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Computer Hardware
a. History and evolution
I. Before computers
I. Counting on fingers & toes
II. Stones or bead abacus
III. 1642: first mechanical adding machine
IV. Industrialization
I. Looms with punch cards
V. Babbage: “analytical engine” calculates, stores values in
memory, performs logical comparisons
I. Not built because of lack of electronics
VI. Hollerith’s punch cards used for Census data using on‐of
patterns.
I. Precursor to IBM
VII. Electronic computers
VIII. 1946: First: ENIAC
I. Programmable
II. 5000 calcs/sec
III. Vacuum tubes!
IV. Drawbacks: size and processing ability
IX. 1950s: UNIVAC1, then IBM 704
I. Calcs: 100,000/sec
X. Late 1950s: transistors
I. 200,000‐250,000 calcs/sec
XI. Mid‐1960s: 3rd generation: ICs and miniaturization
XII. 1971: 4G
I. More miniaturization
II. Multiprogramming; virtual storage
XIII. 1980s: 5G Millions of calcs/sec
XIV. Microcomputers
I. Altair
II. Commodore/Radio Shack
III. Apple
IV. IBM PC – 1982
XV. Microcomputer systems
I. Personal computers
II. Network computers
III. Technical workstations
IV. PDAs
V. Information appliances
XVI. Midrange systems
I. Not as powerful as mainframes
II. Less expensive to buy, operate and maintain
III. Used to manage large websites, corporate nets,
integrated enterprise applications
IV. Used as front‐end servers to assist mainframes
with telecom & networking
II. Network servers
III. Minicomputers
IV. Web servers
V. Multiuser systems
XVII. Mainframe systems
I. Large, fast, powerful computer systems
II. Large primary storage
III. High transaction processing
IV. Handles complex computations
V. Used to serve large C/S networks
VI. Data mining warehousing & e‐commerce
II. Enterprise systems
III. Superservers
IV. Transaction processors
V. Supercomputers
I. Extremely powerful systems designed for
scientific, engineering, business applications
II. Billions to trillions of operations/sec
b. Terminology
I. Concept (paste in diagram)
II. Input devices
• Keyboard
• Mouse
• Scanner
• others
III. Output devices
• Monitor
• Printer
IV. PC guts
• CPU
• RAM (primary storage)
• Hard disk = magnetic storage (secondary storage)
• CD‐ROM = Optical storage
c. Hardware components
I. Online devices: separate from but controlled by the CPU
II. Offline devices separate from and not under the control of CPU
d. Hardware devices
I. Storage tradeoffs diagram
II. Direct vs. sequential access
II. Computer Software
a. History and evolution of computer software and programming
b. Terminology
c. Types of software
I. Diagram
II. General purpose
I. Performs common info processing tasks for end users
II. Word processor, spreadsheet
III. Aka “productivity packages”
III. Custom software
I. Developed within an org for that org’s use
IV. COTS software (commercial off the shelf)
I. Many copies sold
II. Minimal changes beyond scheduled upgrades
III. Purchasers have no control over specs, schedule, or evolution,
and no access to source code or internal docs
IV. Product vendor retains IP rights to SW
V. Open Source
I. Developers collaborate on the development of an application
using programming standards, which allow anyone to
contribute.
II. As each developer completes a project, the application code
becomes available and free to anyone who wants it
VI. Function‐specific application software
I. Thousands of these packages support specific applications of
end users
II. Supply chain/CRM, e‐commerce
VII. Suites and packages
I. Mostly widely used productivity software is bundled as suites.
II. Advantages:
I. Costs less than individual apps
II. Similar GUI
III. Interoperability
III. Disadvantages:
I. Not all features used
II. Bloatware, disk space usage
IV. Packages (“Works”) limited functionality for lower cost
V. Other software described
I. Groupware
I. Software that helps workgroups collaborate on
group assignments
II. Email, discussion groups, databases, video
conferencing
III. Lotus Notes, Groupwise, Microsoft Exchange
IV. Sharepoint, WebSphere
VI. Alternatives
I. ASPs
VII. Lots of other info in the ppt – is it needed?
I. Add some of the slides
III. Telecommunications and Networks
a. Terminology
Internet2 – next generation of Internet
ISP – company that specializes in providing easy access to Internet
Sender > Channel /consists of a medium/ > Receiver
Terminals – any input/output device that uses networks to transmit or
receive data
Telecommunications processors – devices that support data
transmission or reception
Telecommunications channels – media over which data are transmitted
or received
Networks are controlled by software
Clients – end user personal computers or networked computers
Servers – used to manage the networks
Processing
• Shared between the clients and servers
• Sometimes call two‐tier architecture
Thin client
• Three‐tier: thin clients, application servers, database servers
Peer‐to‐peer
• Pure
• Centralized
Switch – makes connection between telecommunications circuits in a
network. – Smarter connecting device. It understands addressing. More
efficient. Data Link Layer device that delivers frames within a LAN.
Router – intelligent communications processor that interconnects
networks based on different protocols. Works at network layer and
assembles bits into packets for delivery to another network.
Hub – a port‐switching communications processor
Gateway – connects networks with different communications
architectures
NIC – Network Interface Card
Multiplexer allows a single communications channel to carry
simultaneous data transmission from many terminals, increasing the
number of transmissions possible
Hub – connecting communications processor, used for example in a star
network. Not as smart as a switch. Simple.
I.
b. Strategic importance to the Enterprise
I. Tele communications networks now play a vital and pervasive role in
Web‐enabled…
I. E‐business processes
II. E‐commerce
III. Enterprise collaboration
IV. Other application that support operations, management, and
strategic objectives
II. Helps overcome geographic barriers
I. Improves customer service by reducing delay; improves supply
chain performance by increasing flexibility; increases cash flow
by speeding up the billing of customers
III. Overcome time barriers
I. Credit inquiries
IV. Overcome cost barriers
I. Reduce expensive business trips
II. Improve collaboration
V. Overcome structural barriers
I. Fast convenient services lock in customers and suppliers
Business value of Internet
VI. Internet technologies are being used as a technology platform
I. Internet
II. Intranet
III. Extranet
IV. Reinforces previous move toward client/server networks based
on open‐systems architecture
• Common standards for hardware, software, applications, and
networks
• Middleware – general term for any programming that mediates
between two separate systems – it’s the “plumbing” that routes
data and information between back‐end data sources and end‐
user applications
VII. Intranets
I. Many companies has widespread and sophisticated Intranets
I. Detailed data retrieval
II. Collaboration
III. Personalized customer profiles
IV. Links to the Internet
II. Intranets use Internet technologies
I. Protected by passwords, encryption, and firewalls
III. Intranets support:
I. Communications and collaboration Business operations
and management
II. Web publishing
III. Intranet portal management
VIII. Extranets
I. Network links that use Internet technologies to connect the
intranet of a business to the Intranet of another
II. Virtual Private Networks
III. Extranets:
IX. Business value of Extranets
I. Web browser technology makes customer and supplier access
easier and faster
II. Another way to build and strengthen strategic relationships
III. Enables and improves collaboration between business,
customers, and partners
IV. Facilitates online interactive product development and
marketing
X. Metcalfe’s Law
o the usefulness of a network equals the square of the
number of users
o the more users on a network, the more useful it
becomes
o until critical mass is attained, a change in technology
only affects the technology
once critical mass attained, social, political, an
economic systems change
I.
c. Components of Telecommunications and Networks
I. Telecom is being revolutionized by switch from analog to digital
I. Analog: voice‐oriented, continuous‐wave transmission
I. Electrical current produced is p[proportional to quantity
observed
II. Digital: discrete pulse transmission
I. Quantity observed is expressed as a number
II. Benefits:
I. higher transmission speeds
II. moves larger amounts of information
III. greater economy and much lower error rates
IV. multiple types of communications on the same circuits
III. Wireless technologies
I. Fiber‐optic
I. Uses pulses of laser light
II. Reduced size and installation effort
III. Vastly greater capacity
IV. Faster
V. Free of electrical interference
II. Satellite transmission
I. Move massive quantities of data, audio, and videa
II. Especially useful in isolated areas
Telecom network model
Processors
d. Network Security
e. Topology and Protocols
I. Topology = the structure of a network
II. Star: ties end user computers to a central computer
III. Ring: ties local computer processors together in a ring on a relatively
equal basis. Developed by IBM. The architecture of a typical Token Ring
network begins with a physical ring. However, in its IBM
implementation, a star‐wired ring, computers on the network are
connected to a central hub. Figure 3.23 shows a logical ring and a
physical star topology. The logical ring represents the token's path
between computers. The actual physical ring of cable is in the hub.
Users are part of a ring, but they connect to it through a hub.
How Token Ring Networking Works
When the first Token Ring computer comes online, the network generates a token. The token is
a predetermined formation of bits (a stream of data) that permits a computer to put data on the
cables. The token travels around the ring polling each computer until one of the computers
signals that it wants to transmit data and takes control of the token. A computer cannot
transmit unless it has possession of the token; while the token is in use by a computer, no other
computer can transmit data.
After the computer captures the token, it sends a data frame (such as the one shown in Figure
3.25) out on the network. The frame proceeds around the ring until it reaches the computer
with the address that matches the destination address in the frame. The destination computer
copies the frame into its receive buffer and marks the frame in the frame status field to indicate
that the information was received.
The frame continues around the ring until it arrives at the sending computer, where the
transmission is acknowledged as successful. The sending computer then removes the frame
from the ring and transmits a new token back on the ring. In a pure token‐passing network, a
computer that fails stops the token from continuing. This in turn brings down the network.
MSAUs were designed to detect when a NIC fails, and to disconnect from it. This procedure
bypasses the failed computer so that the token can continue on.
In IBM's MSAUs, bad MSAU connections or computers are automatically by‐passed and
disconnected from the ring. Therefore, a faulty computer or connection will not affect the rest
of the Token Ring network.
IV. Bus : local processors share the same communications channel
V. Mesh: uses direct communication line to connect some or all of the
computers in the ring to each other
VI. Protocol: a standard set of rules and procedures for the control of
communications in a network
VII. OSI – 7 layers: more a model than a protocol per se
VIII. TCP/IP – 5 layers
Layers and addresses in TCP/IP
IX. ATM
• A consistent format from LAN to WAN
• Minimum overhead
• Take advantage of fiber bandwidth
• Scalable
• Work with existing infrastructure (phone system standards, LAN standards)
• Efficiently extract a single data stream
• Support for isochronous traffic
• Accommodate bursty traffic
• Remain very simple and easy (read inexpensive) to implement
X. Frame Relay
• A private virtual network using analog and phone lines
• Packet switched
• Designed for error prone copper media
• Uses 3 protocol layers, including error detection and correction at each hop
• Low data rate (up to sub-T-1 data rates)
• Short frames
• Based on ISDN
• Addresses in Frame Relay are called DLCIs.
• Frame Relay operates only at the physical and data link layers.
• Flow or error control must be provided by the upper-layer protocols.
• Only error control is FECNs and BECNs
• Uses either SVCs or PVCs
• Frames travel through network via switches
XI. Types of communications networks
• Wide Area (covers a large geographic area)
• Local Area (connects the computers within a limited physical
area – office, building, campus)
• Virtual Private (used to establish secure intranets and extranets
I. Creates a private network without the high cost of a
separate proprietary connection
II. Builds a “pipe” through the Internet
• Client/Server
• Peer‐to‐peer
• Wireless
• MAC Addresses vs. IP addresses:
I. Be able to identify a MAC address
It looks like 02‐00‐54‐55‐4E‐01
II. IP addresses uniquely identify a host (computer) on the
network
III. It might look like:
I. 192.168.23.253
IV. Business Information Systems
a. Electronic Commerce
I. The buying, selling and marketing of products, services and information
over the Internet and other networks
II. EDI – electronic data interchange – one of the oldest e‐commerce
technologies. Pass a file to your supplier. More
III. B2B
IV. B2C
b. Types of Information Systems (Purposes: slide 20)
I. Operations Support Systems
I. Efficiently process business transactions
II. Control industrial processes
III. Support communication and collaboration
IV. Update corporate databases
I. Transaction Support Systems
I. Record and process business transactions
II. Examples: sales processing, inventory,
accounting systems
III. Batch – accumulate and process
IV. Online – process immediately
II. Process control systems
I. Monitor and control physical processes
II. Example chemical plants, refineries
III.
II. Management Support Systems
I. Provide information as reports and displays
II. Give direct support to mgrs during decision making
I. Management Information Systems
II. Decision Support Systems (diagram)
I. Interactive and ad‐hoc support
II. Companies invest in data‐driven decision
support application frameworks to help them
respond to changing market conditions and
customer needs
III. Management Information Systems, Decision
Support, and other Information Systems
IV. Levels of managerial decision‐making
(diagram)
V. Decision structure
• Structured (operational)
• Unstructured (strategic)
• Semi‐structured (tactical)
VI. Information quality
• Information has three dimensions
• Time (is it available when
needed?)
• Content (is it relevant,
accurate?)
• Form (does it facilitate
thinking?
VII. Decision support trends
• Emerging class of DS apps focuses on:
personalized decision support,
modeling, information retrieval, data
warehousing, what‐if scenarios, and
reporting
VIII. DSS use the following to support the making of
semi‐structured business decisions:
I. Analytical models
II. Specialized databases
III. A decision‐makers own insights and
judgments
IV. Interactive computer‐based modeling
process
V. A design centered around ad‐hoc,
quick‐response use by the decision
maker directly interacting with the tool
IX. Some applications of modeling and stats in DSS
I. Supply chain – simulate and optimize
flows, reduce inventory
II. Pricing – identify optimal prices
III. Product and service quality – detect
quality problems early in order to
minimize them
IV. R & D – improve quality efficacy, and
safety of products and services
X. Contrasted with MIS
I. Original MIS approach produced
information products that supported
managerial decision making
• Day‐to‐day problems
• Structured decisions
• Report‐ and display‐based
• Kinda static
III. Executive Information Systems
I. EIS
• Combines many features of MIS and
DSS
• Provide top executives wit immediate
and easy access to information
• Identify critical success factors
• So popular that it has been expanded to
managers, analysts, and other
knowledge workers
II. Features
• Customizable GUI
• Exception reports
• Trend analysis
• Drill down capability
II. Web‐based “dashboards”
I. Critical info in graphic form
II. Assembled from data pulled real time
from enterprise systems and dbs
III. Managers see changes almost
instantaneously
IV. Increasingly available to smaller
companies
V. Potential problems: pressure on
employees; divisions in the office;
tendency to hoard information; 50,000‐
foot view is inadequate(dumbed‐down),
poor information design
VI. Also: Enterprise information portals –
same concept for whole company. Not
in exam outline
III. Other Information systems
I. Expert Systems – provide advice
I. Example: credit app advisor
II. Knowledge management systems
I. Support creation, organization, and dissemination of
business knowledge throughout company
I. Example: Idea Builder
II. Strategic Information Systems
I. Purpose: attain a strategic advantage
II. Shipment tracking e‐commerce web systems
III. Functional Business Systems
I. Operational and managerial applications of
business functions:
II. Accounting, finance, marketing
c. Enterprise Resource Planning, Customer Relationship Management, Supply
Chain Management systems (Chs. 7 & 8)
I. Enterprise Information Architecture
V. Systems Analysis and Design
a. Characteristics of a system
I. A set of interrelated components
II. With a clearly defined boundary
III. Working together
IV. To achieve a common set of objectives
V. By accepting inputs and producing outputs
VI. In an organized transformation process
I. Input
I. Capturing and assembling elements that enter the
system to be processed
II. Processing
I. Transformation process that converts input into output
III. Output
I. Transferring transformed elements to their ultimate
destination
VII. An organized combination of:
I. People
II. Hardware/software
III. Communication networks
IV. Data resources
V. P&P
• All systems have input, processing, and output
• A cybernetic system, a self‐monitoring, self‐regulating system, adds feedback and
control:
• Feedback is data about the performance of a system
• Control involves monitoring and evaluating feedback to determine whether a
system is moving toward the achievement of its goal
• If a system is a component of a larger system, it’s a subsystem
• The larger system is an environment
• Several systems may share the same environment
• Some may be connected via a shared boundary or interface
• Types of systems
• Open
• Adaptive
• Systems thinking is seeing the forest and the trees in any situation
• Seeing interrelationships among systems rather that cause‐and‐effect chains
• Seeing processes of change among systems rather than discrete snapshots of
change
• See the system in any situation
• Data vs. Information
b. Systems architecture
I. Client/server
c. SDLC
I. The systems approach uses a systems orientation to define problems
and opportunities, and develop appropriate and feasible solutions.
Analyzing and solving a problem involves these interrelated activities:
I. Recognizing and defining a problem or opportunity using
systems thinking
II. Develop and evaluate alternative systems solutions
III. Select the solution that meets your requirements
IV. Design the selected system solution
V. Implement and evaluate the success of the system
II. SA&D is the overall process by which information systems are designed
and implemented
I. OO
II. Life cycle
I. Also called “waterfall”
II. Distinct from spiral
III. SDLC approach – phases with specific activities
I. Understand the business problem/opportunity – Investigation
I. Determine how to address opportunities and priorities
II. Conduct feasibility studies
III. Develop a Proj Management plan and obtain
management approval
IV. Product: feasibility study & recommendation
II. Develop an IS solution – Analysis
I. Analyze the information needs of stakeholders
II. Develop functional requirements
III. Develop logical models of current system
IV. Product: system specifications
III. Design
I. Develop specifications for the hardware, software,
people network, data resources, and the information
products to satisfy requirements
II. Develop logical models of the new system
IV. Implementation
I. Build or buy hardware and software
II. Test the system; train operators and users
III. Covert to the new system
IV. Manage the effects of systems changes on end users
V. Systems maintenance
I. Use a post‐implementation review process to monitor,
evaluate, and modify the business system as needed
VI. Managing Data Resources (db)
a. Data models
I. Hierarchical
I. Early DBMS structure
II. Tree‐like structure
III. 1:M relationships
IV. Works for structured, routine transactions
V. Can’t handle M:M relationships
II. Network
I. After hierarchical
II. M:M relationships
III. More flexible than hierarchical
IV. Unable to handle ad‐hoc requests
III. Relational
I. Most widely used
II. Row elements are stored in tables
III. Row = record; Column = field (attribute)
IV. Can relate data in one file with data in another
V. Easily responds to ad‐hoc requests
VI. Easier to work with and maintain
VII. Not as efficient user of computing resources as earlier
structures
VIII. Multidimensional
I. Variation of relational
II. Data cubes
III. OLAP
IV. Object‐oriented
I. Object consists of:
I. Data values describing the attributed of an entity
II. Operations that can be performed on the data
V. Encapsulation
I. Combine data and operations on the data
VI. Inheritance
I. New objects can be created by replicating some or all
characteristics of parent objects
VII. What differentiates them
b. Database management systems
I. Role of DBA
I. In charge of Enterprise db development
II. Manages/improves security of organizational dbs
III. Uses data def language to develop and specify data contents,
relationships, and structure
IV. Stores these specifications in a data dictionary or metadata
repository
II. Development & Design
I. Data planning
II. Requirements specification
III. Conceptual design (high‐level model)
I. Conceptual data models (ER)
IV. Logical design – translates conceptual into data model
V. Physical design
VI. Top‐down process
I. Enterprise model
II. Define end‐user needs
III. Identify key data elements
VII. Represent data relationships in a data model that supports a
business process
I. This model is the schema on which to base the physical
design and the development of application programs to
support the business process
VIII. Logical design
I. How the data looks to the designer and end user
II. Schema – overall logical view of relationships
III. Subschema – logical view for specific end users
IV. Data models for DBMS
IX. Physical design
I. How data looks to the hardware
II. How it’s to be stored and accessed
III. Common terms
• Character – a single symbol
• Field or data item – represents an attribute of some entity
• Record ‐‐ grouping of all the fields used to describe the
attributes of an entity
• File or table – a group of related records
• Database – integrated collection of logically related data
elements
• Data dictionary – contains data about data; relies on a
specialized software component to manage a db of data defs
• Normalization ‐‐ Normalization is the process of efficiently
organizing data in a database. There are two goals of the
normalization process: eliminating redundant data (for
example, storing the same data in more than one table) and
ensuring data dependencies make sense (only storing
related data in a table).
• First Normal Form (1NF)
I. First normal form (1NF) sets the very basic rules for an
organized database:
• Eliminate duplicative columns from the same
table.
• Create separate tables for each group of related
data and identify each row with a unique
column or set of columns (the primary key).
• Second Normal Form (2NF)
I. Second normal form (2NF) further addresses the
concept of removing duplicative data:
• Meet all the requirements of the first normal
form.
• Remove subsets of data that apply to multiple
rows of a table and place them in separate
tables.
• Create relationships between these new tables
and their predecessors through the use of
foreign keys.
• Third Normal Form (3NF)
I. Third normal form (3NF) goes one large step further:
• Meet all the requirements of the second normal
form.
• Remove columns that are not dependent upon
the primary key.
• Fourth Normal Form (4NF)
I. Finally, fourth normal form (4NF) has one additional
requirement:
• Meet all the requirements of the third normal
form.
• A relation is in 4NF if it has no multi‐valued
dependencies.
• Remember, these normalization guidelines are cumulative. For
a database to be in 2NF, it must first fulfill all the criteria of a
1NF database.
II. Types of databases and some extra info:
• Operational – stores detailed data needed to support business
processes and operations
I. Also called transaction databases, production
databases, or subject area databases
• Distributed databases – copies or parts of databases stored on
servers at multiple locations
I. Advantages: protection of data; smaller chunks; local
control; all locs can access all data
II. Disadvantages: maintaining accuracy
I. Replication – complex process of looking at
each distributed db and finding changes,
applying them to each distributed db
II. Duplication – one db is master; duplicate the
master in all locs after hours: easier
• External databases – available for a fee from commercial online
services, or free from the Web
• Hypermedia databases – hyperlinked pages of multimedia
(diagram of Web‐based db)
• Data warehouses – store data that has been extracted from
other dbs in an organization; after a process of cleaning
cataloging and transformation (diagram)
I. Used for data mining, analytical processing, analysis,
research, decision support
II. May be divided into data marts – function‐specific sub‐
warehouses
• Traditional file processing (old school) (diagram)
• Database management approach (diagram)
I. The foundation of modern methods of managing
organizational data
II. Consolidates data records formerly in separate files into
databases
III. Data can be accessed by many different application
programs
IV. Database Management System (DBMS) is the interface
between users and databases
V. It’s a software package used to create, maintain, and
use the databases of an organization to provide the
information needed by end users
I. Examples: MS Access, Oracle, MS SQL Server
VI. Some common DBMS components:
• Database definition – language and graphical
tools to define entities, relationships, integrity
constraints, authorization rights
• Nonprocedural access – language and graphical
tools to access data without complicated coding
• Application development – graphical tools to
develop menus, data entry forms, and reports
• Procedural language interface ‐‐ combines
nonprocedural access with full capabilities of a
programming language
• Transaction processing – control mechanism to
prevention interference from simultaneous
users and recovers lost data after a failure
• Database tuning – tools to monitor & improve
db performance
• Database development, application
development, and db maintenance
•
c. Data query and update
• End users use a DBMS query feature or report generator – no
programming required
• Query language – immediate response to ad‐hoc requests
• SQL – structured int’l standard query language ubiquitous in DMS
applications
• Example query form: SELECT…FROM…WHERE
• Most DBMS packages offer a point & click query tool that translates into
SQL
d. SQL commands:
I. SELECT
II. FROM
III. WHERE
IV. AND/OR
V. ORDER BY
VI. INSERT
VII. UPDATE
VIII. DELETE
e. Data resource management is a managerial activity
• Uses data management, data warehousing,
and other IS technologies
• Manages data resources to meet the information needs of business
stakeholders
• There’s more in the chapter not in the outline
VII. Business Decision Making
a. Knowledge Management
• A knowledge‐creating company or learning organization…
• Consistently creates new business knowledge
• Disseminates it throughout the company
• Builds it into its products and services
• Explicit Knowledge
• Data, documents, and things written down or stored in
computers
• Tacit Knowledge
• The “how‐to” knowledge in workers’ minds
• Represents some of the most important information within an
organization
• A knowledge‐creating company makes such tacit
knowledge available to others
• Successful knowledge management:
• Creates techniques, technologies, systems,
and rewards for getting employees to share
what they know
• Makes better use of accumulated workplace and enterprise
knowledge
• Knowledge management systems
• A major strategic use of IT
• Manages organizational learning and know‐how
• Helps knowledge workers create, organize, and make available
important knowledge
• Makes this knowledge available wherever and whenever it is
needed
• Knowledge includes
• Processes, procedures, patents, reference works, formulas, best
practices, forecasts, and fixes
b. Data warehousing
c. Data Mining
I. Data in data warehouses are analyzed to reveal hidden patterns and
trends
• Market‐basket analysis to identify new product bundles (diapers
and beer)
• Clustering
• Find root cause of QA or manufacturing problems
• Prevent customer attrition
• Acquire new customers
• Cross‐sell to existing customers
• Profile customers with more accuracy
• Detect fraud
II. Provides decision support through knowledge discovery
• Analyzes vast stores of historical business data
• Looks for patterns, trends and correlations
• Goal is performance improvement
III. Types of analysis
• Regression
• Decision tree
• Neural network
• Cluster detection
• Market basket analysis
• One of the most common uses for data mining
I. Determines what products customers purchase
together
II. Results affect how companies
• Market products
• Place merchandise in the store
• Lay out catalogs and order forms
• Determine what products to offer
• Customize solicitation calls
VIII. MIS and the Organization
a. Organization of MIS
• Chief Information Officer (CIO)
• Oversees all uses of information technology
in many companies, and brings them into alignment with strategic
business goals
• Chief Technology Officer (CTO)
• In charge of all information technology
planning and deployment
• Manages the IT platform
• Second in command
b. Relationship of MIS To the Enterprise
I. Technology is no longer an afterthought in business strategy, but the
cause and driver
II. Tech can change businesses compete
III. Strategic information systems are any information system that uses IT
to help an organization
I. Gain competitive advantage
II. Reduce disadvantage
III. Meet other enterprise objectives
c. Value of the MIS function
I. Slides 13, 14 15
II. E‐Business (slide 17)
I. Online exchange of value
I. Business processes
II. E‐commerce
III. Collaboration within and without
III. Does IT matter?
I. No – IT is infrastructure, like the carpet
II. Yes – the important part is the software and information and
how IT is used
III. Five Forces Model
IS in the value chain
Use IT strategically to gain competitive differentiation in:
• Products
• Services
• Capabilities
Reengineering/BRP
• IT plays a major role in reengineering most business processes
• Can substantially increase process efficiencies
• Improves communication
• Facilitates collaboration
Agility
The ability to prosper:
• In rapidly changing, continually fragmenting global markets
• By selling high‐quality high‐performance, customer‐configured products and services
An agile company profits in spite of:
• Broad product ranges
• Short model lifetimes
• Individualized products
• Arbitrary lot sizes
See slides (33) for more on Agile
Failures in IT Management
• IT not used effectively
• Computerizing traditional business processes instead of developing innovative e‐
business processes (doing the wrong thing faster)
• IT not used efficiently
• Poor response times
• Frequent downtimes
• Poorly managed application development
IX. MIS Issues
a. Security
I. Dual‐key encryption
II. Spoof
III. Phish
IV. Social engineering
b. Ethics
c. Privacy
I. US‐EU Privacy Provision
• Key data privacy provisions
• Notice of purpose and use of data collected
• Ability to opt out of third‐party distribution
of data
• Access for consumers to their information
• Adequate security, data integrity, and enforcement provisions
II.
d. Global Issues
I. Outsourcing
I. Advantages:
• Cost
• Rent expertise that it takes time and expertise to
develop in‐house
• Focus on core competencies
• Flexible staffing
• Gain access to global resources
• Decrease time to market
II. Disadvantages
• Domain knowledge is stronger in in‐house resources
Global IT Management Challenges
• Political challenges
• Many countries regulate or prohibit the
transfer of data across their national boundaries
• Others severely restrict, tax, or prohibit
imports of hardware and software
• Some have local content laws that specify the portion of the value of a product
that must be added in that country if it is to be sold there
• Others require a business to spend part of the revenue they earn in a country in
that nation’s economy
• Geoeconomic challenges
• Physical distances are still a major problem
• It may take too long to fly in specialists
• It is difficult to communicate in real time
across 24 time zones
• Many countries do not have good telephone
and telecommunications services
• It may be hard to find skilled local workers
• There can be great differences in the cost of living and labor costs between
countries
• Cultural challenges
• Languages
• Cultural interests
• Religions
• Customs
• Political philosophies
• Global IT managers need cultural training
before they are sent on assignment
• Different work styles and business relationships
Global IT Platforms
• Hardware Difficulties
• High prices
• High tariffs
• Import restrictions
• Long lead times for government approvals
• Lack of local service or spare parts
• Lack of documentation tailored to local conditions
• Software Difficulties
• Packages developed in Europe may be incompatible with American or Asian
versions
• The software publisher may refuse to supply markets that disregard software
licensing and copyright agreements
• Telecom expense
• Time zones
• Concern for jobs/economic development