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Published by sariah.rajuli, 2022-04-07 20:36:05

LECTURE NOTES CLO1

LECTURE NOTES CLO1

Chapter One
Business Driven Technology

LEARNING OUTCOMES

Describe Describe the information age and the differences between
data, information, business intelligence, and knowledge

Explain Explain systems thinking and how management
information systems enable business communications

Describe Describe the roles of different IT systems to support the
organization objective

COMPETING IN THE INFORMATION AGE

Fact - The confirmation or
validation of an event or object.

In the past, people primarily learned
facts from books. Today, by simply
pushing a button people can find out
anything, from anywhere, at any time

COMPETING IN THE INFORMATION AGE

Information age - The present time,
during which infinite quantities of
facts are widely available to anyone
who can use a computer.

Many business leaders have created
exceptional opportunities by coupling the
power of the information age with
traditional business methods. Here are just
a few examples:

COMPETING IN THE INFORMATION AGE

Examples of the power of All these entrepreneurs were
business and technology business professionals, not
technology experts.
• Amazon – Not a technology However, they understood
company; primary business enough about the
focus is selling books information age to apply it to
a particular business,
• Netflix – Not a technology creating innovative
company; primary business companies that now lead
focus is renting videos entire industries.

• Zappos – Not a technology
company; primary business
focus is selling shoes

COMPETING IN THE INFORMATION AGE

Internet of Things (IoT) - * Find the difference between
A world where IoT and M2M
interconnected Internet-
enabled devices or
“things” have the ability
to collect and share data
without human
intervention

Machine-to-Machine
(M2M) - Refers to devices
that connect directly to
other devices

COMPETING IN THE INFORMATION AGE

The core drivers of the
information age

• Data
• Information
• Business intelligence
• Knowledge

DATA

Data - Raw facts that describe the
characteristics of an event or object.

Structured data has a defined length, type, and
format and includes numbers, dates, or strings such
as customer address. Structured data is typically
stored in a traditional system such as a relational
database or spreadsheet and accounts for about 20
percent of the data that surrounds us.

Unstructured data is not defined and does not
follow a specified format and is typically free-form
text such as emails, Twitter tweets, and text
messages. Unstructured data accounts for about 80
percent of the data that surrounds us

DATA

Big data – A collection of
large, complex data sets,
including structured and
unstructured data, which
cannot be analyzed using
traditional database
methods and tools

• Snapshot – A view of
data at a particular
point in time

Big data
(snapshot of sales data for Tony’s Wholesale

Company)

INFORMATION

Information - Data converted into a meaningful
and useful context.

The simple difference between data and information is that
computers or machines need data and humans need information.

INFORMATION

Report - A document containing data
organized in a table, matrix, or graphical
format allowing users to easily
comprehend and understand information

• Static report - Created once based on data that does
not change.

o Example: a sales report from last year or salary report from

five years ago.

• Dynamic report - Changes automatically during
creation.

o Example: Updating daily stock market prices or the
calculation of available inventory.

INFORMATION

Tony can analyze his sales data and turn them into information.

Sorting the data
reveals the information
that Roberta Cross’s
total sales to Walmart
were $20,243 resulting
in a profit of $5,858.
(Profit $5,858 = Sales $
20,243 − Costs $14,385

BUSINESS INTELLIGENCE

Business intelligence - Information collected from multiple
sources such as suppliers, customers, competitors, partners,
and industries that analyzes patterns, trends, and
relationships for strategic decision making.
BI manipulates multiple variables and in some cases even
hundreds of variables including such items as interest rates,
weather conditions, and even gas prices.
Tony could use BI to analyze internal data such as company
sales, along with external data about the environment such as
competitors, finances, weather, holidays, and even sporting
events.
Both internal and external variables affect snack sales, and
analyzing these variables will help Tony determine ordering
levels and sales forecasts.

BUSINESS INTELLIGENCE

Analytics – The science
of fact-based decision
making

• Descriptive Analytics
• Predictive Analytics
• Prescriptive Analytics

* Find the definition of
each analytic type.

KNOWLEDGE

Knowledge - Skills,
experience, and expertise
coupled with information and
intelligence that creates a
person’s intellectual
resources.

Knowledge worker –
Individual valued for their
ability to interpret and
analyze information.

KNOWLEDGE

Imagine that Tony analyzes his data and finds his weakest
sales representative for this period is Craig Schultz.

If Tony considered only this information, he might conclude
that firing Craig was a good business decision.

However, because Tony knows Craig has been out on
medical leave for several weeks; hence, his sales numbers
are low.

Without this additional knowledge, Tony might have
executed a bad business decision, delivered a negative
message to the other employees, and sent his best sales
representatives out to look for other jobs.

Drivers of Information Age

Using data, information, business intelligence, and
knowledge to make decisions and solve problems is
the key to finding success in business.

These core drivers of the information age are the
building blocks of business systems.

The differences among data, information,
business intelligence, and knowledge

Transformation of Data to Knowledge

THE CHALLENGE:
DEPARTMENTAL COMPANIES

Common Departments Working Independently

THE MIS SOLUTION

Common Departments Working Interdependently

THE MIS SOLUTION

Before jumping into how systems work, it is important to have a solid
understanding of the basic production process for goods and services.

Production is the process where a business takes raw materials and
processes them or converts them into a finished product for its goods or
services.

Production

Productivity is the rate at which goods and services are produced based upon
total output given total inputs.
If a business could produce the same hamburger with less expensive inputs or
more hamburgers with the same inputs it would see a rise in productivity and
possibly an increase in profits.
Ensuring the input, process, and output of goods and services work across all of
the departments of a company is where systems add tremendous value to
overall business productivity.

SYSTEMS THINKING

Systems thinking – A way of monitoring the entire
system by viewing multiple inputs being processed or
transformed to produce outputs while continuously
gathering feedback on each part

SYSTEMS THINKING

Management Information Systems (MIS)
incorporates systems thinking to help
companies operate cross-functionally.

MIS is a business function, like accounting and human resources,
which moves information about people, products, and processes
across the company to facilitate decision-making and problem-
solving.

For example, to fulfill product orders, MIS for sales moves a
single customer order across all functional areas including sales,
order fulfillment, shipping, billing, and finally customer service.

INFORMATION TECHNOLOGY MANAGEMENT

Achieving Managing Enhancing Creating Transforming
business Information Business Collaborative Organization
success for Business Decisions Partnerships
through Initiatives in Business
Information
Technology

Achieving business objective through
Information Technology

Business Success =
People + Information
+ Information
Technology

Managing Information for business initiatives

Business initiatives are typically internal campaigns that seek to improve an
organization's work environment, company culture or overall business
strategy. Example, upper management start "employee morale boost"
initiative to increase the team's happiness at work.

Managing Information with a Database and Database Management
System (DBMS)

Enhancing business decisions

Activities, Information, and Information Technology within an
Organization

Creating collaborative partnership in business

Teams, Partnerships, and Alliances within and External to an
Organization

Transforming organizations

Traditional Business Changed by Internet Enabled Competition

MIS DEPARTMENT
ROLES AND RESPONSIBILITIES

Chief information officer (CIO) –
Oversees all uses of MIS and ensures
the strategic alignment of MIS with
business goals and objectives

Chief knowledge officer (CKO) -
Responsible for collecting,
maintaining, and distributing the
organization’s knowledge

Chief privacy officer (CPO) –
Responsible for ensuring the ethical
and legal use of information

MIS DEPARTMENT
ROLES AND RESPONSIBILITIES

Chief security officer (CSO) – Responsible for ensuring the
security of MIS systems

Chief technology officer (CTO) – Responsible for ensuring the
throughput, speed, accuracy, availability, and reliability of
information technology

• Chief intellectual property officer
• Chief automation officer
• Chief user experience officer

MIS DEPARTMENT
ROLES AND RESPONSIBILITIES

MIS DEPARTMENT
ROLES AND RESPONSIBILITIES – LONG DESCRIPTION

The various members of the MIS department include the CSO,
CTO, CPO, CIO, and CKO. The CIO oversees all uses of IT and
ensures the strategic alignment of IT with business goals and
objectives. CTOs are similar to CIOs, except CIOs take on the
additional responsibility for effectiveness of ensuring that IT is
aligned with the organization's strategic initiatives. CTOs ensure
the efficiency of IT. CPOs are the newest senior executive
position, and many CPOs are lawyers by training. CKO is one of
the most recent positions added to the executive leadership
team.

INFORMATION ETHICS

Ethics – The principles and standards that guide our
behavior toward other people

Information ethics – Govern the ethical and moral
issues arising from the development and use of
information technologies, as well as the creation,
collection, duplication, distribution, and processing of
information itself

INFORMATION ETHICS

Business issues related to information ethics

• Intellectual property
• Copyright
• Pirated software
• Counterfeit software
• Digital rights management

INFORMATION ETHICS

Privacy is a major ethical issue

• Privacy – The right to be left
alone when you want to be, to
have control over your own
personal possessions, and not to
be observed without your
consent

• Confidentiality – the assurance
that messages and information
are available only to those who
are authorized to view them

INFORMATION ETHICS

Individuals form the only ethical component of MIS

• Individuals copy, use , and distribute software

• Search organizational databases for sensitive and
personal information

• Individuals create and spread viruses

• Individuals hack into computer systems to steal
information

• Employees destroy and steal information

INFORMATION ETHICS

Acting ethically and legally are not always the same

INFORMATION DOES NOT HAVE ETHICS, PEOPLE DO

Information does not care how it is used, it will not stop
itself from sending spam, viruses, or highly-sensitive
information

Tools to prevent information misuse

• Information management
• Information governance
• Information compliance
• Information Secrecy
• Information Property

INFORMATION SECURITY

Organizational information is intellectual capital - it must be
protected

Information security – The protection of information from
accidental or intentional misuse by persons inside or outside an
organization

Downtime – Refers to a period of time when a system is
unavailable

SECURITY THREATS CAUSED BY HACKERS
AND VIRUSES

Hacker – Experts in technology who use their knowledge
to break into computers and computer networks,
either for profit or just motivated by the challenge

• Black-hat hacker
• Cracker
• Cyberterrorist
• Hactivist
• Script kiddies or script bunnies
• White-hat hacker

SECURITY THREATS CAUSED BY HACKERS
AND VIRUSES

Virus - Software written with malicious intent to cause
annoyance or damage

• Backdoor program
• Denial-of-service attack (DoS)
• Distributed denial-of-service attack (DDoS)
• Polymorphic virus
• Trojan-horse virus
• Worm

SECURITY THREATS CAUSED BY HACKERS
AND VIRUSES

How Computer Viruses Spread

SECURITY THREATS CAUSED BY HACKERS
AND VIRUSES

Security threats to e-Business include

Elevation of privilege

• The process by which a user obtain a higher level of
privilege than that for which he has been authorized.

• To enter organization’s IT infrastructure and seek
permission to steal sensitive data, disrupt operations
and create backdoor for future attacks.

• For example: An attacker with a privilege set of “read
only” permission somehow elevates the set to include
“read and write”.

Hoaxes

• Hoax is a false warning about computer virus

SECURITY THREATS CAUSED BY HACKERS
AND VIRUSES

Security threats to e-Business include

Hoaxes

• Hoax is a false warning about computer virus

• Typically, the warning arrives in an email note or
distributed through a note in company internal network

• If someone gets a message warning about a new virus,
they can check it out by going to one of the leading
websites that keep up with virus and computer virus
hoax

• For example, Black in the White House and Goodtimes

SECURITY THREATS CAUSED BY HACKERS
AND VIRUSES

Security threats to e-Business include

Malicious code

• Malicious code is the term used to describe any code in
any part of a software system or script that is intended
to cause undesired effects, security breaches or damage
to a system.

• An application security threat that cannot be efficiently
controlled by conventional antivirus software alone.

• Targeted malicious code threats are hidden in software
and mask their presence to evade detection by
traditional security technologies.

• Eg: Trojan horses, Worms, Spyware

SECURITY THREATS CAUSED BY HACKERS
AND VIRUSES

Security threats to e-Business include

Packet tampering

• Consists of altering the contents of packets as they travel
over the Internet or altering data on network

• For example, an attacker might place a tap on a network
line to intercept packets as they leave the computer.

• The attacker could eavesdrop or alters the information
as it leaves the network.


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