Organization in which nearly all-significant business processes and relationships
with customers, suppliers, and employees are digitally enabled and key
corporate assets are managed through digital means
Significant business relationships:
good relationships with customers, suppliers, and employees.
(page 9) Internet service firms, such as Google and eBay, are able to replicate
their business models and services in multiple countries, without having to
redesign their expensive fix- cost information system structure.
(page 6) Cloud computing and the growth of the mobile digital platform allows
organizations to rely more on telework, remote work, and distributed decision
(Page 9) The unique ways in which organizations coordinate and organize work
activities, information, and knowledge to produce a product or service.
Ex. Developing a new product, generating and fulfilling an order, creating a
marketing plan, and hiring an employees.
(Page 10): An abstraction of what an enterprise is and how the enterprise
delivers a product or service, showing how the enterprise creates wealth
It describes how a company produces, delivers and sells a product or service to
Canadian Rules on the Sarbanes-Oxley Act (C-SOX):
(Page 12) U.S law passed in 2002 that imposes responsibility on companies and
their management to protect investors by safeguarding the accuracy and integrity
of financial information that is used internally and released externally.
Information Technology (IT):
(Page 12) All the hardware and software technologies a firm needs to achieve its
( Page 12) Interrelated components working together to collect, process, store,
and disseminate information to support decision making, coordination, control
analysis, and visualization in an organization Information:
(Page 13) We mean data that have been shaped into a form that is meaningful
and useful to human beings.
(Page 13) Streams of raw facts representing events occurring in organizations or
the physical environment before they have been organized and arranged into a
form that people can understand and use.
3 Activities in information System:
(Page 13) Captures or collects raw data from within the organization or from its
(Page 13) Converts this raw input into a meaningful form.
(Page 13) Transfers the processed information to the people who will use it or to
the activities for which it will be used.
(Page 13) Output that is returned to appropriate members of the organization to
help them evaluate or correct the input stage.
Dimensions of Information Systems
Computer based information system (CBIS):
(Page 13) Information systems that rely on computer on computer hardware and
software for processing and disseminating information
(Page 13) Physical device that takes data as an input, transforms the data by
executing stored instructions, and outputs information to a number of devices.
Information systems literacy:
(Page 15) Broad based understanding of information systems that includes
behavioral knowledge about organizations and individuals using information
systems as well as technical knowledge about computers.
(Page 15) Knowledge about information technology, focusing on understanding
of how computer-based technologies work. Management Information Systems (MIS): (2 meanings)
1. The study of information systems focusing on their rule in business and
2. A specific category of information system serving middle management.
MIS provide middle managers with reports on the organizations current
performance to monitor and control the business and predict future
Dimensions of information systems:
Organizations, management, and information technology
Makes long-range strategic decisions about products & services and financial
Carries out the programs and plans of senior management
Responsible for monitoring the daily activities of the business.
People such as engineers or architects who design products or services and
create knowledge for the organization
Secretaries or clerks, assist with scheduling and communication at all levels of
Production or service workers:
People who actually produce the product or deliver the service.
Specialized tasks performed in a business organization, including manufacturing
and production, sales and marketing, finance and accounting, and human
The set of fundamental assumptions about what products the organizations
should produce, how and where it should produce them, and for whom they
should be produced. Information Technology
(All can be found on Page 17)
The physical equipment used for input, processing and output activities in an
Detailed, preprogrammed instructions that control and coordinate the computer
hardware components in an information system.
Data Management Technology:
Consists of the software governing the organization of data on physical storage
Networking and Telecommunication Technology:
Physical devices and software that link various computer hardware components
and transfer data from one physical location to another.
Links two or more computers to share data or resources, such as a printer.
Internet is a global “network of networks” that uses universal standards to
connect millions of different networks with more than 1.4 billion users in over 230
countries around the world.
Intranets: Internal Corporate networks based on Internet technology
Private intranets extended to authorized users outside the organization
World Wide Web:
Service provided by the internet that uses universally accepted standards for
storing, retrieving, formatting, and displaying information in a page format on the
Information Technology (IT) infrastructure:
Computer hardware, software, data storage technology, and networks providing
a portfolio of shared IT resources for the organization.
Delivery Information Acquisition Device (DIAD):
(Page 19) UPS drivers use this system to track these data and when they are
being transported delivered etc. Complementary Assets:
(Page 21) Additional assets required to derive value from a primary investment.
Organizational and Management Capital:
(Page 23) Investments in organization and management such as a new business
processes, management behavior, organizational culture, or training.
(Page 24) Seeing systems as composed of both technical and social elements.
Data Management Software
(Page 25) Software used for creating and manipulating lists, creating files and
databases to store data and combining information on reports.
Software as a Service (Saas):
Major business applications are sold online as a service then boxed as a product. Chapter 2
Systems for Different Management Groups
Transaction Processing Systems (TPS):
(Page 36) Computerized systems that perform and record the daily routine
transactions necessary to conduct the business; they serve the organizations
Management information systems (MIS):
(Page 37) A specific category of information system serving middle management.
MIS provide middle managers with reports on the organizations current
performance to monitor and control the business and predict future performance.
Decision Support Systems (DSS):
(Page 38) Information Systems at the organizations management level that
combine data and sophisticated analytical models or data analysis tools to
support semi structured and unstructured decision making.
(Page 39) A contemporary term for data and software tools for organizing,
analyzing and providing access to data to help managers and other enterprise
users make more informed decisions.
Executive Support System (ESS):
(Page 39) Information systems at the organizations strategic level designed to
address unstructured decision making through advanced graphics and
(Help senior management make decisions and address non routine decisions)
(Page 39): Web interface for presenting integrated personalized content from a
variety of sources.
(Page 39) Displays all of a firms key performance indicator as graphs and charts
on a single screen to provide a one-page overview of all the critical
measurements necessary to make key executive decisions.
Systems for Linking the Enterprise:
(Page 42) Systems that can coordinate activities, decisions, and knowledge
across many different functions, levels and business units in a firm. Include enterprise systems, supply chain management, and knowledge management
Enterprise Systems aka Enterprise Resource Planning (ERP):
(Page 43) Integrated enterprise-wide information systems that coordinate key
internal processes of the firm.
Supple Chain Management (SCM):
(Page 43) Integration of supplier, distributer, and customer logistics requirement
into one cohesive process.
Supply Chain Management System:
(page 43) Information systems that automate the flow of information between a
firm and its suppliers in order to optimize the planning, sourcing, manufacturing,
and delivery of products and services.
(Page 43) Information Systems that automates the flow of information across
organizational boundaries and links a company to its customers, distributers or
Customer Relationship Management (CRM):
(Page 43) Business and technology discipline that uses information systems to
coordinate all of the business processes surrounding firms‟s interactions with its
sales, marketing and service.
Customer Relationship Management Systems:
(Page 43) Information systems that track all the ways in which a company
interacts with its customers and analyze these interactions with its customers and
analyze these interactions to optimize revenue, profitability, customer
satisfaction, and customer retention.
Knowledge Management Systems (KMS):
(Page 43): Systems that support the creation, capture, storage, and
dissemination of the firms expertise and knowledge.
(Page 43) The set of processes developed in an organization to create, gather,
store, maintain, and disseminate the firm‟s knowledge.
E-Business, E-Commerce, and E-goverment
Electronic Business (e-business):
(Page 44) The use of the internet and digital technology to execute all the
business processes in the enterprise. Includes e-commerce as well as processes for the internal management of the firm and for the coordination with suppliers
and other business partners.
Electronic Commerce (e-commerce):
(Page 45) The process of buying and selling goods and services electronically
involving transactions using the internet, networks, and other digital technologies.
(Page 45) Refers to the application of the internet and networking technologies to
digitally enable government and public sector agencies‟ relationship with
citizens, businesses and the other arms of the government.
Systems for Collaboration and Teamwork:
(Page 44) Working with others to achieve shared and explicit goals.
(Page 45): Part of the organization business structure for getting things done.
They have a specific mission that someone in the business assigned to them,
(Page 49): Computer based stimulated environment intended for its users to
inhabit and interact via graphical representation called avatars.
Virtual Meeting Systems:
(Page 49) Video Conferencing and Web Conferencing technologies.
(Page 49) High end video conferencing system where an integrated audio and
visual environment that allows a person to give the appearance of being present
at a location other than his or hers true physical location.
The Information Systems Function in Business
The Information Systems Department
(Page 55) Highly trained technical specialists who write the software instructions
(Page 55) Specialists who translate business problems and requirements into
information requirements and systems, acting as a liaison between the
information systems department and the rest of the organization Information Systems Managers:
(Page 55) Leaders of the various specialists in the information systems
Information systems department:
(Page 55) The formal organizational unit that is responsible for the information
systems functions in the organization.
Chief Information Officer (CIO):
(Page 55) Senior manager in charge of the information systems functions in the
Chief Information Security Officer (CISO):
(Page 55) Where information systems security is separated from physical
Chief Privacy Officer (CPO):
(Page 55) Responsible for ensuring that the company complies with the existing
data privacy laws.
Chief Knowledge Officer (CKO):
(Page 55) Senior executive in charge of the organization‟s knowledge
(Page 55) Those employees in an organization outside the information systems
group for whom applicants are developed and who will use the application or
(Page 55): Strategies and policies for using information and technology within sn
organization, specifying the decision rights and accountabilities to ensure the
information technologies supports the organizations strategies and objections. Chapter 3
Organization (Technical Definition)
(Page 67): A stable, formal, social, structure, that takes resources from the
environment and processes them to produce outputs.
(Page 67): Precise rules, procedures, and practices that have been developed to
cope with expected situations.
(Page 70) Technologies with a disruptive impact on industries on businesses,
rendering existing products, services, and business models obsolete.
Transaction Cost Theory:
(Page 72) A theory where firms and individuals seek to economize on transaction
costs, as much as they do on production costs.
(Page 72): Economic theory that views the firm as a nexus of contracts among
self-interested individuals who must be supervised and managed.
Competitive Forces Model:
(Paged 76): Model used to describe the interaction of external influences,
specifically threats and opportunities, that affect an organizations strategy and
ability to compete.
(Page 78): Competitive strategy for creating brand loyalty by developing new and
unique products and services that are not easily duplicated by competitors.
Efficient Customer Response System:
(Page 78): Directly links consumer behavior to distribution and production and
supply chains. Ex) Walmart‟s continuous replenishment system provides an
efficient customer response.
Electronic Payment System:
(Page 79): The use of digital technologies, such as credit cards, smart cards, and
Internet-based payment systems, to pay for products and services electronically.
(Page 79): Ability to offer individually tailored products or services using the
same production resources as mass production. Switching Costs:
(Page 80): The expense a customer or company incurs in lost time and
expenditure of resources when changing from one supplier or system to a
competing supplier or system.
Value Chain Model:
(Page 84) Model that highlights the primary or support activities that add a
margin of value to a firm‟s products or services where information systems can
be best applied to achieve a competitive advantage,
(Page 84) Activities most directly related to the production and distribution of a
firms product or services.
(Page 85): Activities that make the delivery of a firm‟s primary activities possible.
Consist of the organizations infrastructure, human resources, technology, and
(Page 85) Setting strict standards for products, services, or activites and
measuring organizational performance against those standards.
(Page 85): The most successful solutions or problem-solving methods that have
been developed by a specific organization or industry.
(Page 86): Customer-driven network of independent firms that use information
technology to coordinate their value chains to collectively produce a product or
service for a market.
(Page 87) An activity for which a firm is a world class leader
(Page 88) Model of a strategic system at the industry level based on the concept
of a network where adding another participant entails zero marginal costs but can
create much larger marginal gains.
(Page 88) Organizations using networks to link people, assets, and ideas to
create and distribute products and services without being limited to traditional
organization boundaries or physical location. Buisness Ecosystems:
(Page 89) Loosely coupled but interdependent networks of supplier, distributers,
outsourcing firms, transportation service firms, and technology manufacturers. Chapter 4
(Page 102): Principles of right and wrong that can be used by individuals acting
as a free moral agents to make choices to guide their behavior.
(Page 104) The rights that individuals and organizations have with respect to
information that pertains to themselves.
(Page 105): The use of computers to combine data form multiple sources and
create electronic dossiers of detailed information on individuals.
Nonobvious Relationship Awareness (NORA):
(Page 106): Technology that can find obscure hidden connections between
people or other entities by analyzing information from many different sources to
(Page 107) Accepting the potential costs, duties, and obligations for the
decisions one makes.
(Page 107) The mechanisms for assessing responsibility for decisions made and
(Page 107) Extends the concept of responsibility further to the area of laws.
(Page 107) Is a related feature of law-governed societies and is a process in
which laws are known and understood and there is an ability to appeal to higher
authorities to ensure that the laws are applied correctly.
(Page 108) Do unto other as you would have them do unto you.
Immanuel Kant’s Categorical Imperative:
(Page 108) If an action is not right for everyone to take, it is not right for anyone.
Descartes rule of change:
(Page 108) If an action cannot be taken repeatedly, it is not right to take at all.
(Page 108) Take the action that achieves the higher or greater value. Risk Aversion Principle:
(Page 108) Take the action that produces least harm or the least potential cost.
Ethical ―no free lunch‖ rule:
(Page 108) Assume that virtually all tangible an intangible objects are owned by
someone else unless there is a specific deceleration otherwise.
(Page 109) is the claim of individuals to be left alone, free from surveillance or
interference from other individuals or organizations, including the state.
Informed Consent (Page 110):
Can be defined as consent given the knowledge of all the facts needed to make
a rational decision.
Safe harbor (page 110):
Is a private, self-regulating policy and enforcement mechanism that meets the
objectives of government regulators and legislation but foes not involve
government regulation or enforcement.
Cookies (page 111):
Are small text files deposited on a computer hard drive when a user visits webs
Web beacons (page 112):
Also known as web bugs, are tiny objects invisibly embedded in e-mail messages
and web pages that are designed to monitor the behavior of the user visiting a
site or sending email.
Spyware (112): can secretly install itself on an Internet users computer by
piggybacking on larger applications.
Banner ads (112): a graphical display on a web page used for advertising. The
banner is linked to the advertisers site so that a person clicking on it will be taken
Opt-in (113): model of informed consent that prevents an organization from
collection any personal information unless the individual specifically takes an
action to approve information collection and use.
Opt-out (113): model of informed consent that permits the collection of personal
information until the consumer specifically requests the data not be collected.
PSP (113): Enables automatic communication of privacy policies between an e-
commerce site and its visitors. Intellectual property (115): is considered to be intangible property created by
individual or corporations.
Trade secret (115): any intellectual work or product used for a business
purpose that can be classified as belongings to that business, provided it is not
based on information the public domain.
Copyright (115): is a statutory grant that protects creators of intellectual property
from having their work copied by others for any purpose for a period of at least
Patent (116): grants the owner an exclusive monopoly on the ideas behind an
invention for between 17 and 20 years.
MP3 (117): music files on the Internet for a number of years.
Digital millennium copyright Act – DCMA (117): of 1998 is providing some
Computer crime (121): is the commission of illegal acts through the use of a
computer or against a computer system.
Computer abuse (121): is the commission of acts involving a computer that may
not be illegal but considered unethical.
Spam (121): is junk email sent by an organization or individuals and businesses.
Digital Divide (123): exists in Canadian schools, with schools in high-poverty
areas less likely to have computers, high-quality educational technology
programs, or Internet access availability for their students.
Repetitive stress injury –RSI (124): most common occupation disease today,
occurs when muscle groups are forced through repetitive actions often with high-
impact loads (such as tennis) or tens of thousands of repetitions under low-
impact loads (such as working at a computer keyboard).
Carpal tunnel syndrome-CTS (124): most common kind of computer-related
RSI, in which pressure on the median nerve through the wrist‟s bony structure,
called carpal tunnel, produces pain.
Computer vision syndrome – CVS (124): refers to any eyestrain condition
related to display screen use in desktop computers, laptops, e-readers,
smartphones, and handheld video games.
Technostress (124): which is stress induced by computer Chapter 5
Mainframe (142): largest category of computer, used for major business
Minicomputers (142): middle-range computer used in systems for universities,
factories or research laboratories.
Midrange computer (142): middle size computer htat is capable of supporting
the computing needs of smaller organizations or of managing networks of other
Wintel PC (142): any computer that uses intel microprocessors (or compatible
processors) and a windows operating system.
Client/server computing (142): a model for computing that splits processing
between clients and servers on a network, assigning functions to the machine
most able to perform the function.
Clients (142): the user point-of-entry for the required function in client/server
computing. Normally a desktop computer, workstation, or laptop computer.
Server (142): computer specifically optimized to provide software and other
resources to other computers over a network.
Multitiered –N-tier client.server architectures (144): in which the work of the
entire network is balanced over several different levels of servers, depending on
the kind of service being requested.
Web server (144): will serve a web page to a client in response to a request for
Application server (144): software that handles all application operations
between browser-based on computers and a company‟s back-end business
applications or databases.
Windows (144): Microsoft family of operating systems for both network servers
and client computers. The most recent version is windows 7.
Cloud computing (145): refers to a model of computing that provides access to
a shared pool of computing resources (computers, storage, applications, and
services) over a network, often the Internet.
Moore’s Law (145): assertion that the number of components on a chip doubles
each year. Nanotechnology (146): uses individual atoms and molecules to create computer
chips and other devices thousands of times smaller than current technologies
Technology standards (149): specifications that establish the compatibility of
products and the ability to communicated in a network.
Blade servers (151): ultrathin computers consisting of a circuit board with
processors, memory, and network connections stored in racks.
Unix (151): Open-source operating system for all types of computers, which is
machine independent and supports multiuser processing, multitasking, and
networking. Used in high-end workstations and servers.
Linux (151): reliable and compactly designed operating system that is an
offshoot of Unix and that can run on many different hardware platforms and is
available free or at very low cost. Used as an alternative to UNIX and Windows
Operating system (151): software that manages the resources and activities of
Chrome OS (151): provides a lightweight operating system for cloud computing
Android (151): a mobile operating system developed by android, Inc purchased
by Google, based on the open handset alliances open source flexible,
upgradeable mobile platform.
Multi-touch (151): users use their fingers to manipulate objects on the screen.
Storage area networks –SANS (154): connect multiple storage devices on
separate high-speed network dedicated to storage.
Web hosting service (154): maintains a large web server, or series of servers,
and provides gee-paying subscribers with space to maintain their web sites.
Legacy systems (155): are generally older transaction processing systems,
created for mainframe computers, that continue to be used to avoid the high cost
of replacing or redesigning them, but the term also refers to any older system no
matter what infrastructure it uses.
Netbooks (155): small low-cost, lightweight subnotebook optimized for wireless
communication and Internet access. Grid computing (155): involves connecting geographically remote computers
into a single network to create a virtual supercomputer by combining the
computational power of all computers on the grid.
Virtualization (156): is the process of presenting a set of computing resources
(such as computerizing power or data storage) so that they can all be accessed
in ways that are not restricted by physical configuration or geographic location.
Public cloud (157): is maintained by an external service provider, such as
amazon web services, accessed through the Internet, and available to the
Private cloud (157): is a proprietary network or a data center that ties together
servers, storage, networks, data and application as a set of virtualized services
shared by users inside a company.
Utility computing (157): model of computing in which companies pay only for
the information technology resources they actually use during a specified time
period, also called on-demand computing or usage-based pricing.
Green computing –green IT (158): refers to practices and technologies for
designing, manufacturing, using, and disposing of computers, servers, and
associated devices such as monitors, printers, storage devices and networking
and communications systems to minimize impacts on the environment.
Microprocessors (158): now feature multiple processor cores (which perform
the reading and execution of computer instructions) on a single chip.
Multicore processor (158): is an integrated circuit to which two or more
processor cores have been attached for enhances, performance, reduced power
consumption, and more efficient simultaneous processing of multiple tasks.
Autonomic computing (158): is an industry-wide effort to develop systems that
can configure themselves, optimize and tune themselves, heal themselves when
broken, and protect themselves from outside intruders and self-destruction.
Open source software (160): is software produced by a community of several
hundred thousand programmers around the world.
Java (161): is an operating-system-independent, processor-independent, object-
oriented programming language that has become the leading interactive
environment for the web.
Web browser (161): is easy-to-use software tool with a graphical user interface
technique for creating interactive web applications that prevent this type of
Web services (162): refers to a set of loosely coupled software components that
exchange information with each other using universal web communication
standards and languages.
Extensible Markup language –XML (162): general-purpose language that
describes the structure of a document and supports links to multiple documents
allowing data to manipulated by the computer. Used for both web and non-web
Hypertext markup language –HTML (162): is a page description language for
specifying how text, graphics, video, and sound are placed on a web page
Simple Object Access Protocol (162): is a set of rules for structuring manages
that enables applications to pass data and instructions to one another.
Service-oriented architecture – SOA (163): a set of self-contained services that
communicate with each other using XML or SOAP to create a working software
Software package (164): is a pre-written commercially available set of software
programs that eliminates the need for a firm to write its own programs for certain
functions, such as payroll processing or order handling.
Outsourcing (164): enables a firm to contract custom software development or
maintenance of existing legacy programs to outside firms, which often operate
offshore in low-wage areas of the world.
Call-centre (164): an organizational function responsible for handling customer
service issues by telephone and other channels.
Software as a Service – SaaS (164): services for delivering and providing
access to software remotely as web-based service.
Service level agreement – SLA (164): a formal contract between customers
and their service providers that defines the specific responsibilities of other
service provider and the level of service expected by the customer.
Mashup (165): Individual users and entire companies mix and match in this way
to create their own customized applications and share information. Apps (165): are small pieces of software that run on the Internet, a computer, or
a cell phone and are generally delivered over the internet.
Scalability (165): refers to ability of a computer, product, system, or network to
expand to serve a large number of users without breaking down.
Total cost of ownership- TCO (166): model can be used to analyze these direct
and indirect costs to help firms determine the actual cost of specific technology
implementations. Chapter 6
Bit (178): represents the smallest unit of data a computer can handle.
Byte (178): represents a single character, which can be a letter, a number or
Field (178): A grouping of characters into a word, a group of words, or a
complete number (such as a person‟s name or age).
Record (178): a group of related fields, such as the student‟s name, the course
taken, the date, and the grade, a group of records of the same type is called a
Entity (178): a person, place, thing or event about which we store and maintain
Attribute (178): Characteristic or quality describing a particular entity.
Data redundancy (179): is the presence of duplicate data in multiple data files
so that the same data are stored in more than one place or location.
Data inconsistency (179): the presence of different values for the same attribute
when the same data are stored in multiple locations.
Program-data dependence (180): refers to the coupling of data stored in files
and specific programs required to update and maintain those so that changes in
programs require changes to the data.
Database (181): is a collection of data organized to serve many applications
efficiently by centralizing the data and managing redundant data.
Database management system-DBMS (181): is software that permits an
organization to centralize data, manage them efficiently, and provide access to
the stored data by application programs.
Logical view (181): presents data as they would be perceived by end users or
business specialist while physical view shows how data are actually organized
and structured on physical storage media.
Relational DBMS (182): represents data as two-dimensional tables. – tables are
referred to as files.
Records (183): actual information about a single supplier that resides in a table
is called a row, rows are commonly referred to as records or even tuples. Key field (183): the field for supplier_number in the SUPPLIER table uniquely
identifies each record so that the record can be retrieved, updated, or sorted.
Primary key (183): the unique identifier for all the information any row of the
table, and this primary key cannot be duplicated.
Foreign key (183): when the field supplier_number appears in the PART table, is
essentially a lookup field to look up data about the supplier of a specific part.
Multimedia (184): DBMS designed for organizing structured data into rows and
columns are not well suited to handling graphics-based.
Object-oriented DBMS (184): stores the data and procedures that act on those
data as objects that can be automatically retrieved and shared.
Object—relational DBMS (184): systems are now available to provide
capabilities of both object-oriented and relational DBMS.
Data definition (184): capability to specify the structure of the content of the
Data dictionary (185): an automated or manual file that stores definitions of data
elements and their characteristics.
Data manipulation language– specialized language (185): that is used to add,
change, delete, and retrieve the data in the database.
Structured Query Language – SQL (185): The standard data manipulation
language for relational database management systems.
Normalization (187): process of creating small, stable, yet flexible and adaptive
data structures from complex groups of data.
Repeating data groups (187): there can be many parts on a single order to a
Referential integrity (187): rules to ensure that relationships between coupled
tables remain consistent.
Entity-relationship diagram: relationships among the entities SUPPLIER,
PART, LINE_ITEM, and ORDER.
Data warehouse (189): is a database that stores current historical data of
potential interest to decision makers throughout the company. Data marts (190): is a subset of the data warehouse in which a summarized or
highly focused portion of the organizations data is put in a separate database for
specific population users.
Online analytical processing –OLAP (190): supports multidimensional data
analysis, enabling users to view the same data in different ways using multiple
Data mining (191): Is more discovery-driven. Data mining provides insights into
corporate data that cannot be obtained with OLAP by finding hidden patterns and
relationships in large databases and inferring rules from them to predict future
Predictive analytics (192): use data mining techniques, historical data, and
assumptions about future conditions to predict outcomes of events, such as the
profitability that customer will respond to an offer or purchase a specific product.
Text mining (192): tools are now available to help businesses analyze these
data. Tools extract key elements from large unstructured data sets, discover
patterns and relationships, and summarize the information.
Web mining (192): the discovery and alaysis of useful patterns and information
from the world wide web.
Database server (194): in a client/ server environment, the DBMS resides on a
Information policy (195): specifies the organization‟s rules for sharing,
dissemeinating, acquiring, standardizing, classifying, and inventorying
Data administration (195): is responsible for the specific policies and
procedures through which data can be managed as an organizational resource.
Data governance (195): policies and processes for managing the availability,
usability, integrity, and security of the firm‟s data.
Database administration (195): a special organizational function for managing
the organizations data resources, concerned with information policy, data
planning, maintenance of data dictionaries, and data quality standards.
Data quality audit (196): which is a structured survey of the accuracy and level
of completeness of the data in an information system. Data cleansing (196): also known as data scrubbing, consists of activities for
detecting and correcting data in a database that are incorrect, incomplete,
improperly formatted, or redundant. Chapter 7
Networking and Communication Trends:
- 2 different types of networks:
1) Telephone networks: (page 207) historically handled voice communication
2) Computer networks: Handled data traffic
- The two networks are converging into single digital network using shared
Internet-based standards and equipment
Broadband: High-speed transmission technology
Network: (page 208) consists of two or more connected computers
Network interface card (NIC): each computer on the network contains a
network interface device. Built into the motherboard to enable it to connect to a
Network operating system (NOS): routes and manages communications on the
network and coordinates network resources.
Hubs: (page 209) very simple devices that connect network components,
sending a packet of data to all other connected devices
Switch: has more intelligence than a hub and can filter and forward data to a
specified destination on the network
Router: a communications processor used to route packets of data through
different networks, ensuring that the data sent gets to the correct address
Networks in large companies: Consists of a large number of these small local
area networks linked to other local area networks and to firm-wide corporate
networks. Powerful serves support a corporate web site, a corporate intranet,
and perhaps an extranet.
Key Digital Networking Technologies:
- Contemporary digital networks and the internet are based on 3 key
1) Client/Server Computing: (page 210) a distributed computing model in which
some of the processing power is located within small, inexpensive client
computers and resides literally on desktops, laptops, or on handheld devices.
2) Packet Switching: a method of slicing digital messages into parcels called
packets, sending the packets along different communication paths as they come available, and then reassembling the packets once they arrive at their
3) TCP/IP and Connectivity: (page 211)
Protocol: a set of rules and procedures governing transmission of information
between two points in a network
Transmission Control Protocol (TCP): handles the movement of data between
computers and establishes a connection between the computers, sequences the
transfer of packets, and acknowledges the packages sent.
Internet Protocol (IP): responsible for the delivery of packets and includes the
disassembling and reassembling of packets during transmission.
TCP/IP four-layered reference model (page 211)
1. Application layer: enables client application programs to access the other
layers and defines the protocols that applications use to exchange data.
Ex. Hypertext Transfer Protocol (HTTP), used to transfer web page files.
2. Transport layer: responsible for providing the application later with
communication and packet services. This later includes TCP and other
3. Internet layer: responsible for addressing, routing, and packaging data
packets called IP datagrams. IP is used in this layer.
4. Network layer: responsible for placing packets on and receiving them from
the network medium, which could be any networking technology
Signals: Digital vs. Analog (pg. 212)
- 2 ways to communicate a message in a network
Analog signal: represented by a continuous waveform that passes through a
communications medium and has been used for voice communication. Ex.
Telephone headset, speaker on your computer, iPod earphone (all create analog
wave forms that your ear can hear)
Digital signal: discrete, binary waveform rather than a continuous waveform.
They communicate information as strings of two discrete states: 1 bit and 0 bits,
which are represented as on-off electrical pulses.
Modem (modulator-demodulator): (pg. 212)
- Without modems, computers could not communicate with one another
using analog networks (include telephone system and cable networks) Cable modems: connect your computer to the Internet using a cable network
DSL modems: connect your computer to the Internet using a telephone
company‟s landline network
Wireless modems: perform the same function as traditional modems,
connecting your computer to a wireless network that could be a cell phone
network or Wi-Fi network
Types of Networks:
Local Area Networks:
Local area network (LAN): (page 212) a telecommunication network that
requires its own dedicated channels designed to connect personal computers
and other digital devices within a 500-metre radius
Peer-to-peer network: (page 213) treats all processors equally and is used
primarily in small networks with 10 or fewer users.
(Page 213) In LANs using the windows server family of operating systems,
Peer-to-peer architecture is called the workgroup network model, in which a
small group of computers can share resources, such as files, folders, and
printers, over the network without a dedicated server.
The Windows domain network model, in contrast, uses a dedicated server to
manage the computers in the network.
Topology: (page 213) the way components are connected together
3 major LAN topologies:
1) Star topology: al devices on the network connect to a single hub. In an
extended star network, multiple layers of hubs are organized into a
2) Bus topology: one station transmits signals, which travel in both
directions along a single transmission segment. Most common Ethernet
3) Ring topology: connects network components in a closed loop.
Messages pass from computer to computer in only one direction around
the loop, and only one station at a time may transmit.
Wide area networks (WANs): span broad geographical distances – entire
regions, provinces, continents, or the entire globe. Consists of cable, satellite and
microwave technologies. Ex. Most universal and powerful WAN – the Internet. Metropolitan area network (MAN): network that spans a metropolitan area,
usually a city and its major suburbs. Its geographic scope falls between a WAN
and a LAN.
Twisted wire: consists of strands of copper wire twists in pairs and is an older
type of transmission medium. Used to transmit analog phone conversations, but
can be used for data transmission.
Coaxial Cable: similar to that used for cable television, consist of thickly
insulated copper wire that can transmit a larger volume of data than twisted wire
Fibre Optic and Optical Networks: consist of bound strands of clear glass fibre.
Data are transformed into pulses of light. Fibre-optic cable is fast, light, and more
durable than wire media, and is well suited to systems requiring transfers of large
volumes of data.
Wireless Transmission Media: based on radio signals of various frequencies.
- 3 kinds of wireless networks used by computers:
1) Microwave systems: (page 214) both terrestrial and celestial, transmit
high-frequency radio signals through the atmosphere and are widely used
for high-volume, long-distance, point-to-point communication. Follow a
straight line and do not bend with the curvature of the earth.
2) Cellular systems: (page 215) use radio waves and a variety of different
protocols to communicate with radio antennas (Towers) places within
adjacent geographic areas called cells. Cell phone: a device that
transmits voice or data, using radio waves to communicate with radio
Transmission Speed: (page 215) the total amount of digital information hat can
be transmitted through any telecommunications medium is measured in bits per
Hertz: (page 215) Measures the number of cycles per second that can be sent
through that medium. One hertz = one cycle of the medium.
Bandwidth: (page 215) range of frequencies that can be accommodated on a
particular telecommunications channel. The bandwidth is the difference between
the highest and lowest frequencies that can be accommodated on a single
channel. A channel is the link by which data or voices are transmitted between
sending and receiving devices in a network. The greater the range of frequencies, the greater the bandwidth, the greater the channel‟s transmission
Internet service provider (ISP): a commercial organization with a permanent
connection to the Internet that sells temporary connections to retail subscribers.
Digital subscriber line (DSL): technologies operate over existing telephone
lines to carry voice, data, and video at transmission rates ranging from 385 kbps
all the way up to 9 mbps.
Cable Internet connections: provided by cable television venders use digital
cable coaxial lines to deliver high-speed Internet access to homes and
T1 and T3: international telephone standards for digital communication. They are
leased. The Internet doesn‟t provide similar guaranteed service levels, but simply
Dedicated lines: suitable for businesses or government agencies requiring high-
speed guaranteed service levels.
T1 lines: offered guaranteed delivery at 1.54 mbps
T3 lines: offer delivery at 45 mbps:
Internet Protocol (IP) address: (page 216) unique address every computer is
assigned. Currently is a 32-bit number represented by four strings of numbers
ranging from 0 to 255 separated by periods.
The Domain Name System (DNS): (page 216) converts domain names to IP
Domain name: the English-like name that corresponds to the unique 32-bit
number IP address for each computer connected to the Internet.
Internet Architecture and Governance: (page 218) Internet data traffic is
carried over transcontinental high-speed backbone networks that generally
operate today in the range of 45 mbps to 2.5 gbps.
IPv6: (page 219) allows 128 bit addresses, a quadrillion possible addresses
Internet2: consortia of agencies working to provide an new robust and high-
bandwidth version of the Internet CANARIE: Canadian equivalent of Internet2
Internet Services: a client computer connecting to the Internet has access to a
variety of services such as the following:
Telnet: Logging onto one computer system and doing work on another
File Transfer Protocol (FTP): Transferring files from computer to computer
Newsgroups: discussion groups on electronic bulletin boards
World Wide Web: retrieving, formatting, and displaying information (including
text, audio, graphics and video) using hypertext links
E-mail: (page 222) enables messages to be exchanged from computer to
computer and document sharing
Instant messaging and chat: interactive conversations. A type of chat services
that enables participants to create their own private chat channels.
Voice over IP (VoIP): (page 223) delivers voice information in digital form using
packet switching over the Internet.
Videoconferencing/voice communications: (page 224) participants see each
other over video screens
Unified communications: integrates all communications (voice, data, etc.) into
one stream to allow users to switch back and forth between different
Presence technology: shows whether a person is available to receive a call
Virtual Private Networks (VPN): (page 225) a secure, encrypted, private
network that has been configured within a public network to take advantage of
the economies of scale and management facilities of large networks, such as the
Web site: collection of web pages linked to a home page
Hypertext Markup Language (HTML): formats documents and incorporates
dynamic links to other documents and pictures stores in the same or remote
computers Hypertext Transfer Protocol (HTTP): the communications standard used to
transfer pages on the web
Uniform resource locator (URL): the address of a specific resource on the
Web Servers: (page 227) a software for locating and managing stores web
Search engines: a tool for locating specific sites or information on the Internet
Search engine marketing: use of search engines to deliver in their results
sponsored links for which advertisers have paid. Matches consumer interest with
advertising messages at the right moment.
Search engine optimization (SEO): (page 228) the process of improving the
quality of web traffic to a website to increase the ranking of the site on popular
search engines and to generate more site visitors.
Internet Agent Shopping Bots: (page 229) use intelligent agent software for
searching the Internet for shopping information. Helps online shoppers locate
and evaluate products or services they may wish to purchase.
Web 2.0: second-generation interactive Internet-based services that enable
people to collaborate, share information, and create new services and content
online. Ex. Social networks, blogs, RSS, wikis.
Blogs: (page 230) a web log, a personal website that typically contains a series
of chronological entries (newest to oldest) by its author(s) and links to related
web pages. Ex. Publishing stories, and opinions.
Blogroll: a collection of links to other blogs
Trackbacks: a list of entries in other blogs that refer to a post on the first blog
Blogging: act of creating a blog
Blogosphere: the totality of blog-related web sites
Rich Site Summary/Really Simple Syndication (RSS): pulls website content
so that it can be used in another setting. Feeds it automatically to subscribers‟
Wikis: collaborative websites where visitors can add, delete or modify content on
the site, including the work of previous authors Social networking: Online community for expanding users business or social
contacts by making connections through their mutual business or personal
Web 3.0: The Future Web: (page 231) the promise of a future vision of the web
where all digital information is woven together with intelligent search capabilities
into a single meaningful experience. Sometimes referred to as the Semantic
Cellular Systems: (page 232) use several competing standards. Global System
for Mobile Communication (GSM) is used outside of North America. GSM‟s
strength is its international roaming capability.
Code Division Multiple Access (CDMA): the major standard in North America.
Transmits over several frequencies, occupies the entire spectrum, and randomly
assigns users to a range of frequencies over time.
3G and 4G networks (page 232)
Bluetooth: 802.15 wireless networking standard with a 10-metre area using low-
power, radio-based communication and can transmit up to 722 kbps. Useful for
creating small personal area networks (PANs) computer network used for
communication among additional devices (including telephones PDAs) that are
close one person.
Wi-Fi and Wireless Internet Access: 802.11 set of standards for wireless LANs
Hotspots: (page 234) consist of one or more access points providing wireless
Internet access in a public place
Worldwide Interoperability for Microwave Access (WiMax): (page 235)
popular term for IEEE Standard 802.16. A wireless access range of up to 31
miles and transmission speed of up to 75 mbps.
Radio Frequency Identification (RFID): a system that provides a powerful
technology for tracking the movement of goods throughout the supply chain. Use
tiny tags with embedded microchips containing data about an item and its
location to transmit radio signals over a short distance to RFID readers.
Wireless Sensor Networks (WSNs): (page 236) networks of interconnected
wireless devices that are embedded into the physical environment to provide
measurements of many points over large spaces. Chapter 8
System Vulnerability and Abuse: (page 246)
Security: refers to the policies, procedures, and technical measures used to
prevent unauthorized access, alteration, theft or physical damage to information
Controls: method, policies and organizational procedures to ensure the safety of
the organization‟s assets; the accuracy and reliability of it‟s records, and
operational adherence to management standards
Why Systems are Vulnerable: (page 246-247)
- When large amounts of data are stored in electronic form, they are
vulnerable to many more kinds of threats than when they existed in
- Through communications networks, information systems in different
locations are interconnected
- The potential for unauthorized access, abuse of fraud is not limited to a
single location but can occur at any access point in the network
Internet Vulnerabilities: (page 247) large public networks such as the Internet
for more vulnerable than internal networks because they are open to virtually
anyone. When abuses occur, they can have an enormously widespread impact.
(Read that part of the chapter/slides for other information ^^)
Wireless Security Challenges: (page 248) radio frequency bands are easy to
Service set identifiers (SSIDs): identifies the access points in a Wi-Fi network
are broadcast multiple times and can be picked up fairly easily by intruder‟s
War Driving: wireless networks in many locations don‟t have basic protections
against war driving, in which eavesdroppers drive by buildings or park outside
and try to intercept wireless network traffic
Wired Equivalent Privacy (WEP): the initial security standard developed for Wi-
Fi. It‟s not very effective. It‟s built into all standard 802.11 products, but its use is
optional. Many users neglect to use WEP security features, leaving them
unprotected. Uses an access point and all of its users to share the same 40-bit
encrypted password that can be easily decrypted by hackers from a small
amount of traffic Wi-Fi Protected Access 2 (WPA2): (page 249) stronger encryption and
(This part too!! ^^)
Malicious Software: Viruses, Worms, Trojan Horses, and Spyware: (page
Malware (Malicious software programs): include a variety of threats, such as
computer viruses, worms, and Trojan horses
Computer virus: a rogue software program that attaches itself to other software
programs or data files in order to be executed, usually without user knowledge or
Payload: most computer viruses deliver this. Typically spread by email
Worms: independent computer programs that copy themselves one computer to
the other computers over a network. They destroy data and programs as well as
disrupt or even halt the operation of computer networks
Trojan Horse: Name is based on a Greek huge wooden horse during the Trojan
War. It is a software program that appears legitimate, but then does something
unexpected that may cause damage. It‟s not a virus itself because it doesn‟t
replicate, but it transports viruses or other malicious codes into a computer
SQL injection attacks: the largest malware threat. Takes advantage of
vulnerabilities in poorly coded web application software to introduce malic