IS 300 Final Exam PDF

Technology Guide 2: Software 1. Types of Software a. Open Systems i. All the systems/ applications that you buy all work on the same platform 1. Dont have to worry about having different operating systems b. Application Software: set of com...

Technology Guide 2: Software 1. Types of Software a. Open Systems i. All the systems/ applications that you buy all work on the same platform 1. Dont have to worry about having different operating systems b. Application Software: set of computer instructions that provides more specific functionality to a user/ consists of instructions that direct a computer system to perform specific information-processing activities and also to provide functionality for users i. Package or software suite 1. Ex: Microsoft Office ii. Personal Application Package 1. Spreadsheets 2. Word processing 3. Desktop publishing 4. Data management 5. Presentation 6. Graphics 7. Personal information management 8. Personal Finance 9. Web Authoring 10. Communications c. Open-Source Software i. Software you dont pay for; open for everyone to use and modify as you want d. Proprietary Software (Software License required) i. Often companies not building own applications and instead purchase license to use it e. System Software: set of instructions that serves primarily as an intermediary between computer hardware and application programs (hardware → systems software → application software) i. Programs contained in systems software control and support the computer system and its information processing activities 1. Operating systems: would take over tasks of many programs, control hardware, manage and allocate resources, and provide interface for the user a. Ex: windows, android, linux 2. GUI (graphical user interface): make it fun and colorful (graphical in nature) “gooey” a. Windows, android, linux 3. Social interface: guides the user through computer applications by using cartoon-like characters, graphics, animation, and voice commands (ex: avatar)  4. Motion control gaming consoles: another type of human-computer interface a. Ex: Xbox 360 Kinect, PS3 Playstation Move, Nintendo Wii Extra Notes: ○ Software: computer programs or the instructions given to hardware ○ Programming: the process of writing or coding programs ○ Programmers: individuals who program ○ Software issues Software defects Software licensing Open systems Opensource software ○ Operating systems would take over tasks of many programs, control hardware, manage and allocate resources, and provide interface for the user Ex: windows, android, linux ○ Under application software there are also speech-recognition software and voice-recognition software Technology Guide 3: Cloud 1. What is Cloud Computing? (Watch short video) a. Running apps on a shared data center i. Fast and costs less ii. Do not need servers or storage, technical team, or upgrades iii. More scalable, more secure, and more reliable iv. Multi-tenant b. Cloud computing: on-demand delivery of computer power, db storage, applications, and other IT resources through a cloud services platform via the internet w/ pay as you go pricing c. Cloud characteristics and terms, for example: elastic  i. d. Different types of clouds i. Private 1. Private cloud (or corporate cloud): single org. Private cloud owner is responsible for the infrastructure, software, and security of the service. Users can access the private cloud resources through a private network or the internet. A private cloud can be hosted on premises or off premises by a third party provider ii. Public 1. Public cloud: cloud service that is delivered via the internet and shared by multiple users of organizations. Public cloud provider owns and manages the infrastructure, software and security of the service iii. Hybrid 1. Hybrid cloud: combines both public and private clouds. The hybrid cloud allows users to move data and applications between the two environments based on their needs and preferences iv. Vertical e. Cloud Computing Services - Know what they provide, and which provides the least to most for a company. For example, if you were starting a new business and wanted most of your IT covered by Cloud services which platform would you choose?  Saas: least hardware software Paas: hybrid IaaS: need IS staff 2. Private Clouds (intranet)  a. Private cloud (or corporate cloud): single org. Private cloud owner is responsible for the infrastructure, software, and security of the service. Users can access the private cloud resources through a private network or the internet. A private cloud can be hosted on premises or off premises by a third party provider i. A private cloud is a cloud deployment model in which the cloud computing services and infrastructure are hosted privately within a company’s own intranet or data center using proprietary resources1. Authorized users can access private cloud applications through the company’s intranet or through a closed virtual private network (VPN)2. The private cloud is defined as computing services offered either over the Internet or a private internal network and only to select users instead of the general public3. 3. Advantages of cloud vs advantages of in-house hosting a. 6 advantages and benefits of cloud computing i. Trade capital expense for variable expense ii. Benefit from massive economies of scale 1. Avg cost decreases as size of operation increases 2. Major cloud vendors operate enormous web farms iii. Stop guessing capacity iv. Increase speed and agility (development time from months-weeks to days) v. Stop spending money on running and maintaining data centers vi. Go global in minutes b. Benefits provided to organizations by web services i. The org can utilize the existing internet infrastructure without having to implement any new tech ii. Org personnel can access remote or local data without having to understand the complexities of this process iii. The org can create new applications quickly and easily c. With an in-house server, you’ll retain complete control over it. However, this means you are responsible for keeping it up and running Extra Notes: Evolution of modern IT infrastructure ○ Stand alone mainframe ○ Mainframe and dumb terminals ○ Stand alone personal computers ○ Local area network (client/ server computing) ○ Enterprise computing ○ Cloud computing and mobile computing MS Underwater Data Center: ○ Green data center into the ocean to make cable as short as possible for residents near the coast  Grid computing: practice of leveraging multiple computers, often geographically distributed but connected by networks, to work together to accomplish joint tasks. Typically run on ○ "data grid", set of computers that directly interact w/ each other to coordinate jobs 6 categories of cloud computing concerns ○ Concern 1: Legacy IT systems ○ Concern 2: Reliability Ex: amazon web services ○ Concern 3: Privacy ○ Concern 4: security ○ Concern 5: the regulatory and legal environment ○ Concern 6: criminal use of cloud computing Big 3 cloud vendors: ○ Amazon web services ○ Microsoft azure ○ Google cloud platform Web services: applications delivered over the internet that IT developers can select and combine through almost any device, from personal computers to mobile phones Web services are based on 4 key protocols: ○ Extensible markup language (XML) ○ Simple object access protocol (SOAP) ○ Web services description language (WSDL) ○ Universal Description, discovery, and integration (UDDI) Chapter 14: Artificial Intelligence (AI) and Powerpoint of AI Applications 1. Sebastian Thun and Chris Anderson: What AI is - and isn't | Ted Talk a. AI Applications discussed i. alphaGo (studies games and winning pattern) ii. Self driving car (Voyage) deep learning iii. melanoma/ carcinoma self checking b. Crowdsourcing: large # of ppl to create/ solve problems (airbnb vs hotels) c. Overall opinion of the speaker i. An augmentation of ppl ii. Makes us stronger iii. Does not see the overtaking of people 2. Sam Harris - can we build an AI without losing control over it? a. Overall opinion and his recommendation of what we may do to address AI i. The gains we make with AI can destroy us ii. Unable to marshal an appropriate emotional response to dangers iii. We need a Manhattan project 1. Getting all world leaders to work together 3. Classification by Intelligence: this classification scheme distinguishes between AI applications that are narrow (weak) and those that are general (strong)  a. Narrow AI (ANI): These systems are designed to perform a specific task or set of tasks. Often very good at what they do, but they cannot generalize to other tasks i. Examples of Narrow AI 1. Facial recognition software 2. Spam filters 3. Self playing chess programs b. General AI (AGI): these systems are hypothetical AI systems that would have the ability to understand and reason like a human. AGI does not yet exist, but it is a topic of active research 4. Classification by Task: most common way to classify AI applications. AI can be used to perform a wide variety of tasks, including a. Prediction: AI can be used to predict future events or outcomes i. Ex: customer churn, stock prices, or weather patterns b. Optimization: AI can be used to find the best solution to a problem i. Ex: such as the most efficient route for a delivery truck or the most effective treatment plan for a patient c. Anomaly Detection: to detect anomalies or outliers in data i. Ex: fraudulent transactions or equipment failures d. Creativity: used to classify data into different categories i. Ex: spam emails, medical diagnoses, or customer sentiment 5. Classification by Task (Functionality): a. Reactive Machines: the simplest type of AI applications that only react to the current situation without using any memory or learning from the past i. Ex: Chess playing program that only calculates the best move for the current board position is a reactive machine b. Limited Memory Machines: can use some memory or data from the past to improve their performance or behavior i. Ex: self driving car that can remember the traffic rules, road conditions, or previous routes is a limited memory machine c. Self-Aware Machines: these are the most advanced type of AI applications that can have their own consciousness, self-awareness, or personality i. Ex: a robot that recognize itself in a mirror, express its own feelings, or make its own decisions is a self aware machine 6. Classifying by Degree of Autonomy: this classification scheme distinguishes between AI applications that are fully autonomous and those that require human intervention a. Fully Autonomous AI: can make decisions and take actions without any human input i. Ex: self-driving cars and chatbots that can answer customer questions without human assistance b. Partially Autonomous AI: systems require some degree of human input, such as setting parameters or providing feedback i. Ex: AI-powered medical diagnosis systems that require a doctor to review the medical results before making a final diagnosis 7. Open AI  a. Background and Vision i. A research org that aims to create and promote AI that can benefit humanity without causing harm or being influenced by external factors 1. ChatGPT, Bard, Etc. b. Prompts: allow users to interact with the model by entering a text prompt. The prompt helps provide context for the model's responses. However, it's important to note that the behavior of these models can be sensitive to the prompt. c. Hallucinations: is a false or misleading output generated by an AI system. It can be a confident response by an AI that does not seem to be justified by its training data 8. General Topics: a. What is AI: the theory and development of information systems able to perform tasks that normally require human intelligence b. Expert Systems: are computer systems that attempt to mimic human experts by applying expertise in a specific domain. Can either support decision-makers or completely replace them c. Deep Learning: subset of machine learning in which the system discovers new patterns without being exposed to labeled historical or training data (speech or image recognition) i. Neural networks w/ multiple layers d. Neural Networks: set of virtual neurons or central processing units (CPUs) that work in parallel in an attempt to simulate the way the human brain works, although in a greatly simplified form e. Machine Learning: the ability to accurately perform new, unseen tasks, built on known properties learned from training or historical data that are labeled i. supervised f. What AI is in use today, ex: natural language processing and computer vision g. Intelligent Agents: a software program that assists, you, or acts on your behalf, in performing repetitive computer-related tasks i. Info agents (buyer agents) ii. Monitoring and surveillance agents iii. User agents h. AI videos were presented during the AI applications supplemental slides. Crisper Video (What has already been accomplished) i. Gene editing tool in adults 1. Clinical applications in embryo? 2. Possibly eliminate genes of diseases 3. Ethical qs a. Should the change be applied to eggs, sperm, or embryos b. Could be used to augment humans Extra Notes: ○ Which of the following technologies is considered an application of natural language processing?  Voice-activated virtual assistants Chapter 4: Security 1. Unintentional Threats a. Human Errors i. Higher level employees + greater access privileges = greater threat ii. Significant areas: Human resources and information systems iii. Other areas: contract labor, consultants, janitors, & guards iv. Common human error: 1. Carelessness w/ laptop 2. Carelessness w/ computing devices 3. Opening questionable email 4. Careless internet surfing 5. Poor password selection and use 6. Carelessness with ones office 7. Carelessness using unmanaged devices 8. Carelessness with discarded equipment 9. Carelessness monitoring of environmental hazards b. Social Engineering: at attack in which the perpetuator uses social skills to trick or manipulate legitimate employees into providing confidential company info such as passwords i. Kevin Mitnick - Famous Hacker 1. Would manipulate ppl into giving away sensitive info a. Bypassed la bus systems, hacked into Motorola and Nokia, and some govt systems 2. Went to prison and became an author and consultant 2. Deliberate Threats - Software attacks for example a. Remote attacks needing no user action i. Denial of Service Attack: one attacks servers with traffic ii. Distributed Denial of Service Attack: multiple machines or computers attack source b. Ransomware: holds victims sensitive data for ransom c. Attacks by a programmer developing a system i. Trojan horse: malware downloaded disguised as a legitimate program d. DDoS attack on Dyn - Powerpoint Slides i. Distributed denial of service attack targeting domain name system (DNS) provider Dyn. ii. Caused major internet platforms and services to be unavilable to EU and NA iii. Affected netflix, twitter, spotify, cnn, new york times, airbnb and millions of users 3. Risk Limitation Strategy: The organization limits the risk by implementing controls that minimize the impact of threats. As a homeowner, you practice risk limitation by putting in an alarm system or cutting down weak trees near your house  a. Limit the risk by implementing controls that minimize the impact of the threat 4. Information Security Controls a. Physical controls i. Prevent unauthorized individuals from gaining access to a company’s facilities 1. Walls, doors, fencing, gates, guards, alarm system b. Access controls i. Authentication 1. Something the user is - biometrics 2. Something the user has - id cards 3. Something the user does - signature 4. Something the user knows - passwords ii. Authorization: confirms the identity of the person requiring access 1. Determines which actions, rights, or privileges the person has, based on their verified identity c. Communication controls (network controls): secure the movement of data across networks i. Firewalls ii. Anti-malware systems iii. Whitelisting and blacklisting iv. Encryption v. VPN vi. Transport layer security (TLS) vii. Employee monitoring systems d. Business continuity planning: system of prevention and recovery from potential threats to a company. Ensures that personnel and assets are protected and can function quickly in the event of disaster. BCP involves identifying, mitigating, and testing risks, such as natural disasters of cyber-attacks, and includes business impact analysis, recovery, organization, and training i. Disaster recovery plan 1. Hot site: off-premises location where company’s work can resume during a disaster 2. Warm site: another backup site not as equipped. Not ready for an immediate switch 3. Cold site: site is ready to receive computer equipment in the event that the user has to move from their main computing location to an alternate site e. Information systems auditing i. Examination of information systems, their inputs, outputs, and processing 5. Software to project computers a. Firewalls b. Anti-malware systems 6. Ways to protect your data: Encryption  a. Is the process of converting an original message into a form that cannot be read by anyone except the intended receiver 7. Communication Control: Whitelisting a. A process in which a company identifies the software that it will allow to run on its computers. Whitelisting permist acceptable software to run, and it either prevents any other software from running or lets new software run only in a quarantine environment until the company can verify its validity Extra Notes: Chapter 7: E-Business and E-Commerce (PPT and Lecture Notes are sufficient for this chapter) Business Model Pt 2 of Slides is not on the exam 1. Types of E-Commerce a. Business-to-Consumer (B2C) i. Sellers are organization, and the buyer are individuals b. Business-to-Business (B2B) i. Both the sellers and the buyers are business organizations c. Consumer-to-Consumer (C2C) i. An individual sells products or services to other individuals d. Business-to-Employee (B2E) i. Organization used EC internally to provide info and services to its employees 1. Ex: manage their benefits, training classes online, discounts e. E-Government - G2C, G2G, and C2G i. Govt to citizen ii. Govt to business iii. Consumer to govt f. Consumer-to-Consumer (C2C) i. Customers trade with each other g. Consumer-to-Business (C2B) i. Individuals sell or provide service to business h. Mobile Commerce (M-Commerce) i. E-commerce that is done in a wireless environment (online shopping) 2. E-Commerce Business Models a. Online direct marketing b. Electronic tendering system i. Uses B2B w/ reverse auction c. Name your own price d. Find the best price uses intermediary e. Affiliate marketing f. Viral marketing g. Group purchasing (e-coops) h. Online auctions  i. Product customization j. Electronic marketplaces k. Bartering online l. Deep discounters m. membership 3. Electronic Storefronts, marketplace, mall, and auction a. A website that represents a single-store b. A central, virtual market space on the web where many buyers and many sellers conduct e-commerce and e-business activities c. Cyber mall, a collection of individual shops consolidated under one internet address d. Competitive buying and selling in which prices are determined dynamically by competitive bidding (increases revenue) 4. Buy-side marketplace and sell-side marketplace a. Sell-side. Every time a page or an app running behavioral ads is loaded, the publisher sends its available ad space, along with whatever information it has about the user loading the page, to its ad server. (Google operates the most popular ad server.) i. The ad server sends out a bid request to advertisers who want to target that type of user. b. Buy-side. Brands place their ads into an ad-buying platform, along with their target audience and how much they are willing to pay. (Google also owns the largest buying-side platform.) c. Uses EC technology to streamline procurement i. Procurement ii. Purchasing iii. Reverse auction iv. E-procurement v. Group purchasing d. Organizations sell their products to other organizations electronically from their own private e-marketplace or 3rd party i. Forward auctions ii. Electronic catalogs iii. 3rd party auction sites 5. Disintermediation: a process whereby intermediaries are eliminated a. The removal of intermediaries such as distributors or brokers that formerly linked a company to its customers 6. Reintermediation: the creation of new intermediaries between customers and suppliers providing services such as supplier search and product evaluation Extra Notes: Chapter 8: Wireless, Mobile Computing & Mobile Commerce 1. Internet of Things 2. Wireless Media - Basic Knowledge, pros and cons, which are inexpensive, which are short-range wireless a. Wireless media (broadcast media) i. Transmit signals without wires b. Wireless devices: ○ 3 major advantages Small enough to easily carry or wear. Sufficient computing power to perform productive tasks. Communicate wirelessly with the Internet & other devices. ○ One major disadvantage Workers can capture and transmit sensitive proprietary information c. Short-range wireless i. 100ft < ii. Bluetooth iii. Ultrawideband (UWB) iv. Near-field communication (NFC) 3. Types of transmissions: a. Microwave i. Advantages: 1. High bandwidth 2. Relatively inexpensive ii. Disadvantages: 1. Requires an unobstructed line of sight 2. Susceptible to environmental interference b. Satellite i. advantages 1. High bandwidth 2. Large coverage area ii. Disadvantages 1. Expensive 2. Requires unobstructed line of sight 3. Signals experience propagation delay 4. Requires the use of encryption for security c. Communications Satellites - General Concepts i. GEO 1. Satellites stationary relative to point on Earth, Few satellites needed for global coverage, Transmission delay (approximately 0.25 second), Most expensive to build and launch, Longest orbital life (many years) 2. 8 satellites 3. Uses Tv signal 4. 22.k miles orbit ii. MEO  1. Satellites move relative to point on Earth, Moderate number needed for global coverage, Requires medium-powered transmitters, Negligible transmission delay, Less expensive to build and launch, Moderate orbital life (6 to 12 years) 2. 10-12 satellites 3. GPS signal 4. 6.5k miles orbit iii. LEO 1. Satellites move rapidly relative to point on Earth, Large number needed for global coverage, Requires only low-power transmitters, Negligible transmission delay, Least expensive to build and launch, Shortest orbital life (as low as 5 years) 2. Many satellites 3. Telephone signal 4. 400-700 miles orbit d. Radio i. Advantages: 1. High bandwidth 2. Signals pass through walls 3. Inexpensive and easy to install ii. Disadvantages: 1. Creates electrical interference problems 2. Susceptible to snooping unless encrypted e. Bluetooth i. An industry specification used to create small personal area networks 1. Low-power, radio-based communication 4. Examples of Wireless: a. Telemetry i. Refers to the wireless transmission and receipt of data gathered from remote sensors 1. Ex: remote vehicle diagnosis and preventative maintenance b. The Internet of Things i. refers to the billions of animate (living) and inanimate objects that are equipped with embedded sensors and connected wirelessly to the Internet. 1. There are two types of IoT: consumer IoT and industrial IoT. Consumer IoT devices range from smartwatches, smartphones, wearable devices, smart home speakers, lightbulbs, electrical outlets, thermostats, door locks, doorbells, appliances, and other smart home products. 2. The IIoT refers to the billions of industrial devices—anything from machines in a factory to the engines on an airplane—that are equipped with sensors, connected to wireless networks, and gather and share data.  c. RFID Tags (Active/ Passive) i. technology allows manufacturers to attach tags containing antennae and computer chips on products. The tags contain enough data to uniquely identify each item. ii. Active 1. Power Source: Uses an internal battery to power the tag and transmit signals. 2. Range: Longer range, typically 100 meters or more. 3. Data Transmission: Can continuously transmit data to the reader 4. Size: Larger due to the battery. 5. Cost: More expensive. 6. Applications: Asset tracking, toll collection, real-time location systems (RTLS). iii. Passive RFID 1. Power Source: No internal battery; powered by the electromagnetic field of the RFID reader. 2. Range: Shorter range, typically up to 10 meters. 3. Data Transmission: Transmits data only when within range of the reader. 4. Size: Smaller and lighter. 5. Cost: Less expensive. 6. Applications: Access control, inventory management, contactless payment systems. Extra Notes: Chapter 11: CRM and SCM 1. CRM Vendors a. WHAT IS CRM- COMPOSED OF STRATEGY AND SYSTEMS TO CARRY OUT THE STRATEGY i. Suite of applications, database, and set of inherent processes. It is customer Centric. 1. Manage all interactions with customer through four phases of customer life cycle a. 1. Marketing b. 2. Customer acquisition c. 3. Relationship management d. 4. Loss/churn 2. Types of CRM Systems for example Social and on-demand a. On demand- A CRM system that is hosted by an external vendor in the vendor’s data center.  b. Social- the use of social media technology and services to enable organizations to engage their customers in a collaborative conversation in order to provide mutually beneficial value in a trusted and transparent manner. c. Analytical- systems analyze customer data for a variety of purposes. d. Operational e. Mobile- n interactive system that enables an organization to conduct communications related to sales, marketing, and customer service activities through a mobile medium for the purpose of building and maintaining relationships with its customers f. Open source- the source code for open source software is available at no cost g. Realtime- organizations are able to respond to customer product searches, requests, complaints, comments, ratings, reviews, and recommendations in near real-time, 24/7/365 3. Operational CRM systems - get detail a. Operational CRM Systems- support front-office business processes. Front-Office Processes: those processes that directly interact with customers (i.e., sales, marketing, and service). i. Customer-Facing Applications-allow an organization’s sales, field service, and customer interaction center representatives interact directly with customers through customer service and support, sales force automation, marketing, and campaign management. ii. Customer-Touching Applications:(or electronic CRM e-CRM) customer self-help applications/technologies. iii. Analytical CRM systems analyze customer data for a variety of purposes. Provides Business Intelligence b. Operational CRM Systems provide the following benefits: i. Efficient, personalized marketing, sales, and service ii. A 360-degree view of each customer iii. The ability of sales and service employees to access a complete history of customer interaction with the organization, regardless of the touch point 4. Marketing - upselling, cross-selling bundling, etc. a. Upselling- is a strategy in which the salesperson provides customers with the opportunity to purchase related products or services of greater value in place of, or along with, the consumer’s initial product or service selection. For example, if a customer goes into an electronics store to buy a new television, a salesperson may show him a pricey 1080i HD LED television placed next to a less expensive LCD television in the hope of selling the more expensive set (assuming that the customer is willing to pay more for a sharper picture). Other common examples of upselling are warranties on electronics merchandise and the purchase of a car wash after buying gas at a gas station. b. Cross-selling- is the marketing of additional related products to customers based on a previous purchase. This sales approach has been used very successfully by banks. For example, if you have a checking and savings account at your bank,  then a bank officer will recommend other products for you, such as certificates of deposit (CDs) or other types of investments. c. Bundling- s a form of cross-selling in which a business sells a group of products or services together at a lower price than their combined individual prices. For example, your cable company might bundle cable TV, broadband Internet access, and telephone service at a lower price than you would pay for each service separately. 5. SCM - Segments - 3 of them 6. Components of SCM, for example, Make, deliver, etc a. 5 components i. Plan- Planning is the strategic component of SCM. Organizations must have a strategy for managing all the resources that are involved in meeting customer demand for their product or service. ii. Source- In the sourcing component, organizations choose suppliers to deliver the goods and services they need to create their product or service. Supply chain managers develop pricing, delivery, and payment processes with suppliers, and they create metrics to monitor and improve their relationships with their suppliers. They also develop processes for managing their goods and services inventory, including receiving and verifying shipments, transferring the shipped materials to manufacturing facilities, and authorizing supplier payments. iii. Make- This is the manufacturing component. Supply chain managers schedule the activities necessary for production, testing, packaging, and preparation for delivery. iv. Deliver (logistics)- This component, often referred to as logistics, is in which organizations coordinate the receipt of customer orders, develop a network of warehouses, select carriers to transport their products to their customers, and create an invoicing system to receive payments. v. Return- Supply chain managers must create a responsive and flexible network for receiving defective, returned, or excess products back from their customers, as well as for supporting customers who have problems with delivered products. 7. Types of SCM systems: For example, JIT, Vendor managed, etc. a. Just-in-time (JIT) inventory system (Work in Progress) b. Information Sharing facilitated by EDI, Extranets i. Electronic Data Interchange (EDI):a communication standard that enables business partners to exchange routine documents, such as purchasing orders, electronically. EDI formats these documents according to agreed-upon standards (e.g., data formats). It then transmits messages over the Internet using a converter, called translator c. Vendor-managed inventory (VMI) d. Vertical Integration: a business strategy in which a company purchases its upstream suppliers to ensure that its essential supplies are available as soon as the company needs them  8. In the PowerPoint slides, there is a Bullwhip effect video. Pay close attention to the puzzle with causes and what can be done a. bullwhip effect i. 4 main causes: price fluctuation, order batching, shortage gaming, forecast inaccuracies 1. Solved by: everyday low prices, frequent ordering, forecast on sales history, information sharing Extra Notes: Zara Case 1. General Information a. How Zara’s parent company Inditex leveraged a technology-enabled strategy to become the worlds largest fashion retailer i. 3 key essential elements for the creation of fashion pillars: 1. Flexibility 2. Integration 3. sustainability 2. Effect on customers from their limited runs a. Limited production creates a sense of exclusivity. b. Encourages immediate purchases at full price. c. Customers visit stores frequently to find new arrivals. 3. Zara’s inventory a. Uses smart inventory management supported by RFID technology. b. Inventory is vertically integrated, with most production processes handled in-house. c. Products are shipped twice weekly to keep offerings fresh and current. 4. E-Commerce Strategy a. Integrated omnichannel approach, blending online and offline shopping experiences. b. Features like Store Mode and Click and Collect enhance convenience. c. Inditex Open Platform (IOP) supports seamless operations across all channels. 5. Logistics - General, for example, location a. Operates 10 logistics centers in Spain, ensuring global deliveries within 48 hours. b. Highly responsive and efficient distribution system. c. Relies on advanced technology and in-house capabilities for optimal supply chain management. 6. What makes Zara unique in their industry a. Technology-Enabled Strategy: Combines vertical integration with technology for rapid design-to-delivery processes (15 days on average). b. Minimal advertising focus and no reliance on heavy discounting. c. Strong emphasis on data-driven decisions and customer feedback.  d. Integration of digital tools (like mobile apps) for a personalized shopping experience Extra Notes: