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Information Systems
Dr Riktesh Srivastava
Tactical management
Managers and business professionals in self-directed
teams
Develop short- and medium-range plans, schedules
and budgets
Specify the policies, procedures and business
objectives for their subunits
Operational management
Managers or members of self-directed teams
Develop short-range plans such as weekly
production schedules
Information Quality
Information products whose characteristics, attributes, or qualities make the information more value.
Information has 3 dimensions:
Time
Content
Form
Decision Structure
Structured situations where the procedures to follow when a decision is needed can be specified in
advance
Unstructured decision situations where it is not possible to specify in advance most of the decision
procedures to follow
Semi-structured - decision procedures that can be prespecified, but not enough to lead to a definite
recommended decision
Business Intelligence
Applications
DSS: Provide interactive information support to
managers and business professionals during the
decision-making process
Use:
Analytical models
Specialized databases
A decision makers own insights and
judgments
Interactive computer-based modeling
To support semi-structured business decisions
MIS: Produces information products that support many of the day-to-day decision-making
needs of managers and business professionals
Prespecified reports, displays and responses
Support more structured decisions
MIS Reporting Alternatives:
Periodic Scheduled Reports: Pre-specified format on a regular basis
Exception Reports: Reports about exceptional conditions, May be produced regularly or when
exception occurs
Demand Reports and Responses: Information available when demanded
Push Reporting: Information pushed to manager
OLAP
Enables mangers and analysts to examine and manipulate large amounts of
detailed and consolidated data from many perspectives
Done interactively in real time with rapid response
Data Mining: Main purpose is to provide decision support to managers and business
professionals through knowledge discovery
Analyzes vast store of historical business data
Tries to discover patterns, trends, and correlations hidden in the data that can help
a company improve its business performance
Use regression, decision tree, neural network, cluster analysis, or market basket
analysis
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SWITCHING COSTS
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AMAZON, DELL
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Improved
price/performance:
Less Expensive
Value Added Features
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Midrange Systems
Mainframe Systems
Microcomputer Systems
Microcomputer are the most important category of computer systems for both businesses and consumers.
Generally, Microcomputer consists of following three systems:
Personal Computer (PC) microcomputer for use by an individual
Desktop fit on an office desk
Laptop small, portable PC
Midrange Systems
Midrange systems are high-end network servers and other types of servers that can handle the large-scale processing of
many business applications.
Mainframe Systems
Mainframe Systems are Large and fast powerful computer systems with large primary storage capacity and High
transaction processing. They are generally used for complex transactions and can be used as superservers for large
companies.
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If a person took one step per nanosecond, they would circle the earth 20 times in one second
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Input technologies
Keyboard
Pointing Devices
Electronic Mouse
Trackball Stationary device like a mouse with a roller ball used to move cursor on screen.
Pointing Stick Small eraser head-like device in keypad that moves cursor in direction of pressure placed on
stick.
Touchpad Small rectangular touch-sensitive surface that moves the cursor in the direction of finger moves on
the pad
Output Technologies
Video displays
Cathode ray tube (CRT) like a television
Most desktop PC screens
Liquid crystal displays (LCDs)
Laptop and PDAs, some PCs
LEDs
Printed Output
Inkjet printer
Spray ink on page
Laser printer
Electrostatic process like photocopying machine
Voice response systems (VRS)
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Magnetic Tapes
Magnetic Disks
Secondary storage
Floppy disks
Magnetic disk inside a plastic jacket
Types of software
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Software types
Application software
System software
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Application software
General purpose
Application-specific
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Word processing
Create, edit, revise and print documents
E.g., Microsoft Word, Lotus WordPro and Corel WordPerfect
Desktop Publishing
Produce printed materials that look professionally published
E.g., Adobe PageMaker, Microsoft Publisher and QuarkXPress
Electronic Spreadsheets
Worksheet of rows and columns
Used for calculations and charts
E.g., Lotus 1-2-3, Microsoft Excel, Corel QuattroPro
Presentation Graphics
Prepare multimedia presentations including graphics, photos,
animation, and video clips
E.g., Microsoft PowerPoint, Lotus Freelance, Corel Presentations
Personal Information Manager (PIM)
Software that stores information about clients, schedules, manage
appointments, manage tasks
E.g., Lotus Organizer, Microsoft Outlook
Groupware
Software that helps workgroups collaborate on group assignments
E-mail, discussion groups, databases, videoconferencing
E.g., Lotus Notes, Novell GroupWise, Microsoft Exchange
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System software
Software that manages and supports a computer system
System management programs
Programs that manage hardware, software, network, and data
resources
E.g., operating systems, network management programs,
database management systems, systems utilities
Systems development programs
Programs that help users develop information system programs
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Operating System
Integrated system of programs that
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Unix
Linux
MAC OS X
Programming Languages
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Web Services
Software components
based on a framework of Web and object-oriented
standards and technologies
for using the Web
to electronically link the applications of different
users and different computing platforms
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Database Structures
Hierarchical
Network
Relational
Object-oriented
Multidimensional
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Hierarchical Structure
Hierarchical Structure uses pointers to represent the
data and the relationship among the data. In
Hierarchical Structure the records are organized in
terms of trees . The hierarchical model relates data
by using inverted tree structure, in which records
contain two elements:
A single root often called a key, which identifies
the type, location or ordering of the records.
A variable name of subordinate fields that defines
the rest of the data within a record.
All fields have only one parent and each parent may
have many children. The hierarchical database
model is shown in the next slide
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Hierarchical Structure
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Network Structure
Used in some mainframe DBMS packages
The network model creates relationships
among data by which members can be
linked to more than one parent. In the
network data model also, the data is
represented as the pointers and the
relationship between records is called a set.
In this data model, we can represent the
records of the database with the help of
arbitrary graph instead of trees.
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Network Structure
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Relational Structure
Most widely used structure
Data elements are viewed as being stored in tables
Row represents record
Column represents field
Can relate data in one file with data in another file if
both files share a common data element
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Relational Structure
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Relational Operations
Select:
Join
Project
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Multidimensional Structure
Variation of relational model
Uses multidimensional structures to organize data
Data elements are viewed as being in cubes
Popular for analytical databases that support Online Analytical
Processing (OLAP)
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Multidimensional Model
Network
More flexible than hierarchical
Unable to handle ad hoc requests
Relational
Easily respond to ad hoc requests
Easier to work with and maintain
Not as efficient or quick as hierarchical or network
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Types of databases
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Operational Databases
Store detailed data to support business processes
Examples, customer database, inventory database
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Distributed Databases
Copies or parts of databases on servers at a variety of locations
Challenge: any data change in one location must be made in all other locations
Replication:
Look at each distributed database and find changes
Apply changes to each distributed database
Very complex
Duplication
One database is master
Duplicate that database after hours in all locations
Easier
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External Databases
Databases available for a fee from commercial online services or
For free from World Wide Web
Examples, statistical databanks, bibliographic and full text databases
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Hypermedia Database
Website database
Consists of hyperlinked pages of multimedia (text, graphics, video
clips, audio segments)
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Data Warehouse
Stores data that has been extracted from the operational, external and other
databases
Data mining,
Online analytical processing,
Business analysis,
Market research,
Decision support
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Data Warehouse
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Data Mining
Data in data warehouse are analyzed to reveal hidden patterns and
trends
Examples:
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Internet2
Next generation of the Internet
High-performance network
In use at 200 universities, scientific institutions, communications
corporations
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The Internet
Over 46 million servers (2004)
710 945 million users (2004)
No central computer system
No governing body
No one owns it
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An Intranet
A network inside an organization
That uses Internet technologies (such as Web browsers and servers, TCP/IP
protocols, HTML, etc.)
To provide an Internet-like environment within the organization
For information sharing, communications, collaboration and support of
business processes
Protected by security measures
Can be accessed by authorized users through the Internet
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Extranet
Network links that use Internet technologies
To connect the Intranet of a business
With the Intranets of its customers, suppliers or other business partners
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Extranet Uses
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VPN
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Wireless Technologies
Terrestrial microwave
Earthbound microwave systems that transmit high-speed radio signals in a
line-of-sight path
Between relay systems spaced approximately 30-miles apart
Communications satellites
Satellite serves as relay stations for communications signals
Uses microwave radio signals
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Wireless Technologies
Cellular and PCS telephone and pager systems
Divide the geographic area into small areas or cells
Each cell has transmitter or radio relay antenna to send message from one
cell to another
Wireless LANs
Radio signals within an office or building
Connect PCs to networks
Bluetooth
Short-range wireless technology
To connect PC to peripherals such as printer
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Internet Telephony
Using an Internet connection to pass voice data using IP
Voice over IP (VoIP)
Skips standard long-distance phone charges
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Chapter 7
Electronic Business Systems
Cross-functional Systems
Cross the boundaries of traditional
business functions
CRM Applications
Contract and Account Management
Helps sales, marketing and service professionals
Capture and track data about past and
planned contacts with customers and prospects
Sales
Provides sales reps with software tools and data
they need to support and manage sales
activities
Cross-selling is trying to sell a
customer of one product with
CRM
a related product
Up-selling is trying to sell
customer a better product
than they are currently
seeking
CRM applications
Marketing and Fulfillment
CRM applications
Retention and Loyalty Programs
Goal:
to profitably attract and keep customers
who will become partners with the business
in creating, purchasing and improving products and
services
Targeted Marketing
An advertising and promotion management concept
that includes five targeting components
Manufacturing Information
Systems
Support the production/operations function
Includes all activities concerned with planning and control of producing
goods or services
Objectives
Simplify production processes, product designs, and factory organization as
a vital foundation to automation and integration
Automate production processes and the business functions that support
them with computers, machines, and robots
Integrate all production and support processes using computer networks,
cross-functional business software, and other information technologies
Dr Riktesh Srivastava
Slide 6-97
Credit Card
Represents an account that extends credit to consumers,
permitting consumers to purchase items while deferring
payment, and allows consumers to make payments to
multiple vendors at one time
Credit card associations Nonprofit associations (Visa,
MasterCard) that set standards for issuing banks
Issuing banks Issue cards and process transactions
Processing centers (clearinghouses) Handle verification of
accounts and balances
Dr Riktesh Srivastava
Slide 6-98
Stored Value
Accounts created by depositing funds into an
account and from which funds are paid out or
withdrawn as needed
Examples: Debit cards, gift certificates, prepaid
cards, smart cards
Debit cards: Immediately debit a checking or other
demand-deposit account
Peer-to-peer payment systems such as PayPal a
variation
Dr Riktesh Srivastava
Slide 6-99
Accumulating Balance
Accounts that accumulate expenditures and to
which consumers make period payments
Examples: utility, phone, American Express
accounts
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SECURITY ISSUES
Slide 5-110
Dr Riktesh Srivastava
Slide 5-111
Dr Riktesh Srivastava
Slide 5-112
Malicious Code
Viruses: computer program that as ability to replicate and
spread to other files; most also deliver a payload of some
sort (may be destructive or benign); include macro viruses,
file-infecting viruses and script viruses
Worms: designed to spread from computer to computer
Trojan horse: appears to be benign, but then does
something other than expected
Bad applets (malicious mobile code): malicious Java applets
or ActiveX controls that may be downloaded onto client
and activated merely by surfing to a Web site
Dr Riktesh Srivastava
Slide 5-113
Dr Riktesh Srivastava
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Slide 5-115
Protecting Internet
Communications: Encryption
Encryption: The process of transforming plain text or data into cipher text that
cannot be read by anyone other than the sender and receiver
Purpose:
Secure stored information
Secure information transmission
Provides:
Message integrity
Nonrepudiation
Authentication
Confidentiality
Dr Riktesh Srivastava
Slide 5-116
Slide 5-117
Uses two mathematically related digital keys public key (widely disseminated)
and private key (kept secret by owner)
Both keys are used to encrypt and decrypt message
Once key is used to encrypt message, same key cannot be used to decrypt
message
For example, sender uses recipients public key to encrypt message; recipient
uses his/her private key to decrypt it
Dr Riktesh Srivastava
Slide 5-118
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Digital Envelopes
Addresses weaknesses of public key encryption
(computationally slow, decreases transmission
speed, increases processing time) and symmetric
key encryption (faster, but more secure)
Uses symmetric key encryption to encrypt
document but public key encryption to encrypt
and send symmetric key
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Community Relationships
Virtual communities of customers, suppliers, company representatives, and
others via newsgroups, chat rooms, and links to related sites
Chapter 10
Developing Business/IT Solutions
Feasibility Study
A preliminary study where
the information needs of prospective users
the resource requirements, costs, benefits,
and feasibility of a proposed project
are determined
Feasibility Categories
Operational Feasibility
Economic Feasibility
Technical Feasibility
Human Factors Feasibility
Legal/Political Feasibility
Operational Feasibility
How well the proposed system
supports the business priorities of the organization.
solves the identified problem.
fits within the existing organizational structure.
Economic Feasibility
Assess:
Cost savings
Increased revenue
Decreased investment requirements
Increased profits
Cost/benefit analysis
Cost/Benefit Analysis
Costs versus Benefits
Tangible costs and benefits can be quantified with a high degree of
certainty
Example: decrease in operating costs
Technical Feasibility
Determine if reliable hardware and software capable of meeting the
needs of a proposed system can be acquired or developed by the
business in the required time
Hardware
Software
Network
Legal/Political Feasibility
Assess
Systems Analysis
An in-depth study of end user information needs
That produces functional requirements that are used as the basis for
the design of a new information system
Detailed study of
The information needs of a company and end users.
The activities, resources, and products of one or more of the present
information systems being used.
The information system capabilities required to meet information needs of
users and stakeholders
Systems Design
Modify the logical model until it represents a blueprint for
what the new system will do
Physical design:
How the system will accomplish its objectives
Systems Implementation
Hardware and software acquisition
Software development
Testing of programs and procedures
Conversion of data resources
Conversion alternatives
Education and training of end users and specialists who will operate a
new system
Implementation Process
Data Conversion
Converting data elements from old database to new database
Correcting incorrect data
Filtering out unwanted data
Consolidating data from several databases
Organizing data into new data subsets
Training
End users must be trained to operate new system
Educate managers and end users in how the new technology impacts
the companys business operations and management
Conversion
Conversion from use of present system to operation of new system
Direct Conversion
Turn off old system
Turn on new system
Direct is least expensive method, but, riskiest method
Parallel Conversion
New and old systems run simultaneously
until end users and project coordinators are satisfied that the new
system is functioning correctly
Low risk
Highest cost method: perform all functions with both systems
Pilot Conversion
When new system is installed in multiple locations
Convert to new system in single location
Once complete in pilot location,
Evaluate and make any necessary changes
Phased Conversion
Incremental approach to conversion
Bring in new system as a series of functional components
Lower risk
Takes the most time
Systems maintenance
Corrective: fix bugs and logical errors
Adaptive: add new functionality to accommodate changes in business
or environment
Perfective: improve performance
Preventive: reduce chances of failure
Post-implementation review
Ensure new system meets the business objectives
Periodic review or audit
Implementation Challenges
New system involves major organizational change
Manage changes to
Business processes
Organizational structures
Managerial roles
Work assignments
Stakeholder relationships
User Resistance
New way of doing things generates resistance
Key to solving is
User involvement in organizational changes and development of new systems
User involvement
End users on systems development teams
End user ownership of new system