ITM102 Week 1-6 PDF

Video was shown about technology changing our lives from relationships to hobbies to work, most aspects of life Information technology can change life in many ways, what is new in management information systems? ○ IT innovations (AI), new business models (no more cable, only internet like Ne...

Video was shown about technology changing our lives from relationships to hobbies to work, most aspects of life Information technology can change life in many ways, what is new in management information systems? ○ IT innovations (AI), new business models (no more cable, only internet like Netflix), e-commerce expanding (selling services, not only goods), management changes (online collaboration, business intelligence, virtual meetings), changes in firms and organizations (more collaborative, social media to listen to consumers, more aware of technologies) Globalization: internet and global communications have changed how and where business is done ○ Internet drastically reduced costs of operating on global scale ○ Increases in foreign trade, outsourcing ○ Competition for jobs, markets, resources, ideas ○ Growing interdependence of global economics ○ Requires a new understanding of markets and opportunities If you are a fully digital firm: ○ Significant business relationships are digitally enabled and mediated ○ Core business processes are accomplished through digital networks ○ Key corporate assets are managed digitally Digital firms offer greater flexibility in organization and management (time shifting, shape shifting) Many firms are close to becoming digital firms Strategic business objectives on information systems: ○ Growing interdependence between: ability to use IT and ability to implement corporate strategies and achieve corporate goals Firms invest heavily in information systems to achieve 6 strategic business objectives: operational excellence, new products/services/business models, customer and supplier intimacy, improved decision making, competitive advantage, survival ○ Operational excellence: improvement in efficiency to attain higher profitability, information systems and technologies, the most important tools in achieving greater productivity Ex. Walmart Over $524 billion in sales in 2019 Retail link system: links suppliers to stores for a superior replenishment system ○ New products, services, and business models: business model - how a company produces, delivers, and sells products or services to create wealth, information systems are a major tool to create (new products, services, entirely new business model) ○ Customer and supplier intimacy: serving customers well leads to customers returning (it raises revenues and profits) Ex. Personalized services in high-end hotels Mandarin Oriental Hotel (room temperature, lights, music Intimacy with suppliers results in lower costs (allows them to provide vital inputs) Ex. JCPenney's information system (enhances relationships with suppliers in Hong Kong) ○ Improved decision making: managers do not have the right information at the right time (needle in haystack) Without accurate information: they rely on forecasts, best guesses and luck Results in: misallocation on resources, poor response times Poor outcomes raise costs, lose customers Real-time data improves ability to make decisions Ex. Verizon's web-based digital dashboard Real-time data on customer complaints, network performance, and so on ○ Competitive advantage: delivering better performance, charging less for superior products, responding to customers and suppliers in real-time Ex. Industry leaders (Apple, Walmart, UPS), they know how to use information systems for this purpose Competitive advantage often results from achieving previous business objectives ○ Survival: IT is necessity for business Keeping up with competitors (ex. Industry-level changes) Citibank's introduction of ATMs Government regulations requiring record-keeping Toxic Substances Control Act, Sarbanes-Oxley Act, Dobb-Frank Act Information systems: set of interrelated components  ○ Collect process, store, distribute information, support decision-making, coordination, and control Information technology: the hardware and software that a firm needs to achieve business objectives, hardware and software are technical foundations and tools, similar to the material and tools used to build… Information vs. data ○ Information is data shaped into meaningful form ○ Data are streams of raw facts Functions of an IS ○ Input, processing, output, feedback Raw data collected is input Dimensions of IS ○ Organization: hierarchy of authority, responsibility, separation of business functions, unique business processes, unique business culture, organizational politics ○ Management: managers set organizational strategy, managers must act creatively Creation of new products and services Occasionally re-creating the organization ○ Technology: hardware/software, infrastructure, data management ○ An Is is an instrument for creating value ○ Investments in IT will result in superior returns  Investing in IT does not guarantee good returns ○ There is considerable variation in the returns firms receive from systems investments Factors: adopting the right business model, investing in complementary assets: assets required to derive value from a primary investment ○ Organization assets (ex. Efficient business processes), managerial assets (ex. Incentives for management innovation), social assets (ex. Internet and telecommunications infrastructure) Contemporary approaches to IS ○ Technical approach: emphasizes mathematically based models, the disciplines are: computer science, management science, operations research ○ Behavioural approach: behavioural issues (strategic business integration, implementation, etc.), the disciplines are: psychology, economics, sociology ○ Approach of our book/class: sociotechnical Optimal organizational performance is achieved by jointly optimizing both social and technical systems used in production Helps avoid a purely technological approach Week 2: What is a business process? ○ Business is group of people to create value ○ A sequence of activities designed to create something of value Business processes: flows of material, information, knowledge  ○ Sets of activities, steps ○ May be tied to a functional area or be cross-functional ○ Sales marketing Businesses: can be seen as a collection of business processes Business processes may be assets or liabilities Ex. Of functional business process: ○ Manufacturing and production: assembling the product ○ Sales and marketing: identifying customers ○ Finance and accounting: creating financial statements ○ Human resources: creating financial statements IT improves business processes: increasing efficiency of existing processes through automating manual steps ○ Ex. Checking clients' credit, generating an invoice ○ Enabling entirely new processes by: changing the flow of information, replacing sequential steps with parallel steps, eliminating delays in decision-making, supporting new business models Types of information systems: transaction processing systems (TPS) ○ Serve operational managers and staff ○ Perform and record daily routine transactions necessary to conduct business Ex. Sales order entry, payroll, shipping ○ Allow managers to monitor the status of operations and relations with the external environment ○ Serve predefined, structured goals and decision-making Systems for business intelligence (BI): a technology-driven process for analyzing data and presenting actionable information to help executives make informed decisions ○ Ex. Management information systems, decision support systems, executive support systems  Management information systems (MIS): serve middle management, provide reports on the firm's current performance (based on data from TPS), provide answers to routine questions with predefined procedures for answering them, typically have little analytic capability Decision support systems (DSS) ○ Improved decision making, serve middle management, support non-routine decision-making Ex. What is the impact on the production schedule if December sales doubled? ○ May use external information as well as TPS/MIS data ○ Types: model-driven (DSS, ex. Voyage-estimating systems), data-driven (DSS, ex. Target Marketing) Executive support systems (ESS) ○ Support senior management, address non-routine decisions Requiring judgement, evaluation, and insight  ○ Incorporate data about external events (ex. New tax laws or competitors) as well as summarized information from internal MIS and DSS Ex. Digital dashboard with a real-time view of the firm's financial performance Enterprise applications ○ Systems for linking the enterprise, span functional areas, execute business processes across the firm, include all levels of management Four major enterprise applications: Enterprise resource planning (ERP), supply chain management (SCM), customer relationship management (CRM), knowledge management system (KMS) Enterprise systems: also known as enterprise resource planning (ERP) systems ○ Collect data from different firm functions and store data in a single central data repository, resolve problems of fragmented data ○ Enable: coordination of daily activities, efficient response to customer orders (production, inventory), decision-making by managers about daily operations and longer-term planning Supply chain management (SCM) systems ○ Manage a firm's relationships with suppliers ○ A type of inter-organizational systems: automate the flow of information across organizational boundaries ○ Share information about: orders, production, inventory levels, delivery of products and services ○ Goal: right amount of products to destination with the least amount of time and lowest cost Customer relationship management (CRM) systems ○ Provide information to coordinate all of the business processes that deal with customers: sales, marketing, customer service ○ Helps firms identify, attract, and retain the most profitable customers Knowledge management systems (KMS)  ○ Support processes for capturing and applying knowledge and expertise: how to create, product, and deliver products and services ○ Collect internal knowledge and experience and make it available to employees ○ Link to external sources of knowledge ○ Include enterprise-wide systems for: Managing documents, graphics, and other digital knowledge objects Directories of employees with expertise Intranets and extranets: used to increase integration and expedite the flow of information ○ Intranets: internal company websites accessible only by employees ○ Extranets: company websites accessible externally only to vendors and suppliers, often used to coordinate supply chain E-business: use of digital technology and the internet to drive major business processes E-commerce: subset of e-business, buying and selling goods and services through internet E-government: using internet technology to deliver information and service to citizens, employees, and businesses What is collaboration? ○ Working with others to achieve shared and explicit goals ○ Teams have a specific missions ○ Focus on task or mission accomplishment within or across organizations ○ Collaboration types: short-lived or long-term, informal or formal (teams) Collaboration is more important than ever: ○ Changing nature of work, growth of professional work, changing the organization of the firm, changing the scope of the firm, emphasis on innovation changing the culture of work and business What is a social business?: use of social networking platforms (internal and external) to engage employees, customers, and suppliers ○ Aims to deepen interactions and expedite information sharing ○ Conversations to strengthen bonds with customers ○ Requires information transparency Driving the exchange of information without intervention from executives or others ○ Seen as a way to drive operational efficiency, spur innovation, accelerate decision-making Business benefits of collaboration and teamwork: investment in collaboration technology can return large rewards, especially in sales and marketing, research and development  ○ Productivity: sharing knowledge and resolving problems ○ Quality: faster resolution of quality issues ○ Innovation: more ideas for products and services ○ Customer service: complaints are handled more rapidly ○ Financial performance: generated by improvements in factors above Building a collaborative culture and business process: ○ Command and control organizations: no value placed on teamwork or lower-level participation in decisions ○ Collaborative business culture: senior managers rely on teams of employees Policies, products, designs, processes, and systems rely on teams The managers' purpose is to build teams Tools and technologies for collaboration and social business ○ Email and instant messaging (IM) ○ Wikis ○ virtual worlds ○ Collaboration and social business platforms: Virtual meeting systems: videoconferencing, telepresence Cloud collaboration services (google drive, google docs, etc.) Microsoft sharepoint and IBM notes Enterprise social networking tools Checklist for managers: evaluating and selecting collaboration and social software tools ○ Time/space matrix ○ Six steps in evaluating software tools Identify your firm's collaboration challenges Identify what kinds of solutions are available  Analyze available products' costs and benefits Evaluate security risks Consult users for implementation and training issues Evaluate product vendors Week 3: IT infrastructure: ○ Set of physical devices and software required to operate an enterprise ○ Set of firm-wide services including: Computing platforms providing computing services Telecommunications services Data management services Application software services Physical facilities management services IT management, standards, education, and other services ○ "service platform" perspective A more accurate view of the value of investments IT was officially being used in 1959 for business purposes ○ 1981: personal computers gave employees some freedom to their tasks (limited applications) ○ 2000: business grew so there was a lot of need for new resources Mainframe/Mini computer (1959-present) ○ Mainframe: Highly centralized computing Controlled by professional programmers and operators Infrastructure was typically provided by a single vendor  ○ Transition to minicomputers: Decentralized computing customized for departmental needs Offered at a lower cost Evolved into midrange computers and became part of broader networks Personal computer (1981-present) ○ Emergence of personal computers: IBM PC: the start of the personal computer era Introduction of Microsoft DOS and the Windows operating system on Intel-based computers (Wintel PCs) Transitioned from stand-alone systems to performing on networks Rise of desktop productivity software, like word processors ○ Current landscape: Approximately 88% of desktop PCs run Windows, and 8% run MacOS Wintel dominance is decreasing with increasing iPhone and Android device sales Client/server (1983-present) ○ Client/server computing: Processing work is split between clients and servers Client: initiates communication, typically for data entry or retrieval Servers: manage tasks like storing shared data, serving wed pages, and running network activities Modern servers use multiple processors in server racks or standalone boxes Enterprise computing (1992-present) ○ Connect disparate networks into an enterprise-wide infrastructure Through Transmission Control Protocol/Internet Protocols (TCP/IP) Needs software to link disparate applications ○ Allows seamless information flow within organizations and with external partners Cloud and mobile computing (2000-present) ○ Access to shared computing resources (computers, storage, applications, services) over a network, often the internet, on an as-needed basis ○ Global public cloud spending of $350 billion in 2022 ○ Major providers: Amazon, Google, IBM, Oracle, and Microsoft ○ Allows the offering of Software as a Service (SaaS) applications over the internet A client computer networked to a server computer with processing split between the two types of machines is called: two-tiered client/server architecture Technology drivers of infrastructure evolution (part 1): ○ Moore's law and micro-processing power: computing power doubles every 2 years ○ Law of Mass Digital Storage: the amount of data being stored each year doubles ○ Metcalfe's Law and Network Economics: the value or power of a network grows exponentially as a function of the number of network members  Technology drivers of infrastructure evolution (part 2): ○ Declining communication costs and the internet: exponential growth in the size of the internet ○ Standards and network effects: compatibility of products and the ability to communicate in a network  Components of IT infrastructure: ○ Computer hardware platforms, operating system platforms, enterprise software applications, data management and storage, networking/telecommunications platforms, internet platforms, consulting system integration services Computer hardware platforms: ○ Client machines: desktop PCs, laptops, mobile computing (smartphone, tablets), desktop chips vs. Mobile chips ○ Servers ○ Mainframes: IBM mainframe, digital workhorse for banking and telecommunications networks Operating system platforms: ○ Corporate servers: Windows server, Unix, Linux ○ Client level: Microsoft Windows, Android, iOS, Windows 10 (mobile/multitouch), Google's Chrome OS (cloud computing) Roles of an operating system: ○ Manages computer resources, such as memory and input/output devices ○ Provides an interface through which a human can interact with the computer ○ Allows an application program to interact with these other system resources Enterprise software applications: ○ In 2020, firms are expected to spend over $500 billion on software for enterprise applications ○ Largest providers: SAP and Oracle ○ Middleware providers: IBM, Oracle Data management and storage: ○ Data software providers: IBM (DB2), Oracle, Microsoft (SQL Server), SAP Sybase (Adaptive Server Enterprise), MySQL (Oracle), Apache Hadoop Networking/telecommunications platforms: ○ Network operating systems: Windows Server, Linux, Unix ○ Network hardware providers: Cisco, Juniper Networks  ○ Telecommunications services: telecommunications, cable, telephone company charges for voice lines and internet access, AT&T, Verizon Internet platforms: ○ Hardware, software, management services to support company websites, intranets Wed-hosting services, routers, cabling or wireless equipment ○ Internet hardware server market IBM, Dell, Oracle, HP ○ Web development tools/suites Microsoft (Visual Studio and NET), Oracle-Sun (Java), Adobe Consulting and system integration services: ○ Even large firms do not have the resources for a full range of support for new, complex infrastructure ○ Leading consulting firms: Accenture, IBMGlobal Services, HP, Infosys, Wipro Technologies ○ Software integration: ensuring new infrastructure works with legacy systems ○ Legacy systems: older TPS created for mainframes that would be too costly to replace or redesign Dealing with platform and infrastructure and change: ○ As firms shrink or grow, IT needs to be flexible and scalable ○ Scalability: ability to expand to serve a larger number of users ○ For mobile computing and cloud computing: new polices and procedures for managing these new platforms, contractual agreements with firms running clouds and distributing software Android is the most popular smartphone operating system Management and governance: ○ Who controls IT infrastructure? ○ How should the IT department be organized? Centralized: the central IT department makes decisions Decentralized: business unit IT departments make their own decisions ○ How are costs allocated between divisions and departments? Making wise infrastructure investment: ○ Under-investment and over-investment can hamper firm performance ○ Real-versus-buy ○ Cloud computing Security requirements Impacts on business processes and workflow ○ Outsourcing Week 4: What are enterprise systems: ○ Also known as enterprise resource planning (ESP) systems ○ Based on a suite integrated software modules and a common central database ○ Collects data from many divisions of the firm for use in nearly all of the firm's internal business activities ○ Information entered in one process is immediately available for other processes How does ERP work (video) Enterprise software: ○ Built around thousands of predefined business processes that reflect best practices Finance and accounting, human resources, manufacturing and production, sales and marketing ○ To implement, firms: Select functions of the systems they wish to use, map business processes to software processes, use software's configuration tables for customizing SAP ERP Demo (video): Business value of enterprise systems: ○ Increases operational efficiency, enables rapid responses to customer requests, provides firm-wide information to support decision-making, includes analytical tools to evaluate overall organizational performance The supply chain: ○ Network of organizations and processes for: Procuring materials, transforming materials into products, distributing the products ○ Upstream supply chain ○ Downstream supply chain ○ Internal supply chain  Supply chain management: ○ Inefficiencies cut into a company's operating costs: can waste up to 25 percent of operating expenses ○ Just-in-time strategy: components arrive as they are needed, finished goods shipped after leaving the assembly line ○ Safety stock: buffer for lack for flexibility in the supply chain ○ Bullwhip effect: information about product demand gets distorted as it passes from one entity to the next across the supply chain Supply Chain Management Software (video): Supply chain management software: ○ Supply chain planning systems: Model existing supply chain: Enable demand planning Optimize sourcing, manufacturing plans Establish inventory levels Identify transportation modes ○ Supply chain execution systems: Manage flow of products through distribution centers and warehouse Global supply chains and the internet: ○ Global supply chain issues: Greater geographical distances, time differences Participants from different countries Different performance standards Different legal requirements ○ Internet helps manage global complexities Warehouse management Transportation management  Logistics Outsourcing Demand-driven supply chains ○ Push-based model (build-to-stock) Earlier SCMsystems Schedules based on best guesses of demand ○ Pull-based model (demand-driven) Web-based Customer orders trigger events in the supply chain ○ The internet enables the move from sequential supply chains to concurrent supply chains Complex networks of suppliers can adjust immediately Business value of supply chain management systems: ○ Match supply to demand, reduce inventory levels, improve delivery service, speed product time to market, use assets more effectively (total supply chain costs can be 75 percent of the operating budget), increase sales What is customer relationship management (CRM)? (video): Customer relationship management: ○ Knowing the customer ○ In large businesses, too many customers and too many ways customers interact with firm ○ CRM systems Capture and integrate customer data from all over the organization Consolidate and analyze customer data Distribute customer information to various systems and customer touch points across enterprise Provide single enterprise view of customers  Customer relationship management software ○ Packages range from niche tools to large-scale enterprise applications ○ More comprehensive packages have modules for: Partner relationship management (PRM) Integrating lead generation, pricing, promotions, order configurations, and availability Tools to asses partners' performances Employee relationship management (ERM) Setting objectives, employee performance management, performance-based compensation, employee training ○ CRM packages typically include tools for: Sales force automation (SFA) Sales prospect and contact information Sales quote generation capabilities Customer service Assigning and managing customer service requests Web-based self-service capabilities Marketing Capturing prospect and customer data, scheduling and tracking direct-marketing mailings or e-mail Cross-selling  Operational and analytical CRM: ○ Operational CRM: customer-facing applications, sales force automation call center and customer service support, marketing automation ○ Analytical CRM: based on data warehouses populated by operational CRM systems and customer touchpoints, analyzes customer data (OLAP, data mining, etc.), customer lifetime value (CLTV) Enterprise application challenges: ○ Expensive to purchase and implement:  Many projects experience cost overruns Long development times ○ Technology changes ○ Business process changes ○ Organizational learning changes ○ Switching costs, dependence on software vendors ○ Data standardization, management, cleansing Next-generation enterprise applications ○ Enterprise solutions/suites Make applications more flexible, web-enabled, and integrated with other systems ○ Cloud-based versions ○ Functionality for mobile platform ○ Versions are also available for small and ○ Social CRM Incorporating social networking technologies Monitor social media activity; social media analytics Manage social and web-based campaigns ○ Business intelligence Inclusion of BI with enterprise applications Flexible reporting, ad hoc analysis, "what-if" scenarios, digital dashboards, data visualization, AI machine learning Week 5: A database hierarchy is a way of organizing data in a structured manner so it can be easily accessed, managed, and updated Bit: a bit is the smallest unit of data in a computer, representing either 0 or 1 Byte: a collection of 8 bits, which can represent a single character or number in a computer system Field: a field is a specific piece of data within a record, such as a name, address, or phone number Record: a collection of related fields that describe a single entity, such as a person, product, or event Table: a collection of related records Database: a database is a collection of interrelated tables and other data structures that store information File organization terms and concepts: ○ Database: group of related files ○ file: group of records of same type ○ Record: group of related fields ○ Field: group of characters as word(s) or number(s) ○ Entity: person, place, thing on which we store information ○ Attribute: each characteristic, or quality, describing entity  Problems with the traditional file environment: data redundancy, data inconsistency, program-data dependence, lack of flexibility, poor security, lack of data sharing and availability Data redundancy occurs when the same data is duplicated in multiple files Database: serves many applications by centralizing data and controlling redundant data Database management system (DBMS): ○ Interfaces between applications and physical data files ○ Separates logical and physical views of data ○ Solves problems of traditional file environment Benefits: ○ Controls redundancy, eliminates inconsistency, uncouples programs and data, enables managing data and data security centrally Common type: relation database ○ It is comprised of tables that can be resembled in different ways Represent table as two-dimensional tables Each table contains data on an entity and attributes Table structure: ○ Rows (tuples): records for different entities ○ Fields (columns): represents attribute for entity ○ Key field: field used to identity each record uniquely ○ Primary key: field in a table used for key fields ○ Foreign key: primary key used in the second table as a look-up field to identify records from the original table  Operations of a relational DBMS: ○ 3 basic operations are used to develop useful sets of data: Select: creates a subset of data of all records that meet states criteria Join: combines relational tables to provide more information Project: creates a subset of columns in the table, containing only the information specified Supplier table has 6 fields Use select to select subset of record in a table Capabilities of database management systems: data definition, data dictionary, querying and reporting (data manipulation language, structured query language: SQL), many DBMS have report generation capabilities for creating polished reports (Microsoft Access)  Designing databases: ○ Conceptual design vs physical design ○ Normalization Streamlining complex groupings of data to minimize redundant data elements and awkward many-to-many relationships ○ Referential integrity: Rules used by RDBMS to ensure relationships between tables remain consistent ○ Entity-relationship diagram ○ A correct data model is essential for a system serving the business well  A database stores wind data from various airports Airport code is the best candidate as a primary key for the Airport table Non-relational databases: "no SQL" ○ More flexible data model, data sets stores across distributed machines, easier to scale, handle large volumes of unstructured Cloud databases: ○ Appeal to start-ups, smaller business ○ Amazon Relational Database Service, Microsoft SQL Azure ○ Private clouds Distributed databases: ○ Stored in multiple physical locations ○ Example: Google Spanner Blockchain: ○ Distributed ledgers in a peer-to-peer distributed database ○ Maintains a growing list of records and transactions shared by all ○ Encryption is used to identify participants and transactions ○ Used for financial transactions, supply chain, and medical records ○ Foundation of cryptocurrencies A distributed database: is a database stores in multiple physical locations Big data: massive sets of unstructured/semi-structured data from web traffic, social media, sensors, and so on ○ Big data characteristics: (3 Vs: volume, variety, velocity) Too large for typical DBMS Requires new tools and technologies to manage and analyze It can reveal more patterns, relationships, and anomalies Business intelligence infrastructure ○ An array of tools for obtaining information from separate systems and big data: data warehouse, data mart, Hadoop, in-memory computing, analytical platforms  Distributed parallel processing of big data across inexpensive computers ○ Key services: Hadoop Distributed File System: data storage MapReduce: breaks data into clusters for work Hbase: No SQL database ○ Used by Yahoo, NextBio In-memory computing: ○ Used in big data analysis ○ Uses computer main memory (RAM) for data storage to avoid delays in retrieving data from disk storage ○ Can reduce hours/days of processing to seconds ○ Requires optimized hardware Analytic platforms: ○ High-speed platforms using both relational and non-relational tools optimized for large datasets Which of the following technologies would you use to analyze the social media data collected by a major online retailer?: Hadoop Tools for consolidating, analyzing, and providing access to vast amounts of data to make better business decisions; ○ Multidimensional data analysis (OLAP) ○ Data mining ○ Text mining ○ Web mining Online Analytical Processing (OLAP) ○ Supports multidimensional data analysis: Viewing data using multiple dimensions, each aspect of information (product, pricing, region, time) is a different dimension ○ Enables rapid, online answers to ad hoc queries  ○ Ex. How many washers sold in the East in June compared to the sales forecast? Data mining: ○ Finds hidden patterns and relationships and datasets Ex. Customer buying patterns ○ Types of information obtainable from data mining; Associations, sequences, classification, clustering, forecasting Text mining and web mining: ○ Text mining: Extracts key elements from large unstructured text data sets Sentiment analysis software ○ Web mining: Discovery and analysis of useful patterns and information from web Web content mining Web structure mining Web usage mining Text mining tools can analyze... Databases and the web: ○ Many companies use the web to make some internal databases available to customers or partners ○ Typical configuration includes: Web server, application/middleware/scripts, database server (hosting DBMS) ○ Advantages of using the web for database access: Easy of use of browser software, web interface requires few or no changes to database, inexpensive to add a web interface to the system Data governance: ○ Policies and procedures to manage data as an organizational resource ○ Establishes rules for sharing, disseminating, acquiring, standardizing, classifying and inventorying information ○ Ex. Firm information policy that specifies that only selected members of a particular department can view certain information Data quality assurance: ○ Before a new database is in place, a firm must  Identify and connect faulty data Establish better routines for editing data once the database in operation ○ Data quality audit ○ Data cleansing Week 6: Decision making video: ○ Video tells us how the decision making process works, some parts you know and some you don't know (unstructured) Types of decisions: ○ Unstructured: the decision maker must provide judgement, evaluation, and insight to solve a problem ○ Structured: repetitive and routine, involve definite procedure for handling so they do not have to be treated each time as new ○ Semi-structured: only part of the problem has a clear-cut answer provided by the accepted procedure Decision making process: ○ Senior manager: make many unstructured decisions ○ Middle managers: make more structured decisions but these may include unstructured components ○ Operational managers and rank-and-file employees: make more structured decisions Decision-making process: ○ Intelligence: discovering, identifying, and understanding the problems occurring in the organization ○ Design: identifying and exploring solutions to the problem ○ Choice: choosing among solution alternatives ○ Implementation: making chosen alternative work and continuing to monitor how well a solution is working If you can follow a definite procedure to make a business decision, you are making a structured decision Which of the following is not one of Simon's four stages of decision making? Prediction  Managerial roles: ○ Classical model of management: planning, organizing, coordinating, deciding, and controlling ○ Contemporary behavioural models: actual behaviour of managers appears to be less systematic, more informal, less reflective, more reactive, and less well organized Mintzberg's 10 managerial roles: ○ Interpersonal roles: figurehead, leader, liaison ○ Informational roles: nerve center, disseminator, spokesperson ○ Decisional roles: entrepreneur, disturbance handler, resource allocator, negotiator Real-world decision making: three main reasons why investments in IT do not always product positive results: ○ Information quality: high-quality information ○ Management filters: managers have selective attention and have variety of biases that reject information that does not conform to prior conceptions ○ Organizational inertia and politics: strong forces within organizations resist making decisions calling for major change High-velocity: made possible through computer algorithms precisely defining steps for a highly structured decisions: ○ Humans are taken out of decisions ○ Require safeguards to ensure proper operation and regulation ○ E.g., high-speed computer trading programs Business intelligence: ○ Business intelligence Infrastructure for collecting, storing, analyzing data produced by business Databases, data warehouses, data marts, Hadoop, analytic platforms ○ Business analytics Tools and techniques for analyzing data OLAP, statistics, models, data mining ○ Business intelligence vendors Create business intelligence and analytics purchased by firms The business intelligence environment: ○ 6 elements in the business intelligence environment: Data from the business environment Business intelligence infrastructure Business analytics toolset Managerial users and methods Delivery platform—MI.S, DS.S, E.SS User interface ○ Data visualization tools Business intelligence and analytics capabilities: ○ Production reports, parameterized reports, dashboards/scorecards, ad hoc query/search/report creation, drill down, forecasts/scenarios/models  Which of the following statements best describes the term business intelligence? Infrastructure for warehousing, reporting, and analyzing business data Predictive analytics:  ○ Uses a variety of data and techniques to predict future trends and behaviour patterns: statistical analysis, data mining, historical data, assumptions ○ Incorporated into numerous BI applications: credit scoring, predicting responses to direct marketing campaigns Big data analytics: ○ Big data: massive datasets collected from social media, online and in-store customer data, and so on ○ Help create real-time, personalized shopping experiences for major online retailers ○ Examplar: smart cities Public records, sensors/location data from smartphones, evaluating the effect of one service change on the system Operational intelligence and analytics: ○ Operational intelligence: business activity monitoring ○ Collection and use of data generated by sensors ○ Internet of things (IoT) Creating huge streams of data from web activities, sensors, and other monitoring devices ○ Software for operational intelligence and analytics enable companies to analyze their big data Location analytics and geographic information systems: ○ Location analytics: ability to gain business insight from the location (geographic) component of data ○ Mobile phones ○ Sensors, scanning devices ○ Map data ○ Geographic information systems (GIS): ties location-related data to maps, example: For helping local governments calculate response times to disaster Decisions regarding managing and monitoring day-to-day business activities are referred to as operational intelligence Decisional support for operational and middle management: ○ Charged with monitoring key aspects of business ○ Many decisions fairly structured ○ Middle managers typically use MIS: increasingly online (can be queried interactively), exception reports Support for semi-structured decisions: ○ Decision-support systems: support for semi-structured decisions  ○ Use mathematical or analytical models ○ Allow varied types of analysis: what-if analysis, sensitivity analysis, backward sensitivity analysis, multidimensional analysis/OLAP ○ Example: pivot tables Decision support for senior management: ○ Executive support systems (ESS) Help executives focus on important performance information Data for ESS: internal data from enterprise application, external data such as financial market databases Decision support for senior management: balanced scoreboards ○ Balanced scorecard method: Measures outcomes on four dimensions: financial, business process, customer, learning and growth Key performance indicators (KPIs) measure each dimension  Telecommunications: the transmission of information, such as words, sounds, or images, usually over great distances in the form of electromagnetic signals ○ Involves networks (telephone, TV, computer, etc.) Networking and communication trends: ○ Convergence: telephone networks and computer networks converge into a single digital network using internet standards ○ Broadband: the majority of US households have high speed broadband ○ Broadband wireless: voice/data communication are increasingly taking place over broadband wireless platforms What is a computer network: ○ Two or more connected computers ○ Major components in simple network Client and server computers Network interfaces (NICs) Connection medium, network operating system (NQS) Hubs, switches, routers ○ Software-defined networking (SDN) Functions of switches and routers managed by a central program  Client/server computing is a: distributed computing model with clients linked to a server-run network Networks in large companies: large number of local area networks (LANs) linked to firmwide corporate networks, various powerful servers (website, corporate intranet, extranet, backend systems), mobile wireless LANs (Wi-Fi networks), videoconferencing system, telephone network & wireless cell phones Key digital networking technologies: ○ Client/server computing Distributed computing model, clients linked through a network controlled by a network server computer, the server sets rules of communication for the network and provides clients with an address, largely replaced centralized mainframe computing, the internet: largest implementation of client/server computing ○ Packet switching: Method of slicing digital messages into parcels (packets):, previous circuit-switched networks required the assembly of a complete point-to-point circuit, packet switching is a more efficient use of the network's communications capacity TCP/IP and connectivity: ○ Protocols: rules that govern the transmission of information between two points ○ Transmission control protocol/internet protocol (TCP/IP) A common worldwide standard that is the basis for the internet ○ Department of defense reference model for TCP/IP  Which of the following is not a characteristic of packet switching? Packet switching requires point-to-point circuits Types of networks: ○ Digital versus analog Modem: translates digital signals into analog form (and vice versa) ○ Types of networks: Local area networks-LAN (ethernet, client/server vs. peer-to-peer), wide area networks (WAN), metropolitan area networks (MAN), campus area networks (CAN) Transmission media and transmission speed: ○ Physical transmission media: twisted pair wire (CAT5 and CAT6), coaxial cable, fiber optics cable, wireless transmission media and devices ○ Satellites ○ Cellular systems ○ Bandwidth: transmission speed (bits per second (bps), Hertz, Bandwidth What is the internet? ○ Internet: world's most extensive network, internet service providers (ISPs), provide connections ○ Types of internet connections: dial-up (56.6 Kbps), digital subscriber line (DSL/FIOS): 385 Kbps - 100 + Mbps, cable internet connections: 20 - 100 Mbps, satellite, T1/T3 lines: 1.54 Mbps/45 Mbps  Internet architecture and governance: ○ Network service providers (own trunk line: high-speed backbone networks), regional telephone and cable TV companies (provide regional and local access), professional organizations and government bodies establish internet standards (IAB, ICANN, W3C) The future internet: IPV 6 and internet 2 ○ IPv6: New addressing scheme for IP numbers Will provide more than a quadrillion new addresses Not compatible with earlier Ipv4 addressing ○ Internet2: Advanced networking consortium Universities, businesses, government agencies, and other institutions Developed high-capacity 100 Gbps testing network Testing leading-edge new technologies for the internet Internet services and communication tools ○ Internet services: e-mail, chatting and instant messaging, newsgroups, telnet, file transfer protocol (FTP), world wide web ○ Voice over IP (VoIP): digital voice communication using IP, packet switching ○ Unified communications: communications systems that integrate voice, data, e-mail, conferencing ○ Virtual private network (VPN): secure, encrypted, private network run over internet Which of the following internet services enables logging on to one computer system and doing work on another? Telnet  The web: ○ Hypertext: hypertext markup language (HTML), hypertext transfer protocol (HTTP), uniform resource locator (URL) ○ Web servers: software for locating and managing web pages Searching for information on the web: search engines, mobile search, semantic search and predictive search, visual search, intelligent agent shopping bots, search engine marketing, search engine optimization (SEO) Sharing information on the web: blogs and microblogs, RSS, wikis, social networking The future web: more tools to make sense of trillions of pages on the internet, pervasive web, internet of things (IoT), app internet, increased cloud computing and SaaS, ubiquitous mobile connectivity, greater seamlessness of web as a whole Which of the following can be used to help a website achieve a higher ranking with the major search engines? SEO Cellular systems: ○ Competing standards CDMA: United States only Verizon, Sprint  GCM: the rest of the world AT&T, T-Mobile ○ Third-generation (3G) networks: 144 Kbps Suitable for e-mail access, web browsing Wireless computer networks and internet access: ○ Bluetooth: links up to 8 devices in a 10-meter area using low-power, radio-based communication, useful for personal networking (PANs) ○ Wi-Fi (802.11): set of standards: 802.11, used for wireless internet access, use access points: device with radio receiver/transmitter for connecting wireless devices to wired LAN ○ Hotspots: one or more access points in public place to provide maximum wireless coverage for a specific area, weak security features ○ WiMAX (802.16): wireless access range of 31 miles, require WiMAX antennas RFID and wireless sensory networks: ○ Radio frequency identification (RFID) Uses tiny tags with microchips containing data about an item and its location Common uses: automated toll-collection, tracking goods in a supply chain Reduction in cost of tags making RFID viable for many firms  Near field communication (NFC) ○ RFID-related technology that uses very short-range wireless connectivity standard ○ Used by tap-and-go services such as apple pay, google pay Wireless sensor networks (WSNs) ○ Networks of hundreds or thousands or thousands of interconnected wireless devices ○ Devices have built/in processing, storage, and radio frequency sensors and antennas ○ Require low-power, long-lasting batteries and the ability to endure in the field without maintenance ○ Major sources of big data and fueling the internet of things E-Commerce Today - E-commerce: Use of the Internet and Web to transact business - Began in 1995 and grew exponentially; still stable even in recession Companies that survived the dot-com bubble now thrive ○ Learned what parts can be done online and what can be done using e-commerce - - The new e-commerce: social, mobile, local - Move from desktop and smartphone - Development was so fast An entire business can be operated online without physical presence ○ Transformed business models - Any form of business done using electronic mean is an Electronic Business Why E-commerce is Different Ubiquity (Accessible in Different Ways) ○ Marketplace is virtual Transaction costs reduced ▪ Don't need to spend money on transportation No more spending time travelling to different stores and finding the best process ▪ ○ - Global reach ○ Transactions cross cultural and national boundaries - Universal standards ○ One set of technology standards: Internet standards ○ All users have the same experience - Richness ○ Supports video, audio, and text messages - Interactivity ○ Betters customer experience - Information density ○ Greater price and cost transparency Enables price discrimination ▪ Poorer people ----> Lower prices ▪ Richer people ---> More expensive ○ - Personalization/customization ○ Technology permits modification of messages, goods - Social technology ○ Promotes user content generation and social networking - Key Concepts in E-commerce - Internet and digital markets have charge business strategies Information asymmetry reduced ○ Thins are more transparent and pricing is more competitive and affordable - - Menu costs, search, and transaction costs reduced - Dynamic pricing enables E-commerce: Digital Markets, Digital Goods October 24, 2024 8:10 AM Lecture 8 Page 52 - Dynamic pricing enables - Switching costs - Delayed gratification Disintermediation ○ How many parties involved to get a product to a consumer ○ Reduces the price ○ Visual of this is inserted underneath - Digital Goods - Delivered over a digital network - The cost of producing the first unit is almost the entire cost of the product - Lower cost of delivery over the Internet - Marketing costs remain the same - Industries with digital goods are undergoing revolutionary changes Types of E-commerce - Business-to-consumer (B2C) - Business-to-Business (B2B) - Consumer-to-consumer (C2C) By platform: ○ Mobile commerce (m-commerce) - Lecture 8 Page 53 Screen clipping taken: 2024-10-31 8:57 AM Screen clipping taken: 2024-10-31 8:57 AM How Has E-commerce Transformed Marketing? - Internet provides new ways to identify and communicates with customers - Long tail marketing Marketing and advertising formats ○ Search ○ Display ads ○ Video and rich media ○ Email - Behavioural targeting ○ Tracking online behaviour of individuals ○ On individual websites/apps and across advertising networks ○ Specialization and customization - Programmatic ad buying Things are more optimized ▪ Focused people who would prefer what is being advertised ○ - Native advertising ○ Natural/organic advertising Ex. There are specific reasons why certain apps are used so related advertisements are seen ▪ LinkedIn usage ---> Training advertisements ○ - Website Visitor Tracking Lecture 8 Page 54 Social E-commerce and Social Network Marketing - Social media is one of he fastest growing branding and marketing methods - Social e-commerce based on digital social graph Features ○ Newsfeed ○ Timelines Social sign-on - Lecture 8 Page 55 ○ Social sign-on ○ Collaborative shopping ○ Network notification ○ Social search (recommendation) Social network marketing ○ Seeks to leverage individuals' influence over others ○ Targeting a social network of people sharing interests and advice ○ Facebook's "Like" button ○ Social networks have huge audiences - - Social shopping sites - Wisdom of crowds - Crowdsourcing How has E-commerce affected B2B transactions? US B2B trade in 2020 estimated at $14.5 trillion ○ B2B e-commerce: $6.7 trillion - - Internet and networking automate procurement Variety of Internet-enabled technologies in B2B ○ Electronic data interchange (EDI) ○ Private industrial networks (private exchanges) ○ Net marketplaces ○ Exchanges - Electronic Data Interchange (EDI) - Computer-to-computer exchange of standard transactions EDI standards: ○ Define the structure and information fields of electronic documents - More companies are moving toward web enabled private networks: ○ Allow them to link to a wider variety of firms than EDI allows ○ Enable sharing of a wider range of information - Screen clipping taken: 2024-10-31 9:37 AM New Ways of B2B Buying and Selling Private industrial networks ○ Private exchanges ○ Large firms using a secure website to link to suppliers and partners - Net marketplaces (e-hubs) ○ Single digital marketplace for many buyers and sellers ○ May focuses on direct or indirect goods May be vertical or horizontal marketplaces ▪ Vertical ---> Multiple industries ▪ Horizontal ---> Single industry ○ - Exchanges Independently owned third-party Net marketplaces for spot purchasing - Lecture 8 Page 56 ○ Independently owned third-party Net marketplaces for spot purchasing ○ Unregulated ○ Ex. Kijiji Lecture 8 Page 57 Location-Based Services and Applications - Used by 74% of smartphone owners - Based in GPS map services Geosocial services ○ Where friends are - Geo advertising ○ What shops are nearby - Geo-information services ○ Price of the house you are passing - Other Mobile Commerce Services Financial account management apps: ○ Banks, credit card companies - Mobile advertising market: ○ Google and Facebook are the largets markets ○ Ads embedded in games, videos, and mobile apps - - Over 45% of top retailers have m-commerce websites - Virtually all large traditional and online retailers have m-commerce apps Mobile App Payment Systems Three main types: Near Field Communication (NFC) ▪ Apple Pay, Google Pay, Samsung Pay ○ QR Code ▪ Starbucks, Walmart, Target ○ Peer-to-peer (P2P) payment systems ▪ Venmo, Zelle ○ - Issues to Address for E-commerce Presence Most important Management challenges ○ Understanding of business objectives ○ Choosing the right technology to achieve those objectives - Develop an e-commerce presence map Four areas: ▪ Websites ○  - Lecture 8 Page 58 ▪ Websites ▪ Email ▪ Social media ▪ Offline media Develop a timeline: MILESTONES ○ Breaking a project into discrete phases ○ Why are systems vulnerable: ○ Security: Policies, procedures, and technical measures used to prevent unauthorized access, alteration, theft, or physical damage to information systems ○ Controls: Methods, policies, and organizational procedures that ensure: the safety of an organization's assets, accuracy and reliability of its accounting records, operational adherence to management standards ○ Accessibility of networks, hardware problems (breakdowns, configuration errors, damage from improper use of crime), software problems (programming errors, installation errors, unauthorized changes), disasters, use of networks/computers outside of firm's control, loss and theft of portable devices Internet vulnerabilities: ○ Network open to anyone; size means abuses can have wide impact ○ Corporate networks linked to the internet are more vulnerable ○ Email, IM, and P2P increase vulnerability Email: attachments with malicious software; can be used to transmit trade secrets, confidential data IM: back door into a secure network P2P: can transmit malicious software, expose corporate data Wireless security challenges: ○ Bluetooth and Wi-Fi networks susceptible to hacking: Radiofrequency bands are easy to scan SSIDs (service set identifiers) ○ Wardriving: Eavesdroppers drive by buildings and try to detect SSIDs and gain access to network and resources  Once the access point is breached, an intruder can gain access to network drives and files ○ Rogue access points All of the following are security challenges that threaten corporate systems in a client/server environment expect: procedural disruption Malicious software: viruses, worms, trojan horses, and spyware ○ Malware (malicious software) ○ Viruses ○ Worms ○ Worms and viruses spread by Downloads and drive-by downloads Email, IM attachments ○ Mobile device malware ○ Social network malware ○ Trojan horse ○ SQL injection attacks ○ Ransomware ○ Spyware: Key loggers Other types ○ Reset browser home pages ○ Redirect search requests ○ Slow computer performance by taking up memory Hackers and computer crime: ○ Hackers vs. Crackers ○ Activities include: System intrusion System damage Cybervandalism ○ Intentional disruption, defacement, destruction of website or corporate information system ○ Spoofing and sniffing ○ Denial-of-service attacks (DoS) ○ Distributed denial-of-service attacks (DDoS) ○ Botnets ○ Computer crime: any violations of criminal law that involve a knowledge of computer technology for their perpetration, investigation, or prosecution ○ Computers may be target of crime ○ Computer may be instrument of crime ○ Identity theft: Phishing Evil twins (rogue wireless networks) Pharming (bogus web page) ○ Click fraud  ○ Cyberterrorism ○ Cyberwarfare Which of the following is not a type of identity theft: cyberterrorism Internal threats: employees ○ Security threats often originate inside an organization ○ Inside knowledge ○ Sloppy security procedures User lack of knowledge ○ Social engineering ○ Both end users and information systems specialists are sources or risk Software vulnerability: ○ Commercial software contains flaws that create security vulnerabilities Bugs (program code defects) Zero defects cannot be achieved Flaws can open networks to intruders ○ Zero-day vulnerabilities ○ Patches and patch management: repair software flaws ○ Vulnerabilities in microprocessor design: Spectre, Meltdown What is the business value of security and control: ○ Failed computer systems can lead to significant or total loss of business function ○ Firms now are more vulnerable than ever Confidential personal and financial data Trade secrets, new products, strategies ○ A security breach may cut into a firm ○ S market value almost immediately ○ Inadequate security and controls also bring forth issues of liability Legal and regulatory requirements for electronic records management: ○ HIPAA: medical security and privacy rules and procedures ○ Gramm-Leach-Bliley Act: requires financial institutions to ensure the security and confidentiality of customer data ○ Sarbanes-Oxley Act: imposes responsibility on companies and their management to safeguard the accuracy and integrity of financial information that is used internally and released externally Electronic evidence and computer forensics: ○ Electronic evidence: Evidence for white collar crimes often in digital form Proper control of data can save time and money when responding to legal discovery request ○ Computer forensics: Scientific collection, examination, authentication, preservation, and analysis of data from computer storage media for use as evidence in court of law Recovery of ambient data Computer forensics tasks include all of the following except: collecting physical evidence of the computer Information systems controls: ○ May be automated or manual ○ General controls: Govern design, security, and use of computer programs and security of data files Software, hardware, computer operations, data security, system development, and administrative controls ○ Application controls Controls unique to each computerized application Input controls, processing controls, output controls Risk asssessment: ○ Determines level of risk of firm if specific activity or process is not properly controlled Types of threat  Probability of occurrence during year Potential losses, value of threat Expected annual loss Security policy: ○ Ranks information risks, identifies security goals and mechanisms for achieving these goals ○ Drives other policies ○ Acceptable use policy (AUP) ○ Defines acceptable uses of firm's information resources and computing equipment ○ Identity management: Identifying valid users Controlling access Disaster recovery planning and business continuity planning ○ Disaster recovery planning Devises plans for restoration of disrupted services ○ Business continuity planning Focuses on restoring business operations after disaster ○ Both types of plans needed to identify firm's most critical systems Business impact analysis to determine impact of an outage Management must determine which systems restored first The role of auditing ○ Information systems audit: examines firm's overall security environment as well as controls governing individual information systems ○ Security audits: review technologies, procedures, documentation, training, and personnel ○ List and rank control weaknesses and the probability of occurrence ○ Assess financial and organizational impact of each threat  An analysis of an information system that rates the likelihood of a security incident occurring and its cost is called: risk assessment Tools and technologies for safeguarding information systems: ○ Identity management software: Automates keeping track of all users and privileges Authenticates users, protecting identities, controlling access ○ Authentication: Password systems Tokens Smart cards Biometric authentication Two-factor authentication ○ Firewall: combination of hardware and software that prevents unauthorized users from accessing private networks Packet filtering Stateful inspection Network address translation (NAT) Application proxy filtering Intrusion detection system ○ Monitors hot spots on corporate networks to detect and deter intruders Antimalware and antispyware software ○ Checks computers for the presence of malware and can often eliminate it as well ○ Requires continual updating Unified threat management (UIM) systems Securing wireless networks: ○ WEP security Static encryption keys are relatively easy to crack Improved if used in conjunction with VPN ○ WPA2 specification Replaces WEP with stronger standards Continually changing, longer encryption keys ○ WPA3 is the most recent specification, with even stronger encryption  Encryption and public key infrastructure ○ Encryption: Transforming text or data into cipher text that unintended recipients cannot read Two methods for encryption on networks Secure Sockets Layer (SSL) and successor Transport Layer Security (STLS) Secure Hypertext Transfer Protocol (S-HTTP) ○ Two methods of encryption of messages: Symmetric key encryption Sender and receiver use single, shard key Public key encryption Uses two mathematically related keys: public key and private key Sender encrypts message with recipient's public key Recipient decrypts with private key Digital certificate ○ Data files used to establish the identity of users and electronic assets ○ Uses a trusted third-part certification authority to validate a user's identity Public key infrastructure (PKI) use of public key cryptography working with certificate authority Widely used in e-commerce Which encryption method sends a single encryption key to the receiver so both sender and receiver share the same key?: symmetric key encryption Securing transactions with blockchain: ○ Secure transaction database, encryption used to verify users and transactions, decentralized, records cannot be changed, blockchain has some vulnerabilities requiring attention to security and controls Ensuring system availability ○ Online transaction processing requires 100% availability ○ Fault-tolerant computer systems Contain redundant hardware, software, and power supply components that create and environment that provides continuous, uninterrupted service ○ Security outsourcing Managing security service providers (MSSP) Achieving digital resiliency ○ Deals with how to maintain and increase resilience of organization and its business processes  ○ Calls attention to managerial and organizational issues in addition to IT infrastructure ○ Single weak link can cause and outage if resiliency has not been explicitly designed in, measures, and tested Security issues for cloud computing and the mobile digital platform: ○ Responsibility for security resides with the company owning the data ○ Firms must ensure providers provide adequate protection: Where data are stored Meeting corporate requirements, legal privacy laws Segregation of data from other clients Audits and security certifications Service level agreements (SLAs) ○ Guidelines for the use of platforms and applications ○ Mobile device management tools Authorization Inventory records Control updates Lockdown/erase lost devices Encryption Software for segregating corporate data on devices Ensuring software quality ○ Software metrics: objective assessments of system in form of quantified measurements Number of transactions Online response time Payroll checks printed per hour Known bugs per hundred lines of code ○ Early and regular testing ○ Walkthrough: review of specification or design document by small group of qualified people ○ Debugging: process by which errors are eliminated i What are the current trends in computer hardware platform? The mobile digital platform ○ Smartphones ○ Tablet computers Digital e-book readers and apps ▪ Ex., Kindle ○ ○ Wearable devices Not just for personal use Can be used for business □ Apps are being developed to adapt to mobile profiles ▪ ○ - Consumerization of IT and BYPD (Bring Your Own Device) Forces businesses and IT departments to rethink how IT equipment and services are acquired and managed ○ IT is no longer solely for personal use ▪ Whether employees should use their devices during business hours ○ Companies do not know what you are doing on your personal device ▪ Needs more micro-managing ○ ○ Risk in security - Quantum computing ○ Uses quantum physics to represent and operate on data ○ Dramatic increases in computing speed - Virtualization ○ How to optimize your physical resources ○ Allows single physical resource to act as multiple resources Enables multiple physical resources (such as storage devices) to appear as a single logical resource ○ ○ Reduces hardware and power expenditures ○ Facilitates hardware centralization - Cloud computing: On-demand computing services obtained over a network. Infrastructure as a service (IaaS) It provides only the physical infrastructure □ Ex. Data systems ▪ ○ Software as a service (SaaS) ▪ Ex., Google G-Suite (Google Drive, Gmail) ○ Platform as a service (PaaS) Where there is a platform to design software □ Ex. Oracle ▪ ○ - - A cloud can be public or private Minimizes IT investments ○ Drawbacks: Concerns about security, reliability ○ Solution: Hybrid cloud computing model - Edge computing Servers at the edge of the network, near the source of the data Each device does not have to send all their data to their data centre □ It is sent to other devices that aggregate the data then send it in ▪ ○ - Emerging Technologies & AI November 14, 2024 7:41 AM Lecture 10 Page 93 It is sent to other devices that aggregate the data then send it in packages □ Reduces latency and network traffic More layers can be introduced if the distance between the edge and cloud is far ▪ ○ Practices and technologies for manufacturing, using, and disposing of computing and networking hardware ○ Reducing power consumption ○ Green data centers - High performance, power-saving processors ○ Multicore processors ○ Power-efficient microprocessors - Screen clipping taken: 2024-11-14 8:17 AM Lecture 10 Page 94 Screen clipping taken: 2024-11-14 8:17 AM What are the current computer software platforms and trends? Open-source software ○ Produced by a community of programmers ○ Ex., Apache web server, Mozilla Firefox browser, OpenOffice, Linus ○ No payment ○ For development - Software for the web ○ Java Virtual Machine ○ Web browsers ○ HTML and HTMLS ○ Ruby and Python - - Markup language: A language that uses tags to annotate the information in a document - Hypertext Markup Language (HTML): The language used to create or build a web page Tag: The synthetic element in a markup language that annotates the information in a document - Web services XML: Extensible Markup Language ▪ More powerful and flexible than HTML, as it describes a document's meaning ▪ Tagging allows computers to process data automatically ○ - Lecture 10 Page 95 SOA: Service-oriented architecture Set of self-contained services that communicate with one another to create a working software application ○ ○ Software developers reuse these services in other applications as needed - Screen clipping taken: 2024-11-14 8:52 AM The external sources for software ○ Software packages and enterprise software ○ Software outsourcing Cloud-based software services and tools (salesforce.com) ▪ Service Level Agreements (SLAs) \: formal agreements with service providers ○ - - Mashups and apps Screen clipping taken: 2024-11-14 8:56 AM What is Artificial Intelligence (AI)? Lecture 10 Page 96 What is Artificial Intelligence (AI)? Grand vision ○ Computer hardware and software systems that are as "smart" as humans ○ So far, this vision has eluded computer programmers and scientists - Narrower, more realistic vision Systems that take data inputs, process them and produce outputs, and can perform complex tasks difficult or impossible for human to perform. ○ - Major Types of AI - Expert systems - Machine learning - Neural networks and deep learning networks - Genetic algorithms - Natural language processing - Computer vision - Robotics Expert Systems - Capture tacit knowledge in very specific and limited domain of human expertise - Capture knowledge as a set of rules Typically perform limited tasks ○ Diagnosing malfunctioning machine ○ Determining whether to grant credit for loan - - Used for discrete, highly structured decision-making - Knowledge base: Set of hundreds or thousands of rules Interference engine: Strategy used to search knowledge base ○ Forward chaining Backward chaining ▪ Give the system the optimal solution and ask for the rules/inputs ○ - Screen clipping taken: 2024-11-14 9:29 AM Machine Learning - Focuses on recognizing patterns in very large data sets - Used by neural networks, deep learning networks, and genetic algorithms Contemporary example ○ Facebook ad display Netflix recommender system - Lecture 10 Page 97 ○ Netflix recommender system Supervised learning System "trained" by providing examples of desired inputs and outputs identified by humans in advanced ○ ○ One technique used to develop autonomous vehicles - Unsupervised learning Same procedures as used with supervised learning, but human do not provide example ○ ○ "Cat Paper" - Neural Networks Find patterns and relationships in massive amounts of data too complicated for humans to analyze - "Learn" patterns by searching for relationships, building models, and correcting over and over again - Humans "train" network by feeding it data inputs for which outputs are known, to help neural network learn solution by example from human experts - Used in medicine, science, and business for problems in pattern classification, prediction, financial analysis, and control and optimization - Deep learning neural networks More complex, with many layers of transformations of input data to produce target output ○ Used almost exclusively for pattern detection on unlabeled data (unsupervised learning) ○ ○ Some believe these come closest to "grand vision" of AI - Screen clipping taken: 2024-11-14 9:42 AM Lecture 10 Page 98 Screen clipping taken: 2024-11-14 9:43 AM Natural Language Processing - Software that can process voice or text command using natural human language - Typically based on machine learning, including deep learning Examples: Google search; spam filtering systems; text mining sentiment analysis; customer call center interactions - Computer Vision Systems Emulate human visual system to view and extract information from real-world images Examples: ▪ Facebook's DeepFace can identify friends in photos ▪ Autonomous signs, people, and other vehicles ○ - Robotics Design, construction, and operation of movable machines that can substitute for humans, along with computer systems for their control, sensory feedback, and information processing - Programmed to perform specific and detailed actions in limited domains: ○ Robots spray paint autos and assemble certain parts Used in dangerous situations like bomb disposal or delivering medial supplies to coronavirus-contaminated locations ○ ○ Surgical robots are expanding their capabilities -  Intelligent Agents - Work without direct human intervention to carry out repetitive, predictable tasks Use limited build-in or learned knowledge base ○ Some are capable of self-adjustment (e.g., Siri) - Agent-based modeling applications: Model behaviour of consumers, stock markets, and supply chains; used to predict spread of epidemics ○ - Lecture 10 Page 99 Screen clipping taken: 2024-11-14 9:54 AM Lecture 10 Page 100 ○ THE VALUE WEB Copyright © 2022, 2020, 2018 Pearson Education, Inc. All Rights Reserved 17 SYNERGIES ▪ When output of some units are used as inputs to others, or organizations pool markets and expertise Example: Merger of Bank of NY and JP Morgan Chase Purchase of YouTube by Google Copyright © 2022, 2020, 2018 Pearson Education, Inc. All Rights Reserved 18 CORE COMPETENCIES Activity for which firm is world-class leader Relies on knowledge, experience, and sharing this across business units Example: Procter & Gamble’s intranet and directory of subject matter experts Copyright © 2022, 2020, 2018 Pearson Education, Inc. All Rights Reserved 19 NETWORK-BASED STRATEGIES Include use of: Network economics Virtual company model Business ecosystems Take advantage of firm’s abilities to network with one another Copyright © 2022, 2020, 2018 Pearson Education, Inc. All Rights Reserved 20 NETWORK ECONOMICS Marginal cost of adding new participant almost zero, with much greater marginal gain Value of community grows with size Value of software grows as installed customer base grows Compare to traditional economics and law of diminishing returns Copyright © 2022, 2020, 2018 Pearson Education, Inc. All Rights Reserved 21 VIRTUAL COMPANY MODEL Virtual company Uses networks to ally with other companies Creates and distributes products without being limited by traditional organizational boundaries or physical locations Example: Li & Fung Manages production, shipment of garments for major fashion companies Outsources all work to thousands of suppliers Copyright © 2022, 2020, 2018 Pearson Education, Inc. All Rights Reserved 22 BUSINESS ECOSYSTEMS AND PLATFORMS Industry sets of firms providing related services and products Platforms Microsoft, Facebook Keystone firms Niche firms Individual firms can consider how I T will help them become profitable niche players in larger ecosystems Copyright © 2022, 2020, 2018 Pearson Education, Inc. All Rights Reserved 23 AN ECOSYSTEM STRATEGIC MODEL Copyright © 2022, 2020, 2018 Pearson Education, Inc. All Rights Reserved 24 CHALLENGES POSED BY STRATEGIC INFORMATION SYSTEMS ▪ Sustaining competitive advantage o Competitors can retaliate and copy strategic systems o Systems may become tools for survival ▪ Aligning IT with business objectives o Performing strategic systems analysis ▪ Structure of industry ▪ Firm value chains Ethical, Social, and Political Issues Raised nu Information Systems Recent cases of failed ethical judgments in businesses ○ Volkswagen, AG, Wells Fargo, General Motors, Takata Corporation ○ In many, information systems are used to bury decisions from public scrutiny - Ethics Principles of right and wrong that individuals, acting as free moral agents, use to make choices to guide their behaviour ○ - Information systems raise new ethical questions because they create opportunities for: ○ Intense social change ○ Threatening existing distributions of power, money, rights, and obligations New kinds of crime ▪ We discussed this in the security chapter ○ - A Model for Thinking About Ethical, Social, and Political Issues - Society as a calm pond IT as a rock dropped in the pond, creating ripples of new situations not covered by old rules - Social and political institutions cannot respond overnight to these ripples: ○ Developing etiquette, expectations, and laws may take years Requires an understanding of ethics to make choices in legally gray areas ▪ Needs a transition period as old laws do not cover these gray areas ○ - Screen clipping taken: 2024-11-28 8:31 AM Key Technology Trends That Raise Ethical Issues Computing power doubles power every 18 minutes ○ MOORE'S LAW (WEEK 2?) - Data storage costs rapidly decline ○ Collection and storage of information is much cheaper More information you have, the more you can act upon them ▪ A source of ethical issues ○ - Data analysis advances ○ Extract knowledge from the information ○ Use advanced analytics ○ The more advanced these tools and algorithm are used provide more information - Networking advances ○ Now we have the large networking tool (INTERNET) ○ If there is an ethical problem in one place, it can be spread much easier Provides a broader access to information - Ethical and Social Issues in Information Systems November 28, 2024 7:50 AM Lecture 12 Page 132 ○ Provides a broader access to information Mobile device growth impact Can have access to information 24/7 ▪ Mobile phones ○ ○ Constantly collecting real-time data - Advances in Data Analysis Techniques Profiling Combining data from multiple sources to create dossiers of detailed information on individuals ○ - Nonobvious Relationship Awareness (NORA) Combining data from multiple sources to find obscure hidden connections that might help identify criminals or terrorists ○ - Ethical dilemma of these advances: ○ How much data collection is too much? ○ How regulated is the collection of information? - Basic Concepts Responsibility ○ Accepting the potential costs, duties, and obligations for decisions - Accountability ○ Mechanisms for identifying responsible parties - Liability ○ Permits individuals (and firms) to recover damages done to them - Due process ○ Laws are well-known and understood, with an ability to appeal to higher authorities - Five-step process for ethical analysis: - Identify and clearly describe the facts - Define the conflict or dilemma and identify the higher-order values involves - Identify the stakeholders - Identify the options that you can reasonably take - Identify the potential consequences of your option Not a simple process ○ Very complex and nuanced - There are ONLY optimal solutions ○ No BEST option - Candidate Ethical Principles Golden Rule ○ Do unto others as you would have them do unto you - Immanuel Kant's Categorical Imperative ○ If an action is not right for everyone to take, it is not right for anyone - Slippery Slope Rule If an action cannot be taken repeatedly, it is not right to take at all ▪ Ex. Skipping class once can cause skipping multiple classes ○ - Utilitarian Principle ○ Take the action the achieves the higher or greater value - Risk Aversion Principle ○ Take the action that produces the least harm or potential cost - Ethical "No Free Lunch" Rule Assume that virtually all tangible and intangible objects are owned by someone unless there is a specific declaration otherwise ▪ Ex. Finding money on the floor ○ - Professional Codes of Conduct Promulgated by associations of professions ○ American Medical Association ○ American Bar Association ○ Association for Computing Machinery - - Promised by professions to regulate themselves in the general interest of society Real-World Ethical Dilemmas One set of interests pitted against another Examples: Monitoring employees: Right of company to maximize workers' desire to use the Internet for short personal tasks ▪ Facebook provides useful services for users but monitors user behaviour and sells information to advertisers and app developers ▪ ○ - Information Rights: Privacy and Freedom in the Internet Age Lecture 12 Page 133 Information Rights: Privacy and Freedom in the Internet Age Privacy: Claim of individuals to be left alone, free from surveillance or interference from other individuals, organisations, or state - In the US, privacy is protected by; ○ First Amendment (freedom of speech and association) ○ Fourth Amendment (unreasonable search and seizure) ○ Additional federal statues (e.g., Privacy Act of 1974) - Fair information practices: ○ Set of principles governing the collection and use of information Used to drive changes in privacy legislation ▪ COPPA ▪ Gramm-Leech Bliley Act ▪ HIPAA ○ - FTC FIP principles ( FIP Principles ---> Mutuality between people whose information is collected and information collectors) ▪ ○ Notice/Awareness (core principle) ○ Choice/Consent (core principle) ○ Access/Participation ○ Security ○ Enforcement - EU General Data Protection Regulation (GDPR) - Requires unambiguous, explicit informed consent of customer EU member nations cannot transfer personal data to countries without similar privacy protection Applies across all EU countries to any firms operating in the EU or processing data on Eu citizens or residents ○ ○ Strengthens right to be forgotten - - Privacy Shield: All countries processing EU data must conform to GDPR requirements - Heavy Fine: 4% of global daily revenue Internet Challenges to Privacy Cookies ○ Identify browser and track visits to site - Web beacons (web bugs) ○ Tiny graphics embedded in e-mails and web pages ○ Monitor who is reading email messages or visiting site Attached to email services or webpages and collect data ▪ LEGAL ▪ Collect more information than cookies (content + context) ▪ If used for harm = SPYWARE ○ - Spyware ○ Surreptitiously installed on user's computer ○ May transmit user's keystrokes or display unwanted ads ○ When used to harm an individual - - Google services and behavioural targeting The United States allows businesses to gather transaction information and use this for other marketing purposes Opt-out vs Opt-in model ▪ Give users some form of choice Opt-out: Select which information that is being collected □ Effective when people KNOW their rights and what is being collected ▪ Opt-in: More robust □ Provide less information = Less optimal experiences ▪ ○ - Outline industry promotes self-regulation over privacy legislation ○ Complex/ambiguous privacy statements ○ Opt-out models selected over opt-in ○ Online "seals" of privacy principles - Technical Solutions Solutions include: ○ Email encryption ○ Anonymity tools ○ Anti-spyware tools - Overall, technical solutions have failed to protect users from being tracked from one site to another ○ "Private" browsing ○ "Do not track" options - Lecture 12 Page 134 Screen clipping taken: 2024-11-28 9:44 AM Property Rights: Intellectual Property Intellectual Property: ○ Tangible and intangible products of the mind created by individuals or corporations - Protected in four main way: ○ Copyright ○ Patents ○ Trademarks ○ Trade secrets - Challenges to Intellectual Property Rights Digital media different from physical media ○ Ease of replication ○ Ease of transmissions (networks, Internet) ○ Ease of alteration ○ Compactness ○ Difficulties in establishing uniqueness - - Digital Millennium Copyright Act (DMCA) Computer-related Liability Problems - If software fails, who is responsible? If seen as part of a machine that injures or harms, software producer and operator may be liable - - If seen as similar to book, difficult to hold author/publisher responsible If seen as service, would this be similar to telephone systems not being liable for transmitted messages? - System Quality: Data Quality and System Errors What is an acceptable, technologically feasible level of system quality? ○ Flawless software is economically unfeasible - Three principal sources of poor system performances ○ Software bugs, errors ○ Hardware or facility failures ○ Poor input data quality (most common source of business system failure) - Quality of Life: Equity, Access, Boundaries - Negative social consequences of systems - Big Tech: economic and political power - Rapidity of change: reduces response to competition - Maintaining boundaries: family, work, and leisure - Dependence and vulnerability - Computer crime and abuse Equity and access ○ The digital divide - Health risks ○ Repetitive stress injury (RIS) ○ Carpal Tunnel Syndrome (CTS) ○ Computer visions syndrome (CVS) ○ Technostress - Lecture 12 Page 135 ERP = Enterprise Resource Planning system Program-data dependency ---> ○