ISA235 Exam Ch1 terms / responses

Efficiency Metrics

-throughput -transaction speed -system availability -information accuracy -response time

Effectiveness Metrics

-usability -customer satisfaction -conversion rates -financial

Provide an example of each of the three primary information security areas: (1) authentication and authorization, (2) prevention and resistance, and (3) detection and response.

1. Something the user knows: User ID or Password, Something the user has: Smart card or token, Something that is part of the user: fingerprint or voice 2. Encryption, time bombs, and content filtering 3. Intrusion detection software (IDS)

What is SWOT analysis? Why do we perform it?

A SWOT analysis evaluates the strengths, weaknesses, opportunities, and threats to identify significant influences that might work for or against business strategies. We do SWOT analysis' to try to recognize internal and external influences in order to plan efficient business strategies keeping these influences in mind.

Management Information Systems (MIS)

A business function, like accounting and human resources, which moves information about people, products, and processes across the company to facilitate decision making & problem solving

Semantic Web

A component of Web 3.0 that describes things in a way that computers can understand

Competitive Advantage

A feature of a product or service on which customers place a greater value than on similar offerings from competitors

Entry Barrier

A feature of a product or service that customers have come to expect and entering competitors must offer the same for survival

Business Process Model

A graphic description of a process, showing the sequence of process tasks, which is developed for a specific purpose and from a selected viewpoint

Business Process Model Notation (BPMN)

A graphical notation that depicts the steps in a business process

Authentication

A method for confirming users' identities

Following is a BPMN diagram of product return process in Walmart. Suggest one major change/improvement that you would make to convert the current (As-Is) model to a To-Be model. You are not required to redraw the model. Explain the modification you would like to make in words.

A modification that can be made to convert the As-Is model to a To-Be model is to add a fulfillment section. This section would note that the order is shipped and fulfilled, therefore making it a To-Be model.

Disruptive Technology

A new way of doing things that initially does not meet the needs of existing customers

Acceptable Use Policy (AUP)

A policy that a user must agree to follow in order to be provided access to a corporate email, information systems, and the Internet

Decryption

A process that reverses encryption, taking a secret message and reproducing the original plain text

Executive Information System (EIS)

A specialized DSS that supports senior-level executives and unstructured, long-term, nonroutine decisions requiring judgment, evaluation, and insight

Biometrics

A technique or device that examines a fingerprint, voice pattern, handwriting, or the iris or retina of the eye.

Web 1.0

A term to refer to the WWW during its first few years of operation between 1991 and 2003

Bitcoin

A type of digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank.

Mashup

A website or web application that uses content from more than one source to create a completely new product or service

Intermediaries

Agents, software, or businesses that provide a trading infrastructure to bring buyers and sellers together

Planned Downtime

Agreed time when an IT service will not be available.

Supply Chain

All parties involved, directly or indirectly, in obtaining raw materials or a product

BYOD (bring your own device)

Allowing employees to use their personal mobile devices in workplace.

What is information silo? How can system thinking overcome the negative effect of information silo?

An information silo is created when departments or groups within an organization choose not to share information or allow for knowledge to be exchanged through information systems with other groups of individuals in the same organization. System thinking is a way of helping a person to view systems from a broad perspective that includes seeing overall structures, patterns and cycles in systems, rather than seeing only specific events in the system. System thinking can help overcome the miscommunications that arise from an information silo when departments choose not to share information/allow knowledge to be exchanged because system thinking

Web 3.0

Based on "intelligent" Web applications using natural language processing, machine-based learning and reasoning, and intelligence applications

Why is it important for a company to operate cross-functionally?

Being able to operate cross-functionally will benefit a company by making them more efficient in their business processes and decrease miscommunications or errors.

Black-hat Hackers

Break into other people's computer systems and may just look around or may steal and destroy information (usually malicious)

Demonstrate how data from an IoT device can be transformed into information and business intelligence.

Businesses can use data collected from these smart devices to specifically figure out consumer tendencies and better adapt their product or create a new product to satisfy a need that is not already being satisfied.

Information Privacy Policy

Contains general principles regarding information privacy

Ethical Computer Use Policy

Contains general principles to guide computer user behavior

Switching Costs

Costs that make customers reluctant to switch to another product or service

User-contributed Content

Created and updated by many users for many users

Define critical success factors (CSFs) and key performance indicators (KPIs), and explain how managers use them to measure the success of MIS projects.

Critical Success Factors - crucial steps companies perform to achieve their goals and objectives and implement their strategies Key Performance Indicators - quantifiable metrics a company uses to evaluate progress towards critical success factors c. Strategic level focuses on CSF for effectiveness d. Managerial focuses on KPI for efficiency and CSF for effectiveness e. Operational focuses on KPI for efficiency

Critical Success Factors (CSFs)

Crucial steps companies perform to achieve their goals and objectives and implement their strategies

Information

Data converted into a meaningful and useful context (best-selling product, best customer, worst-selling product, worst customer)

Structured Data

Data that has a defined length, type, and format and includes numbers, dates, or strings such as Customer Address

Unstructured Data

Data that is not defined and does not follow a specified format and is typically free-form text such as emails, Twitter tweets, and text messages

Email Privacy Policy

Details the extent to which email messages may be read by others

We did a class exercise on direct marketing. Explain this marketing model with an example?

Direct marketing is the act of marketing directly to customers without a middleman. Examples of direct marketing are targeted ads because they market directly to customers who the business believes would benefit from the product and be interested in the product.

What is the difference between ebusiness and ecommerce?

Ebusiness Includes ecommerce along with all activities related to internal and external business operations such as servicing customer accounts, collaborating with partners, and exchanging real-time information. Ecommerce is generally the buying and selling of goods and services over the internet

What are the benefits and challenges associated with ebusiness?

Ebusiness brings many benefits because it allows businesses to reach consumers around the globe and have the ability to market more products because they aren't limited by store capacity. Some disadvantages are security of the website and the lack of personability between the customer and the seller.

Managerial Level

Employees are continuously evaluating company operations to hone the firm's abilities to identify, adapt to, and leverage change

Operational Level

Employees develop, control, and maintain core business activities required to run the day-to-day operations

Transactional Information System

Encompasses all of the information contained within a single business process or unit of work, and its primary purpose is to support the performing of daily operational or structured decisions

Describe following three e-policies that our university should implement to protect itself. Your answer should be specific to the university setting.

Ethical computers use policy: contains general principles to guide computer user behavior i. When on student Wi-Fi, only browse content that is legal and would not do any hard to anyone if they saw it by accident b. Information privacy policy: contains general principles regarding information privacy i. Students will not have their IP addresses tracked unless there is an extreme circumstance ii. Miami University content should not be shared outside of the university c. Social media policy: outlines the corporate guidelines or principles governing employee online communications i. Students are not to shame the university on social media ii. Students underage are not to post anything associated with alcohol or drugs

Clickstream Data

Exact pattern of a consumer's navigation through a site

Intrusion Detection Software

Features full-time monitoring tools that search for patterns in network traffic to identify intruders

Give an example of G2C and C2G commerce.

G2C is government to consumer and an example of this is vehicle registration. C2G is consumer to government and an example is paying an electric bill online. (B2C is like bricker & mortar or click & mortar, C2C is like eBay, C2B is like an influencer posting a review for a business, B2B is like alibaba selling products for businesses to sell)

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

Content Management System (CMS)

Helps companies manage the creation, storage, editing, and publication of their website content

Streamlining

Improves business process efficiencies by simplifying or eliminating unnecessary steps

Give an example of inbound and outbound value chain activity.

Inbound acquires raw materials and resources and distributes them to manufacturing, such as a table company receiving timber or a car company receiving steel. Outbound distributes goods and services to customers, such as a consumer purchasing that table or car.

Ebusiness

Includes ecommerce along with all activities related to internal and external business operations such as servicing customer accounts, collaborating with partners, and exchanging real-time information. Advantages: expanding global outreach, opening new markets, reducing costs, improving operations, improving effectiveness. 6 ebusiness tools: video conferencing, web conferencing, podcasting, IMing, content management system, email

What are the drivers of information age?

Information age: the present time, during which infinite quantities of facts are widely available to anyone who can use a computer The core drivers of the Information Age: Data Information Business Intelligence Knowledge Data is the raw facts that describe the characteristics of an object or an event (amount ordered, date ordered). Information is that Data converted into a useful context (best selling product, worst selling product). Business Intelligence is Information collected from multiple sources that analyzes trends, patterns, and relationships for strategic decision making (like comparing best-selling product by month with a sports season). Knowledge is skills, experience, and expertise combined with Intelligence and Information that create a person's intellectual resources (like making a daily special out of food that is soonest to expire).

Business Intelligence (BI)

Information collected from multiple sources such as suppliers, customers, competitors, partners, and industries that analyze patterns, trends, and relationship for strategic decision making

Business-facing Process

Invisible to the external customer but essential to the effective management of the business; they include goal setting, day-to-day planning, giving performance feedback and rewards, and allocating resources

Swimlane

Is used in process flow diagrams, or flowcharts, that visually distinguishes job sharing and responsibilities for sub-processes of a business process. Swimlanes may be arranged either horizontally or vertically

What are the costs associated with downtime?

Lost revenue, damage to reputation, travel or legal expenses

Strategic Level

Managers develop overall business strategies, goals, and objectives as part of the company's strategic plan

Decision Support System (DSS)

Model information using OLAP, which provides assistance in evaluating and choosing among different courses of action

Exit Barrier

Obstacles in the path of a firm which wants to leave a given market or industrial sector (write-offs, closure costs)

Disintermediation

Occurs when a business sells directly to the customer online and cuts out the intermediary

What is open-source software, and can a business use it for a social networking platforms?

Open-Source software is software where the source code is available to the public. Businesses can use open-source software to help improve already existing software as well as being able to even sell this software.

Social Media Policy

Outlines the corporate guidelines or principles governing employee online communications

Epolicies

Policies and procedures that address information management along with the ethical use of computers and the internet in the business environment

Sustaining Technology

Produces an improved product customers are eager to buy, such as a faster car or a larger hard drive.

Why is security a business issue, not just a technology issue?

Projects need to be kept confidential so that the company can continue to have a competitive edge of being first to market

Key Performance Indicators (KPIs)

Quantifiable metrics a company uses to evaluate progress towards critical success factors

Data

Raw facts that describe the characteristics of an event or object

Explain whether the following business practices are ethical or unethical. Grade will depend on how well you justify your view.

Record 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. i. Ethical ii. Information was not said to be sold to third party companies iii. Information could be used to give the customer a better experience next time they are on the site Installing software devices in workplace to capture keystrokes and mouse-clicks done by each employee. i. Unethical ii. This creates an untrustworthy place to work at. iii. Lack of trust will lead to a toxic environment and lack of productivity

Granularity

Refers to the level of detail in the model or the decision-making process

As-Is Process Model

Represents the current state of the operation that has been mapped, without any specific improvements or changes to existing processes

Multi-factor Authentication

Requires more than two means of authentication such as what the user knows (password), what the user has (security token), or what the user is (biometric verification)

Customer-facing Process

Results in a product or service that is received by an organization's external customer

Encryption

Scrambles information into an alternative form that requires a key or password to decrypt

Analyze the current security issues associated with IoT devices.

Security issues with IoT include not knowing who has access to your data and because they are connected to the internet means hackers could potentially gain access to your data and sell it or use it maliciously.

Business 2.0

See Web 2.0. Challenges: technologically dependant, info vandalism, copyright plagarism

To-Be Process Model

Shows the results of applying change improvement opportunities to to the current (as-is) process model

Artificial Intelligence

Simulates human thinking and behavior such as the ability to reason and learn

Knowledge

Skills, experience, and expertise coupled with information and intelligence that creates a person's intellectual resources

Ransomware

Software that encrypts programs and data until a ransom is paid to remove it.

Business Process

Standardized set of activities that accomplish a specific task

Explain systems thinking and how management information systems enable business communications:

Systems Thinking: a way of monitoring the entire system by viewing multiple inputs being processes or transformed to produce outputs while continuously gathering feedback on each part is information that returns to its original transmitter (input, transform, or output) and modifies the transmitter's actions. (Like a car system monitors fuel level and turns on a warning light when gas is low) Business communications are enabled by MIS because MIS functions as a transportation system for information within a company and can lead to decision making and problem solving.

Business Process Reengineering (BPR)

The analysis and redesign of workflow within and between enterprises

Ecommerce

The buying and selling of goods and services over the internet

Information Silo

The condition that exists when data are isolated in separated information systems

Demonstrate how a company can add value by using Porter's value chain analysis.

The more a company can understand business processes through Porter's value chain analysis, the better they are able to add value to what they studied. The core of Porter's value chain analysis is understanding how our business processes add value to a company. The more we understand these business processes, the more efficient we can be.

What are the different ways companies can increase the entry barrier for new entrants?

The more unique and valuable a company can make their product, the harder it will be for new entrants to compete with said product. If a company can keep prices low on their product with competitive prices, it will be hard for new entrants to match that price and still make enough profit.

Web 2.0

The next generation of Internet use - a more mature, distinctive communications platform characterized by: Content sharing through open sourcing User contributed content Collaboration inside the organization Collaboration outside the organization

Authorization

The process of giving someone permission including access levels such as file access, hours of access, and amount of storage space

Workplace Monitoring Policy

Tracks people's activities by such measures as number of keystrokes, error rate, and number of transactions processed

Unplanned Downtime

Unplanned time when system is made unavailable

Clearly explain what I mean when I say "Supply Chains are interlinked Value Chains which are sets of Business Processes". Be sure to demonstrate your understanding of all three in your reply.

Value chain looks at a specific business process while a supply chain looks at the entire network, from the beginning until the end. Supply chains are interlocked with value chains, and are the culmination of value chains, or business processes, to ultimately deliver an ultimate product. Value chain and business processes are very similar, both adding value to a product or service. A series of value chains comprise a supply chain.

Value Chain

Views a firm as a series of business processes that each add value to the product or service Bottom: business processes that acquire raw materials and manufacture, deliver, market, sell, ad provide after-sales services Top: business processes, such as firm infrastructure, human resource management, technology development, and procurement that support the primary value activities

Describe Web 1.0 along with ebusiness and its associated advantages.

Web 1.0 is defined as the "read-only" web because it was originally meant to be a place for authors to publish their work/business. Ebusiness is becoming popular and important because it allows anybody to buy anything anywhere as long as it is available online which takes the traveling aspect out of shopping.

Explain Web 2.0 and identify its four characteristics.

Web 2.0 is defined as the "read-write" web because it has integrated a lot of user- generated content such as twitter, Instagram, etc. 4 Characteristics of Web 2.0 are a rich user experience, user participation, software as a service, and mass participation.

What are the benefits and challenges associated with Business 2.0?

Web 2.0 is good because it is an immersive experience where users can interact with each other and the businesses. It offers a lot of advantages to businesses because they can interact more with their consumer base and essentially allows businesses to gather marketing data from social media. Some downsides are that people can say whatever they want and hide behind a screen while also having the ability to ruin reputations just with one viral internet message.

Describe Web 3.0 and the next generation of online business.

Web 3.0 is the next step where everything will be open sourced and allow users to surf the web without a trusted third party and without permissions or authorizations.

Which three common decision support system analysis techniques we performed in the class using MS Excel tools?

What-if Analysis - estimates quantity sold if unit price is $X b. Goal-Seeking analysis - What the price of the good should be set at to achieve sales of $X c. Optimization Analysis - At what unit price do you expect the sales to be maximized

White-Hat Hackers

Work at the request of the system owners to find system vulnerabilities and plug the holes (well intentioned)

Business Model

a plan that details how a company creates, delivers, and generates revenues

Certificate Authority (CA)

a trusted third-party organization or company that issues digital certificates (such as VeriSign)

Demonstrate the value of business process modeling and compare As-Is and To-Be models.

a. Business Process Model - a graphic description of a process, showing the sequence of process tasks, which is developed for a specific purpose and from a selected viewpoint b. As is processing model - represents the current state of the operation that has been mapped, without any specific improvements or changes to existing processes c. to be processing model - shows the results of applying change improvement opportunities to to the current (as-is) process model d. Business process model allows for the management to see inefficiencies and visualize the process.

What is a business process and what role does it play in an organization?

a. Business process - standardized set of activities that accomplish a specific task b. Allows for managers to envision how to entire company operates c. Transforms inputs into a set of outputs

What are the differences among collective intelligence, knowledge management, and crowdsourcing?

a. Collective intelligence - tapping into the core knowledge of all employees, partners, and customers b. Crowdsourcing - referring to the wisdom of the crowd. c. Knowledge management - what is done with the data and how company can use the data.

Give one example of the following Porter's strategies: Cost leadership in a broad market, Differentiation in a broad market, Cost leadership in a narrow/focused market, Differentiation in a narrow/focused market. (see the support slides of chapter 1)

a. Cost Leadership Broad Market - cheap bikes rented for anyone to use b. Differentiation broad market - high end bikes c. Cost leadership narrow market - target students for the cheapest way around town d. Differentiation in narrow market - premium bikes rented to faculty and staff

What is the difference between transaction processing system and decision support system?

a. Decision Support System - model information using OLAP, which provides assistance in evaluating and choosing among different courses of action b. Transaction Processing System - serves the operational level and assists in making structured decision c. DSS allows for more top-level management to manipulate data and make informed decisions as opposed to TPS which simply collects and stores customer data

Do you think blockchain is a disruptive technology? Why or why not?

a. Disruptive Technology - a new way of doing things that initially does not meet the needs of existing customers b. Blockchain is a disruptive technology because it has not been around that long and cryptocurrency is becoming really big so blockchain has the chance to be the next big thing in the next couple of years.

What are ethics and why are they important to a company?

a. Ethics - the principles and standards that guide our behavior toward other people b. Protect the privacy of employees c. Leads to safe workplace environment and employees will not hack the system if there is trust

Explain why hackers want to gain access to organizational data.

a. For profit - collect and sell information b. Motivated by challenge c. Holding a grudge

Describe the relationships and differences between hackers and viruses.

a. Hackers - experts in technology who use their knowledge to break into computers and computer networks, either for profit or motivated by the challenge b. Viruses - software written with malicious intent to cause annoyance or damage c. Hackers create and spread viruses

What technologies can a company use to safeguard information?

a. Information Security Policies - identify the rules required to maintain information security, such as requiring users to log off before leaving for lunch or meetings, never sharing passwords with anyone, and changing passwords every 30 days b. Multifactor authentication

What is the relationship between information management, governance, and compliance?

a. 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 b. Governance - A method or system of government for information management or control c. Compliance - act of conforming, acquiescing, or yielding information d. All of these are attempting to protect the company by keeping private information private

Explain how strategic level decision is different from operational level decision making. What MIS systems are used in these levels?

a. Strategic level decision making - managers develop overall business strategies, goals, and objectives as part of the company's strategic plan b. Operational level decision making - employees develop, control, and maintain core business activities required to run the day-to-day operations c. Strategic level uses knowledge while operational level uses information

Explain the Internet of Things and list three IoT devices.

a. The Internet of Things refers to everything being connected over the internet. b. phones, computers, and any household appliance all being connected together and sharing much of the same data.

What is Artificial intelligence? Provide an example where AI is used to make business decisions.

a. simulates human thinking and behavior such as the ability to reason and learn b. Manchester Airport in England has AI robot cleaners that use laser scanners to avoid passengers

Explain the value of business processes for a company, and differentiate between customer-facing and business-facing process.

c. Business processes can offer a competitive advantage if they enable a firm to lower costs, differentiate themselves, or target a niche market a. Customer facing process - results in a product or service that is received by an organization's external customer b. Business facing process - invisible to the external customer but essential to the effective management of the business; they include goal setting, day-to-day planning, giving performance feedback and rewards, and allocating resources