ISA 235 Exam #1 (Chapters 1-4)
Challenges of Ebusiness
1. limited market segments 2. manage consumer trust 3. ensure consumer protection 4. adhering to tax rules
3 challenges with Business 2.0
1. violations of copyright/plagiarism 2. information vandalism 3. technology dependence
switching costs
costs that make customers reluctant to switch to another product or service -financial and intangible values
user-contributed (generated) content
created/updated by many users for many users ex. Wikipedia
opt out
customer specifically chooses to deny permission of receiving emails
associate/affiliate program
customer visits website and clicks on link to another merchant's site
variable
data characteristic that stands for a value that changes or varies over time
information
data converted into a meaningful and useful context
machine-generated data
data created by a machine WITHOUT human intervention Includes: -sensor data - point of scale data - web log data
structured data
data that has a defined length, type, and format and includes numbers, dates, and strings such as Customer address
human-generated data
data that humans, in interaction with computers, Includes: -input data -click stream data -gaming data
input
data that is entered into a computer
unstructured data
data that is not defined and does not follow a specified format and is typically free-form text such as emails, tweets, and texts -makes up about 80% of data around us
information richness
depth and breadth of details contained in a piece of textual, graphic, audio, or video info
social tagging
describes the collaborative activity of making shared online content with tags as a way to organize it for future searching
information security plan
details how an organization will implement the information security policies
business model
details how company creates, delivers, and generates revenue
email privacy policy
details the extent to which email messages may be read by others
machine-to-machine (M2M)
devices that connect directly to other devices
MIS skills gap
difference between existing MIS workplace knowledge and the knowledge required to fulfill the business goals and strategies
report
document containing data organized in a table, matrix, or graphical format allowing users to easily comprehend and understand information
SWOT analysis
evaluates an organization's strengths, weaknesses, opportunities, and threats to identify significant influences that work for or against business strategies
search engine ranking
evaluates variables that engines use to determine where a URL appears on list
clickstream data
exact pattern of consumer's navigation through a site
information management
examines the organizational resource of information and regulates its definitions, uses, value, and distribution, ensuring that it has the types of data/information required to function and grow effectively
hackers
experts in technology who use their knowledge to break into computers and computer networks, either for profit or motivated by the challenge
predictive analytics
extracts information from data and uses it to predict future trends and identify behavioral patterns
splogs
fake blogs created solely to raise the search engine rand of affiliated websites
competitive advantage
feature of a product or service on which customers place a greater value than on similar offerings from competitors
entry barrier
feature of a product or service that customers have come to expect and entering competitors must offer the same for survival
script kiddies or script bunnies
find hacking code on the internet and click-and-point their way into systems to cause damage or spread viruses
denial-of-service attack (DoS)
floods a website with so many requests for service that it slows down or crashes the site
information ethics
govern the ethical and moral issues arising from the development and use of information technologies, as well as the creation, collection, duplication, distribution, and processing of information itself (with or without the aid of computer technologies)
internet censorship
government attempts to control internet traffic, thus preventing some material from being viewed by a country's citizens
social engineering
hackers use their social skills to trick people into revealing access credentials or other valuable information
crackers
have criminal intent when hacking
hactivists
have philosophical and political reasons for breaking into systems and will often deface the website as a protest
content management systems (CMS)
helps companies manage the creation/storage/editing/publication of their user-friendly website content
trojan-horse virus
hides inside other software, usually as an attachment or downloadable file
information security policies
identify the rules required to maintain information security, such as requiring users to log off before leaving for lunch meetings, never sharing passwords with anyone, and changing passwords every 30 days
malicious code
includes a variety of threats such as viruses, worms, and trojan horses
knowledge workers
individuals valued for their ability to interpret and analyze information -use BI and personal experience to make decisions
business intelligence
information collected from multiple sources such as suppliers, customers, competitors, partners, and industries that analyzes patterns, trends, and relationships for strategic decision making
intellectual property
intangible creative work that is embodied in physical form and includes copyrights, trademarks, and patents
HTTP
internet protocol web browsers use to request and display webpages using URLS
adwords
keywords that advertisers pay for and appears as sponsored links on Google
business strategy
leadership plan that achieves a specific set of goals or objectives Examples: -increasing sales -decreasing costs -entering new markets -developing new products or services
insiders
legitimate users who purposely or accidentally misuse their access to the environment and cause some kind of business-affecting incident
dumpster diving
looking through people's trash, another way hackers obtain information
human resources
maintains policies, plans, and procedures for the effective management of employees
destructive agents
malicious agents designed by spammers and other internet attackers to farm email addresses off websites or deposit spyware on machines
operations management
manages the process of converting or transforming resources into goods and services
social networking analysis
maps group contacts by identifying who knows/works with each other
goods
material items or products that customers will buy to satisfy a want or needs Examples: -clothing, groceries, cell phones, cars
interactivity
measures advertising effectiveness by counting visitor interactions
Porter's Five Forces Model
model for analyzing the competitive forces within the environment in which a company operates to asses the potential profitability in an industry 1. Buyer Power 2. Supplier Power 3. Threat of Substitute Products/Services 4. Threat of New Entrants 5. Rivalry Among Existing Competitors
Web 2.0 (Business 2.0)
more mature/distinctive; collaboration, sharing, free encourages user participation and formation of communities that contribute to content
disruptive technology
new way of doing things that initially don't meet needs of existing customers
open systems
non proprietary hardware/software based on publicly known standards that allows 3rd parties to create add-on products to inter operate with system
information reach
number of people a firm can communicate with all over the world
click-through
number of people who visit a site and click on ad that takes them to advertiser
backdoor programs
opens a way into the network for future attacks
digital darwinsim
organizations can't adapt to new demands placed on them for surviving information age are doomed to extinction
social media policy
outlines the corporate guidelines or principles governing employee online communications
sales
performs the function of selling goods and services
stakeholder
person or group that has an interest or concern in an organization -they drive business strategies
e-business model
plan to generate revenue on internet "dot-com" company on Internet
epolicies
policies and procedures that address information management along with the ethical use of computers and the internet in the business environment
rivalry among existing competitors
power of competitors
threat of new entrants
power of competitors to enter a market
buyer power
power of customers to drive down prices
supplier power
power of suppliers to drive up prices of materials
threat of substitute products/services
powers of customers of purchase alternatives -high when there are many alternatives -low when there are few alternatives
competitive intelligence
process of gathering information about the competitive environment, including competitors plans, activities, and products to improve a company's ability to succeed
production
process where a business takes raw materials and processes them or converts them into a finished product for its goods/services
network effect
products in a network increase in value as number of users increase
Applet
program runs within another app
sustaining technology
provides improved product
HTML
publishes hypertext on WWW
data
raw facts that describe the characteristics of an event or object
clickstream
records information about a customer during a web surfing session such as what websites were visited, how long the visit was, what ads were viewed, and what was purchased
accounting
records, measures, and reports monetary transactions
downtime
refers to a period of time when a system is unavailable
ediscovery
refers to the ability of a company to identify, search, gather, seize, or export digital information in responding to a litigation, audit, investigation, or information inquiry
Web 1.0 (Business 1.0)
refers to world wide web during first few years
synchronous communication
reponse occurs at same time ex. IM
static report
report created once based on data that does not change Examples: -sales report from last year -salary report from five years ago
dynamic report
report that changes automatically during creation Examples: -updating daily stock market prices -calculation of available inventory
social graphs
represents the interconnection of relationships in social network
asynchronous communication
response doesn't occur at same time ex. email
chief knowledge officer (CKO)
responsible for collecting, maintaining, and distributing the organization's knowledge -designs programs and systems that make it easy for people to reuse knowledge
chief privacy officer (CPO)
responsible for ensuring the ethical and legal use of information within an organization -lawyers by training that understand complex legal issues
chief security officer (CSO)
responsible for ensuring the security of MIS systems and developing strategies and MIS safeguards against attacks from hackers and viruses -knowledge of networks and telecommunications
chief technology officer (CTO)
responsible for ensuring the throughput, speed, accuracy, availability, and reliability of an organizations information technology -knowledge of hardware, software, telecommunications -ensure efficiency of MIS systems
chief information officer (CIO)
responsible for overseeing all uses of MIS and ensuring that MIS strategically aligns with business goals -reports directly to CEO -functions as a manager, leader, and communicator
pay per click
revenue with every user that clicks on link on retailer's website
loyalty programs
reward customers based on their spending
analytics
science of fact-based decision making
taxonomy
scientific classification of organisms into groups based on similarities of structure or origin ensure user-friendly search and navigation
cyberterrorists
seek to cause harm to people or to destroy critical systems or information and use the internet as a weapon of mass destruction
B2C
sells directly to consumers online
mail bomb
sends a massive amount of email to a specific person or system that can cause that user's server to stop functioning
information architecture
set of ideas about how all information in given content should be organized
application programming interface
set of routines for building software applications
collaboration system
set of tools that support the work of groups by facilitating the sharing/flow of info
folksonomy
similar to taxonomy except that crowdsourcing determines tags-based classification system
knowledge
skills, experience, and expertise coupled with information and intelligence that creates a person's intellectual resources
counterfeit software
software that is manufactured to look like the real thing and sold as such
open source
software whose source code made available free for any 3rd party to review or modify
virus
software written with malicious intent to cause annoyance or damage
adware
software, while purporting to serve some useful function and often fulfilling that function, also allows internet advertisers to display advertisements without the consent of the computer user
crowdfunding
sources capital for a project by raising many small amounts from many individuals via Internet
tags
specific keywords incorporated into website content for means of classification/taxonomy
worm
spreads itself not only from file to file but also from computer to computer. does not need to attach to anything to spread nd can tunnel themselves into computers
business process
standardized set of activities that accomplish a specific task
employee monitoring policy
states explicitly how, when, and where the company monitors its employees
anti-spam policy
states that email users will not send unsolicited emails (or spam)
Web 1.0
static text-based information website
reintermediation
steps added into value chain as new players find ways to add value to business process
marketing
supports sales by planning, pricing, and promoting goods or services
long-tail
tail of typical sales curve
physical security
tangible protection such as alarms, guards, fireproof doors, fences, and vaults
services
tasks that customers will buy to satisfy a want or need Examples: -waiting tables, teaching, cutting hair
click-fraud
the abuse of pay-per-click, pay-per-call, and pay-per-conversion revenue models by repeatedly clicking on a link to increase charges or costs for the advertiser
information compliance
the act of conforming, acquiescing, or yielding information
confidentiality
the assurance that messages and information remain available only to those authorized to view them
information secrecy
the category of computer security that addresses the protection of data from unauthorized disclosure and confirmation of data source authenticity
fact
the confirmation or validation of an event or object
cybervandalism
the electronic defacing of an existing website
identity theft
the forging of someone's identity for the purpose of fraud
spoofing
the forging of the return address on an email so that the message appears to come from someone other than the actual sender
copyright
the legal protection afforded an expression of an idea, such as a song, book, or video game
information age
the present time, during which infinite quantities of facts are widely available to anyone who can use a computer
ethics
the principles and standards that guide our behavior toward other people
social media monitoring
the process of monitoring and responding to what is being said about a company, individual, product, or brand
productivity
the rate at which goods/services are produced based upon total output given total inputs
output
the resulting information from the computer program
privacy
the right to be left alone when you want to be, to have control over your personal possessions, and not to be observed without your consent
website name stealing
the theft of a website's name that occurs when someone, posing as a site's administrator, changes the ownership of the domain name assigned to the website to another website owner
pirated software
the unauthorized use, duplication, distribution, or sale of copyrighted software
cyberbulling
threats, negative remarks, or defamatory comments transmitted via the internet or posted on a website
workplace MIS monitoring
tracks people's activities by such measures as number of keystrokes, error rate, and number of transactions processed
finance
tracks strategic financial issues including money, banking, credit, investments, and assets
span
unsolicited email
pay per call
user clicks on link, directly to online agent waiting for call
Web 2.0
user-contributed content
viral marketing
users pass on marketing message to other sites/users
behavioral analytics
uses data about people's behaviors to understand intent and predict future actions
snapshot
view of data at a particular moment in time
value chain analysis
views a firm as a series of business processes that each add value to the product or service -tool to determine how to create the greatest possible value for customers Two Categories: 1. primary value activities 2. support value activities
systems thinking
way of monitoring the entire system by viewing multiple inputs being processed or transformed to product outputs while continuously gathering feedback on each part
Web 3.0/semantic web
ways for people to describe information such that computers understand relationships machine-reasoning/learning, intelligent apps
real simple syndication (RSS)
web format used to publish frequently updated works
search engine
web software that finds other pages based on keywords matching similar to Google
pay per conversion
website visitor converted to customer
social media
websites that rely on user participation
disintermediation
when a business sells directly to the customer online and cuts out the intermediary
paradigm shift
when a new radical form of business enters market and reshapes the way companies/organizations behave
real-time communication
when system updates info at same rate it receives it
crowdsourcing
wisdom of the crowd, collective intelligence
white-hat hackers
work at the request of the system owners to find system vulnerabilities and plug the holes
marketing data types
-promotion data -sales data -advertising data
partners/suppliers
-reliable contracts -ethical materials handling -responsible production
common approaches to closing MIS skills gap
-social recruiting -off site training -mentoring services -partnerships with universities
accounting data types
-transactional data -purchasing data -payroll data -tax data
Porter's Three Generic Strategies
1. broad cost leadership 2. broad differentiation 3. focused strategy
Internal Strengths (Helpful)
- core competencies -market leaders -cost advantages -excellent management
examples of information
-Best Selling Product -Best Customer -Worst Selling Product -Worst Customer
4 Core Drivers of the Information Age
-Data -Information -Business Intelligence -Knowledge
examples of data
-Order Date -Amount Sold -Customer Number -Quantity Ordered
Results of changing a variable
-able to create hypothetical scenarios to study future possibilities -anticipate how sales or cost increases -how increase in costs improve profits
government
-adhere to regulations/laws -increase employment -ethical taxation reporting
positions that are expected to be created over the next decade
-chief intellectual property officer *manage copyrights, patents -chief automation officer *determine if something can be replaced by robot/software -chief user experience officer *create relationship between user and technology
examples of knowledge
-choosing not to fire a sales representative who is under performing knowing that person is experiencing family problems -listing products that are about to expire first on the menu or creating them as a daily special to move the product
Why use predictive analytics?
-define the future of a business -analyze markets, industries, economies -determine strategic direction of a company
human resources data types
-employee data -promotion data -vacation data
customers
-exceptional customer service -high quality products -ethical dealing
External Opportunities (Helpful)
-expanded product line -increase in demand -new markets -new regulations
employees
-fair compensation -job security -ethical conduct/treatment
primary value activities
-found at the bottom of the chain -include business processes that acquire raw materials and manufacture, deliver, market, sell, and provide after-sales services
support value activities
-found at the top of the chain -include business processes such as firm infrastructure, HR management, and technology development that support primary activities
finance data types
-investment data -monetary data -reporting data
Internal Weaknesses (Harmful)
-lack of strategic direction -obsolete technologies -lack of managerial talent -outdated product line
examples of BI
-lowest sales per week compared with the economic interest rates -best selling product by month compared to sports seasons and city team wins/losses
What does business intelligence manipulate?
-manipulates multiple variables including items like interest rates, weather conditions, and gas prices
operations management types of data
-manufacturing data -distribution data -production data
shareholders/investors
-maximize profits -grow market share -high return on investment
External Threats (Harmful)
-new entrants -substitute products -shrinking markets -costly regulatory requirments
stakeholder interests
-partners/suppliers -shareholders/investors -community -employees -customers -government
sales data types
-potential customer data -sales report data -commission data -customer support data
community
-professional associations -ethical recycling -increase employment
Examples of coupling the power of the information age with traditional business methods
Amazon, Netflix, Zappos
first-mover advantage
advantage that occurs when a company can significantly increase its market share by being first to market with a competitive advantage Example: FedEx
intermediaries
agents, software, or businesses that provide a trading infrastructure to bring buyers and sellers together
Sources of Unstructured data
Machine Generated Unstructured Data -satellite images, scientific atmosphere, radar Human Generated Unstructured Data -texts, social media, emails
broad market and high cost
Neiman Marcus
narrow market and low cost
Payless Shoes
bring your own device (BYOD) policy
allows employees to use their personal mobile devices and computers to access enterprise data and applications
Domain name hosting
allows owner of domain to maintain simple website and email
narrow market and high cost
Tiffany and Co
broad market and low cost
Walmart
podcasting
converts audio broadcast to a digital music player
information security
a broad term encompassing the protection of information from accidental or intentional misuse by persons inside or outside an organization
drive-by hacking
a computer attack where an attacker accesses a wireless computer network, intercepts data, uses network services, and/or sends attack instructions without entering the office or organization that owns the network
competitive click-fraud
a computer crime where a competitor or disgruntled employee increases a company's search advertising costs by repeatedly clicking the advertiser's link
nonrepudiation
a contractual stipulation to ensure that ebusiness participants do not deny (repudiate) their online actions
ransomware
a form of malicious software that infects your computer and asks for money. Simplelocker is a new ransomware program that encrypts your personal files and demands payment for the files' decryption keys
pretexting
a form of social engineering in which one individual lies to obtain confidential data about another individual
fair information practices
a general term for a set of standards governing the collection and use of personal data and addressing issues of privacy and accuracy
hardware key logger
a hardware device that captures keystrokes on their journey from the keyboard to the motherboard
Child Online Protection Act (COPA)
a law that protects minors from accessing inappropriate material on the internet
phishing expedition
a masquerading attack that combines spam with spoofing
information governance
a method or system of government for information management or control
social media manager
a person within the organization who is trusted to monitor, contribute, filter, and guide the social media presence of a company, individual, product, or brand
spear phishing
a phishing expedition in which the emails are carefully designed to target a particular person or organization
acceptable use policy (AUP)
a policy that a user must agree to follow to be provided access to corporate email, information systems, and the internet
typosquatting
a problem that occurs when someone registers purposely misspells variations of well-known domain names
elevation of privilege
a process by which a user misleads a system into granting unauthorized rights, usually for the purpose of compromising or destroying the system
sniffer
a program or device that can monitor data traveling over a network
key logger
a program that records every keystroke and mouse click
cookie
a small file deposited on a hard drive by a website containing information about customers and their web activities. cookies allow websites to record the comings and goings of customers, usually without their knowledge or consent
spyware
a special class of adware that collects data about the user's knowledge or permission
phishing
a technique to gain personal information for the purpose of identity theft, usually by means of fraudulent emails that look as though they came from legitimate sources
digital rights management
a technological solution that allows publishers to control their digital media to discourage, limit, or prevent illegal copying and distribution
opt in
a user can opt in to receive emails by choosing to allow permissions to incoming emails
Internet of Things (IoT)
a world where interconnected, Internet- enabled devices or "things" can collect and share data without human intervention
mass customization
ability of an organization to tailor its products/services to customers
mobile business (mbusiness/mcommerce)
ability to purchase goods/services through a wireless Internet-enabled device
URL
address of file or resource on web
threat
an act or object that poses a danger to assets
product differentiation
an advantage that occurs when a company develops unique differences in its products with the intent to influence demand
information property
an ethical issue that focuses on who own information about individuals and how information can be sold and exchanged
patent
an exclusive right to make, use, and sell an invention granted by a government to the inventor
teergrubing
anti-spamming approach where the receiving computer launches a return attack against the spammer, sending email messages back to the computer that originated the suspecting spam
closed source
any propreitary software licensed under exclusive legal right of copyright holder
explicit knowledge
anything that can be documented or archived with the help of MIS
hoaxes
attack computer systems by transmitting a virus hoax, with a real virus attached
distributed denial-of-service attack (DDoS)
attacks from multiple computers that flood a website with so many requests for service that it slows down or crashes. a common type is the Ping of Death, in which thousands of computers try to access a website at the same time, overloading it and shutting it down
banner ad
box running across screen to advertise products/services of another ebusiness
black-hat hackers
break into other people's computer systems and may just look around or may steal and destroy information
management information systems (MIS)
business function which moves information about people, products, and processes across the company to facilitate decision making and problem solving
B2B
businesses buying/selling to each other over Internet
reputation system
buyers post feedback on sellers
knowledge management
capturing, evaluating, sharing info assets that provides for effective decisions and actions
polymorphic viruses and worms
change their form as they propagate
collective intelligence
collaborating/tapping into core knowledge of all employees, partners, resources
big data
collection of large, complex data sets that cannot be analyzed using traditional database methods and tools -includes both structured and unstructured data
system
collection of parts that link to achieve a common purpose Example: car
optimization
combines art along w/ science to determine how to make URLs more attractive to search engines resulting in higher search engine ranking
process
computer program that processes the data
social network
connect people by matching profiles
supply chain
consists of all parties involved, directly or indirectly in obtaining raw materials or a product
packet tampering
consists of altering the contents of packets as they travel over the internet or altering data on computer disks after penetrating a network
web log
consists of one line of information for every visitor to a website and is usually stored on a web serveer
C2B
consumer sells product/service
C2C
consumers sells goods/services to other consumers
tacit knowledge
contained in people's heads
information privacy policy
contains general information regarding information privacy
ethical computer use policy
contains general principles to guide computer user behavior
internet use policy
contains general principles to guide the proper use of the internet
source code
contains instructions written by a programmer specifying the actions to be performed by computer software
mashup
content from more than one source to create a new product/service
feedback
controls to ensure correct processing