiple buyers and

sellers can engage in e-commercei. Horizontal e-marketplace- connects buyers and sellers across many

industries1. Primarily for MRO materials2. All industries need office supplies, travel, etc.

ii. Vertical e-marketplace- connects buyers and sellers in a given industry

1. Primarily for DM2. Each industry has unique DM

19

36. Marketing Mixa. Set of marketing tools your organization will use to pursue its marketing

objectives in reaching and attracting potential customersB2C Marketing Mix TOOLS B2B Marketing Mix TOOLS

Registering with search engines MORE PERSONALOnline Ads- pop up or pop under ads Occurs in e-marketplaceViral Marketing-blue mtn cards Requires establishing formal business

relationshipAffiliate programs- Delta skymilesClickthrough- count # of ppl who visit one site and use an ad to get to anotherConversion rate- % of potential customers who actually buy something.

Requires IT system integrationDoesn’t include broad and generic marketing mix

37. Moving Money easily and securely in e-commercea. B2C payment systems

i. Credit cardsii. Financial cybermediaries- Paypal

iii. Electronic checks- send $ from checking or savings acct to another person or org.---online banking

iv. Electronic bill presentment and pmt- sends bills over internet and provides an easy to use mechanism to pay for them if the amt looks correct.—checkfree, quicken

v. Smart cards- plastic card that contains embedded chip on which digital info can be stored—debit cards…breeze card

vi. Digital Wallet- software and information1. software provides transaction security2. information includes delivery information and other forms

of necessary informationa. client side- you create it and keep it on your

computerb. server side- (thin wallet) an org creates this for you

and keeps it on its servers.b. B2B payment systems

i. B/c make large purchases, will NOT pay with credit card or Paypalii. Electronic Data Interchange (EDI)- direct computer-to-computer

transfer of transaction information in standard business documents, such as invoices and purchase orders, in a standard format

1. how businesses comm. With each other2. used in e-marketplaces and VANs

iii. Financial EDI- an electronic process used primarily within B2B for the payment of purchases

1. electronic money in B2B2. often occurs through an automated clearing house

c. SECURITY!

20

i. Encryption- scrambles the contents of a file so that you can’t read it without having the right decryption key

ii. Secure sockets layer- creates a secure connection b/w a web client and server

1. encrypts the information2. sends the information over the net

iii. Secure electronic transactions- transmission method that ensures transactions are legitimate as well as secure.

1. helps verify use of credit cardiv. Phishing messages- fake emails with logos from certain sites…not

legit! Trying to steal your $.

Chapter 6: Systems Development38. Systems Development life cycle- structured step by step approach for developing information systems39. 7 STEPS Systems Development Life cycle:

a. Planningi. 3 PRIMARY ACTIVITIES:

1. Define system to be developeda. Critical success factor- factor that is critical to your

org success (something you must do for your org to succeed)

2. Set the project scopea. Project scope- clearly defines the high-level system

requirementsb. Scope creep- occurs when the scope increasesc. Feature creep- occurs when developers add extra

features that were not part of the initial requirements

3. Develop the project plana. Project plan- answers the what, when and who

questions of system development.b. Project manager- individ who is an expert in

project planning and management, defines and develops the project plan and tracks the plan to ensure that all key project milestones are completed on time

c. Project milestone- represents key dates by which you need a certain group of activities completed.

b. Analysisi. Gather business requirements

ii. Business requirements- the detailed set of knowledge worker requests that the system must meet in order to be successful

iii. Requirements definition document- prioritizes the business requirements and places them in a formal comprehensive document.

21

1. sign-off- user’s actual signature indicating they approve all the business requirements.

c. Designi. Design the technical architecture

1. Technical architecture- defines the hardware, software, and telecommunications equipment required to run the system

ii. Design system models1. modeling- drawing a graphical representation of a design2. Graphical User interface- the interface to an information

system3. GUI screen design- the ability to model the information

system screens for an entire systemd. Development

i. Build technical architectureii. Build database and programs

iii. Performed mostly by IT specialistse. Testing

i. Write test conditions1. detailed steps the system must perform along with the

expected results of each stepii. Perform testing

1. unit testing- tests individual units of code2. system testing- verifies that the units of code function

correctly when integrated3. integration testing- verifies that separate systems work

together4. user acceptance testing- determines if the system satisfies

the business requirements.f. Implementation

i. Write user documentation1. user documentation- highlights how to use the system

ii. Provide training1. online training- runs over the internet or off a CD-rom.2. workshop training- is held in classroom env led by an

instructoriii. Parallel Implementation

1. use both the old and new system simultaneouslyiv. Plunge Implementation

1. discard the old system completely and use newv. Pilot Implementation

1. start with small groups of ppl on the new system and gradually add more users

vi. Phased Implementation1. implement the new system in phases

g. Maintenancei. Build a help desk

22

1. group of ppl who responds to knowledge worker’s questions

ii. Support system changes—DIFFERENT METHODOLOGIES1. Waterfall methodology- sequential, activity-based process

in which each phase in the SDLC is performed sequentially from planning through implementation

2. Rapid Application Development- emphasizes extensive user involvement in the rapid and evolutionary construction of working prototypes of a system to accelerate the systems development process PHASES OVERLAP..MERCEDES ONLINE TRUCK

a. Prototype- smaller scale representation or working model of the user’s requirements or a proposed design for an information system

40. Costs of Errors in SDLC’s (Systems Development Life Cycle)a. The later in the SDLC you find errors, the more expensive they are to fix!

41. Miscommunicationa. When something is not explicitly stated, the hearer often fills in the gaps

based on his/her experience and frames of referenceb. Intended meaning of the word “niggardly”—actually means “miserly” but

can be mistaken as a derogatory racial slurc. Backtracking- repeating what the participant has said, but in your own

wordsi. Forces facilitator to pay attn

ii. Allows the participant to correct misunderstandings on part of facilitator

iii. Encourages participant to contribute more ideas, information b/c he knows that the facilitator is paying attn.

42. 3 APPROACHES TO SYSTEMS DEVELOPMENT:a. Insourcing- involves choosing IT specialists within your org to develop

the systemb. Outsourcing- the delegation of specific work to a third party for a spec

length of time, at a spec cost, and at a spec level of service.i. Rapid growth b/c of

1. globalization2. the internet3. growing economy and low UR4. technology5. deregulation

ii. 4 OPTIONS:1. Purchase existing software2. purchase existing software and pay pub to make certain

mods3. Purchase existing software and pay pub for right to make

mods yourself

23

4. Outsource development of an entirely new and unique system for which no software exists that is available for purchase

iii. Onshore outsourcing- engaging another comp within the same country for services

iv. Nearshore outsourcing- contracting an outsourcing arrangement with a comp in a nearby town

v. Offshore outsourcing- contracting with a comp that is geographically far away.

1. Major Concerns:a. Diff to determine if vendor is competent and

reliableb. Cultural differences- misunderstandingsc. Difficult to resolve disputes if parent comp can

legally disconnect from subsidiaryd. Resolving disputes through litigation complicated

and costlyvi. ADVANTAGES OUTSOURCING

1. focus on unique core competencies2. exploit the intellect of another org3. better predict future costs4. acquire leading-edge technology5. reduce costs6. improve performance accountability

vii. DISADVANTAGES OUTSOURCING1. reduces technical know-how for future innovation2. reduces degree of control3. increases vulnerability of your strategic information4. increases dependency on other orgs

viii. IT Functions candidates for OUTSOURCING1. Non-core functions

a. Payrollb. Human resourcesc. ERPd. Customer relationship management

i. Help deskii. Billing, acct info

e. Productionf. Financial

ix. Costs associated with OUTSOURCING1. domestic and international travel2. telecommunications3. providing specialized equipment to vendors4. not all outsourcing projects are successful!

c. Prototyping- process of building a model that demonstrates the features of a proposed product, service, or system.

24

i. 4 STEPS:1. Identify basic requirements2. Develop initial prototype3. User review4. Revise and enhance the prototype

ii. Proof of Concept prototype- used to prove the technical feasibility of a proposed system.

iii. Selling prototype- used to convince ppl of the worth of a proposed system.

iv. ADVANTAGES PROTOTYPING1. Encourages active user participation2. Helps resolve discrepancies among users3. Gives users a feel for the final system4. Helps determine technical feasibility5. Helps sell the idea of a proposed system

v. DISADVANTAGES PROTOTYPING1. Leads people to believe that the final system will follow

immediately2. Gives no indication of performance under operational

conditions3. Leads the project team to forgo proper testing and

documentationvi. End-user development

1. Collection of techniques and methodologies for the creation of non-trivial software applications by end users

a. Successful strategy relies on…i. knowing which apps are good candidates

ii. providing end users with the right tools2. Potential Downfalls w/ end-user development

a. Not all apps developed by end users are accepted b/c of

i. Version controlii. Low quality

iii. Loss of control3. Users must have development tools that:

a. Are easy to useb. Support multiple platformsc. Offer low cost of ownershipd. Support a wide range of data types

Collaborative Technology43. synchronous collaboration- the interaction occurs via computer within 5 seconds

a. IM/chat, web conferencing44. Asynchronous collaboration- no time limit on the computer-mediated interaction

a. BBS, threaded discussions, email

25

Haag Chapter 8- Protecting People and Information45. Actions in Ethical dilemmas determined by

a. Your basic ethical structureb. The circumstances of the situation

i. Consequences of the actionii. Society’s opinion of the action

iii. Likelihood of effect of actioniv. Time to consequences of actionv. Relatedness of people who will be affected by action

vi. Reach of actionc. Basic Ethical Structure

i. Determines what actions you consider to be:1. minor ethical violations2. serious ethical violations3. very serious ethical violations

46. Copyright- legal protection afforded to an expression of an idea47. Pirated software- the unauthorized use, duplication, distribution, or sale of

copyrighted software48. Key logger software- program that when installed, records every keystroke and

mouse clicka. Screen capture programsb. Email is stored as it travels from sender to recipientc. Hardware key logger—b/w motherboard and keyboard

49. Identity theft- the forging of someone’s identity for the purpose of fraud50. Phishing- a technique to gain personal information for the purpose of identity

theft.a. NEVER reply without question to an email asking for personal infob. Click directly on a web site provided in such an email

51. Monitoring technology- used by employers to track employee behavior, prevent cyberslacking (misuse of company resources), gaming, chatting while at work.

a. Reasons for monitoringi. Hire the best ppl possible

ii. Ensure appropriate behavior on the jobiii. Avoid litigation for employee misconduct

52. Cookies- a small file that contains information about you and your web activities, which a web site places on your computer.

a. Handle cookies by using:i. Web browser cookie management option

ii. Buy a program that manages cookies53. Spyware- software that comes hidden in downloaded software and helps itself to

your computer resources.54. Targeting technology- offers customized based on buyer’s shopping patterns…

through cookies. a. Coremetrics- software company that provides targeting software to online

vendors55. Spam- unsolicited email from businesses advertising goods and services

26

a. Get past spam filters by:i. Inserting characters

ii. Inserting HTML tags that do nothingiii. Replying usually increases, rather than decreases amount of spam

56. Adware- software to generate ads that installs itself when you download another program.

57. Malware- software designed to harm computer or computer security58. HOW TO PROTECT AGAINST THESE NUISANCES??

a. Purchase or download free anti virus, firewall, antispam software individually

b. Purchase an internet security suite such as Norton Internet security or mcafee

c. Install Spybotd. Install Microsoft windows defendere. Anonymous web browsing

59. Virus- software that is written w/ malicious intent to cause annoyance or damage60. Worm- type of virus that spreads itself from computer to computer usually via

email.61. Trojan Horse- software you don’t want inside software you do want.62. Denial-of-service Attack- floods a web site with so many requests for service that

is slows down or crashes.63. Government agencies Storing personal information:

a. Need info to operate effectivelyb. Whenever you are in contact w/ gov agency, you leave behind info about

yourselfc. Law Enforcement

i. NCIC (natl crime info center)ii. FBI

d. IRSe. Census Bureau (comps can buy data)f. FICAg. Social Security Admin

64. HIPAA—Health Insurance Portability and Accountability Act—protects personal health information

65. Financial Services Modernization Act- requires that financial institutions protect consumer info.

66. SAFEGUARDING DATA IN A DATABASE:a. Password-protecting database-

i. Database admin sets database passwordii. User cannot open a database file in access unless they provide the

correct pwiii. Strong pw are more secure

1. no names of ppl or pets2. at least 7 characters long including upper and lower case

letter, number, and symbolsb. Encrypting a database

27

i. If someone steals a file and tries to open it w/ a program other than access, PW WON’T PROTECT IT!

ii. MUST ENCRYPT!1. converts data in database to a format readable only by

accessc. User-Level Security

i. Establishes specific levels of access to database objects for individual groups of users

ii. Set permissions1. specify levels of access for each user and group of users2. granted by database admin

iii. Workgroup info file1. define user groups’ username and user pw

67. Risk Management- a. The identification of risks or threatsb. The implementation of security measuresc. Monitoring of measures for effectiveness

68. Risk Assessment asks…a. What can go wrong?b. How likely is it to go wrong?c. What will the consequences be?

69. Backup- process of making a copy of info.70. Anti-virus software- detects and removes or quarantines computer viruses71. Firewall- hardware and or software that protects a computer or network from

intruders72. Biometrics- use of physiological characteristics for identification purposes.73. Encryption- scrambles the contents of a file so that you can’t read it w/out the

decryption key. 74. Intrusion detection software- looks for ppl on the network who shouldn’t be there

or who are acting suspiciously.75. Security auditing software- checks out your computer or network for potential

weaknesses.76. Social Engineering- acquiring info that you have no right to by conning ppl into

giving it to you.a. Coaxing an employee to provide her userid and pw by pretending to be

someone from tech support who wants to fix a problem that “many users in the org are having”

b. Anticipating that the user wrote a pw on an ATM cardc. Anticipating that users have disabled a pw protection screen saver and left

their computers logged on and unattendedd. Anticipating that employees will not challenge a well-dressed stranger

(who look like employees from another office) and let them in the building w/out checking proper ID.

28

Extended Learning Module H- Computer Crime and Forensics77. Computers involved in crime in 2 ways:

a. As the targets of misdeedsb. As weapons or tools in misdeedsc. Inside the orgd. Outside the org

78. Virus Hoax- email telling you of a non-existent virusa. Urges you to forward it to everyone you knowb. Describes awful consequences of not actingc. Quotes a well-known authority like Bill Gates

79. Malware bot- bots used for fraud, sabotage, DOS attacks or some other malicious purpose

80. Bot- computer program that runs automatically81. Web defacing- altering protected web sites.82. Computer Forensics-

a. TWO PHASES:i. Collecting, authenticating, and preserving electronic evidence

1. WHERE TO LOOK??a. Floppy disks, CD’s, DVD’s, zip disksb. Backup tapes or other mediac. USB mass storaged. Flash memory cardse. Voice mailf. Electronic calendarsg. Scannersh. Photocopiers and fax machinesi. Slack space- space b/w the end of the file and the

end of the clusterj. Unallocated space- set of clusters that has been

marked as available to store info but has not yet received any

2. Authenticating- process necessary for ensuring that no evidence was planted or destroyed

ii. Analyzing the findings1. Interpretation of info uncovered2. recovered info must be put in context3. computer forensic software pinpoints file’s location on

disk, creator of each file, the date it was created, and others.b. Ways to Hide Info

i. Rename the fileii. Make the info invisible

iii. Use windows to hide filesiv. Protect the file w/ a pwv. Encryption

vi. Steganography

29

1. hiding info inside other information (“hiding in plain sight”)

a. EX: watermark on $ billsb. Posting text where the real message is on every

other line.vii. Compress the file

1. newer versions of computer forensic software can open a compressed file

c. Computer Forensics is used in:i. The military- ntl and intntl investigations

ii. Law enforcement- gather electronic info in criminal investigationsiii. Corporations and non-profits- internal investigationsiv. Consulting firms that specialize in forensics or auditing

Haag Chapter 9- Emerging Trends and Technologies83. Software as a Service- delivery model for software in which you pay for software

on a pay-per-use basis instead of buying the software outright.a. Makes use of an application service providerb. Push technologies and personalizationc. VoIP

84. Push Technologies- environment in which businesses come to you with information, services, and product offerings based on your profile.

a. Not spam or mass emailb. More like…Customization and tailored offers just for you!

85. VoIP- allows you to send voice comm. Over the internet and avoid the toll charges that you would normally incur from your long distance carrier.

86. Physiological interaction- a. We now use physical interaction- keyboards, mice, etcb. Physiological interfaces will actually capture and use your real body

characteristicsi. Voice

ii. Iris scan87. Automatic Speech Recognition- not only captures spoken words, but also

distinguishes word groupings to form sentences88. Virtual Reality- three-dimensional computer simulation in which you actively and

physically participate.a. Uses 3 unique devices:

i. Gloveii. Headset

iii. Walkerb. EX: Volvo demonstrating safety featuresc. EX: Airlines use to train pilots for adverse weather conditionsd. CAVE automatic virtual environment- special 3d virtual reality room that

can display images of ppl and objects in other CAVE’s. 89. Biometrics- use of physiological characteristics- fingerprint, iris, voice sound, and

even breath- to provide identification.

30

a. Can create custom fitting clothes using Biometrics90. Biometric Security

a. 3 STEPS:i. What you know (pw)

ii. What you have (card of some sort)iii. Who you are (biometric)

b. Today’s systems (ATMs for ex) use only the first twoc. One reason why identity theft so high!!!

91. Biometric Devices:a. Facial recognition software- provides ID by evaluating facial

characteristicsb. Implant chips- microchip implanted into the human body that store info

about you and can be used for tracking (GPS)c. Biochips- chip that can perform physiological functions when inserted into

the human body92. Wearable Computers- fully equipped comp that you wear as a piece of clothing or

attached to a piece of clothing similar to the way you would carry your cell phone on your belt.

a. EX: Xybernaut93. Repetitive Strain Injury

a. EX: to thumbs and forefingers as a result of text messaging94. RFID (radio frequency ID)- uses a chip in a tag or label to store info, and info is

transmitted from, or written to, the tag or label when the chip is exposed to the correct frequency of radio waves.

a. EX: Wal-mart requires that all suppliers use RFID on productsb. Common RFID is passivec. No battery powerd. Antenna absorbs radio waves and stores as energye. When enough energy is stored, the chip is “jolted” to life and info

transmissions occur95. RFID Applications:

a. Exxon/Mobil Speedpass- wave key ring at reader instead of swiping cardb. Anti-theft car keysc. Library book trackingd. Livestock trackinge. Supply Chainf. Passports- coming to the U.S. in 2007

96. The “Digital Divide”a. There are technology-challenged countries and culturesb. Must take technology to those places!c. EX: windup laptops aim to bridge Digital divide—UN summit focuses on

spreading technologyd. EX: Tackling Poverty with Technology—HP donating computers to

struggling African nation to help create jobs, improve farming, and educate