Final Exam
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195 terms
Terms | Definitions |
|---|---|
 Transaction Processing Systems (TPS) | The first information system. An automated mannual bookkeeping system focussed only on date collection processing. Ex: Airline ticket reservation systems, banking systems for recording deposits and withdrawals |
| Management Information Systems (MIS) | Designed to produce timely, integrated, relevant, accurate, and useful information focused on providing information helpful to decision making. |
| Data | Raw facts and figures that are not necessarily helpful to decision making |
| Information | Data that has been summarized, organized, compared, etc. so that its meaningful, that is, helpful to the decision maker |
| Knowledge | The understanding or learning that is acquired by cognitively processing information |
| Applied Knowledge | The use of knowledge to make decisions |
| How does and MIS support decision making | An information system inputs data, then processes data to create meaningful information that managers use to derive knowledge that is needed to make good decisions about how to run the business. |
| Decision Support Systems (DSS) | An interactive support system that managers can use to build models like a financial forecasting model |
| Michael Porter | Professor and author of classic article used to explain how IT can be used by companies to achieve a competitive advantage by explaining the Five Forces Model |
| Premises of the five forces model | the five forces or threats that companies must confront and overcome in order to thrive and be successful, defining the profitability potential of that industry. |
| Rivalry among existing competitors | High when many competitors occupy the same marketplace position Low when there are few competitors |
| Threat of substitute products or services | High when many alternatives for an organization's products or services are available. Add services to make organizations more distinct Add fees to discourage customers from switching |
| Threat of new entrants | Low when duplicating a company's product or service is difficult. Use focus strategies to ensure that this threat remains low |
| Buyer Power | High when customers have many choices Low when they have few choices Limit buyers' choices by offering services that make it difficult for customers to switch |
| Supplier power | High when customers have fewer options Low when customers have more options Use information systems to make their products and services cheaper |
| Three Competitive Strategies | Low Cost Provider (Walmart) Differentiator (Apple iphone) Niche focus (rolex watch, porsche) |
| The Processing Unit | Contains the central processing unit (CPU) which is the brain and the main memory (RAM). Data and instructions are stored in the memory and processed by the CPU. |
| Central Processing Unit (CPU) | The brain and the main memory of the unit. |
| (RAM) Random Access Memory | a big grid of capacitors, each with its own transistor to turn it on and off, and the pathways (wire) that connect the capacitors to the electrical power source |
| the BUS | the highway (wires) that data (electrical pulses) travel along to move between components on the motherboard. |
| bit | One capacitor can store a bit (a binary digit) |
| byte | an 8-digit number that can be stored by eight capacitors |
| RAM memory | a big grid of storage units and each unit consists of 8 capacitors |
| RAM memory size is expressed in numbers of bytes | 1 gigabyte=1 billion bytes 1 kilobyte=1 thousand bytes 1 megabyte=1 million bytes 1 gigabyte=1 billion bytes 1 terabyte=1 trillion bytes |
| ASCII | An eight digit binary code is assigned to each letter of the alphabet. Other characters are also assigned binary codes. |
| unicode encoding scheme | An encoding scheme which created codes for letters and symbols in other languages. Replaced ASCII code with a 16-digit scheme |
| Complier | After a programmer writes a program in programming language, it must be translated into a machine language using a complier. |
| CPU (central processing unit) | microprocessor; the computer's brain Intel (Pentium processors) AMD (Athlon processors) |
| Main Parts of a Microprocessor | Control Unit (CU) Arithmetic Logic Unit (ALU) |
| Control Unit (CU) | Part of the microprocessor that manages the execution of programming instructions |
| Arithmetic Logic Unit (ALU) | Part of the microprocessor responsible for performing the arithmetic and logical operations. (Registers in the ALU) |
| Optical Storage Disks | Slower than magnetic disks but less susceptible to damage from contamination and less fragile |
| CD-ROM | First generation optical disks which stored data using the land-and-pit technology. |
| Digital Video Disks (DVD) | Have huge storage capacities because they store data on both the top and bottom layer. |
| Storage area network (SAN) | A network of storage devices that make storage devices available to all servers on a network |
| Network-attached storage (NAS) | Network-connected computer dedicated to providing file-based storage services to other network devices |
| Computer languages | Machine language Assembly language High-level languages Fourth generation languages Fifth-generation languages |
| Machine language | Code written for one type of computer but does not work on another. |
| Assembly language | Higher level than machine but still machine dependent |
| High-level language | C++, Java, VB Used for Wev development and the Internet |
| Fourth generation languages | Easiest to use SQL |
| Fifth generation languages (5GLs) | Knowledge-based systems Natural language processing (NLP) Visual programming Graphical approach to using programming |
| Super computer | The most powerful type of computer system. May have hundreds of processors and can perform calculations at speeds expressed in trillions of operations per second |
| Applications that run on super computers | Highly calculation-intensive tasks: -weather forecasting -weapon development -oil exploration Major universities, large govt agencies and scientific labs are the typical purchasers |
| Mainframe computers | Large computers used mainly by large organizations and govt agencies that can process more than 1 billion transactions per day for hundreds of users. |
| Minicomputer or Midrange | Smaller versions of the mainframe computer that perform the same functions as mainframes but to a more limited extent |
| Workstation Computers | Powerful single-user computers for engineers designed to run computationally intensive scientific, engineering, and financial applications |
| Basic types of Servers | Print Server FTP Server Mail Server Web Server |
| Print Server | Acts as a buffer by storing print jobs in a queue until it is their turm to get printed |
| FTP Server | File server that has a large capacity disk drive and stores files for multiple users on a network. Many users can use it as a repository for all their files. |
| Mail Server | Sends, receives and stores email messages for multiple users |
| Web Server | Stores and sends web pages to web browsers. May process the page before sending it |
| Other Servers | -Proxy Server -Application Server -Database Server |
| Proxy Server | Intercepts all requests for web pages that are sent to the web server. Proxy servers improve web page access time by catching frequently requested pages and sending them to browsers on the web server's behalf and protect web servers by blocking certain types of messages from ever reaching the web server |
| Application Server | A computer that is running the "back-end" or "middle level" processes of a larger enterprise application |
| Database Server | Runs a database management system and performs resource-intensive processes such as processing queries |
| Operating System Software | Ex.: Microsoft Windows Functions include: "traffic cop"- makes processes take turns using the CPU "memory manager"-swaps data and programs in and out of the different parts of memory "file clerk"-helps storage device controllers keep track of where files are stored on storage devices "security guard"-prompts for and verifies login and passwords "receptionist"-displays the user interface (desktop) |
| 4 major operating systems | Microsoft's Windows Bell Lab's UNIX Apple's MacOS X The open source community's Linux |
| Microsoft Windows | Operating system installed on most desktop and laptop computers |
| Bell Lab's UNIX | Operating System typically installed on large computers that function as servers |
| Apple's MacOS X | Operating system installed on Apple computers |
| The open source community's Linux | a free operating system typically installed on computers functioning as servers |
| Cookies | small text files with a unique ID tag saved on the user's hard drive (usually helpful but can be intrusive) |
| Where are cookies stored? | in your "temp" folder |
| Spyware | Monitors your activities, gathers information about you, and sends that information back to themselves or a third party |
| Adware | A type of spyware that displays ads on your computer screen and collects information about how long you look at the ads and whether you clich through on an ad. The advertiser uses that information or may sell it to third parties who want to sell you products based on your interests. |
| Phishing | When an attacker sends an email message posing as a trustworthy entity for the puposes of fraudulently acquiring sensitive info, such as usernames, passwords and credit card details |
| Keyloggers | Monitor and record keystrokes. can be software or hardware devices. sometimes used by companies to track employees' use of email and internet. can be used for malicious purposes |
| spoofing | an attacker fraudulently acquires the domain name for a company's web site, so that when a victim types in that company's URL, an "imposter" web page loads into the victim's browser window |
| Virus | Segments of computer code that attach themselves to programs and cause that program to do something different. The virus spreads when one user copies or sends that program to another user |
| Acceptable use policies | A set of rules written by an organization specifying what acts are forbidden when using their computer systems. System users must agree to the terms of the Acceptable Use Policy to gain access which makes users accountable for their actions and they cannot claim they are exempt from these rules |
| Intellectual Property Laws | Protections that involve copyrights, trademarks, trade secrets, and patents for "creations of the mind" developed by people or businesses |
| Trademark | Protects product names and identifying marks |
| Patent | Protects new processes |
| Software piracy | making illegal copies of programs |
| Intellectual Property Rights | States that only the owner of a program has that right to reproduce, modify, or distribute (sell) the program |
| Software License | When you buy a program, you don't own it, you have purchased a license to use that program |
| Site license | A license to install the program on a multiple number of computers |
| End-User License Agreement (EULA) | specifies that you cannot make illegal copies of the program nor can you modify the program and sell or redistribute the modified program as your own work |
| Health Insurance Portability and Accountability Act (HIPPA) | Requires health care providers, insurance providers, and employers to follow specific procedures to protect the privacy of individual's medical data |
| Section 404 of the Sarbanes-Oxley Act (SOX) | Requires IT professionals to document and test the effectiveness of security measures protecting information assets. Also requires companies to set up security systems to protect the confidentiality of data/ information on their systems. |
| Gramm-Leach-Bliley Act (GLBA) | Requires financial institutions to follow specific procedures to protect the privacy and security of customers' financial data. |
| Fault- tolerant system | A combination of hardware and software that ensures availability in the case of a system failure Ex: Uninterruptible power supply used to protect data loss in the event of power failure or power surge Redundant array of independent disks and mirrored disks used to recover data that could be lost if a hard disk fails or crashes |
| Denial-of-Service Attacks | Floods a network or server with service requests, targets internet servers, distributed denial-of-service attack |
| Social Engineering | Using "people skills" to trick others into revealing private information and break into servers and networks and steal data |
| Callback Modem | verify whether a user's access is valid by logging the user off when he/she connects, then calls the user back at a predetermined number. Useful in organizations with many employees who work off-site |
| Firewall | Hardware or software that can be installed on a computer or a router that uses Access Control Lists set up by the network administrator that acts as a filter or barrier between a private network and external computers (Internet) a private network |
| Virtual Private Network | Provides a secure tunnel through the internet. Used by "off-site" employees to send private data over the public airways. Once the VPN connection is established, all data traversing back and forth is encrypted |
| Business Continuity Planning | Develops procedures for keeping information systems operational in the event of disaster |
| Protocols | Rules that govern data communication, including procedures for handling error detection and correction, specified message length and transmission speed |
| Modem | (short for "modulator-demodulator) A device that connects a user to the Internet via phone or cable lines. Types include dial up (analog), digital subscriber line (DSL) and cable |
| Dial-up Modems | Phone lines are designed to transmit analog or voice signals. A modem translates a digital signal into an analog signal so that it can travel along the phone lines. When the signal reaches its destination, it much be converted back into digital |
| Conducted media | a type of communication media that uses a physical path for transmitting data. -twisting pair phone lines -co-axial cable -fiber optic cable |
| Radiated media | A type of communitcation media that uses antennas to transmit data through air or water -electromagnetic waves -may use satallites and microwave ground stations to relay signals |
| Twisted pair wire | *Typical data Rates: 1-4 M bps *Advantages: -low cost -already in most buildings *Disadvantages -low speed -noise |
| COAX | *Typical Data Rates: 10-100M bps *Advantages: -Higher Speed *Disadvantages: -More costly -installation difficulties |
| Optical Fiber | *Typical Data Rates: 10-1000M bps *Advantages: -much higher speeds *Disadvantages: -costly -difficult installation -less mature |
| The elecro-magnetic spectrum | the categorization of waves by their frequency |
| Mulitplexors | A device that combines several input signals into one output signal |
| Packet | A collection of binary digits, including message data and control characters for formatting and transmitting sent from computer to computer over a network |
| Routing | Process of deciding which path data takes using routing table |
| Routers | The device that routes data packets to their destinations and choose the best possible path for packets |
| Parts of a URL | http: the protocol used to request that page www: indicates that it's a web page on a web browser csub.edu: domain name indicating who owns the server on which the page is hosted ~hbidgoli: the folder that the file is in on that server books.html: the file name |
| Intranet | a network within an organization that uses Internet protocols and technologies for collections, storing, and disseminating useful information that supports business activities. Also called "corporate portals" and for internal use by employees |
| Exranet | An inter-connection of intranets usually established between business partners to order more supplies from suppliers without human intervention. |
| Blog | (short for "weblog") A journal or newsletter that's updated frequently and intended for the general public; usually dedicated to a particular topic or organization |
| Wiki | Allows users to add, delete, and sometimes modify others web pages |
| RSS Feeds | "really simple syndication" Fast, easy way to distribute Web content in Extensible Markup Language (XML) format |
| Podcasting | Electronic audio file posted on the Web for users to download to their mobile devices |
| The Internet2 | Collaborative effort involving more than 200 U.S. universities and corportations to develop advanced Internet technologies and applications |
| Final aspect of Strategic Planning Model | Look at your value chain and ask yourself, "where should I apply IT or use e-commerce capabilities to help me achieve my strategy?" |
| Value Chain | a general model of all the activities performed by a company. It's called the value chain because each activity performed by a company is supposed to add value to the final product or service delivered. |
| The value chain and E-commerce | The value chain can be applied when a company is trying to figure out how it can use technologies to add more value. It can examine its own value chain to see which "links" may be able to add more value if technology were applied in some way to that business activity |
| e-commerce business | the merchant model the brokerage model the advertising model the mixed model the informediary model the subscription model |
| The merchant model | traditional "brick and mortar" business |
| the brokerage model | a business may play the role of an intermediary in a transaction helping buyers and sellers find each other or handle the funds transfer (PayPal, online malls, Lending Tree) |
| the advertising model | A business may give away a free service that attracts users and then sell advertising space on your site (Google) |
| the mixed model | a combined approach (a newspaper may sell subscriptions to both online and print versions) |
| the informediary model | a business collects information about customers and businesses and sells it to third parties (BizRate) |
| the subscription model | Netflix |
| Catagories of Ecommerce | C2C (consumer sells to consumer)C2B (consumer sells to business) C2G (consumer sells to government) etc |
| Exchange sites | Businesses may go to exchange sites to obtain hard-to-find products or services |
| Forward auction | Sellers place items up for auction and buyers bid; the high bidder wins |
| Reverse auction | Buyers wishing to purchase items invite sellers (suppliers) to post quotes on selling prices. The lowest supplier wins |
| Electronic Payment system | Electronic payment payment cards smart cards |
| electronic payment | money or scrip that is exchanged only electronically |
| payment cards | credit, debit, charge and smart cards |
| smart cards | credit card sized, contains an embedded micriprocessor chip storing important financial and personal information |
| e-wallet | a small file that can be stored on your computer or a vendor's server that contains your name, credit card information, shipping address, ect. |
| Obstacles to Using Global Information Systems | Lack of international telecommunication standards Poor telecommunication Infrastructures Legal Differences Lack of skilled analysts and programmers Trans-border data flow (TDF) restrictions Cultural differences |
| Poor telecommunications infrastructure | Most third world countries do not have reliable telecommunications infrastructure |
| Legal protections | China and many other foreign countries have laws that protect intellectual properties right but they don't enforce them. Microsoft loses billions of dollars a year due to foreign piracy of its programs |
| Data Privacy in the EU | In the European Union, personal privacy rights are highly protected. The Organization for Economic Cooperation and Development (OECD) in the EU issued its "Recommended Guidelines Governing the Protection of Privacy and Trans-Border Flow of Personal Data." |
| Data Privacy in the US | The US uses a self-regulation approach to protecting personal data. There is no universal data privacy legislation in the US. Instead, data privacy laws tend to be adopted on an ad hoc basis, with legislation arising when certain sectors and circumstances require |
| The Safe Harbor Agreement | EU Compromise: If a US company could demonstrate that they were complying with the seven principles in the OECD Guidelines, then they would be allowed to transport EU citizens' data to the US |
| Cultural Differences b/w Asia and the U.S. | LANGUAGE: It is generally good practice to "localize" materials when feasible. Local words and expressions sometimes just do not properly translate for English and may actually be offensive INDIVIDUALISM VS. COLLECTIVISM: Asians depend more on groups or institutions to determine what they should do and emphasize loyalty. More likely to cooperate and avoid risks. Americans rely on their own view; tend to work alone; reluctant to cooperate. More masculine culture. COOPERATION: Asians- pay more attention to relationships than contracts. Asians do not consider contracts as seriously as the Americans American- place greater importance on contractual safeguards than the Asians |
| Non-simple database | Objects that may be included in a non-simple database may have 10 or more tables and include: -a data entry form -a query -a report |
| Standard Query Language (SQL) | A computer language that includes commands to create databases and tables, to updata, insert, and extract data, and to grant or revoke user access privileges, and to post transactions |
| The Database Administrator (DBA) | A person who is in charge of the database. Manages the development, operation, and maintenance of the database |
| Designing a Database Step 1 | Develop conceptual data model (describes at an abstract level what data needs to be stored in the database). The diagram is called an entity-relationship diagram |
| Conceptual Database Model | IDENTIFY ENTITIES: An entity is a person, place, thing, or event such as a customer, employee, or product |
| Conceptual Database Model | IDENTIFY ATTRIBUTES: Attributes are things that describe our entities |
| Conceptual Database Model | SELECT IDENTIFIERS: Identifiers are attributes that uniquely identify each entity instance |
| CDM Step 2 | Adding "keys" to link entity instances: Primary keys and foreign keys (attribute that is a primary key in another table) |
| Analytical Databases | A type of database that is used just for performing various types of analysis on the data. |
| Data warehouse | A type of analytical database that stores operational and other types of data from a combination of sources |
| Data mart | A smaller version of a data warehouse and may store data about one subject only |
| ETL | Incoming data is "cleansed" by the ETL (Extraction, Transformation, and Loading) system by re-organizing it, reformatting it, or combining it with other data |
| Analytical tools | Used to derive various forms of business intelligence from the data in the data warehouse or data mart |
| Data-mining tools | Analytical tool to produce "intellegence" from data by applying statistical techniques that reveal patterns, relationships, and trends in large data sets |
| Online Analytical Processing (OLAP) tools | Anaylytical tools that create OLAP cubes which are reports showing data summarized by multiple dimensions |
| Systems Development Methodology (SDLC) | Software Development Life Cycle is a method for building information systems. |
| SDLC phases | 1) Planning stage 2) Requirements gathering and analysis 3) Design 4) Implementation 5) Maintenance |
| Phase One Feasibility Study | Economically feasible? Technically feasible? Operationally feasible? Can it be completed in time? Will there be legal repercussions? |
| Phase 2: Prototyping | A prototype is a small-scale version of the system is developed. Large enough to illustrate the system's benefits and allows users to offer feedback about what they like and dislike |
| Phase 3: Design | Analysits choose the solution that's the most realistic and offers the highest payoff for the organization. |
| Three Levels of Design | 1) Conceptual design: draw diagrams of the new system 2) Logical design: identify number of servers needed, what database will be used, what software programs will be purchased or developed 3) Physical design: specify exactly what computers will be purchased and what type of software licenses will be purchased |
| Phase 3: CASE tools | CASE tools are Computer-Aided System Engineering tools; automate parts of application development process |
| Phase 4: Implementation Phase | -RFP (Requests for proposal) are sent out to hardware, software, and network component vendors soliciting their bids on the job/provide the equipment |
| Conversion strategies | Pilot Phased Parallel Plunge |
| Pilot Strategy | Implement new system in a "test" area first to see if it works, then go all the way |
| Phased Strategy | Implement new system in phases (one department or business unit at a time) |
| Parallel Strategy | Implement new system while old system is still running. Make sure new system works before shutting down old system |
| Plunge (direct) Strategy | Shut off old system, turn on new system |
| Alternative system design approaches | RAD (Rapid Application Development) XP(Extreme Programming) |
| Rapid Application Development (RAD) | The design and implementation phases are broken into smaller "chunks" and a design-implement-fix cycle is performed iteratively one chunk at a time More end user involvement reduces likelihood that end users will be happy with the new system; extensive use of prototyping |
| Extreme Programming (XP) | Small incremental releases are made more frequently. End users very closely monitor the system's progress at every step to immediately point out adjustments that should be made along the way. Programmers grouped into pairs; during requirements stage, end users write stories about how they would like the system to help them do their jobs. |
| Alternatives to developing your own information system | PURCHASING: off-the-shelf applications OUTSOURCING: can save money and provide better quality of service CLOUD COMPUTING: may be used to transfer application hosting services to an Application Service Provider |
| Cloud computing | Some companies are allowing Application Service Providers (ASPs) to host their applications for them. Someone else hosts your applications on their site "in the cloud" and you just pay a monthly fee to access the program using your web browser |
| Supply Chain Management | About managing and coordinating with suppliers and other partners in the supply chain to accomplish the process of moving products and services through the supply chain |
| Supply Chain Management System | An inter-organizational system that is designed to facilitate supply chain management. Helps to coordinate product flows, information flows, and financial flows |
| Product flows | raw materials to factories to warehouses to retail stores |
| Information flows | Purchase orders, notifications of shipment, verification of delivery |
| Financial flows | Payments to suppliers |
| SCMs and Extranets | A SCMs is an inter-organizational system, meaning that one SCM system is shared by multiple businesses so that they can pass information to each other easily. Typically run on extranets |
| Electronic Data Interchange (EDI) | A set of standards that define the format of an electronic message. When inventory levels drop to a certain minimal level, a retailer's computer system can automatically send a purchase order message to the supplier's system requesting more merchandise. If all computers agree to use the same format for these messages, they can communicate automatically without human intervention |
| Customer Relationship Management Systems (CRMs) | A system used to give businesses a more complete picture of their customers by integrating demographic and other external data with customers' transaction data to better understand customer behavior. Main goal: improve services offered to customers and use customer contact information for targeted marketing; focus on long-term relationships with customers instead of transactions |
| CRMs and personalized service | Using personalization requires gathering a lot of information about customers' preferences and shopping patterns |
| Enterprise Resource Planning systems (ERPs) | A single system that can integrate departmental systems in the manufacturing, logistics, distribution, accounting, finance, marketing/sales, and human resource functional areas. |
| Benefits of ERPs implementations | -ERPs enable business processes that cross functional boundaries to be coordinated/ integrated -ERPs enable data sharing b/w functional areas -ERPs can simplify the IT infrastructure by replacing several separate systems with one enterprise system ERPs enable organizations with multiple facilities to standardize their business processes I so that all locations perform business processes the same way) |
| Types of Decisions made in organizations | Structured decisions (easy to make) Unstructured decisions (difficult to make) Semi-structured decisions (in between) |
| Structured Decisions | Easy to make "programmable" decisions that have a clear-cut "formula" for resolving |
| Unstructured Decisions | Difficult to make Decisions that have no clear-cut formula for resolving Ex: how to boost employee morale |
| Semi-Structured Decisions | In Between Decisions that have somewhat of a formula for resolving but require information gathering and analysis to quantify or "structure" the factors that impact the decision outcome. |
| Steps to the decision making process (Herbert Simon) | According to Herbert Simon, once a problem is discovered or a situation occurs that needs addressing, a decision maker should go through four steps |
| Step 1: The Intelligence (gathering) Step | The Intelligence (gathering) Step: Look into finding out what the problem is about; what needs resolving. Generate ideas and gather data about alternative solutions/ options. |
| Step 2: The Design Step | The Design Step: Define what procedure or form of analysis you will use to resolve the problem. Identify what selection criteria you will use when selecting amongst alternative solutions |
| Step 3: The Choice Step | The Choice Step: Choose which alternative to go with |
| Step 4: The Implementation Step | Implement the solution |
| Management Support Systems (MSS) | A term used to describe all the different types of information systems that have been developed to support certain aspects and types of decisions. Ex: Decision Support Systems Executive Information Systems Group Support Systems |
| 'What if' analysis example | Determines what the impact will be on the output variables (such as projected profits) if one of the input variables (price or sales volume) changes. |
| Sensitivity Analysis | Determines how sensitive out model is to errors in our model's assumptions |
| Goal Seek Analysis | Determines what combination of inputs are necessary to achieve a desired output (goal) |
| Executive Information Systems | A type of MSS designed for top executives that includes: -Access to both internal and external information (to make strategic decisions) -Makes extensive use of charts, graphs, and color-coding (to easily spot trends and make forecasts) -"Drill-down" features (to see increasing levels of detail in summary reports if the need arises) -Digital dashboard (integrates info from multiple sources and presents is in a unified, understandable format) |
| Group Support Systems | Use computer and communication technologies to support the group decision making process Ex.: **reduce communication barriers by allowing geographically dispersed groups to collaborate **may require group member to take turns talking so that everybody hears everything **may provide ranking or voting tools **keeps a log of the conversation for future reference |
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