The Role of IT in Business Flashcards
T/F: the application of information technology in an organization is the systematic implementation of hardware and software so that data can be transmitted, modified, accessed, and stored both securely and efficiently
True
What is hardware?
the physical components of computers and computer-related accessories; it includes a wide array of internal computer components as well as external peripheral devices
What are networking devices?
it enables connectivity and communication between devices on a computer network; those devices transmit information, or packets, between devices in order to communicate with each other; packets are pieces of data that contain multiple layers of information
What is a modem?
it connects an organization’s network to the internet
What is a router?
it manages network traffic by connecting devices to form a network
What are switches?
they are similar to routers in that they connect and divide devices within a computer network; however, they do not perform as many advanced functions as a router, such as assigning IP addresses
What is a gateway?
a computer or device that acts as an intermediary between different networks; it transforms data from one protocol into another so that information can flow between networks; a protocol is a rule or set of rules that governs the way in which information is transmitted
What are servers?
they are physical or virtual machines that coordinate the computers, programs, and data that are part of the network
What is a firewall?
it is software applications or hardware devices that protect a person’s or a company’s network traffic by filtering it through security protocols with predefined rules
What is the functionality and way in which different network devices support an organization’s IT infrastructure?
internet –> firewall –> modem –> router –> switch –> server –> user
What is software?
it consists of the applications, procedures, or programs that provide instructions for a computer to execute; it is controlled by a user interacting with the program
What are networks?
a group of computers and other machines that are interconnected electronically using a series of networking devices so that one group of users may securely share resources; they can be wired or wireless and use a variety of hardware to enable connectivity
common types of networks are: local area network (LAN), wide-area network (WAN), software-defined wide-area network (SD-WAN), edge-enabled devices, virtual private network (VPN)
What is mobile technology?
it is wireless telecommunication that utilizes radio waves to transmit signals between devices; it moves with users without wires for connectivity, supporting remote work in real time and sustaining businesses that might otherwise collapse during a crisis or a temporary inability to meet in person
an extension of mobile technology is IoT (internet of things) devices, which refers to a class of devices that is powered by a number of mobile technologies such as wifi, bluetooth, and cellular technology to access a larger network
What is a management information system (MIS)?
it enables companies to use data as part of their strategic planning process as well as the tactical execution of that strategy
What are the 3 subsystems of MIS?
accounting information systems (AIS) - it collects, records, and stores accounting information, then compiles that info using accounting rules to report both financial and nonfinancial information to decision makers in an enterprise; they are typically made up of 3 modules: transaction processing system, financial reporting system or general ledger system, and management reporting system; there are 3 main functions: collect, record, and store data transactions, transform data into info through compilation and reporting, and safeguard and maintain data integrity
decision support systems (DDS) - it provides interactive tools to support day-to-day decision making; it can model “what-if” scenarios and help drive management decisions
executive information systems (EIS) - usually comes in the form of a dashboard that consolidates info so that senior executives can quickly evaluate key statistics for an organization but provides the ability to drill down when necessary
What is a customer relationship management system (CRM)?
software that enables organizations to monitor and manage interactions between the organization and its past, present, and future customers
What is supply chain management (SCM)?
it unifies business processes beginning with the original supplier and ending with the customer; it is concerned with the 4 important characteristics of every sale: what, when, where, how much
it generally incorporates: planning sourcing, manufacturing, and delivering
What is enterprise resource planning (ERP)?
it is a system that is cross-functional that supports different business functions and integrates info across departments; it facilitates real-time communication between systems and typically operates under a centralized database and user interface
it provides great benefits to an organization with a focus on integration of all enterprise data into a single channel for simplification; they take a long time to implement and can be extremely cost prohibitive
What is enterprise performance management?
software solutions designed to help executives make strategic decisions; it is useful for the analysis of high-level business strategies and translating them into actionable plans or strategic objectives; they are more management-process focused (where ERP is more operational-process focused)
What is e-commerce?
electronic platforms that facilitate the sale of goods and services using the internet; it removes overhead costs, creates markets that might not exist otherwise, promotes competitive pricing, allows for product comparison more quickly, and provides parity in info among market participants
there are 5 types of e-commerce: business-to-business (B2B), business-to-consumer (B2C), consumer-to-business (C2B), consumer-to-consumer (C2C), and government e-commerce
What is cloud computing?
renting storage space, processing power, proprietary software, or a combination of the three, on remote servers from another company rather than buying or building those components
What are some pros and cons to IT outsourcing?
pros: lower costs, expertise, resources, and enhanced focus on the core business
cons: less control, quality control, immediate access to IT support
some risks are: security and privacy practices, data accessibility, data disposal, vulnerability for attacks
What are system and organization controls (SOC) reports?
a collection of reports developed by the AICPA to be issued by CPAs in connection with the evaluation of “system-level controls” or “entity-level controls” for service-based firms; there are 3 reports:
SOC 1 - to provide assurance that the service organization’s controls are designed and operating effectively so that the financial statements are not negatively impacted (there is a Type 1 and Type 2)
SOC 2 - for users who need attestation concerning controls as they relate to security, processing integrity, availability, and privacy (there is a Type 1 and Type 2)
SOC 3 - for users who need attestation concerning controls as they relate to security processing integrity, availability, and privacy; however, this report is for companies that do not have the knowledge required to make an effective use of a SOC 2 report
