Info System Test 1 Notes .docx

Chapter 1: Introduction to IS IT has become a strategic driver The Kodak Case: Kodak missed digital photography, Kodak announced that it was launching blockchain technology called KodakCoin, The Kodak systems would allow photographers to register work that they can license and then receive p...

Chapter 1: Introduction to IS IT has become a strategic driver The Kodak Case: Kodak missed digital photography, Kodak announced that it was launching blockchain technology called KodakCoin, The Kodak systems would allow photographers to register work that they can license and then receive payment Delta - the Ukrainian situational awareness and battlefield management system What is IT?: Any computer-based tool that people use to work with information and support an organization’s information needs What IS?: A system that collects, processes, stores, analyzes, and disseminates information for a specific purpose, An IS may include a number of ITs. However, in practice, the terms IT, IS, and MIS are used interchangeably When you study IS you become the informed user An informed user is a person knowledgeable about information systems and information technology When you become the informed user You will benefit more from your organization’s IT applications because you will understand what is “behind” those applications, You will be in a position to enhance the quality of your organization’s IT applications with your input, You will be in a position to recommend new IT applications for your organization, Being an informed user will keep you abreast of both new information technologies and rapid developments in existing technologies, You will understand how using IT can improve your organization’s performance and teamwork as well as your own productivity, and you will be aware of any security issues. When you become the informed user engage in digital transformation: To leverage IT to dramatically improve all aspects of their functioning, and Big Data, Analytics, AI etc Managing IT is no longer the exclusive responsibility of the IS department: users play an active role in managing IT IT offers career opportunities: Chief information officer, IS Director, Project Manager, System Analyst, Database Administrator, Webmaster, and BI/BA professional There is a misconception that It is a masculine profession: Ada Lovelace (1815-1852) is regarded as the world’s first computer programmer, Grace Hopper wrote the first programming manual and invented the compiler and the COBOL language, In 1946, six women wrote code for ENIAC, America’s first electronic computer, Margaret Hamilton and her team developed software that guided Apollo 11 on its 1969 lunar mission, Hedy Lamarr co-invented frequency-hopping spread spectrum during WWII – a WiFi prototype, and Gladys West invented GPS modeling principles Managing Information Resource: Traditional Functions of The MIS Department Vs Consultive Functions of The MIS Department Traditional Functions of The MIS Department: Managing IS development, Managing IS operations, Providing tech support, IS infrastructure planning, The MIS department mostly ‘owns’ most IT systems The MIS department is reactive – it reacts to the changes/requests of the management Consultive Functions of the MIS department: The IS Department no longer ‘owns’ IT systems • Initiating and designing strategic IS • Launching e-commerce and e-business • IS integration activities • Educating non-IS managers about IS value • Educating IS staff about business • Managing outsourcing • IS innovation • The MIS department is proactive and strategic What’s a System? • A system is... • A set of interrelated components • With a clearly defined boundary • Working together • To achieve a common set of objectives • By accepting inputs and producing outputs • In an organized transformation process Basic Functions of a System • Input • Capturing and assembling elements that enter the system to be processed • Processing • Transformation process that converts input into output • Output • Transferring transformed elements to their ultimate destination All systems have input, processing, and output • A cybernetic system – a self-monitoring, self- regulating system – adds feedback and control: • Feedback is data about the performance of a system • Monitoring • Control involves evaluating feedback to determine whether a system is moving toward the achievement of its goal • Regulating An organization as a cybernetic system: Company sales (a company is a system) decreased • Information (feedback) was sent to the sales manager • The sales manager acts (controls): reassigns salespersons, hires new salespersons, fires, changes reward structure, etc. A system exists and functions in an environment containing other systems • Subsystem – a component of a larger system • A larger is referred to as ‘environment’ • Systems that share the same environment may be connected to one another through the shared boundary or interface • Open versus closed system • Open – interacts with other systems Characteristics of Open Cybernetic Systems • Input /Output Model: All systems transfer inputs into outputs. The system is viewed as a transformation process in a dynamic interaction with its environment. • Feedback and Control: The feedback of information regarding performance is used to adjust and control performance. • Interdependence: A system is composed of interrelated parts or elements. Characteristics of Open Cybernetic Systems • Holism: The system is a whole, not merely the sum of its parts, and its performance should be viewed as an integrated system. • Goal seeking: Interaction between elements results in some final state or goal. • Steady State: The system seeks a state of dynamic equilibrium. Characteristics of Open Cybernetic Systems • Differentiation: Units perform specialized functions. Open systems tend to move towards increased differentiation. • Entropy: Systems exchange information, energy, or material with their environment. Every transformation process involves the use of energy and resources. To keep a system operating there must be an infusion of energy and resources. Characteristics of Open Cybernetic Systems • Equifinality: A given end state can be reached by many potential means. More than one way to achieve the same result. • Same weight gain/loss achieved by different means • Same level of org output – different mix of resources • Same computer power – different mix of hardware • Hierarchy: One system contains several other systems within it and is also a part of a large super-system (environment). What’s an Information System? • An organized combination of... • Hardware and software • Communication networks • Data resources • Policies and procedures • People • This system... • Stores, transforms, retrieves, and disseminates information in an organization • Hardware is a device such as the processor, monitor, keyboard, and printer. Together, these devices accept data and information, process them, and display them. • Software is a program or collection of programs that enable the hardware to process data. • A database is a collection of related files or tables containing data. • A network is a connecting system (wireline or wireless) that permits different computers to share resources. • Procedures are the set of instructions about how to combine the above components in order to process information and generate the desired output. • People are those individuals who develop, implement, support, and use the hardware and software, interface with it, or utilize its output. Data vs. Information vs. Knowledge • Data are raw unprocessed facts • Elementary descriptions of things, events, activities, etc. that are recorded, organized, and stored but have no meaning (e.g., a list of grades A, A, C, B, B, A+, F...) • Information is data converted to be useful to end users (e.g., the GPA) • Information is data that are subjected to a value-added process • Aggregated, manipulated and organized • Its content is analyzed and evaluated • It is placed in a proper context for a human user Data vs. Information vs. Knowledge • Knowledge • Information that has been processes/analyzed to convey understanding, accumulated learning, and expertise • Knowing what to do, how to act, how to solve the problem, etc. • A report recommending a particular course of action • E.g., cut-off admission GPA to ensure success in the Program How does IT affect Organizations? Decreasing prices • Yearly cost of operating a basic Internet system • Year 2000 - $200,000 • Year 2024 – below $1,000 How does IT affect Organizations?: The Book Industry • E-books and e-book readers • Amazon • University bookstores will soon transform into e-bookstores • The Music Industry • Spotify • iTunes • The Video Industry • Netflix • Netflix Original How does IT affect organizations?: The Software Industry • Cloud services/Software as a service • The Video Game Industry • The Photography Industry • Kodak used to be a market leader • The Marketing Industry • Search engine optimization • Smart Speaker search engine optimization • Social media marketing How does IT affect Organizations?: The Recruiting Industry • LinkedIn – your online resume • Used by both employers and job seekers • The Financial Services Industry • Online trading • IPOs for high-tech companies • The Automobile Industry • Software inside regular vehicles • Self-driving vehicles • Tesla’s full self-driving software How does IT affect organizations: IT reduces the number of middle managers • IT makes managers more productive • IT changes the manager’s job • Improves decision-making (e.g., expert systems) • Provides real-time information • Business intelligence systems • IT both eliminates old and creates new jobs How does IT affect organizations: Health and Safety • Technology addiction • Job stress • Anxiety • Information overload • Long-term use of the mouse and the keyboard • Repetitive strain injuries • Carpal tunnel syndrome (wrists and hands) • Radiation exposure How does IT affect organizations: Ergonomics (human factors engineering) • Goal is to design healthy work environments • Safe, comfortable, and pleasant to work in • Increases employee morale and productivity • Also called human factors engineering Importance of IS in society: Improved quality of life • Telecommuting • Online learning • The Robot Revolution • Amazon’s warehouses • Cobots – collaborative robots – robots that operate alongside humans in a shared workspace to automate repetitive or dangerous tasks • Opportunities for people with disabilities • Work, chores, healthcare • E.g., Roomba Robot Vacuum Sample Test Question? Ergonomics is often referred to as: New age learning techniques. Human factors engineering. IT Economics. Computer-assisted instruction. None of the above. Answer: b) Human factors engineering. Technology Guide 1: Hardware What is Hardware? Computer Hierarchy Input and Output Technologies The Central Processing Unit Memory What is Hardware? Invariable part of the computer • Hardware consists of: • Central processing unit (CPU) • Primary storage • Secondary storage • Input technologies • Output technologies • Communication technologies Computer Hierarchy • Supercomputers • Mainframe Computers • Personal Computers (PCs) • Laptop/Notebook Computers • Tablet Computers • Handheld Computers • Wearable Computers (Wearables) Supercomputers • Extremely powerful systems designed for • Scientific, engineering, and business applications • Massive numeric computations • Markets include • Government research agencies • Large universities • Major corporations • Use massive parallel processing • Trillions of operations per second Supercomputers • computers that are among the fastest of any in the world at the time of their introduction Mainframe computers • Large, fast, powerful computer systems • Large storage capacity • High transaction processing • Handles complex computations • Widely used as superservers for • Large client/server networks • High-volume Internet websites • Becoming a popular computing platform for Data mining, data warehousing and business intelligence • Electronic commerce applications Personal Computers (PCs) • Laptops/Notebooks • Currently little or no difference • Tablet • Handheld 8 Wearable Computers (Wearables) • Miniature computers that people may wear under, with, or on top of their clothing • Users may multitask when interacting with wearables • Smartwatch • Fitbit • Solar Powered Clothing • Google Glass Enterprise Edition • Currently discontinued Two main types of input technologies • Human data-entry • Source-data automation Human data-entry • keyboard • mouse • pointing stick • trackball • joystick • touch-screen • stylus • digital pen • Wii • webcam • voice-recognition • gesture recognition – no need for a mouse! Source-data automation • magnetic stripe reader or tap (e.g., for credit cards) • barcode scanners • optical mark reader (scantron sheet reader) • sensors • cameras • RFID • optical character recognition Output devices • Graphical User Interface (GUI) • Icons, menus, windows, buttons, bars • Selected with pointing devices • Monitor • Printer • Voice • Virtual Reality • Augmented Reality • Mixed Reality Output devices • Most computers have a Graphics Processing Unit (GPU), Graphics Card or Video Card • Integrated GPU (iGPU) - integrated into the motherboard (for most computers) • Graphics Card (Discrete GPU) - a stand-alone card with GPU, VRAM and a cooling system • Video Card - optimized for video processing • E.g., Video editing, conversion, projecting, streaming • These terms are often used interchangeably as most people don’t know the difference The CPU performs the actual computation or “number crunching” inside any computer • Made up of millions of microscopic transistors embedded in a circuit on a silicon wafer or chip. Parts of a microprocessor include: • Control unit • Arithmetic-logic unit (ALU) • Registers Program instruction processing speeds • Megahertz (millions of cycles per second) • Gigahertz (billions of cycles per second) • Teraflops (trillions of cycles per second) • Commonly called the “clock speed” • Moore’s Law Throughput • The ability to perform useful computation or data processing assignments during a given period • Speed is dependent on • Size of circuitry paths (bus) that interconnect microprocessor components • Capacity of instruction processing registers • Use of high-speed cache memory Bit • 0 or 1 • Byte • 8 bits = 1 keyboard character 1 kilobyte = thousand bytes (a thousand characters) • 1 megabyte = 1 million characters • 1 gigabyte = 1 billion characters • 1 terabyte = 1 trillion characters • 1 petabyte = 1 quadrillion characters • master copies of the shows and movies available on Netflix (2013) = 3.14 PB • 1 exabyte = 1 quintillion characters • 1 zettabyte (ZB) • 2+ ZB - all annual data transmitted over the Internet Two basic categories of computer memory • Primary • Secondary Primary memory • stores small amounts of data that the CPU will use immediately • located on the motherboard as close to the CPU as possible • Types • Registers – part of the CPU. Least capacity but the fastest • Cache – temporarily stores data that are frequently used by the CPU • Random Access Memory – RAM • Read Only Memory – ROM – BIOS data to boot the computer. Stays even after system crashes Secondary memory (storage) • stores much larger amounts of data • an entire software program • located outside the CPU • Non-volatile • Slower than RAM • Cheaper • Uses various media Secondary memory (storage) • Magnetic tape – reels – slowest sequential access Secondary memory (storage) • Flash memory • Uses a small chips containing thousands of transistors • Can store data for virtually unlimited periods without power • Easily transported and highly durable • Plugs into any USB port Secondary memory (storage) • Solid State Drives (SSD) • No moving parts • Store data in memory chips • Less power, quiet, more reliable • Faster! • Same purpose as magnetic disks • More expensive than magnetic disks • Are now becoming standard in laptops • Solid State Hybrid Drive (SSHD): magnetic disk + SSD as a single unit Secondary memory (storage) • Optical Storage Devices • A laser reads the surface of a reflective plastic platter • Slower than magnetic disks but less expensive • CD, DVD, Blu-Ray Current trend – in-memory databases • Primarily relies on main memory (i.e., RAM) for computer data storage • More expensive but very fast • SAP S/4HANA Technology Guide 2: Software Software variable part of the computer a set of computer programs and related documentation Computer program the sequence of instructions for the computer that enable the hardware to process data Documentation written description of the functions of a software program Systems software a set of instructions that serves primarily as an intermediary between computer hardware and application programs operating system – manages the computer’s operations, e.g., Windows 11 Application software a set of computer instructions that provide more specific functionality to a user Software package/suite, e.g., MS Office Software Licensing Software may be copyrighted You don’t buy software You buy a license/right to use the software A license protects the vendor’s property rights Can do: Sell software Dispose of rights Can’t do: Duplicate Resell multiple copies Reverse engineering - analyzing the operation of a program to recreate the source code Modify Proprietary Software is purchased software that has restrictions on its use, copying, and modification. The company that develops proprietary software keeps the source code private (i.e., closed-code software). Open-Source Software the source code for open-source software is available at no cost to both developers and users, and it is distributed with license terms that ensure that its source code will always be available. Developers collaborate on the development of an application using programming standards which allow anyone to contribute to the software Many companies (Google, IBM) create open-source software and give it away for free As each developer completes a project, the application code becomes available and free to anyone who wants it OpenOffice.org – an open-source free office suite What software is more secure: open- or closed-source? Good exam question… The Program Must include source code and allow distribution in source code as well as compiled form The License Shall not restrict any party from selling or giving away the software as a component of an aggregate software distribution containing programs from several sources Must allow modifications and derived works, and must allow them to be distributed under the same terms as the license of the original software The License (Continued) Must not restrict anyone from making use of the program in a specific field of endeavor The rights attached to the program must apply to all to whom the program is redistributed, without the need for execution of an additional license Must not be specific to a product Must not contaminate other software by placing restrictions on any software distributed along with the licensed software Hybrid Software Uses the open software approach as a basis but adds closed source/proprietary software The product includes both open software (that anyone may use) and proprietary software (that may be activated after purchasing a key) Works only for vendors that are original software developers You may not take open source software developed by others and combine it with your own proprietary software System Software A set of instructions that serves primarily as an intermediary between computer hardware and application programs. Controls and supports information processing activities Controls and supports peripherals (e.g., printers, keyboard, mouse) Enables self-regulatory functions of the computer Provides commonly used sets of instructions for all applications Supports application software by directing the computer’s basic functions Operating system – a major type of systems software supervises the overall operation of the computer by monitoring the computer’s status, scheduling operations, and managing input and output processes the operating system must be loaded and activated before other tasks can be accomplished E.g., MS Windows and iOS (closed-source); and Linux and Android (open-source) User Interface: End User/System and Network Communications. Resource Management: Managing the Use of Hardware Resources. Task Management: Managing the Accomplishment of Tasks. File Management: Managing Data and Program Files. Utilities and Other Functions: Providing a Variety of Support Services. User Interface: The part of the operating system that allows you to communicate with it. Main types: Command-driven. Menu-driven. Graphical user interfaces (GUI) – uses icons, bars, buttons, boxes, images, etc. Natural user interface (NUI) The interface itself remains invisible as users gradually learn complex interactions It enables intuitive interaction between users and systems NUI leverages human experience of the natural world Users employ NUI without conscious attention to the interface Gesture recognition, animation, voice, eye tracking, cartoon-like characters, avatars, AI iPhone – Siri, Android – Google Assistant, and Windows 11 – Cortana Amazon Echo and Google Nest Application Software: A set of computer instructions that provide more specific functionality to a user Commercial Off-the-Shelf Many copies are sold Minimal changes beyond scheduled upgrades Purchasers have no control over specifications, schedule, or evolution, and no access to source code Product vendor retains the intellectual property rights of the software Custom Software Software applications developed within an organization for use by that organization Never put names of custom software in job postings Software Suites – Commercial Off-the-Shelf Most widely used productivity packages are bundled together as software suites Advantages: Cost less than buying individual packages All have similar GUI or NUI (in the future) Work well together Disadvantages: All features are not used, many unwanted features Called Bloatware Takes a lot of disk space The 80/20 rule – with software, it is the 95/05 rule Sample Test Question? Which of the following statements is(are) false about Commercial Off-the-Shelf closed-source application software? Software developers usually sell thousands of copies of their products. Commercial Off-the-Shelf application software is widely used by various individuals and organizations. Purchasers have no access to source code or internal documentation. Purchasers gain the intellectual property rights of the software. MS Office is an example of Commercial Off-the-Shelf application software. Answer: d) Purchasers gain the intellectual property rights of the software. Chapter 2: Organizational Strategy, Competitive Advantage, and Information Systems An organizational strategy is a planned approach that the organization takes to achieve its goals and its mission statement. Competitive advantage is an advantage over competitors in some measure such as cost, quality, or speed; leads to control of a market and to larger-than-average profits. Profits above the industry average. A business process is a collection of related activities (inputs, processing, and outputs) that produce a product or service of value to the organization, its business partners and/or its customers. Customers may be External (buying product/service) Internal (a department in the same organization) Business processes are measured based on Efficiency focuses on doing things with min resources without delay or without wasting money Effectiveness focuses on doing the things that matter; that is, creating outputs of value to the process customer for example, high-quality products According to systems theory, an organization is a cybernetic system What part of the system do business processes represent? A cross-functional business process No single functional area is responsible for its execution. Multiple functional areas collaborate to perform the process. E.g., the materials procurement process Includes all parties involved in acquiring needed materials externally from a vendor. Comprises steps that are completed in three different functional areas of the firm: purchasing, warehouse, and accounting. A cross-functional business process E.g., the order fulfillment process Sales department Receives a purchase order; creates a sales order Shipping department Prepares and ships the order Accounting department Creates an invoice; bills the customer; records a payment Can we consider the functions (i.e., departments) involved in a cross-functional business process open cybernetic systems? IS are enablers of an organization’s business processes. IS play role in three areas Executing the process calculations, comparisons or creation of data, documents or other output Capturing and storing process data format the data, store it in the correct data file on a physical storage device such as a hard drive or in the cloud Monitoring process performance examine, analyze and assess the business process to ensure compliance and to evaluate the process Robotic Process Automation These are software (not physical) bots! A software system that enables enterprises to automate repetitive, high-volume tasks that historically were carried out by employees. Companies that employ RPA develop software “robots” – known as bots – that automate the steps in a business process. The bot must be programmed manually. The user performs a series of tasks, the RPA system records the actions and mimics them later. QUESTION THAT WILL BE ON THE TEST: Which of the following is not a Robotic Process Automation use case? E-mail Query Processing. Data Extraction. Image Recognition. Payroll Processing. Answer: c) Image Recognition. Two ways to improve business processes: Business Process Re-engineering Business Process Improvement Michael Hammer & James Champy, 1993, Book “Reengineering the Corporation” Business Process Reengineering - BPR A radical redesign of an organization’s business processes to increase productivity and profitability IS a major BPR enabler Examines business processes with a “clean slate” approach Assume we don’t have a process in place What’s the best way to complete a task? BPR Extremely high risk Too difficult Too comprehensive Too long Too many changes Huge impact on employees BPR became associated with layoffs Union resistance Huge failure rate Alternative – Business Process Improvement An incremental approach to move an organization toward business process centered operations Focuses on reducing variation in process outputs by identifying the underlying cause of the variation One small change at a time 80/20 rule 20% of all sub-processes cause 80% of all problems BPI: Low risk / low cost Incremental change Bottom-up approach Takes less time Quantifiable results Can go back to the previous process Reverse changes BPR: High risk / high cost Radical redesign Top-down approach Time consuming Impacts can be overwhelming High failure rate Cannot go back to the previous process Business Process Improvement Phases Define Measure Analyze Improve Control Define Phase Document the existing “as is” process activities input, processing, and output usually as a graphical process map or diagram the customer’s requirements a description of the problem Measure Phase Identify relevant process metrics, such as time and cost to generate one output (product or service) Collect data to understand how the metrics evolve over time Data Sources customer and employee observations interviews Surveys Develop measures BEFORE the analysis, improvement and control phases Analyze Phase Examine the “as is” process map and the collected data to identify problems (e.g., decreasing efficiency or effectiveness) Find root causes Benchmark the process by comparing its performance with that of similar processes in other companies, or other areas of the organization Process simulation software Improve Phase Identify possible solutions for addressing the root causes Map the resulting “to be” process alternatives Select and implement the most appropriate solution Control Phase Monitor the improved process after the solution has been implemented to ensure the process performance remains stable Technology is no longer an afterthought in business strategy, but the cause and driver IT can change the way businesses compete A strategic information system is any information system (TPS, DSS, MIS, etc.) that uses IT to help an organization… Gain a competitive advantage Reduce a competitive disadvantage Meet other strategic enterprise objectives Strategic Information Architecture – the collection of strategic information systems that shape/support the competitive position/strategies of a firm Cirque Du Soleil has a unique temperature control system Disney, when building Disneyland Parks, relies on a complicated project management system Keeps track of 100,000 individual suppliers Part of their strategic information architecture Porter’s Competitive Forces Model Porter’s Value Chain Model Strategies for Competitive Advantage Business-Information Technology Alignment QUESTION WHICH WILL BE ON THE TEST: How many forces are in the Porter’s Forcers Model? 2. 3. 4. 5. Answer: d) 5. The Porter’s Five Forces model includes Industry Rivalry, Bargaining Power of Supplies, Threat of Substitutes, Threat of New Entrants, and Bargaining Power of Buyers. The Threat of Entry of New Competitors: The threat that new competitors will enter your market is high when entry is easy and low when there are significant barriers to entry. An entry barrier is a product or service feature that customers have learned to expect from organizations in a certain industry. An organization that seeks to enter the industry must offer this feature to survive in the marketplace. There are many types of entry barriers. Consider, for example, legal requirements such as admission to the bar to practise law or obtaining a licence to serve liquor, where only a certain number of licences are available. The Bargaining Power of Suppliers: Supplier power is high when buyers have few choices about whom to buy from and low when buyers have many choices. Therefore, organizations would rather have more potential suppliers so that they will be in a stronger position to negotiate price, quality, and delivery terms.The internet’s impact on suppliers is mixed. On the one hand, it enables buyers to find alternative suppliers and to compare prices more easily, thereby reducing the supplier’s bargaining power. On the other hand, as companies use the internet to integrate their supply chains, participating suppliers prosper by locking in customers. The Bargaining Power of Customers (Buyers): Buyer power is high when buyers have many choices about whom to buy from and low when buyers have few choices. For example, in the past, there were few locations where students could purchase textbooks (typically, one or two campus bookstores). In this situation, students had low buyer power. Today, the Web provides students with access to a multitude of potential suppliers as well as detailed information about textbooks. As a result, student buyer power has increased dramatically. The Threat of Substitute Products or Services: If there are many alternatives to an organization’s products or services, then the threat of substitutes is high. Conversely, if there are few alternatives, then the threat is low. Today, new technologies create substitute products very rapidly. For example, customers can purchase wireless telephones instead of land line telephones, internet music services instead of traditional CDs, and ethanol instead of gasoline for their cars. The Rivalry Among Existing Firms in the Industry: The threat from rivalry is high when there is intense competition among many firms in an industry. The threat is low when the competition involves fewer firms and is not as intense. Two basic competitive approaches or business-level strategies Cost Leadership To outperform competitors by producing goods or delivering services at the lowest possible cost Differentiation The differentiated product has the ability to satisfy a customer’s need in a way that competitors cannot The four major types of distinctive competencies or functional-level strategies superiority in efficiency, quality, innovation, and responsiveness to customers the functional-level strategy must support the business-level strategy E.g., Walmart low-cost (business-level strategy) efficiency and innovation of the supply chain, returns processing, and inventory turnover, but not service quality (functional-level strategy) Business-IT Alignment The tight integration of the IT function with the organization’s strategy, mission, and goals of the organization. The IT function directly supports the business objectives of the organization. E.g., when launching a human resource management system, what should be its main focus for Walmart vs. Nordstrom? Sample Test Question? Based on Porter’s 5 Forces model, public accountants in North America have become increasingly threatened by which one of the following forces? Intra-industry competition. Bargaining power of suppliers. Threat of new entrants Threat of substitutes. Both A and C. Answer: d) Threat of substitutes. Chapter 5: Data and Knowledge Management Knowledge Management 1ST STORY: G.W Bush U.S president Gives NASA a lot of money, and wants a guy in the moon in 3 months NASA has done it before People who worked on the project retired NASA forgot how NASA said it will take 10 years to re-learn everything He makes NASA take apart the previous lunar ship, and lets them figure it out but they still cant do it in 3 months 2ND STORY: Canadian Railway station Guy joins young (15 years old), and becomes a senior member The guy stops talking and realizes his value He retires, and the company is lost and the guy becomes a independent consultant who asks for triple the rate when the company goes back to him 3rd STORY: Canada government (SharePoint video watch) Lady works for federal government Leads the E-commerce team to create a portal to put all job offers the ministry on the portal online Cluster: to put all services online by the ministry Knowledge duplication, because 3 different areas are doing the same thing 4th STORY: Course scheduling system IT guy who worked with the software and does nothing else Creates a schedule and gives it to them Everyone forgets about the guy The CIO fires him and nobody cares for a while, but then they have to re-create the schedule They end up flying consultants from Toronto that cost 500 an hour, and lose a lot of students He had critical knowledge They should have brought in 2 more employees so that others knew about the system to create a schedule 5th STORY: Professor working for a company A piece of software on its own is worthless to a company Everyone is smart but they don’t talk to each other They are promoting free training to learn the system People don't share knowledge face-to-face Create atmosphere where people share knowledge Managing data Databases- Companies accumulate lots of data. So, all data resources should be structured in some logical manner. The Difficulties of Managing Data- • Data increases exponentially with time • Data silo • Multiple sources of data • New sources of data • Data become less current over time • Data security, quality, and integrity • Government regulations • structured data • Big data Master Data Management Video -The video script explains the complexity of managing data in large organizations, with constant changes and discrepancies in the data. It introduces the concept of Master Data Management (MDM) as a solution to synchronize critical data and ensure its quality. It emphasizes the need for business ownership and processes to support MDM solutions, and highlights the role of technology and executive sponsorship in its success. The database approach Master data vs. transactional data Master data •A set of core data – customer, product, employee,vendor •Are referred to in different transactions •Generally, do not change and do not need to be created with every transaction Transactional data •Describe the business activities (i.e., transactions) •Are generated during routine business processes E.g., when a product is sold Databases minimize two main problems Data redundancy •The same data are stored in multiple locations. E.g., customer address of the same person is stored in two separate tables. Data inconsistency •Various copies of the data do not agree. E.g., two different versions of customer address are stored in two separate tables (i.e., customer addresses in different tables do not agree). Databases Maximize three main factors Data security •Well organized databases have extremely high security measures to minimize mistakes and deter attacks. Data integrity •Data meet certain constraints; e.g., no alphabetic characters in a Social Insurance Number field. Data independence •Applications and data are independent of one another. •Applications are able to access the data •Applications do not ‘own’ the data Big data pg 20-27 BIG DATA •Data so large and complex it cannot be managed by traditional systems •When properly analyzed, big data can reveal valuable patterns and information Sources of Big Data •Traditional enterprise data ERP and CRM •Machine-generated/sensor data Smart meters, system logs, trading systems, IoT •Social Data FB, LinkedIn, X, WeChat, Instagram •Images captured by billions of devices located around the world Digital cameras, camera phones, medical scanners, and security cameras Characteristics of Big Data •Volume •incredible volume of data. •Velocity •The rate at which data flow into an organization is rapidly increasing and it is critical because it increases the speed of the feedback loop between a company and its customers. •Variety •Big Data formats change rapidly and can include satellite imagery, broadcast audio streams, digital music files, Web page content. •Despite its value Big Data, has issues •Big Data can come from untrusted sources •Big Data is dirty •Dirty data refers to inaccurate, incomplete, incorrect, duplicate, or erroneous data. •Big Data changes, especially in data streams •Organizations must be aware that data quality in an analysis can change, or the data itself can change, because the conditions under which the data are captured can change. Using Big Data •Enabling Organizations to Conduct Experiments •Big Data allows organizations to improve performance by conducting controlled experiments •E.g., modifying a webpage and observing changes in user behavior – A/B experiments •Micro-segmenting Customers •Dividing customers into groups that share one or more characteristics, down to a person •Creating New Business Models •HR Data Warehouse •Stores static data that has been extracted from other databases in an organization •Central source of data that has been cleaned, transformed, and cataloged •Data is used for data mining, analytical processing, analysis, research, and decision support •Data warehouses may be divided into data marts •Subsets of data that focus on specific aspects of a company (department or business process) •A repository of historical data that are organized by subject to support decision makers in the organization Data Mart •A low-cost, scaled-down version of a data warehouse designed for end-user needs in a strategic business unit (SBU) or individual department Data Lakes •A central repository that stores all data of an organization regardless of source and structure •No data transformation process •No uniform structure •No data model •Apache Hadoop (open-source) Chapter 14 (Self-Study): Artificial Intelligence AI is a subfield of computer science that studies the thought processes of humans and recreates the effects of those processes through information systems. It is the theory and development of information systems that are capable of performing tasks that normally require human intelligence. Ultimate goal of AI = to build machines that mimic human intelligence. The Turing test by Alan Turing, proposes a scenario in which a human being and a computer both pretend to be human, and a human interviewer has to identify which is the real person. Strong AI - also known as artificial general intelligence - is hypothetical AI that matches or exceeds human intelligence. Weak AI - also called narrow AI - performs a useful and specific function that once required human intelligence to perform, and it does so at human levels or better. Data poisoning = an attack that tries to manipulate a machine learning system’s training data set to control the predictive behaviour of a trained model such that the model will label malicious examples as belonging to a desired class (e.g., labelling spam emails as safe). Intelligent behaviour includes: Learning or understanding from experience, making sense of ambiguous or contradictory messages, and responding quickly and successfully to new situations. Machine Learning (ML) - is an application of artificial intelligence that provides systems with the ability to automatically learn and improve from experience without being explicitly programmed. In supervised machine learning, the accuracy of the system is evaluated by comparing the output to the expected results. Expert systems (ESs) are computer systems that attempt to mimic human experts by applying expertise in a specific domain. The knowledge of expert systems are typically stored in the form of IF-THEN rules. The approach a developer takes to solve a problem reveals the developer’s bias. Different types of machine learning: Supervised, Semi-supervised, Unsupervised, Reinforcement, and Deep. Supervised Learning - A type of machine learning in which the system is given labelled input data and the expected output results. The purpose of using linear regression in supervised machine learning is to predict continuous variables. Semi-Supervised Learning - A type of machine learning that combines a small amount of labelled data with a large amount of unlabelled data during training. It is inefficient to have a human read through entire text documents to classify and label them, because its time-consuming and impractical with large volumes of data. Unsupervised Learning - A type of machine learning that searches for previously undetected patterns in a data set with no pre-existing labels and with minimal human supervision. Cluster analysis, a primary technique in unsupervised learning, is primarily used for: Grouping data points to identify common characteristics. Reinforcement Learning - Type of machine learning in which the system learns to achieve a goal in an uncertain, potentially complex environment. In reinforcement learning, the system begins with totally random trials and ends with the following: Sophisticated tactics. Deep Learning - Subset of machine learning in which artificial neural networks learn from large amounts of data. Deep learning systems can be effective even when utilizing a diverse and unstructured data set. Neural Network (NN) - Set of virtual neurons, or nodes, that work in parallel to simulate the way the human brain works, although in a greatly simplified form. Node = has one or more weighted input connections, a bias, an activation function, and one or more output connections. A loss function in a neural network calculates the difference between the derived data value and the expected value. Recurrent Neural Networks (RNNs) - Designed to access previous data such as sequential data or time series data during iterations of input. Convolutional Neural Networks (CNNs) - Designed to separate areas of image inputs by extracting features to identify edges, curves, and colour density and then recombine these inputs for classification and prediction. Generative Adversarial Networks (GANs) - Consists of two neural networks that compete with each other in a zero-sum game in an effort to segregate real data from synthetic data. Computer vision refers to the ability of information systems to identify objects, scenes, and activities in images. The implementation of computer vision at Amazon’s fulfillment centres contribute to the company by providing large cost savings. Natural Language Processing - Refers to the ability of information systems to work with text the way that humans do. One of the practical applications of natural language processing is automating the writing of formulaic stories on topics such as corporate earnings and sports. In Amazon Robotics, a human does the actual order fulfillment. Speech Recognition - Focuses on automatically and accurately transcribing human speech. A homophone is a word that sounds the same as another but has a different meaning. Chatbot - Computer program that uses artificial intelligence and natural language processing to simulate human conversation, either by voice or text communication. In a customer service and support context, chatbots interacts with customers for routine problems, directing them to human agents when necessary. Deloitte developed Argus, which uses machine learning to review documents for key accounting information. Two objectives banks aim to achieve by introducing machine learning into their fraud detection systems, are: to detect real incidents of fraud and prevent false positives. Machine Learning systems analyze data to implement and improve dynamic pricing models, which helps businesses in their dynamic pricing strategies. Sydney Coordinated Adaptive Traffic System (SCATS) - Optimizes traffic signals in real time, which is the primary function that they serve. Digital Twin refers to a virtual, digital model of a player or machine created from real-time and historical data, in the context of the partnership between the NFL and Amazon Web Services (AWS). In software development, machine learning algorithms document the legacy code. In complex machine learning, weights and biases adjust thousands of times to accommodate new data inputs. The shifting of weights and biases in the neural network is a process that occurs over thousands of input values and iterations. Wiley Practice Questions Chapter 1: Introduction to IS What factors contribute to the difficulty in managing information systems? The strategic value and reliance on information systems by organizations. The high cost of acquiring, operating, and maintaining information systems. The partnership between the MIS department and end users. The division of responsibility for information resources. All of the answers are correct. Answer: e. All of the answers are correct. 2. Which of the following is an IT job within an organization? Program manager. Systems analyst. Network-manager. All of the answers are correct. Answer: d. All of the answers are correct. 3. What is the role of end users in managing information resources? To provide critical input into systems development and infrastructure planning. To be primarily responsible for specific strategic information systems. To effectively use the Internet and electronic commerce in business. To advise the MIS department on the most effective use of IT. All of the answers are correct. Answer: e. All of the answers are correct. 4. Why is it important to learn about information systems and information technology? To become an informed user and obtain greater value from IT applications. To enhance your organization’s IT applications with your input. To stay updated on new technologies and their impacts on your organization. To understand how IT can improve your organization’s performance and teamwork. All of the answers are correct. Answer: e. All of the answers are correct. 5. What is the third reason to learn about information systems and information technology? To contribute immediately to managing the IS function in your organization. To become the chief information officer (CIO) of your organization. To secure employment in areas such as network security and telecommunications. To understand the role of the MIS department in the organization. All of the answers are correct. Answer: a. To contribute immediately to managing the IS function in your organization. 6. Which resources are typically managed by the MIS department? Corporate-level and shared resources. Departmental resources. Systems development and infrastructure planning. Initiating and designing specific strategic information systems. All of the answers are correct Answer: a. Corporate-level and shared resources. 7. In which industry did software disrupt the market-leading companies? Book Industry. Music Industry. Video Industry. All of the answers are correct. None of the answers is correct. Answer: d. All of the answers are correct. 8. Which industry was disrupted by Netflix, leading to the bankruptcy of Blockbuster? Book Industry. Music Industry. Video Industry. Software Industry. None of the answers is correct. Answer: c. Video Industry. 9. Which industry requires state-of-the-art information technologies, including massive numbers of servers and sophisticated software? Book Industry. Music Industry. Video Industry. Photography Industry. Motion Picture Industry. Answer: e. Motion Picture Industry. 10. What is a key advantage of cobots compared to industrial robots? Lower cost. Heavy manufacturing capabilities. Easier reprogramming. Need for safety cages. Autonomous functionality. Answer: c. Easier reprogramming. 11. How has IT improved healthcare delivery? Faster diagnoses. Monitoring critically ill patients. Streamlined drug research and development. All of the answers are correct. None of the answers is correct. Answer: d. All of the answers are correct. 12. Which of the following is NOT a primary capability of IBM Watson? Understanding human language. Learning and absorbing information. Formulating hypotheses. Understanding the context of a question. Performing complex surgeries. Answer: e. Performing complex surgeries. Technology Guide 1: Hardware Which of the following factors does NOT usually affect decisions about hardware? Power. Appropriateness for the task. Size. Cost. Answer: c. Size. 2. Which of the following is NOT a component of hardware? Primary and secondary storage. The operating system. Input and output technologies. The central processing unit. Answer: b. The operating system. 3. _________ manipulates the data and controls the tasks performed by other components. CPU. Primary storage. Output technologies. Secondary storage. Answer: a. CPU. 4. Which of the following is NOT a strategic hardware issue? Price and performance. Personal and organizational productivity. BYOD. Need for the latest and greatest applications. Answer: d. Need for the latest and greatest applications. 5. How does Device-as-a-Service (DaaS) contribute to organizations’ flexibility? By increasing the number of devices in use. By allowing businesses to ignore hardware advancements. By enabling organizations to outsource hardware purchase and maintenance. By preventing employees from using their own devices. Answer: c. By enabling organizations to outsource hardware purchase and maintenance. 6. To model the weather or simulate nuclear weapons testing, you would most likely use a(n): Mainframe computer. Workstation. Supercomputer. Personal computer. Answer: c. Supercomputer. 7. A ____ refers to the fastest computing engine available at any given time. Supercomputer. Mainframe. Midrange computer. Microcomputer. Answer: a. Supercomputer. 8. A ______ is an example of a computer system that is designed to accommodate multiple users simultaneously. Microcomputer. Mainframe. Laptop. Wearable computer. Answer: b. Mainframe. 9. Which of the following is an example of an output technology? Joystick. Keyboard. Printer. RFID scanner. Answer: c. Printer. 10. Which of the following is an example of an input technology? Monitor. Mouse. Printer. Plotter. Answer: b. Mouse. 11. Which of the following is an example of source-data automation? Keyboard. Mouse. Barcode reader. Voice recognition. Answer: c. Barcode reader. 12. Which of the following is NOT a component of the central processing unit? Registers. Control unit. Secondary storage. Keyboard. Answer: d. Keyboard. 13. Which of the following does NOT affect the speed of the machine instruction cycle? Clock speed. Word length. Bus width. Line width. Answer: d. Line width. 14. Moore’s Law predicted that microprocessor complexity would: Double every year. Double every two years. Increase slowly. Decrease slowly. Answer: b. Double every two years. Technology Guide 2: Software Over the past 20 years, hardware costs have ___ and software costs have ___. Increased, Increased. Decreased, Decreased. Decreased, Increased. Increased, Decreased. Answer: b. Decreased, Decreased. 2. Which of the following is NOT a reason why software currently comprises a larger percentage of the cost of modern computer systems than it did in the early 1950s? Hardware costs have increased. Hardware performance has improved. Software has become increasingly complex. Building software applications remains slow, complex, and error-prone. Answer: a. Hardware costs have increased. 3. Which of the following is NOT an overall trend in software? Increased complexity. Increased cost. Increased number of errors. Increased amount of mainframe software written by users. Answer: d. Increased amount of mainframe software written by users. 4. The set of computer programs used to manage hardware resources is called: Microsoft 365. Application software. General software. Systems software. Answer: d. Systems software. 5. Which of the following is NOT a function of the operating system? It allocates CPU time and main memory to programs running on the computer. It provides an interface between the user and the hardware. It supervises the overall operation of the computer. It increases the complexity of the system for the user. Answer: d. It increases the complexity of the system for the user. 6. The main system control program is the ___. Operating system. Cache software. Virtual memory. Security monitor. Answer: a. Operating system. 7. Microsoft Word is an example of a(n) ______. Application software program. GUI. Operating system program. Social interface. Answer: a. Application software program. 8. Creating specific application software using an organization’s own resources is called _____. Outsourcing. Consultant-based development. In-house development. Contract software. Answer: c. In-house development. 9. ____ programs are often used to analyze financial data. Database. Word processing. Spreadsheet. Graphics. Answer: c. Spreadsheet. Chapter 2: Organizational Strategy, Competitive Advantage, and Information Systems What does a cross-functional business process refer to in an organization? A process that is the sole responsibility of one department. A process that is carried out without any collaboration. A process that cuts across multiple functional areas. A process that is solely related to procurement and fulfillment. A process that has nothing to do with the overall business strategy. Answer: c. A process that cuts across multiple functional areas. 2. How does an information system aid in executing the process in an organization? By directly making decisions for the organization. By informing people when it is time to complete a task, providing necessary data, and in some cases, means to complete the task. By replacing human intervention entirely. By taking over all managerial roles. None of the answers is correct. Answer: b. By informing people when it is time to complete a task, providing necessary data, and in some cases, means to complete the task. 3. What role can RPA play in the customer service of a company? RPA bots can perform background checks on customers. RPA bots can examine queries and route them to the correct customer care agent. RPA bots can replace all human customer service representatives. RPA bots can negotiate pricing with customers. RPA bots can analyze customer purchasing behaviour and provide targeted ads. Answer: b. RPA bots can examine queries and route them to the correct customer care agent. 4. Business Process Management (BPM) can best be described as: A top-down mandate for change. A less risky and less costly alternative to BPR. A management system to support the design, analysis, and continuous optimization of core business processes. A strategy for a radical redesign of business processes An approach focused primarily on reducing variation in process outputs. Answer: c. A management system to support the design, analysis, and continuous optimization of core business processes. 5. Which of the following is NOT a benefit of utilizing process simulation software during the analysis phase of Business Process Improvement (BPI)? It allows managers to simulate multiple scenarios. It provides a risk-free way to test improvement solutions. It significantly reduces the operational costs. It helps identify bottlenecks in the process. It gives a process manager an estimate of the process performance over time. Answer: c. It significantly reduces the operational costs. 6. The goals of business process reengineering are to (check all that apply): Reduce waste. Increase customer satisfaction. Increase cycle time. Increase productivity. Optimize operations. Answer: a. Reduce waste., b. Increase customer satisfaction., d. Increase productivity., and e. Optimize operations. 7. What does the acronym BYOD stand for? Bring Your Own Device. Buy Your Own Device. Bring Your Office Device. Business Your Own Device. Backup Your Own