ISDS 351 Fall 2024 Final Exam Review PDF

Welcome to ISDS 351 Final Exam Review  Format Exam Date: Tuesday, Dec 17(online section) Thursday, Dec 19(in-person section) Exam will be open from 5:05 PM to 6:50 PM Closed Book – No Notes The honor system is in effect. Written responses will...

Welcome to ISDS 351 Final Exam Review  Format Exam Date: Tuesday, Dec 17(online section) Thursday, Dec 19(in-person section) Exam will be open from 5:05 PM to 6:50 PM Closed Book – No Notes The honor system is in effect. Written responses will be reviewed for possible plagiarism, copying, etc. YOU MAY NOT DISCUSS THE FINAL WITH ANYONE WHO HAS NOT YET TAKEN IT.  Format 50 Multiple Choice (worth 1 point, each) 2 Short Answer (free response) (worth 15 points, each) – pay attention to length requirements 1 Essay (free response) (worth 20 points) – Minimum of 5 paragraphs – Answer the question → Minimal Points – Give examples → More points – Support the answer → More points – Answer + Support + Examples = Full Points 3  Topics Covered  Five Component Model  IS Chapter 3 (Ethics)  IS Chapter 5 (Business Intelligence)  IS Chapter 8 (Cloud Computing)  IS Chapter 10 (Enterprise Systems)  IS Chapter 11 (AI)  IS Chapter 12 (Strategic Planning)  Databases  Networks  Cryptography  Information Security  PM Chapter 3 (Project Methodologies)  PM Chapter 4 (Project Integration Management)  PM Chapter 5 (Project Scope Management)  PM Chapter 6 (Project Time Management)  PM Chapter 7 (Project Cost Management)  PM Chapter 10 (Project Communication Management) 4  What is an Information System? An information system is hardware and software that allow people to follow a process. (Kroenke, 2011) Five Component Model PEOPLE PROCESS DATA SOFTWARE HARDWARE Business Technology Information systems move work away from people and into technology Increasing difficulty of introducing change 5  End of Review on Final Exam Format & Five Component Model 6  What Is Ethics? Ethics Set of principles about right and wrong Used to make choices guiding decisions Ethical behavior Conforms to generally accepted norms Factors affecting ethical behavior Age, cultural group, ethnic background, religion, life experiences, education, gender Morals Personal guidelines on right vs. wrong Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be Copyright ©2016 Cengage Learning. scanned, copiedAll Rights Reserved. or duplicated, May to or posted nota be scanned, publicly copied orwebsite, accessible duplicated, or posted in whole or in to a publicly acce ssible part. website, in whole or in part.  Law Law vs. Ethics System of rules Defines what we can and cannot do Legal acts Conform to the law Legal activity does not mean it is ethical Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be Copyright ©2016 Cengage Learning. scanned, copiedAll Rights Reserved. or duplicated, May to or posted nota be scanned, publicly copied orwebsite, accessible duplicated, or posted in whole or in to a publicly acce ssible part. website, in whole or in part.  Ethical Versus Legal FIGURE 3.1 The Difference Between Acting Ethically and Acting Legally Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be Copyright ©2016 Cengage Learning. scanned, copiedAll or Rights Reserved. duplicated, May to or posted notabe scanned, publicly copied orwebsite, accessible duplicated, or posted in whole or in to a publicly acce ssible part. website, in whole or in part.  Corporate Social Responsibility Gaining the goodwill of the community Corporate social responsibility (CSR) goals Perform socially responsible activities Creating an organization that operates consistently Defines employee expectations Provides consistent company behavior Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be Copyright ©2016 Cengage Learning. scanned, copiedAll Rights Reserved. or duplicated, May to or posted nota be scanned, publicly copied orwebsite, accessible duplicated, or posted in whole or in to a publicly acce ssible part. website, in whole or in part.  Ethical Decision Making Steps FIGURE 3.2 Five-step ethical decision-making process Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be Copyright ©2016 Cengage Learning. scanned, copiedAll or Rights Reserved. duplicated, May to or posted notabe scanned, publicly copied orwebsite, accessible duplicated, or posted in whole or in to a publicly acce ssible part. website, in whole or in part.  Professional Code of Ethics Professional code of ethics States the principles and core values that an organization wishes to develop in its leaders and members Primary intent is to define desired behavior Four key benefits Improve ethical decision making Set high standards of practice and ethical behavior Engender trust and respect from the general public Provide an evaluation benchmark No universal code of ethics for IS worker exists Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be Copyright ©2016 Cengage Learning. scanned, copiedAll Rights Reserved. or duplicated, May to or posted nota be scanned, publicly copied orwebsite, accessible duplicated, or posted in whole or in to a publicly acce ssible part. website, in whole or in part.  Information Use Information system use requires balance Needs of those who use the information collected Rights and desires of the people whose information is being used Information about people Used to make decisions Used to target marketing efforts Used to serve customers better Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be Copyright ©2016 Cengage Learning. scanned, copiedAll Rights Reserved. or duplicated, May to or posted nota be scanned, publicly copied orwebsite, accessible duplicated, or posted in whole or in to a publicly acce ssible part. website, in whole or in part.  Information Collection Systems collect and store key data on every customer interaction Data collection by governments and businesses Causing objections by people Individuals have no power to control their own personal information Must balance the scales Combine new laws, technical solutions, and privacy policies Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be Copyright ©2016 Cengage Learning. scanned, copiedAll Rights Reserved. or duplicated, May to or posted nota be scanned, publicly copied orwebsite, accessible duplicated, or posted in whole or in to a publicly acce ssible part. website, in whole or in part.  Protecting Personal Data Fair information practices Set of guidelines governing the collection and use of personal data General Data Protection Regulation (GDPR) Set of data privacy requirements Applies across the European Union including non-EU organizations Applies to organizations that process information of individuals in the EU Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be Copyright ©2016 Cengage Learning. scanned, copiedAll Rights Reserved. or duplicated, May to or posted nota be scanned, publicly copied orwebsite, accessible duplicated, or posted in whole or in to a publicly acce ssible part. website, in whole or in part.  Protecting Financial Data Financial data Inadvertent loss carries a high risk of loss of privacy and potential financial loss Fair Credit Reporting Act Regulates credit-reporting bureaus regarding their collection, storage, and use of credit information Right to Financial Privacy Act Protects the records of financial institutions’ customers from unauthorized scrutiny by the federal government Fair and Accurate Credit Transactions Act Consumers can request and obtain free credit report Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be Copyright ©2016 Cengage Learning. scanned, copiedAll Rights Reserved. or duplicated, May to or posted nota be scanned, publicly copied orwebsite, accessible duplicated, or posted in whole or in to a publicly acce ssible part. website, in whole or in part.  Protecting Health Data Health information Concerns over health data privacy erosion Health Insurance Portability and Accountability Act (HIPAA) Requires standardized electronic transactions, codes, and identifiers Provides medical data exchange over the Internet Requires health care providers to obtain written consent from patients prior to disclosing any information in their medical records American Recovery and Reinvestment Act Title XIII Health Information Technology for Economic and Clinical Health Act (HITECH) Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be Copyright ©2016 Cengage Learning. scanned, copiedAll Rights Reserved. or duplicated, May to or posted nota be scanned, publicly copied orwebsite, accessible duplicated, or posted in whole or in to a publicly acce ssible part. website, in whole or in part.  Protecting Children’s Data Children’s personal data Family Educational Rights and Privacy Act (FERPA) Assigns certain rights to parents regarding their children’s educational records Children’s Online Privacy Protection Act (COPPA) Rules for children’s websites collecting any personal information from children under 13 years of age Offer comprehensive privacy policies Notify parents about data collection practices Receive parental consent before collecting it Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be Copyright ©2016 Cengage Learning. scanned, copiedAll Rights Reserved. or duplicated, May to or posted nota be scanned, publicly copied orwebsite, accessible duplicated, or posted in whole or in to a publicly acce ssible part. website, in whole or in part.  Web Site Privacy Policy Privacy notice elements Notice - Describe personal information being collected Choice - Describe options customer has Access - How a customer can see data collected and change/correct it if necessary Security - State how any data that is collected is stored/protected Redress - What customer can do if privacy policy is not met Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be Copyright ©2016 Cengage Learning. scanned, copiedAll Rights Reserved. or duplicated, May to or posted nota be scanned, publicly copied orwebsite, accessible duplicated, or posted in whole or in to a publicly acce ssible part. website, in whole or in part.  Individual Efforts to Protect Privacy Laws do not completely protect individual privacy Not all companies have privacy policies Steps to protect personal privacy Find out what is stored about you in existing databases Be careful sharing information about yourself Be proactive in protecting your privacy Take extra care when purchasing anything from a Web site Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be Copyright ©2016 Cengage Learning. scanned, copiedAll Rights Reserved. or duplicated, May to or posted nota be scanned, publicly copied orwebsite, accessible duplicated, or posted in whole or in to a publicly acce ssible part. website, in whole or in part.  IS and Government Surveillance Privacy is protected by the Bill of Rights Fourth Amendment protects us from illegal searches and seizures Two viewpoints on surveillance Our basic rights of freedom of expression and association are violated when the U.S. government conducts widespread electronic surveillance U.S. government is obligated to do all that it can do to provide for the security of its citizens Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be Copyright ©2016 Cengage Learning. scanned, copiedAll Rights Reserved. or duplicated, May to or posted nota be scanned, publicly copied orwebsite, accessible duplicated, or posted in whole or in to a publicly acce ssible part. website, in whole or in part.  Federal Statutes Foreign Intelligence Surveillance Act (FISA) USA PATRIOT Act USA Freedom Act Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be Copyright ©2016 Cengage Learning. scanned, copiedAll Rights Reserved. or duplicated, May to or posted nota be scanned, publicly copied orwebsite, accessible duplicated, or posted in whole or in to a publicly acce ssible part. website, in whole or in part.  CCPA California Consumer Protection Act (went into effect Jan 1, 2020) – Know what data is collected – Know when data is sold or shared and to whom – Block the sale of personal data – Access personal data – Request deletion of personal data – No penalty for invoking privacy rights New CPRA Law doesn’t take effect until 2023 23  Freedom of Expression Internet Enables a worldwide exchange of news, ideas, opinions, rumors, and information Provides for open discussions and anonymity Creates a remarkable communications medium Ethical decisions required on using Internet’s freedom and power Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be Copyright ©2016 Cengage Learning. scanned, copiedAll Rights Reserved. or duplicated, May to or posted nota be scanned, publicly copied orwebsite, accessible duplicated, or posted in whole or in to a publicly acce ssible part. website, in whole or in part.  Freedom of Speech First Amendment Protects Americans’ rights to freedom of religion, freedom of press, freedom of expression, and freedom to assemble peaceably Some speech is not protected or forbidden Anonymity on the Internet Anonymous expression The expression of opinions by people who do not reveal their identity Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be Copyright ©2016 Cengage Learning. scanned, copiedAll Rights Reserved. or duplicated, May to or posted nota be scanned, publicly copied orwebsite, accessible duplicated, or posted in whole or in to a publicly acce ssible part. website, in whole or in part.  Internet Censorship Internet censorship The control or suppression of the publishing or accessing of information on the Internet Censorship efforts may focus on Domain Name System (DNS) servers Officials can “deregister” a domain that hosts content deemed inappropriate or illegal Freedom of speech online Complicated by the ease with which children can access the Internet Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be Copyright ©2016 Cengage Learning. scanned, copiedAll Rights Reserved. or duplicated, May to or posted nota be scanned, publicly copied orwebsite, accessible duplicated, or posted in whole or in to a publicly acce ssible part. website, in whole or in part.  Internet Censorship (CDA & CIPA) Communications Decency Act (CDA) Protects children from pornography Had problem with definition of indecency Supreme Court ruled the law unconstitutional in 1997 Section 230 of the CDA Provides immunity to an Internet service provider (ISP) that publishes user-generated content Children’s Internet Protection Act (CIPA) Federally financed schools and libraries must use technological protection to block computer access to obscene material, pornography, and anything else considered harmful to minors Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be Copyright ©2016 Cengage Learning. scanned, copiedAll Rights Reserved. or duplicated, May to or posted nota be scanned, publicly copied orwebsite, accessible duplicated, or posted in whole or in to a publicly acce ssible part. website, in whole or in part.  End of Review on Ethics and Privacy 28  Big Data Big data Enormous (terabytes or more) Complex (sensor data to social media data) Traditional processes incapable of dealing with them Key characteristics Volume Velocity Variety Veracity Vulnerability Value Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be Copyright ©2016 Cengage Learning. scanned, copiedAll Rights Reserved. or duplicated, May to or posted nota be scanned, publicly copied orwebsite, accessible duplicated, or posted in whole or in to a publicly acce ssible part. website, in whole or in part.  Sources of Big Data FIGURE 6.2 Sources of an organization’s useful data An organization has many sources of useful data. Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be Copyright ©2016 Cengage Learning. scanned, copiedAll or Rights Reserved. duplicated, May to or posted notabe scanned, publicly copied orwebsite, accessible duplicated, or posted in whole or in to a publicly acce ssible part. website, in whole or in part.  Technologies Used to Manage and Process Big Data Technologies used to manage and process big data Extract Transform Load process Data warehouses Data marts Data lakes Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be Copyright ©2016 Cengage Learning. scanned, copiedAll Rights Reserved. or duplicated, May to or posted nota be scanned, publicly copied orwebsite, accessible duplicated, or posted in whole or in to a publicly acce ssible part. website, in whole or in part.  Data Warehouses, Data Marts, and Data Lakes Online transaction processing (OLTP) systems Traditionally used to capture data Do not support data analysis required today Data warehouses, data marts, data lakes Allow organizations to access OLTP data Support decision making more effectively Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be Copyright ©2016 Cengage Learning. scanned, copiedAll Rights Reserved. or duplicated, May to or posted nota be scanned, publicly copied orwebsite, accessible duplicated, or posted in whole or in to a publicly acce ssible part. website, in whole or in part.  Extract Transform Load (ETL) Extract Transform Load (ETL) process Extracts data from a variety of sources Edits and transforms data into a data warehouse format Loads data into the warehouse Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be Copyright ©2016 Cengage Learning. scanned, copiedAll Rights Reserved. or duplicated, May to or posted nota be scanned, publicly copied orwebsite, accessible duplicated, or posted in whole or in to a publicly acce ssible part. website, in whole or in part.  Data Warehouse and Data Mart Data warehouse Large database Holds business information from many sources in the enterprise Covers all aspects of the company’s processes, products, and customers Data mart Subset of a data warehouse Used by small and medium-sized businesses and departments within large companies Supports decision making Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be Copyright ©2016 Cengage Learning. scanned, copiedAll Rights Reserved. or duplicated, May to or posted nota be scanned, publicly copied orwebsite, accessible duplicated, or posted in whole or in to a publicly acce ssible part. website, in whole or in part.  Data Lakes Data lake Takes a “store everything” approach to big data Saves all data in its raw and unaltered form No ETL process Data is processed when it is retrieved. Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be Copyright ©2016 Cengage Learning. scanned, copiedAll Rights Reserved. or duplicated, May to or posted nota be scanned, publicly copied orwebsite, accessible duplicated, or posted in whole or in to a publicly acce ssible part. website, in whole or in part.  Benefits Achieved from BI and Analytics Determine Trends & Patterns Detect fraud Improve forecasting Increase sales Optimize operations Reduce costs Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be Copyright ©2016 Cengage Learning. scanned, copiedAll Rights Reserved. or duplicated, May to or posted nota be scanned, publicly copied orwebsite, accessible duplicated, or posted in whole or in to a publicly acce ssible part. website, in whole or in part.  Components Required for Effective BI and Analytics Three key components Existence of a solid data management program Includes data governance Creative data scientists Strong commitment to data-driven decision making Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be Copyright ©2016 Cengage Learning. scanned, copiedAll Rights Reserved. or duplicated, May to or posted nota be scanned, publicly copied orwebsite, accessible duplicated, or posted in whole or in to a publicly acce ssible part. website, in whole or in part.  Data Governance Helps ensure that a firm has reliable and actionable data to make informed business decisions Involves management of availability, usability, integrity, and security of data in an organization Requires establishing a data governance body Ensures meeting regulatory and compliance requirements Roles, processes, standards, measures, controls Information Technology for Managers 38  Descriptive Analysis (1 of 3) Descriptive analysis Preliminary data processing stage Identifies data patterns Answers questions Who, what, where, when, and to what extent Two types Visual analytics Regression analysis Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be Copyright ©2016 Cengage Learning. scanned, copiedAll Rights Reserved. or duplicated, May to or posted nota be scanned, publicly copied orwebsite, accessible duplicated, or posted in whole or in to a publicly acce ssible part. website, in whole or in part.  Descriptive Analysis (2 of 3) Visual analytics Presentation of data pictorially or graphically Word cloud Conversion funnel Graphical representation Example: Summary of steps a consumer takes in making the decision to buy a product and become a customer Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be Copyright ©2016 Cengage Learning. scanned, copiedAll Rights Reserved. or duplicated, May to or posted nota be scanned, publicly copied orwebsite, accessible duplicated, or posted in whole or in to a publicly acce ssible part. website, in whole or in part.  Descriptive Analysis (3 of 3) Regression analysis Determines the relationship between a dependent variable and one or more independent variables Produces a regression equation Coefficients represent a relationship ▶ Between each independent variable and the dependent variable Used to make predictions Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be Copyright ©2016 Cengage Learning. scanned, copiedAll Rights Reserved. or duplicated, May to or posted nota be scanned, publicly copied orwebsite, accessible duplicated, or posted in whole or in to a publicly acce ssible part. website, in whole or in part.  Predictive Analytics Predictive analytics Techniques to analyze current data Identifies future probabilities and trends Makes predictions about the future Time series analysis Uses statistical methods Analyzes time series data Extracts meaningful statistics and characteristics Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be Copyright ©2016 Cengage Learning. scanned, copiedAll Rights Reserved. or duplicated, May to or posted nota be scanned, publicly copied orwebsite, accessible duplicated, or posted in whole or in to a publicly acce ssible part. website, in whole or in part.  Data Mining & Optimization Data mining BI analytics tool Explores large amounts of data for hidden patterns Predicts future trends and behaviors Used in decision making Optimization Allocate scarce resources To minimize costs or maximize profits Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be Copyright ©2016 Cengage Learning. scanned, copiedAll Rights Reserved. or duplicated, May to or posted nota be scanned, publicly copied orwebsite, accessible duplicated, or posted in whole or in to a publicly acce ssible part. website, in whole or in part.  Simulation Emulates the dynamic responses of a real- world system to various inputs Scenario analysis Predicts future values based on certain potential events Monte Carlo simulation Provides a spectrum of thousands of possible outcomes Considers the many variables involved Considers the range of potential values for each variable Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be Copyright ©2016 Cengage Learning. scanned, copiedAll Rights Reserved. or duplicated, May to or posted nota be scanned, publicly copied orwebsite, accessible duplicated, or posted in whole or in to a publicly acce ssible part. website, in whole or in part.  Text and Video Analysis Glean insights and data relevant to decision making Text analysis Process for extracting value from large quantities of unstructured text data Video analysis Process of obtaining information or insights from video footage Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be Copyright ©2016 Cengage Learning. scanned, copiedAll Rights Reserved. or duplicated, May to or posted nota be scanned, publicly copied orwebsite, accessible duplicated, or posted in whole or in to a publicly acce ssible part. website, in whole or in part.  Self-Service Analytics Self-service analytics Training, techniques, and processes Empower end users to work independently Access data from approved sources Perform their own analyses Use an endorsed set of tools Advantages Gets valuable data into the hands of end users Encourages fact-based decision making Accelerates decision making Provides a solution to the shortage of data scientists Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be Copyright ©2016 Cengage Learning. scanned, copiedAll Rights Reserved. or duplicated, May to or posted nota be scanned, publicly copied orwebsite, accessible duplicated, or posted in whole or in to a publicly acce ssible part. website, in whole or in part.  Big Data: Challenges Choice of data, place, and the method of storage Privacy concerns associated with data mining – Corporations harvesting and mining huge amounts of personal data that can be shared with other organizations Security concerns Information Technology for Managers 47 48  Vulnerability How are people exposed by the use of their personal data? Value Is there a value proposition in allowing personal data to be used? 49  End of Review on Business Intelligence 50  End of Review on Business Intelligence 51  Outsourcing Arrangement in which one company contracts with another organization to provide services that could be provided by company employees – Gastronome: CSUF and Aramark Control of the outsourced business function or process – Shared control between the firm contracting for services and the outsourcing service provider – Matrix Management – Requires Communication and Alignment 52  Core Business Process Core business process: – Provides valuable customer benefits – Hard for competitors to imitate – Leveraged widely across many products and markets – Directly impact the organization’s customers – Major cost drivers – Essential for providing services – Ties to your vision and mission 53  Reasons to Outsource (1) Cut costs – Outsourcing providers have a lower cost structure (economies of scale, specialization, or expertise) – Costs of doing business in a developing country are lower than those in a developed country (offshoring) Improve Focus – Outsourcing enables an organization to focus on its most important priorities “Your back room is someone else’s front room.” 54  Reasons to Outsource (2) To Upgrade Capabilities and Services – Partner with world-class service provider – Move logistics operations to third-party providers Manage complex global supply chains Accelerate Time to Market – Outsourcing can provide the high level expertise that an organization might not possess for a start-up 55  What is Commonly Outsourced? IT / IS – Hardware / Software management – Data Center management – Network services – Cyber Security Legal Facilities Finance & Accounting HR 56  Cloud Computing Computing environment in which Services are provided via the Internet Access via remote interfaces (e.g. browsers or programs) Can be deployed in several different ways public cloud computing private cloud computing hybrid cloud computing Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be Copyright ©2016 Cengage Learning. scanned, copiedAll Rights Reserved. or duplicated, May to or posted nota be scanned, publicly copied orwebsite, accessible duplicated, or posted in whole or in to a publicly acce ssible part. website, in whole or in part.  Public Cloud Provider A service provider owns and manages the infrastructure Cloud users (tenants) access shared resources via the Internet Provider can deliver increasing amounts of service on-demand Computing Network Storage No capital investment by cloud users Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be Copyright ©2016 Cengage Learning. scanned, copiedAll Rights Reserved. or duplicated, May to or posted nota be scanned, publicly copied orwebsite, accessible duplicated, or posted in whole or in to a publicly acce ssible part. website, in whole or in part.  Public Cloud Benefits Benefits of public cloud computing Reduced costs Organizations avoid large, up-front investments in hardware Flexible computing capacity Should computing needs change, cloud computing service provider can deliver more or less capacity Increased redundancy in the event of disaster Providers operate multiple data centers distributed geographically Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be Copyright ©2016 Cengage Learning. scanned, copiedAll Rights Reserved. or duplicated, May to or posted nota be scanned, publicly copied orwebsite, accessible duplicated, or posted in whole or in to a publicly acce ssible part. website, in whole or in part. XaaS  Public Cloud Computing Issues Issues with public cloud computing Complex pricing arrangements Wide variations in performance over time Inadequate data security (target rich) Vendor lock-in Outages Multi-cloud Avoids lock-in and outages Increases cost and complexity Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be Copyright ©2016 Cengage Learning. scanned, copiedAll Rights Reserved. or duplicated, May to or posted nota be scanned, publicly copied orwebsite, accessible duplicated, or posted in whole or in to a publicly acce ssible part. website, in whole or in part.  Private Cloud Computing Private cloud computing environment Single tenant cloud Organizations often implement due to concerns that their data will not be secure in a public cloud Divided into two types On-premises private cloud (On prem) Service provider-managed private cloud (i.e., virtual private cloud) Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be Copyright ©2016 Cengage Learning. scanned, copiedAll Rights Reserved. or duplicated, May to or posted nota be scanned, publicly copied orwebsite, accessible duplicated, or posted in whole or in to a publicly acce ssible part. website, in whole or in part.  Hybrid Cloud Computing Hybrid cloud computing environment Composed of both private and public clouds integrated through a private network Organizations typically use the public cloud to run applications with less sensitive security requirements and highly fluctuating capacity needs but run more critical applications on the private cloud Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be Copyright ©2016 Cengage Learning. scanned, copiedAll Rights Reserved. or duplicated, May to or posted nota be scanned, publicly copied orwebsite, accessible duplicated, or posted in whole or in to a publicly acce ssible part. website, in whole or in part.  The Internet of Things (IoT) A network of physical objects (i.e., things) Embedded with sensors, processors, software, and network connectivity capability Enables them to exchange data with the manufacturer of the device, device operators, and other connected devices Sensor: device that is capable of sensing something about its surroundings Pressure, temperature, humidity, pH level, motion, vibration, or level of light Something that’s not a computer that has a computer attached to it. Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be Copyright ©2016 Cengage Learning. scanned, copiedAll Rights Reserved. or duplicated, May to or posted nota be scanned, publicly copied orwebsite, accessible duplicated, or posted in whole or in to a publicly acce ssible part. website, in whole or in part.  End of Review on Cloud Computing 66  Why Learn About Enterprise Systems? Individuals and organizations are moving to highly integrated enterprise systems Perform routine business processes and maintain records about them Support a wide range of business activities: supply chain management, customer relationship management, and product lifecycle management Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be Copyright ©2016 Cengage Learning. scanned, copiedAll Rights Reserved. or duplicated, May to or posted nota be scanned, publicly copied orwebsite, accessible duplicated, or posted in whole or in to a publicly acce ssible part. website, in whole or in part.  Transaction Processing Systems E.g. Order entry, inventory control, payroll, accounts payable, accounts receivable, general ledger, etc. FIGURE 10.1 TPS, MIS/DSS, and special information systems in perspective A TPS provides valuable input to MIS, DSS, and KM systems. Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be Copyright ©2016 Cengage Learning. scanned, copiedAll or Rights Reserved. duplicated, May to or posted notabe scanned, publicly copied orwebsite, accessible duplicated, or posted in whole or in to a publicly acce ssible part. website, in whole or in part.  Traditional Transaction Processing Methods and Objectives Organizations expect TPSs to: Capture, process, and update databases Ensure data is processed accurately and completely Avoid processing fraudulent transactions Produce timely user responses and reports Reduce clerical and other labor requirements Help improve customer service Achieve competitive advantage Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be Copyright ©2016 Cengage Learning. scanned, copiedAll Rights Reserved. or duplicated, May to or posted nota be scanned, publicly copied orwebsite, accessible duplicated, or posted in whole or in to a publicly acce ssible part. website, in whole or in part.  Enterprise Systems Enterprise systems share data across business functions Businesses rely on enterprise systems to perform daily activities in areas such as: Product supply and distribution Sales and marketing Human resources Manufacturing Accounting Taxation Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be Copyright ©2016 Cengage Learning. scanned, copiedAll Rights Reserved. or duplicated, May to or posted nota be scanned, publicly copied orwebsite, accessible duplicated, or posted in whole or in to a publicly acce ssible part. website, in whole or in part.  Enterprise Resource Planning Enterprise resource planning (ERP) Set of integrated programs that manage a company’s vital business operations for an entire organization Business process Set of coordinated and related activities that takes one or more kinds of input and creates an output of value to the customer of that process Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be Copyright ©2016 Cengage Learning. scanned, copiedAll Rights Reserved. or duplicated, May to or posted nota be scanned, publicly copied orwebsite, accessible duplicated, or posted in whole or in to a publicly acce ssible part. website, in whole or in part.  Advantages of ERP Improved access to quality data for operational decision making AI-generated insights and the human- machine learning partnership Elimination of costly, inflexible legacy systems Improvement of work processes Opportunity to upgrade and standardize technology infrastructure Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be Copyright ©2016 Cengage Learning. scanned, copiedAll Rights Reserved. or duplicated, May to or posted nota be scanned, publicly copied orwebsite, accessible duplicated, or posted in whole or in to a publicly acce ssible part. website, in whole or in part.  Supply Chain Management (SCM) System that includes planning, executing, and controlling all activities involved in: Sourcing and procurement of raw materials Converting raw materials to finished products Warehousing and delivering finished product to customers Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be Copyright ©2016 Cengage Learning. scanned, copiedAll Rights Reserved. or duplicated, May to or posted nota be scanned, publicly copied orwebsite, accessible duplicated, or posted in whole or in to a publicly acce ssible part. website, in whole or in part.  Supply Chain Management Processes Process for developing a production plan Sales forecasting Sales and operations plan (S&OP) Demand management Detailed scheduling Materials requirement planning (MRP) Purchasing Production Sales ordering Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be Copyright ©2016 Cengage Learning. scanned, copiedAll Rights Reserved. or duplicated, May to or posted nota be scanned, publicly copied orwebsite, accessible duplicated, or posted in whole or in to a publicly acce ssible part. website, in whole or in part.  Operational Technology ERP systems do not work directly with production machines Data must be passed to the ERP accounting modules to keep an accurate count of finished product inventory Production quality data can be added based on the results of quality tests run on each batch of product produced Typically includes the batch identification number Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be Copyright ©2016 Cengage Learning. scanned, copiedAll Rights Reserved. or duplicated, May to or posted nota be scanned, publicly copied orwebsite, accessible duplicated, or posted in whole or in to a publicly acce ssible part. website, in whole or in part.  Customer Relationship Management Helps a company manage all aspects of customer encounters Marketing, sales, distribution, accounting, and customer service Goal is to understand and anticipate needs of current and potential customers Used primarily in sales, marketing, and service organizations Capture and view data about customers and improve communications Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be Copyright ©2016 Cengage Learning. scanned, copiedAll Rights Reserved. or duplicated, May to or posted nota be scanned, publicly copied orwebsite, accessible duplicated, or posted in whole or in to a publicly acce ssible part. website, in whole or in part.  CRM Sources FIGURE 10.10 Customer relationship management system A CRM system provides a central repository of customer data used by the organization. Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be Copyright ©2016 Cengage Learning. scanned, copiedAll or Rights Reserved. duplicated, May to or posted notabe scanned, publicly copied orwebsite, accessible duplicated, or posted in whole or in to a publicly acce ssible part. website, in whole or in part.  CRM Mobile and Social Media Due to the popularity of mobile devices, shoppers can easily compare products and prices on their mobile phones Can also tweet experiences with a brand to dozens of friends Savvy retailers use their CRM systems to stay on top of what these customers are saying on social networks Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be Copyright ©2016 Cengage Learning. scanned, copiedAll Rights Reserved. or duplicated, May to or posted nota be scanned, publicly copied orwebsite, accessible duplicated, or posted in whole or in to a publicly acce ssible part. website, in whole or in part.  Product Lifecycle Management (PLM) Enterprise business strategy that creates a common repository of product information and processes Supports collaborative creation, management, dissemination, and use of product and packaging definition information Product lifecycle management software Provides a means for managing data and processes associated with various phases of the lifecycle of a product Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be Copyright ©2016 Cengage Learning. scanned, copiedAll Rights Reserved. or duplicated, May to or posted nota be scanned, publicly copied orwebsite, accessible duplicated, or posted in whole or in to a publicly acce ssible part. website, in whole or in part.  Product Lifecycle Management Cycle FIGURE 10.11 Scope of PLM software Using PLM software, organizations can manage the data and processes associated with the various phases of the product lifecycle. Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be Copyright ©2016 Cengage Learning. scanned, copiedAll or Rights Reserved. duplicated, May to or posted notabe scanned, publicly copied orwebsite, accessible duplicated, or posted in whole or in to a publicly acce ssible part. website, in whole or in part.  Computer Aided PLM FIGURE 10.12 CAD, CAE, and CAM software In manufacturing, the model generated in CAD and verified in CAE can be entered into CAM software, which then controls the machine tool. Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be Copyright ©2016 Cengage Learning. scanned, copiedAll or Rights Reserved. duplicated, May to or posted notabe scanned, publicly copied orwebsite, accessible duplicated, or posted in whole or in to a publicly acce ssible part. website, in whole or in part.  Software Product Planning and Development Much of the PLM software discussed is used extensively in the manufacturing industry Software companies also make use of PLM software to streamline their product planning and development efforts Challenges and benefits are still consistent with those of physical product development and manufacturing Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be Copyright ©2016 Cengage Learning. scanned, copiedAll Rights Reserved. or duplicated, May to or posted nota be scanned, publicly copied orwebsite, accessible duplicated, or posted in whole or in to a publicly acce ssible part. website, in whole or in part.  IT/IS Asset Management Tracking procurement, configuration, deployment, patching, break/fix, and decommission of hardware and software assets – What do you have? – Where is it? – Who is responsible for it? – When does it need to be replaced? – Connects to vendor relationship, procurement, and accounting (at a minimum) – Also necessary for all depreciable assets (vehicles, manufacturing equipment, etc.) Information Technology for Managers 83  Overcoming Challenges in Implementing Enterprise Systems (1 of 2) Tips for avoiding a failed implementation Assign a full-time executive to manage (sponsor) Appoint an experienced, independent resource to provide project oversight (project manager) Allow sufficient time to transition from the old way of doing things to the new system (technology acceptance model and diffusion of information systems) Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be Copyright ©2016 Cengage Learning. scanned, copiedAll Rights Reserved. or duplicated, May to or posted nota be scanned, publicly copied orwebsite, accessible duplicated, or posted in whole or in to a publicly acce ssible part. website, in whole or in part.  Overcoming Challenges in Implementing Enterprise Systems (2 of 2) Tips for avoiding a failed implementation Define metrics to assess project progress and to identify project-related risks (SMART requirements) Keep the scope of the project well defined and contained to essential business processes (project scope) Allocate sufficient time and money for training (Project schedule and cost) Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be Copyright ©2016 Cengage Learning. scanned, copiedAll Rights Reserved. or duplicated, May to or posted nota be scanned, publicly copied orwebsite, accessible duplicated, or posted in whole or in to a publicly acce ssible part. website, in whole or in part.  Hosted Software Model (Cloud) Many business application software vendors are pushing the use of the hosted software model (cloud) for businesses Goal is to help customers acquire, use, and benefit from new technology while avoiding associated complexity and high start-up costs Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be Copyright ©2016 Cengage Learning. scanned, copiedAll Rights Reserved. or duplicated, May to or posted nota be scanned, publicly copied orwebsite, accessible duplicated, or posted in whole or in to a publicly acce ssible part. website, in whole or in part.  End of Review on Enterprise Systems 87  Artificial Intelligence in Perspective Artificial intelligence systems Include people, procedures, hardware, software, data, and knowledge needed to develop computer systems and machines that can simulate human intelligence processes Learning, reasoning, and self-correction AI is a complex, interdisciplinary field Involves biology, computer science, linguistics, mathematics, neuroscience, philosophy, and psychology Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be Copyright ©2016 Cengage Learning. scanned, copiedAll Rights Reserved. or duplicated, May to or posted nota be scanned, publicly copied orwebsite, accessible duplicated, or posted in whole or in to a publicly acce ssible part. website, in whole or in part.  Nature of Intelligence (1 of 2) The Turing Test attempts to determine whether a computer can successfully impersonate a human No computer has yet passed the Turing Test Intelligent behavior includes the ability to: Learn from experiences and apply knowledge acquired from experience Handle complex situations Solve problems when important information is missing Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be Copyright ©2016 Cengage Learning. scanned, copiedAll Rights Reserved. or duplicated, May to or posted nota be scanned, publicly copied orwebsite, accessible duplicated, or posted in whole or in to a publicly acce ssible part. website, in whole or in part.  Expert Systems (1 of 2) Expert systems were the precursor of the modern AI systems The decision-making computer systems in AI Designed to be the most advanced and most reliable in solving complex problems, and they work in a specific domain Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be Copyright ©2016 Cengage Learning. scanned, copiedAll Rights Reserved. or duplicated, May to or posted nota be scanned, publicly copied orwebsite, accessible duplicated, or posted in whole or in to a publicly acce ssible part. website, in whole or in part.  Expert Systems (2 of 2) Characteristics of expert systems Highly effective Understandable Reliable Able to process data quickly Capable of critical decision making Capabilities of expert systems Aiding in decision making Data analysis, interpreting input, justifying conclusions Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be Copyright ©2016 Cengage Learning. scanned, copiedAll Rights Reserved. or duplicated, May to or posted nota be scanned, publicly copied orwebsite, accessible duplicated, or posted in whole or in to a publicly acce ssible part. website, in whole or in part.  Vision Systems Hardware and software that permit computers to capture, store, and manipulate visual images and pictures Augmented reality (AR) is a type of vision system that is being used widely in the medical field Vision system software takes computer-generated images and superimposes them on a user’s view of the world through the use of specialized glasses or goggles Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be Copyright ©2016 Cengage Learning. scanned, copiedAll Rights Reserved. or duplicated, May to or posted nota be scanned, publicly copied orwebsite, accessible duplicated, or posted in whole or in to a publicly acce ssible part. website, in whole or in part.  Other AI Applications Genetic algorithms: approach to solving problems based on the theory of evolution; uses the concept of survival of the fittest as a problem-solving strategy Intelligent agent: programs and a knowledge base used to perform a specific task for a person, a process, or another program; also called an intelligent robot or bot Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be Copyright ©2016 Cengage Learning. scanned, copiedAll Rights Reserved. or duplicated, May to or posted nota be scanned, publicly copied orwebsite, accessible duplicated, or posted in whole or in to a publicly acce ssible part. website, in whole or in part.  Artificial Neural Networks A computer system that can recognize and act on patterns or trends that it detects in large sets of data Developed to operate like the human brain Programmed to learn from each iteration during the training phase Process that continues even after the system is implemented Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be Copyright ©2016 Cengage Learning. scanned, copiedAll Rights Reserved.