MSYS Midterms

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Information Technology (IT)
consists of all hardware and software that a firm needs to perform business operations
series of interrelated components working together to perform a common goal by accepting inputs and producing outputs in an an organized transformation process
Information System
Information System
made up of data
raw facts
processed & organized facts that have value
The awareness and understanding of a set of information and the ways that information can be made useful
goes into the process
A series of logical actions or tasks taken to achieve an outcome
what comes out of process
items/concepts that serve as input to processes of the system in order to adapt or improve
stop-gap measures to regulate the system
Business Process
a set of activities and transactions that an organization conducts on a regular basis in order to achieve its objectives
3 areas of business
*Transaction Processing System *Decision Support System *Executive Support System
Transaction Processing System (TPS)
computerized system that performs and records the daily transactions needed to conduct business
Decision Support System (DSS)
computerized system that focuses on problems that are unique and rapidly changing
Executive Support Systems (ESS)
helps senior management make decisions & uses DDS
Enterprise Resource Planning (ERP)
helps integrate the different business processes (accounting
technical specialists who create the software
System analysts
elicit information from clients to understand the business needs of the company
Chief Information Officer (CIO)
Senior manger who oversees all uses of IT and ensures the strategic alignment of IT with business goals and objectives
Chief Security Officer (CSO)
Responsible for ensuring the security of IT systems
Chief Privacy Officer (CPO)
Responsible for the data policies of an organization
End-users (business-users)
people that make use of the IT resources in an org
Major Roles in an Organization
*Supporting Customer Interactions *Collaborating on Teams *Improving Individual Productivity *Making Decisions *Managing Operations *Gaining Competitive Advantage
Categories of IS based on Organizational Levels
*Enterprise System *Supply Chain Management System *Customer Relationship Management System *Knowledge Management System
Enterprise Systems
internal business processes compressed into a single software system to create a seamless flow of information throughout organization
Supply Chain Management Systems
to produce efficiency when sourcing products
Customer Relationship Management Systems
provides information that aims to satisfy and maintain happy customers
Knowledge Management Systems
collect relevant knowledge and experience and make it accessible to all
Porter's 5 Forces
identifies 5 competitive forces that affects how long a business can remain competitive and profitable
Porter's 5 Forces
*Bargaining power of buyers *Bargaining power of suppliers *Threat of new entrants *Threat of substitute products *Rivalry among competitors
collection of rights
Features of Organizations
*Routines and business processes *Organizational politics *Organization culture *Organization environment *Organization structure
Routines and business processes
develops routines for producing goods and services
Organizational Politics
a variety of activities associated with the use of influence tactics to improve personal or organizational interests
Organization Culture
Organization Environment
where org sources it resources
needs to be scanned due to constant change
Org Structure
*Entrepreneurial Structure *Machine Bureaucracy *Divisionalized Bureaucracy *Professionalized Bureaucracy *Adhocracy
Entrepreneurial Structure
small startups with simple structure
managed by entrepreneur
Machine Bureaucracy
mid-sized bureaucracy that produces products
dominated by central management
Divisionalized Bureaucracy
combination of multiple machine bureaucracies which is centralized by a HQ
Professionalized Bureaucracy
*knowledge-based *usually law firms *weak centralized authority
large group of specialists
weak central management
*Problem *Analyze *Design *Implement *Maintenance
Impacts of an IS
* transaction cost reduction *internal costs reduction *flattens an organization
Organization's aspirations
comprised of mission
Mission Statement
why we exist
indicates key goals and performance objectives
Vision Statement
what future we want to create
ideal end state
what is important to us
Personal Aspirations
personal goal that is enduring and based on deep motivation
Elements of a vision
*Customers *Products / Services *Market *Technology *Survival / Profitability *Philosophy *Self Concept *Public Image *Career for Employees *Nation Building
Primary Activities
*Inbound Logistics *Operations *Outbound Logistics *Marketing and sales *Services
Inbound Logistics
transforming inputs into the final product form
Outbound Logistics
Marketing and Sales
providing a means by which buyers can purchase the product and inducing them to do so
Support Activities
*Procurement *Technology Development *Human Resource Management *Firm Infrastructure
function of purchasing inputs used in the firm's value chain - such as raw materials
Technology Development
Human Resource Management
Firm Infrastructure
general management
SWOT Analysis
Helps in understanding the Strengths Weaknesses (Internal) & Opportunities Threats (External)
*What does the company do well *What advantages does a company have? *What do you do better than anyone else?
*What can the company improve on? *What should be avoided?
*What can the company benefit from? *What trends can you take advantage of?
*What could threaten the company's standing? *What obstacles do you face? *What are your competitors doing? Is changing technology threatening your position?
IT Infrastructure
*a set of physical devices and software applications required to keep a business running *it also includes the set of firmware services budgeted by management and composed of both technical and human capabilities *supports the firm's business and information systems strategy
examples of IT intrastructures
*telecommunications *learning management system (LMS)
ex: globe and smart
learning management system (LMS)
ex: skillshare
evolution of IT infrastructure
*general mainframe and mini computer era (1959) *personal computer era (1981) *client/server era (1983) *enterprise computing era (1993) *cloud and mobile computing (2000)
general mainframe and minicomputer era (1959)
*mainframe: a centralized computer under control of programmers and system operations *maincomputers: powerful machines at lower cost vs IBM mainframes
*in 1952
can do very large/ complicated tasks
*1965 *produced by Digital Equipment Corporation *enabled decentralized computing possible
personal computer era (1981)
*personal computers (PCs) *portable computers
personal computers (PCs)
*in the 1980s and early 1990s *enabled users access to productivity tools such as word processors
examples of portable computers
*handheld computers *laptop computers *notebook computers *netbook computer *tablet computers *smartphone
handheld computers
*single-user computers that provide ease of portability because of their small size
laptop computers
*personal computer designed for use by mobile users
notebook computers
*lightweight computer that weighs less than 5 pounds
netbook computer
*the smallest
tablet computer
*combines the functionality of a mobile phone
types of computers
*personal computers and mobile devices *workstations *servers *mainframes *supercomputers *grid computing
client server era (1983)
*client/server computing *client *server *web/application server
client/server computing
*enables businesses to distribute computing work across a series of smaller
*PC/s are networked and connected to servers
*provides client computers with variety of services and capabilities
web/application server
*a web server will serve a web page to a client in response to a request for service *application server software handles all application operation between a user and organization
enterprise computing (1993)
*TCP/IP *TCP/IP networking
*transformation control protocol/ internet protocol *in 1995
TCP/IP networking
*allowed linking different devices *requires software to link disparate applications and enable free data flow into different parts of the business
cloud and mobile computing (2000)
*cloud computing: refers to a model of computing that provides access to a shared pool of computing resources
Moore's Law and Microprocessing Power
*the power of microprocessors doubles every 18 months *computing power doubles every 18 months *price of computing falls in half every 18 months
Law of Mass Digital Storage
*the amount of digital information is roughly doubling every year *fortunately
Metcalfe's Law and Network Economics
*the value or power of networks grows exponentially as a function of the number of network members *as the number of members in a network grows linearly
Declining Communication Costs and the Internet
as communication costs lower
Standards and Network Effects
technology standards are specifications that establish compatibility of products and ability to communicate in a network
components of IT infrastructure
7 major components of IT infrastructure that must be coordinated with one another to provide the firm with a coherent architecture
components of IT infrastructure
*hardware *i.t services *software *networks *data
computer hardware
*includes servers
physical components of a computer system
*refers to the device/machine involved in an IS function *tangible part of the IT Infrastructure that handles digital data (electronic
hardware components of computer system
*input devices *processing devices
input devices
*used to enter data *a.k.a mouse
microprocessors (CPU and GPU)
*integrated circuitry with millions of transistors. *switch circuits
connecting to the computer system
*interfaces *directly to the motherboard *usb
*random access memory (RAM) *hard drive
random access memory (RAM)
*temporary *stores all data and instructions to be processed *stores processed data
hard drive
*permanent *components: drive (hard drive
*tagged entity *sensor *examples: accelerometers. for sensing movements. *RFID
expansion slot standards
*pci-x *pci *agp *cardbus/pcmcia (for laptops)
communication devices
used to move data between computers
*defines what can be added to your computer system *how many
contemporary hardware trends
*the mobile digital platform *comsumerization of IT and BYOD *nanotechnology and quantum computing *virtualization *cloud computing
the mobile digital platform
*smartphones *tablet computers *eText readers
*software- defined storage (SDS)
cloud computing
*computing resources obtained over the internet *infrastructure as a service (IaaS) *software as a service (SaaS) *platform as a service (PaaS) *public vs. private clouds *utility computing
interface between end users and computer
software terminologies
*operating system *computers for personal use *servers
operating system
*most important system software *role is to load and execute other software *the operating system must be loaded and activated before other tasks can be accomplished
integrated system of programs that
*manages the operations of the CPU *controls the input/ output
computers for personal use
*desktops *laptops and other mobile computers *smartphones *smart appliances
operating system
*is software that manages the functioning of all the other applications after being loaded on a computer *it also acts as an interface for the user *every computer must have at least one OS in order to function *OS platforms such as Windows
enterprise software application
*is a large-scaled software that helps solve the problems of the entire organization *they include software such as middleware
data management
is handled by software and stores and manages in storage devices
*structured query language *used in programming and designed for managing data held in a relational database management system (RDBMS)
traditional storage
*data is stored in computers or servers *you can access it through LAN/ WAN *information is stored on disks that are easy to reformat when needed
cloud storage
*data is stored in third-party servers on the cloud *can be accessed anytime from anywhere by even multiple users at the same time *in case the system is down and the backup provided also fails
networking/telecommunications platforms
*also include Cisco and Juniper
internet platforms
*include hardware
consulting and system integration services
*are used to integrate the legacy system with modern infrastructure *software integration is ensuring that new technology works with the old one (also called legacy system)
legacy system
*older transaction processing systems that continue to be used to avoid cost and effort for replacing
total cost of ownership (TCO) model
used to analyze direct and indirect costs of specific technological implementations
considerations when investing in IT solution
*implementation cost *subscription costs *perpetual license *subscription license *open source
implementation cost
*how much will a firm spend to implement the solution? *can include customization *integration with existing hardware/ software
subscription costs
*how much will we pay to subscribe for a service? *licenses for services like AWS *licenses for operating systems *subscription for cloud-based services
perpetual license
*an upfront sum for the license to own the software and use it in perpetuity *the more traditional model *is most common with on-premise applications
subscription license
*a monthly fee to use the software for a specific amount of time *subscription pricing became popular with the advent of software-as-a-service (SaaS)
open source
*licenses are usually free of charge
types of cost you might encounter
*upfront cost *recurring costs *other costs *additional infrastructure cost *time
upfront cost
how much you pay upon purchasing a software/ service
recurring costs
how much you pay for maintenance
other costs
additional costs that may not be covered by
additional infrastructure cost
*for on-premise solutions *how much would additional hardware cost? *would you need to hire dedicated people for the role?
*how much will the solution cost over a period of several years? *will give the organization and ideas of how much a solution will really cost.
binary digit
eight bits and represents a single character (e.g. a letter
group of logically related characters (e.g. a word
group of logically related fields (e.g. student in a university database)
group of logically related records
group of logically related files
collection of data organized to serve many applications efficiently by centralizing data and controlling redundant data
data hierarchy
*record *file *database
data hierarchy
*each record describes an entity - place
transactional data
*information that is captured from transactions *captured at point of sale
transactional data
records time of transaction
master data
core data that is absolutely essential for running operations within a business enterprise or unit
master data
data about key business entities that provides context for business transactions and operations
traditional file processing
*each application requires a unique datafile *likely to be subset of a master file * can lead to redundancy
data redundancy
presence of duplicate data in multiple files stored in different locations
data inconsistency
instance where the same attribute may have different values
program data dependence
coupling of data stored in files that requires specific programs to update and maintain said files
Database Management Systems (DBMS)
software applications that enable users to manage data more effectively
types of DBMS
*hierarchical *network *relational
all records are dependent and arranged in a multi-level structure
one-to-many relationship
data can be accessed by any methods
many-to-many relationship
*commonly used and allows for ad hoc requests *easier to program & maintain
Relational Database Management
stores and organizes data points that are related to one another
relational database
presents data sets as a collection of tables and provides relational operators to manipulate data in tabular form
relational database
type of database that represents data as two-dimensional tables (called relations)
relational model
*describes data using a standard tabular formal *each rows of a table represents a record *columns of the table represent fields *domain is the range of allowable values for data attributes *links table to another to answer a company need
manipulating data
*selecting *projecting *joining *linking
eliminates rows according to certain criteria and creates sub-records using that criteria
eliminates columns in a table
combines two or more tables
manipulating two or more tables that share at least one common data attribute
capabilities of a DBMS
*data definition *data dictionary *data manipulation language
data definiton
capability to specific a structure of content of database
data dictionary
automated or manual file that stores data elements and their characteristics
data manipulation language
specialized language that is used to add
request for data from a database
considerations when building DBMS
*content *access *logical structure *organization
what data should be collection? cost?
logical structure
how should data be presented and arranged for end user to make most sense of it?
where will the data be stored? onsite or cloud?
network infrastructure
mix of hardware devices
hardware infrastructure
typically includes routers
software infrastructure
includes monitoring and management tools and operating systems
network services
include networking protocols such as TCP
key digital network technologies
*client / server computing *packet switching *protocol
client / serving computing
*distributed computing approach *clients are linked through a network controlled by server computer *processing takes place on server end
packet switching
slicing a digital message into smaller parts / packets
*set of rules and procedures governing transmission over a network *think language *tcp establishes connection between computers
types of network
local area network (LAN)
*connects various network devices in a way that workstations can share program tools and data *a single switch or stack of various switches connects a group of various devices and computers together
metropolitan area network (MAN)
*basically connects two devices (or more) that reside apart but in same or different cities *may serve as an internet service provider (ISP) and basically covers larger geographical alrea
wide area network (WAN)
*network spans to even larger locality *has the capacity to connect various countries together *e.g. ATM machines