BA 180.1 Midterms Reviewer PDF

BA 180.1 INFORMATION TECH IN BUSINESS UNIVERSITY OF THE PHILIPPINES - NATIONAL COLLEGE OF PUBLIC ADMINISTRATION TERM 1 | A.Y. 2024-2025 | Professor: Gian Philip Antolin ○ Successful tec...

BA 180.1 INFORMATION TECH IN BUSINESS UNIVERSITY OF THE PHILIPPINES - NATIONAL COLLEGE OF PUBLIC ADMINISTRATION TERM 1 | A.Y. 2024-2025 | Professor: Gian Philip Antolin ○ Successful tech businesses utilize platform-based models OUTLINE for diverse transactions. A. IT Disrupts Business ○ Focus on time, convenience, B. Information Systems and personalized service. a. Cloud Technology ○ Importance of understanding C. Data Analytics & Business IT capabilities for profitability. Intelligence D. Networks and Collaborative Strategic Direction Technology Key Questions: E. Cybersecurity & Risk Management ○ What is our direction? in Operations (Industry, markets, customers) F. Search, Semantic, & ○ How do we generate revenues Recommendation Technology and profits? ○ How can we improve efficiency? L1: IT DISRUPTS BUSINESS Introduction to the impact of IT on business operations. Doing Business in the On-Demand Economy Definition: Economic activity driven by technology companies fulfilling consumer demand immediately. ○ Result of technological innovation and changing consumer behavior. ○ Companies rely on IT and data management systems. ○ Mobile technology connects consumers and service providers. ○ Internet enhances convenience Growth of the On-Demand Economy and speed for consumers. Aligns with consumer desires for convenience and speed. Impact of App-Driven Companies High interest in various on-demand Disruption: Companies like Uber, services (e.g., dog walking, laundry). Airbnb, and Grubhub have transformed Low cost of entry facilitates market traditional markets. participation. 1 OZAETA, Pia Margaret V. BA 180.1 | SEM 1 | A.Y. 2024-2025 Digital Business Models 6. Speed of IT Delivery Shift from traditional to digital 7. Business Strategic Planning business models. 8. Business Productivity & Efficiency ○ Digital models define revenue generation through technology. IT Business Objectives ○ Companies with digital models Adaptation: IT must respond to are better positioned for consumer demands. success. ○ Cost efficiencies and ○ Focus on customer experience, competitive advantage through profit, and employee IT innovations. engagement. 1. Product development. From innovations in microprocessors to Digital Business Models Overview efficient drug-delivery systems, IT Technological Impact: Location-aware helps businesses respond quickly to technologies reshape customer changing customer demands. interactions. 2. Stakeholder integration. Companies B2B Transactions: Enhanced efficiency use their investor relations websites to in supply chains. communicate with shareholders, research analysts, and others in the market. 3. Process improvement. An ERP system replaces dozens of legacy systems for finance, human resources, and other functional areas, to increase efficiency and cost-effectiveness of internal business processes. 4. Cost efficiencies. IT allows companies to reduce transaction and implementation costs, such as costs of duplication and postage of email versus snail mail. 5. Competitive advantage. Companies can use agile development, IT’s Role in the On-Demand Economy prototyping, and other systems Survey Insights: Companies prioritize methodologies to being a product to strategic IT for growth. market cost-effectively and quickly. ○ Top IT management priorities 6. Globalization. Companies can include alignment, security, outsource most of their noncore and innovation. functions, such as HR and finance, to ○ Importance of relationships offshore companies and use ICT to stay and talent development in IT. in contact with its global employees, customers, and suppliers 24/7. Top IT Management Priorities IT innovations can create opportunities 1. Technology Alignment with Business and threats. 2. Security, Cybersecurity & Privacy 3. Innovation Business Process Improvement 4. IT Agility & Flexibility Small improvements in processes can 5. Business Cost Reduction & Controls yield significant benefits. 2 OZAETA, Pia Margaret V. BA 180.1 | SEM 1 | A.Y. 2024-2025 What Is a Business Process? Gaining a Competitive Advantage Definition: Series of steps to IT is crucial for outperforming coordinate tasks and convert inputs competitors. into outputs. Continuous innovation is necessary to ○ Components: Inputs, activities, address new competition. deliverables. ○ Types: Formal (documented) IT Agility and Responsiveness and informal (undocumented). Agility: Ability to respond quickly to market changes. Improving Business Processes Flexibility: Quick integration of new Deliverables: Outputs produced to business functions. achieve objectives. Importance of effective process design Consumerization of IT to avoid customer dissatisfaction. Integration of mobile devices and social media into business. Importance of Efficient Business Processes Collaboration among non-competitive 100% of enterprise performance is businesses to educate consumers. attributed to processes. Maximizing input use for superior IT Innovation and Disruption performance is a critical success Creates new markets and requires factor. adaptation and innovation. Poorly designed processes waste resources and increase costs. Social–Mobile–Analytics–Cloud (SMAC) Model Revolutionizing Business Processes Definition: Integration of cloud, Companies must reinvent processes to mobile, and social channels reshaping meet customer expectations. business strategies. Emphasis on automation and ○ Provides 24/7 access to data-driven decision-making. services and data. Business Process Reengineering (BPR) SMAC Influence Definition: Radical change to eliminate Impact on advertising, consumer unnecessary processes. devices, and unique customer ○ Focus on automation and experiences. continuous improvement. IoT Growth Forecast: Increase in connected Phases of Business Process Reengineering devices, impacting mobile commerce 1. Develop Vision and Objectives and social media usage. 2. Understand Existing Processes 3. Identify New Business Process Technology Mega Trends 4. Identify Operational Change Levers Key Trends: 5. Implement New Process ○ Connectivity 6. Make New Process Operational ○ Big Data and Data Analytics 7. Evaluate New Process ○ Digitization 8. Perform Continuous Improvement ○ Machine-to-Machine Technology 3 OZAETA, Pia Margaret V. BA 180.1 | SEM 1 | A.Y. 2024-2025 Connectivity Use of digital platforms and cloud computing for operations. Companies use digital platforms including hardware, software, networks, embedded sensors, and cloud computing. Cloud service is any computing resource that is provided over the Internet on demand. ○ Cloud provides flexibility to acquire or expand connectivity and computing power for Lessons Learned from Disruptive operations, business Technologies transactions, and Companies leveraging technology communication. outperform peers. Key strategies include becoming Expanded Connectivity app-centric and maximizing IT Supports smart products and the investments. Internet of Things (IoT). ○ Internet of Things (IoT) refers L2: INFORMATION SYSTEMS to a set of capabilities enabled when physical things are Introduction connected to the Internet via Overview of Information Systems in sensors. business contexts. Big Data and Data Analytics Definition of Information Systems Definition: Large volumes of data System Definition: A group of analyzed for insights. interrelated components functioning Unstructured data presents challenges together to achieve a desired result. but also opportunities. Information Systems Definition: Interrelated components that collect, Digitization process, store, and disseminate Transforming activities into digital information to support formats for efficiency. decision-making, coordination, control, analysis, and visualization. Benefits of Digitization Major Components: Cost reduction and improved 1. Hardware turnaround times across industries. 2. Software 3. Network Communications Machine-to-Machine Technology 4. Data Real-time data sharing through 5. People embedded sensors. 6. Processes Improvement Opportunities from Embedded Information Technology (IT) vs. Information Sensors Systems (IS) Various industries can benefit from IT and IS are sometimes used sensor technology. interchangeably 4 OZAETA, Pia Margaret V. BA 180.1 | SEM 1 | A.Y. 2024-2025 Information Technology (IT): Types of Information Systems as Support to Combination of computer technology Operations and Management (hardware and software) with 1. Transaction Processing System (TPS): telecommunications technology (data Captures and processes data about and network communications). business transactions. Information Systems (IS): Includes IT 2. Management Information System components plus people and (MIS): Provides management-oriented processes that deliver value to reporting based on transaction organizations. processing. 3. Decision Support System (DSS): Integration of IT with People and Processes Helps senior managers identify decision-making opportunities. 4. Executive Information System (EIS): Supports planning and assessment needs of executive managers. Information Systems as Support to Operations and Management Characteristics of Information Systems TPS: Used by operations personnel; efficiency-oriented. MIS: Used by lower and middle Kinds of Information Systems managers; supports structured decisions. DSS: Used by senior managers; supports semi-structured decisions. EIS: Used by C-level managers; focuses on effectiveness and flexibility. 5 OZAETA, Pia Margaret V. BA 180.1 | SEM 1 | A.Y. 2024-2025 Information Systems as Support of ❖ External Users: Customers, suppliers, Knowledge Work partners, remote, and mobile users. Expert Systems: Capture and simulate Remote users - users who are expertise for non-experts. not physically located on the Communications and Collaboration premises but who still requires Systems: Enhance communication access to information systems. between workers and partners. Mobile users - users whose Office Automation Systems: Support location is constantly changing business office activities for improved but who requires access to workflow. information systems from any location Stakeholders: Players in Information Systems System Designers and Builders Stakeholders: Individuals with an System Designers: Technical interest in an information system, specialists who create technical including technical and non-technical solutions. workers. System Builders: Construct systems Information Workers: Create, collect, based on design specifications. process, and distribute information. Knowledge Workers: Specialized Systems Analysts information workers with specific Systems Analyst: Studies expertise. organizational needs to improve processes and technology. Perspectives on Information Systems ○ A programmer/analyst (or System Owners: View systems in analyst/programmer) includes terms of costs and benefits. the responsibilities of both the System Users: Define business computer programmer and the requirements and expectations. systems analyst. System Designers: Translate ○ A business analyst focuses on requirements into technical solutions. only the non-technical aspects System Builders: Construct and of systems analysis and maintain the information system. design. Other Stakeholders Benefits of Information Systems ○ External Service Provider Values to System Owners: Increased (ESP) – sells his or her profit, reduced costs, improved expertise and experience to customer relations, and better other businesses to help those compliance with regulations. businesses purchase, develop, or integrate their information System Users systems solutions System users – a “customer” who will ○ Project Manager – accepts use or is affected by an information responsibility for planning, system on a regular basis – capturing, monitoring, and controlling validating, entering, responding to, projects with respect to storing, and exchanging data and schedule, budget, deliverables, information. customer satisfaction, ❖ Internal Users: Clerical, technical, and technical standards, and managerial staff. system quality. 6 OZAETA, Pia Margaret V. BA 180.1 | SEM 1 | A.Y. 2024-2025 Computer Ethics Business-to-business Ten Commandments of Computer (B2B) Ethics: Guidelines for ethical computer ○ Impact on information use, including respect for others' work systems: Most new and privacy. information systems are being Business Drivers for Today’s Information designed for an Internet (or Systems intranet) architecture Electronic Commerce and Business Security and Privacy Globalization: Expands international Security: Protecting digital assets from markets and requires multi-language threats. support. Privacy: Consumer demands and E-Commerce: Buying/selling goods government regulations necessitate online; impacts information systems stringent controls. design. Impact on information systems: Need ○ Impact on information to incorporate stringent security and systems: Require support of privacy controls multiple languages, currency exchange rates, business Knowledge Asset Management cultures Data, Information, Knowledge, E-Business – the use of the Internet to Wisdom: Hierarchical understanding conduct and support day-to-day of business resources. business activities. 1. Data – describe products, customers, ○ Types of e-commerce and events, activities, and transactions e-business: that are facts that are of importance in Marketing of corporate an organization; image, products, and 2. Information – data that has been services processed or reorganized into a more Business-to-consumer meaningful form for someone. (B2C) 3. Knowledge – adds understanding, experience, accumulated learning, and 7 OZAETA, Pia Margaret V. BA 180.1 | SEM 1 | A.Y. 2024-2025 expertise as they apply to a current Continuous Improvement and Business problem or activity, to information; Process Redesign 4. Wisdom – is a collection of values, Business Processes – Tasks that ethics, moral codes, and prior respond to business events (e.g., an experiences that form an evaluated order). understanding or common-sense ○ Work, procedures, and rules judgment required to complete the Knowledge Asset Management: business tasks, independent of Integrating data and information for any information technology competitive advantage. Continuous Process Improvement (CPI): Ongoing monitoring for small improvements. Total quality improvement (TQM): comprehensive approach to facilitating quality improvements and management Business Process Redesign (BPR): Fundamental redesign for cost reduction and value improvement. ○ Impact on information systems: Need to decide whether to build a new system or buy a system Networks and the Internet Networks include mainframe time-sharing systems, network servers, and a variety of desktop, laptop, and handheldclient computers. The most pervasive networking technologies are based on the Internet. Object Technologies A software technology that defines a system in terms of objects that consolidate data and behavior (into objects). ○ Reusable, extensible ○ Object-oriented programming languages include C++, Java, Smalltalk, and.NET Object-oriented analysis and design – a collection of tools and techniques for systems development that will utilize object technologies Agile development – a system development strategy in which system developers are given the flexibility to 8 OZAETA, Pia Margaret V. BA 180.1 | SEM 1 | A.Y. 2024-2025 select from a variety of tools and techniques to best accomplish the tasks at hand. Collaborative technologies enhance communications and teamwork. Enterprise Applications 1. Enterprise Resource Planning (ERP): Integrates core business functions. 2. Supply Chain Management (SCM): Optimizes supply chain processes. 3. Customer Relationship Management (CRM): Manages customer relationships. Goals of System Owners and Users 4. Enterprise Application Integration Improve business knowledge, (EAI): Links applications for data flow. processes, and communication. Front- and Back-Office Systems Technology Perspectives Front-Office Systems: Support Focus on database, software, and customer-facing functions. interface technologies. ○ Marketing, sales, customer management Focuses for Information Systems Back-Office Systems: Support internal 1. Knowledge — the raw material used to operations and supplier interactions. create useful information. ○ Human resources, financial 2. Process — the activities (including management, manufacturing, management) that carry out the inventory control mission of the business. 3. Communication — how the system Information Systems Architecture interfaces with its users and other Architecture: Framework for information systems. organizing and viewing information systems. 9 OZAETA, Pia Margaret V. BA 180.1 | SEM 1 | A.Y. 2024-2025 Reasons for Information Deficiencies L2.1: CLOUD TECHNOLOGY 1. Data Silos Information Management and Data Information trapped in Governance departmental silos prevents Data as Core of Business consistent updates. ○ Quality of data is crucial for successful business initiatives. ○ Effective planning and decision-making depend on timely data availability. Information Management ○ Involves IT tools to collect, process, consolidate, store, and secure data. ○ Manages social and cloud accounts, calendars, contact lists, and documents. ○ Productivity relies on device compatibility and data sharing. Continuous IT Planning ○ A continuous plan is essential for guiding IT growth and 2. Lost or Bypassed Data future investments. Data can be lost in transit or inadequately captured. Information Management Harnesses 3. Poorly Designed Interfaces Scattered Data Difficult ISs increase the risk of Data Fragmentation errors. ○ Business information is 4. Non-standardized Data Formats scattered across over 100 data Inconsistent formats repositories. complicate analysis and ○ Limited integration leads to comparison. difficulties in accessing 5. Difficulty to Hit Moving Targets necessary information. Decision-makers' needs Data Governance and Enterprise change faster than ISs can Architecture adapt. ○ A robust data governance Result: Patchwork Systems program and well-planned EA Fast growth or mergers lead to are essential. complicated reporting ○ Organizations must manage processes. semi-structured and unstructured content. Factors Driving the Shift from Silos to Compliance and Security Sharing and Collaboration ○ Information management is Key Factors crucial for compliance with ○ Cost savings, efficient resource regulations like HIPAA and use, unlimited scalability, and Sarbanes-Oxley. lower maintenance. 10 OZAETA, Pia Margaret V. BA 180.1 | SEM 1 | A.Y. 2024-2025 Data Governance: Maintaining Data Quality and Cost Control Consequences of Weak Governance ○ Data duplication, inconsistency, and wasted time verifying data. Business Benefits of Information Management Improved Decision Quality Increased Accuracy and Reliability Reduced Compliance Risks Time and Cost Reduction Data Governance Importance Data Centers and Cloud Computing Control of Enterprise Data Types of IT Infrastructures ○ Ensures data trustworthiness ○ Data centers house servers; and accessibility. cloud computing offers Cost Elimination alternatives. ○ Effective governance reduces costs associated with Data Centers inaccurate data. Management and Access Control ○ On-premises data centers Industry Dependence on Data Governance allow easier access control Food Industry while cloud computing, ○ Compliance with food safety virtualization, and regulations. software-as-a-service Financial Services arrangements can increase ○ Strict reporting requirements data exposure. from Dodd-Frank Act. Examples of Data Centers Healthcare ○ National Climatic Data Center, ○ New accountability and NSA's data center, Apple's data reporting obligations for fraud center. protection. Master Data and Master Data Management (MDM) Definition of Master Data ○ Critical information on customers, products, and services. Data Governance and MDM ○ Manage data availability, usability, integrity, and security. 11 OZAETA, Pia Margaret V. BA 180.1 | SEM 1 | A.Y. 2024-2025 Integrating Data to Combat Data Chaos Data Duplication and Scattering SDDC Infrastructure ○ Data needed for operations is Base Resources scattered across various ○ Includes computation, storage, locations. networking, and security. Data Virtualization Evolution of Data Centers Flexibility and Access Transition from Traditional to SDDC ○ Provides a single point of ○ Improved resource use and IT access to data without alignment. physical movement. Accelerated Time to Value ○ Greater agility and streamlined approach compared to traditional methods. Software-Defined Data Center (SDDC) Integration and Optimization ○ Optimizes resource use and maximizes operational efficiency. Cloud Computing Cloud computing is a solution for managing complex IT infrastructures. Cloud computing is the general term for infrastructures that use the Internet and private networks to access, share, and deliver computing resources. 12 OZAETA, Pia Margaret V. BA 180.1 | SEM 1 | A.Y. 2024-2025 Selecting a Cloud Vendor The trade-off is cost versus control in Strategic Decision cloud computing. ○ Requires diligence in assessing cloud service Cloud Services and Virtualization providers. Cloud services, outsourced to third-party providers, manage updates, security, and maintenance. Virtualization replaces a tangible physical component with a virtual one, unlike cloud computing which involves multiple computers or hardware devices. Anything as a Service (XaaS) Models On-Demand Delivery ○ Resources provided on demand regardless of location. Types of Services ○ SaaS, PaaS, IaaS, and DaaS. 1. Software as a service (SaaS): Key Questions: Software is available to users from a Delays, workloads, costs, security, service provider as needed, licensed disaster recovery, and vendor expertise. through a subscription, pay-as-you-go model, or free of charge. Cloud Infrastructure 2. Platform as a service (PaaS): A Dynamic and Agile computing platform enables quick ○ Allowing apps and computing creation, testing, and deployment of power to be available on web applications without the need for demand. software and infrastructure. ○ Reduces IT costs and 3. Infrastructure as a service (IaaS): complexity. Delivers servers, storage, networks, workload balancers, and OSs as an Issues in Moving Workloads from Enterprise on-demand service. to the Cloud 4. Data as a service (DaaS): An Building a cloud strategy can disrupt information provision and distribution operations. model where data files are made Network and WAN require greater available to customers over a network bandwidth to support increased by a service provider. network traffic. Managing IT architecture or workload Software as a Service (SaaS) in the cloud requires different Delivery Method approaches, skills, and relationships. ○ Useful for applications with Cloud computing operates on shared minimal external interactions. infrastructure, making it less customized to specific company Platform as a Service (PaaS) requirements. Unified Development Platform Performance problems may be harder ○ Simplifies web application to identify with cloud computing development. 13 OZAETA, Pia Margaret V. BA 180.1 | SEM 1 | A.Y. 2024-2025 Infrastructure as a Service (IaaS) Types of virtualization include storage On-Demand Resources virtualization, server virtualization, ○ Can be public, private, or desktop virtualization, application hybrid. virtualization, network virtualization, and hardware virtualization. Data as a Service (DaaS) Each type of virtualization has its own Data Sharing benefits and uses, ○ Facilitates data access across clouds and systems. Virtualization Characteristics and Benefits Virtualization consolidates IT Cloud Services for Business Performance infrastructure, reduces maintenance Enhancement core business services and administration costs, and ○ Reduces costs and improves prepares for strategic IT initiatives. responsiveness. It enables flexible sourcing and cloud computing, reducing energy Virtualization and Virtual Machines consumption by up to 95% per server. Virtualization is a software program It provides scalability and load that mimics a physical balancing, ensuring maximum component in computer code. performance of all running VMs during Resource Efficiency large events like the Super Bowl. ○ Addresses underutilization of Virtualization consolidates servers, physical resources. reducing costs, efficient use of data center space, and energy consumption, reducing total cost of ownership (TCO). Over a three-year life cycle, a VM costs approximately 75% less to operate than a physical server. Virtualization can improve customer service and productivity. L3: DATA ANALYTICS & BUSINESS INTELLIGENCE Data Management Definition: Management of data flow from creation to deletion. ○ Due to the incredible volume of data that the typical organization creates, effective data management is vital to prevent storage costs from spiraling out of control and What Is a Virtual Machine? controlling data growth Definition and Functionality ○ VMs behave like physical Objectives of Data Management 1. Mitigate risks and costs of compliance. computers with pooled 2. Ensure legal requirements are met. resources. 3. Safeguard data security. 14 OZAETA, Pia Margaret V. BA 180.1 | SEM 1 | A.Y. 2024-2025 4. Maintain data accuracy and Factors Affecting DBMS Performance availability. 1. Data Latency: Delay in data availability. 5. Certify consistency across multiple 2. Volatility: Database's ability to handle locations. data changes. 6. Conform to best practices for data 3. Query Response Time: Impact of data handling. volume on response times. 4. Data Consistency: Importance of Databases and Data Warehouses immediate consistency. Databases: 5. Query Predictability: Flexibility needed ○ Collections of data sets stored for unpredictable queries. systematically. ○ Used by business applications DBMS Functions and transaction processing systems. Data Warehouses: ○ Integrate data from multiple sources for analysis and decision-making. Data Marts: ○ Smaller, function-specific data warehouses. Database Management Systems and SQL DBMS: Software for managing data transactions and queries. ○ Integrates with data collection systems. Online Transaction Processing (OLTP) and Top Enterprise DBMS (2016): Oracle, Online Analytics Processing (OLAP) Microsoft SQL Server, IBM DB2, SAP OLTP Systems: Record and process Sybase ASE, PostgreSQL. transactions. ○ Not optimized for data mining Relational Database Model or complex analytics. Standard Model: Most enterprises use OLAP refers to the analysis of complex relational databases. data from the data warehouse. ○ Data stored in tables; accessed ○ Databases are optimized for via SQL. extremely fast transaction and ○ SQL is a standardized query query processing. language for accessing databases. Database Architectures The format of a basic Centralized vs. Distributed: SQL statement is: ○ Centralized: Single location for SELECT data storage. column_name(s), ○ Distributed: Data stored across FROM table_name, multiple locations. WHERE condition 15 OZAETA, Pia Margaret V. BA 180.1 | SEM 1 | A.Y. 2024-2025 01 Centralized Database Advantages/Disadvantages Advantages: ○ Better data quality control. ○ Enhanced IT security. Disadvantages: ○ Transmission delays for geographically dispersed users. 02 Distributed Database Advantages/Disadvantages Advantages: Dirty Data Costs and Consequences of Dirty ○ Reliability and speed. Data Disadvantages: Managers and information workers ○ Network issues can affect often face uncertainty due to availability. incomplete, outdated, inaccurate, or overwhelming data. Impact: ○ 40% annual data growth; 20% considered dirty. ○ Each dirty data point costs $100 if unresolved. ○ Preventative measures are cost-effective. The cost of poor-quality data may be expressed as a formula: ○ Cost of Poor-Quality Data = Lost Distributed database architecture for Business + Cost to Prevent headquarters, manufacturing, and sales and Errors + Cost to Correct Errors marketing Data Ownership and Organizational Politics Key Issues: ○ Compliance relies on reliable data. ○ Data ownership is crucial for quality. ○ Siloed systems hinder effective risk management. Dirty Data Poor-quality data lacking integrity. 16 OZAETA, Pia Margaret V. BA 180.1 | SEM 1 | A.Y. 2024-2025 Data Life Cycle Principles Active Data Warehouse Three general data principles: Demand for real-time customer 1. Principle of diminishing data value: interaction and operations led to active The value of data diminishes as it ages, data warehouse (ADW). limiting peak performance. Increases in computing power, 2. Principle of 90/90 data use: Most processing speeds, and memory stored data is seldom accessed after enabled ADW. 90 days, reducing its value. ADWs support operations, not strategic 3. Principle of data in context: Data must decision-making. be integrated, processed, analyzed, and formatted into “actionable Big Data Analytics and Data Discovery information.” Analyzing large, complex data sets. ○ Reveals patterns and trends for Master Data Management (MDM) better business decisions. Applications of Big Data Analytics Customer Value Analytics (CVA): significant sector of customer relations, focusing on the increasing demand for innovative products, services, and personalized services. Big data analytics is used to capture this combination and transform it into usable data for tracking and predicting trends. Supply Chain: Enables real-time adjustmentsautomatic reordering of Integrates data for a unified view of a hot-selling items, and easy item customer, product, or other entity. movement. ○ Supports various departmental needs. Data Warehouses Primary sources of cleansed data for analysis. ○ Enterprise Data Warehouses (EDWs) integrate data across the organization. Store data for analytical queries against large datasets. Data marts are lower-cost, scaled-down versions of a data warehouse, implemented in less than Data Interpretation Challenges in Analytics 90 days. Importance of human expertise and ○ Serve specific departments or judgment in interpreting analytics functions, making them faster output. and easier to use. Data preparation, including fixing incomplete or duplicated data. 17 OZAETA, Pia Margaret V. BA 180.1 | SEM 1 | A.Y. 2024-2025 Importance of cleanliness in data mining and analysis projects. Large data volumes and variety increase the risk of dirty data. Importance of putting data into meaningful context. Importance of context in understanding traditional and big data interpretation. Business Intelligence (BI) vs. Data Analytics BI: Tools for transforming raw data into actionable insights. Data Analytics: Uses algorithms to analyze data relationships. Business Benefits of BI Advantages: ○ Provides real-time data for decision-making. ○ Integrates data for informed business strategies. Common Challenges: Data Selection and Quality Data and Text Mining ○ A BI strategy provides a Data and text mining are distinct from framework for selecting DBMS and data analytics. relevant data without limiting Data mining software allows users to integration options. analyze data from various dimensions, ○ Common issue due to potential categorize them, and find correlations unverifiable sources and or patterns. accuracy. Text mining involves interpreting words and concepts in context, helping Aligning BI Strategy with Business Strategy companies tap into customer opinions BI Goals and understand consumer intent. 1. Clearly articulate business Combining data and text mining can strategies. create greater value, enabling 2. Deconstruct the business organizations to forecast the future. strategies into a set of specific goals and objectives—the Creating Business Value targets. Enterprises invest in data mining tools 3. Identify the key performance to add business value indicators (KPIs) that will be used to measure progress toward each target. 4. Prioritize the list of KPIs. 18 OZAETA, Pia Margaret V. BA 180.1 | SEM 1 | A.Y. 2024-2025 5. Create a plan to achieve goals Electronic Records Management (ERM) and objectives based on the Definition: System for managing priorities. business records. 6. Estimate the costs needed to ○ Ensures compliance and implement the BI plan. efficient retrieval of 7. Assess and update the documents. priorities based on business Major ERM tools include workflow results and changes in software, authoring tools, scanners, business strategy. and databases. Business-driven development ERM systems have query and search approach starts with a business capabilities, strategy and work backward to identify data sources and the data that need to Legal Duty to Retain Business Records be acquired and analyzed. Companies must prepare for audits, investigations, lawsuits, and other BI Architecture and Analytics legal actions. BI architecture is evolving to handle Types of lawsuits include patent big data and end-user performance violations, product safety negligence, demands. intellectual property theft, contract BI vendors are addressing challenges breaches, wrongful termination, of managing social, sensor, and other harassment, and discrimination. new data types. Senior management must ensure Cloud-based BI is a technology compliance with legal and regulatory advance that can handle big data. duties. BI can be hosted on public or private Success of ERM depends on a clouds, with cloud services offering partnership of key players. enhanced data security. Properly managed records are strategic Software as a Service (SaaS) is a assets, improperly managed or popular option for cloud-based BI, like destroyed records become liabilities. MicroStrategy Cloud. Potential downsides include slower ERM Best Practices response times, security risks, and Key Principles: backup risks. ○ Accountability, Transparency, Integrity, Protection, Compliance, Availability, Retention, Disposition. Framework for generally accepted recordkeeping principles: 1. Principle of Accountability: Assign senior executive to oversee recordkeeping program, adopt policies, and ensure auditability. 2. Principle of Transparency: Document recordkeeping processes and activities in an understandable manner. 3. Principle of Integrity: Ensure recordkeeping program guarantees 19 OZAETA, Pia Margaret V. BA 180.1 | SEM 1 | A.Y. 2024-2025 authenticity and reliability of records L4: NETWORKS & COLLABORATIVE and data. TECHNOLOGY 4. Principle of Protection: Construct recordkeeping program to protect Network Types private, confidential, privileged, secret, Computer networks are sets of or essential business information. computers connected to share 5. Principle of Compliance: Ensure resources. recordkeeping program complies with laws and policies. 6. Principle of Availability: Maintain records for timely, efficient, and accurate retrieval. 7. Principle of Retention: Maintain records and data for appropriate time based on legal, regulatory, fiscal, operational, and historical requirements. 8. Principle of Disposition: Securely dispose of records when no longer Internet, Intranets, and Extranets required by laws or policies. Internet: Global network accessible to anyone with a connection. ERM Benefits Intranet: Private network for An ERM can help a business to become authorized users within an more efficient and productive by the organization. following: Extranets: Private networks allowing ○ Enabling the company to external users access to certain access and use the content intranet parts. contained in documents. ○ Cutting labor costs by automating business processes. ○ Reducing the time and effort required to locate information the business needs to support decision-making. ○ Improving the security of content, thereby reducing the risk of intellectual property theft. ○ Minimizing the costs Virtual Private Networks (VPNs) associated with printing, Purpose: Encrypts internet traffic for storing, and searching for online protection. content. Functionality: ○ Reroutes connection through a VPN server. ○ Establishes an encrypted tunnel for secure communication. 20 OZAETA, Pia Margaret V. BA 180.1 | SEM 1 | A.Y. 2024-2025 Network Terminologies ○ Throttle traffic for other types Network Traffic: Amount of data of less critical data. moving across a network. This process, called traffic shaping, is ○ Types: Real-time and central to the Net neutrality debate. non-real-time traffic. Net Neutrality: Ensures equal internet Data Packet: Small unit of information access and speeds. transmitted over a network. Bandwidth: Maximum data Internet Protocols (IP) transmitted in a given time (measured Method for sending data across in Mbps). networks. Ping: Time taken for data to travel to a IP Address: Unique identifier for server and back (measured in ms). devices on a network. IPv4 vs. IPv6: Functions Supported by Business Networks ○ IPv4: Limited addressing Support Areas: Communication, space. mobility, collaboration, relationships, ○ IPv6: Vastly increased and search. addressing capacity. Components: Three Basic Functions of Network ○ Switches: Connect devices Protocols: efficiently. 1. Send data to recipients. ○ Routers: Link networks to the 2. Transmit data from source to Internet. destination securely. Impact: Investments in infrastructure 3. Receive and respond to correct affect productivity, security, and recipient(s). customer service. Evolution of Wireless Networks 3G to 4G & 5G: Progression from voice/data to broadband connectivity. 4G: Faster data transfer rates. 5G: Dramatic speed increases and support for IoT. 4G Wireless Networks Overview Uses circuit-switched subsystems based on packet-based IP unline 2G & 3G. Standards: ○ WiMAX: Long-range wireless Quality of Service (QoS) networks. Importance: Key for managing ○ Long-Term Evolution (LTE): delay-sensitive data. Fastest download speeds. QoS technologies create two tiers of Opportunities: Enhanced mobility and traffic: productivity. ○ Prioritize traffic for time-delay-sensitive or 5G Mobile Networks latency-sensitive apps. Benefits: Significant speed and capacity improvements. 21 OZAETA, Pia Margaret V. BA 180.1 | SEM 1 | A.Y. 2024-2025 Economic Impact: Job creation and Business Benefits of APIs opportunities in various industries. Channels to New Markets: Extend Data Consumption: Supports high reach to customers. mobile data usage. Promote Innovation: Allow problem-solving through collaboration. Network Generations and Switching Facilitate App Development: Essential Networks have always been based on for future applications. switching, with circuit switching being slower than packet switching. Switching Types: ○ Circuit Switching: Older, slower technology. ○ Packet Switching: More efficient for digital transmission. Wireless networks use packet switching and wireless routers, which are connected to wired networks. Application Program Interfaces (APIs) An interface is the boundary where two separate systems meet. Functionality: APIs are set of functions, commands, and protocols used by programmers to build software for an operating system (OS). ○ APIs simplify the programmer's Global Mobile Traffic and Trends job by allowing predefined Importance: Advanced networks are functions or reusable codes to vital for economic competitiveness. interact with an OS. Growth Drivers: Increased demand for faster connections and mobile devices. Business Assets and APIs Value: Quick access to business assets and services. Usage: APIs enable the creation of new business applications. 22 OZAETA, Pia Margaret V. BA 180.1 | SEM 1 | A.Y. 2024-2025 Higher Demand for High-Capacity Mobile Factors for Choosing Mobile Network Networks Solutions Increase in mobile network capacity Criteria: and use is driving demand for ○ Easy deployment and high-capacity networks. management. High-capacity networks: Wireless ○ Reliable and secure mobile, satellite, and VoIP networks. communications. VoIP: Cost-effective communication method. Mobile Infrastructure Strategy Transitioning from ad hoc to strategic planning for mobile capabilities. Collaborative Technologies Considerations: Network demands, Business performance relies on security, and technology. broadband data networks for communication, mobility, and Mobile Network Types collaboration. Three general types: Examples: Tools like email, 1. Wide Area Networks (WANs): videoconferencing, and social media. High-frequency radio communication. 2. Wireless LANs: Extend wired Virtual Collaboration Benefits for Leading networks. Businesses 3. Wireless Broadband WiMAX: Information Sharing: Enhances Alternative to traditional lines. efficiency in supply chain management. Mashup of GPS and Wireless Technologies Cost Reduction: Lowers transportation GPS positioning and short-range and inventory costs. wireless technologies like Bluetooth and Wi-Fi offer unprecedented Challenges in Collaboration intelligence. Group Dynamics: Can be productive or These technologies can revolutionize dysfunctional. traffic and road safety. Complexity: Influenced by various factors including location and data Near-Field Communication (NFC) sources. Definition: Secure technology for data Not all groups are successful transfer between devices. Applications: Mobile payments, Online Brainstorming Tools healthcare, and public transport. Top Tools: Miro, MindMeister, Coggle, and others for effective brainstorming. 23 OZAETA, Pia Margaret V. BA 180.1 | SEM 1 | A.Y. 2024-2025 The Internet of Things (IoT) L5: CYBERSECURITY & RISK MANAGEMENT Network of physical objects with IN OPERATIONS connectivity for collection and data exchange. The Face and Future of Cyberthreats Applications: Smart devices and Surge in Cyberattacks systems for various industries. ○ Dramatic increase in frequency of cyberattacks. IoT Sensors and Smart Grids ○ Data breaches have reached Sensors are the core of IoT, providing alarming levels. data about activities, events, and Definitions influencing factors. ○ Data Incident: Unauthorized Smart grids: Consumers gain insights access or disruption of a into their power consumption for network/system. intelligent energy use decisions. ○ Data Breach: Successful IoT can be applied to "smart cities" to retrieval of sensitive reduce waste and improve efficiency. information. Advantages of IoT Data Breaches Statistics Benefits: Monitoring, insights, remote 2016 Data Breaches troubleshooting, and service delivery. ○ 1,093 breaches reported in the 1. Monitoring performance, quality, and US (40% increase from 2015). reliability of products and services ○ Breakdown: Business (494), 2. Gaining insight into potential new Healthcare (377), Education products and service (98), Government/Military (72), 3. Support sales Banking/Financial (52). 4. Better understand product use 2023 Data Breaches 5. Remote troubleshooting of products ○ Over 1,800 breaches reported 6. Deliver revenue-generating post-sales (estimated 64% increase from service 2016). 7. More efficiently deliver post-sales ○ Breakdown: Business (~650), services Healthcare (~500), Education (~120), Government/Military Disadvantages of IoT (~90), Banking/Financial (~60). Concerns: Security, privacy, and cost issues. Vulnerabilities and Risks 1. Network security Vulnerability: A gap in IT security that 2. Data privacy can be exploited. 3. Data analysis capabilities Contributing Factors 4. Data collection capabilities ○ People: Inadequate training. 5. Realistic efficiency opportunities ○ Process: Poor separation of 6. Realistic new revenue opportunities duties. 7. Cost ○ Tools: Lack of enforcement of technical controls. Vulnerabilities threatens confidentiality, integrity, or availability of data. 24 OZAETA, Pia Margaret V. BA 180.1 | SEM 1 | A.Y. 2024-2025 ○ Insider misuse, physical theft, miscellaneous errors. Implications of Cyberthreats Phishing Attacks ○ 61% of breaches in 2023 attributed to phishing. Consequences of Breaches ○ Damaged reputations, consumer backlash, financial Hacking penalties. Broadly defined as intentionally Cybersecurity Spending accessing a computer without ○ Increased from $73.7 billion in authorization or exceeding authorized 2016 to an estimated $150 access. Various state and federal laws billion in 2023. govern computer hacking. ○ Hacktivist is short for Intentional vs. Unintentional Threats hacker-activist or someone Cyberthreat who performs hacking to ○ Threats posed via the Internet, promote awareness can be intentional or ○ Hacking is a crime unintentional. Statistics Intentional Threats ○ Over 60% of breaches in 2023 ○ Examples: Data theft, malware resulted from hacking. attacks. Unintentional Threats Classes of Hackers ○ Categories: Human error, White Hat: Security specialists environmental hazards, system improving security. failures. Black Hat: Malicious hackers causing damage. Major Sources of Cyberthreats Gray Hat: Ethical violations for the Intentional Threats common good. ○ Hacking, phishing, crimeware. Unintentional Threats 25 OZAETA, Pia Margaret V. BA 180.1 | SEM 1 | A.Y. 2024-2025 Internal Threats and Data Tampering Internal threats pose a significant challenge due to the various ways employees exploit their access for malicious purposes. Data tampering, a common attack method, involves entering false or fraudulent data, often undetected, into a computer or altering existing data. ○ Used by insiders Cyber Social Engineering Physical Theft or Loss Manipulation of individuals for Increased Risks unauthorized access. ○ Theft of portable devices. Common Methods ○ Phishing: Mass emails Miscellaneous Errors pretending to be from Concerns legitimate sources. ○ Capacity shortages affecting ○ Spear Phishing: Targeted information availability. emails based on personal information. Crimewares Spyware: Tracking software that is not designed to intentionally damage or disable a system. Adware: Displays advertisements. Malware: Hostile software disrupting operations. ○ Software, including computer viruses, rootkits, worms, trojan horses, ○ Ransomware: Blocks access until payment is made. New Attack Vectors Botnets are networks of infected Attack vector is a path or means by computers (zombies) controlled by which a hacker can gain access to a remote attackers. computer or network server in order to deliver a malicious outcome. Denial-of-Service (DoS) Attacks Emerging Vulnerabilities Types ○ Mobile devices, social media, ○ DDoS, TDoS, PDoS. cloud services. 1. Distributed Denial-of-Service (DDoS): Overwhelms networks with traffic. Cyberattack Targets and Consequences 2. Telephony Denial-of-Service (TDoS): Value of Data Floods systems with phone calls. ○ Enterprises possess valuable 3. Permanent Denial-of-Service (PDoS): assets attracting Permanently disables systems. cybercriminals. 26 OZAETA, Pia Margaret V. BA 180.1 | SEM 1 | A.Y. 2024-2025 Management Shortcomings that has commercial value, protected ○ Underestimating by law vulnerabilities and employee Significance: IP constitutes a risks. substantial portion of a company's Key Mistakes in Cybersecurity value. Management: underestimating Risks: Digital theft is facilitated by vulnerabilities and employee risks technology and globalization, leading to potential existential threats for High-Profile vs. Under-the-Radar Attacks businesses. High-Profile Attacks Legislative Measures: The Defend ○ Executed for recognition. (e.g. Trade Secrets Act (2016) enables hacktivism) federal civil actions for IP theft. Under-the-Radar Attacks ○ Focused on long-term data Identity Theft theft and espionage, usually Prevalence: Major ongoing threat phishing tactics. exacerbated by electronic data sharing. Challenges: Organizations often fail to Major Cyberattack Targets disclose breaches, leading to increased Critical infrastructure, intellectual legal requirements for notifications. property theft, identity theft, BYOD, social media attacks. Bring Your Own Device (BYOD) Notable Cyberattack Examples Adoption Rates ○ Philippine Commission on ○ 74% of U.S. organizations using Elections: Personal data of 55 or planning BYOD. million voters leaked. Security Concerns ○ Combined Systems, Inc.: Hack ○ Personal devices often lack by Anonymous against a strong security. supplier of crowd-control equipment. ○ CIA: Multiple denial-of-service attacks against their website. Critical Infrastructure “Systems and assets, whether physical or virtual, so vital to a country that the incapacity or destruction of such Social Media Attacks systems and assets would have a Risks: Poor security practices leading debilitating impact on security,..” to breaches. Importance: Attacks can disrupt Preventive Measures: Importance of essential services, posing risks to web filtering, user education, and strict national security and public safety. security policies. Trends ○ Increased incidents, especially Cyber Risk Management in the energy sector. Importance: Top management must prioritize cybersecurity. Theft of Intellectual Property (IP) Emerging Threats: Mobile Intellectual property is a work or technologies and the Internet of Things invention that is the result of creativity 27 OZAETA, Pia Margaret V. BA 180.1 | SEM 1 | A.Y. 2024-2025 (IoT) increase vulnerabilities, making Worldwide Data Loss Key Findings security a critical focus. Trends: Hacking is the leading cause of Risk is the probability of a threat data loss. successfully Key Factors in Cyber Risk Management Comprehensive Program: Address rising data breaches. IT Security Concepts and Terminologies IT Defenses: Essential Cybersecurity Tools 1. Antivirus Software: Detects malware. 2. Intrusion Detection Systems (IDSs): Monitors network traffic. 3. Intrusion Prevention Systems (IPSs): Automatically blocks malicious traffic Organizational Measures Policies and Training: Essential for effective cybersecurity. Asset Protection Strategy: Invest in security measures and focus resources on protecting high-value assets. KPMG's Data Loss Barometer: An annual report that highlights global data loss trends and statistics. IT Security Terminology Access Control: Restricts network Characteristics of an Effective Cybersecurity access. Program Encryption: Protects data from Access Control: Restrict access to data unauthorized access. and networks. Incident Response: Detect and respond to attacks in real-time. 28 OZAETA, Pia Margaret V. BA 180.1 | SEM 1 | A.Y. 2024-2025 Mobile Security Defenses and trickery for their personal gain. Minimum Security Measures Fraud can be committed by insiders 1. Mobile Biometrics: Includes (employees). thumbprints, voice recognition, etc. Statistics 2. Rogue App Monitoring: Detects and ○ 81% of organizations have eliminates harmful applications. experienced insider fraud. 3. Remote Wipe Capability: Erases data on lost devices. Occupational Fraud Prevention and 4. Encryption: Secures data stored on Detection mobile devices. Do-Not-Carry Rules Mitigation Strategies: Adopted by companies to reduce mobile device risks. Business Continuity Planning Strategies to maintain business functions during disruptions. Corporate Governance Components: Involves processes, Enterprise-Wide Approach: Combines resources, and partnerships. risk, security, compliance, and IT. Importance: Business continuity Benefits: Reduces costs associated planning is often overlooked until with fraud detection and prosecution. disasters occur, akin to an insurance ○ Promotes a culture of ethics policy. and compliance. Government Regulations Fraud Detection Techniques Growing Threat: Cyberattacks are a Intelligent Analysis primary global concern, prompting ○ Utilizes data analytics to regulatory action. identify anomalies. Mandatory Compliance: Enterprises must protect sensitive data. General Controls Enforcement Actions: Federal Trade 1. Physical Controls Commission (FTC) impose significant Protects computer facilities penalties for non-compliance and and resources. inadequate data protection. 2. Access Controls Manages who can use hardware and software. 3. Administrative Controls Establishes guidelines for compliance monitoring. Representative Administrative Controls Employee Management: Training and Defending Against Fraud supervision to prevent fraud. Fraud is a nonviolent crime in which fraudsters use deception, confidence, 29 OZAETA, Pia Margaret V. BA 180.1 | SEM 1 | A.Y. 2024-2025 Regulatory Framework Mandates accurate reporting and financial disclosure. Requires comprehensive internal controls to deter fraud. Enforces severe penalties for false reporting. Internal Controls Objectives: Auditing Information Systems ○ Ensure reliability of financial Importance of Audits: Prevent fraud reporting. and ensure compliance. ○ Achieve operational efficiency. Audit Questions ○ Ensure compliance with laws. Control Effectiveness ○ Safeguard assets. Are controls implemented properly? Cyber Defense Strategies Strategy Development ○ Tailored to protect specific L6: SEARCH, SEMANTIC, & business components. RECOMMENDATION TECHNOLOGY ○ Balance between over and Using Search Technology for Business underinvestment Success Search engine is an application for locating Web pages or other content (e.g., documents, media files) on a computer network. Importance for Businesses ○ Tools like Google, Bing, and Yahoo are essential for business operations. ○ Enterprise search helps unlock Cyber Defense Strategy Controls hidden content, driving General Controls protect systems revenue and efficiency. regardless of application. Application controls safeguard specific applications 30 OZAETA, Pia Margaret V. BA 180.1 | SEM 1 | A.Y. 2024-2025 How Search Engines Work Types of Search Engines ○ Crawler Search Engines: Use bots to index the web (e.g., Google). ○ Web Directories: Organize websites into categories, often automated now. ○ Hybrid Search Engines: Combine directory and crawler technologies. ○ Meta-Search Engines: Compile results from multiple search engines. ○ Semantic Search Engines: Focus on meaning rather than keyword matching. How Crawler Search Engines Work Importance of Search for Business Functionality of Spiders/Bots Access to information is a competitive ○ Download and index web advantage pages. Key Areas of Search Technology Page Repository: Stores information ○ Enterprise Search, for efficient access and analysis. Recommendation Engines, Crawler Control Module: Manages Search Engine Marketing multiple spiders for web scanning. (SEM), and Web Search. Enterprise Search Functionality ○ Allows access to internal and external information. Challenges ○ Managing structured vs. unstructured data and security issues. ○ Unstructured data being more difficult to organize and search. Indexing Techniques: Use of look-up tables and inverted indexes for Recommendation Engines efficiency. Suggest content based on user