ADMS 2511 Notes.docx

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York University
Administrative Studies
ADMS 2511
Cristobal Sanchez- Rodriguez

ADMS 2511 – Management Information Systems Chapter 1: The Importance of Planning for IT - Need for information systems is usually related to organizational planning and to analysis organization performance compared to competitors - A potential IT system can be applied to the whole organization or a particular function or application area - Application portfolios: applications that have to be added, or modified if they already exist IT planning - Begins w/ analysis of organizational strategic plan - Strategic planning states the firm’s overall mission, goals that follow that mission and the steps necessary to reach these goals - Strategic planning modifies organization’s objectives + resources to meet changing markets and opportunities - Includes both technical and managerial aspects of information systems - Technical: hardware and operating systems, networking, data management systems and applications software - Managerial: specifies how managing the IT department will be accomplished, how functional area managers will be involved and how IT decision will be made - IT Strategic Plan: set of long-range goals that describe the IT infrastructure and identify major IT initiatives needed to achieve organization’s goals o it must meet 3 objectives:  must be aligned w/ organization strategic plan  must provide for an IT architecture that enables users, applications and databases to be seamlessly networked and integrated  must efficiently allocate IS development resources among competing projects so the projects can be completed on time and within budget and have the required functionality - IT Steering Committee: a group comprised of a group of managers and staff that represent various organization units. o it establishes IT priorities and ensures MIS functions are meeting enterprise’s needs o links corporate strategy and IT strategy o approve allocation of MIS function o establish performance measures for the MIS function and ensure they are met o ensures information systems and applications are acquired so employees get the resources they need to do their job - IS operational plan: plan consists of a clear set of projects that the IS department and functional area managers will execute in support of IT strategic plan o Contains following elements:  Mission – mission of IS function (derived from IT strategy)  IS environment – summary of the information needs of the functional areas and of the organization as a whole  Objectives of the IS function – the best current estimate of the goals of the IS function  Constraints on the IS function – technological, financial, personnel, and other resource limitations on the IS function  Application portfolio – prioritized inventory of present application and a detailed plan of projects to be developed or continued during the current year  Resource allocation and project management – listing of who is going to do what, how, and when Business Processes And Business Process Management - Business process: collection of related activities that produce a product or a service of a value to the organization, its business partners and/or its customers o Cross functional areas in an organization (product development, which involves design, engineering, manufacturing, marketing and distribution) o Must consider the following:  Customer Satisfaction: result of improving, fulfilling customer’s needs, wants and desires  Cost Reduction: result of having more efficient operating and supplying processes  Cycle and fulfillment time: result of having better manufacturing and product management processes  Quality: result of improving design, development and production  Product differentiation: result of having effective marketing and innovating processes  Productivity: result of improving each individual’s work processes - Business process reengineering (BPR): approach that improves efficiency and effectiveness of an organization’s business processes - Business Process Management (BPM): management technique that includes methods and tools to support the design, analysis, implementation, management and optimization of business processes o Helps improve profitability by decreasing costs and increasing revenues o Creates a competitive advantage by improving organizational flexibility and provide cost benefits and increase customer satisfaction Information Systems: Concepts and Definitions (pg 11) Data, Information, Knowledge - Data items: refers to an elementary description of things, events, activities and transactions that are recorded, classified and stored but not organized. Can be numbers, letters, figures, sounds, images, etc - Information: refers to data that has been organized so they have meaning and value - Knowledge: data and information that is organized and has been processed to convey understanding, experience, etc Information Technology Architecture: - High level plan or map that has information assets in an organization - Integrates entire organization’s business needs for information and IT infrastructure and all applications Information Technology Infrastructure: - Consists of physical facilities, IT components, IT services and IT personnel that support the entire organization Global, Web-Based Platform - Internet allows individuals to connect, compute, communicate, collaborate and compete everywhere and anywhere, anytime, provides limitless access to information - Globalization: integration and interdependence of economic, social, cultural and ecological facets of life, enabled by rapid advances in information technology Three Stages of Globalization (pg 14) 1) Globalization 1.0 (1942 to 1800) – force behind globalization was how much muscle, horsepower, wind power, steam power a country had and could deploy 2) Globalization 2.0 (1800 to 2000) – MNCs, due to falling transportation costs, generated by development of steam engine and railroads o Second half was driving by falling telecommunication costs resulting from telegraphs, telephones, computers, etc 3) Globalization 3.0 (2000 - ) – result of Fridman’s ten flatteners o 1) Fall of Berlin Wall o 2)Netscape goes public 1995 o 3) Development of workflow software – computers were able to work w/ one another w/o human intervention, allowed for humans to coordinate amongst employees regardless of location o 4) Uploading o 5) Outsourcing o 6) Offshoring o 7) Supply chaining – networks composed of companies, their suppliers and their customers o 8) Insourcing –delegating operations of jobs within a business to another company that specializes in those operations o 9) Informing – ability to search for information o 10) The steroids –computing, instant messaging, file sharing, technology that amplifies other flatteners Business Pressures, Organizational Responses and IT support Business Pressures: - Combination of political, social, legal, economical, and physical factors that affect business activities - Market Pressures: generated by global economy and strong competition, changing nature of the workforce and powerful customers o Global economy and strong competition: regional agreements such as NAFTA and unification of European nations has been it easier to increased world trade, the emergence of China and India has cause increased global competition  Due to the higher cost of labour in developed countries, companies will outsource to less developed countries to cut down on costs o The Need for Real-Time Operations: immediate access/processing of information o The changing nature of the workforce: more diversity, increased numbers in women, single parents, minorities, people w/ disabilities o Powerful Customers: customers are becoming more knowledgeable due to the internet - Technology Pressures: o Technological Innovation and Obsolescence: new and improved technologies are being produced more often at a rapid rate o Information Overload: information on the internet doubles each year - Social, Political and Legal Pressures o Social Responsibility: issues that affect businesses and individuals range from the state of physical environment to company and individual philanthropy (CSR)  Digital divide: the gap between those who have access to information and communication technology and those who do not o Compliance w/ Gov’t Regulations and Deregulations: gov’t regulations may include; health, safety, environmental control, employment equilty, etc  Deregulation can include local gov’t imposing income taxes, payroll/health taxes, sales taxes o Protection against Fraud or Terrorist Attacks Organizational Responses (pg 21) - Organizations are responding to pressures by implementing IT such as strategic systems, customer focus and make-to-order and mass customization and e-business - Strategic Systems: o Provides organizations w/ advantages that enable them to increase market share/profits to better negotiate w/ suppliers and to prevent competitors from entering their market - Customer Focus - E-Business and E-Commerce Chapter 2: Information Technology Governance and Management IT Governance: a structure of relationships and processes to direct and control the enterprise in order to achieve the enterprise’s goals by adding value while balancing risk versus return over IT and its processes Types and Purpose of Information Systems Information System (IS): collects, processes, stores, analyzes and disseminates information for a specific purpose Computer Based information system (CBIS): uses computer technology to perform all its tasks Hardware: device such as the processor, monitor, keyboard, printer that together accept data and information, process and display it Software: program or collection of programs that enables the hardware to process data Database: collection of related files or tables containing data Network: connecting system that permits different computers to share resources Procedures: set of instructions about how to combine the above components in order to process information and generate the desired output People: individuals who use the hardware and software, interface with it, or use its output Application Programs (pg 41) - Computer program designed to support a specific task, business process Breadth of Support of Information Systems - Functional area information systems (FAIS): each information system supports a particular functional area in the organization - Enterprise resource planning (ERP): designed to correct lack of communication among functional area ISs - Transaction processing system (TPS): supports monitoring, collection, storage and processing of data from the organization’s basic business transactions - Supply chain: describes the flow of materials, information, money, and services from suppliers of raw material through factories and warehouses to the end customers - Electronic Commerce Systems: enables organizations to conduct transactions between businesses, customers Support for Organizational Employees (p 43-45) Knowledge workers: professional employees such as financial/marketing analysts, engineers, lawyers, accountants Office automated systems (OASs): support for clerical staff, lower and middle managers and knowledge workers - Used to develop documents (word processing), scheduling, and communicating (e-mail, IM) Business Intelligence (BI) systems: computer support for complex, non-routine decisions, used by middle managers and knowledge workers - Used w/ a data warehouse and allows for data analysis Expert systems (ESs): attempt to duplicate work of human experts by applying reasoning capabilities, knowledge and expertise within a specific domain, used by knowledge workers Functional area IS: supports activities within a specific functional area (i.e. system for payroll) Enterprise Resource Planning: integrates all functional areas of the organization (i.e. Oracle, SAP) Management Information System: produces reports summarized from transaction data, usually in one functional area (i.e. report on total sales for each customer) Decision support system: provides access to data and analysis tools (i.e. “what-if” analysis and changes in budgets) Dashboards: support all managers of the organization. Provides rapid access to timely information and direct access to structure information (reports) Competitive Advantage and Strategic Information Systems Competitive advantage: seeks to outperform competitors in some measure such as costs, quality or speed Strategic information systems (SISs): provide a competitive advantage by helping an organization implement its strategic goals and increase its performance and productivity - Any information system that helps an organization gain a competitive advantage or reduce a competitive disadvantage is a strategic information system Porter’s Competitive Forces Model: 1) Threat of entry of new competitors 2) Bargaining power of suppliers 3) Bargaining power of customers (buyers) 4) Threat of substitute products or services 5) Rivalry among existing firms in the industry Porter’s Value Chain Model (pg 48) Primary activities: 1) Inbound logistics (inputs) 2) Operations (manufacturing and testing) 3) Outbound logistics (storage and distribution) 4) Marketing and sales 5) After sales services Support activities: 1) Firm’s infrastructure (accounting, finance, management) 2) HRM 3) Product and technology R&D 4) Procurement Value system (industry value chain): include suppliers that provide inputs necessary to the firm and their value chains - Once the firm creates products, these products pass through value chains of distributors and then to the customers Strategies for Competitive Advantage 1) Cost Leadership Strategy: produce products and services at the lowest cost in the industry 2) Differentiation strategy: offer different products, services, product features 3) Innovation strategy: introduce new products and services, add new features to existing products and services and develop new ways to produce tem 4) Operational effectiveness strategy: improve the manner which internal business processes are executed so a firm performs similar activities better than its rivals (better quality, productive, employee + customer satisfaction) 5) Customer Orientation Strategy: concentrate on satisfying the customer The Importance of Information Systems and their Management (pg 51) IT Affects Management: Reduction of middle managers: - IT makes managers more productive therefore IT Affects Employees: 1) IT affects employees perceptions of job security – some people are concerned that technologies are going to replace workforce, but they can also create new jobs 2) IT creates psychological effects – employees feel like they are losing their identity because of the isolating effect of IT 3) IT affects employees’ Health and Safety – increases in workload due to IT can lead to job stress, VDTs and keyboards can effect wrists and eye damages 4) IT provides opportunities for people w/ disabilities – by offering speech and vision recognition, it allows disabled employees to have capabilities Chapter 3 Ethical Issues (pg 70) Ethics: principles of right and wrong that individuals use to make choices to guild their behaviours. Code of ethics: collection of principles that is intended to guild decision making by members of the organization Responsibility: accepting the consequences of your decisions and actions Accountability: determining who is responsible for actions that are being taken Liability: gives individuals the right to recover the damages done to them by other individuals, organizations, systems Ethical Issues Categories: Privacy: collecting, storing, disseminating information about individuals Accuracy: involves the authenticity, integrity and accuracy of information that is collected and processed Property: ownership and value of information Accessibility: who should have access to information and whether they should pay to have this access Protecting Privacy Privacy: - right of privacy is not absolute; privacy must be balanced against the needs of society - Public’s right to know supersedes individual’s right to privacy Digital Dossier: electronic description of a person’s habits on the internet Profiling: process of forming a digital dossier Electronic Surveillance: monitoring or tracking people’s actions with computers - Employees have limited protection against surveillance by employers - Monitoring and filter software is being installed to improve productivity Privacy Codes and Policies: organization’s guidelines for protecting the privacy of customers, clients and employees Opt-out Model: consent is given for a company to collect personal information until the customer specifically requests that the data not be collected Opt-In Model: a business is prohibited from collected personal data unless customer specifically authorizes it Threats to Information Security 1) Evolution of information technology resources 2) Government legislations – laws protect individuals 3) Modern computers and storage devices are becoming easier to obtain and are constantly improving allowing more people to be able to access information 4) Skills to be a hacker are decreasing 5) Cyber-crime: illegal activities taking place over computer networks 6) Downstream liability: if a hacker uses one party A’s systems to access party B’s, Party A may be liability due to the fact their security was not strong enough 7) Unmanaged devices that are out of an IT department’s control 8) Management support – management must support and enforce security measure Threat: a danger which a system may be exposed Exposure: harm, loss, damage that can result if a threat compromises a resource Vulnerability: possibility that the system will suffer harm by a threat Risk: likelihood of a threat occurring Information systems controls: procedures, devices, software aimed at preventing a compromise to the system Threats to Information Systems 1) Unintentional Acts - Human Error: tailgating, shoulder surfing, careless w/ laptop, internet surfing, poor password selection, etc - Social engineering: an attack which the perpetrator uses social skills to trick or manipulate legitimate employees into providing confidential company information o Reverse social engineering: employers approach the attacker without any knowledge of threat o Social data mining: an attacker has an understanding of trusted relationships within an organization and exploit the knowledge - Deviations in the Quality of Service by Service Providers - Environmental Hazards 2) Natural Disasters 3) Technical Failures – hardware and software problems 4) Management Failures: lack of funding for information security efforts and lack of interests in those efforts 5) Deliberate Acts - Espionage, information extortion, sabotage or vandalism, theft of equipment and information, identity theft - Compromises to intellectual property: property created by individuals/corporations that is protected under trade secret, patent and copyright laws Cyber Terrorism and Cyber Warfare: attackers use a target’s computer systems to cause physical, real world harm or severe disruption usually to carry out a political agenda Penetration Test: method of evaluating security of an information system by simulating an attack by a malicious perpetrator Protecting Information Resources (pg 90-91) Risk Management Risk Analysis: process which an organization assesses the value of each asset being protected, estimates probability that each asset will be compromised and compares the probable costs of the asset’s being compromised with the costs of protecting that asset Risk Mitigation: organizations take concrete action against risks, implementing controls to prevent indentified threats from occurring and developing a means of recovery should the threat become a reality Risk Acceptance: accept potential risk, continue operating w/ no controls and absorb any damages that occur Risk Limitation: limit risk by implementing controls that minimize impact of the threat Risk Transference: transfer the risk by using other means to compensate for the loss, such as by purchasing insurance Controls evaluation: an organization identifies security deficiencies and calculates the costs of implementing adequate control measures, if costs of implementing > value of asset being protect, control is not effective Controls - Safeguard assets, optimize the use of the organization’s resources and prevent or detect error or fraud, organizations use layers of control - Control environment: encompasses management attitudes toward controls - General controls: apply to more than one functional area (i.e. passwords) - Application controls: specific to one application (i.e. payrolls) - Physical controls: guards, fences, sensors, etc Access Controls: restrict unauthorized individuals from using information resources, include both logical and physical controls - Logical controls: implemented by a software (i.e. number of tries to enter a password) - Two major functions of access controls: authentication and authorization - Authentication: determines the identity of the person requiring access, while Authorization provides information on what actions, rights, privileges can be performed based on identity - Strong passwords: should be difficult, long, combination of upper, lowercase, numbers, not be a recognizable word Communication Controls: secure movement of data across a network. Consists of firewalls, anti-malware systems, whitelisting, blacklisting, etc - Firewall: system that prevents a specific type of information from moving between untrusted networks o Demilitarized zone (DMZ): located between two firewalls - Whitelisting: process where company identifies which software it will allow to run, permits acceptable software to run and prevents anything else or new software to run - Blacklisting: includes certain types of software that are not allowed to be runned - Encryption: process of converting an original message into a form that cannot be read by anyone except the intended receiver, all encryption uses a key - Virtual private network (VPN): private network that uses a public network to connect users - Secure socket layer (transport layer security): encryption standard used for secure transactions (credit card, on-line banking) - Vulnerability Management Systems: handle security vulnerabilities on unmanaged remote devices - Employee Monitoring Systems: companies monitor employee’s computers, e-mail and internet activity Application Controls: security measures that protect specific applications, input controls, processing controls and output controls - Input controls: programmed routines that edit input data for errors before they are processed (i.e. making sure SIN numbers do not have letters) - Processing controls: routines that perform actions part of record keeping of an organization, reconcile and check transactions or monitor the operations of applications (i.e. matching entered quantity of goods received in the shipping area to amounts ordered) - Output controls: edit output errors, help ensure information is going to authorized individuals (i.e. paycheques, reports are going to correct people) Chapter 4 The Difficulties of Managing Data (pg 112) - Amount of data increases exponentially over time - Data comes from multiple sources; internal (corporate databases, company documents), personal (personal thoughts, opinions, experiences) and external (gov’t, corporate websites, commercial databases) - Clickstream data: data that visitors and customers produce when they visit a website, it provides a trail of user activity, such as; patterns and behaviours - new sources of data are being created (podcasts, blogs, etc) - data rot: referring the difficulties of accessing data; finding a computer to read a floppy disk and avoiding physical problems to storage units of data The Data Life Cycle 1) comes from a data source; internal, external personal 2) the data is stored in a database; data warehouse, metadata 3) data is processed to fit a data mart or data warehouse 4) perform a data analysis 5) generates a result of general knowledge that can be used to support decision making The Database Approach Database management system (DBMS): set of programs that provides users with tools to add, delete, access, analysis data stored in one location - provide mechanisms for maintain the integrity of stored data, managing security and user access - databases eliminate problems such as; entering data manually and reduction of errors because warehouse and inventory data are up-to-date and accurate o the data can also be accessed by a larger variety of people across an organization to examine products, customers, region, etc - DBMS minimize; data redundancy – same data stored in different places, data isolation – applications cannot access data associated w/ other applications and data inconsistency – various copies of data that do not agree - Maximizes; data security – data are essential to organizations, databases have extremely high security, data integrity – meets certain requirements, data independence – applications and data are independent of one another (able to access data from different applications) The Data Hierarchy Bit – represent the smallest unit of data a computer can process, contains only of a 0 or a 1 Byte – a group of eight bits, representing a single character (number, letter, symbol) Field – a logical grouping of characters into a word, small group of words or an ID number Record – logical grouping of related fields File (table) – logical grouping of related records Database – logical grouping of tables Designing The Database Data model: diagram that represents entities in the database and their relationships, previously known as a field or record Entity: previously known as a record, is a person, place, thing, event Attribute: characteristic or quality of a particular entity, previously called a field (customer name, employee number, product colour) Primary key: contain at least one attribute/field that uniquely identifies records so it can be retrieved, updated and sorted (student ID number) Secondary key: other fields of identification that do not identify record or entity w/ complete accuracy (a student’s major may be a secondary key) Entity relationship Modeling Entity-relationship modeling: planning and developing of a database Entity relationship diagram: graphical representation of a database consisting of entities, attributes and relationships Instance: representation of one particular entity (a particular student is an instance of the STUDENT entity class) Identifiers: (primary key, attributes) instances can be used to be identifiers One-to-one relationships: single-entity instance of one type is related to a single entity of instance of another type (student to parking permit – one student is to one parking permit) One-to-many: represented by one entity instance to a group (i.e. class-professor, many different classes, but one professor in each class) Many-to-many: group of entities that are related to another group of entities (student-to-class – many students, many classes) The Relational Database Model (pg 119) - Storage of data in two-dimensional tables where tables are related and each one contains entities (records listed in rows) and attributes (fields listed in columns) Structured Query Languages (SQL): allows people to perform complicated searches by using relatively simple statements or keywords (Select, from, where, etc) Query by Example (QBE): fills out a grid/template to construct a sample or description of the data he or she wants Data Dictionary: defines the format necessary to enter the data into the database, provides information on each attribute, type of data, and values - Provide information on how often an attribute should be updated, why it is needed in the database and which functions, applications, forms use the attribute - Reduce chances of the same attribute being used in different applications and enable programmers to develop programs more quickly because data names are already there Normalization: method of analyzing and reducing relational database to its more streamlined form for minimum redundancy, maximum data integrity and best processing performance (when normalized, only depends on primary key) Data Warehouse (p 123) - Repository of historical data organized by subject to support decision makers in the organization - Organized by business dimension or subject: data are organized by subject (customer names, product, price, etc) - Consistent: all data is coded in a consistent manner - Historical: kept for many years so they can be used for trends, forecasting and making comparisons over time - Non-volatile: data does not change once it is entered in the warehouse - Ability to use online analytical processing: Online analytical processing (OLAP) – process of performing complex, multi-dimensional analysis of data stored in a data base, Online transaction processing (OLTP) – business transactions are processed as soon as they occur - Multi-dimensional - Relationship with relational databases: separate databases are combined Advantages: - users can access data quickly via web browsers because data is located in one place - users can conduct extensive analysis - users can obtain a consolidated view of organizational data Disadvantages: - expensive to build and maintain - accessing data from obsolete mainframe systems can be difficult and expensive - people from other departments may be reluctant to share data w/ other departments - risk of a transferring of data may cause the information to change and not be accurate Data Marts - small data warehouse designed for the end user’s needs in a strategic business unit or department - Data marts can cost less than $100,000 while data warehouses can cost 1 million > - Implemented quicker, less than 90 days - Rapid response and easier to navigate due to less data Data Governance (pg 128) - An approach to managing information across an entire organization, involves a formal set of business processes and policies that are designed to ensure data are handled in a certain, well-defined fashion - Organization follows unambiguous rules for creating, collecting, handling and protecting its information - Objective is to make information available, transparent and useful for people authorized to access - Master Data: set of core data (customer, product, employee, vendor, location, etc) - Transaction data: describe activities, transactions of a business - Master data management: process that spans all organization business processes and applications, provides companies w/ ability to store, maintain and exchange, accurate “single version of the truth” for the company’s core master data Knowledge Management (p 130) - Process that helps organizations manipulate important knowledge that is part of the organization’s memory, usually in an unstructured format - Knowledge: information that is contextual, relevant and actionable (information in action) - Explicit knowledge: objective, rational, technical knowledge (i.e. policies, reports, products, goals, core competencies) - Tacit knowledge: cumulative store of subjective or experiential learning, consists of an organization’s experiences, insights, expertise, etc - Knowledge management systems: refers to use of modern information technologies – internet, data warehouses o Used to cope with turnover, rapid change and downsizing by making expertise of an organization’s human capital widely accessible The Knowledge Management System Cycle (p132) 1. Create knowledge – created as people determine new ways of doing and developing things 2. Capture knowledge – knowledge must be identified as valuable and be represented in a reasonable way 3. Refine knowledge – knowledge must be placed in a context that can be understood, tacit and explicit knowledge work together to refine 4. Store knowledge – useful knowledge must be stored in a reasonable fashion so others can access information 5. Manage knowledge – keep the knowledge current and reviewed regularly 6. Disseminate knowledge – made available in a useful format to anyone in an organization who needs it – anytime, anywhere Chapter 5 Network Applications (pg 144) 1) Discovery Search Engine: computer program that searches for specific information, by keywords and reports results (i.e. Bing, Google, Yahoo) Metasearch Engine: search several engines at once and integrate the findings of the various search engines to answer queries posted by users (i.e. Surf Wax, Metacrawler, Dogpile) Publication of Material in Foreign Languages - Companies should localize their content and be sensitive to the needs of people in their local markets - To reach 80% of world’s internet users, a company should provide support in 10 languages: English, Chinese, Spanish, Japanese, German, Korean, French, Italian, Russian and Portuguese - Companies that support translation of 10 languages or more spend up to $200,000 a year to localize information and another $50,000 to maintain their sites Portals - Web based, personalized gateway to information and knowledge that provides relevant information from different IT systems and the Internet using advanced search and indexing techniques - Commercial (public) Portals: most popular, intended for diverse and broad audiences (i.e. Sympatico, MSN) - Affinity Portals: a single point of entry to an entire community of people w/ affiliated interests such as hobby groups or political party (i.e. for alumni members of schools) - Corporate Portals (enterprise, information, enterprise information): personalized, single point of access through a web browser to critical business information inside and outside an organization - Industry-wide portals: serve entire industries (i.e. Trucks ) provides a database of general information of an industry - Mobile Portals: portals that can be accessed on mobile devices 2) Communication - E-Mail - Web-Based Call Centres (customer care): used when a person needs to contact a software vendor for technical support - Electronic Chat Rooms: virtual meeting place where people converse, Two types: 1) web-based (msn), 2) e-mail based (text only) called IRC (internet relay chat) - Video Communication: Internet telephony, voice over Internet protocol (VoIP) - Unified Communications: simplifies and integrates all forms of communications – voice, voice mail, fax, chat, e-mail, instant messaging, short message service, etc o Allows users to communicate w/ another on a project no matter where they are located, and can quickly locate other users, determine availability, engaging in communication session, all in real time 3) Collaboration - Refers to the efforts by two or more entities (individuals, teams, groups, organizations) who work together accomplish certain tasks o Work group: refers specifically to two or more individuals - Workflow: movement of information as it flows through the sequence of steps that makes up an organization’s work procedures o Allows for documents to be passed, and tasks and information to move from one participant to another o Virtual groups: group members that are working from different locations - Virtual collaboration: refers to the use of digital technologies that enable an organization or individuals to plan design, develop, manage, research, etc. - Crowd sourcing: refers to outsourcing a task to an undefined, generally large group of people in the form of an open call - Synchronous: meeting at the same time, asynchronously: can’t meet at the same time - Collaboration Software: software such as; Microsoft SharePoint, Google Docs, IBM lotus Quickr, Jive, that provide online collaboration capabilities, work-group e-mail, distributed databases, bulletin whiteboards, electronic text editing, document management, virtual meetings, IMs, etc. o Version management: tracks changes to a document and provide features to accommodate concurrent work (Docs, SharePoint, Jive) o Version control: users check out documents and check them back in for each member to edit (SharePoint, Lotus) - Electronic Teleconferencing: use of electronic communication that allows two or more people in different locations to hold a simultaneous conference o Disadvantage of teleconferencing; does not allow for face-to-face communication, does not allow participants to see graphs, charts, pictures from other locations o Videoconferencing: participants can see documents and presentations from other locations (newest form of telepresence – costly) - Google: 1) search application, 2) communication, show and share – allows users to share documents (Google Docs), 3) Mobile Applications, 4) appliances to “make your computer better” (Google Pack and Google Web Accelerator), 5) applications to “explore and innovate” (Google Labs, Google Code) Web 2.0 (pg 154) - Loose collection of information technologies and applications and the websites that use them, encourages user participation, social interaction and collaboration - Web 1.0 were services were online places where people could visit as services to get something done with other people, while Web 2.0 harness collective intelligence (wikis), deliver functionality services, rather than package software, feature remixable applications and data (mashups) - AJAX (asynchronous Java Script and XML): allows portions of web pages to reload with fresh data instead of requiring the entire page to reload - Tagging: keyword that describes pieces of information - Blogs and Blogging: personal website that allows a creator to express his feelings or opinions o Companies use blogs to help with marketing research and sometimes use it as a process that allows input into their processes or products - Wiki: website that collections information around the web that allows users to post and edit materials o Organizations use wikis as a central repository to capture constantly updated product features and specifications, tracking issues, resolving problems and maintain project histories o Allows for customer, supplier and other business partner collaboration (i.e. FAQs, guidelines – updating to make sure they’re current and accurate) - Really Simple Syndication (RSS): allows users to receive the information they want, when they want without having to go through thousands of websites o when changes are made, subscribers are informed of the new information - Podcasts and Videocasts: digital files that is distributed over the Web using RSS for playback on portable media players and personal computers Categories of Web 2.0 Sites (pg 159) - Social networking: websites that allow users to upload their content in the form of text, voice, images o Provides an easy, interactive way to communicate and collaborate w/ others o i.e. MySpace, Youtube, Flickr, LinkedIn, Twitter - Aggregators: websites that provide collections of content from the web o i.e. Bloglines, Digg, simply hired - Mashups: a website that takes different content from a number of other websites and mixes them together to create a new kind of content )i.e. Google Maps E-Learning and Distance Learning (pg 162) - E-Learning: refers to learning supported by the Web, can be used as a support tool inside a classroom or as a virtual classroom - Distance Learning (DL): refers to learn any learning situation in which teacher and students do not meet face-to-face The Benefits and Drawbacks of E-Learning - Benefit: 1) current and up-to-date content, 2) gives students the flexibility to learn anytime, anywhere, 3) reduces training costs in organizations because facilities are not needed - Disadvantage: 1) Students must be computer literate, 2) miss face-to-face interaction, 3) assessing student’s work can be difficult since teachers are unsure who completed assignment - Virtual Universities: on-line but offsite university courses that students can take courses from Telecommuting - Knowledge workers (distributed workforce) that are able to work anytime from anywhere - Distributed workforce is being driven by globalization, extremely long commutes to work, rising gas prices, and technological advances - Advantages for employees: 1) reduced stress, improved family life, 2) allows employment opportunities for single parents and persons with disabilities - Advantages for employer: 1) allowed skilled workers to be obtained, 2) increased productivity, 3) attract employees who don’t live within commuting distance - Disadvantages for employees: 1) feeling of isolation, 2) loss of fridge benefits, 3) lower pay (sometimes), 4) possibly slower promotions, 5) lack of socialization - Disadvantage for employer: 1) difficulties in supervising work, 2)security risks, 3) training costs Chapter 6 (pg 174) E-Commerce: process of buying, selling, transferring or exchanging products, services, information via a computer network E-Business: incorporates everything E-Commerce in addition to servicing customers, collaborating with business partners and performing electronic transactions within an organization (term is interchangeable with e-commerce) - The product can be physical or digital - The process can be physical or digital - Delivery agent can be physical or digital Bricks-and-mortar organizations: purely physical organizations Virtual organizations (pure-play): business that only conduct all business digitally Clicks-and-mortar organizations (partial EC): conduct some e-commerce activity but mostly conduct physical business (i.e. Wal-Mart, buy a book from Amazon – book/delivery is physical) Types of E-Commerce Business-to-consumer (B2C): sellers are organizations, buyers are individuals Business-to-Business (B2B): sellers and buyers are business organizations – majority of EC volume Consumer-to-consumer (C2C): individuals sell/buy products off of other individuals (i.e. EBay) - Ability to reach a wider audience on the internet rather than just a local audience Business-to-employee (B2E): organizations provide information/services to employees – managing benefits, take training classes online, buy discount insurance, buy tickets using corporate discount, etc E-government: ability of government to deliver information/public service announcements to citizens and allows governments to interact with citizens more directly (EI or Pension Plan payments to bank accounts online) Mobile Commerce: using a wireless device to conduct e-commerce Business model: methods which a company generates revenue to sustain themselves - Online Direct Marketing, Name-your-own price, Viral marketing, product customization, deep discounters, memberships Major E-Commerce Mechanisms - E-catalogues, e-auctions, e-storefronts, e-malls and e-marketplaces - Auction: seller solicits bids or a buyer solicits bids from sellers o Forward auctions: sellers place an item on a site and buyers bid (Ebay) o Reverse auctions: a buyer will post a request that it wants to buy a product or service, suppliers then send their bids, and the lowest-price wins auction – typically used for large purchases (wholesale) and used mostly by governments and large organizations - Electronic storefront: a single store Electronic Mall: collection of stores - Electronic marketplace: virtual market space where buyers + sellers conduct e- commerce Advantages of E-Commerce - Ability to access national/international markets more accessible by lowering cost of processing, distributing, etc - Customers are able to access a large number of products/services any time online - Ability to deliver information quickly and to a large number of consumers Limitations - Lack of universally accepted security standards - Expensive accessibility - Belief that EC is insecure - Lack of critical mass of sellers and buyers Business-to-Consumer E-Commerce (pg 179) - Amazon - Electronic retailing (e-tailing): direct sale of products and services through electronic storefronts or electronic malls – offers wider variety of products and low prices - Electronic storefront: can be physical stores with online websites or strictly an online store - Electronic malls Online Services Industries - buying plane tickets, purchasing stocks, insurance, online delivery o Disintermediation: eliminating the “middle man” from business transactions - Cyber Banking – help deal with multiple currencies, cheaper for banks, convenient for customer - Online securities trading – trade stocks, bonds – cheaper than a broker - Online Job market - Travel Services – cheap, up-to-date information Issues In E-Tailing Channel conflict – different distributors compete for same customers (click-and-mortar companies) - Multi-channeling: process of integrating online and offline channels in a company Order fulfillment – shipping and dealing with a large number of customers can be difficult Online Advertising - Disseminating information in an attempt to influence a buyer/seller transaction - Can be updated anytime, low costs - Reaches a larger volume of people Advertising Methods - Banners: electronic billboards, most commonly used form of advertising o Advantage; banners can be customized to match a specific audience o Disadvantages; limited information due to small size, easily ignored - Pop-Up/Pop-Under Ads: pop-ups appear upfront, pop-under are under an active window - E-mail Spamming: distribution of ads without permission of the receiver - Permission Marketing: asking receiver permission to receive ads and e-mails, usually offered incentives (discounts) - Viral Marketing: forwarding messages or ads to contacts Business-to-Business (B2B) Electronic Commerce (p 186) 1) Sell-Side Marketplace: organizations attempt to sell their products/services to other organizations for their own private e-marketplace website o Dell computers (dellauctions) 2) Buy-Side Marketplaces: organizations buy needed products or services from other organizations o Reverse auctions o Reduces costs of items purchased and administrative expenses 3) Electronic Exchanges: private exchanges = one buyer and many sellers, public exchanges = many sellers/many buyers o Vertical Exchanges: connect sellers and buyers in a certain industry o Horizontal Exchanges: connect buyers and sellers across many industries o Functional exchanges: temporary help or extra office spaced traded on an as- need basis Electronic Payments (pg 189) Electronic Cheques (E-Cheques): similar to regular cheques, they carry signatures (in digital form), can be verified and can be endorsed - Typical used for Business-to-business - A customer who wishes to use an e-cheque must establish a chequing account w/ a bank - Once the e-cheque is received by the seller, the seller deposits the cheque into their bank account and the funds are then transferred from the buyer’s account to the seller’s account Electronic Credit and Debit Cards: allows customers to charge online purchases to their credit card accounts, typical used for business-to-consumer transactions - firstly, when using a credit card for online transactions, you must enter all your credit card information - once the information is sent, the information is then sent to a clearinghouse where the information is decrypted for verification and authorization - the clearinghouse then verifies with the credit card holder’s bank - once verified, the clearinghouse reports back to the seller and the seller will usually relay the information of the successful transaction to the customer - finally, the bank will then send funds sent by the seller to the company’s bank Purchasing Cards: electronic credit cards used by B2B transactions (payments are settled in a week) - Used for unplanned B2B purchases Electronic Cash: appears in the forms of; stored-value money cards, smart cards, person-to- person payments and digital wallets - stored-value money cards: cards that have a pre-determined amount and the amount decreases by the amount a person spends using the card, i.e. pre-paid telephone cards, York U Card - Smart cards: smart cards possess a chip and can be used as a multi-purpose card (can be used as a credit, debit, stored-value money card), ideal for small payments of a few dollars or less, i.e. Presto transportation cards that can be used for public transit - person-to-person: allows two individuals or an individual and a business to transfer funds without using a credit card (i.e. PayPal) - Digital Wallets: stores financial information of the buyer (credit card number, shipping information, etc) this makes it convenient for the buyer as they do not have to enter it every single time - disadvantage of e-wallets; must set up a separate e-wallet with each merchant (MasterCard Wallet) Ethical and Legal Issues in E-Business Ethical Issues - Privacy: payment systems typical protect buyer’s personal information - Tracking: cookies on the internet can help a business target consumers - Job Loss: less physical staff is needed due to increase of online activity Legal Issues - Dishonest buyers/sellers can commit fraud - Manipulating stock prices - Fraud on the internet o Stock promoters spreading false rumours about a company to manipulate stock prices o Auctions – selling fake items, never selling item, never paying for an item - Domain Names o Companies who share similar names often compete over domain names o Cybersquatting: registering/using a domain name that belongs to someone else and profiting off of the trademark o Domain Tasting: claiming internet domains for 5 days and spamming them with ads – 100% profit margin, no risk - Taxes and Other Fees o Collection and issuing of tax - Copyright o Protecting/distribution of intellectual properties Chapter 7 Wireless Technologies Reasons to use wireless technology: - Able to have a productive use of time with wireless technologies - Work locations are becoming more flexible - Wireless technology enables people to allocate their working time around personal/professional Wireless Application Protocol (WAP): standard that allows wireless devices to access web- based information and services - Microbrowsers: internet browsers with small file sizes so they can work on small screen sizes - Cell phones are being used to copy and pass on confidential information Wireless Transmission Media Microwave transmission: used for high volume, long distance, line of sight communication – communication where transmitter and receiver are in view of each other, usually 50km or less apart - Advantages: high bandwidth, Inexpensive - Disadvantages: must have unobstructed line of sight, susceptible to environment interference Satellite Transmission: 3 types of satellites; 1) GEO (geostationary), MEO (medium earth orbit), LEO (low earth orbit) - Advantages: high bandwidth, large coverage area - Disadvantages: expensive, unobstructed line of sight, uses encryption for security, signals can be delayed - GPS (global positioning system): uses satellites to determine where a user is on earth - Internet over Satellite (IOS): used by areas where installing necessary cables is expensive or impossible Radio Transmissions: uses radio-wave frequencies to send data directly between transmitters and receivers - Advantages: high bandwidth, signals pass through walls, inexpensive + easy to install - Disadvantages: electrical interference problems may occur, easy to infiltrate must be encrypted Infrared: used in remote controls, VCRs, DVD players - Advantages: low to medium bandwidth, used for short distances - Disadvantages: must have unobstructed line of sight Wireless computer Networks and Internet Access (pg 215) Short Range Wireless Networks - Bluetooth: used to create small personal area networks (computer network to communicate with other computer networks) - Ultra-wideband (UWB): high-bandwidth wireless technology used to stream media - NFC (near-field communication): short range, used in cell phones and credit cards and used at a point-of-sale terminal to pay for items Medium Range Wireless Networks - Wi-Fi (wireless fidelity): wireless Local Area Network (WLAN), wireless access point within a small area (60 meters) o Low cost o Disadvantages; roaming (users have to log-on to separate hotspots), security, cost to expand - Mesh networks: multiple Wi-Fi access points to create a wide area network Wide Area Wireless Networks - Cellular radio: radio waves that communicates with radio antennas o Radio antennas are placed within adjacent geographic areas and a telephone message is transmitted to the local cell then passed cell-to-cell until it reaches its destination o 1G – used analog signals, low bandwidth, 2G – signals used for voice communication, 3G – transmits voice and data (supports web browsing, IM) Mobile Computing and Mobile Commerce (p 220) - Mobility: users can carry devices and communicate in real-time with contacts from wherever - Broad reach: users carrying a mobile device can be reached instantly Development of M-Commerce 1) Widespread availability of mobile devices 2) No need for a PC – cheaper internet access 3) Cell phone culture – everyone has a cell phone 4) Declining prices – cell phones + plans are becoming more affordable 5) Bandwidth improvements M-Commerce Applications - Financial Services: mobile banking, wireless electronic payment systems, micropayments, wireless bill payments, m-wallets - Intrabusiness Applications: non-voice mobile services to assist in dispatch, assign jobs - Accessing information: mobile portals, voice portals - Location Based Applications: shopping from wireless devices, GPS - Wireless Telemedicine: sharing images/video, using robots to perform procedures - Telemetry Applications: wireless transmission and receipt of data gathered from remote sensors (i.e. OnStar) Pervasive Computing (p 226) RFID (radio-frequency identification technology): tags w/ antennas and computer chips on goods used to track movement of packages through radio signals, used to replace bar codes - Contains information about the item such as location, where and when it was made, etc - Active tags; use internal batteries for power and broadcast radio waves to a reader – used for more expensive items - Passive tags; rely on the reader for power, only can be used by to 6 meters - UPC codes; 1) use line of sight – must be interference free to work, 2) label can be ripped off, 3) the bar code only identifies manufacturer and product but not the item itself - RuBee is an alternative to RFID because it uses magnetic rather than electric energy Wireless Sensor Networks (WSNs): networks of interconnected, battery-powered, wireless sensors, placed in a physical environment - Motes contains processing, storage and radio-frequency sensors and antennas, when a mote passes through a data point it transmit and relays the data - ZigBee – used to read meters for utilities by employees driving pass a house Wireless Security (p 229) - Can be intercepted by anyone who is close enough and has the right equipment - 1) Rogue access point: unauthorized access point to a wireless network - 2) evil twin attack: users connect to a fake access point that can lead to webpages asking for confidential information - 3) War driving: locating WLANs around a city, accessing these WLANs for free - 4) Eavesdropping: unauthorized users access data travelling over a wireless network - 5) Radio-frequency jamming: person intentionally/unintentionally interferes with a wireless connection Chapter 8 – Organizational Information Systems Transaction Processing Systems (p 240) Transaction: any business event that generates data worthy of being captured and stored in a database (i.e. product manufactured, service sold, person hired, payroll cheque generated) Transaction Processing Systems (TPS): monitor, collect, store and process data generated from all business transactions - Data are inputs to the organization’s database - Inputs to functional area information systems, decision support systems, customer relationship management, knowledge management and e-commerce - Handle high volume and large variations in volumes - Must avoid errors and downtime, record results accurately and securely, maintain privacy and security - Data from TPS are input into the organization’s database and must be correct Steps of TPS: - 1) Data is collected by people/sensors and entered into the computer via an input device o Data automation: automating the TPS data entry process due to the high volume involved - 2) processes data through; a) batch processing, b) online processing o Batch processing: firm collects data from transactions as they occur placing them in groups or batches, then processes the batches periodically (i.e. every night) o Real-time transaction processing (on-line TPS): business transactions are processed online as soon as they occur (i.e. purchasing an item, system records the sales by reducing inventory on hand) Functional Area Information Systems (p 242) Functional Area Information Systems (FAIS): provide information to lower/middle level managers in various functional areas, helps plan/organize/control operations - I.E. accounting, finance, marketing, production/operations, HRM Activities supported by Functional Area Information Systems Information Systems for Accounting and Finance - Financial Planning: knowledge of availability and cost of money, cash flow projections - Budgeting: planning on distributing resources that best supports organization’s missions and goals - Investment Management o Organizations invest in shares, bonds, real estate, managers must evaluate financial and economic reports o To monitor, interpret and analyze the huge amounts of online data, financial analyst use; 1) internet search engines, 2) business intelligence/decision support software - Control and Auditing o Budgeting Control: managers must monitor departmental expenditures and compare them against the budget o Internal auditing o Financial ratio analysis: liquidity ratio (availability of cash vs debt), activity ratio (how quickly a firm converts non-cash assets to cash assets), debt ratios (firm’s ability to repay long-term debt) o Virtual close – ability to close books at any time - Payroll Information Systems for Marketing and Sales - Organization must understand customers’ needs and wants and develop a marketing strategy around them - Treat customers like royalty, know customer profiles and preferences - Sales force automation – use software to automate business tasks of sales, improving productivity of sales peoples Production/Operations and Logistics - Inventory management – how much inventory to order, inventory to keep and when to order to inventory - Quality control – checking for defects in incoming goods and goods produced - Materials requirements planning – planning that integrates production + purchasing and inventory management of interdependent items - Manufacturing Resource Planning – planning that integrates production + inventory management, purchasing, financing and labour activities - JIT systems – materials and parts arrive precisely when and where needed for production - Product life cycle management – allows manufacturers to collaborate on product design and development efforts Human Resource Management - Recruitment – finding/testing/deciding which employees to hire - Performance evaluation – evaluations done by superiors periodically - Training - Employee records - Benefit administration – medical, retirement, disability, unemployment Functional Area Information System Reports (247) Routine reports: scheduled interval reports that can range from hourly quality control reports to daily attendance Ad-hoc (on demand) reports: reports that are non-routine and require specific information Drill down reports: great level of details (focuses more on sales by store in a region, rather than region as a whole) Key-indicator reports: summarizes performance of critical activities Comparative reports: reports that compare divisions, business units, etc Exception Reports: reports that fall outside certain threshold standards – helps save time and focus on problem areas Enterprise Resource Planning Systems (pg 250) ERP systems: a business process view of the organization to integrate the planning, management and use of all of an organization’s resources, employing a common software platform and database - Objective of ERP systems is to tightly integrate the functional areas of the organization and to enable information to flow seamlessly across the functional areas - Changes in one functional area are immediately reflected in all other pertinent functional areas - Provide information necessary to controls business processes of the organization - i.e. SAP/Oracle/PeopleSoft Evolution of ERP - originally used to monitor manufacturing business processes (raw materials management, inventory control, distribution) bu
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