Terminology and Most Important Things Flashcards
Six major objectives of IS
- operational excellence
- new products, services, and business models
- customer/supplier intimacy
- improved decision making
- competitive advantage
- (day-to-day) survival
Information Systems
technical perspective, an IS collects, stores, and distributes information from an organization’s environment to support organisational functions, decision making, communication, coordination, control, analysis, and visualisation
technical approach to IS
computer science, management science, operations research
behavioral approach to IS
psychology, sociology, economics
sociotechnical view of systems
considers both technical and social features of a system
What is new in managing IS?
- IT innovations (IoT, cloud computing, big data, etc.)
- New Business Models (e.g. Netflix)
- E-commerce expansion
- Management changes (going mobile, remote, etc.)
- Changes in firms (less hierarchy, flattened)
Generative AI
a type of AI that can create new content and ideas, including conversations, stories, images, videos, and music
- information output can be incorrect even though it sounds correct called: hallucinating
- danger of Deepfakes
Globalization
- jobs move across borders
- IS expanding rapidly
- customers shop worldwide
Digital Firm
- nearly all important business operations and relationship are accomplished digitally or through digital networks
Six major objectives of IS
- operational excellency
- new products, services, business models
- customer/supplier intimacy
- improved decision making
- competitive advantage
- (day to day) survival
Functions of an IS
- input (collects raw data)
- processing (make raw data into usable information)
- output (distribute meaningful information)
What are the three management levels of an organisation?
- Senior management (makes executive decisions, makes long-term strategic decisions)
- Middle management (execute tasks and goals -> reduced through IS)
- Operational management (execution of day-to-day operations such as f.e. payroll)
Business process
- logically related set of activities
- IS automate parts of business processes
Transaction processing system (TPS)
- serves operational management
- track the flow of daily tasks/routines
- payroll etc.
Management Information Systems (MIS)
- serves middle management
- produces reports based on TPS
- have little analytical value
Decision-support system (DSS)
- support management decision making
- use internal information from TPS & MIS
Executive support system (ESS)
- serves senior management
- shows data, information via digital dashboard
Enterprise applications
- coordinate multiple functions and business processes
- integrate key business processes into a single software
- SCM, CRM, KMS
Supply chain management (SCM)
- helps firms manage relationship w suppliers to optimise, sourcing, manufacturing, and delivery
Customer relationship management (CRM)
- coordinate business processes to surrounding firm’s customers
Knowledge management system
- enables firms to optimise the creation, sharing, and distribution of knowledge
Collaboration
working with others to achieve shared and explicit goals
- often receive better result than when done alone (wisdom of crowds)
Social business
is the use of internal and external social networking platforms to further engage employees, customers, and suppliers
Business Intelligence (BI)
term for for data and software tools for organising, analysing, and providing access to data to help decision making
Time/Space collaboration and social tool matrix
- same time/same place: face-to-face interactions
- same time/different place: remote interactions (video calls)
- different time/same place: continuous task (project management)
- different time/different place: communication & coordination (e-mails)
IS and organisations influence each other through
- environment
- culture
- structure
- business processes
- politics
- management decisions
Technical microeconomic view of the organization
- social structure that processes resources from the environment to produce outputs
- how inputs are combined to create outputs
Behavioral view of the organization
- emphasizes people, relationships, values, culture
- basically the environment
Disruptive technologies
sweeps away the systems or habits it replaces because it has attributes that are recognizably superior
- streaming over purchasing f.e.
Flattening Organizations
- IS can reduce the number of levels (management levels)
- providing managers with information to supervise larger number of employees
- giving lower-level employees more decision-making authority
Resistance to change/organizational resistance
- if implementation of IS fails, it is often not the technology but the resistance to change organisationally or politically
Porter’s Competitive Five Forces Model
strategic position of the firm is not only determined by it’s immediate
- competitors
but also
- Substitute products
- new-market entrants
- suppliers
- customers
Strategies for dealing with the five forces (Porter)
- Low Cost leadership (lower price than competitor: LIDL)
- Product Differentiation (Tesla; innovative, electric cars)
- Focus on niche market (making food products vegan)
- Strengthen customer-supplier intimacy
Value chain model
Primary and support activities of a firm along the value chain
- suppliers’ suppliers
- suppliers
- firm
- distributors
- customers
Ethics
principles of right and wrong
- core values integrated into corporate culture at best
- IS raise new ethical questions
Five moral dimensions
- information rights and obligations
- property rights and obligations
- system quality
- quality of life
- accountability and control
Technology trends that raise ethical issues
- computing power doubles every 18 months (Moore’s Law)
- data storage costs rapidly decline; more data available on you (Law of Mass Digital Storage)
- mobile device tracking
Advances in data analysis techniques
- profiling: combine data from multiple sources to create detailed information
- NORA (non-obvious relationship awareness): combining data from different sources to find obscure, non-obvious relationships (applicant shares same phone number as known criminal)
Basic concepts of ethical IS
- Responsibility (accept costs, duties, obligations)
- Accountability (who is responsible)
- Liability (cover damages done)
- Due process (law applied correctly)
5 step ethical analysis
a. identify and clearly describe the facts (who is involved, what do they do)
b. define the conflict or dilemma and identify the higher order values
c. identify the stakeholders
d. identify the options that you can reasonably take
e. identify the potential consequences of your options
Golden rule
do unto others as you would have them do unto you
Immanuel Kant’s categorical imperative
if an action is not good for everyone, it is not good for anyone
Slippery slope rule
if an action cannot be done repeatedly it should be done at all
Utilitarian principle
always strive for the action that generates the highest value outcome
Risk aversion principle
take the action that produces the least harm
Ethical “no free lunch” rule
assume that virtually all tangible and intangible objects are owned by someone unless there is a specific declaration otherwise
IT infrastructure
- includes hardware, software, and services
- shared technology resources
Five stages of IT infrastructure evolution
- mainframe/mini computing era (1959)
- personal computer era (1981)
- client/server era (1983)
- enterprise computing era (1991)
- cloud and mobile computing era (2000)
Moore’s Law
- increase in processing power and decline of cost
- every 18 months the power of microprocessors doubles and the price of computing falls in half
- still applicable but not really accurate
Law of Mass Digital Storage
- exponential decrease in the cost of storing data
Metcalfe’s Law
a network’s value to participants grows exponentially as the network takes on more members
IT Infrastructure ecosystem/components
- Data Management and Storage
- Internet Platforms
- Computer Hardware Platforms
- Operating System Platforms
- Enterprise Software Applications
- Networking/Telecommunications
- Consultants and Sytem Integrators
Current trends in computer hardware platforms
- mobile digital platform
- customization and BYOD (IT devices/trends emerge within consumer first and the firm has to adapt, as the employee uses their own device)
- quantum computing (uses quantum mechanics)
- cloud computing
- edge computing
Total cost of ownership (TCO)
- total cost of a product during its lifecycle
Traditional file management
- makes it difficult for organizations to keep track of all pieces of data as different areas and groups were allowed to develop their own file independently
Traditional file management creates problems such as
- data redundancy
- data inconsistency
- program dependence
- poor flexibility
- poor security
- lack of data sharing and availability
DBMS (database management system)
- permits centralisation of data
- combats problems of traditional file management
Data hierarchy
Bit - Byte - Field - Record - File - Database
Relational DBMS
type of logical database that organises data in form of 2-dimensional tables
SQL (Structured Query Language)
SQL is used to add, change, and retrieve data in the database
Non-relational DBMS
(no SQL)
- use a more flexible data model and are designed for managing large data sets across many distributed machines and for easily scaling up and down
Data warehouses (BI Infrastructure)
- database that stores current & historical data of potential interest
Data Marts (BI Infrastructure)
- subset of Data Warehouses, decentralised warehouses with highly focused portion of the data for specific populations of users
Hadoop (BI Infrastructure)
used for big data and big quantities
- in-memory computing, used for Big Data Analysis
Analytic Platforms (BI Infrastructure)
high speed, good for large data sets
Analytical Tools for BI
- Online Application Processing (OLAP)
- Data Mining (discover in data)
- Text Mining (analyse texts/trusted computing)
- Web mining (analyse WWW)
Network
two or more connected computers
Client/server computing
model for computing that splits processing between clients and servers on a network, assigning functions to the machine most able to perform the function
Packet switching
data are grouped into small packets, which are transmitted along different communication channels and reassembled at their final destination
- used to optimise the channel capacity
TCP (Transmission Control Protocol)/IP (internet protocol) reference model
- Application layer
- Transport layer
- Internet layer
- Network Interface layer
Types of Networks
- LAN (local area network: up to 500m)
- CAN (campus area network: up to 1,000 meters)
- MAN (Metropolitan area network: city or metropolitan area)
- WAN (wide area network: regional, transcontinental, or global area)
What is often used for high-capacity Internet connections
- DSL (digital subscriber line)
- cable internet connections
- T1 lines (twisted copper)
DNS (domain name system)
converts domain names into IP addresses
VPN (virtual private networks)
secure, encrypted, private network within the Internet
Hypertext
- webpages are based on HTML (hypertext markup language), which formats documents and incorporates dynamic links
Types of Search
- Mobile search (from smartphone)
- Semantic search (understanding the meaning behind words)
- Social search (related to social media)
- Visual search (for visual media)
Radio Frequency Identification (RFID)
- using low-powered radio transmitters to read data stored in a tag
Digital data are vulnerable to
- destruction
- misuse
- error
- fraud
- hardware & software failure
Denial-of-Service Attacks (DoS)
- attacks that make systems inaccessible or render them out of operation
- bombarding a server with so many requests that the system can no longer function as intended
Types of Malware (malicious software)
- computer virus (software program that attaches itself to other programs or data files to be executed)
- worms (independent programs that copy themselves from one computer to another)
- trojan horse (seemingly benign software programs that do unexpected things)
- spyware (small programs that install themselves to monitor activity)
- ransomware (tries to exert money from user by taking control of computer)
- keyloggers (record every keystroke made on computer to steal personal data)
- drive-by-downloads: malware that comes with a dowloaded file
Types of Computer crime
- spoofing (hacker hides identity)
- sniffing (eavesdropping program)
- identity theft
- phishing (setting up fake website or e-mail that looks real to obtain personal information)
- evil twins (wireless networks that pretend to offer wi-fi by seeming like the real one)
- pharming (redirects user to a bogus page)
- click fraud (individual or computer program that click on pay-per-click ad or boosts page ranking
Internal threats
- employees (doing security protocols sloppily)
Information system audit
examines the firm’s overall security environment and control governing individual information systems
Tools to safeguard IS
- identity management (IdM): tools for identifying the valid user of the system (password, token, authentication, etc.)
- firewalls: prevent unauthorised users from accessing private networks
- intrusion detection systems (alarm)
- anti-malware software
Encryption
is the process of transforming plain text/data into cipher text that can only be read by sender receiver
- SSL (secure sockets layer) enable client and server computers to manage encryption and decryption
Public key encryption
- a method of encrypting or signing data with two different keys and making one of the keys
- Data encrypted with the public key can only be decrypted with the private key
Digital certificates
- help establish the identity of people or electronic assets
- protect online transactions
Enterprise software
integrated enterprise-wide information systems that coordinate key internal processes of the firm
SCM (supply chain management)
coordinate planning, production, and logistics with suppliers and
- automate information flow among members of the supply chain so they can make better decisions
- includes software for supply chain planning and supply chain execution
- makes supply chain leaner
Types of SCM
- push-based model (build-to-stock) (old one): earlier SCM systems, schedules based on best guesses and demands
- pull-based model (demand-driven): contemporary, web-based, customer orders trigger events in supply chain
Upstream vs Downstream supply chain
- Upstream: from the suppliers to the firm
- Downstream: from the firm to the customers (through distributors, retailers)
The bullwhip effect
minor fluctuations in demand can cause higher fluctuation in supply and overstocking
- info of product demand gets distorted along the supply chain
Global supply chain issues
- greater geographical distances
- different time zones
- different country performance standards & legal requirements
- internet does help manage global complexities
Customer Relationship Management (CRM) systems
integrate and automate customer-facing processes in sales, marketing, and customer service, providing an enterprise-wide view of customers
Types of CRM
- operational CRM (customer facing applications)
- analytical CRM (analysis of customer data to improve business performance)
- social CRM (incorporating social networking technique, internally and externally)
Churn rate
- number of customers who stop purchasing products or services
- indicator of growth or decline
Unique technology features of e-commerce
- ubiquity (meaning common) (everywhere, everyone)
- global reach
- universal standards
- richness (supports video, audio, and text messages)
- interactivity
- information density
- personalization/customization
- social technology
Benefits of digital markets
- more transparent than traditional markets
- reduced information asymmetry
- lower search cost, transaction costs, and menu costs
- the ability to change prices dynamically based on market conditions
- foster market segmentation
- stronger network effects
Major types of E-Commerce
- B2C (e.g. any online store)
- B2B (e.g. Slack)
- C2C (e.g. eBay)
principal e-commerce revenue models are
- advertising
- sales
- subscription
- free/fremium (free services for basic services but charging for ‘premium’)
- transaction fee
- affiliate (websites are paid as ‘affiliates’ for sending their visitors to other sites in return of a referral fee)
Long-tail marketing
- ability to reach a large audience inexpensively
- strategy of targeting a large number of niche markets with a product or service (example rec. on amazon)
Behavioral targeting
- tracking online behaviour of individuals on thousands of websites and within apps
- thus privacy concerns
- programming ad buying
- native advertising
Native advertising
- placing ads within social network/ newsfeed or traditional editorial content , such as newspaper article
M-Commerce’s main areas of growth
- mass market retailing (amazon, eBay, etc.)
- sales of digital content (music, tv, etc.)
- in-app sales to mobile devices
Most important challenges of building e-commerce presence
- developing clear understanding of business objectives
- knowing how to choose the right technology to achieve those goals
E-Commerce presence includes 4 areas
- websites
- social media
- offline media
S-Commerce (social e-commerce)
- shoppers make their purchases within social media platforms
- intrinsically connected with social media marketing
Grand vision and realistic vision of what AI is
- Grand vision: computer hardware and software systems that are as ‘smart’ as humans
- Realistic vision: systems that take data inputs, process them, and produce outputs and that can perform many complex tasks that would be difficult or impossible for humans to perform
Machine Learning
- can identify patterns and relationships in very large data sets without explicit programming although with significant human training
Neural networks
- algorithms loosely based on the processing patterns of the biological brain that can be trained to classify objects into known categories based on data inputs
Deep learning networks
- subset of machine learning
- makes use of neural engine
Genetic algorithms
- problem-solving methods that promote the evolution of solutions to specified programs using the model of living organisms adapting to their environment
Natural Language Processing (NLP)
- enables computers to understand natural language as humans do. Whether the language is spoken or written, natural language processing uses artificial intelligence to take real-world input, process it, and make sense of it in a way a computer can understand (e.g. Siri, Alexa)
Computer vision systems
- Computer vision is a field of artificial intelligence (AI) that enables computers and systems to derive meaningful information from digital images, videos and other visual inputs — and take actions or make recommendations based on that information (e.g. passport control at airports)
Robotics
- design, construction, and operation of machines that can substitute for humans in many factory, office, and home applications (e.g. smart vacuums)
Artificial intelligence
- systems that perform activities that we associate with human thinking, activities such as decision-making, problem solving, learning
Hybrid intelligence
ability to achieve complex goals by combining humans and artificial intelligence, thereby reaching superior results, and continuously learning from each other” (e.g. my bachelor thesis)
