MSYS Midterms

Information Technology (IT)

consists of all hardware and software that a firm needs to perform business operations

Systems

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

collects

Information System

made up of data

Data

raw facts

Information

processed & organized facts that have value

Knowledge

The awareness and understanding of a set of information and the ways that information can be made useful

Input

goes into the process

Process

A series of logical actions or tasks taken to achieve an outcome

Output

what comes out of process

Feedback

items/concepts that serve as input to processes of the system in order to adapt or improve

Control

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

Programmer

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

Organization

stable

Organization

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

unassailable

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

Adhocracy

large group of specialists

weak central management

PADIM

*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

Values

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

receiving

Operations

transforming inputs into the final product form

Outbound Logistics

collecting

Marketing and Sales

providing a means by which buyers can purchase the product and inducing them to do so

Service

installation

Support Activities

*Procurement *Technology Development *Human Resource Management *Firm Infrastructure

Procurement

function of purchasing inputs used in the firm's value chain - such as raw materials

Technology Development

know-how

Human Resource Management

recruiting

Firm Infrastructure

general management

SWOT Analysis

Helps in understanding the Strengths Weaknesses (Internal) & Opportunities Threats (External)

Strengths

*What does the company do well *What advantages does a company have? *What do you do better than anyone else?

Weakness

*What can the company improve on? *What should be avoided?

Opportunities

*What can the company benefit from? *What trends can you take advantage of?

Threats

*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)

telecommunications

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

mainframe

*in 1952

can do very large/ complicated tasks

minicomputers

*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

*portable

smartphone

*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

client

*PC/s are networked and connected to servers

server

*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

TCP/IP

*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

data

*text

connecting to the computer system

*interfaces *directly to the motherboard *usb

storage

*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

wireless

*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

motherboard

*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

virtualization

*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

software

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

SQL

*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?

time

*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.

bit

binary digit

byte

eight bits and represents a single character (e.g. a letter

field

group of logically related characters (e.g. a word

record

group of logically related fields (e.g. student in a university database)

file

group of logically related records

database

group of logically related files

database

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

hierarchical

all records are dependent and arranged in a multi-level structure

one-to-many relationship

network

data can be accessed by any methods

many-to-many relationship

relational

*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

selecting

eliminates rows according to certain criteria and creates sub-records using that criteria

projecting

eliminates columns in a table

joining

combines two or more tables

linking

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

query

request for data from a database

considerations when building DBMS

*content *access *logical structure *organization

content

what data should be collection? cost?

access

who

logical structure

how should data be presented and arranged for end user to make most sense of it?

organization

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

protocol

*set of rules and procedures governing transmission over a network *think language *tcp establishes connection between computers

types of network

*LAN *MAN *WAN

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