FIS

Fundamentals
of Informa0on
Systems
Fourth Edi0on
Chapter 1
An Introduc0on to Informa0on Systems in
Organiza0ons
Principles and Learning Objec0ves
•  The value of informa0on is directly linked to
how it helps decision makers achieve the
organiza0on s goals
–  Dis0nguish data from informa0on and describe
the characteris0cs used to evaluate the quality of
data
Fundamentals of Informa0on

3
Systems, Fourth Edi0on
(con0nued)
•  Knowing the poten0al impact of informa0on
systems and having the ability to put this
knowledge to work can result in a successful
personal career, organiza0ons that reach their
goals, and a society with a higher quality of
life
–  Iden0fy the basic types of business informa0on
systems and discuss who uses them, how they are
used, and what kinds of benefits they deliver
4
(con0nued)
•  System users, business managers, and
informa0on systems professionals must work
together to build a successful informa0on
system
–  Iden0fy the major steps of the systems
development process and state the goal of each

5
(con0nued)
•  The use of informa0on systems to add value to
the organiza0on can also give an organiza0on a
compe00ve advantage
–  Iden0fy the value-‐added processes in the supply chain
and describe the role of informa0on systems within
them
–  Iden0fy some of the strategies employed to lower
costs or improve service
–  Define the term compe&&ve advantage and discuss
how organiza0ons are using informa0on systems to
gain such an advantage
6
(con0nued)
•  Informa0on systems personnel are the key to
unlocking the poten0al of any new or
modified system
–  Define the types of roles, func0ons, and careers
available in informa0on systems

7
Why Learn About Informa0on Systems
in Organiza0ons?
•  Informa0on systems (ISs) can cut costs and
increase profits
•  Students in most fields need to know ISs
–  Management major might be hired to design a
system to improve produc0vity
–  Biochemistry major might be hired to conduct
drug research using computer techniques


8
Introduc0on
•  Informa(on system (IS)

–  Set of interrelated components: collect,
manipulate, store, and disseminate data and
informa0on
–  Provides feedback to meet an objec0ve
–  Examples: ATMs, airline reserva0on systems,
course reserva0on systems

9
Informa0on Concepts: Data,
Informa0on, and Knowledge
•  Data: raw facts
–  Alphanumeric, image, audio, and video
•  Informa(on: collec0on of facts organized in
such a way that they have addi0onal value
beyond the value of the facts themselves


10
Data, Informa0on, and Knowledge
(con0nued)
Table 1.1: Types of Data

11
Data, Information,
and Knowledge
(continued)
Figure 1.1: Defining and Organizing Relationships Among Data Creates

Information
12
Data, Information,
and Knowledge
(continued)
Figure 1.2: The Process of Transforming Data into Information

13
The Characteris0cs of Valuable
Informa0on
Table 1.2: Characteristics of Valuable Information

14
The Characteris0cs of Valuable
Informa0on (con0nued)
Table 1.2: Characteristics of Valuable Information (continued)

15
The Value of Informa0on
•  Value of informa0on is directly linked to how
it helps decision makers achieve their
organiza0on s goals
•  For example, value of informa0on might be
measured in:
–  Time required to make a decision
–  Increased profits to the company

16
What Is an Informa0on System?
Figure 1.3: The Components of an Information System

17
Input, Processing, Output, Feedback
•  Input: the ac0vity of gathering and capturing
raw data
•  Processing: conver0ng or transforming data
into useful outputs
•  Output: produc0on of useful informa0on,
usually in the form of documents and reports
•  Feedback: output that is used to make
changes to input or processing ac0vi0es
18
Manual and Computerized
Informa0on Systems
•  An informa0on system can be:
–  Manual
•  Example: developing paêrns and trends on graph
paper for stock analysis
–  Computerized
•  Example: using program trading to track the market
and trade large blocks of stocks when discrepancies
occur

19
Computer-‐Based Informa0on Systems
•  Computer-‐based informa(on system (CBIS):
single set of hardware, so_ware, databases,
telecommunica0ons, people, and procedures
configured to collect, manipulate, store, and
process data into informa0on

20
(con0nued)
Figure 1.4: The Components of a Computer-Based Information System
Fundamentals of Informa0on Systems, Fourth Edi0on 21

(con0nued)
•  CBIS components
–  Hardware: computer equipment used to perform
input, processing, and output ac0vi0es
–  So_ware: computer programs that govern the
opera0on of the computer
–  Database: organized collec0on of facts and
informa0on
–  Telecommunica0ons: electronic transmission of
signals for communica0ons
–  Networks: connect computers and equipment in a
building, around the country, and around the world
22
(con0nued)
•  CBIS components (con0nued)
–  Internet: world s largest computer network
–  People: manage, run, program, and maintain the
system
–  Procedures: strategies, policies, methods, and
rules for using a CBIS

23
Business Informa0on Systems
•  Most common types of informa0on systems
used in business organiza0ons
–  Electronic and mobile commerce systems
–  Transac0on processing systems
–  Management informa0on systems
–  Decision support systems
–  Specialized business informa0on systems

24
Business Informa0on Systems
(con0nued)
Figure 1.5: Business Information Systems

25
Electronic and Mobile Commerce
•  E-‐commerce: any business transac0on
executed electronically between par0es
–  Companies (B2B)
–  Companies and consumers (B2C)
–  Consumers and other consumers (C2C)
–  Companies and the public sector
–  Consumers and the public sector

26
(con0nued)
Figure 1.8: Electronic Business

27
Enterprise Systems: Transac0on
Processing Systems and Enterprise
Resource Planning
•  Transac(on: business-‐related exchange
–  Payments to employees
–  Sales to customers
–  Payments to suppliers
•  Transac(on processing system (TPS):
organized collec0on of people, procedures,
so_ware, databases, and devices used to
record completed business transac0ons
28
Transac0on Processing Systems
(con0nued)
Figure 1.9: A Payroll Transaction Processing System

Enterprise Resource Planning
•  Integrated programs capable of managing a
company s vital business opera0ons for an
en0re mul0site organiza0on
•  Coordinate planning, inventory control,
produc0on, and ordering

30
Informa0on and Decision Support
Systems
•  An effec0ve TPS provides a number of
benefits to a company
•  A TPS can speed business ac0vi0es and
reduce clerical costs
•  Data stored in TPSs is used to help managers
make beêr decisions

31
Management Informa0on Systems
•  Management informa(on system (MIS)
–  Organized collec0on of people, procedures,
so_ware, databases, and devices
–  Provides rou0ne informa0on to managers/
decision makers
•  Primary focus is opera0onal efficiency

32
(con0nued)
Figure 1.10: Management Information System

Decision Support Systems
•  Decision support system (DSS)

–  Organized collec0on of people, procedures,
so_ware, databases, and devices
–  Supports problem-‐specific decision making
•  Focus is on decision-‐making effec0veness

34
Decision Support Systems (con0nued)
Figure 1.11: Essential DSS Elements

Specialized Business Informa0on
Systems: Knowledge Management,
Ar0ficial Intelligence, Expert Systems,
and Virtual Reality
•  Knowledge management systems (KMSs): an
so_ware, databases, and devices to create,
store, share, and use the organiza0on s
knowledge and experience
•  Ar(ficial intelligence (AI): field in which the
computer system takes on the characteris0cs
of human intelligence
36
Ar0ficial Intelligence
Figure 1.12: The Major Elements of Artificial Intelligence

Expert Systems
•  Give the computer the ability to make
sugges0ons and act like an expert in a
par0cular field
•  Allow organiza0ons to capture and use the
wisdom of experts and specialists
•  The knowledge base contains the collec0on
of data, rules, procedures, and rela0onships
that must be followed to achieve value or the
proper outcome
38
Virtual Reality
•  Simula0on of a real or imagined environment
that can be experienced visually in three
dimensions
•  Immersive virtual reality
•  Applica0ons that are not fully immersive
•  Can be a powerful medium for
communica0on, entertainment, and learning

39
Systems Development
•  Systems development: crea0ng or modifying
exis0ng business systems
•  Systems development can be:
–  Performed in-‐house
–  Outsourced
•  To improve results of a systems development
project, it is divided into several steps

40
Systems Development (con0nued)
Figure 1.14: An Overview of Systems Development

41
Systems Inves0ga0on and Analysis
•  Systems inves(ga(on: gain understanding of
the problem to be solved or opportunity to be
addressed
•  Systems analysis: defines problems and
opportuni0es of the exis0ng system

42
Systems Design, Implementa0on,
Maintenance, and Review
•  Systems design: how the new system will work
to meet the business needs defined during
systems analysis
•  Systems implementa(on: crea0ng or acquiring
the various system components defined in the
design step, assembling them, and pugng the
new system into opera0on
•  Systems maintenance and review: check and
modify the system so that it con0nues to meet
changing business needs
43
Organiza0ons and Informa0on
Systems
•  Organiza(on: collec0on of people and other
resources established to accomplish a set of
goals
•  An organiza0on is a system
–  Inputs: resources (materials, people, money)
–  Outputs: goods or services

44
Systems (con0nued)
Figure 1.15: A General Model of an Organization

Systems (con0nued)
•  Value chain: series (chain) of ac0vi0es that
includes inbound logis0cs, warehouse and
storage, produc0on, finished product storage,
outbound logis0cs, marke0ng and sales, and
customer service
•  Upstream management: management of raw
materials, inbound logis0cs, and warehouse and
storage facili0es
•  Downstream management: management of
finished product storage, outbound logis0cs,
marke0ng and sales, and customer service
46
Systems (con0nued)
Figure 1.16: The Value Chain of a Manufacturing Company

Systems (con0nued)
•  Supply chain management (SCM)
–  Determines required supplies, needed quan00es,
processing, and shipment
•  Customer rela0onship management (CRM)
–  Helps company manage all aspects of customer
encounters, including marke0ng, adver0sement,
sales, service, and maintaining loyalty

48
Organiza0onal Culture and Change
•  Organiza(onal culture
–  Major understandings and assump0ons
–  Influences informa0on systems
•  Organiza(onal change
–  How organiza0ons plan for, implement, and
handle change
–  Can be sustaining or disrup0ve

49
User Sa0sfac0on and Technology
Acceptance
•  Technology Acceptance Model (TAM):
specifies factors that can lead to higher
acceptance and usage of technology
•  Technology diffusion: measure of
widespread use of technology
•  Technology infusion: extent to which
technology permeates a department

50
User Sa0sfac0on and Technology
Acceptance (con0nued)
•  Compe((ve advantage: significant, long-‐

term benefit to a company over its
compe00on
–  Ability to establish and maintain a compe00ve
advantage is vital to the company s success

51
Factors That Lead Firms to Seek
Compe00ve Advantage
•  Five-‐forces model iden0fies key factors

–  Rivalry among exis0ng compe0tors
–  Threat of new entrants
–  Threat of subs0tute products and services
–  Bargaining power of buyers
–  Bargaining power of suppliers

52
Strategic Planning for Compe00ve
Advantage
•  Cost leadership
–  Deliver the lowest possible products and services
•  Differen0a0on
–  Deliver different products and services
•  Niche strategy
–  Deliver to a small, niche market
•  Altering the industry structure
–  Change the industry to become more favorable to
organiza0on

53
Strategic Planning for Compe00ve
Advantage (con0nued)
•  Crea0ng new products and services
–  Introduce periodically or frequently
•  Improving exis0ng product lines and service
–  Make real or perceived improvements
•  Other strategies
–  Growth in sales
–  First to market
–  Customizing products and services
–  Hiring the best people

54
Performance-‐Based Informa0on
Systems
•  Considers both strategic advantage and costs
•  Uses produc0vity, return on investment
(ROI), net present value, and other measures
of performance

55
Performance-‐Based Informa0on
Systems (con0nued)
Figure 1.18: Three Stages in the Business Use of Information Systems

Produc0vity
•  Output achieved divided by input required
•  Higher level of output for a given level of input
means greater produc0vity

57
Return on Investment and the Value of
Informa0on Systems
•  Earnings growth
–  Increase in profits
•  Market share
–  Percentage of sales in rela0on to total market
•  Customer awareness and sa0sfac0on
–  Based on feedback from internal and external users
•  Total cost of ownership
–  Measurement of total cost of owning computer
equipment
58
Risk
•  Managers must consider the risks of
designing, developing, and implemen0ng new
or modified informa0on systems
•  Informa0on system may be a failure
•  Costs of development and implementa0on
can be greater than the returns from the new
system

59
Careers In Informa0on Systems
•  Degree programs
–  Degrees in informa0on systems
–  Business degrees with a global or interna0onal
orienta0on
•  Computer systems are making IS
professionals work easier
•  Opportuni0es in informa0on systems are not
confined to single countries

60
Roles, Func0ons, and Careers in the IS
Department
•  Primary responsibili0es in informa0on
systems
–  Opera(ons: focuses on the efficiency of IS
func0ons
–  Systems development: focuses on development
projects and ongoing maintenance and review
–  Support: provides user assistance, data
administra0on, user training, and Web
administra0on
61
Roles, Func0ons, and Careers in the IS
Department (con0nued)
Figure 1.19: The Three Primary Responsibilities of Information Systems

Typical IS Titles and Func0ons
•  Chief Informa(on Officer (CIO)
–  Employs IS department s equipment and
personnel to help the organiza0on aâin its goals
•  LAN administrators
–  Set up and manage the network hardware,
so_ware, and security processes

63
Typical IS Titles and Func0ons
(con0nued)
•  Internet careers
–  Internet strategists and administrators
–  Internet systems developers
–  Internet programmers
–  Internet or Web site operators
•  Cer0fica0on
–  Examples: Microso_ Cer0fied Systems Engineer,
Cer0fied Informa0on Systems Security Professional
(CISSP), and Oracle Cer0fied Professional

64
Other IS Careers
•  New and exci0ng careers have developed in
security and fraud detec0on and preven0on
–  Chief Informa0on Security Officer
–  Chief Security Officer
–  Chief Privacy Officer
•  Working for a large consul0ng firm such as
Accenture, IBM, and EDS
•  Developing or selling products for a hardware
or so_ware vendor
•  Video game development
65
Global Challenges in Informa0on
Systems
•  Cultural challenges
•  Language challenges
•  Time and distance challenges
•  Infrastructure challenges
•  Currency challenges

66
Global Challenges in Informa0on
Systems (con0nued)
•  Product and service challenges
•  Technology transfer issues
•  State, regional, and na0onal laws
•  Trade agreements

67
Summary
•  Data: raw facts
•  Informa0on: organized collec0on of facts; has
addi0onal value beyond the value of facts
themselves
•  System components: input, processing,
output, and feedback
•  Computer-‐based informa0on system (CBIS)
–  Single set of hardware, so_ware, databases,
telecommunica0ons, people, and procedures
–  Collect,
Fundamentals of Informa0on manipulate, store, and process data into
68
Summary (con0nued)
•  Transac0on processing system (TPS):
record completed business transac0ons
•  Management informa0on system (MIS):
provide rou0ne informa0on to managers and
decision makers
69
Summary (con0nued)
•  Knowledge management system (KMS): an
so_ware, databases, and devices to create,
store, share, and use the organiza0on s
knowledge and experience
•  Ar0ficial intelligence (AI): field in which the
computer system takes on the characteris0cs
of human intelligence

70
Summary (con0nued)
•  Decision support system (DSS): organized
collec0on of people, procedures, so_ware,
databases, and devices used to support
problem-‐specific decision making
•  Systems development: crea0ng or modifying
exis0ng business systems
•  Compe00ve advantage: significant, long-‐term
benefit to a company over its compe00on
•  Primary responsibili0es in informa0on systems:
opera0ons, systems development, and support
71
Systems
Fourth Edi0on
Chapter 2
Hardware and So_ware

•  Informa0on system users must work closely
with informa0on system professionals to
define business needs, evaluate op0ons, and
select the hardware and so_ware that
provide a cost-‐effec0ve solu0on to those
needs
–  Iden0fy and discuss the role of the essen0al
hardware components of a computer system
–  List and describe popular classes of computer
systems and discuss the role of each

73
(con0nued)
•  Systems and applica0on so_ware are
cri0cal in helping individuals and
organiza0ons achieve their goals
–  Iden0fy and briefly describe the func0ons of
the two basic kinds of so_ware
–  Outline the role of the opera0ng system and
iden0fy the features of several popular
opera0ng systems

74
(con0nued)
•  Do not develop proprietary applica0on
so_ware unless doing so will meet a
compelling business need that can provide a
compe00ve advantage
–  Discuss how applica0on so_ware can support
personal, workgroup, and enterprise business
objec0ves
–  Iden0fy three basic approaches to developing
applica0on so_ware and discuss the pros and
cons of each
75
(con0nued)
•  Choose a programming language whose
func0onal characteris0cs are appropriate for
the task at hand, considering the skills and
experience of the programming staff
–  Outline the overall evolu0on and importance of
programming languages and clearly differen0ate
among the genera0ons of programming languages

76
(con0nued)
•  The so_ware industry con0nues to undergo
constant change; users need to be aware of
recent trends and issues to be effec0ve in
their business and personal life
–  Iden0fy several key so_ware issues and trends
that have an impact on organiza0ons and
individuals

77
Why Learn About Hardware and
So_ware?
•  Hardware can improve produc0vity, increase
revenue, reduce costs, and provide beêr service
•  Managers are expected to know about hardware
–  To help define business needs
–  To ask ques0ons and evaluate op0ons when buying
equipment
•  So_ware is indispensable for any computer
system
•  Systems so_ware needed for input, calcula0ons,
and output
•  Applica0on so_ware aids in produc0vity
78
Computer Systems: Integra0ng the
Power of Technology
•  Choosing the right computer hardware
requires understanding its rela0onship to the
informa0on system and needs of the
organiza0on
•  Hardware objec0ves are subordinate to, but
suppor0ve of, the informa0on system and the
current and future needs of the organiza0on

79
Hardware Components
•  Central processing unit (CPU)
–  Arithme0c/logic unit (ALU): performs calcula0ons
and makes logical comparisons
–  Control unit: accesses, decodes and coordinates
data in CPU and other devices
•  Primary memory: holds program instruc0ons
and data for processing
•  Secondary storage: more permanent storage
•  Input and output devices
•  Communica0ons devices
80
Hardware Components
(con0nued)
Figure 2.1: Hardware Components

Processing and Memory Devices:
Power, Speed, and Capacity
•  System unit
–  Houses the components responsible for
processing (the CPU and memory)
•  All other computer system devices are linked
either directly or indirectly into the system
unit housing

82
Processing Characteris0cs and
Func0ons
•  Clock speed: series of electronic pulses
produced at a predetermined rate that affects
machine cycle 0me
–  Clock speed is o_en measured in megahertz
(MHz), or millions of cycles per second
–  Clock speed for personal computers is in the
mul0ple gigahertz (GHz), or billions of cycles per
second, range

83
Processing Characteris0cs and
Func0ons (con0nued)
•  Physical characteris0cs of the CPU
–  Digital circuits on chips
–  To turn a digital circuit on or off, electrical current
flows through silicon

84
Memory Characteris0cs and
Func0ons: Storage Capacity
Table 2.1: Units for Measuring Computer Storage

85
Memory Characteris0cs and
Func0ons: Types of Memory
•  Random access memory (RAM)
–  Temporary
–  Vola0le
•  Read-‐only memory (ROM)
–  Usually nonvola0le

86
Mul0processing
•  Mul(processing: simultaneous execu0on

of two or more instruc0ons
–  Mul(core microprocessor: shares workload
among two or more independent processors
in a single computer
–  Parallel processing: links several processors
to operate at the same 0me, or in parallel
–  Grid compu(ng: collec0on of computers
working to solve a common problem
87
Secondary Storage and Input and
Output Devices
•  Secondary storage
–  Also called permanent storage
–  Nonvola0le
–  Greater capacity and greater economy than
memory
•  Access methods, storage capaci0es, and
portability required are determined by the
informa0on system s objec0ves

88
Access Methods
•  Sequen(al access: data must be accessed in
the order in which it is stored
–  Sequen0al access storage devices (SASDs)
•  Direct access: data can be retrieved in any
order
–  Direct access storage devices (DASDs)

89
Secondary Storage Devices
•  Magne0c tapes
–  Secondary storage used primarily for backups
•  Magne0c disks
–  Direct access secondary storage, e.g., hard disk
•  RAID
–  Stores extra bits so that data can be reconstructed
if system fails
•  SAN
–  Provides high-‐speed connec0ons between data
storage
Systems, Fourth Edi0on devices and computers
90
over a network
Secondary Storage Devices
(con0nued)
•  Op0cal disks
–  Direct access op0cal disc, e.g., CD-‐ROM
•  Digital video disk (DVD)
–  Stores several gigabytes of data
•  Flash memory
–  Nonvola0le silicon computer chip

91
Input Devices
•  Personal computer input devices
–  Keyboard, mouse
•  Speech-‐recogni0on technology
–  Input devices that recognize human speech
•  Digital cameras
–  Input device used with PC to record/store images
in digital form
•  Terminals
–  Input and display devices that perform data entry
and
Systems, Fourth input at the same 92 0me
Edi0on
Input Devices (con0nued)
•  Touch-‐sensi0ve screens
–  Allow display screens to act as input devices as
well as output devices
•  Bar-‐code scanners
–  Employs a laser scanner to read a bar-‐coded label
•  Magne0c ink character recogni0on (MICR)
devices
–  Code data on banking forms, such as checks

93
Input Devices (con0nued)
•  Pen input devices
–  Ac0vate a command, enter handwriên notes,
and draw objects
•  Radio Frequency Iden0fica0on (RFID)
–  Employs a microchip with an antenna to
broadcast its unique iden0fier and loca0on to a
receiver

94
Output Devices
•  Display monitors (CRTs)
–  Output quality measured by number of pixels and
dot pitch
•  Liquid crystal displays (LCDs)
–  Easier on eyes, use less electricity, take up less
space than CRTs
•  Organic light-‐emigng diodes (OLEDs)
–  Directly emits light rather than using backlight
–  Sharper colors and thinner displays
95
Output Devices (con0nued)
•  Printers and ploêrs: hard copy output
–  Printers: laser, inkjet
–  Ploêrs: used for general design work
•  Digital audio player
–  Stores, organizes, and plays digital music files

96
Computer System Types
Table 2.3: Types of Computer Systems

97
Overview of So_ware
•  Computer programs: sequences of

instruc0ons for the computer
•  Documenta(on: describes program
func0ons
•  Systems soTware: coordinates the
ac0vi0es of hardware and programs
•  Applica(on soTware: helps users solve
par0cular problems
98
Suppor0ng Individual, Group, and
Organiza0onal Goals
•  Sphere of influence: the scope of problems
and opportuni0es addressed by a par0cular
organiza0on
–  Personal
–  Workgroup
–  Enterprise

Suppor0ng Individual, Group, and
Organiza0onal Goals (con0nued)
Table 2.4: Classifying Software by Type and Sphere of Influence

100
Systems So_ware
•  Controlling opera0ons of computer hardware
is one of the most cri0cal func0ons of systems
so_ware
•  Also supports applica0on programs problem-‐
solving capabili0es
•  Different types of systems so_ware include:
–  Opera0ng systems
–  U0lity programs

101
Opera0ng Systems
•  Opera(ng system (OS): programs that

control the hardware and interface with
applica0ons
•  Common hardware func0ons
–  Get input (e.g., keyboard)
–  Retrieve data from disks and store data on disks
–  Display informa0on on a monitor or printer

102
Opera0ng Systems (con0nued)
•  Combina0ons of OSs, computers, and users:

–  Single computer with a single user
–  Single computer with mul0ple users
–  Mul0ple computers
–  Special-‐purpose computers

103
Figure 2.8: The Role of Systems Software

•  Ac0vi0es performed by the opera0ng system

–  Perform common computer hardware func0ons
–  Provide a user interface and input/output
management
–  Provide a degree of hardware independence
–  Manage system memory

105
•  Ac0vi0es performed by the opera0ng system

(con0nued)
–  Manage processing tasks
–  Provide networking capability
–  Control access to system resources
–  Manage files

106
•  Common hardware func0ons

–  Get input from keyboard or some other input
device
–  Retrieve data from disks
–  Store data on disks
–  Display informa0on on a monitor or printer

107
•  User interface
–  Allows individuals to access and command the
computer system
–  Command-‐based user interface: uses text
commands
–  Graphical user interface (GUI): uses icons and
menus to send commands to the computer
system

108
•  Hardware independence
–  Applica(on program interface (API): allows
applica0ons to make use of the opera0ng system
•  Memory management
–  Converts a user s request for data or instruc0ons
to the physical loca0on where the data or
instruc0ons are stored

109
Figure 2.9: Application Program Interface Links Application Software to

the Operating System

110

Operating Systems (continued)
•  Processing tasks
–  Mul(tasking: more than one program running at
the same 0me
–  Time-‐sharing: more than one person using a
computer system at the same 0me
–  Scalability: ability to handle an increasing
number of concurrent users smoothly
•  Networking capability: aids users in
connec0ng to a computer network
111
•  Access to system resources
–  Protec0on against unauthorized access
–  Logins and passwords
•  File management
–  Ensures that files in secondary storage are:
•  Available when needed
•  Protected from access by unauthorized users

112
Current Opera0ng Systems
Table 2.5: Popular Operating Systems Across All Three Spheres of Influence

(con0nued)
•  Microso_ PC opera0ng systems
–  PC-‐DOS and MS-‐DOS: early, command-‐driven OSs
–  Windows XP: greatly improved stability and
security over previous versions of Windows
–  Windows XP N: for European market
–  Windows XP Professional X64: for computers with
newer 64-‐bit capabili0es
–  Windows XP Media Center Edi0on: incorporates
addi0onal mul0media features
–  Vista: latest version of Windows
114
(con0nued)
•  Apple opera0ng systems
–  O_en provides cugng edge tools in graphics and
music not available from Microso_
–  Mac OS X
•  Jaguar (OS X.2)
•  Panther (OS X.3)
•  Tiger (OS X.4): support for 64-‐bit compu0ng,
Dashboard, Spotlight, etc.

115
(con0nued)
•  Linux
–  Developed by Linus Torvalds in 1991
–  Open-‐source product
–  Only the kernel of an OS
–  Several distribu0ons available with capabili0es/
applica0ons that form a complete OS
•  Examples: Red Hat Linux, Caldera OpenLinux

116
Workgroup Opera0ng Systems
•  Windows Server
•  UNIX
•  NetWare
•  Red Hat Linux
•  Mac OS X Server

117
Enterprise Opera0ng Systems
•  z/OS
•  MPE/iX and HP-‐UX
•  Linux

118
Opera0ng Systems for Small
Computers, Embedded
Computers, and Special-‐Purpose
Devices
•  Palm OS
•  Windows Embedded
•  Windows Mobile

119
Applica0on So_ware
•  Give users the ability to solve problems and
perform specific tasks
•  Interact with systems so_ware; systems
so_ware then directs the hardware to
perform tasks

120
Types and Func0ons of Applica0on
So_ware
•  Proprietary soTware: unique program for a
specific applica0on, usually developed and
owned by a single company
•  Off-‐the-‐shelf soTware: exis0ng so_ware
program that can be purchased
•  Customized package

121
So_ware (con0nued)
Figure 2.13: Types of Application Software

122
So_ware (con0nued)
Table 2.6: A Comparison of Proprietary and Off-the-Shelf Software

123
So_ware (con0nued)
Table 2.6: A Comparison of Proprietary and Off-the-Shelf Software

(continued)
124
Personal Applica0on So_ware
•  Serves the needs of an individual user
•  Includes personal produc0vity so_ware
–  Enables users to improve their personal
effec0veness

125
(con0nued)
Table 2.7: Examples of Personal Productivity Software

(con0nued)
Table 2.7: Examples of Personal Productivity Software (continued)

(con0nued)
•  SoTware suite: collec0on of single applica0on
programs packaged in a bundle
–  Microso_ Office: most popular general-‐purpose
so_ware suite
–  Other general-‐purpose so_ware suites: Corel s
WordPerfect Office, Lotus SmartSuite, Sun
Microsystems s StarOffice
•  Integrated applica(on packages: offer a range of
capabili0es for less money than so_ware suites
–  Example: Microso_ Works

128
(con0nued)
Table 2.8: Major Components of Leading Software Suites

129
Workgroup Applica0on So_ware
•  Workgroup applica(on soTware: support

teamwork, whether people are in the same
loca0on or dispersed around the world
•  Groupware: so_ware that helps groups of
people work together more efficiently and
effec0vely

130
Workgroup Applica0on So_ware
(con0nued)
Table 2.9: Ernst & Young s Three Cs Rule for Groupware

131
Enterprise Applica0on So_ware
•  So_ware that benefits an en0re organiza0on
•  Enterprise resource planning (ERP) soTware:
programs that manage a company s vital
business opera0ons for an en0re mul0site,
global organiza0on

132
Enterprise Applica0on So_ware
(con0nued)
Table 2.10: Examples of Enterprise Application Software

133
Applica0on So_ware for Informa0on,
Decision Support,
and Specialized Purposes
•  Used in businesses of all sizes and types to
increase profits or reduce costs
•  Available in every industry
–  Example: analysis to increase the cure rate for
cancer

134
Programming Languages
•  Sets of keywords, symbols, and a system of

rules for construc0ng statements
•  Allow humans to communicate instruc0ons
to be executed by a computer
•  Syntax: a set of rules associated with a
programming language
•  Different languages have characteris0cs that
make them appropriate for par0cular types
of applica0ons
135
Programming Languages
(con0nued)
Table 2.11: The Evolution of Programming Languages

136
So_ware Issues and Trends
•  So_ware issues and trends receiving
increasing aên0on
–  So_ware bugs
–  Copyrights and licenses
–  So_ware upgrades
–  Global so_ware support

137
So_ware Bugs
•  SoTware bug: defect in a computer program that
keeps it from performing as it is designed to
perform
•  Tips for reducing impact of so_ware bugs
include:
–  Register all so_ware so that you can receive bug
alerts, fixes, and patches
–  Check the manual or read-‐me files for work-‐arounds
–  Access support area of the manufacturer s Web site
for patches
–  Install the latest so_ware updates

138
Copyrights and Licenses
•  Most so_ware products are protected by law
using copyright or licensing provisions
–  In some cases, you are given unlimited use of
so_ware on one or two computers
–  In other cases, you pay for your usage—if you use
the so_ware more, you pay more
•  Some so_ware now requires that you register
or ac&vate it before it can be fully used

139
So_ware Upgrades
•  So_ware companies periodically revise their
programs and sell new versions
•  Revised so_ware
–  May offer new and valuable enhancements
–  May just contain complex program code changes
that offer li^le in terms of addi0onal capabili0es
•  So_ware upgrades usually cost much less than
the original purchase price

140
Global So_ware Support
•  For large, global companies, gegng adequate
so_ware support at all their loca0ons for their
standardized, companywide systems is a big
challenge
•  Large vendors such as Sybase, IBM, and
Hewle^-‐Packard typically contract out support
for their so_ware to local providers

141
Summary
•  Hardware: central processing unit (CPU), input
and output devices, communica0ons devices,
primary storage devices, and secondary
storage devices
•  Random access memory (RAM): temporary
and vola0le
•  Read-‐only memory (ROM): usually nonvola0le
•  Mul0processing: simultaneous execu0on of
two or more instruc0ons
142
Summary (con0nued)
•  Sequen0al access: records retrieved in order
•  Direct access: records retrieved in any order
•  Computer programs: sequences of
instruc0ons for the computer
•  Systems so_ware: coordinates the ac0vi0es of
hardware and programs
•  Applica0on so_ware: helps users solve
problems
143
Summary (con0nued)
•  Opera0ng system (OS): set of computer
programs that control the hardware and
interface with applica0ons
•  Graphical user interface (GUI): uses icons and
menus to send commands to the computer
system
•  Programming languages: allow humans to
communicate instruc0ons to be executed by a
computer
144
Systems
Fourth Edi0on
Chapter 3
Organizing Data and Informa0on
•  Data management and modeling are key
aspects of organizing data and informa0on
–  Define general data management concepts and
terms, highligh0ng the advantages of the
database approach to data management
–  Describe the rela0onal database model and
outline its basic features

146
(con0nued)
•  A well-‐designed and well-‐managed database is
an extremely valuable tool in suppor0ng
decision making
–  Iden0fy the common func0ons performed by all
database management systems and iden0fy
popular user database management systems

147
(con0nued)
•  The number and types of database
applica0ons will con0nue to evolve and yield
real business benefits
–  Iden0fy and briefly discuss current database
applica0ons

148
Why Learn About Database Systems?
•  Database systems process and organize large
amounts of data
•  Examples
–  Marke0ng manager can access customer data
–  Corporate lawyer can access past cases and
opinions

149
Introduc0on
•  Database: an organized collec0on of data
•  Database management system (DBMS): group of
programs to manage database
–  Manipulates database
–  Provides an interface between database and the user
of the database and other applica0on programs
•  Database administrator (DBA): skilled IS
professional who directs all ac0vi0es related to
an organiza0on s database
150
Data Management
•  Without data and the ability to process it, an
organiza0on could not successfully complete
most business ac0vi0es
•  Data consists of raw facts
•  For data to be transformed into useful
informa0on, it must first be organized in a
meaningful way

151
The Hierarchy of Data
•  Bit (a binary digit): a circuit that is either on or off
•  Byte: eight bits
•  Character: basic building block of informa0on
–  Each byte represents a character
–  Can be an uppercase leêr, lowercase leêr, numeric
digit, or special symbol
•  Field: typically a name, number, or combina0on
of characters that describes an aspect of a
business object or ac0vity
152
The Hierarchy of Data (con0nued)
•  Record: a collec0on of related data fields
•  File: a collec0on of related records
•  Database: a collec0on of integrated and
related files
•  Hierarchy of data: bits, characters, fields,
records, files, and databases

153
The Hierarchy of Data (con0nued)
Figure 3.1: The Hierarchy of Data

Data En00es, A^ributes, and Keys
•  En(ty: a generalized class of people, places, or
things (objects) for which data is collected,
stored, and maintained
•  AZribute: characteris0c of an en0ty
•  Data item: value of an a^ribute
•  Key: field or set of fields in a record that is
used to iden0fy the record
•  Primary key: field or set of fields that uniquely
iden0fies the record
155
Data En00es, A^ributes, and Keys
(con0nued)
Figure 3.2: Keys and Attributes

The Database Approach
•  Tradi0onal approach to database

management: separate data files are created
for each applica0on
–  Results in data redundancy (duplica0on)
–  Data redundancy conflicts with data integrity
•  Database approach to database
management: pool of related data is shared
by mul0ple applica0ons
–  Significant advantages over tradi0onal approach
157
(con0nued)
Figure 3.3: The Database Approach to Data Management

(con0nued)
Table 3.1: Advantages of the Database Approach

(con0nued)
Table 3.1: Advantages of the Database Approach (continued)

(con0nued)
Table 3.2: Disadvantages of the Database Approach

Data Modeling and the Rela0onal
Database Model
•  When building a database, consider:
–  Content: What data should be collected, at what
cost?
–  Access: What data should be provided to which
users and when?
–  Logical structure: How should data be arranged to
make sense to a given user?
–  Physical organiza&on: Where should data be
physically located?
162
Data Modeling
•  Building a database requires two types of
designs
–  Logical design
•  Abstract model of how data should be structured and
arranged to meet an organiza0on s informa0on needs
–  Physical design
•  Fine-‐tunes the logical database design for performance
and cost considera0ons

163
Data Modeling (con0nued)
•  Data model: a diagram of data en00es and
their rela0onships
•  En(ty-‐rela(onship (ER) diagrams: data
models that use basic graphical symbols to
show the organiza0on of and rela0onships
between data

164
Data Modeling (con0nued)
Figure 3.4: An Entity-Relationship (ER) Diagram for a Customer Order

Database
The Rela0onal Database Model
•  Rela(onal model: all data elements are
placed in two-‐dimensional tables (rela0ons),
which are the logical equivalent of files
•  In the rela0onal model
–  Each row of a table represents a data en0ty
–  Columns of the table represent a^ributes
–  Domain: the allowable values for data a^ributes

166
The Rela0onal Database Model
(con0nued)
Figure 3.5: A Relational Database Model

Manipula0ng Data
•  Selec(ng: eliminates rows according to
criteria
•  Projec(ng: eliminates columns in a table
•  Joining: combines two or more tables
•  Linking: relates or links two or more tables
using common data a^ributes

168
Manipula0ng Data (con0nued)
Figure 3.6: A Simplified ER Diagram Showing the Relationship Between

the Manager, Department, and Project Tables
169
Manipula0ng Data (con0nued)
Figure 3.7: Linking Data Tables to Answer an Inquiry

Database Management Systems
(DBMS)
•  Interface between:
–  Database and applica0on programs
–  Database and the user
•  Crea0ng and implemen0ng the right
database system ensures that the database
will support both business ac0vi0es and goals
•  DBMS: a group of programs used as an
interface between a database and applica0on
programs or a database and the user
171
Overview of Database Types
•  Flat file
–  Simple database program whose records have no
rela0onship to one another
•  Single user
–  Only one person can use the database at a 0me
–  Examples: Access, FileMaker, and InfoPath
•  Mul0ple user
–  Allows dozens or hundreds of people to access the
same database system at the same 0me
Examples:
– Fourth
Systems, Edi0on Oracle, Sybase,
172 and IBM
Providing a User View
•  Schema: descrip0on of the en0re database
•  Large database systems typically use schemas
to define the tables and other database
features associated with a person or user

173
Crea0ng and Modifying the
Database
•  Data defini(on language (DDL)
–  Collec0on of instruc0ons/commands that define
and describe data and data rela0onships in a
database
–  Allows database creator to describe the data and
the data rela0onships that are to be contained in
the schema
•  Data dic(onary: a detailed descrip0on of all
the data used in the database
174
Database (con0nued)
Figure 3.10: Using a Data Definition Language to Define a Schema

Database (con0nued)
Figure 3.11: A Typical Data Dictionary Entry

Storing and Retrieving Data
•  When an applica0on requests data from the
DBMS, the applica0on follows a logical access
path
•  When the DBMS goes to a storage device to
retrieve the requested data, it follows a path
to the physical loca0on (physical access path)
where the data is stored

177
Storing and Retrieving Data
(con0nued)
Figure 3.12: Logical and Physical Access Paths

Manipula0ng Data and Genera0ng
Reports
•  Query-‐By-‐Example (QBE): a visual approach
to developing database queries or requests
•  Data manipula(on language (DML):
commands that manipulate the data in a
database
•  Structured Query Language (SQL): ANSI
standard query language for rela0onal
databases
•  Database programs can produce reports,
documents, and other outputs
179
Manipula0ng Data and Genera0ng
Reports (con0nued)
Table 3.3: Examples of SQL Commands

Database Administra0on
•  Database administrator (DBA): directs or
performs all ac0vi0es to maintain a database
environment
–  Designing, implemen0ng, and maintaining the
database system and the DBMS
–  Establishing policies and procedures
–  Employee training

181
Popular Database Management
Systems
•  Popular DBMSs for end users: Microso_
Access and FileMaker Pro
•  En0re market includes databases by IBM,
Oracle, and Microso_
•  Examples of open-‐source database systems:
PostgreSQL and MySQL
•  Many tradi0onal database programs are now
available on open-‐source opera0ng systems
182
Special-‐Purpose Database Systems
•  Specialized database packages are used for
specific purposes or in specific industries
–  Israeli Holocaust Database
–  Hazmat database
–  Art and An0que Organizer Deluxe
•  Special-‐purpose database by Tableau can be
used to store and process visual images

183
Selec0ng a Database Management
System
•  Important characteris0cs of databases to
consider
–  Size of the database
–  Cost of the system
–  Number of concurrent users
–  Performance
–  Ability to be integrated with other systems
–  Vendor considera0ons

184
Using Databases with Other
So_ware
•  Database management systems are o_en
used with other so_ware packages or the
Internet
•  A database management system can act as a
front-‐end applica0on or a back-‐end
applica0on
–  Front-‐end applica0on: interacts with users
–  Back-‐end applica0on: interacts with applica0ons

185
Database Applica0ons
•  Database applica0ons manipulate content of a
database to produce useful informa0on
•  Common manipula0ons are searching,
filtering, synthesizing, and assimila0ng the
data

186
Linking Databases to the Internet
•  Linking databases to the Internet is important
for many organiza0ons and people
•  Seman0c Web
–  Developing a seamless integra0on of tradi0onal
databases with the Internet
–  Allows people to access and manipulate a number
of tradi0onal databases at the same 0me through
the Internet

187
Data Warehouses, Data Marts, and
Data Mining
•  Data warehouse: collects business
informa0on from many sources in the
enterprise
•  Data mart: a subset of a data warehouse
•  Data mining: an informa0on-‐analysis tool for
discovering paêrns and rela0onships in a
data warehouse or a data mart

188
Data Warehouses, Data Marts,
and Data Mining (con0nued)
Figure 3.17: Elements of a Data Warehouse

Data Warehouses, Data Marts,
and Data Mining (con0nued)
Table 3.5: Common Data-Mining Applications

Business Intelligence
•  Business intelligence (BI): gathering the right
informa0on in a 0mely manner and usable
form and analyzing it to have a posi0ve impact
on business
–  Turns data into useful informa0on that is then
distributed throughout an enterprise

191
Business Intelligence (con0nued)
•  Compe((ve intelligence: aspect of business
intelligence limited to informa0on about
compe0tors and the ways that knowledge
affects strategy, tac0cs, and opera0ons
•  Counterintelligence: steps an organiza0on
takes to protect informa0on sought by
hos0le intelligence gatherers

192
Distributed Databases
•  Distributed database
–  Data may be spread across several smaller
databases connected via telecommunica0ons
devices
–  Corpora0ons get more flexibility in how databases
are organized and used
•  Replicated database
–  Holds a duplicate set of frequently used data

193
Online Analy0cal Processing
(OLAP)
•  So_ware that allows users to explore data
from a number of different perspec0ves
Table 3.6: Comparison of OLAP and Data Mining

Object-‐Oriented and Object-‐
Rela0onal Database Management
Systems
•  Object-‐oriented database
–  Stores both data and its processing instruc0ons
–  Method: a procedure or ac0on
–  Message: a request to execute or run a method

195
Object-‐Oriented and Object-‐
Rela0onal Database Management
Systems (con0nued)
•  Object-‐oriented database management
system (OODBMS)
–  Programs that manipulate an object-‐oriented
database and provide a user interface and
connec0ons to other applica0on programs
•  Object-‐rela(onal database management
system (ORDBMS)
–  A DBMS capable of manipula0ng audio, video, and
graphical
data 196
Visual, Audio, and Other Database
Systems
•  Visual databases for storing images
•  Audio databases for storing sound
•  Virtual database systems: allow different
databases to work together as a unified
database system
•  Other special-‐purpose database systems
–  Spa0al data technology: stores and accesses data
according to the loca0ons it describes and permits
spa0al queries and analysis
197
Summary
•  Hierarchy of data: bits, characters, fields,
records, files, and databases
•  En0ty: generalized class of people, places, or
things (objects) for which data is collected,
stored, and maintained
•  A^ribute: characteris0c of an en0ty
•  Data model: diagram of data en00es and
rela0onships
•  Rela0onal model: describes data in which all
elements are placed in two-‐dimensional tables

198
Summary (con0nued)
•  Selec0ng: eliminates rows according to criteria
•  Projec0ng: eliminates columns in a table
•  A database management system (DBMS) is a
group of programs used as an interface
between:
–  Database and applica0on programs
–  Database and the user
•  Data dic0onary: detailed descrip0on of all the
data used in the database
199
Summary (con0nued)
•  Data warehouse: database that collects
business informa0on from all aspects of a
company s processes, products, and
customers
•  Data mining: an informa0on-‐analysis tool for
discovering paêrns and rela0onships in a
data warehouse
•  Object-‐oriented database: stores both data
and its processing instruc0ons
200
Systems
Fourth Edi0on
Chapter 4
Telecommunica0ons, the Internet,
Intranets, and Extranets
•  The effec0ve use of communica0ons technology
is essen0al to organiza0onal success by enabling
more people to send and receive all forms of
informa0on over greater distances at faster and
faster rates
–  Define the term telecommunica&ons and describe
the components of a telecommunica0ons system
including media and hardware devices
–  Iden0fy several network types and the uses and
limita0ons of each
–  Define the term communica&ons protocol and
iden0fy several common ones

202
(con0nued)
•  The Internet and the Web provide a wide range
of services, some of which are effec0ve and
prac0cal for use today, others that are s0ll
evolving, and s0ll others that will fade away
from lack of use
–  Briefly describe how the Internet works, including
alterna0ves for connec0ng to it and the role of
Internet service providers
–  Describe how the World Wide Web works and the
use of Web browsers, search engines, and other
Web tools
–  Iden0fy programming languages and tools used to
create Web content

203
(con0nued)
•  Because the Internet and the World Wide
Web are becoming more universally used and
accepted for business use, management,
service and speed, privacy, and security issues
must con0nually be addressed and resolved
–  Iden0fy and briefly describe several applica0ons
associated with the Internet and the Web
–  Define the terms intranet and extranet and
discuss how organiza0ons are using them
–  Iden0fy several issues associated with the use of
networks
204
Why Learn About Telecommunica0ons, the
Internet, Intranets and Extranets?
•  Need to access data wherever it resides
–  Fast, reliable communica0ons
–  Exchange messages
–  Upload/download data and so_ware
–  Route business transac0ons
–  Connect to remote databases
–  Send output to printers

205
Why Learn About
Telecommunica0ons and
Networks?
•  Need to access data wherever it resides
–  Fast, reliable communica0ons
–  Exchange messages
–  Upload/download data and so_ware
–  Route business transac0ons
–  Connect to remote databases
–  Send output to printers

206
An Overview of
Telecommunica0ons
•  Telecommunica(ons: the electronic
transmission of signals for communica0ons
•  Telecommunica(ons medium: anything that
carries an electronic signal and interfaces
between a sending device and a receiving
device

207
An Overview of
Telecommunica0ons (con0nued)
Figure 4.1: Elements of a Telecommunications System

Channel Bandwidth
•  Telecommunica0ons professionals consider
the capacity of the communica0ons path or
channel when they recommend transmission
media for a business
•  Channel bandwidth: the rate at which data is
exchanged over a communica0on channel
–  Usually measured in bits per second (bps)

209
Communica0ons Media
Table 4.1: Guided Transmission Media Types

Communica0ons Media
(con0nued)
Table 4.2: Wireless Technologies

Telecommunica0ons Hardware
Table 4.3: Common Telecommunications Devices

Services
•  Digital subscriber line (DSL):
telecommunica0ons service that delivers high-‐
speed Internet access to homes and small
businesses over the exis0ng phone lines of the
local telephone network
•  All major long distance carriers offer wireless
telecommunica0ons services that enable you
to place phone calls or access the Internet

213
Networks and Distributed
Processing
•  Computer network: the communica0ons
media, devices, and so_ware needed to
connect two or more computer systems and/
or devices
•  Network nodes: the computers and devices on
the networks

214
Network Types
•  Personal area network (PAN)
•  Local area network (LAN)
•  Metropolitan area network (MAN)
•  Wide area network (WAN)
•  Interna0onal networks
•  Mesh networking

215
Network Types (con0nued)
Figure 4.4: A Typical LAN

Network Types (con0nued)
Figure 4.5: A Wide Area Network

Distributed Processing
•  Centralized processing: all processing occurs
in a single loca0on or facility
•  Decentralized processing: processing devices
are placed at various remote loca0ons
•  Distributed processing: computers are placed
at remote loca0ons but connected to each
other via a network

218
Client/Server Systems
•  Client/Server system: mul0ple computer
plaporms are dedicated to special func0ons,
such as database management, prin0ng,
communica0ons, and program execu0on

219
Client/Server Systems (con0nued)
Figure 4.8: Client/Server Connection

Communica0ons So_ware and
Protocols
•  Communica(ons protocol: a set of rules that
govern the exchange of informa0on over a
communica0ons channel
•  Protocols govern several levels of a
telecommunica0ons network, such as:
–  Hardware device level
–  Applica0on program level

221
Communica0ons So_ware and
Protocols (con0nued)
Table 4.4: Common Telecommunications Protocols

Wireless Communica0ons
Protocols
•  Wireless communica0ons protocols are s0ll
evolving as the industry matures
•  The Ins0tute for Electrical and Electronic
Engineers (IEEE) has been instrumental in
defining numerous telecommunica0ons
standards

223
Wireless Communica0ons
Protocols (con0nued)
Table 4.5: Wireless Networks Based on IEEE 802.xx Standards

Communica0ons So_ware
•  Network opera(ng system (NOS): systems
so_ware that controls the computer systems
and devices on a network and allows them to
communicate with each other
•  Network-‐management soTware: so_ware
that a manager uses on a networked desktop
–  Monitors the use of individual computers and
shared hardware (such as printers)
–  Scans for viruses
–  Ensures
Fundamentals of Informa0on compliance with so_ware licenses
225
Use and Func0oning of the
Internet
•  Internet: a collec0on of interconnected
networks, all freely exchanging informa0on
•  ARPANET
–  The ancestor of the Internet
–  A project started by the U.S. Department of
Defense (DoD) in 1969
•  Internet Protocol (IP): communica0on
standard that enables traffic to be routed
from one network to another as needed
226
How the Internet Works
•  The Internet transmits data from one
computer (called a host) to another
•  If the receiving computer is on a network to
which the first computer is directly connected,
it can send the message directly
•  If the receiving computer is not on a network
to which the sending computer is connected,
the sending computer relays the message to
another computer that can forward it
227
(con0nued)
•  Data is passed in chunks called packets
•  Transmission Control Protocol (TCP): widely
used transport-‐layer protocol that is used in
combina0on with IP by most Internet
applica0ons
•  Uniform Resource Locator (URL): an assigned
address on the Internet for each computer

228
(con0nued)
•  Accessing the Internet
–  Connect via LAN server
–  Connect via Serial Line Internet Protocol (SLIP)/
Point-‐to-‐Point Protocol (PPP)
–  Connect via an online service
–  Several other ways to connect
•  Example: WAP

229
(con0nued)
Figure 4.11: Routing Messages over the Internet

(con0nued)
Figure 4.12: Several Ways to Access the Internet

Internet Service Providers
•  Internet service provider (ISP): any company
that provides individuals or organiza0ons with
access to the Internet
•  Most charge a monthly fee
•  Many ISPs and online services offer
broadband Internet access through digital
subscriber lines (DSLs), cable, or satellite
transmission

232
Internet Service Providers
(con0nued)
Table 4.7: A Representative List of Internet Service Providers

233
The World Wide Web
•  The Web, WWW, or W3
•  A menu-‐based system that uses the client/
server model
•  Organizes Internet resources throughout the
world into a series of menu pages, or screens,
that appear on your computer
•  Hypermedia: tools that connect the data on
Web pages, allowing users to access topics in
whatever order they want
234
The World Wide Web (con0nued)
•  Hypertext Markup Language (HTML): the
standard page descrip0on language for Web
pages
•  HTML tags: codes that let the Web browser
know how to format text -‐ as a heading, as a
list, or as body text -‐ and whether images,
sound, and other elements should be inserted

235
The World Wide Web (con0nued)
Figure 4.13: Sample Hypertext Markup Language

Web Browsers
•  Web browser: so_ware that creates a unique,
hypermedia-‐based menu on a computer
screen, providing a graphical interface to the
Web
•  The menu consists of graphics, 0tles, and text
with hypertext links
•  Popular Web browsers: Microso_ Internet
Explorer, Netscape Navigator, Mozilla Firefox,
Apple Computer s Safari
237
Search Engines and Web Research
•  Search engine: Web search tool
–  Examples: Yahoo.com, Google.com
•  Most search engines are free
•  Searches can use words, such as AND and OR
to refine the search
•  Meta-‐search engine: submits keywords to
several individual search engines and returns
results from all these search engines
238
Search Engines and Web Research
(con0nued)
Table 4.10 Popular Search Engines

Web Programming Languages
•  Java
–  An object-‐oriented programming language from
Sun Microsystems based on C++
–  Allows small programs (applets) to be embedded
within an HTML document

240
Developing Web Content
•  Products that greatly simplify the crea0on of

a Web page
–  Example: .NET plaporm
•  Other Web publishing packages include
Bubbler, Homestead QuickSites, and JobSpot

241
Web Services
•  Standards and tools that streamline and
simplify communica0on among Web sites for
business and personal purposes

242
Internet and Web Applica0ons: E-‐
Mail, Instant Messaging, and Push
Technology
•  E-‐mail is no longer limited to simple text
messages
–  Sound and images can be embedded in messages
–  Files that contain text documents, spreadsheets,
graphs, or executable programs can be aâched
•  Instant messaging: allows two or more
individuals to communicate online using the
Internet
243
Internet Cell Phones and Handheld
Computers
•  Some cell phones can be connected to the
Internet to:
–  Search for informa0on
–  Buy products
–  Chat with business associates and friends
•  Handheld computers and other devices can
be connected to the Internet using phone
lines or wireless connec0ons, such as Wi-‐Fi
244
Career Informa0on and Job
Searching
•  Internet is an excellent source of job-‐related
informa0on
•  Most medium and large companies have
Internet sites that list open posi0ons, salaries,
benefits, and people to contact for further
informa0on
•  Some sites can help you develop a good
résumé and an effec0ve cover leêr, apply for
jobs online, prepare for a job interview, and
nego0ate a good employment contract
245
Web Log (Blog), Video Log (Vlog),
and Podcas0ng
•  Web log (blog): Web site that people can
create and use to write about their
observa0ons, experiences, and feelings on a
wide range of topics
•  Video log (vlog): video content placed on the
Internet using the same overall approach as a
blog
•  Podcast: audio blog, like a personal radio
sta0on on the Internet
–  Extends blogging by adding
246 audio messages
Chat Rooms
•  Chat room: facility that enables two or more
people to engage in interac0ve
conversa0ons over the Internet

247
Internet Phone and
Videoconferencing Services
•  Internet phone service enables you to
communicate with others around the world
–  Rela0vely inexpensive
–  Useful for interna0onal calls
–  Ability to keep your phone number when you
move to another loca0on
•  Internet videoconferencing
–  Supports both voice and visual communica0ons

248
Content Streaming
•  Content streaming: a method for transferring
mul0media files over the Internet so that the
data stream of voice and pictures plays more
or less con0nuously without a break, or with
very few breaks
–  Enables users to browse large files in real 0me

249
Shopping on the Web
•  Shopping on the Web for books, clothes, cars,
medica0ons, and even medical advice can be
convenient, easy, and cost effec0ve
•  Bot: so_ware tool that searches the Web for
informa0on, products, or prices

250
Web Auc0ons
•  Web auc(on: Internet site that matches
buyers and sellers
–  eBay is one of the most popular auc0on sites
•  Tradi0onal companies are star0ng their own
auc0on sites

251
Music, Radio, Video, and TV on the
Internet
•  Music, radio, and video are hot growth areas
on the Internet
•  Audio and video programs can be played on
the Internet, or files can be downloaded for
later use

252
Office on the Web
•  Many services and so_ware products give you
remote access to your files and programs over
the Internet
–  Examples: Avvenu, EasyReach, BeInSync
•  Companies that offer remote access include
MyWebEx PC Pro, Citrix Online, and Laplink
•  Works best with broadband Internet access

253
Other Internet Services and
Applica0ons
•  Internet services are constantly emerging
–  Libraries
–  Cri0cal informa0on during 0mes of disaster or
terrorism
–  Cri0cal medical informa0on
–  Transla0on
–  Distance learning

254
Intranets and Extranets
•  Intranet
–  Internal corporate network built using Internet
and World Wide Web standards and products
–  Used by employees to gain access to corporate
informa0on
–  Reduces need for paper

255
Intranets and Extranets
(con0nued)
•  Extranet
–  A network based on Web technologies that links
selected resources of a company s intranet with
its customers, suppliers, or other business
partners
•  Virtual private network (VPN): secure
connec0on between two points across the
Internet
•  Tunneling: process by which VPNs transfer
informa0on by encapsula0ng traffic in IP
256
Net Issues
•  Management issues
–  No centralized governing body controls the
Internet
•  Service and speed issues
–  Web server computers can be overwhelmed
by the amount of hits (requests for pages)
•  Privacy, fraud, security, and unauthorized
Internet sites

257
Summary
•  Telecommunica0ons: electronic transmission
of signals for communica0ons
•  Computer network: communica0ons media,
devices, and so_ware needed to connect two
or more computer systems or devices
•  Network types: personal area network (PAN),
local area network (LAN), metropolitan area
network (MAN), wide area network (WAN),
and interna0onal networks
258
Summary (con0nued)
•  Internet: collec0on of interconnected
networks, all freely exchanging informa0on
•  Internet Protocol (IP): communica0on
standard that enables traffic to be routed
from one network to another as needed
•  Uniform Resource Locator (URL): an assigned
address on the Internet for each computer

259
Summary (con0nued)
•  Intranet: internal corporate network built
using Internet and World Wide Web standards
and protocols
•  Extranet: network based on Web technologies
that links selected resources of a company s
intranet with its customers, suppliers, or other
business partners

260
Systems
Fourth Edi0on
Chapter 5
Electronic and Mobile Commerce and
Enterprise Systems
•  Electronic commerce and mobile commerce are
evolving, providing new ways of conduc0ng
business that present both opportuni0es for
improvement and poten0al problems
–  Describe the current status of various forms of e-‐
commerce, including B2B, B2C, C2C, and m-‐commerce
–  Iden0fy several e-‐commerce and m-‐commerce
applica0ons
–  Iden0fy several advantages associated with the use of
e-‐commerce and m-‐commerce

262
(con0nued)
•  E-‐commerce and m-‐commerce require the
careful planning and integra0on of a number
of technology infrastructure components
–  Iden0fy the key components of technology
infrastructure that must be in place for e-‐
commerce and m-‐commerce to work
–  Discuss the key features of the electronic payment
systems needed to support e-‐commerce

263
(con0nued)
•  An organiza0on must have informa0on
systems that support the rou0ne, day-‐to-‐day
ac0vi0es that occur in the normal course of
business and help a company add value to its
products and services
–  Iden0fy the basic ac0vi0es and business
objec0ves common to all transac0on processing
systems
–  Iden0fy key control and management issues
associated with transac0on processing systems
264
(con0nued)
•  A company that implements an enterprise
resource planning system is crea0ng a highly
integrated set of systems, which can lead to
many business benefits
–  Discuss the advantages and disadvantages
associated with the implementa0on of an
enterprise resource planning system
–  Iden0fy the challenges mul0na0onal corpora0ons
must face in planning, building, and opera0ng
their TPSs
265
Why Learn About Electronic and
Mobile Commerce and Enterprise
Systems?
•  Most organiza0ons have an Internet presence
–  Sales/marke0ng manager involved with e-‐
commerce
–  Customer service employees help develop Web
site
–  Human resource or public rela0ons manger may
provide Web content for employees and investors
•  Must learn about e-‐commerce and m-‐
commerce
•  Many organiza0ons use enterprise systems to
266
An Introduc0on to Electronic
Commerce
•  Electronic commerce: conduc0ng business
ac0vi0es (e.g., distribu0on, buying, selling,
marke0ng, and servicing of products or
services) electronically over computer
networks such as the Internet, extranets, and
corporate networks
•  Business ac0vi0es that are strong candidates
for conversion to e-‐commerce
–  Paper-‐based
–  Time-‐consuming
Systems, –  Inconvenient
Fourth Edi0on for customers
267
Business-‐to-‐Business (B2B) E-‐
Commerce
•  Business-‐to-‐business (B2B) e-‐commerce:
subset of e-‐commerce where all the
par0cipants are organiza0ons
–  Considerably larger and growing more rapidly
than the business-‐to-‐consumer market

268
Business-‐to-‐Consumer (B2C)
E-‐Commerce
•  Business-‐to-‐consumer (B2C) e-‐commerce:
customers deal directly with the
organiza0on, avoiding any intermediaries
•  Elimina0on of intermediaries:
–  Squeezes costs and inefficiencies out of supply
chain
–  Can lead to higher profits for companies and
lower prices for consumers

269
Consumer-‐to-‐Consumer (C2C)
E-‐Commerce
•  Consumer-‐to-‐consumer (C2C) e-‐commerce:
par0cipants are individuals, with one serving
as the buyer and the other as the seller
–  eBay: example of a C2C e-‐commerce site

270
eGovernment
•  eGovernment: use of informa0on and
communica0ons technology to simplify the
sharing of informa0on, speed formerly paper-‐
based processes, and improve the rela0onship
between ci0zen and government
•  Forms of eGovernment
–  Government-‐to-‐consumer (G2C)
–  Government-‐to-‐business (G2B)
–  Government-‐to-‐government (G2G)

271
Mobile Commerce
•  Mobile commerce (m-‐commerce) relies on the
use of wireless devices, such as personal
digital assistants, cell phones, and smart
phones, to place orders and conduct business

272
Mobile Commerce in Perspec0ve
•  Market for m-‐commerce in North America is
maturing much later than in Western Europe
and Japan
–  Western European and Japanese consumers are
much more willing to use m-‐commerce
•  Mobile phone gaming in the United States is
expected to increase from about $380 million
in 2006 to more than $1 billion by 2009

273
Technology Needed for Mobile
Commerce
•  Handheld devices used for m-‐commerce have
limita0ons that complicate their use
•  Wireless applica(on protocol (WAP): a
standard set of specifica0ons for Internet
applica0ons that run on handheld, wireless
devices

274
Applica0ons: Retail and Wholesale
•  Electronic retailing (e-‐tailing): the direct sale
from business to consumer through electronic
storefronts, typically designed around an
electronic catalog and shopping cart model
•  Cybermall: a single Web site that offers many
products and services at one Internet loca0on
•  Manufacturing, repair, and opera0ons (MRO)
goods and services

275
Manufacturing
•  To raise profitability and improve customer
service, many manufacturers move their
supply chain opera0ons onto the Internet
•  Electronic exchange: an electronic forum
where manufacturers, suppliers, and
compe0tors buy and sell goods, trade market
informa0on, and run back-‐office opera0ons

276
Manufacturing (con0nued)
Figure 5.2: Model of an Electronic Exchange

Marke0ng
•  Market segmenta(on: the iden0fica0on of
specific markets to target them with
adver0sing messages
•  Technology-‐enabled rela(onship
management: use of detailed informa0on
about a customer s behavior, preferences,
needs, and buying paêrns to set prices,
nego0ate terms, tailor promo0ons, add
product features, and otherwise customize
the en0re rela0onship with that customer
278
Investment and Finance
•  Online stock trading has brought many
investors to the Web
•  Online banking
–  Online bill payment facility
•  Electronic bill presentment: a method of
billing whereby a vendor posts an image of
your statement on the Internet and alerts you
by e-‐mail that your bill has arrived

279
Auc0ons
•  eBay: synonymous with online auc0ons for
both private sellers and small companies
•  Hundreds of other online auc0on sites cater
to newcomers to online auc0ons and to
unhappy eBay customers
•  Most frequent complaints
–  Increases in fees
–  Unscrupulous buyers

280
Anywhere, Any0me Applica0ons of
Mobile Commerce
•  M-‐commerce devices are ideal for accessing
personal informa0on and receiving targeted
messages because of having a single user
•  Companies can reach individual consumers to
establish one-‐to-‐one marke0ng rela0onships
and communicate whenever it is convenient—
in short, any0me and anywhere

281
Advantages of Electronic and
Mobile Commerce
Table 5.1: Advantages of Electronic and Mobile Commerce

282
Technology Infrastructure
Required to Support E-‐commerce
and M-‐commerce
•  Successful implementa0on of e-‐business
requires:
–  Significant changes to exis0ng business processes
–  Substan0al investment in IS technology
•  Poor Web site performance drives consumers
to abandon some e-‐commerce sites

283
Technology Infrastructure Required
to Support E-‐commerce and M-‐
commerce (con0nued)
Figure 5.3: Key Technology Infrastructure Components

Hardware
•  Storage capacity and compu0ng power
required of the Web server depends on:
–  So_ware that will run on the server
–  Volume of e-‐commerce transac0ons
•  Web site hos0ng

285
Web Server So_ware
•  Web server so_ware is used to perform
fundamental services, including:
–  Security and iden0fica0on
–  Retrieving and sending Web pages
–  Web site tracking
–  Web site development
–  Web page construc0on

286
Web Server So_ware (con0nued)
•  E-‐commerce so_ware must support:

–  Catalog management
–  Product configura0on
–  Shopping cart facili0es
–  E-‐commerce transac0on processing
–  Web traffic data analysis


287
Web Server So_ware (con0nued)
Figure 5.4: Electronic Shopping Cart

Electronic Payment Systems
•  Digital cer(ficate: an aâchment to an e-‐mail
message or data embedded in a Web page
that verifies the iden0ty of a sender or a Web
site
•  Secure Sockets Layer (SSL): a communica0ons
protocol used to secure sensi0ve data during
e-‐commerce
•  Electronic cash: an amount of money that is
computerized, stored, and used as cash for e-‐
commerce transac0ons
289
Electronic Payment Systems
(con0nued)
•  Credit card
•  Charge card
•  Debit card
•  Smart card

290
Systems:
Transac0on Processing Systems
and
Enterprise
•  Enterprise Resource
system: Planning
a system central to the
organiza0on that ensures informa0on can be

shared across all business func0ons and all
levels of management to support the running
and managing of a business
•  Eliminates the problems of lack of
informa0on and inconsistent informa0on
caused by mul0ple transac0on processing
systems
291
Transac0on Processing Systems and
(con0nued)
•  Enterprise resource planning systems
support supply-‐chain processes
•  Transac0on processing systems capture and
process detailed data necessary to update
records about the fundamental business
opera0ons of the organiza0on
–  Include order entry, inventory control, payroll,
accounts payable, accounts receivable, and the
general ledger
292
Transac0on Processing Systems and
(con0nued)
Figure 5.5: TPS, MIS/DSS, and Special Information Systems in

Perspective

Tradi0onal Transac0on Processing
Methods and Objec0ves
•  Batch processing system: method of
computerized processing in which business
transac0ons are accumulated over a period of
0me and prepared for processing as a single
unit or batch
•  Online transac(on processing (OLTP):
computerized processing in which each
transac0on is processed immediately, without
the delay of accumula0ng transac0ons into a
batch
294
Methods and Objec0ves
(con0nued)
Figure 5.6: Batch Versus Online Transaction Processing

Transac0on Processing Ac0vi0es
•  TPSs
–  Capture and process data that describes
fundamental business transac0ons
–  Update databases
–  Produce a variety of reports
•  Transac(on processing cycle: the process of
data collec0on, data edi0ng, data correc0on,
data manipula0on, data storage, and
document produc0on
296
Transac0on Processing Ac0vi0es
(con0nued)
Figure 5.8: Data-Processing Activities Common to Transaction

Processing Systems
Data Collec0on
•  Data collec(on: capturing and gathering all
data necessary to complete the processing of
transac0ons
•  Data should be:
–  Collected at source
–  Recorded accurately and in a 0mely fashion

298
Data Edi0ng
•  Data edi(ng: the process of checking data for
validity and completeness
–  Example: quan0ty and cost data must be numeric
and names must be alphabe0c; otherwise, the
data is not valid

299
Data Correc0on
•  Data correc(on: the process of reentering
data that was not typed or scanned properly
–  Example: a scanned UPC code must match a code
in a master table of valid UPCs

300
Data Manipula0on
•  Data manipula(on: the process of performing
calcula0ons and other data transforma0ons
related to business transac0ons
–  Includes classifying data, sor0ng data into
categories, performing calcula0ons, summarizing
results, and storing data in the organiza0on s
database for further processing

301
Data Storage
•  Data storage: the process of upda0ng one or
more databases with new transac0ons
•  A_er being updated, this data can be further
processed and manipulated by other systems
and made available for management repor0ng
and decision making

302
Document Produc0on and Reports
•  Document produc(on: the process of
genera0ng output records and reports
–  Hard-‐copy paper reports
–  Displays on computer screens (so_ copy)

303
Control and Management Issues:
Disaster Recovery Plan
•  Disaster recovery plan (DRP): formal plan
describing the ac0ons that must be taken to
restore computer opera0ons and services in
the event of a disaster
•  Necessary for preven0ng a lengthy disrup0on
in the opera0on of any of a company s cri0cal
business informa0on systems that directly
affect its cash flow

304
Transac0on Processing System
Audit
•  Transac(on processing system audit: a check
of a firm s TPS systems to prevent
accoun0ng irregulari0es and/or loss of data
privacy
•  Aêmpts to answer four basic ques0ons
–  Does the system meet the business need for
which it was implemented?
–  What procedures and controls have been
established?
–  Are these procedures and controls being used
properly?
Systems, –  Are the informa0on systems
Fourth Edi0on
305 and procedures
Applica0ons
Table 5.2: Systems That Support Order Processing, Purchasing, and

Accounting Functions
Order Processing Systems
•  Tradi0onal order processing transac0on
processing systems include:
–  Order entry
–  Sales configura0on
–  Shipment planning
–  Shipment execu0on
–  Inventory control
–  Accounts receivable

307
Order Processing Systems
(con0nued)
Figure 5.10: Traditional TPS Systems That Support the Order Processing
Business Function
Purchasing Systems
•  Purchasing transac0on processing systems
include:
–  Inventory control
–  Purchase order processing
–  Receiving
–  Accounts payable

309
Accoun0ng Systems
•  Accoun0ng transac0on processing systems
include:
–  Budget
–  Accounts receivable
–  Payroll
–  Asset management
–  General ledger

310
Enterprise Resource Planning,
Supply
Chain Management, and Customer
Rela0onship Management
•  Enterprise resource planning (ERP): a set of
integrated programs that manage a
company s vital business opera0ons for an
en0re mul0site, global organiza0on
Figure 5.11: Enterprise Resource Planning System

311
An Overview of Enterprise
Resource Planning
•  ERP systems evolved from materials
requirement planning systems (MRP)
developed in the 1970s
•  1980s -‐ early 1990s: organiza0ons recognized
that their legacy transac0on processing
systems lacked integra0on
–  Result: higher costs and poorer customer service
•  Realiza0on of a need for a system to
coordinate ac0vi0es and share valuable
informa0on across all the business func0ons
312
Advantages of ERP
•  Improved access to data for opera0onal
decision making
•  Elimina0on of costly, inflexible legacy systems
•  Improvement of work processes
•  Upgrade of technology infrastructure

313
Disadvantages of ERP Systems
•  Expense and 0me in implementa0on
•  Difficulty implemen0ng change
•  Difficulty integra0ng with other systems
•  Risks in using one vendor
•  Risk of implementa0on failure

314
Produc0on and Supply Chain
Management
•  ERP systems follow a systema0c process for
developing a produc0on plan
–  Sales forecas0ng
–  Sales and opera0ons plan
–  Demand management
–  Detailed scheduling
–  Materials requirement planning
–  Purchasing
–  Produc0on
315
Customer Rela0onship
Management and Sales Ordering
•  Customer rela(onship management (CRM)
system: a system that helps a company
manage all aspects of customer encounters,
including marke0ng and adver0sing, sales,
customer service a_er the sale, and
programs to retain loyal customers
•  Goals of CRM
–  Understand and an0cipate the needs of current
and poten0al customers to increase customer
reten0on and loyalty
316
Customer Rela0onship
Management and Sales Ordering
(con0nued)
•  Sales ordering: set of ac0vi0es that must be
performed to capture a customer sales order
•  Essen0al steps include:
–  Recording the items to be purchased
–  Segng the sales price
–  Recording the order quan0ty
–  Determining the total cost of the order including
delivery costs
–  Confirming the customer s available credit
317
Financial and Managerial
Accoun0ng
•  General ledger: main accoun0ng record of a
business
–  Assets
–  Liabili0es
–  Revenue
–  Expenses
–  Equity

318
Accoun0ng (con0nued)
•  In an ERP system, input to the general ledger
occurs simultaneously with the input of a
business transac0on
•  Financial accoun(ng: capturing and recording
all transac0ons that affect a company s
financial state and using these documented
transac0ons to prepare financial statements
to external decision makers, such as
stockholders, suppliers, banks, and
government agencies
319
Accoun0ng (con0nued)
•  Managerial accoun(ng: use of historical and
es0mated data to provide informa0on that
management uses in conduc0ng daily
opera0ons, in planning future opera0ons, and
in developing overall business strategies

320
Hosted So_ware Model for
Enterprise So_ware
•  Target market: small-‐to-‐medium businesses
•  Offered by vendors such as NetSuite,
Salesforce.Com Inc., Everest So_ware, and
SAP
•  Appealing to small businesses because they:
–  Can experiment with powerful so_ware
capabili0es without major financial investment
–  Do not need to employ a full-‐0me IT person to
maintain key business applica0ons
–  Can expect addi0onal 321
savings from reduced
Interna0onal Issues Associated
with
Enterprise Systems
•  Challenges that must be met by an enterprise
system of a mul0na0onal company include:
–  Different languages and cultures
–  Dispari0es in informa0on system infrastructure
–  Varying laws and customs rules
–  Mul0ple currencies

322
Summary
•  In business-‐to-‐business (B2B) e-‐commerce, the
par0cipants are organiza0ons
•  In business-‐to-‐consumer (B2C) e-‐commerce,
customers deal directly with the organiza0on
•  In consumer-‐to-‐consumer (C2C) e-‐commerce,
par0cipants are individuals, with one serving as
the buyer and the other as the seller
•  Mobile commerce (m-‐commerce) uses wireless
devices to place orders and conduct business
323
Summary (con0nued)
•  Transac0on processing systems (TPSs): process
the detailed data necessary to update records
about the fundamental business opera0ons
•  Transac0on processing cycle: data collec0on,
data edi0ng, data correc0on, data manipula0on,
data storage, and document produc0on
•  Order processing TPSs: order entry, sales
configura0on, shipment planning, shipment
execu0on, inventory control, and accounts
receivable

324
Summary (con0nued)
•  Purchasing TPSs: inventory control, purchase
order processing, receiving, and accounts payable
•  Accoun0ng TPSs: budget, accounts receivable,
payroll, asset management, and general ledger
•  Primary benefits of implemen0ng ERP: improved
access to data for opera0onal decision making,
elimina0on of inefficient or outdated systems,
improvement of work processes, and technology
standardiza0on
325
Systems
Fourth Edi0on
Chapter 6
Informa0on and Decision Support
Systems
•  Good decision-‐making and problem-‐solving
skills are the key to developing effec0ve
informa0on and decision support systems
–  Define the stages of decision making
–  Discuss the importance of implementa0on and
monitoring in problem solving

327
(con0nued)
•  The management informa0on system (MIS)
must provide the right informa0on to the right
person in the right format at the right 0me
–  Explain the uses of MISs and describe their inputs
and outputs
–  Discuss informa0on systems in the func0onal
areas of business organiza0ons

328
(con0nued)
•  Decision support systems (DSSs) are used
when the problems are unstructured
–  List and discuss important characteris0cs of DSSs
that give them the poten0al to be effec0ve
management support tools
–  Iden0fy and describe the basic components of a
DSS

329
(con0nued)
•  Specialized support systems, such as group
support systems (GSSs) and execu0ve support
systems (ESSs), use the overall approach of a
DSS in situa0ons such as group and execu0ve
decision making
–  State the goals of a GSS and iden0fy the
characteris0cs that dis0nguish it from a DSS
–  Iden0fy the fundamental uses of an ESS and list
the characteris0cs of such a system
330
Why Learn About Informa0on and
Decision Support Systems?
•  True poten0al of ISs is to help employees
make more informed business decisions
•  These systems can cut costs, increase profits,
uncover new opportuni0es
•  Examples
–  Transporta0on coordinator can find least
expensive way to ship products
–  Loan manager can determine creditworthiness
–  Store managers can beêr maintain inventory

331
Decision Making and Problem Solving:
Decision Making as a Component of
Problem Solving
•  Decision-‐making phase: first part of problem-‐
solving process
–  Intelligence stage: iden0fy and define poten0al
problems or opportuni0es
–  Design stage: develop alterna0ve solu0ons to the
problem
–  Choice stage: select a course of ac0on

332
Decision Making as a Component
of Problem Solving (con0nued)
Figure 6.1: How Decision Making Relates to Problem Solving

Decision Making as a Component
of Problem Solving (con0nued)
•  Problem solving: includes decision making
and the implementa0on and monitoring
stages
•  Implementa(on stage: solu0on is put into
effect
•  Monitoring stage: decision makers evaluate
the implementa0on

334
Programmed Versus
Nonprogrammed Decisions
•  Programmed decision
–  Decision made using a rule, procedure, or
quan0ta0ve method
–  Easy to computerize using tradi0onal informa0on
systems

335
Programmed Versus
Nonprogrammed Decisions
(con0nued)
•  Nonprogrammed decisions
–  Decision that deals with unusual or excep0onal
situa0ons
–  Not easily quan0fiable

336
Op0miza0on, Sa0sficing, and
Heuris0c Approaches
•  Op(miza(on model: process to find the best
solu0on, usually the one that will best help
the organiza0on meet its goals
•  Sa(sficing model: find a good—but not
necessarily the best—problem solu0on
•  Heuris(cs: commonly accepted guidelines or
procedures that usually find a good solu0on

337
Op0miza0on, Sa0sficing, and
Heuris0c Approaches (con0nued)
Figure 6.2: Optimization Software

338
Sense and Respond

•  Sense and Respond (SaR): determining
problems or opportuni0es (sense) and
developing systems to solve the problems or
take advantage of the opportuni0es (respond)
–  Requires nimble organiza0ons with lines of
authority that are flexible and dynamic

339
An Overview of Management
Informa0on Systems
•  Management informa(on system (MIS):
integrated collec0on of people, procedures,
databases, and devices
–  Provides managers and decision makers with
informa0on to help achieve organiza0onal goals
–  Can give companies a compe00ve advantage by
providing the right informa0on to the right people
in the right format and at the right 0me

340
in Perspec0ve
•  MIS provides managers with informa0on that

supports effec0ve decision making and
provides feedback on daily opera0ons
•  Use of MISs spans all levels of management

341
in Perspec0ve (con0nued)
Figure 6.3: Sources of Managerial Information

Inputs to a Management
Informa0on System
•  Internal data sources
–  TPSs and ERP systems and related databases
–  Data warehouses and data marts
–  Specific func0onal areas throughout the firm
•  External data sources
–  Customers, suppliers, compe0tors, and
stockholders whose data is not already captured
by the TPS
–  The Internet
–  Extranets
343
Outputs of a Management
Informa0on System
Figure 6.4: An Executive Dashboard

344
Informa0on System (con0nued)
•  Scheduled report: produced periodically, or
on a schedule
•  Key-‐indicator report: summary of the
previous day s cri0cal ac0vi0es
•  Demand report: developed to give certain
informa0on at someone s request
•  Excep(on report: automa0cally produced
when a situa0on is unusual or requires
management ac0on
•  Drill-‐down report: provides increasingly

345
Figure 6.5: Reports Generated by an MIS

346
Table 6.1: Guidelines for Developing MIS Reports

347
Func0onal Aspects of the MIS
•  Most organiza0ons are structured along
func0onal lines or areas
•  MIS can be divided along func0onal lines to
produce reports tailored to individual
func0ons

348
Func0onal Aspects of the MIS
(con0nued)
Figure 6.6: An Organization s MIS

Financial Management Informa0on
Systems
•  Financial MIS: provides financial informa0on
not only for execu0ves but also for a broader
set of people who need to make beêr
decisions on a daily basis
–  Profit/loss and cost systems
–  Internal and external audi0ng
–  Uses and management of funds

350
Financial Management Informa0on
Systems (con0nued)
Figure 6.7: Overview of a Financial MIS

Manufacturing Management
Informa0on Systems
•  Manufacturing MIS subsystems and outputs
monitor and control the flow of materials,
products, and services through the
organiza0on
•  Some common informa0on subsystems and
outputs used in manufacturing
–  Design and engineering
–  Master produc0on scheduling and inventory
control
–  Process
Fundamentals of Informa0on control
352
Manufacturing Management
Informa0on Systems (con0nued)
Figure 6.8: Overview of a Manufacturing MIS

Marke0ng Management
Informa0on Systems
•  Marke(ng MIS: supports managerial ac0vi0es
in product development, distribu0on, pricing
decisions, promo0onal effec0veness, and
sales forecas0ng
•  Subsystems for marke0ng MIS include:
–  Marke0ng research
–  Product development
–  Promo0on and adver0sing
–  Product pricing
Sales
– Fourth Edi0on analysis
Systems,
354
Marke0ng Management
Figure 6.9: Overview of a Marketing MIS

Marke0ng Management
Figure 6.10: Reports Generated to Help Marketing Managers Make Good

Decisions
Human Resource Management
Informa0on Systems
•  Human resource MIS: concerned with
ac0vi0es related to employees and poten0al
employees of an organiza0on
•  Outputs of the human resource MIS include:
–  Human resource planning
–  Personnel selec0on and recrui0ng
–  Training and skills inventory
–  Scheduling and job placement
–  Wage and salary administra0on
Systems, Outplacement
– Fourth
Edi0on
357
Human Resource Management
Figure 6.11: Overview of a Human Resource MIS

Other Management Informa0on
Systems
•  Accoun(ng MIS: provides aggregate
informa0on on accounts payable, accounts
receivable, payroll, and many other
applica0ons
•  Geographic informa(on system (GIS):
capable of assembling, storing, manipula0ng,
and displaying geographic informa0on, i.e.,
data iden0fied according to its loca0on

359
An Overview of Decision Support
Systems
•  DSS is an organized collec0on of people,
procedures, so_ware, databases, and devices
used to help make decisions that solve
problems
•  Focus of a DSS is on decision-‐making
effec0veness when faced with unstructured or
semistructured business problems

360
Capabili0es of a Decision Support
System
•  Support for problem-‐solving phases
•  Support for different decision frequencies
–  Ad-‐hoc, ins0tu0onal
•  Support for different problem structures
–  Highly structured, semistructured, or unstructured
•  Support for various decision-‐making levels
–  Opera0onal, tac0cal, strategic

361
Capabili0es of a Decision Support
System (con0nued)
Figure 6.13: Decision-Making Level

A Comparison of DSS and MIS
Table 6.3: Comparison of DSSs and MISs

Components of a Decision Support
System
•  Components of a decision support system are:
–  Database
–  Model base
–  Dialogue manager
–  Access to the Internet, networks, and other
computer-‐based systems

364
Components of a Decision Support
System (con0nued)
Figure 6.14: Conceptual Model of a DSS

The Database
•  Data-‐driven DSS
–  Primarily performs qualita0ve analysis based on
the company s databases
–  Taps into vast stores of informa0on contained in
the corporate database, retrieving informa0on on
inventory, sales, personnel, produc0on, finance,
accoun0ng, and other areas
–  O_en uses data mining and business intelligence

366
The Model Base
•  Model base: part of DSS that provides
decision makers access to a variety of models
and assists them in decision making
–  Allows managers and decision makers to perform
quan0ta0ve analysis on both internal and external
data
•  Model management soTware: so_ware that
coordinates the use of models in a DSS

367
The User Interface or Dialogue
Manager
•  User interface or dialogue manager allows
users to interact with the DSS to obtain
informa0on
•  Assists with all aspects of communica0ons
between the user and the hardware and
so_ware that cons0tute the DSS

368
Group Support Systems
•  Group support system (GSS)
–  Consists of most elements in a DSS, plus so_ware
to provide effec0ve support in group decision
making
–  Also called group decision support system or
computerized collabora0ve work system

369
Group Support Systems
(con0nued)
Figure 6.15: Configuration of a GSS

Characteris0cs of a GSS That
Enhance Decision Making
•  Special design
–  Procedures, devices, and approaches for crea0ve
thinking and effec0ve communica0on
•  Ease of use
–  Complex systems will seldom be used by groups
•  Flexibility
–  Takes different decision-‐making styles and
preferences into account
•  Decision-‐making support for different
approaches
–  Delphi, brainstorming, 371 group consensus, nominal
Characteris0cs of a GSS That
Enhance Decision Making
(con0nued)
•  Anonymous input
–  Helpful in ranking performance of managers
•  Reduc0on of nega0ve group behavior
–  Avoids dominance of one member, sidetracking,
and groupthink
•  Parallel communica0on
–  Speeds mee0ng 0mes and results in beêr
decisions
•  Automated record keeping
–  Provides efficient vo0ng,
372
ranking, future review,
GSS So_ware
•  O_en called groupware or workgroup
so_ware
•  Helps with joint work group scheduling,
communica0on, and management
•  Examples: Lotus Notes, Microso_ s
NetMee0ng, Microso_ Exchange, IBM s
Workplace, NetDocuments Enterprise,
Collabra Share, OpenMind, TeamWare
•  Some transac0on processing and enterprise
resource planning packages include
373
GSS Alterna0ves
•  GSS alterna0ves include:
–  Decision room: decision makers in same
geographic area; GSS is used occasionally
–  Local area decision network: decision makers in
same geographic area; GSS is used frequently
–  Teleconferencing: decision frequency is low;
loca0on of group members is distant
–  Wide area decision network: decision frequency is
high; loca0on of group members is distant
•  Use virtual workgroups
374
GSS Alterna0ves (con0nued)
Figure 6.17: The GSS Decision Room

Execu0ve Support Systems
•  Execu(ve support system (ESS): specialized
DSS that includes all hardware, so_ware, data,
procedures, and people used to assist senior-‐
level execu0ves within the organiza0on

376
Execu0ve Support Systems
(con0nued)
Figure 6.18: The Layers of Executive Decision Making

377
Execu0ve Support Systems in
Perspec0ve
•  General characteris0cs of ESSs
–  Tailored to individual execu0ves
–  Easy to use
–  Drill-‐down abili0es
–  Support need for external data
–  Can help when uncertainty is high
–  Future-‐oriented
–  Linked with value-‐added business processes
378
Capabili0es of Execu0ve Support
Systems
•  Support for defining an overall vision
•  Support for strategic planning
–  Determine long-‐term objec0ves based on analyzing
current strengths and weaknesses, predic0ng future
trends, and projec0ng development
•  Support for strategic organizing and staffing
•  Support for strategic control
–  Monitoring, managing, goal seeking
•  Support for crisis management
–  Strategic emergency plans
379
Summary
•  Decision-‐making phase of the problem-‐solving
process includes three stages: intelligence,
design, and choice
•  Management informa0on system (MIS): provides
managers with informa0on that supports
effec0ve decision making and provides feedback
on daily opera0ons
•  Financial MIS: provides financial informa0on not
only for execu0ves but also for a broader set of
people who need to make beêr decisions on a
daily basis
380
Summary (con0nued)
•  Manufacturing MIS subsystems and outputs:
monitor and control the flow of materials,
products, and services through the organiza0on
•  Marke0ng MIS: supports managerial ac0vi0es in
product development, distribu0on, pricing
decisions, promo0onal effec0veness, and sales
forecas0ng
•  Human resource MIS: ac0vi0es related to
employees and poten0al employees
•  Geographic informa0on system (GIS):
assembling, storing, manipula0ng, and
displaying geographic informa0on
381
Summary (con0nued)
•  Decision support system (DSS): organized
collec0on of people, procedures, so_ware,
databases, and devices used to help make
decisions that solve problems
•  Group support system (GSS): includes elements
in a DSS, plus so_ware to provide effec0ve
support in group decision making
•  Execu0ve support system (ESS): specialized DSS
that includes all hardware, so_ware, data,
procedures, and people used to assist senior-‐
level execu0ves within the organiza0on
382
Systems
Fourth Edi0on
Chapter 7
Knowledge Management and
Specialized Informa0on Systems
•  Knowledge management allows organiza0ons
to share knowledge and experience among
their managers and employees
–  Discuss the differences among data, informa0on,
and knowledge
–  Describe the role of the chief knowledge officer
(CKO)
–  List some of the tools and techniques used in
knowledge management

384
(con0nued)
•  Ar0ficial intelligence systems form a broad and
diverse set of systems that can replicate human
decision making for certain types of well-‐defined
problems
–  Define the term ar&ficial intelligence and state the
objec0ve of developing ar0ficial intelligence systems
–  List the characteris0cs of intelligent behavior and
compare the performance of natural and ar0ficial
intelligence systems for each characteris0c
–  Iden0fy the major components of the ar0ficial
intelligence field and provide one example of each
type of system

385
(con0nued)
•  Expert systems can enable a novice to perform at
the level of an expert but must be developed and
maintained very carefully
–  List the characteris0cs and basic components of
expert systems
–  Iden0fy at least three factors to consider in evalua0ng
the development of an expert system
–  Outline and briefly explain the steps for developing an
expert system
–  Iden0fy the benefits associated with the use of expert
systems
386
(con0nued)
•  Virtual reality systems can reshape the
interface between people and informa0on
technology by offering new ways to
communicate informa0on, visualize
processes, and express ideas crea0vely
–  Define the term virtual reality and provide three
examples of virtual reality applica0ons

387
(con0nued)
•  Specialized systems can help organiza0ons
and individuals achieve their goals
–  Discuss examples of specialized systems for
organiza0onal and individual use

388
Why Learn About Specialized
Informa0on Systems?
•  Knowledge management (KM) and specialized
informa0on systems are used in many
industries
•  Examples
–  Manager might use KM to correct a problem
–  Automo0ve manager might use KM to oversee
robots
–  Stock trader might use a neural network to
uncover paêrns in stock prices
389
Knowledge Management Systems
•  Knowledge: awareness and understanding of
a set of informa0on and the ways that
informa0on can be made useful to support a
specific task or reach a decision
•  Knowledge management system (KMS):
create, store, share, and use the
organiza0on s knowledge and experience
390
Overview of Knowledge
Management Systems
•  KMS can involve different types of knowledge
–  Explicit knowledge
•  Objec0ve
•  Can be measured and documented in reports, papers,
and rules
–  Tacit knowledge
•  Hard to measure and document
•  Typically not objec0ve or formalized

391
Data and Knowledge Management
Workers and Communi0es of
Prac0ce
•  Personnel involved in a KMS include:
–  Data workers: secretaries, administra0ve
assistants, bookkeepers, other data-‐entry
personnel
–  Knowledge workers: people who create, use, and
disseminate knowledge
•  Examples: professionals in science, engineering, and
business; writers; researchers; educators; corporate
designers

392
Data and Knowledge Management
Workers and Communi0es of
Prac0ce (con0nued)
•  Chief knowledge officer (CKO): top-‐level
execu0ve who helps the organiza0on use a
KMS to create, store, and use knowledge to
achieve organiza0onal goals
•  Communi(es of prac(ce (COP): group of
people dedicated to a common discipline or
prac0ce, such as open-‐source so_ware,
audi0ng, medicine, or engineering
–  Excel at obtaining, storing, sharing, and using
knowledge
393
Obtaining, Storing, Sharing, and
Using Knowledge
•  Obtaining, storing, sharing, and using
knowledge is the key to any KMS
•  Knowledge workers o_en work in teams to
create or obtain knowledge
•  Knowledge repository stores knowledge
including documents, reports, files, and
databases
•  Knowledge workers use collabora0ve work
so_ware and group support systems to share
knowledge
394
Using Knowledge (con0nued)
Figure 7.3: Knowledge Management System

395
Using Knowledge (con0nued)
•  Intranets and password-‐protected Internet
sites also provide ways to share knowledge
•  Knowledge map points knowledge workers to
needed knowledge
•  Organiza0ons need to protect knowledge
from compe0tors, hackers, and others who
shouldn t obtain the organiza0on s
knowledge
•  Patents, copyrights, trade secrets, Internet
firewalls, and other measures are used to
396
Technology to Support Knowledge
Management
•  Tools for capturing and using knowledge
include:
–  Data mining and business intelligence
–  Enterprise resource planning tools, such as SAP
–  Groupware
•  Examples of specific KM products
–  IBM s Lotus Notes, Domino
–  Microso_ s Digital Dashboard, Web Store
Technology, Access Workflow Designer
397
Technology to Support Knowledge
Management (con0nued)
Table 7.1: Additional Knowledge Management Organizations and

Resources
398
An Overview of Ar0ficial
Intelligence
•  Ar(ficial intelligence (AI): ability of computers
to mimic or duplicate the func0ons of the
human brain
•  AI-‐based computer systems have many
applica0ons in different fields, such as:
–  Medical diagnoses
–  Explora0on for natural resources
–  Determining what is wrong with mechanical
devices
–  Assis0ng
in designing a399 nd developing other
Ar0ficial Intelligence in Perspec0ve
•  Ar(ficial intelligence systems: people,
procedures, hardware, so_ware, data, and
knowledge needed to develop computer
systems and machines that demonstrate the
characteris0cs of intelligence

400
The Nature of Intelligence
•  Learn from experience and apply knowledge
acquired from experience
–  Example: computerized AI chess so_ware
•  Handle complex situa0ons
•  Solve problems when important informa0on is
missing
•  Determine what is important
•  React quickly and correctly to a new situa0on
401
The Nature of Intelligence
(con0nued)
•  Understand visual images
–  Percep0ve system: approximates the way humans
hear, see, or feel objects
•  Process and manipulate symbols
–  On a limited basis with machine-‐vision hardware
and so_ware
•  Be crea0ve and imagina0ve
–  Example: wri0ng short stories
•  Use heuris0cs
–  Obtaining good solu0ons (rather than the op0mal)
through
Systems, Fourth Edi0on approxima0on
402
The Difference Between Natural
and Ar0ficial Intelligence
Table 7.2: A Comparison of Natural and Artificial Intelligence

The Major Branches of Ar0ficial
Intelligence
Figure 7.5: A Conceptual Model of Artificial Intelligence

Expert Systems
•  Hardware and so_ware that stores knowledge
and makes inferences, similar to a human
expert
•  Used in many business applica0ons

405
Robo0cs
•  Mechanical or computer devices that perform
tasks requiring a high degree of precision or
that are tedious or hazardous for humans
•  Contemporary robo0cs combines high-‐
precision machine capabili0es with
sophis0cated controlling so_ware
•  Many applica0ons of robo0cs exist today
•  Research into robots is con0nuing
406
Robo0cs (con0nued)
Robots can be used in situations that are hazardous or inaccessible to

humans. The Rover was a remote-controlled robot used by NASA to
explore the surface of Mars.

Vision Systems
•  Hardware and so_ware that permit
computers to capture, store, and manipulate
visual images and pictures
•  Used by the U.S. Jus0ce Department to
perform fingerprint analysis
•  Can be used in iden0fying people based on
facial features
•  Can be used with robots to give these
machines sight
408
Natural Language Processing and
Voice Recogni0on
•  Natural language processing: allows the
computer to understand and react to
statements and commands made in a
natural language, such as English
•  Voice recogni0on involves conver0ng sound
waves into words

409
Natural Language Processing and
Voice Recogni0on (con0nued)
Dragon Systems Naturally Speaking 8 Essentials uses continuous voice

recognition, or natural speech, allowing the user to speak to the computer at a
normal pace without pausing between words. The spoken words are transcribed
immediately onto the computer screen. (Source: Courtesy of Nuance
Communications, Inc.)

Learning Systems
•  Combina0on of so_ware and hardware that
allows the computer to change how it
func0ons or reacts to situa0ons based on
feedback it receives
•  Learning systems so_ware requires feedback
on the results of ac0ons or decisions
•  Feedback is used to alter what the system will
do in the future

411
Neural Networks
•  Computer system that can simulate the
func0oning of a human brain
•  Ability to retrieve informa0on even if some of
the neural nodes fail
•  Fast modifica0on of stored data as a result of
new informa0on
•  Ability to discover rela0onships and trends in
large databases
•  Ability to solve complex problems for which all
the informa0on is not present

412
Other Ar0ficial Intelligence
Applica0ons
•  Gene(c algorithm: an approach to solving
large, complex problems in which a number of
related opera0ons or models change and
evolve un0l the best one emerges
•  Intelligent agent: programs and a knowledge
base used to perform a specific task for a
person, a process, or another program

413
An Overview of Expert Systems
•  Like human experts, computerized expert
systems use heuris0cs, or rules of thumb, to
arrive at conclusions or make sugges0ons
•  Used in many fields for a variety of tasks, such
as:
–  Designing new products and systems
–  Developing innova0ve insurance products
–  Increasing the quality of healthcare
–  Determining credit limits for credit cards
Determining
– Fourth
Systems, Edi0on the best f414 er0lizer mix to use on
An Overview of Expert Systems
(con0nued)
•  Research conducted in AI during the past two
decades is resul0ng in expert systems that:
–  Explore new business possibili0es
–  Increase overall profitability
–  Reduce costs
–  Provide superior service to customers and clients

415
When to Use Expert Systems
•  Develop an expert system if it can do any of
the following:
–  Provide a high poten0al payoff or significantly
reduce downside risk
–  Capture and preserve irreplaceable human
exper0se
–  Solve a problem that is not easily solved using
tradi0onal programming techniques
–  Develop a system more consistent than human
experts
416
When to Use Expert Systems
(con0nued)
•  Develop an expert system if it can do any of
the following (con0nued):
–  Provide exper0se needed at a number of loca0ons
at the same 0me or in a hos0le environment that
is dangerous to human health
–  Provide exper0se that is expensive or rare
–  Develop a solu0on faster than human experts can
–  Provide exper0se needed for training and
development to share the wisdom and experience
of human experts with a large number of people
417
Components of Expert Systems
Figure 7.8: Components of an Expert System

(con0nued)
•  Knowledge base: component of an expert
system that stores all relevant informa0on,
data, rules, cases, and rela0onships used by
the expert system
•  Some tools and techniques for crea0ng a
knowledge base are:
–  Assembling human experts
–  Using fuzzy logic: shades of gray; fuzzy sets
–  Using rules: IF-‐THEN statements
Using
– Fourth Edi0on cases: modifying solu0ons to cases in
Systems,
419
(con0nued)
Figure 7.10: Rules for a Credit Application

The Inference Engine
•  Seeks informa0on and rela0onships from the
knowledge base and provides answers,
predic0ons, and sugges0ons the way a human
expert would
•  Backward chaining
–  Star0ng with conclusions and working backward
to suppor0ng facts
•  Forward chaining
–  Star0ng with facts and working forward to
solu0ons
421
The Explana0on Facility
•  Allows a user or decision maker to understand
how the expert system arrived at certain
conclusions or results
•  Example: allow a doctor to determine the
logic or ra0onale of the diagnosis made by a
medical expert system

422
The Knowledge Acquisi0on Facility
•  Provides convenient and efficient means of
capturing and storing all the components of
the knowledge base
•  Acts as an interface between experts and the
knowledge base
•  Acquisi0on can be manual or a mixture of
manual and automated
•  Knowledge base must be validated and
updated frequently
423
The Knowledge Acquisi0on Facility
(con0nued)
Figure 7.11: Knowledge Acquisition Facility

424
The User Interface
•  Specialized user interface so_ware is
employed for designing, crea0ng, upda0ng,
and using expert systems
•  Main purpose of the user interface is to make
the development and use of an expert system
easier for users and decision makers

425
Expert Systems Development
Figure 7.12: Steps in the Expert System Development Process

Par0cipants in Developing and
Using Expert Systems
•  Domain expert: individual or group who has
the exper0se or knowledge one is trying to
capture in the expert system
•  Knowledge engineer: individual who has
training or experience in the design,
development, implementa0on, and
maintenance of an expert system
•  Knowledge user: individual or group who uses
and benefits from the expert system
427
Par0cipants in Developing and
Using Expert Systems (con0nued)
Figure 7.13: Participants in Expert Systems Development and Use

Expert Systems Development Tools
and Techniques
•  Tradi0onal programming languages
•  Special programming languages
–  LISP, PROLOG
•  Expert system shells
–  Expert system shell is a collec0on of so_ware
packages and tools used to design, develop,
implement, and maintain expert systems
•  Off-‐the-‐shelf expert system shells

429
Expert Systems Development Tools
and Techniques (con0nued)
Figure 7.14: Expert Systems Development

Applica0ons of Expert Systems and
Ar0ficial Intelligence
•  Credit gran0ng and loan analysis
•  Stock picking
•  Catching cheats and terrorists
–  Gambling casinos
•  Budge0ng
–  Prototype tes0ng programs
•  Games
–  Crossword puzzles
431
Applica0ons of Expert System and
Ar0ficial Intelligence (con0nued)
•  Informa0on management and retrieval
–  Uses bots
•  AI and expert systems embedded in products
–  An0lock braking system, television
•  Plant layout and manufacturing
•  Hospitals and medical facili0es
–  Probability of contrac0ng diseases, lab analysis,
home diagnosis, appointment scheduling
•  Help desks and assistance
432
Applica0ons of Expert System and
Ar0ficial Intelligence (con0nued)
•  Employee performance evalua0on
•  Virus detec0on
–  Uses neural network technology
•  Repair and maintenance
–  Telephone networks, aerospace equipment
•  Shipping and marke0ng
•  Warehouse op0miza0on
–  Restocking, loca0on
433
Virtual Reality
•  Virtual reality system: enables one or more
users to move and react in a computer-‐
simulated environment
•  Immersive virtual reality: user becomes fully
immersed in an ar0ficial, three-‐dimensional
world that is completely generated by a
computer

434
Interface Devices
•  Head-‐mounted display (HMD)

–  Screens directed at each eye; posi0on tracker
•  CAVE
–  Provides illusion of immersion through projec0on
of stereo images on floors and walls
•  Hap0c interface
–  Relays sense of touch and other physical
sensa0ons
435
Interface Devices (con0nued)
Military personnel train in an immersive CAVE system

Forms of Virtual Reality
•  Immersive virtual reality

•  Mouse-‐controlled naviga0on through a
three-‐dimensional environment on a graphics
monitor
•  Stereo viewing from the monitor via stereo
glasses
•  Stereo projec0on systems
•  Telepresence systems
437
Virtual Reality Applica0ons
•  Experimental gesture technology : may have
military applica0ons
•  Medicine: anxiety disorders, pain reduc0on
•  Educa0on and training: anatomy, history,
military training
•  Real estate marke0ng and tourism: virtual
walkthroughs
•  Entertainment: CGI movies and games
438
Other Specialized Systems
•  Segway: electric scooter
•  Computer pens
•  Special-‐purpose devices that help detect
crime
•  Radio-‐frequency iden0fica0on (RFID) tags
•  Systems used by the military: 3-‐D holograms

439
Other Specialized Systems
(con0nued)
•  Game theory: uses informa0on systems to
develop compe00ve strategies
•  Informa0cs: combines tradi0onal fields with
technology
•  Radio transceivers
•  Microso_ s Smart Personal Objects
Technology (SPOT): allows small devices to
transmit data over the air
•  Special-‐purpose bar codes
440
Summary
•  Knowledge management system (KMS):
so_ware, databases and devices used to
create, store, share, and use the
organiza0on s knowledge and experience
•  Communi0es of prac0ce (COP): group of
people dedicated to a common discipline or
prac0ce, such as open-‐source so_ware,
audi0ng, medicine, or engineering
441
Summary (con0nued)
•  Ar0ficial intelligence (AI): ability of computers
to mimic or duplicate the func0ons of the
human brain
•  Ar0ficial intelligence systems: people,
procedures, hardware, so_ware, data, and
knowledge needed to develop computer
systems and machines that demonstrate the
characteris0cs of intelligence
•  Expert system: hardware and so_ware that
stores knowledge and makes inferences,
442
Summary (con0nued)
•  Robo0cs: mechanical or computer devices
that perform tasks requiring a high degree of
precision or that are tedious or hazardous for
humans
•  Vision systems: hardware and so_ware that
permit computers to capture, store, and
manipulate visual images and pictures
•  Natural language processing: allows the
computer to understand and react to
statements and commands made in a
443
Summary (con0nued)
•  Learning systems: combina0on of so_ware
and hardware that allows the computer to
change how it func0ons or reacts to situa0ons
based on feedback it receives
•  Neural network: computer system that can
simulate the func0oning of a human brain
•  Virtual reality system: enables one or more
users to move and react in a computer-‐
simulated environment
444
Systems
Fourth Edi0on
Chapter 8
Systems Development
•  Effec0ve systems development requires a
team effort of stakeholders, users, managers,
systems development specialists, and various
support personnel, and it starts with careful
planning
–  Iden0fy the key par0cipants in the systems
development process and discuss their roles
–  Define the term informa&on systems planning and
discuss the importance of planning a project
446
(con0nued)
•  Systems development o_en uses different
approaches and tools such as tradi0onal
development, prototyping, rapid applica0on
development, end-‐user development, computer-‐
aided so_ware engineering, and object-‐oriented
development to select, implement, and monitor
projects
–  Discuss the key features, advantages, and
disadvantages of the tradi0onal, prototyping, rapid
applica0on development, and end-‐user systems
development life cycles
447
(con0nued)
•  Systems development o_en uses different
approaches and tools such as tradi0onal
development, prototyping, rapid applica0on
development, end-‐user development,
computer-‐aided so_ware engineering, and
object-‐oriented development to select,
implement, and monitor projects (con0nued)
–  Discuss the use of computer-‐aided so_ware
engineering (CASE) tools and the object-‐oriented
approach to systems development
448
(con0nued)
•  Systems development starts with inves0ga0on
and analysis of exis0ng systems
–  State the purpose of systems inves0ga0on
–  State the purpose of systems analysis and discuss
some of the tools and techniques used in this
phase of systems development

449
(con0nued)
•  Designing new systems or modifying exis0ng
ones should always be aimed at helping an
organiza0on achieve its goals
–  State the purpose of systems design and discuss
the differences between logical and physical
systems design
–  Define the term RFP and discuss how this
document is used to drive the acquisi0on of
hardware and so_ware

450
(con0nued)
•  The primary emphasis of systems
implementa0on is to make sure that the right
informa0on is delivered to the right person in
the right format at the right 0me
–  State the purpose of systems implementa0on and
discuss the various ac0vi0es associated with this
phase of systems development

451
(con0nued)
•  Maintenance and review add to the useful life
of a system but can consume large amounts of
resources, so they benefit from the same
rigorous methods and project management
techniques applied to systems development
–  State the importance of systems and so_ware
maintenance and discuss the ac0vi0es involved
–  Describe the systems review process

452
Why Learn About Systems
Development?
•  Important to learn how to:
–  Ini0ate systems development process
–  Analyze your needs with help of IS personnel
•  Learn how a project can be:
–  Planned
–  Aligned with corporate goals
–  Rapidly developed

453
An Overview of Systems
Development
•  Managers and employees in all func0onal
areas work together in a business informa0on
system
•  Users help and o_en lead the way with
development process
•  Par0cipants in systems development:
–  Determine when a project fails
–  Are cri0cal to systems development success

454
Par0cipants in Systems
Development
•  Development team consists of the following:
–  Project managers: coordinate system
development effort
–  Stakeholders: directly or indirectly benefit from
the project
–  Users: interact with the system regularly
–  Systems analysts: analyze and design business
systems
–  Programmers: modify or develop programs to
sa0sfy user requirements
–  Various
Fundamentals of Informa0on support personnel: specialists, vendors
455
Informa0on Systems Planning and
Aligning Corporate and IS Goals
•  Informa(on systems planning: transla0ng
strategic and organiza0onal goals into systems
development ini0a0ves
•  Aligning organiza0onal goals and IS goals is
cri0cal for any successful systems
development effort
•  Determining whether organiza0onal and IS
goals are aligned can be difficult

456
Informa0on Systems Planning and
Aligning Corporate and IS Goals
(con0nued)
Figure 8.2: Information Systems Planning

Systems Development Life Cycles
•  The systems development process is also
called a systems development life cycle (SDLC)
•  Common SDLCs
–  Tradi0onal systems development life cycle
–  Prototyping
–  Rapid applica0on development (RAD)
–  End-‐user development

458
The Tradi0onal Systems
Development Life Cycle
Figure 8.3: The Traditional Systems Development Life Cycle

(con0nued)
•  Systems inves(ga(on: problems and
opportuni0es are iden0fied and considered in
light of the goals of the business
•  Systems analysis: study of exis0ng systems
and work processes to iden0fy strengths,
weaknesses, and opportuni0es for
improvement
•  Systems design: answers the ques0on How
will the informa0on system do what it must
do to obtain the problem solu0on?
460
(con0nued)
•  Systems implementa(on: crea0on or
acquisi0on of various system components
detailed in the systems design, assembling
them, and placing the new or modified system
into opera0on
•  Systems maintenance and review: ensures
the system operates as intended and modifies
the system so that it con0nues to meet
changing business needs
461
Prototyping
•  An itera0ve
approach to systems
development
Figure 8.4: Prototyping

Agile Development, Joint
Applica0on Development, and
Other Systems Development
Approaches
•  Rapid applica(on development (RAD)
–  Systems development approach that employs
tools, techniques, and methodologies designed
to speed applica0on development
•  Some itera0ve development approaches
allow the system to change as it is being
developed
–  Agile development: frequent face-‐to-‐face
mee0ngs between systems developers and users
–  XP programming: pairs of programmers work
463
Agile Development, Joint
Applica0on Development, and
Other Systems Development
•  Joint Approaches (con0nued)
applica(on development (JAD)
–  Process for data collec0on and requirements
analysis in which users, stakeholders, and IS
professionals work together to analyze exis0ng
systems, propose possible solu0ons, and define
the requirements of a new or modified system
–  Used extensively by RAD
–  O_en u0lizes group support systems (GSS)
so_ware to foster posi0ve group interac0ons
464
The End-‐User Systems
•  End-‐user systems development: any systems
development project in which the primary
effort is undertaken by a combina0on of
business managers and users
•  End-‐user-‐developed systems can be
structured as complementary to, rather than
in conflict with, exis0ng and emerging
informa0on systems

465
Outsourcing and On Demand
Compu0ng
•  An outside consul0ng firm or computer
company that specializes in systems
development can take over some or all of the
development and opera0ons ac0vi0es
•  Reasons for using outsourcing and on demand
compu0ng
–  Reducing costs, obtaining state-‐of-‐the-‐art
technology, elimina0ng staffing and personnel
problems, and increasing technological flexibility
466
Use of Computer-‐Aided So_ware
Engineering (CASE) Tools
•  Computer-‐aided soTware engineering
(CASE): tools that automate many of the tasks
required in a systems development effort and
encourage adherence to the SDLC
–  Ins0ll a high degree of rigor and standardiza0on to
the en0re systems development process
–  Upper-‐CASE tools focus on inves0ga0on, analysis,
and design
–  Lower-‐CASE tools focus on implementa0on
467
Use of Computer-‐Aided So_ware
Engineering (CASE) Tools
(con0nued)
Table 8.2: Advantages and Disadvantages of CASE Tools

Object-‐Oriented Systems
Development
•  Object-‐oriented systems development
(OOSD): approach to systems development
that combines the logic of the systems
development life cycle with the power of
object-‐oriented modeling and programming

469
Development (con0nued)
•  Object-‐oriented systems development
typically involves:
–  Iden0fying poten0al problems and opportuni0es
within the organiza0on that would be appropriate
for the OO approach
–  Defining the kind of system users require
–  Designing the system
–  Programming or modifying modules
–  Evalua0on by users
–  Periodic
Fundamentals of Informa0on review and modifica0on
470
Systems Inves0ga0on
•  What primary problems might a new or
enhanced system solve?
•  What opportuni0es might a new or enhanced
system provide?
•  What new hardware, so_ware, databases,
telecommunica0ons, personnel, or
procedures will improve an exis0ng system or
are required in a new system?
•  What are the poten0al costs (variable and
fixed)?
471
Ini0a0ng Systems Inves0ga0on
•  Systems request form: document filled out by
someone who wants the IS department to
ini0ate systems inves0ga0on
–  Helps ra0onalize and priori0ze the ac0vi0es of the
IS department
–  Includes the following informa0on:
•  Problems in and opportuni0es for system
•  Objec0ves in inves0ga0on
•  Overview, costs, and benefits of proposed system

472
Feasibility Analysis
•  Technical feasibility: hardware, so_ware, and
other system components
•  Economic feasibility: predicted benefits vs.
cost and 0me
•  Legal feasibility: limita0ons of laws and
regula0ons on project
•  Opera0onal feasibility: logis0cal and
mo0va0onal considera0ons
•  Schedule feasibility: comple0on of project in
reasonable amount of 0me

473
Inves0ga0on
•  Key objects can be iden0fied during systems
inves0ga0on
•  Use case diagram
–  Part of the Unified Modeling Language (UML)
used in object-‐oriented systems development
–  Actors represent objects
–  Use cases represent events

474
Inves0ga0on (con0nued)
Figure 8.8: Use Case Diagram for a Kayak Rental Application

The Systems Inves0ga0on Report
•  Systems inves(ga(on report
–  Summary of the results of the systems
inves0ga0on and the process of feasibility analysis
–  Recommenda0on of a course of ac0on
•  Con0nue systems analysis
•  Modify the project
•  Abandon the project
–  Reviewed by steering commiêe of senior
management and users

476
The Systems Inves0ga0on Report
(con0nued)
Figure 8.9: A Typical Table of Contents for a Systems Investigation Report

Systems Analysis
•  Answers the ques0on What must the
informa0on system do to solve the problem?
•  Overall emphasis of systems analysis is:
–  Gathering data on the exis0ng system
–  Determining the requirements for the new system
–  Considering alterna0ves within these constraints
–  Inves0ga0ng the feasibility of the solu0ons
•  Primary outcome: priori0zed list of systems
requirements
478
Data Collec0on
•  Iden0fying sources of data
–  Internal sources
–  External sources
•  Collec0ng data
–  Interviews: structured and unstructured
–  Direct observa0on
–  Ques0onnaires: structured or unstructured
•  Used when data sources are spread over a wide
geographic area
479
Data Collec0on (con0nued)
Figure 8.10: Internal and External Sources of Data for Systems Analysis

Data Analysis
•  Data analysis
–  Manipula0on of collected data so that systems
development team can use the data
•  Data modeling
–  En0ty-‐rela0onship (ER) diagrams: objects,
a^ributes, and associa0ons
•  Ac0vity modeling
–  Data-‐flow diagrams (DFDs): objects, associa0ons,
and ac0vi0es

481
Data Analysis (con0nued)
Figure 8.12: Data and Activity Modeling (a) An entity-relationship diagram

Figure 8.12: Data and Activity Modeling (b) A data-flow diagram

Figure 8.12: Data and Activity Modeling (c) A semantic description of the
business process
Requirements Analysis
•  Determines user, stakeholder, and

organiza0onal needs through the following
techniques:
–  Asking directly: best for stable systems
–  Cri0cal success factors: asks for cri0cal factors in
interviewee s area
–  IS plan: translates strategic plan into ini0a0ves
–  Requirements analysis tools: CASE tools

485
Requirements Analysis (con0nued)
Figure 8.13: Converting Organizational Goals into Systems Requirements

486
Object-‐Oriented Systems Analysis
•  Iden0fying problems or poten0al
opportuni0es
•  Iden0fying key par0cipants and collec0ng data
•  Uses classes and generaliza0on/specializa0on
hierarchies instead of data-‐flow diagrams and
flowcharts

487
Object-‐Oriented Systems Analysis
(con0nued)
Figure 8.14: Generalization/Specialization Hierarchy Diagram for Single

and Tandem Kayak Classes
The Systems Analysis Report
•  Systems analysis report should cover:
–  Strengths and weaknesses of the exis0ng system
from a stakeholder s perspec0ve
–  User/stakeholder requirements for the new
system (also called the func&onal requirements)
–  Organiza0onal requirements for the new system
–  Descrip0on of what the new informa0on system
should do to solve the problem

489
Systems Design
•  Answers the ques0on How will the
informa0on system solve a problem?
•  Has two dimensions: logical and physical
•  Logical design: descrip0on of the func0onal
requirements of a system
•  Physical design: specifica0on of the
characteris0cs of the system components
necessary to put the logical design into ac0on
490
Object-‐Oriented Design
•  Design key objects and classes of objects in
the new or updated system
–  Considera0on of the problem domain, the
opera0ng environment, and the user interface
–  Considera0on of the sequence of events that
must happen for the system to func0on correctly
•  Scenario: sequence of events
–  Can be diagrammed in a sequence diagram

491
Object-‐Oriented Design
(con0nued)
Figure 8.16: A Sequence Diagram to Add a New KayakItem Scenario

Genera0ng Systems Design
Alterna0ves
•  Request for proposal (RFP): document that
specifies in detail required resources such as
hardware and so_ware
•  Financial op0ons
–  Purchasing
–  Leasing
–  Ren0ng

493
Genera0ng Systems Design
Alterna0ves (con0nued)
•  Evalua0ng and Selec0ng a Systems Design
–  Preliminary evalua0on
•  To dismiss unwanted proposals
•  Begins a_er all proposals have been submiêd
–  Final evalua0on
•  Detailed inves0ga0on of the proposals offered by the
vendors remaining a_er the preliminary evalua0on

494
The Design Report
•  Design report: primary result of systems
design, reflec0ng the decisions made and
preparing the way for systems
implementa0on
•  System specifica0ons include technical
descrip0on of the following:
–  System outputs, inputs, and user interfaces
–  Hardware, so_ware, databases,
telecommunica0ons, personnel, and procedure
components
Fundamentals of Informa0on and the w495 ay these components are
The Design Report (con0nued)
Figure 8.18: A Typical Table of Contents for a Systems Design Report

Systems Implementa0on
Figure 8.19: Typical Steps in Systems Implementation

Acquiring Hardware from an IS
Vendor
•  IS vendor: company that offers hardware,
so_ware, telecommunica0ons systems,
databases, IS personnel, and/or other
computer-‐related resources
•  Buying computer hardware
•  Leasing computer hardware
•  Ren0ng computer hardware
•  Pay-‐as-‐you-‐go, on-‐demand, or u0lity
compu0ng
498
Acquiring So_ware: Make or Buy?
•  Make-‐or-‐buy decision: decision regarding

whether to obtain so_ware from external or
internal sources
•  Choices include:
–  Purchase so_ware externally
–  Develop so_ware in-‐house
–  Used a blend of external and internal so_ware
development
–  Rent so_ware
499
Acquiring Database and
Telecommunica0ons Systems
•  Databases and telecommunica0ons systems
require a blend of hardware and so_ware
•  New hardware is acquired from an IS vendor
•  New or upgraded so_ware might be
purchased or developed in-‐house

500
User Prepara0on
•  Process of readying managers, decision
makers, employees, other users, and
stakeholders for new systems
•  Provide users with proper training

501
IS Personnel: Hiring and Training
•  Personnel that might be needed for the new
system
–  IS manager
–  Systems analysts
–  Computer programmers
–  Data-‐entry operators
•  Training programs should be conducted for
the IS personnel who will be using the
computer system
502
Site Prepara0on
•  Prepara0on of the loca0on of a new system
•  Making room for equipment
•  Special wiring and air condi0oning
•  Special floor
•  Security system
•  Addi0onal power circuits

503
Data Prepara0on
•  Also called data conversion
•  Ensures all files and databases are ready to be
used with new computer so_ware and
systems

504
Installa0on
•  Physically placing the computer equipment on
the site and making it opera0onal
•  Normally the manufacturer is responsible for
installing computer equipment
•  Someone from the organiza0on (usually the IS
manager) should oversee the process

505
Tes0ng
•  Unit tes0ng: tes0ng of individual programs
•  System tes0ng: tes0ng the en0re system of
programs
•  Volume tes0ng: tes0ng the applica0on with a
large amount of data
•  Integra0on tes0ng: tes0ng all related systems
together
•  Acceptance tes0ng: conduc0ng any tests
required by the user
506
Start-‐Up
•  Process of making the final tested informa0on
system fully opera0onal
•  Approaches
–  Direct conversion (plunge, direct cutover):
stopping the old system and star0ng the new one
on a given date
–  Phase-‐in approach (piecemeal): slowly replacing
old system components with new system
components
–  Pilot start-‐up: run new system with one group of
users
–  Parallel start-‐up: running old and new systems
507
User Acceptance
•  User acceptance document: formal
agreement signed by the user that states that
a phase of the installa0on or the complete
system is approved
–  Legal document that removes or reduces IS
vendor s liability

508
Systems Opera0on and
Maintenance
•  Systems opera(on: use of a new or modified
system
–  Help desk provides support
•  Systems maintenance: checking, changing,
and enhancing the system to make it more
useful in achieving user and organiza0onal
goals
–  Difficult and costly for legacy systems

509
Systems Review
•  Process of analyzing systems to make sure
that they are opera0ng as intended
–  O_en compares the performance and benefits of
the system as it was designed with the actual
performance and benefits of the system in
opera0on
•  Event-‐driven review: triggered by a problem
or opportunity such as an error, a corporate
merger, or a new market for products
•  Time-‐driven review: performed a_er a
510
Systems Review (con0nued)
Table 8.4: Examples of Review Types

511
Summary
•  Informa0on systems planning: transla0ng
strategic and organiza0onal goals into systems
development ini0a0ves
•  Common systems development life cycles:
tradi0onal, prototyping, rapid applica0on
development (RAD), and end-‐user
development
•  Phases of tradi0onal systems development life
cycle: systems inves0ga0on, systems analysis,
systems design, systems implementa0on, and
512
Summary (con0nued)
•  Systems inves0ga0on: problems and
opportuni0es are iden0fied and considered in
light of the goals of the business
•  Systems analysis: study of exis0ng systems
and work processes to iden0fy strengths,
weaknesses, and opportuni0es for
improvement
•  Systems design: defines how the informa0on
system will do what it must do to obtain the
problem solu0on
513
Summary (con0nued)
•  Systems implementa0on: crea0on or
acquisi0on of various system components
detailed in the systems design, assembling
them, and placing the new or modified system
into opera0on
•  Systems maintenance and review: ensures
that the system operates as intended and
modifies the system so that it con0nues to
meet changing business needs
514
Systems
Fourth Edi0on
Chapter 9
The Personal and Social Impact of
Computers
•  Policies and procedures must be established
to avoid computer waste and mistakes
–  Describe some examples of waste and mistakes in
an IS environment, their causes, and possible
solu0ons
–  Iden0fy policies and procedures useful in
elimina0ng waste and mistakes
–  Discuss the principles and limits of an individual s
right to privacy

516
(con0nued)
•  Computer crime is a serious and rapidly
growing area of concern requiring
management aên0on
–  Explain the types and effects of computer crime
–  Iden0fy specific measures to prevent computer
crime

517
(con0nued)
•  Jobs, equipment, and working condi0ons must
be designed to avoid nega0ve health effects
–  List the important effects of computers on the
work environment
–  Iden0fy specific ac0ons that must be taken to
ensure the health and safety of employees
–  Outline criteria for the ethical use of informa0on
systems

518
Why Learn About Security, Privacy,
and Ethical Issues in Informa0on
Systems and the Internet?
•  Many nontechnical issues associated with ISs
•  Human Resource employees need to:
–  Prevent computer waste and mistakes
–  Avoid privacy viola0ons
–  Comply with laws about:
•  Collec0ng customer data
•  Monitoring employees
•  Employees, IS users, and Internet users need
to:
–  Avoid crime, fraud, privacy invasion
519
Computer Waste and Mistakes
•  Computer waste
–  Inappropriate use of computer technology and
resources
•  Computer-‐related mistakes
–  Errors, failures, and other computer problems
that make computer output incorrect or not
useful

520
Computer Waste
•  Cause: improper management of informa0on
systems and resources
–  Discarding old so_ware and even complete
computer systems when they s0ll have value
–  Building and maintaining complex systems that are
never used to their fullest extent
–  Using corporate 0me and technology for personal
use
–  Spam

521
Computer-‐Related Mistakes
•  Causes
–  Failure by users to follow proper procedures
–  Unclear expecta0ons and a lack of feedback
–  Program development that contains errors
–  Incorrect data entry by data-‐entry clerk

522
Preven0ng Computer-‐Related Waste
and Mistakes
•  Preven0ng waste and mistakes involves:
–  Establishing policies and procedures
–  Implemen0ng policies and procedures
–  Monitoring policies and procedures
–  Reviewing policies and procedures

523
Establishing Policies and
Procedures
•  Establish policies and procedures regarding
efficient acquisi0on, use, and disposal of
systems and devices
•  Training programs for individuals and
workgroups
•  Manuals and documents on how computer
systems are to be maintained and used
•  Approval of certain systems and applica0ons
to ensure compa0bility and cost-‐effec0veness
524
Implemen0ng Policies and
Procedures
•  Policies o_en focus on:
–  Implementa0on of source data automa0on and
the use of data edi0ng to ensure data accuracy
and completeness
–  Assignment of clear responsibility for data
accuracy within each informa0on system
•  Training is o_en the key to acceptance and
implementa0on of policies and procedures

525
Monitoring Policies and
Procedures
•  Monitor rou0ne prac0ces and take correc0ve
ac0on if necessary
•  Implement internal audits to measure actual
results against established goals
•  Follow requirements in Sarbanes-‐Oxley Act

526
Reviewing Policies and Procedures
•  During review, people should ask the
following ques0ons:
–  Do current policies cover exis0ng prac0ces
adequately? Were any problems or opportuni0es
uncovered during monitoring?
–  Does the organiza0on plan any new ac0vi0es in
the future? If so, does it need new policies or
procedures on who will handle them and what
must be done?
–  Are con0ngencies and disasters covered?
527
Computer Crime
•  O_en defies detec0on
•  Amount stolen or diverted can be substan0al
•  Crime is clean and nonviolent
•  Number of IT-‐related security incidents is
increasing drama0cally
•  Computer crime is now global

528
The Computer as a Tool to Commit
Crime
•  Criminals need two capabili0es to commit
most computer crimes
–  Knowing how to gain access to the computer
system
–  Knowing how to manipulate the system to
produce the desired result
•  Examples
–  Social engineering
–  Dumpster diving
–  Counterfeit and banking fraud using sophis0cated
desktop
Fundamentals of Informa0on publishing programs and high-‐quality
529
Cyberterrorism
•  Cyberterrorist
–  Someone who in0midates or coerces a
government or organiza0on to advance his or her
poli0cal or social objec0ves by launching
computer-‐based aâcks against computers,
networks, and the informa0on stored on them
•  Homeland Security Department s Informa0on
Analysis and Infrastructure Protec0on
Directorate
–  Serves as governmental focal point for figh0ng
cyberterrorism
530
Iden0ty The_
•  Imposter obtains key pieces of personal
iden0fica0on informa0on, such as Social
Security or driver s license numbers, in order
to impersonate someone else
–  Informa0on is then used to obtain credit,
merchandise, and/or services in the name of the
vic0m or to provide the thief with false creden0als
•  Iden0ty The_ and Assump0on Deterrence Act
of 1998 passed to fight iden0ty the_
•  9 million vic0ms in 2005
531
The Computer as the Object of
Crime
•  Crimes fall into several categories such as:
–  Illegal access and use
–  Data altera0on and destruc0on
–  Informa0on and equipment the_
–  So_ware and Internet piracy
–  Computer-‐related scams
–  Interna0onal computer crime

532
Illegal Access and Use
•  Hacker: learns about and uses computer

systems
•  Criminal hacker (also called a cracker): gains
unauthorized use or illegal access to
computer systems
•  Script bunnies: automate the job of crackers
•  Insider: employee who compromises
corporate systems
•  Malware: so_ware programs that destroy or
533
Illegal Access and Use (con0nued)
•  Virus: computer program file capable of
aâching to disks or other files and replica0ng
itself repeatedly, typically without the user s
knowledge or permission
•  Worm: parasi0c computer program that can
create copies of itself on the infected
computer or send copies to other computers
via a network

534
•  Trojan horse: malicious program that
disguises itself as a useful applica0on and
purposefully does something the user does
not expect
•  Logic bomb: type of Trojan horse that
executes when specific condi0ons occur
–  Triggers for logic bombs can include a change in a
file by a par0cular series of keystrokes or at a
specific 0me or date
535
•  Tips for avoiding viruses and worms
–  Install an0virus so_ware on your computer and
configure it to scan all downloads, e-‐mail, and
disks
–  Update your an0virus so_ware regularly
–  Back up your files regularly
–  Do not open any files aâched to an e-‐mail from
an unknown, suspicious, or untrustworthy source

536
•  Tips for avoiding viruses and worms
(con0nued):
–  Do not open any files aâched to an e-‐mail unless
you know what it is, even if it appears to come
from a friend or someone you know
–  Exercise cau0on when downloading files from the
Internet
•  Ensure that the source is legi0mate and reputable

537
Using An0virus Programs
•  An(virus program: so_ware that runs in the
background to protect your computer from
dangers lurking on the Internet and other
possible sources of infected files
•  Tips on using an0virus so_ware
–  Run and update an0virus so_ware o_en
–  Scan all diskeês and CDs before using them
–  Install so_ware only from a sealed package or
secure, well-‐known Web site
–  Follow careful downloading prac0ces
–  If you detect a virus, take
538 immediate ac0on
Using An0virus Programs
(con0nued)
Table 9.2: Antivirus Software

539
Informa0on and Equipment The_
•  Obtaining iden0fica0on numbers and
passwords to steal informa0on or disrupt
systems
–  Trial and error, password sniffer program
•  So_ware the_
•  Computer systems and equipment the_
–  Data on equipment is valuable

540
So_ware and Internet So_ware
Piracy
•  SoTware piracy: act of illegally duplica0ng
so_ware
•  Internet soTware piracy: illegally
downloading so_ware from the Internet
–  Most rapidly expanding type of so_ware piracy
–  Most difficult form to combat
–  Examples: pirate Web sites, auc0on sites that
offer counterfeit so_ware, peer-‐to-‐peer networks
–  Penal0es can be severe
541
Computer-‐Related Scams
•  Examples of Internet scams
–  Get-‐rich-‐quick schemes involving bogus real
estate deals
–  Free vaca0ons with huge hidden costs
–  Bank fraud
–  Fake telephone loêries
•  Phishing
–  Gaining access to personal informa0on by
redirec0ng user to fake site
542
Interna0onal Computer Crime
•  Computer crime is an interna0onal issue
•  So_ware industry loses about $9 billion in
revenue annually to so_ware piracy occurring
outside the United States
•  Terrorists, interna0onal drug dealers, and
other criminals might use informa0on systems
to launder illegally obtained funds

543
Preven0ng Computer-‐Related
Crime
•  All states have passed computer crime
legisla0on
•  Some believe that these laws are not effec0ve
because:
–  Companies do not always ac0vely detect and
pursue computer crime
–  Security is inadequate
–  Convicted criminals are not severely punished
•  Individual and group efforts are being made to
curb computer crime, and recent efforts have
544
Crime Preven0on by State and
Federal Agencies
•  State and federal agencies have begun
aggressive aâcks on computer criminals
•  Computer Fraud and Abuse Act, 1986
•  Computer Emergency Response Team (CERT)
•  Many states are now passing new,
comprehensive bills to help eliminate
computer crimes

545
Crime Preven0on by Corpora0ons
•  Public key infrastructure (PKI): enables users
of an unsecured public network such as the
Internet to securely and privately exchange
data
–  Uses a public and a private cryptographic key pair
that is obtained and shared through a trusted
authority
•  Biometrics: measurement of one of a
person s traits, whether physical or
behavioral
546
(con0nued)
Table 9.3: Common Methods Used to Commit Computer Crimes

(con0nued)
Table 9.3: Common Methods Used to Commit Computer Crimes (continued)

(con0nued)
•  Companies are joining together to fight crime
–  So_ware and Informa0on Industry Alliance (SIIA):
original an0piracy organiza0on
–  Microso_ financed the forma0on of a second
an0piracy organiza0on, the Business So_ware
Alliance (BSA)
–  Other so_ware companies, including Apple,
Adobe, Hewle^-‐Packard, and IBM, now contribute
to the BSA

549
Using Intrusion Detec0on So_ware
•  Intrusion detec(on system (IDS): so_ware
that monitors system and network resources
and no0fies network security personnel when
it senses a possible intrusion
–  Suspicious ac0vi0es: failed login aêmpts,
aêmpts to download program to server,
accessing a system at unusual hours
–  Can provide false alarms
–  E-‐mail or voice message alerts may be missed
550
Using Managed Security Service
Providers (MSSPs)
•  Managed security service provider (MSSP):
organiza0on that monitors, manages, and
maintains network security for both hardware
and so_ware for its client companies
–  Si_s through alarms and alerts from all monitoring
systems
–  May provide scanning, blocking, and filtering
capabili0es

551
Internet Laws for Libel and
Protec0on of Decency
•  Filtering so_ware helps screen Internet
content
–  Also prevents children from sending personal
informa0on over e-‐mail or through chat groups
•  Internet Content Ra0ng Associa0on (ICRA)
–  Rates Web sites based on authors responses
from ques0onnaire
•  Children s Internet Protec0on Act (CIPA),
2000
–  Required filters in federally funded libraries
•  Libel is an important legal issue on the
552
Preven0ng Crime on the Internet
•  Develop effec0ve Internet usage and security

policies for all employees
•  Use a stand-‐alone firewall (hardware and
so_ware) with network monitoring
capabili0es
•  Deploy intrusion detec0on systems, monitor
them, and follow up on their alarms

553
Preven0ng Crime on the Internet
(con0nued)
•  Monitor managers and employees to make
sure that they are using the Internet for
business purposes
•  Use Internet security specialists to perform
audits of all Internet and network ac0vi0es

554
Privacy Issues
•  With informa0on systems, privacy deals with

the collec0on and use or misuse of data
•  More data and informa0on are produced and
used today than ever before
•  Data is constantly being collected and stored
on each of us
•  This data is o_en distributed over easily
accessed networks and without our
knowledge or consent
555
Privacy and the Federal
Government
•  U.S. federal government is perhaps the largest
collector of data
•  Over 4 billion records exist on ci0zens,
collected by about 100 federal agencies
•  U.S. Na0onal Security Agency (NSA) had
secretly collected phone call records of tens of
millions of U.S. ci0zens a_er the September
11, 2001 terrorist aâcks
–  Ruled uncons0tu0onal and illegal by a federal
judge in August 2006 556
Privacy at Work
•  There is conflict between rights of workers
who want their privacy and the interests of
companies that demand to know more about
their employees
•  Workers might be monitored via computer
technology that can:
–  Track every keystroke made by a worker
–  Know when the worker is not using the keyboard
or computer system
–  Es0mate
how many breaks
557 he or she is taking
E-‐Mail Privacy
•  Federal law permits employers to monitor e-‐
mail sent and received by employees
•  E-‐mail messages that have been erased from
hard disks can be retrieved and used in
lawsuits
•  Use of e-‐mail among public officials might
violate open mee0ng laws

558
Privacy and the Internet
•  Huge poten0al for privacy invasion on the
Internet
•  E-‐mail is a prime target
•  Plaòrm for Privacy Preferences (P3P):
screening technology that shields users from
Web sites that do not provide the level of
privacy protec0on they desire
•  Children s Online Privacy Protec0on Act
(COPPA), 1998: require privacy policies and
parental consent
559
Fairness in Informa0on Use
Table 9.4: The Right to Know and the Ability to Decide

Fairness in Informa0on Use
(con0nued)
•  The Privacy Act of 1974: provides privacy protec0on
from federal agencies
•  Gramm-‐Leach-‐Bliley Act: requires financial
ins0tu0ons to protect customers nonpublic data
•  USA Patriot Act: allows law enforcement and
intelligence agencies to gather private informa0on
•  Other laws regulate fax adver0sements, credit card
bureaus, the IRS, video rental store, telemarketers,
etc.

561
Corporate Privacy Policies
•  Should address a customer s knowledge, control,
no0ce, and consent over the storage and use of
informa0on
•  May cover who has access to private data and
when it may be used
•  A good database design prac0ce is to assign a
single unique iden0fier to each customer
–  Single record describing all rela0onships with the
company across all its business units
–  Can apply customer privacy preferences consistently
throughout all databases

562
Individual Efforts to Protect Privacy
•  Find out what is stored about you in exis0ng
databases
•  Be careful when you share informa0on about
yourself
•  Be proac0ve to protect your privacy
•  When purchasing anything from a Web site,
make sure that you safeguard your credit card
numbers, passwords, and personal
informa0on
563
The Work Environment
•  Computer technology and informa0on systems
have opened up numerous avenues to
professionals and nonprofessionals
•  Enhanced telecommunica0ons has:
–  Been the impetus for new types of business
–  Created global markets in industries once limited to
domes0c markets
•  Despite increasing produc0vity and efficiency,
computers and informa0on systems can raise
other concerns
564
Health Concerns
•  Working with computers can cause occupa0onal
stress
•  Training and counseling can o_en help the
employee and deter problems
•  Computer use can affect physical health as well
–  Strains, sprains, tendoni0s, repe00ve mo0on
disorder, carpal tunnel syndrome
•  Concerns about emissions from improperly
maintained and used equipment, display screens,
and cell phones
565
Avoiding Health and Environmental
Problems
•  Many computer-‐related health problems are
caused by a poorly designed work
environment
•  Ergonomics: science of designing machines,
products, and systems to maximize the safety,
comfort, and efficiency of the people who use
them

566
Ethical Issues in Informa0on Systems
•  Code of ethics: states the principles and core
values that are essen0al to a set of people and
thus governs their behavior

567
Ethical Issues in Informa0on Systems
(con0nued)
•  ACM code of ethics and professional conduct
–  Contribute to society and human well-‐being
–  Avoid harm to others
–  Be honest and trustworthy
–  Be fair and take ac0on not to discriminate
–  Honor property rights including copyrights and
patents

568
Ethical Issues in Informa0on
Systems (con0nued)
•  ACM code of ethics and professional conduct
(con0nued)
–  Give proper credit for intellectual property
–  Respect the privacy of others
–  Honor confiden0ality

569
Summary
•  Preven0ng computer-‐related waste and
mistakes requires establishing, implemen0ng,
monitoring, and reviewing policies and
procedures
•  Criminals need two capabili0es to commit
most computer crimes: knowing how to gain
access to the computer system and knowing
how to manipulate the system to produce the
desired result
570
Summary (con0nued)
•  Categories of crimes in which the computer is
the object of crime: illegal access and use,
data altera0on and destruc0on, informa0on
and equipment the_, so_ware and Internet
piracy, computer-‐related scams, and
interna0onal computer crime
•  Intrusion detec0on system (IDS): so_ware
that monitors system and network resources
and no0fies network security personnel when
it senses a possible intrusion
571
Summary (con0nued)
•  With informa0on systems, privacy deals with
the collec0on and use or misuse of data
•  Ergonomics: science of designing machines,
products, and systems to maximize the safety,
comfort, and efficiency of the people who use
them
•  Code of ethics: states the principles and core
values that are essen0al to a set of people and
thus governs their behavior
572

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Fundamentals

Fundamentals of Informa0on

Fundamentals of Informa0on

Fundamentals of Informa0on

Fundamentals of Informa0on

• Informa(on system (IS)

Fundamentals of Informa0on

Fundamentals of Informa0on

Table 1.1: Types of Data

Fundamentals of Informa0on

Figure 1.1: Defining and Organizing Relationships Among Data Creates

Figure 1.2: The Process of Transforming Data into Information

Table 1.2: Characteristics of Valuable Information

Table 1.2: Characteristics of Valuable Information (continued)

Fundamentals of Informa0on

Figure 1.3: The Components of an Information System

Fundamentals of Informa0on

Fundamentals of Informa0on

Figure 1.4: The Components of a Computer-Based Information System

Fundamentals of Informa0on Systems, Fourth Edi0on 21

Fundamentals of Informa0on

Fundamentals of Informa0on

Figure 1.5: Business Information Systems

Fundamentals of Informa0on

Fundamentals of Informa0on

Figure 1.8: Electronic Business

Fundamentals of Informa0on

Figure 1.9: A Payroll Transaction Processing System

Fundamentals of Informa0on Systems, Fourth Edi0on 29

Fundamentals of Informa0on

Fundamentals of Informa0on

Fundamentals of Informa0on

Figure 1.10: Management Information System

Fundamentals of Informa0on Systems, Fourth Edi0on 33

• Decision support system (DSS)

Fundamentals of Informa0on

Figure 1.11: Essential DSS Elements

Figure 1.12: The Major Elements of Artificial Intelligence

Fundamentals of Informa0on

Fundamentals of Informa0on

Figure 1.14: An Overview of Systems Development

Fundamentals of Informa0on

Fundamentals of Informa0on

Figure 1.15: A General Model of an Organization

Fundamentals of Informa0on Systems, Fourth Edi0on 45

Figure 1.16: The Value Chain of a Manufacturing Company

Fundamentals of Informa0on

Fundamentals of Informa0on

Fundamentals of Informa0on

• Compe((ve advantage: signiﬁcant, long-­‐

Fundamentals of Informa0on

• Five-­‐forces model iden0ﬁes key factors

Fundamentals of Informa0on

Fundamentals of Informa0on

Fundamentals of Informa0on

Fundamentals of Informa0on

Figure 1.18: Three Stages in the Business Use of Information Systems

Fundamentals of Informa0on

Fundamentals of Informa0on

Fundamentals of Informa0on

Figure 1.19: The Three Primary Responsibilities of Information Systems

Fundamentals of Informa0on

Fundamentals of Informa0on

•  Informa(on system (IS)

•  Decision support system (DSS)

•  Compe((ve advantage: signiﬁcant, long-‐

•  Five-‐forces model iden0ﬁes key factors

•  Mul(processing: simultaneous execu0on

•  Computer programs: sequences of

•  Opera(ng system (OS): programs that

•  Combina0ons of OSs, computers, and users:

•  Ac0vi0es performed by the opera0ng system

•  Ac0vi0es performed by the opera0ng system

•  Common hardware func0ons

•  Workgroup applica(on soTware: support