Information Systems Exam Summary PDF

Information Systems Exam Summary 1. Introduction to Information Systems Definition: Information Systems (IS) are formal, socio-technical organizational systems designed to collect, process, store, and distribute information. Key Components: Technology: Hardware, software, networks, data....

Information Systems Exam Summary 1. Introduction to Information Systems Definition: Information Systems (IS) are formal, socio-technical organizational systems designed to collect, process, store, and distribute information. Key Components: Technology: Hardware, software, networks, data. People: Users, IT professionals. Processes: Procedures and rules. Functions: Support business operations. Aid managerial decision-making. Enable competitive advantage. Types of Information Systems: TPS (Transaction Processing Systems): Handle daily routine transactions. MIS (Management Information Systems): Summarize TPS data for middle management. DSS (Decision Support Systems): Support complex decision making. ESS (Executive Support Systems): Provide dashboards and KPIs to senior executives. ERP (Enterprise Resource Planning): Integrate core business processes. CRM (Customer Relationship Management): Manage customer data and interaction. SCM (Supply Chain Management): Oversee supply chain and logistics. Example: Amazon uses TPS for orders, MIS for stock reports, DSS for product placement strategies, and ESS for executive KPIs. 2. Strategic Role of IS Porter's Five Forces: Threat of new entrants Bargaining power of buyers/suppliers Threat of substitutes Competitive rivalry Value Chain Analysis: IS supports both primary (e.g. operations, marketing) and support activities (HR, infrastructure). Strategic Alignment: IT must align with business strategy (e.g., low cost, differentiation). Example: Netflix's IT-enabled model shifted media delivery from physical to streaming, undercutting Blockbuster. 3. Business Process Modelling & Improvement Definition: The graphical representation of workflows and processes. Tools: BPMN (Business Process Model and Notation) UML (Unified Modeling Language) activity diagrams Functional decomposition for detailed task breakdown Business Process Reengineering (BPR): Radical redesign to improve efficiency. Continuous Improvement: Incremental process enhancement. Example: Amazon’s automated warehouse systems reduce lead time and errors. 4. Systems Development Life Cycle (SDLC) Phases: 1. Planning: Define goals, feasibility. 2. Analysis: Gather and interpret requirements. 3. Design: System architecture and interfaces. 4. Implementation: Programming and testing. 5. Maintenance: Updates and fixes. Pros: Structured, thorough. Cons: Inflexible to change. Alternative: Agile Methods Iterative, collaborative, adaptive. Prototyping: Early, testable model to refine requirements. 5. Agile and Scrum Methodologies Agile Values: Individuals over processes Working software over documentation Customer collaboration over contracts Response to change Scrum Roles: Product Owner: Manages backlog. Scrum Master: Facilitates process. Team: Cross-functional developers. Ceremonies: Sprint Planning, Daily Stand-ups, Sprint Reviews, Retrospectives. Artifacts: Product backlog, sprint backlog, burndown chart. Use Case: Startups use Scrum to release MVPs quickly and iteratively. 6. IS Project Management Triple Constraint: Time, Cost, Scope (sometimes Quality). Common Challenges: Scope creep, unclear requirements, poor communication. Inadequate risk planning or change control. Tools and Techniques: Gantt charts, PERT diagrams, RAID logs (Risks, Assumptions, Issues, Dependencies). Phases: Initiation, planning, execution, monitoring, closure. Best Practices: Engage stakeholders early. Use agile methods for flexibility. Monitor KPIs and adjust plans accordingly. 7. Change Management in IS Why It Matters: Even the best systems fail if users resist them. Lewin’s Change Model:  1. Unfreeze: Prepare the organization. 2. Change: Implement the change. 3. Refreeze: Reinforce and stabilize. Kotter’s 8-Step Change Model: 1. Create urgency 2. Form a coalition 3. Develop vision 4. Communicate vision 5. Empower action 6. Generate short-term wins 7. Consolidate gains 8. Anchor changes Strategies: Communication, training, support, and involvement. 8. IS Governance & Frameworks Purpose: Ensure IT investments support business goals, manage risks. Frameworks: COBIT (Control Objectives for Information and Related Technologies) o Governance focus o Provides maturity models, KPIs, control objectives ITIL (Information Technology Infrastructure Library) o Service management framework o Focuses on service lifecycle: strategy, design, transition, operation, improvement Key Concepts: Governance vs. Management IT-business alignment Accountability and performance measurement 9. Enterprise Architecture (EA) Definition: A comprehensive framework used to manage and align an organization's IT assets, people, operations, and projects with business goals. Models: TOGAF: Architecture Development Method (ADM) Zachman Framework: Matrix of perspectives (Planner to Subcontractor) Layers: 1. Business architecture: Strategy, governance 2. Information architecture: Data models 3. Application architecture: Software systems 4. Technology architecture: Hardware/network Benefits: Clarity, alignment, efficiency, adaptability. 10. Information Security in IS CIA Triad: Confidentiality: Prevent unauthorized access. Integrity: Ensure data accuracy. Availability: Ensure reliable access. Common Threats: Malware, phishing, DoS attacks, insider threats. Controls: Preventive: Firewalls, authentication Detective: Intrusion detection systems Corrective: Backups, disaster recovery Security Policies: Passwords, acceptable use, remote access, incident response. Regulations: GDPR, HIPAA, PCI DSS. 11. Cloud Computing & Virtualization Models: IaaS (Infrastructure as a Service): Virtual machines, storage (e.g., AWS EC2). PaaS (Platform as a Service): App hosting platforms (e.g., Google App Engine). SaaS (Software as a Service): End-user applications (e.g., Google Workspace). Benefits: Scalability, cost savings, flexibility, accessibility. Risks: Vendor lock-in, downtime, data security. Virtualization: Use of software (hypervisors) to run multiple OS instances on a single physical machine. Enables better resource utilization and cloud environments. 12. Big Data & Analytics 5 Vs of Big Data: 1. Volume: Large amounts of data. 2. Velocity: Speed of data generation. 3. Variety: Different data types (text, images, video). 4. Veracity: Data quality and accuracy. 5. Value: Business insights and decision-making. Tools: Hadoop, Spark, NoSQL databases. Applications: Personalized marketing  Fraud detection Predictive maintenance Challenges: Data governance, privacy, integration. 13. Artificial Intelligence & Automation AI Technologies: Machine Learning (ML): Supervised, unsupervised, reinforcement learning. Natural Language Processing (NLP): Chatbots, sentiment analysis. Robotic Process Automation (RPA): Automates rule-based tasks. Applications: Healthcare: Diagnostics Finance: Risk analysis Retail: Recommendation engines HR: Automated recruitment and screening Ethical Issues: Bias, transparency, job displacement. 14. E-Business & E-Commerce Models: B2B, B2C, C2C, C2B Key Features: Electronic payment systems (PayPal, Apple Pay) Shopping carts, digital logistics Customer self-service portals Benefits: 24/7 access, global reach, lower costs Challenges: Trust, cybersecurity, last-mile delivery Example: Amazon uses data analytics to personalize offers and streamline inventory. 15. Ethics, Privacy & Legal Issues in IS Privacy Concerns: Data collection, consent, surveillance. Ethical Frameworks: Utilitarianism: Greatest good for most. Deontology: Duty-based ethics. Key Legislation: GDPR (Europe) CCPA (California) Issues: Algorithmic bias, misinformation, digital divide. Best Practices: Transparency, accountability, user control. 16. IS Evaluation & Business Case Evaluation Techniques:  Cost-benefit analysis NPV (Net Present Value) ROI (Return on Investment) Critical Success Factors (CSFs): Must be achieved for project to succeed. Key Performance Indicators (KPIs): Metrics to measure performance (e.g., uptime, transaction speed) Risks: Poor measurement = gaming behavior Feasibility Study: Technical, economic, operational, legal viability. 17. Global Information Systems Challenges: Language barriers Cultural differences Legal/regulatory compliance Benefits: 24/7 operation, global market access Considerations: Data sovereignty laws Infrastructure availability Coordination across time zones Example: Multinational firms using cloud-based ERP for integrated operations. 18. Future Trends in IS Emerging Technologies: Quantum computing Brain-computer interfaces Augmented and virtual reality (AR/VR) Smart Environments: Smart homes, smart cities Wearable Tech: Smartwatches, health monitors Autonomous Systems: Self-driving cars, drones Trend: Decreasing adoption time = increased need for agility. 19. Social and Cultural Dimensions of IS Impacts: Blurring work-life boundaries Social media’s role in news and influence Rise of the gig economy Issues: Media bubbles, misinformation Cyberbullying, digital addiction Loss of privacy Opportunities:  Connectivity, education access Empowerment via mobile technology 20. Managing IS Infrastructure ITIL Framework (Lifecycle stages): 1. Service Strategy 2. Service Design 3. Service Transition 4. Service Operation 5. Continual Service Improvement COBIT for Governance: Ensures business value, manages risk Infrastructure Management Areas: Networks, servers, storage, security Monitoring and maintenance Trends: Shift to cloud-first strategies Use of automation in operations 📘 ECM2431 Information Systems – Exam Prep Sheet 📌 1. Introduction to Information Systems (IS) Purpose of IS: Support operations, management, and decision-making. IS Components: o Hardware o Software  o Data o People o Processes/Procedures Infrastructure: Combination of technology, people, and processes enabling IS. Enterprise Architecture (EA): o Aligns IT strategy with business strategy. o Includes components like business, application, data, and technology architecture. TOGAF: o Framework for EA development. o Uses ADM (Architecture Development Method). o Criticism: Too abstract, inflexible, heavy documentation. Service-Oriented Architecture (SOA): o Modular approach with reusable services. o Promotes flexibility, interoperability. 📌 2. Types of Information Systems Type Function Example TPS (Transaction Processing Handle daily business transactions POS systems System) MIS (Management Information Summarize and report on TPS data Sales reports System) DSS (Decision Support System) Support complex decision-making Forecasting tools ESS (Executive Support System) Provide strategic-level info Dashboards ERP (Enterprise Resource Planning) Integrate core business processes SAP, Oracle Manage supply chain and customer Salesforce, SAP SCM, CRM relations SCM 📌 3. Business & IS Alignment Aligning IT with business ensures: o Efficient resource use o Competitive advantage  o Goal achievement Requires communication between IT and business units, shared goals, and governance. 📌 4. IS Acquisition Steps: o Define needs o Analyse existing business domain o Explore options: custom, off-the-shelf, outsourcing, cloud o Evaluate costs/benefits (ROI, TCO, value realisation) Business Case Elements: o Problem/opportunity o Proposed solution o Cost-benefit analysis o Risks Evaluation: o Technical feasibility o Organisational fit o Strategic alignment 📌 5. IT Infrastructure & Deployment Options Model Description Use Case IaaS Infrastructure as a Service (e.g. AWS EC2) Virtual machines, storage Platform as a Service (e.g. Google App App development PaaS Engine) platform Software as a Service (e.g. Gmail, SaaS Ready-to-use apps Salesforce) Enterprise Application Integration (EAI): Combines data/functionality across systems. o Techniques: Middleware, APIs, Web Services. 📌 6. IS Management & Governance ITIL (IT Infrastructure Library): Best practices for IT service management. COBIT: Framework for governance/control of enterprise IT. Key Goals: o Efficiency o Risk reduction o Compliance o Strategic value 📌 7. Data, Business Intelligence & Analytics Data Lifecycle: Collection → Storage → Management → Analysis Data Tools: o Data Warehouses: Centralised storage for analytics. o BI Tools: Dashboards, reporting, data mining. Types: o Descriptive: What happened? o Predictive: What could happen? o Prescriptive: What should we do? Role: o Supports strategic decisions o Informs operational improvements 📌 8. Emerging Technologies Machine Learning (ML): Automates pattern recognition and predictions. Artificial Intelligence (AI): Enables machines to mimic human reasoning. Blockchain: Distributed, immutable ledger; used in supply chains, finance. 📌 9. New IT-Enabled Commerce Forms E-commerce platforms (B2B, B2C) Mobile commerce Platform economy (e.g. Uber, Airbnb) Cloud marketplaces 🧠 Scenario-Based Answer Tips When responding to case-based questions: Understand the Business Context Identify IS Needs Recommend IS Type & Acquisition Method Justify Choice (Strategic fit, cost, scalability) Highlight Benefits: o Efficiency o Integration o Data insights o Strategic agility 🧾 10. Answering Scenario-Based Questions – Strategy & Tips ✅ 1. Recommending Information Systems & Acquisition Methods Step-by-step guide: 1. Understand the business context: a. What industry? Size? Objectives? Problems? b. Use PESTLE, SWOT, and Business Process Analysis. 2. Identify key IS needs: a. Operational (TPS, ERP)? b. Tactical (MIS, CRM)? c. Strategic (BI, DSS)?  3. Select IS types that align with those needs. 4. Justify the acquisition approach: a. Bespoke: Custom-built; high fit, expensive, long time. b. Off-the-shelf: Quick, cheaper, limited customisation. c. Cloud-based (SaaS/PaaS/IaaS): Scalable, low upfront cost. d. Outsourcing: Use third-party services (low control, cost-saving). Key Justification Terms: Return on Investment (ROI) Net Present Value (NPV) Total Cost of Ownership (TCO) Flexibility, Scalability, Time to Market ✅ 2. Explaining How IS Supports Business Strategy Link IS directly to strategic goals: Cost leadership: Automation via ERP, supply chain systems. Differentiation: Customer experience through CRM, data analytics. Innovation: AI/ML for R&D, smart product development. Growth: Scalable systems, cloud infrastructure, internationalisation. Agility: Modular SOA, microservices, cloud-native systems. Example: A retail company aims to improve customer loyalty and retention. You recommend a CRM system integrated with BI tools. The CRM supports loyalty programs and targeted marketing, while BI provides insights into customer behaviour. ✅ 3. Explaining Infrastructure or Acquisition Strategy Benefits Cloud Computing Benefits: SaaS: Rapid deployment, low maintenance, subscription model. PaaS: Fast development, no infrastructure concerns.  IaaS: Full control of virtual infrastructure, scalability. When to recommend cloud: Small to mid-sized firms Rapid growth/startups Limited in-house IT resources Bespoke vs Off-the-Shelf: Strategy Benefits Best for Custom fit, competitive Bespoke Unique processes edge Off-the-Shelf Faster, lower cost, reliable Standard processes Core + commodity Hybrid Combines both needs 💬 Final Tips Use business terms: "aligns with KPIs", "enables digital transformation", "supports critical success factors". Justify with measurable benefits. Refer to frameworks (ITIL, COBIT) when governance or management is mentioned. Tailor IS recommendation to the organisation’s pain points and strategic vision.