MIS Exam 1
Protocols:
-Well-known set of rules and procedures that govern the transmission of data between two points (standards for communication between devices). -Example: TCP/IP - the common worldwide language of the web.
Measured Service:
Charges for cloud resources are based on number of resources used. (i.e. utility/consumption-based pricing models) --> the more you use, the more you pay
Computer Hardware & Software
Client & Server Side
Ubiquitous Network Access: .
Cloud resources can be accessed using standard network and Internet devices, including mobile platforms
Organizations use information systems to:
Do things faster: automation and efficient business processes Do things better: improved decisions by managers, organizational learning and development Do things smarter: support business strategy and enable innovation
Middle (Mid-Level) Management
Scientist / Knowledge Workers (Tactical)
instructions
Software and Procedures
Grid Computing:
a geographically distributed network of homogeneous or heterogeneous computers working together over a long distance to perform a task(s).
Value Chain:
a network of value-creating activities. -Primary Activities -Support Activities
Data is
a stream of raw facts.
internet of things
describes a system in which everyday objects are connected to the internet and in turn are able to communicate information throughout an interconnected system
Margin:
difference between the value an activity generates and cost of that activity.
Voice Over IP (VoIP):
digital voice communication using IP and packet switching. --> Examples: Skype, FaceTime, WhatsApp, etc.
Netflix
doesn't want own data centers. use AWS
Senior (Strategic) Level Management
C-Suite, Executive Leadership (Transformative)
Computer Software types
(1)Application Software (Apps) (2)System Software (3)Malicious Software (Malware)
Personal Computers:
(Desktops, Laptops/Notebooks) (PC/Mac)
Mobile Devices:
(Smartphones, Tablets, Etc.)
Competitive strategy determines Information System structure, features, and functions.
-- Amazon ("the everything store", product recommendation agents)
Organization goals and objectives are determined by competitive strategy
-- Wal-Mart (low cost leadership) -- Chick-fil-a (quality customer service, minimize response time)
increase degree of difficulty of change
------> 5 component framework
Servers:
--> A computer is designated as a "server" based on its purpose. --> Supports computer networks, sharing files and resources, platform for e-commerce, etc. --> a computer that is hosting resources. specific purpose beyond one specific user. --> platform for e-commerce
Workstations:
--> A special class of high-performance personal computers designed for a single user typically configured with advanced graphics capabilities, large storage and memory capacities, and powerful process capabilities. --> Graphics/video design and editing, gaming, mathematical processing, research & development
Input Hardware Devices:
--> Gathers data and converts into digital form. --> Keyboard, computer mouse, touch screen, pen-based input, optical character recognition, digital scanner, microphone, webcam, digital sensors, etc.
Mainframes:
--> Large capacity, high performance computer that can process larges amounts of data very rapidly. --> First appeared in the mid-1960's, pre-dates the PC, the original "computer" in a centralized mainframe computing model. --> first kind of computer. predated PC (considered a legacy computer)
Supercomputers:
--> More sophisticated computers used for tasks requiring extremely rapid and complex calculations with thousands of variables, potentially millions of measurements. --> Used for engineering, scientific research, simulations, military/weapons research, weather forecasting, etc. --> Example IBM Watson
Primary Activites
--> add direct value to product or service inbound logistics operations / manufacturing outbound logistics marketing and sales customer service
Support Activities
--> add indirect value to product or service Technology Procurement Human Resources Firm Infrastructure
Client/Server Computing
-->Form of distributed computing (versus centralized) --> Splits the processing between "client" and "server" machines. --> Has largely replaced centralized mainframe computing -->The Internet: Largest implementation of client/server computing
Virtual Machine (VM)
-An operating system or application that is installed within a specific type of software called a virtual application, which imitates dedicated computer hardware. -To the user, the experience of running the virtual machine is intended to be the same as if they were running an operating system or application on their dedicated machine. -Performance varies based on the capabilities of the physical hardware. -Virtualization software is widely used on both client and server computers. -Important technology for Enterprise Cloud Computing. (GoDaddy)
Internet technologies and global communication have greatly reduced the economic and cultural advantages of developed countries.
-Drastic cost reduction of operating and transacting on a global scale. -Increased competition for jobs, markets, resources, ideas. -Increased dependence on imports and exports. -Requires new understanding of skills, markets, opportunities.
Capacity Planning:
-Process of predicting when hardware systems become saturated. -Ensuring the firm has enough computing power for current and future demand volume (customers) --> Factors include: •Maximum number of users (traffic/request volume) •Impact of current, future software (hardware requirements, resource consumption) •Performance measures (response/processing times)
Virtualization
-Process of presenting a set of computing resources so they can be accessed in ways that are unrestricted by physical configuration or geographic location -Enables single physical resource to appear to the user as multiple resources -Host multiple systems on a single machine (resource). --> run windows on mac through virtualization
Customer & Supplier Intimacy
-Serving customers well leads to customers returning, which raises revenues and profits -Intimacy with suppliers allows them to provide vital inputs, which lowers costs.
Best to focus on how many competitive strategies?
1 or 2 --> not all
Five IS components evaluated based on order of ease of change and amount of organizational disruption:
1)Hardware is relatively simply to order and install. 2)Obtaining or developing new programs is more difficult. 3)Creating new databases or changing the structure of existing databases is more difficult. 4)Changing procedures, requiring people to work in new ways, is even more difficult. 5)Changing personnel responsibilities, reporting relationships and hiring/terminating employees are both very difficult and disruptive.
What Five Forces Determine Industry Structure?
1. Bargaining power of customers 2. Threat of substitutes 3. Bargaining power of suppliers 4. Threat of new entrants 5. Rivalry
Product implementations for competitive advantage
1. Create a new product or service 2. Enhance product or service 3. Differentiate product or service Apple (iTunes store & iPhone)
Information technology and systems can improve business processes in two main ways:
1. Increasing the efficiency of existing processes through streamlining and automation 2. Enabling entirely new processes capable of transforming the business:
Four Functions (Elements) of an Information System
1. Input 2. Processing 3. Output 4. Feedback
Four Basic Tasks a computer must perform
1. Input 2. Storage 3. Processing 4. Output --> Interpret output --> user creates feedback loop --> act
Process Implementations
1. Lock in customers and buyers 2. Lock in suppliers 3. Raise barriers to market entry 4. Establish alliances 5. Reduce costs
4 functions of business
1. Manufacturing & Production, 2. Sales & Marketing 3. Finance & Accounting 4. Human Resources
Six strategic business objectives:
1. Operational excellence 2. New products, services, and business models 3. Customer and supplier intimacy 4. Improved decision making 5. Competitive advantage 6. Survival
How does organizational strategy determine Information Systems structure?
1. Organization goals and objectives are determined by competitive strategy 2. Competitive strategy determines Information System structure, features, and functions.
Organizational Food Pyramid
1. Senior (Strategic) Level Management 2. Middle (Mid-Level) Management 3. Operational Management
Cloud Computing consists of three types (models) of services:
1. Software as a Service (SaaS): 2. Platform as a Service (PaaS): 3. Infrastructure as a Service (IaaS):
4 things common to all computers
1. input 2. storage 3. processing 4. output
Value Chain Analysis in three sequential steps:
1.Break down an organization into its key activities under each of the major headings in the model. 2.Assess the potential for adding value via cost advantage or differentiation or identify current activities where a business appears to be at a competitive disadvantage. 3.Determine strategies built around focusing on activities where competitive advantage can be sustained. --> focus on what you're good at, outsource what you are not good at
Cloud Computing Five Essential Characteristics:
1.On-Demand Self-Service: 2.Ubiquitous Network Access: 3.Location-Independent Resource Pooling: 4.Rapid Elasticity: 5. Measured Service:
Cloud Computing types: (3)
1.Public Cloud 2.Private Cloud 3.Hybrid Cloud
Are businesses processes assets or liabilities?
Both! --> source of competitive advantage or strength, it is an asset -->it is a liability if the process is outdated or causing the firm financial instability
swim lane diagram
A visual representation that groups functional areas responsible for different sub-processes into lanes. Different functional areas combine to describe cross functional processes
What Are Necessary Data Characteristics?
Accurate Timely Relevant Just Barely Sufficient Worth Its cost
Future business professionals need to be able to:
Assess --> the current state of business environments. Evaluate --> alternative approaches/solutions to unique problems. Apply --> emerging technologies to gain competitive advantages.
Complementary Assets:
Assets required to derive value from a primary investment. -Firms supporting technology investments with investments in complementary assets experience comparatively superior returns. -Example: Invest in technology and the people required to make it work: •Hire subject matter experts, train workforce properly. •Contractors, Consultants, Flex-Labor
Multi-tiered client/server architecture (N-Tier)
Balances the load of client requests for service over several levels of servers. --> Example: Web Servers & Application Servers. (Facebook) --> Client <--> Internet <--> Web Server <--> Application Server <--> Data
Data is transmitted as
Bits (1's and 0's)
The ENIAC - Electronic Numerical Integrator and Computer
Built in 1943-45 at the Moore School of the University of Pennsylvania for the War effort but not delivered to the Army until just after the end of WW2, the Electronic Numerical Integrator And Computer (ENIAC) was the first general-purpose electronic digital computer. It was 150 feet wide with 20 banks of flashing lights. --> first two programmers were women --> mainframe computer
New Products, Services, & Business Models
Business Model: describes how a company produces, delivers, and sells products or services. Example: The Apple Ecosystem
Survival
Businesses may need to invest in information systems out of necessity, simply the cost of doing business. Two Possible Forces: Competitive & Compliance Industry Level Changes •Citibank's introduction of the ATM (Competitive) •Federal and/or state government regulations requiring improved record-keeping systems (Ex. Sarbanes-Oxley Act)
Location-Independent Resource Pooling:
Computing resources are pooled to serve multiple-users, with different virtual resources dynamically assigned according to user demand. The user generally does not know (or have a need to know) where the computing resources are physically located.
Rapid Elasticity:
Computing resources can be rapidly provisioned, increased, or decreased to meet changing user demand. (ability to increase/decrease compute capacity to handle volume spikes, fluctuations, etc.)
1.On-Demand Self-Service:
Consumers can obtain and access computing capabilities/resources such as server time or network storage as needed automatically on their own. Whenever, wherever.
How Does Analysis of Industry Structure Determine Competitive Strategy?
Cost Leader Differentiation Innovation Operational Effectiveness Customer Oriented
Why would facebook not buy a couple super comuters?
Cost effectiveness. Less dependent on one individual machine
Lock in Customers
Create high switching costs
Platform as a Service (PaaS): (Platform)
Customers use infrastructure and programming tools supported by the cloud service provider to develop and/or host their own applications. --> GoDaddy, Wix, SquareSpace (user-friendly) --> more customizable features than SaaS
Infrastructure as a Service (IaaS): (Infrastructure)
Customers use processing, storage, networking, and other computing resources from cloud service providers to run and manage their own information system. --> Amazon Web Services (AWS) --> you can build server from ground up --> least abstract --> pay for how much you use
Software as a Service (SaaS): (Application)
Customers use software hosted by the vendor on the vendor's cloud infrastructure and delivered as a service of a network. --> Canvas, googles g suite, salesforce --> most abstract
Competitive Advantage
Delivering better performance -Charging less for superior (or comparable) products -Responding to customers and suppliers in real time -Example Best Buy vs. Circuit City
MIS
Facilitate in both strategic and operational activities
Firm Infrastructure
General Management, Finance, Accounting, Legal, Government Affairs
Hybrid Cloud:
Generally used by large corporations that store the most essential core activities on their own infrastructure and use the cloud for less-critical systems or additional processing capabilities.
What are mainframes being replaced with?
Grid & Cluster Computing
Five-Component Framework
Hardware, software, data, procedures, and people; present in every information system -->Data, Procedures, and People are the most crucial components
Centralized Mainframe Computing Model
Have dumb terminals --> centralized computing
Virtual Machine (VM) Architecture
Host Hardware (Client or Server Machine) --> Host Operating System --> Virtualization Application --> Windows VM // MAC OSX VM // Linux VM
Business:
a formal organization that makes products and/or provides a service in order to make a profit
Differentiation
I am better because I am different (Tesla)
Operational Effectiveness
I can do the same thing more efficiently than you can --> Jimmy John's
Cost Leader
I can sell at a lower cost than you can
Customer Oriented
I treat my customers better than you do --> Chick Fil A
Innovation
I'm doing something new and you can't catch up
Internet Protocol (IP)
IP has the task of labeling and delivering packets from the source host to the destination host solely based on the IP addresses in the packet information. For this purpose, IP defines packet structures that encapsulate the data to be delivered.
Flow Diagram
Industry Structure Competitive Strategy Value Chains Business Processes Information Systems --> Build Information Systems last bc they are defined by what comes before
Operational Excellence
Information Systems and technology applications enable organizations to achieve greater efficiency and productivity in operations resulting in higher profits. --> Wal-Mart Wal-Mart's Retail Link system links suppliers directly to stores to create superior inventory replenishment system •Suppliers have complete access to inventory information and in turn are held accountable for key performance indicators (KPIs) •Vender Managed Inventory System •Wal-Mart is one of the most efficient retailers in the industry and exemplifies operational excellence.
MacBook vs Macbook Pro
Macbook is standard personal computer Macbook pro is workstation
Create Barriers to Entry
Make it difficult and expensive for new competition
Lock in Suppliers
Make it easy to connect to, and work with, your organization --> create monopoly from supplier
Examples of Functional Business Processes:
Manufacturing and production -Assembling the product Sales and marketing -Identifying customers Finance and accounting -Creating financial statements Human resources -Hiring employees
Packet Switching
Method of slicing digital messages into parcels (packets) and sending those packets along various communication paths as they become available, and then reassembling packets at destination. --> Packet switching is a more efficient use of a network's communication capacity and increases fault-tolerance through redundancy.
Routers:
Network devices used to route packets of data through different networks, ensuring that data sent arrives at the correct address. --> can do more than switches
Cross-Functional Business Process Example:
Order Fulfillment
Public Cloud:
Owned and operated by external service providers; accessed through the Internet; available to anyone; generally used for non-sensitive data. --> dropbox, google drive
The Most Important Component
People -->Quality of your critical thinking and evaluation.
Can Facebook go down?
Probably not. Redundant / fail over systems. One data center could go down, but others would save it.
human side
Procedures and People
How Organizations Create Competitive Advantages
Product Implementations Process Implementations
Operational Management
Production and/or Service Workers, Data Workers (Transactional)
Private Cloud:
Proprietary system owned and operated by a specific company; based on virtualization; available only to users inside the company; generally used for sensitive financial and personal data.
Technology
R & D, New Techniques, Methods, Procedures
Procurement
Raw Materials
Operating Systems
System software that managed and controls the computer's activities. -Enables the computer to multi-task, run multiple applications, and store data (Windows, Mac OS, Linux, Android, etc.)
Transmission Control Protocol (TCP):
TCP is a standard that defines how to establish and maintain a network conversation through which application programs can exchange data. TCP works with IP, which defines how computers send packets of data to each other.
Create Better Business Processes to Establish Alliances
Target Alliances --> Starbucks / Taco Bell / Pizza Hut in stores
Human Resources
Training, Recruiting, Compensation
What is a computer network?
Two or more connected computers -Components of a network typically include: •Client computer(s) •Server computer(s) •Network Interfaces •Connection medium (copper ethernet & coax cabling, fiber optic cabling, wireless radio transmission) •Network devices & appliances (firewalls, routers, switches, etc.)
Extranet:
a controlled private network that allows access to partners, vendors, suppliers, and/or an authorized set of customers - normally to a subset of the information accessible from an organization's intranet. --> includes external party
Total Cost of Ownership (TCO) Model:
Used to analyze direct and indirect costs to help determine the actual costs of owning a specific technology (capital investment). •Direct Costs: hardware and software purchase costs •Indirect Costs: ongoing administration costs, upgrades, maintenance, technical support, training, utility, real estate (facility) costs, etc. •Hidden Costs: support staff, downtime, additional network management, etc.
Two-tiered client/server architecture
Uses two types of machines --> WIN system Client <--> Server
How Does Competitive Strategy Determine Value Chain Structure?
Value Chain Analysis in three sequential steps:
Improved Decision Making
Without accurate information: •Managers must rely on basic forecasts, best guesses, luck •Resulting in: -Overproduction, underproduction of goods and services -Misallocation of resources, poor response times --> Poor outcomes raise costs, lose customers --> Real-time data improves ability of managers to make more informed decisions.
Service Level Agreement (SLA)
a commitment between a service provider and a client. Specific details of the service delivery such as quality, availability, responsibilities, etc., are agreed upon between the service provider and the service user. --> lawyers get involved --> who is responsible if things go wrong --> relying on vendors
Intranet:
a computer network for sharing information, collaboration tools, operational and transactional systems, and other web/network services within an organization, usually to the exclusion of external users. --> WFU b school
Local Area Network (LAN):
a computer network that interconnects computers (devices) within a limited area such as a residence, school, laboratory, university campus or office building (i.e. geographically local)
Wide Area Network (WAN):
a telecommunications network that extends over a large geographic area for the primary purpose of computer networking. WANs are often established with leased telecommunication circuits owned by third-parties (i.e. internet service/telecom providers) -> internet is largest WAN
Scalability:
ability of the system to expand in order to serve large number of users (volume) without crashing system (service interruptions) --> how much can one server handle
All network connected devices are assigned
addresses.
Value:
amount of money a customer is willing to pay for a resource, product, or service.
In the digital firm
any piece of information required to support key business decisions are available at anytime and anywhere in the firm. Core business processes are accomplished through digital networks.
Worth Its Cost
appropriate relationship between cost of information and its value.
customer service
assisting customers' use of the products and thus maintaining and enhancing the products' value
Bitrate is commonly reported in (speed)
bits per second (bps)
Relevant
both to the context and to the subject.
cross-functional
carrying over many functional areas of the firms
The client/server (distributed) computing model has largely replaced the
centralized mainframe computing model.
outbound logistics
collecting, storing, and physically distributing the products to buyers
Grid & Cluster Computing Objective:
complete tasks that would otherwise be difficult, or time consuming, for a single machine by creating a "virtual super-computer". --> The modern computing architecture for high-volume web services (i.e. Facebook) --> Cost effective, globally distributed, and redundant systems.
Utilities
computer programs designed to assist users in the maintenance and care of their computers.
Types of Computing:
computers come in different sizes and varying capabilities for processing information and performing tasks.
Accurate
correct and complete data. Managers must be able to rely on results of their information systems. •Example: Wikipedia - be skeptical.
birdge
data
metadata
data describing data
Operating Systems
essential collections of software that manage resources and provide common services for other software that runs "on top" of them. Supervisory programs, boot loaders, shells and window systems are core parts of operating systems. In practice, an operating system comes bundled with additional software (including application software) so that a user can potentially do some work with a computer that only has one operating system.
The internet has created a ---- world.
flattened
Just Barely Sufficient
for the purpose which it is generated. Avoid information overload.
business processes can be
functional or cross functional
software controls
hardware
actors
hardware and people
computer side
hardware and software
An IP address serves two main functions:
host or network identification and location addressing. (i.e. local vs. global scope address)
business processes
how we conduct business --> set of activities --> Workflows of materials, data -> information -> knowledge
Performance of a firm is largely based on
how well processes are designed and executed.
automation moves work from
human side to computer side
marketing and sales
inducing buyers to purchase the product and providing a means for them to do so
Cloud Computing can drive down
infrastructure costs (value proposition)
most important task
input (bad data going in creates bad data coming out)
The Domain Name System (DNS)
is a hierarchical and decentralized naming system for computers, services, or other resources connected to the Internet or private network. --> DNS primary purpose is to translate more readily memorized domain names to the numerical IP addresses needed for locating and identifying computer services and devices.
Cloud Computing
is a model of computing in which computer processing, storage, software, and other services are provided as a shared pool of virtualized resources over a network, primarily the Internet (i.e. the "Cloud") --> A model of computing in which firms and individuals obtain computing resources over the Internet. --> Cloud computing is the fastest-growing form of computing, with worldwide public cloud computing expenditures expected to reach approx. $266 billion by 2021.
An Internet Protocol (IP) Address
is a numerical label assigned to each device connected to a computer network that uses the Internet Protocol for communication.
management information system
is a system or process that provides the information necessary to manage an organization in an efficient and effective manner
Redundancy
is the inclusion of extra components which are not strictly necessary to a systems normal functionality, in case of failure in other components.
Bandwidth (how much data you can send)
is the maximum transmission capacity of a given device or path. --> Bandwidth is measured by Bitrate, the number of bits that we can send over a given period of time (i.e. transmission speed).
Fault-tolerance
is the property that enables a system to continue operating properly in the event of the failure (or one or more faults within) some of its components.
Latency (lag)
is the time it takes for a bit to travel from one place to another and is measured in milliseconds (ms).
Primary purposes of these information systems
is to aid in the process of decision making and solving complex business problems; i.e. business intelligence and analytics
which is fastest?
light -- fiber optic cable
The "Digital" Firm
nearly all the organization's significant business relationships with customers, suppliers, and employees are digitally enabled and mediated.
most data is generated at which level of management
operational management --> generated at transactional level
most difficult part of business
organizational politics / unique business culture
Timely
produced in time for its intended use •Canvas Grades
IT Infrastructure
provides the platform for supporting all information systems
inbound logistics
receiving, storing, and disseminating inputs to the products
Information Systems (IS)
set of interrelated components that manage information to -Support decision making, coordination, and control -Help with data analysis, visualization, and product creation. IS = IT + procedures + people
Business Processes
set of logically related tasks and behaviors that organizations develop overtime to produce specific business results and the unique way these activities are organized and coordinated.
Information is data
shaped into a meaningful, useful form.
(2)System Software
software for managing computer hardware behavior, as to provide basic functionalities that are required by users, or for other software to run properly, if at all. System software is also designed for providing a platform for running application software, and it includes the following: •Operating Systems •Device Drivers •Utilities
Malicious Software (Malware)
software that is developed to harm and disrupt computers. As such, malware is undesirable. Malware is closely associated with computer-related crimes, though some malicious programs may have been designed as practical jokes. (viruses, worms, trojan horses, etc.)
(1)Application Software (Apps)
software that uses the computer system to perform special functions or provide entertainment functions beyond the basic operation of the computer itself. There are many different types of application software, because the range of tasks that can be performed with a modern computer is so wide.
Server Machines:
•Serves resources to clients. •Stores, processes, and distributes data. •Hosts services and performs network management activities.
Internet:
the global system of interconnected computer networks that uses the Internet Protocol suite (TCP/IP) to communicate between networks and devices. Largest scale WAN.
Information Technology (IT)
the hardware, software, and telecommunications equipment a business uses to achieve objectives. IT = hardware + software + data•
the output from one computer can become
the input of another
Moore's law
the observation that computing power roughly doubles every two years.
bit
the smallest unit of data the computer can store or process
Firms coordinate work of employees by developing hierarchy in which authority is concentrated at
the top
functional
tied to a specific function of the business like manufacturing
operations / manufacturing
transforming inputs into the final products
Cluster Computing
two or more homogeneous computers (same type of hardware and operating system) residing on the same local network (physical location) dedicated to performing the same task(s). --> identical computers working together to do same task
Client Machines:
user point of entry to systems, applications, and networks.
How do business processes generate value?
using linkages across business processes can help people in different departments understand how they can improve their processes. ex. raw materials purchases querying raw materials data base to see what we have vs what we need. raw materials ordering also querying finished goods to see what the demand from customers is like. --> more communication and visibility between business processes --> Improved Material Ordering Process
Device Drivers
which operate or control a particular type of device that is attached to a computer. Each device needs at least one corresponding device driver; because a computer typically has at minimum at least one input device and at least one output device, a computer typically needs more than one device driver.
Processing Hardware: (brain of the computer) (speed of computer)
•Central Processing Unit (CPU / Processor) - the electronic circuitry (chip) within a computer that executes the instructions of computer programs. The "brain" of your computer. •Graphics Processing Unit (GPU) - a specialized electronic circuit designed to rapidly manipulate and alter memory to accelerate the creation of images in a frame buffer intended for output to a display device. Your computers video card. •Main (Mother) Board, Peripheral Component Cards.
Output Devices:
•Displays/returns data following processing. •Monitors, screens, printers, audio output (speakers), etc.
Storage Hardware:
•Primary Storage (Volatile Memory / RAM) - the memory storage that is directly accessible to the CPU (Central Processing Unit). The CPU continuously reads instructions stored there and executes those instructions as required. Primary storage is responsible for storing the data related the operating system and applications actively running on your computer. •Secondary Storage (Non-Volatile Memory / Drives) - the storage devices responsible for storing your data (operating system files, application files, personal/work files) and retains that information even when not powered. •Examples: Hard Disk Drives, Solid State Drives, Tape Drives, Optical Discs, etc.
