MIS Notes PDF

Topic 1: Introduction to Information Systems -------------------------------------------- ##### IS Definition - Existed before IT - IS: collects, processes, stores, analyzes and distributes information - Purpose: To deliver the right information to the right people at the right tim...

Topic 1: Introduction to Information Systems -------------------------------------------- ##### IS Definition - Existed before IT - IS: collects, processes, stores, analyzes and distributes information - Purpose: To deliver the right information to the right people at the right time - AKA the interaction between people, processes, data and technology ##### MIS Definition - A business function just as marketing, finance, HR and operations - Tradition role: deals with the planning and development use of IT - New role: acts more as a consultant or adviser ##### CBIS Definition - An IS that uses computer technology to perform some or all its tasks - Basic components of CBIS: IT components, procedures and people ##### BTM Definition - Another name for MIS ##### Digital Transformation Definition - Business strategy that leverages IT to dramatically improve business interactions ##### Benefits from learning IS - Ability to understand your organization\'s IT applications - More awareness of potential security issues - Ability to recommend IT applications - Understanding IT and its rapid developments - Understand how using IT can improve performance - Ability to use IT to start your own business IS: Input-processing-output Data: facts or observations Information: data shaped into a form that is meaningful and useful Knowledge: created by analyzing information; may lead to action Business Intelligence (BI): an organizational process for converting data into useful info and through human analysis, into knowledge Knowledge Management (KM): an organizational process for organizing knowledge Functional Area IS (FAIS): An is that is dedicated to a functional area - HR IS - Accounting IS - Finance IS, etc\... ##### Organizational levels - Operational-level - IS to support elementary activities and transactions - Management-level - IS to support monitoring and controlling of middle managers admin activities - Strategic-level - IS to help senior managers address strategic issues ##### Function Area are not silos! - They are interdependent (need one and another) - The 3 functional areas rely on each other for info ##### IS Positions - A chief information officer (CIO) occupies the most senior IS position in an organization - In charge of IS strategic planning - Ensures the strategic alignment of IS with goals - CIO functions include: - Manager -- ensures the delivery of all IS projects - Leader -- ensures the strategic vision of IS - Communicator -- builds and maintains strong executive relationships ##### Porter's Five Forces model - Used to identify and analyze an industry\'s competitive forces - 1 -- Buyer power - 2 -- Supplier power - 3 -- Threats of new entrants - 4 -- Threats of substitute products or services - 5 -- Rivalry - Role of IS: - Buyer power is high when buyers have more supply - IS used to reduce buyer power (Loyalty Programs) - IS used to reduce the threat of new entrants (entry barrier) - An industry (the org and its competitors) can achieve strategic advantage by getting together to face Forces 2,3, and 4. Topic 2: Organizational Strategy, Competitive Advantage, and IS --------------------------------------------------------------- ##### IS categories in the org: Transactional vs Analytical - Transactional Data - Raw facts with a business process or department - Supports daily operational tasks - Analytical Information - Summarized transactional data - Supports analysis and decision making ##### Defining the IS categories in the organization - Exercise 1: Hotel Industry - TPS: Online reservation system. Focuses on day-to-day activities - Managerial: Produces reports, daily sales. Monitors demand for rooms/meals. Makes tactical decision to improve the organization - Executive: Strong understanding of internal, but also relies on external data. Example: looking for expansion, making decisions with underperforming hotels. ##### Business Process definition - Related activities that create a product of value to the organization - A process involves: - Inputs, Resources and Outputs. - Inputs: Materials, services and information - Resources: People and equipment - Outputs: products or services created by the processes ##### Examples of business processes - Manufacturing: assembling a product - Sales & Marketing: handling customers - Finance & Accounting: managing financial statements and accounts - HR: hiring new employees - MIS: training computer users Topic 3: Data and Knowledge Management -------------------------------------- ##### Data governance - Data governance is a planned approach for managing data across the organization - Ensures data is available, transparent and useful - Fosters "a single version of the truth" - Includes formal processes and policies for handling data - Requires well-defined, unambiguous rules to avoid functional inconsistency - Such rules address creating, collecting, protecting, etc... data ##### Transactional vs Master data - Transactional data is data generated and captured by [operational] systems (TPS) that describe business transactions; stores as tables in a database - Master data represents [core] data, such as employee name, address, etc... which are appliked to multiple transactions; stores as tables in a database ##### The database approach basics - Field: group of characters representing an attribute or characteristic - Record (row): group of related fields describing an entity (person, event) - Table (relation): group of related records of the same type - Database: group of related tables ##### Data warehouse - The database is designed to process large numbers of transactions daily, hence complicated queries might degrade its performance - The database is designed to be updated, which requires extra processing - It is a repository of historical data that are organized by subject to support decision makers - It gathers data from different operational databases throughout an organization - The purpose of it is to aggregate data into a single repository for analysis and decision-making Databases vs Data Warehouses ------------------------------------- ---------------------------------------------- Used to execute business Used to analyze business Detailed data Summarized data Current up to date Snapshot data (historical data) Isolated Data Integrated Data Repetitive access Ad-hoc (when necessary) access Performance sensitive Performance relaxed Read/Update access Mostly read Process oriented (ordering, hiring) Subject oriented (customer, sales) Updates are done as changes occur New info is added, old info is never changed ##### Data warehouse (continued) - ETL ( Extract, Transform and Load ) -- set of processes by which data is extracted from numerous sources, transformed as appropriate and loaded into the Data warehouse - Data mart: low-cost, scaled-down version of a data warehouse designed for end-user needs in a strategic business unit or a department - Business Intelligence: A broad category of applications, technologies and processes for gathering, storing, accessing, and analyzing data to help business users make more informed decisions - BI Tools: - Multidimensional Analysis - Queries & Reporting - Visualization - Data Mining ##### Multidimensional Analysis - Database: 2D tables - Data warehouse: multidimensional - Data mart: multidimensional ##### Big Data - A collection of data so large and complex that it is difficult to manage using traditional database management systems - The 3 characteristics of Big Data - Volume: machine generated data comes in huge volumes - Velocity: the rate at which data flows into the org is rapidly increasing - Variety: big data comes in various formats and such formats can quickly change ##### Knowledge Management - A process that helps manipulate important knowledge that comprises part of the org's memory, usually in an unstructured format - An org's process that captures and stores knowledge in forms that all org's employees can access and apply - KMS cycle: - Create - Capture - Refine - Store - Manage - Disseminate Topic 4: E-Business and E-Commerce ---------------------------------- ##### E-Commerce - The process of exchanging products or services via the internet ##### E-Business - E-commerce with the addition of servicing customers, collaborating with business partners ##### E-Commerce Features - Universal Standards - Social Technology - Ubiquity (anytime, everywhere) - Reach - Richness - Personalization - Customization - Interactivity ##### Richness vs Reach - Richness: the depth of the information - Reach: the number of possible recipients of the information - Internet technologies have diminished the trade-off between R and R - Now it is possible to reach more people with more richness - Example: - Looking into a vacation. Expedia vs Travel agent - Expedia: Richness low, Reach high - Not customized directly for a user, but can intake many at once - Travel agent: Richness high, Reach low - One to one interaction, but limited employees and resources Types of E-Commerce ------------------- ##### Classification based on who is involved - B2C (business to consumer): businesses selling to consumers (e.g. Best Buy) - B2B (business to business): businesses selling to businesses -- represents the highest e-commerce volume (e.g. Dell) - C2C (consumer to consumer): consumers selling to consumers (e.g. eBay) - B2E (business to employee): organization uses e-commerce to provide information and services to its employees (e.g. Online training) - E-Government: using the Internet and e-commerce to deliver information and services Classification based on the medium - M-commerce (mobile commerce): ability to purchase goods and services through a wireless Internet-enabled device - L-commerce (location-based commerce): a form of m-commerce where transactions are targeted to individuals in specific locations (e.g. Uber) ##### Classification based on physical/virtual presence - Bricks and mortar (traditional commerce): sells in a physical store but [not] online - Clicks and mortar sells in a physical store [and] online - Pure play (or virtual): sells [only] online ##### B2B E-commerce - Accounts for 85% of all e-commerce volume - Sell-side Marketplace ##### E-commerce & Porter's 5 forces - Buyer power: - Availability of price and product information - Customers always want the cheapest for more (Pay less Get more). **[EX:]** Airline businesses - Supplier power: - High if suppliers use e-commerce to find new buyers - Low if buyers use e-commerce to find new suppliers - Suppliers want to be paid more and deliver less. - Threat of New Entrants: - High: barriers to entry such as need for physical store are low - Low: first mover advantage may increase barriers to entry for new entrants - **[Ex:]** Southwest Airlines challenged the industry by flying just one kind of airplane, reducing costs and allowing it to offer better deals. This pushed other carriers to spend more to retain their customers - Threat of Substitute Products: - High: new substitutes emerge -- DVD replaced by streaming services - Rivalry: - Existing rivalry in for example an airline, the narrow profit margins between - Fees for exit row upgrades - Checked bags - Even snacks Topic 5 ------- ##### Ethics -- Ethical Framework - Utilitarian: a more practical decision than attractive - Common Good: respect and compassion for all others - Deontology: action is right or wrong based on rules rather than the consequences of the action (e.g., the belief that killing is wrong even in self-defense) ##### Ethics -- Ethical vs Legal ##### Privacy -- codes & policies - Opt-in model: prohibits an org from collecting personal info unless the user agrees to it - Default is to assume consent is [not] given - Opt-out model: permits the collection of personal info until the consumer requests that it stops - Default is to assume consent is given - PIPEDA - Personal Information Protection and Electronic Documents Act - Some exceptions to PIPEDA - Journalistic, artistic or literary purposes - Legal investigation or emergency purposes ##### Privacy -- codes & policies -- PIPEDA Principles Principle Description ------------------------ ----------------------------------------------------------------------------------------------------------------------------------------------- Accountability An org is responsible for PI and shall designate an individual who will be accountable for the org's compliance with the following principles Identifying Purposes The purposes of PI is collected and will be identified by the org Consent Consent is required for the collection of PI Limiting Collection Info shall be collected by fair and lawful means Limiting Use Only relevant info will be collected Accuracy Relevant info will be as accurate as possible Safeguards PI shall be protected by security safeguards Openness An org Individual Access An individual shall be informed of the existence or use of their PI Challenging Compliance An individual shall be able to address a challenge concerning compliance