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Chapter Final

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Department
Computer Science
Course
Computer Science 1032A/B
Professor
Prof
Semester
Fall

Description
Chapter 5 Intellectual Property Form of creative endeavor that can be protected through a trademark, patent, copyright, industrial design, or integrated circuit topography Content Management Management of content data • Database Management Systems (DBMS): Effectively and efficiently storing and processing data Presentation of content • Content Management System (CMS): organizing documents. Seek out documents and organize access Spreadsheet vs Database Spreadsheets: keep lists of single concept Databases: Keep lists that involve multiple themes Relational Database • Easy to understand • Relationships aren’t predefined • Database can evolve as required • Relationships are implied in the data Database Self-describing collection of integrated records Hierarchy of data elements 1 Components of a Database Tables/files + Relationships among rows in tables + Metadata Relationships Among Records • Primary Keys: Columns that identify unique row in tables. Each table has a key • Foreign Keys: Primary Keys from a different table • Relational database: databases using tables, primary keys and foreign keys Metadata Description of the structure of database • Databases are self-describing (contain description of its content) • Metadata: o Data that describes data o Makes Databases more useful o Makes Databases easier to use Components of a DatabaseApplication System Database Management System (DBMS) Program: • Creates database, processes database, administers database • Licensed from vendors: (Access, SQL server, Oracle etc.) 2 Function: • Creation: tables, relationships in databases • Process database • Applications use DBMS (read data, insert data, modify data, delete data) • Administration: security, backup, improve performance, removal of data no longer needed Different between Database and DBMS • Database: collection of tables, relationships, and metadata • DBMS: software program DatabaseApplication • Collection (forms, reports, queries, application programs that process databases)   Form Read/insert/modify/delete data Reports Shows data in structured context. Able to compute values Queries Comprehensive method to query data • Structured Query Language (SQL): international standard for processing database DatabaseApplication Programs • Forms, reports and queries (standard functions) • Application Programs 3 • Process logic specific to business need • Enables Database processing over Internet (intermediary between web server and database)(responds to events) Multi-User Processing Problems: lost update problem, locking used to coordinate activities of multiple users Enterprise DBMS • Process organizational and workgroup databases • Large databases • Support many users Personal DBMS • Designed for smaller, simpler database applications • Supports fewer then 100 users Relational Database Design • Designer creates table for every entity • KeyAttribute is primary key of table • Attributes of entity become columns • Tables normalized to single theme • Represent relationships between tables (add foreign key to one or more tables) Normalization Process: • Converts table into two or more tables. Changes from poorly structured to well structured • Data Integrity Problems: different names for the same entity. Produces incorrect and inconsistent information. Resolve by eliminating duplicated data • Normalized Tables: eliminate data duplication. Slower to process. Every table has single topic Poorly Designed Database A. Table before update B. Table with incomplete update Database Elements 4 Entity • Anything about which the organization wishes to store as date • Information about attributes of an entity stored in fields Record • All the fields contain data about one entity from a record • Aset of all related record forms a file Tables • In a relational database consist of rows and columns. (Rows represent the instance of the entity, columns represent the attributes) • Every Table should have a key attribute Relational Database • Data model based on a relation • Entities and relationships in an ER model become tables in the relational model • Rows in a table constitute the instances of the entity or relationship • Attributes of the entities and relationships inherits the key attributes from all of the entities involved in the relationship Converting an ER Diagram into a relational Database 1. For each entity in the diagram: create a table with the same name as the entity. Each attribute becomes a column. Key attribute of the entity becomes the primary key of the table 2. For each 1:1 relationship in your model: identity the two participating tables. Choose one and make it the foreign key in the other. If there are any attributes on the relationship move them into table T as new columns 3. For each 1:M relationship in your model: identity the two participating tables and their respective attributes. Take the key from the ‘one’side and make it be a foreign key to the ‘many’table 4. For each M:N relationship in your model: identity the two participating tables and their respective key attributes. Create a new table. The new tables attributes should be the original table’s attributes on the relationship. The primary key will be the combined of the original tables Your Role Decide on: what data should be contained. How records are related to each other Review and correct data model  ensure is it an accurate view Who Will Volunteer Consultant creates data model. Data model reviewed and approved. Database tables constructed. MicrosoftAccess database created 5 6 Chapter 7 Achieving CompetitiveAdvantage Determine Competitive Strategies: • Changing the product: by introducing new products or services or enhancing current products or services • Business Processes: organizations use technology to help lock in customers, reduce costs, and create entry barriers for competitors in the market. IS’effect on competitive advantage • Making the primary and support activates more productive than those of competitors • Increased productivity realized when business processes become more effective and more efficient • True for commercial companies, non-profit organizations and government Calculation Systems • Old systems, relieved workers of repetitive calculations, labor saving devices, produced little information Functional Systems • Facilitated work of single department or function • Problem is their isolation • Functional Silos: systems designed to work independently of one another o In reality functional systems are inter-related ▯ purchasing influences inventory, which influences production, which influences customer satisfaction, which influences future sales o Decisions that are appropriate for only single business function may be inefficient for an entire business process • Types of functional systems: marketing & sales, operations, manufacturing, human resource and accountings Reorganized Porters Value Chain Accounting systems and HR systems Marketing Information Systems Product Management • Product and brand management • Asses: effectiveness of marketing messages, advertising and promotions 7 Sales Information Systems • Sales Forecasting: planning production, managing inventory and financial reporting • Customer Management: Generate follow-up business; turn prospects into customers, managing customers Functions of Sales and Marketing Systems Prospect generation, lead tracking, customer management, sales forecasting, product and brand management Manufacturing Information Systems • Process data about inventories • Manufacturing scheduling and operations • Support production and planning • Manufacturing Philosophies: • Push production planning: organization creates schedule and pushes goods through manufacturing and sales • Pull production planning: responds to customer demand, reduction in inventory triggers production ‘One-off’producers fall into either category Functional Systems Many benefits, Limited since they operate in isolation • Data duplication: each application has its own database, potential lack of data integrity • Business processes disjointed across functions: produces lack of integrated enterprise information • Limited information available at any one source • Inefficient decisions based on limited knowledge • Increased costs to organization Business Process Design/Redesign • Do not simply automate or improve existing functional systems • ‘Paving the cowpath’ ▯ process of making efficient what already exist. Making it easier, not necessarily changing how it is done • Consider creation of new, more efficient business processes ▯ integrate activates of all departments in a value chain. Cross-department business processes Challenges 8 • Process design projects: expensive and difficult, may take a long time • Employees resist change o Ultimate outcome is uncertain Industry Standard Processes • Many early business process design projects were tailor-made • By mid-1990, software vendors designed integrated applications with build-in industry standard processes ▯ integrate activities across departments, save cost + time Advantages: inherent business processes, use of tried and tested processes Disadvantages: may be different from existing processes in the organization, may require the organization to change substantially Integrated, Cross-Functional Systems • Operate across departmental boundaries – increased functionally and efficiency • Transition from functional systems is difficult • Integrated processing: requires coordination of departmental activities, need for a clear line of authority • Inter-organizational Systems: systems used by two or more related companies • Most organizations have a mixture of functional and integrated systems Cross-Functional Systems • Designed to overcome problems in functions • Two types: o Customer relationship management systems (CRM) o Enterprise resource management systems (ERP) Customer Relationship Management Systems (CRM) • Organization Customer Centered • Support processes: attracting, selling, managing, delivering and supporting customers • Direct value chain activities involving customer • Integrates four Customer Life Cycle phases • Single repository for customer data: eliminates inconsistent data, all departments access to all customer info • Customer life cycles: marketing sends messages to target market, prospects order and need to be supported, support and resale increases value to existing customers, win back processes categorize customers according to value 9 Enterprise Resource Planning Systems (ERP) • Support: primary business processes, human resources, account support processes • Enterprise-wide, cross-departmental • Integrates: sales, orders, inventory, manufacturing and customer service activities • Based on documented, tested business models Characteristics: • Provide cross-functional, process view of organization • Has a formal approach based on formal business models • Maintains data in centralized database • Offers large benefits but is difficult, fraught with challenges and can be slow to implement • Often very expensive Potential Benefits • Organizations do need to reinvent processes: tried and tested, processes effective and efficient • Inventory reductions: better planning • Lead time reduction • No data inconsistency problem: integrated database • Lower costs – higher profitability: smaller inventories, reduced lead times, cheaper customer support Problems • Costly, change is challenging Implementation • Determine current ERP models ▯ remove inconsistencies ▯ Implement the ERP 10 system EnterpriseApplication Integrations Systems (EAI): • Solves problems of isolated systems • Provides layers of software that connect applications together • Enables existing applications to communicate • Provides integrated information • Leverages existing systems • Enables gradual move to ERP • No centralized database: files of metadata describing what data kept E-commerce and Web 2.0 • Systems working across organizations: involve selling and purchasing, integrate multiple-company operations • Interorganizational Systems: o Provides a competitive advantage to both parties o Easy to see benefits for one of the organizations but often difficult to see benefits for other o Disparity makes it difficult to implement Interorganizational Systems • Systems that cross organizations: involve selling and purchasing, integrate multiple company operations • Types of Interorganizational systems: E-commerce, Supply Chain Management (SCM) E-Commerce • Buying and Selling: goods and services • Over computer networks: public/private • Interorganizational system that links: parties that buy goods and services, parties that sell those goods and services Types: • Merchant (sell their own goods), Nonmerchant (sell services, arrange sale of goods) Benefits: • Greater market efficiency: disintermediation (elimination of layer of the supply chain) • Improved flow of price info: web based price comparisons 11 • For the seller, knowledge of price elasticity: losing bidder auction prices, price experimentation, more information obtained directly from customer • Price Elasticity: measures amount of demand rises or falls with price change Economic Factors: • Industry conflict, price conflict, logistics expenses, customer service Ecommerce-Merchant • B2C (Business to Consumer): sales between supplier and customer • B2B (Business to business): sales between companies • B2G (Business to government): sales between companies and government agencies Ecommerce –Nonmerchant • E-commerce auctions: online versions of auctions, supports competitive bidding (ex. Ebay.com) • Clearinghouses/electronic exchanges: provide goods and services, matches buyers and sellers (ex. Priceline.com) Web 2.0 • Describe applications and platforms on the web • Established by Tim Reilly • Focuses on providing services, not simply software applications, that can be accessed by a large number of people • Recognizes that importance of the user as a part of the system, providing data and information that makes the service better • Creation of unique and difficult to develop data improves when more people use the system • Natural evolution of e-commerce Supply Chain Management (SCM): • Supply Chain: network of organizations and facilities (transforms raw materials into products, products delivered to customer) • Integrates primary inbound logistics business activity • Involves: customers, retailers, distributors, manufactures, suppliers; transportation, companies, warehouses, inventories; method for transmitting messages and information among organizations Information: 12 • Purpose: transactional/informational • Availability: access and sharing • Means: methods of transmissions (xml) Supplier Relationship Management (SRM) • Business process for managing contacts between an organization and suppliers: supplier any organization that sells something to an organization that has a SRM application • Supports: in-bound logistics primary activity and the procurement support activity • Sourcing Functions: find vendors. Ordering function: send and receive. Settle function: process Benefits of information systems on supply chain performance • Reduced cost of buying and selling • Expanded supply chain speed • Reduced size and cost inventory • Fix bullwhip effect • Supply chain profitability not optimized Bullwhip Effect • Variety in the size and timing of orders increase at each stage up supply chain • Natural dynamic of multistage supply chain: unrelated to erratic customer demand, large fluctuations force distributors, manufacturers, and suppliers to carry large inventories, reduces overall profitability • Eliminate effect by giving participants access to consumer demand info 13 Chapter 8 Challenges of Making Decisions: • Decision making is a daily occurrence for business managers • Factors making business decision challenging: Uncertainty and complexity, information overload, data quality Information Overload • Storage capacity increase • Cost decreases • Basically unlimited today • Exponential growth: both inside and outside organizations. Used to improve decision making • Ability to story any size customer data • Allows for a better understanding of the customers • Data can be used for forecasting •  ▯ Competitive strength: when making decisions • Business Manager’s Challenge: find appropriate data, incorporate this data into decision making • Information Systems: help/hinder Data Quality • Processed Data from operational systems can be used for: basic reports (ex. Current sales/sale projections) • Raw data unsuitable for sophisticated reporting or data mining OLTP- Support for decision making • Online Transaction Processing (OLTP) system: o Collects data electronically o Processes the transactions online • Backbone of all functional, cross-functional, and inter-organizational systems in an organization 14 • OLTP systems support decision making: o Provides raw info about transactions o Provides info bout status for an organization Transaction Processing • Real Time Processing: transactions are entered and processed immediately upon entry (ex. Airline reservation, banking) • Batch processing: system waits until it has a batch of transactions before the data are processed and the information is updated (ex. Transfer of all daily branch transactions to the central office for processing) Data Resource Challenge • While data may be collected in OLTP, the data may not be used to improve decision making • Data as anAsset? o Asset: resource from which future economic benefits may be obtained • How is data valued in an organization? Who manages it? Where is the data? • Need to treat Data as an important resource OLAP– OnlineAnalytic Processing • Focus on making OLTP – collected data useful for decision making • Provides the ability to sum, count, average, and perform other simple arithmetic operations on groups of data • Report has measures, or facts, and dimensions Business Intelligence (BI) Systems • Provide information for improving decision making • Primary systems: Reporting systems, data-mining systems, knowledge management systems, expert systems Reporting Systems • Integrate data for multiple sources • Process data: sorting, grouping, summing, averaging, comparing • Results formatted into reports • Improve decision making by providing right information to right user at right time Data-mining systems 15 • Process data using statistical techniques: regressing analysis, decision tree analysis • Look for patterns and relationships to anticipate events or predict outcomes: Market-basket analysis, Predict Donations • Application of statistical techniques to find patterns and relationships among data • Represents convergence of disciplines • Takes advantage of developments in data management to process enormous databases Unsupervised Data Mining • Analysis run before model created • Data-Mining technique applied and then results are observed • Hypotheses created after analysis to explain the results • Ex: cluster analysis: technique to identify groups of entities that have similar characteristics Supervised Data Mining • Model developed before analysis • Statistical techniques used to estimate parameters • Examples: o Regression analysis: measures impact of a set of variables on another variable o Neural Networks: predicts values. Makes classifications o Market – BasketAnalysis: computes correlations based on past performances Market-Basket Analysis • Technique for determining sales patterns • Creates probabilities that two items will be purchased together • Confidence: probability of purchasing two items • Lift: ratio of confidence to the base probability of buying an item • May need to consider multiple item purchases Knowledge-Management Systems • AProcess: creates value from intellectual capital, collecting and Sharing human knowledge • Supported by: information systems technology, five components of an information system (emphasis on people) • Fosters innovation 16 • Improve Customer Service • Increases organizational responsiveness • Reduce Costs Expert Systems • Encode human knowledge: gathered for human experts in the domain • Rule-based systems (if/then) • Improve diagnosis and decision making in non-experts EX: Expert Systems Shells • Program that process the rules • Process IF side of rules until no value returned • Reports value of all variables Expert Systems Drawbacks: • Difficult and expensive to develop: labor intensive, ties up domain experts • Difficult to maintain: changes cause unpredictable outcomes • Didn’t live up to expectations: cant duplicate diagnostic abilities of humans. Constantly needing expensive changes to programs to reflect new knowledge o Example: Expert System for Pharmacies • MYCIN developed in early 1970s: to diagnose certain infectious diseases, never routinely used, basis for may other medical systems • Dosechecker: verifies appropriate dosages • PharmADE: ensures patients are not prescribed drugs that have harmful effects • Both used when prescriptions ordered • An alert is issued as necessary • Pharmacist screen the alert and passes it to the doctor if required BI and CompetitiveAdvantage 17 • Data mining techniques should be incorporated into complete information systems • Understand the difference between the tool and the complete system: Data mining tool creates equation to compute the probability that a customer will default on a loan, while the system, uses the equation for bankers to approve or reject a loan RFMAnalysis: • Way of analyzing and ranking customers according to their purchasing patterns • Asimple technique that considers: o How Recently a customer has ordered o How Frequently a customer orders o How much Money the customer spends per order Data Warehouse • Extracts and cleans data from operational systems • Prepares data for BI processing • Data-warehouse DBMS: stores data, may also include data from external sources, metadata concerning data stored in data-warehouse meta database, extracts and provides data to BI tools Data Mart Data Collections • Created to address particular needs: business function, Problem, Opportunity • Smaller than data warehouse • Users may not have data management expertise: knowledgeable analysis for specific functions 18 Chapter 11 (powerpoint) Relationship between organizational strategy and information technology planning • Use Porter’s five forces model to consider the industry structure and then develop a competitive strategy for the organization • This competitive strategy is supported through activities in the value chain, which consist of a collection of business processes supported by information systems Supporting an Organizations IT • How many computers, type of computers, purchased hardware when, operating systems, application being used, purchase licensed software, networks, internet access, email, upgrades Information Technology Architecture • Basic framework for all the computers, systems and information management that support organizational services • EnterpriseArchitect (new job description): creates a blueprint of an organization’s information systems and the management of these systems. • Organizational objectives, business processes, databases, information flows, operating systems, application and software, and supporting technology • No Standards, yet • Typically a complicated document Popular method created by John Zachman (1980s): • Divides system into two dimensions: Six reasons for communication (what data, how function, where network, who people, when time, why motivation. • Stakeholders (planner, owner, designer, builder, implementer, and worker). Intersection provides view of the enterprise • First step to understanding how IS support business objectives 19 Alignment - It’s importance and difficulty • Process of matching organizational objectives with IT architecture • Not a straightforward process: ex. Low cost vs high-end technology • Measured as the degree to which the IT department’s missions, objectives and plans overlapped with the overall business missions, objectives and plans • Ongoing continues challenge: Fitting IT architecture to business objectives • Typically communicated between business and IT executives is the most important indicator of alignment Information Systems Governance • Ensure organizations: produce ‘good’results, avoid ‘bad’results • Development of consistent management policies and verifiable internal processes • Establishment of rules apply to: sourcing, privacy, security and international investments • Goal is to improve the benefits of an organizations IT investment over time: • Reporting structures, review processes, improve quality, reduce service costs and delivery time, reduce IT risks, Better support business processes • Organizational governance associated with information technology architecture • ▯ Laws: Sarbanes-OxelyAct, Bill 198 – Budget MeasuresAct 20 • Laws, force companies to comply with standards: collecting, reporting, disclosing info Sarbanes-OxleyAct • Revision of exchange act • Governs reporting of publicly held companies • Enacted to prevent corporate fraud: Worldcom, Enron Bill 198 – Budget MeasuresAct • Similar legislation introduced in Canada • Increased level of responsibility and accountability of executive management of publicly held Canadian companies Sarbanes OxleyAct and Budget Measures Act • Require management: create international controls (produce reliable financial statements, protect organization’s assets), Issue statement indicating this has been done • Organization’s external auditor: issue an opinion on the quality of controls and managements statements • Expose management and external auditor to financial and potential criminal liability if events show the internal controls were defective • Internal Controls: separation of duties and authorities in accounts payable (ex. Someone to authorities the expenses, someone to issue the cheque etc.) • Computer based accounting systems use for the production of financial statements: appropriate controls in place to ensure reliability • IS production of assets that are subject to liability (ex. Order-processing IS storing customer info) MIS in Use Sarbanes Oxley: boom or Bane? • Goal to strengthen and upgrade financial reporting, and thus maintain and improve trust in public companies’financial reports • Large companies expect to divert more than 15 percent of there is budgets to Sarbanes-Oxley compliance • Sarbanes-OxleyAct will provide full employment for internal and IT auditors Information SystemsAudit: 21 • Examination and verification of a company’s information resource that are used to collect, store, process and retrieve information – including organization’s IS policies and procedures • Many firms offer IS audit services Control objectives for Information and Related Technology (COBIT) • Framework of best practices designed for IT management • Developed by Information systems Audit and ControlAssociation and IT Governance Institute • Provides board members, managers, auditors and IT users: set of accepted measures, indicators, processes and best practices to assist them in getting the best for their organizational IT investment • Cobit 4, latest edition Cobit Framework Allows: • Management to benchmark the security and control practices for IT control • Users of IT services to be assured security and controls exist • Auditors to substantiate their opinions on internal control and advise on IT security and control matters Addresses issue of control from three dimensions: • Business objectives: conform to criteria: effectiveness, efficiency, confidentiality, integrity, availability, compliance, and reliability • IT resources: people, application systems, technology, facilities and data • IT Processes: four domains: planning and organization, acquisition and implementation, deliver and support, and monitoring IS Governance – It’s Importance: •
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