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Samenvatting DIBS boek

Summary for Business and IT van het Management Information System boek.
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Business and IT (TETB-VTBBVBI-14)

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Samenvatting DIBS boek

Chapter 1

Digital firm = one in which nearly all the organizations’ significant business relationships with customers, suppliers, and employees are digitally enabled and mediated. Core business processes are accomplished through digital networks spanning the entire organization or linking multiple organizations.

Business processes = the set of logically related tasks and behaviours that organizations develop over time to produce specific business results and the unique manner in which these activities are organized and coordinated.

Within a digital firm; - Time shifting à business being conducted continuously, 24/7, rather than in narrow ‘work day’. - Space shifting à work takes place in a global workshop as well as within national boundaries. Work is accomplished physically wherever in the world it is best accomplished.

Information technologies = consists of hardware and software that a firm needs to achieve its business objectives.

  1. Computer hardware o The physical equipment used for input, processing, and output activities in an information system.
  2. Computer software o The detailed, pre-programmed instructions that control and coordinate the computer hardware components in an information system.
  3. Data management technology o The software governing the organization of data on physical storage media.
  4. Networking and telecommunications technology o Consists of both physical devise and software, links the various pieces of hardware and transfers data from one physical location to another. § A network = links two or more computers to share data or resources, such as a printer. Intranets à internal corporate networks based on internet technology Extranets à private intranets extended to authorized users outside the organization. World Wide Web à a service provided by the internet that uses universally accepted standard for storing, retrieving, formatting, and displaying information in a page format on the internet.

Information = data have been shaped into a form that is meaningful and useful to human beings.

Data = streams of raw facts representing events occurring in organizations or the physical environment begore they have been organized and arranged into a form that people can understand and use it.

All these technologies, along with the people, represent resources that can be shared throughout the organization and constitute the firm’s organization technology infrastructure.

The internet: - Allows businesses to buy, sell, advertise, and solicit customer feedback online. - Stimulated globalization by dramatically reducing the costs of producing, buying and selling goods on a global scale.

Information systems = the foundation of fast-paced supply chains.

From a technical perspective: à an information system collects, stores, and disseminates information from an organization’s environment and internal operations to support organizational functions and decision making, communication, coordination, control, analysis, and visualization.

Information systems transform raw data into useful information through 3 basic activities: - Input = captures/collects raw data from within the organization or from its external environment. - Processing = converts raw input into a meaningful form. - Output = transfers the processed information to the people who will use it or to the activities for which it will be used.

From a business perspective: à an information system provides a solution to a problem or challenge facing a firm and represents a combination of management, organization, and technology elements. 1. Management dimension à involves issues such as leadership, strategy, and management behaviour. 2. Technology dimension à computer hardware, software, data management behaviour. 3. Organization dimension à involves issues such as organization’s hierarchy, functional specialities, business process, culture, and political interest groups.

Obtain value from information systems? à organizations must support their technology investments with appropriate complementary investments in organizations and managements. Complementary investments are; o New business models and business processes o Supportive organizational culture and management behaviour o Technology standards, regulations and laws.

§ Management Business impacts of systems: o Psychology o Sociology o Economics Sociotechnical view of systems: o Consider both technical and social features and solutions that represent the best fit between them

Chapter 2

Transaction processing systems (TPS) à keep track of the elementary activities and transactions of the organization, such as sales, receipts, cash deposits, payroll, credit decisions, and the flow of materials in a factory.

= a computerized system that performs and records the daily routine transactions necessary to conduct business, such as sales order entry, hotel reservations, payroll, employee record keeping, and shipping.

Managers need TPS to monitor the status of internal operations and the firm’s relations with the external environment.

TPS are often so central to a business that TPS failure for a few hours can lead to a firm’s demise and perhaps that of other firms linked to it.

Business intelligence s ystems Business intelligence = a contemporary term for data and software tools for organizing, analysing and providing access to data to help managers and other enterprise users make more informed decisions.

It addresses the decision-making needs of all levels of management. For middle management, it helps monitoring, controlling, decision-making, and administrative activities.

Management information systems (MIS) = provide middle managers with reports on the organization’s current performance. Information is used to monitor and control the business and predict future performance.

Decision-support systems (DSS) = focus on problems that are unique and rapidly changing, for which the procedure for arriving at a solution may not be fully predefined in advance. Uses internal information from TPS and MIS and bring external information such as current stock prices or product prices of competitors.

Executive support systems (ESS) = address nonroutine decisions requiring judgement, evaluation, and insight because there is no agreed-on procedure for arriving at a solution.

Challenge is to let systems ‘talk’ to each other, can happen through enterprise applications. =systems that span functional areas, focus on executing business processes across the firm, and include all levels of management.

4 major enterprise applications: 1. Enterprise systems, also known as enterprise resource planning (ERP) à to integrate business processes in manufacturing and production, finance, and accounting, sales and marketing, and HR into a single software system. 2. Supply chain management systems (SCM) à help manage relationships with suppliers. A type of interorganizational system as they automate the flow of information across organizational boundaries. 3. Customer relationship management systems (CRM) à help manage relationships with customers. Provide information to coordinate all of the business processes that deal with customers in sales, marketing etc. 4. Knowledge management systems (KMS) à enables organizations to better manage processes for capturing and applying knowledge and expertise.

E-business = use of digital technology and the internet to execute the major business processes in the enterprise. Includes; internal activities, coordination with suppliers, e- commerce.

E-commerce = deals with buying and selling of goods and services over the internet.

E-government = the application of the internet and networking technologies to digitally enable government and public sector agencies’ relationships with citizens, businesses, and other arms of government.

Collaboration = working with others to achieve shared and explicit goals. Why important? 1. Changing nature of work 2. Growth of professional work 3. Changing organization of the firm 4. Changing scope of the firm 5. Emphasis on innovation 6. Changing culture of work and business

Business benefits of collaboration and social business: 1. Productivity 2. Quality 3. Innovation 4. Customer service 5. Financial performance (profitability, sales, and sales growth)

Specific principles for conduct to guide ethical decisions? - Golden rule = do unto others as you would have them do unto you. - Immanuel kant’s categorical imperative = if an action is not right for everyone to take, it is not right to take at all. - Slippery slope = if an action cannot be taken repeatedly, it is not right to take at all. - Utilarian principles = take the action that achieves the higher or greater value. - Risk aversion principle = take the action that produces the least harm or the least potential cost. - Ethical no-free lunch rule = assume that virtually all tangible and intangible objects are owned by someone else unless there is a specific declaration otherwise.

Why do contemporary information systems technology and the internet pose challenges to the protection of individual privacy and intellectual property?

Contemporary data storage and data analysis technology enable companies to gather personal data from many sources easily about individuals and analyze these data to create detailed digital profiles about individuals and their behaviors. Data flowing over the Internet can be monitored at many points. Cookies and other web monitoring tools closely track the activities of website visitors. Not all websites have strong privacy protection policies, and they do not always allow for informed consent regarding the use of personal information. Traditional copyright laws are insufficient to protect against software piracy because digital material can be copied so easily and transmitted to many locations simultaneously over the Internet.

How have information systems affected laws for establishing accountability and liability and the quality of everyday life?

New information technologies are challenging existing liability laws and social practices for holding individuals and institutions accountable for harm done to others. Although computer systems have been sources of efficiency and wealth, they have some negative impacts. Computer errors can cause serious harm to individuals and organizations. Poor data quality is also responsible for disruptions and losses for businesses. Jobs can be lost when computers replace workers or tasks become unnecessary in reengineered business processes. The ability to own and use a computer may be exacerbating socioeconomic disparities among different racial groups and social classes. Widespread use of computers increases opportunities for computer crime and computer abuse. Computers can also create health and cognitive problems such as repetitive stress injury, computer vision syndrome, and the inability to think clearly and perform complex tasks.

Chapter 5 IT infrastructure consists of a set of physical devices and software applications that are required to operate the entire enterprise à also a set of firmwide services

5 stages of evolution IT infrastructure 1. General-purpose mainframe and minicomputer computing 2. Personal computers 3. Client/server networks 4. Enterprise computing 5. Cloud and mobile computing

Cloud computing (2000 to present) Provides access to a shared pool of computing resources over the network, often the Internet

Technology drivers of infrastructure evolution 1. Moore’s Law; 2. The law of mass digital storage; the amount of digital information is roughly doubling every year 3. Metcalfe’s law and network; increasing returns to scale à entire system grows exponentially 4. decline in costs of communication and the exponential growth in the size of Internet 5. Standards and network effects à technology standards are specifications that establish the compatibility of products and the ability to communicate in a network

Internet platforms Include hardware, software, and management services to support a firm’s website, including web hosting services, routes, and cabling or wireless equipment

Web hosting service Maintains a large web server, or series of servers and provides fee-paying subscribes with space to maintain their websites

Legacy systems are generally older transaction processing systems created for mainframe computers that continue to be used to avoid the high costs of replacing or redesigning them

Current trends in computer hardware platforms: § The mobile digital platform § Consumerization of IT and BYOD = bring your own device = 1 aspect of the consumerization of IT ; consumerization = is forcing businesses to rethink the way they obtain and manage information technology equipment and services § Quantum Computing; uses the principles of quantum physics to represent data and perform operations on these data

Dealing with platform and infrastructure change Scalability refers to the ability of a computer, product, or system to expand to serve a large numbers of users without breaking down

Total cost of ownership (TCO) Model can be used to analyse direct and indirect costs to help firms determine the actual cost of specific technology implementations

Competitive Forces Model for IT infrastructure Investment 6 factors § Market demand for your firm’s services § Your firm’s business strategy § Your firm’s IT strategy, infrastructure and costs § Information technology assessment § Competitor firm services § Competitor firm IT infrastructure investments

Chapter 6: foundations of business intelligence: databases and information management

1. Problems of managing data resources in the traditional file environment.

1 File organization terms and concepts A computer system = organizes data in hierarchy that starts with bits and bytes and progresses field, records, files and databases.

A bit = the smallest unit of data a computer can handle. A byte = a group of bits, representing a single character, which can be a letter, a number, or another symbol Field = a grouping of characters into a word, a group of words, or a complete number.

Record = a group of related fields such a s student’s name or the course taken. A record describes an entity. File = a group of records of the same type. Entity = a person, place, thing, or event on which we store and maintain information Attribute = each characteristics or quality describing a particular entity.

1 Problems with traditional file environment

  • Data redundancy and inconstancy à data redundancy = the presence of duplicate data in multiple data files so that the same data are stored in more than one place or location. Occurs when different groups in an organization independently collect the same piece of data and store it independently of each other. à Data inconsistency =the same attribute may have different values and is caused by data redundancy as data redundancy wastes storage resources.

  • Program-data dependence à refers to the coupling of data stored in files and the specific programs required to update and maintain those files such that changes in programs require changes to the data.

  • Lack of flexibility à a traditional file system can deliver routine scheduled reports however cannot deliver ad hoc reports or respond to unanticipated information requirements in a timely fashion.

  • Poor security à b ecause there is little to no control or management of data, access to and dissemination of information may be out of control.

  • Lack of data sharing and availability

Distributed database = is stored in multiple physical locations. Parts or copies of the database are physically stored in one location and other parts or copies are maintained in other locations.

Blockchain = a distributed database technology that enables firms and organizations to create and verify transactions on a network nearly instantaneously without central authority. à stores transactions as a distributed ledger among a network of computers. à information in the database is continually reconciled by the computers in the network.

Benefits of blockchain: - Reduce costs of verifying users, - validate transactions and risks of storing and - processing transaction information across thousands of firms. - of fers simplicity and security – makes it attractive for storing of financial transactions.

Big data à interest by businesses because; reveal more patterns and interesting relationships.

The challenge of big data: 1. 3 Vs – volume, variety, velocity. Large volume, wide variety of data types and sources and velocity of data processed. 2. To derive business value from data, organizations need new technologies and tools capable of managing and analysing non-traditional data. 3. Capturing, storing, and analysing b ig data can be expensive.

Business intelligence infrastructure: Tools to obtain useful information from all different types of data: - Data warehouse à database that stores current and historical data of potential interest to decision makers throughout the company.

  • Data mart à s ubset of data warehouse in which a summarized or highly focused portion of the organizations data is placed in a separate database for a specific population of users.

  • Hadoop à handles unstructured, semi- structured and structured data in vast quantities. Enables distributed parallel processing of huge amounts of data across inexpensive computers.

  • In-memory computing à users data is stored in primary memory of the system, elimination bottlenecks from retrieving and reading data in a traditional, disk-based database and shortening query response time.

  • Analytic platforms à high speed platform using relational and non-relational technology that are optimized for analysing large data sets.

Analytical tools - OLAP = online analytical processing à supports multidimensional data analysis, enabling users to view the same data in different ways using multiple dimensions. e. use OLAP to determine how many washers were sold in the East in June, how that compares with previous months, and how it compares to sales forecast.

  • Data mining à provides insights into corporate data that cannot be obtained with OLAP. It finds patterns and relationships in large databases and inferring rules from them to predict future behaviour.

Types of information obtainable from data mining; o Associations o Sequences o Classifications o Clustering o Forecasting

  • Text mining à extract key elements from unstructured natural language text, discover patterns and relationships, and summarise the information.

  • Web mining à discovers and analyses useful patterns and information from the world wide web. à helps understand customer behaviour, evaluate effectiveness of a particular website, quantify the success of a marketing campaign.

Why are information policy, data administration and data quality assurance essential for managing the firm’s data resources?

Information policy = specifies an organizations rules of sharing, disseminating, acquiring, standardizing, classifying, and inventorying information. à lays out specific procedures and accountabilities, identifies which users and organizational units can share information, and who is responsible for updating and maintaining information.

Data administration = responsible for the specific policies and procedures through which data can be managed as an organizational resource.

Types of network à local area networks (LAN) à peer-to-peer architecture; a peer-to-peer network treats all processors equally and is used primarily in small networks with ten or fewer users àwide area networks (WANs) span broad geographical discances – regions, states, continents or the entire globe ; metropolitan are network (MAN); is a network that spans a metropolitan are, usually a city and its major sububs

Internet world’s most extensive public communication system

Virtual private networks Lower-cost solution Create a virtual private network within the public internet

Search engine optimization (SEO) Is the process of improving the quality and volume of web traffic to a website by employing a series of techniques that help a website achieve a higher ranking with the major search engines when certain keywords and phrases are put into the search field

Future web à Internet of things And is based on billions of internet-connected sensors throughout our physical world

Radio frequency identification (RFID) systems provide a powerful technology for tracking the movement of goods throughout the supply chain

Chapter 8 book Digitization – Securing information systems

Technical means to protect systems - Firewalls - Intrusion detection systems

Security refers to the policies, procedures and technical measures used to prevent unauthorized access, alteration, theft of physical damage to information systems.

Controls are methods, policies and organizational procedures that ensure the safety of the organization’s assets, the accuracy and reliability of its record, operational adherence to management standards.

Why are systems vulnerable? They contain precious and/or private (business) information that can fall into the wrong hands. Radiation may disrupt a network at various points.

Internet Large public network, such as the internet, are more vulnerable than internal networks because they are virtually open to anyone.

Vulnerability has increased from widespread use of e-mail, IM and P2P file sharing programs. IM – instant messenger P2P – peer to peer

LAN – local area networks SSID’s – service set identifiers

War drivers – eavesdroppers (afluisteraars) drive by buildings trying to intercept wireless network traffic.

Through the wireless networks, hackers can access resources on that network, who are connected to the network, access their computer hard drives and open or copy their files.

Malware – malicious software programs Examples of malware: - Viruses A computer virus is a rogue software program that attaches itself to other software programs or data files to be executed, usually without the user’s permission. Usually spread by downloading software from the internet. What do they do? Destroying programs or data, clogging computer memory, reformatting hard drives, causing problems running the computer.

  • Worms Independent computer programs that copy themselves from one computer to others over a network. Usually spread by downloading software from the internet.

Drive-by downloads – malware that comes with a downloaded file that a used intentionally or unintentionally requests.

  • Trojan horses Software program that appears to begin to be benign (gentle/kind) but then does something other than expected. It is not a virus itself because it doesn’t replicate, but it opens doors to other malware.

SQL injection attacks – exploit vulnerabilities in poorly coded web application software to introduce malware code into a company’s systems and networks.

Ransomware – malware, that you have to pay to get rid of it à try to extort money of the users by taking over control over their computer.

Spyware – small programs that install themselves on computer to monitor the user activity.

Keyloggers – keyloggers record every keystroke (wat je typt), to find out about serial numbers, credit card numbers, access to email etc.

Evil twins – wireless networks that pretend to offer free and safe wireless internet connection.

Pharming – redirects users to a bogus web page, even when the individual types the correct web page into their browser. Dus je typt anwb en je wordt naar een andere website gelinkt.

When you click on an online advertisement, the advertiser typically earns money due to a pey-per-click online advertising system. Click fraud – when a computer or individual clicks on a link without any intention of learning more about the ad. Companies hire people from low wage countries to click a lot on the competitors to drive up their marketing costs, without actually selling their product.

Global threats: cyber terrorism and cyber warfare

Cyber warfare – state-sponsored activity designed to cripple and defeat another state or nation by penetrating its computers or networks to cause damage or disruption. Russian hackers disruption US elections. Potential targets: military, dams, financial systems, communication networks and even voting systems.

à internal threats: employees Social engineering - malicious intruders seeking system access sometimes trick employees into revealing their passwords by pretending to be legitimate members of the company in need of information.

Bugs – code defects à are major software problems (daarom moet je altijd je apps enzo updaten, omdat de ontwikkelaars ‘bugs’ hebben verbeterd)

Zero-day vulnerabilities - holes in the software unknown to its creator. When hackers find these holes sooner than the creator, shit will happen. It’s called zero-day because the creator has zero days to fix it (as it should be fixed right now).

Als een creator van een softwre programma een fout heeft ontdekt, en dat moet maken, maakt tie eerst small patches to repair the flaws without disturbing the operations of the software. This process is called patch management.

Laws

HIPAA – health insurance portability and accountability act (in the USA). This outlines medical security and privacy rules and procedures for simplifying the administration of healthcare billing and automating the transfer of healthcare data between health care providers, payers and plans.

Gramm-Leach-Bliley Act – financial services modernization act. This act requires financial institutions to ensure the security and confidentiality of customer data.

Sarbanes-Oxley act – public company accounting reform and investor protection act. This act was made to protect investors after financial scandals at Eron, WorldCom and other public companies. In a legal action, a firm is obligated to responds to a discovery request for access information that may be used as evidence, and the company is required by law to product those data.

Computer forensics – the scientific collection, examination, authentication, preservation and analysis of data held on or retrieved from computer storage media in such a way that the information can be used as evidence in a court of law. Ambient data is not visible data for the regular user.

Components of an organizational framework for security and control

General controls - these govern the design, security and use of computer programs, and data security throughout an organization.

Application controls – specific controls to each computerized application. Application controls can be categorized in: 1. Input controls 2. Processing controls 3. Output controls

A risk assessment determines the level of risk to the firm if a specific activity or process is not properly controlled.

After you have identified the main risks, you develop a security policy. Security policy – consists of statements ranking information risks, identifying acceptable security goals and identifying the mechanisms for achieving these goals.

Acceptable use policy (AUP) – defines acceptable used of the firm’s information resources and computing equipment, including desktops, laptops, smart phones etc.

Disaster recovery planning and business continuity planning

Disaster recovery planning – you need to plan for events, such as power outages, floods, earthquakes etc, that prevent your information system and your business from operating. DRP devices plan restoration and recovery of your business (and its disrupted computing and communication services).

Business continuity planning – focuses on how the business can continue and restore business operations after a disaster strike.

Was dit document nuttig?

Samenvatting DIBS boek

Vak: Business and IT (TETB-VTBBVBI-14)

4 Documenten
Studenten deelden 4 documenten in dit vak

Universiteit: Hogeschool Utrecht

Was dit document nuttig?
Samenvatting DIBS boek
Chapter 1
Digital firm
= one in which nearly all the organizations’ significant business relationships with
customers, suppliers, and employees are digitally enabled and mediated. Core business
processes are accomplished through digital networks spanning the entire organization or
linking multiple organizations.
Business processes
= the set of logically related tasks and behaviours that organizations develop over time to
produce specific business results and the unique manner in which these activities are
organized and coordinated.
Within a digital firm;
- Time shifting à business being conducted continuously, 24/7, rather than in
narrow ‘work day’.
- Space shifting à work takes place in a global workshop as well as within national
boundaries. Work is accomplished physically wherever in the world it is best
accomplished.
Information technologies
= consists of hardware and software that a firm needs to achieve its business objectives.
1. Computer hardware
o The physical equipment used for input, processing, and output activities in
an information system.
2. Computer software
o The detailed, pre-programmed instructions that control and coordinate the
computer hardware components in an information system.
3. Data management technology
o The software governing the organization of data on physical storage media.
4. Networking and telecommunications technology
o Consists of both physical devise and software, links the various pieces of
hardware and transfers data from one physical location to another.
§ A network = links two or more computers to share data or
resources, such as a printer.
Intranets à internal corporate networks based on internet technology
Extranets à private intranets extended to authorized users outside the organization.
World Wide Web à a service provided by the internet that uses universally accepted
standard for storing, retrieving, formatting, and displaying information in a page format
on the internet.
Information = data have been shaped into a form that is meaningful and useful to
human beings.