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Moore's Law

is the prediction that every 18 month, the cost of computing will drop by 50 percent as computer-processing power doubles.

raw data

facts and figures


useful data that can influence people's choices and behavior.

first mover advantage

the strategic advantage that companies earn by being the first to use new information technology to substantially lower costs or to make a product or service different from that of competitors.

acuistion cost

the cost of obtaining data that you don't hve

processing costs

the cost of turning raw data into usable information

storage cost

the cost of physically or electronically archiving information for later use and retrieval.

retrieval cost

the cost of accessing already-stored and processed information

communication cost

the cost of transmitting information form one place to another.

bar code

a visual pattern that represents numerical data by varying the thickness and pattern of vertical bars

radio frequency identification (RFID) tags

tags containing minuscule microchips that transmit information via radio waves an can be used to track the number and location of the objects into which the tags have been inserted

electronic scanner

an electronic device that converts printed text and pictures into digital images

optical character recognition

the ability of software to convert digitized documents into ASCII text (American Standard Code for information Interchange) that can be searched, read and edited by word processing and other kinds of software.

processing information

transforming raw data into meaningful information.

data mining

the process of dicovering unknown patterns and relationships in large amounts of data.

data wharehouse

stores huge amounts of data that hve been prepaired for data mining analysis by being cleaned of errors and redundancy

supervised data mining

the process when the user tells the data mining software to look and test for specific patterns and relationships in a data set.

unsupervised data mining

the process when the user simply tells the data mining software to uncover whatever patterns and relationships it can find in a data set.

association or affinity patterns

when two or more database elements tend to occur together in a significant way

sequence patterns

when two or more database elements occur together in a significant pattern, but one of the elements precedes the other.

predictive patterns

patterns that help identify database elements that are different.

data clusters

when three or more database elements occur together (ie a cluster) in a dignificant way.

protecting information

the process of ensuring that data are reliably and consistently retrivable in a usable format for authorized users, but no one else.


making sure potential users are who they claim to be


granting authenticated users approved access to data, softwar, and systems.

two-fator authentication

authentication based on what users know, such as password and what they have in their possession, such as a secure ID card or key.


identifying users by unique, measurable body features, such as fingerprint recognition or iris scanning


a protective hardware or software device that sits vetween the computers in an internal organizaitonal network and outside networks, such as the internet.


a program or piece of code that, without your knowledge, attaches itself to other programs on your computer and can trigger anything from a harmless flashing message to the reforming of your hard drive to a systemwide network shutdown.

data encryption

the transformation of data into complex, scrambled digital codes that can be unencrypted only by authorized users who possess unique decryption keys

virtual private network (VPN)

software that securely encrypts data sent by employess outside the company network, decrypts the data when they arrice within the compnay computer network, and does the same when data are sent back to employees outside the network

secure sockets layer (SSL) encryption

internet browser based encryption that provides secure off site web access to some data and programs

executive information system

a data processing system that uses internal and external data sources to provide the information needed to monitor and analyze organizational performance


private company networks that allow employees to easily access, share, and publish information using internet software.

corporate protal

a hybrid of executive information systems and intranets that allows managers and employees to use a web browser to gain access to customized compnay information and to complete specialized transacitons.

electronic data interchange (EDI)

when two companies convert their purchase and ordering information to a standardized format to enable the direct electronic transmission of theat infromation form one company's computer system to the other company's computer system.

web services

using standardized protocols to describe data from one company in such a way that those data can automatically be read, unerstood, transcribed, and processed by different computer systems in another company


networks that allow companies to exchanges information and conduct transactions with outsiders by providing them direct, web based access to authorized parts of a company's intranet or infromation system.


the understanding that one gains from information

dexision support system (DSS)

an information system that hlps managers understand specific kinds of problems and potentail solutions an analyze the impact of different decision options using "what if:" scenarios

expert system

an information system that contains the specialized knowledge and decision rules used by experts and experienced dexision makers so that nonexperts can draw on this knowledge base to make decisions.

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