Use of IT systems

Question 1

What are the benefits of cloud technology?

Answer 1

Data can be stored and shared
Data can be accessed wherever whenever 
Improved security
Less need for updates and maintenance
Allows smaller organisations to compete better with large rivals (without significant financial investment)
Facilitates organisational growth

Question 2

What are the risks of cloud technology?

Answer 2

Reliance on the service provider (e.g. price increases, quality falls)
Regulatory risks - can only be stored for a certain amount of time, who can access it etc.
Unauthorized access of business and customer data (cloud service is more likely to be target for hacking) and data can be accessed by cloud providers staff

Question 3

What is Enterprise resource planning system (ERPS)?

Answer 3

The cloud on Oracle

Integrates data from many aspects of the business (e.g. manufacturing, inventory, invoicing) and support functions (such as human resource management and marketing) into one system

Question 4

What are the 3 V’s of Big Data?

Answer 4

Volume - organisations can now hold huge volumes of data
Variety - internal and external, structured and unstructured
Velocity - turned into useful information quickly enough to be used in decision making

Question 5

What is Big Data?

Answer 5

Extremely large collections of data that may be analysed to reveal patterns and trends

E.g. loyalty card data from a supermarket

Question 6

What are the risks associated with using Big Data?

Answer 6

Availability of skills
Security of data
Incorrect data
Data can be outdated and irrelevant very quickly
Cost of updating or maintaining 
Technical difficulties