MIS CHAPTER 16 REVIEW

42. _____ is computer software that seeks to reproduce or mimic human thought, decision making, or brain functions.

Artificial intelligence software Data mining has its roots in a branch of computer science known as artificial intelligence (or AI). The goal of AI is create computer programs that are able to mimic or improve upon functions of the human brain.

38. Collaborative filtering is determining which customers are likely to leave, and what tactics can help the firm avoid unwanted defections.

FALSE Collaborative filtering is personalizing an individual customer's experience based on the trends and preferences identified across similar customers.

6. Dynamic pricing is considered especially appropriate for retailers, such as grocery stores or department stores.

FALSE Dynamic pricing is especially tricky in situations where consumers make repeated purchases and are more likely to remember past prices, and when they have alternative choices, like grocery or department store shopping.

40. One federal study showed Black and Asian people were about three times more likely than white people to be misidentified by facial recognition.

FALSE One federal study showed Black and Asian people were about 100 times more likely than white people to be misidentified by facial recognition.

transaction processing systems (TPS)

Systems that record a transaction (some form of business-related exchange), such as a cash register sale, ATM withdrawal, or product return.

R

A programming language specifically created for analytics, statistical, and graphical computing.

row or record

A row in a database table. Records represent a single instance of whatever the table keeps track of (e.g., student, faculty, course title).

data warehouse

A set of databases designed to support decision-making in an organization.

Hadoop

A set of mostly open source tools to manage massive amounts of unstructured data for storage, extraction, and computation.

expert systems

A set of technologies used in the development of AI systems that use a set of programmed decision rules or example outcomes to perform a task in a way that mimics applied human expertise.

database

A single table or a collection of related tables.

data cube

A special database used to store data in OLAP reporting.

table or file

A list of data, arranged in columns (fields) and rows (records).

online analytical processing (OLAP)

A method of querying and reporting that takes data from standard relational databases, calculates and summarizes the data, and then stores the data in a special database called a data cube.

data lake

A catch-all term for storage and access technologies used in Big Data. Data lakes are systems that allow for the storage of data in both structured as well as "raw," "unfiltered" formats. Data lakes also provide the tools to "pipe out" data, filter it, and refine it so that it can be turned into information.

column or field

A column in a database table. Columns represent each category of data contained in a record (e.g., first name, last name, ID number, date of birth).

data mart

A database or databases focused on addressing the concerns of a specific problem (e.g., increasing customer retention, improving product quality) or business unit (e.g., marketing, engineering).

Python

A general purpose programming language that is also popular for data analytics.

Big Data

A general term used to describe the massive amount of data available to today's managers. Big Data are often unstructured and are too big and costly to easily work through use of conventional databases, but new tools are making these massive datasets available for analysis and insight.

dashboards

A heads-up display of critical indicators that allow managers to get a graphical glance at key performance metrics.

structured query language (SQL)

A language used to create and manipulate databases.

business intelligence (BI)

A term combining aspects of reporting, data exploration and ad hoc queries, and sophisticated data modeling and analysis.

analytics

A term describing the extensive use of data, statistical and quantitative analysis, explanatory and predictive models, and fact-based management to drive decisions and actions.

query tools

A tool to interrogate a data source or multiple sources and return a subset of data, possibly summarized, based on a set of criteria.

machine learning

A type of artificial intelligence that leverages massive amounts of data so that computers can improve the accuracy of actions and predictions on their own without additional programming.

serverless computing

A type of cloud computing where a third-party vendor manages servers, replication, fault-tolerance, computing scalability, and certain aspects of security, freeing software developers to focus on building "Business Solutions" and eliminating the need to spend time and resources managing the technology complexity of much of the underlying "IT Solution."

deep learning

A type of machine learning that uses multiple layers of interconnections among data to identify patterns and improve predicted results. Deep learning most often uses a set of techniques known as neural networks and is popularly applied in tasks like speech recognition, image recognition, and computer vision.

supervised learning

A type of machine learning where algorithms are trained by providing explicit examples of results sought, like defective versus error-free, or stock price.

semi-supervised learning

A type of machine learning where the data used to build models contains data with explicit classifications, but is also free to develop its own additional classifications that may further enhance result accuracy.

genetic algorithms

AI technologies that seek an optimal model by transforming or "mutating" an algorithm (versus neural networks, which add weights and mappings to a combination of inputs)—iteratively testing the result and choosing the best outcome.

graphical query tools

Allow a user to create a query through a point-and-click or drag-and-drop interface, rather than requiring programming knowledge.

CAPTCHAs

An acronym standing for completely automated public Turing test to tell computers and humans apart. The Turing test is, rather redundantly, an idea (rather than an official test) that one can create a test to tell computers apart from humans.

data aggregators

Firms that collect and resell data.

5. iBeacon technology works by using ___________ technology.

Bluetooth low-energy New technologies, such as iBeacon (a tech that sends messages to iPhones using a low-energy Bluetooth signal) are being rolled out throughout MLB, making it easier to let consumers know a deal is in effect and guiding them to the quickest counter for quenching thirst and satisfying cravings.

over-engineer

Build a model with so many variables that the solution arrived at might only work on the subset of data you've used to create it.

4. _____ is a catchall term combining aspects of reporting, data exploration, and ad hoc queries, and sophisticated data modeling and analysis.

Business intelligence Business intelligence is a catchall term combining aspects of reporting, data exploration, and ad hoc queries, and sophisticated data modeling and analysis.

artificial intelligence

Computer software that can mimic or improve upon functions that would otherwise require human intelligence.

Turing test

Conceived by Alan Turing, a Turing test of software's ability to exhibit behavior equivalent to, or indistinguishable from, a human being.

deepfake

Creates bogus media—images, sound, or video—created by artificial intelligence that distort media in a way that makes it appear that a false event actually took place.

16. _____ systems are often used to empower employees to track and record data at nearly every point of customer contact.

Customer relationship management CRM or customer relationship management systems are often used to empower employees to track and record data at nearly every point of customer contact. Firms increasingly set up systems to gather additional data beyond conventional purchase transactions or Web site monitoring. A well-designed CRM system can capture all events, such as requests for quotes, complaint e-mails, or goods return, for subsequent analysis or for triggering follow-up events.

information

Data presented in a context so that it can answer a question or support decision-making.

dynamic pricing

Dynamic ticket pricing use takes off, and teams hope it'll lure fans back into sports stadiums.

33. _____ refers to identifying and retrieving relevant electronic information to support litigation efforts.

E-discovery Data archiving is not just for analytics. Sometimes the law requires organizations to dive into their electronic records. E-discovery is something a firm should account for in its archiving and data storage plans.

ETL

Extract, Transform, Load—copying data from multiple, disparately organized data sources, transforming (or cleaning) the data into a common format, and loading it into a combined usable format. ETL is a key step in getting data into a data warehouse or data mart.

27. Roughly 80 percent of corporate data is messy and unstructured, and stored in conventional, relational formats.

FALSE Roughly 80 percent of corporate data is messy and unstructured, and it is not stored in conventional, relational formats—think of data stored in office productivity documents, e-mail, call center conversations, social media, and data streaming in from disparate sensors in the Internet of Things.

28. The three "Vs" of Big Data refer to the names of the three leading commercial and open source technologies used in most of these efforts.

FALSE The three Vs of "Big Data"-volume, velocity, and variety-distinguish it from conventional data analysis problems and require a new breed of technology.

45. One career thought to be 'safe' from disruption by technology is journalist, since a computer could never write a newspaper article or a book.

FALSE There's a good chance you've been reading news items and other copy written by robo-journalists. The PA Media news service uses AI dubbed RADAR (for Reporters and Data and Robots) to write 50,000 local news stories. The AI writes the articles, but is guided by a team of just six reporters.

29. _______ is a set of mostly open source tools to manage massive amounts of unstructured data for storage, extraction, and computation.

Hadoop A data lake isn't just a holding space. You need to have the tools to pump out and clean up the data so that it can become useful information. Again, many alternatives exist. Some of these tools live under an umbrella of technologies known as Hadoop, a set of mostly open source tools to manage massive amounts of unstructured data for storage, extraction, and computation.

knowledge

Insight derived from experience and expertise.

database administrator (DBA)

Job title focused on directing, performing, or overseeing activities associated with a database or set of databases. These may include (but not necessarily be limited to): database design, creation, implementation, maintenance, backup and recovery, policy setting and enforcement, and security.

shallowfakes

Manipulating media without the using artificial intelligence. Examples might include using Photoshop or simply slowing down a video and passing the distortion off as truth.

36. L.L. Bean's rollout of Big Data efforts for improved customer service involved all of the following except: Training marketing staff On-premises technology was moved to Google's Data Cloud Reporting tools were made available to nontechnical staff Training technical staff

None of the above are incorrect—the effort leveraged all of the above. IT staff learned new skills. Marketing managers and new analytics team members were schooled in "Big Data Boot Camps" to show them how to dive deep into unstructured data to hunt down valuable insights. OLAP cubes and easy-to-use reporting tools were also made available to nontechnical team members. Later, on-premises technology was moved to Google's Data Cloud, a move that L.L. Bean claims offers faster response and lower cost.

legacy systems

Older information systems that are often incompatible with other systems, technologies, and ways of conducting business. Incompatible legacy systems can be a major roadblock to turning data into information, and they can inhibit firm agility, holding back operational and strategic initiatives.

loyalty program

Systems that provide rewards and usage incentives, typically in exchange for a method that provides a more detailed tracking and recording of customer activity. In addition to enhancing data collection, loyalty cards can represent a significant switching cost.

35. _____ refers to a method of querying and reporting that takes data from standard relational databases, calculates and summarizes the data, and then stores the data in a special database.

Online analytical processing Online analytical processing refers to a method of querying and reporting that takes data from standard relational databases, calculates and summarizes the data, and then stores the data in a special database called a data cube.

OCR

Optical Character Recognition. Software that can scan images and identify text within them.

omnichannel

Providing customers with a unified experience across customer channels, which may include online, mobile, catalog, phone, and retail. Pricing, recommendations, and incentives should reflect a data-driven, accurate, single view of the customer.

data

Raw facts and figures.

change management

Refers to techniques to facilitate organization change, including preparing individuals for change and offering training and support during and after implementation. Change management is especially important in IS use, as many information systems implementations involve radical change to the way a firm conducts business or the way individuals and teams operate within the organization.

12. Which of the following is by far the most common standard for expressing databases?

Relational databases Databases organized in a format, where multiple tables are related based on common keys, are referred to as relational databases. There are many other database formats (sporting names like hierarchical, and object-oriented), but relational databases are far and away the most popular. And all SQL databases are relational databases.

canned reports

Reports that provide regular summaries of information in a predetermined format.

49. The Walmart efficiency dance starts with a proprietary system called _________, a system originally developed in 1991 and continually refined ever since.

Retail Link The Walmart efficiency dance starts with a proprietary system called Retail Link, a system originally developed in 1991 and continually refined ever since.

transaction

Some kind of business exchange.

self-supervised learning

Sometimes called unsupervised learning, where systems build pattern-recognizing algorithms using data that has not been pre-classified.

data cloud

Sometimes referred to as cloud data warehousing, this term refers to a cloud service that provides tools to extract and transform data from disparate sources so that it can be interrogated as needed. Unlike data warehouses, data lakes, or similar tools that an organization might run on-site, a data cloud can be spun up to temporarily hold a very large amount of data for short-term use, then disbanded when it is no longer needed. Snowflake is the best known of the many firms providing services in this space.

database management system (DBMS)

Sometimes referred to as database software; software for creating, maintaining, and manipulating data.

neural networks

Statistical techniques used in AI and particularly in machine learning. Neural networks hunt down and expose patterns, building multilayered relationships that humans can't detect on their own.

32. Spotify's Echo Nest subsidiary analyzes both tracks themselves, as well as what others are saying about music in order to build automated music recommendations.

TRUE Echo Nest software can "listen" to music. It analyzes it to break down its characteristics: pitch, key, tempo, vocals or instrumental, live or studio, energy level, mood, and more. The firm's software also constantly scours the Web by"reading" music blogs, news reports, and more (as many as 10 million documents each day). The goal is to do "what a great deejay does, or the friend that you rely on musically: to better understand who you are as a fan, understand all the music that's out there, and make that connection.

43. Expert systems are used in tasks ranging from medical diagnoses to product configuration.

TRUE Expert systems are AI systems that leverage rules or examples to perform a task in a way that mimics applied human expertise. Expert systems are used in tasks ranging from medical diagnoses to product configuration.

17. Firms may turn to third parties and outside services to acquire data for predictive models.

TRUE Firms such as restaurant chain Brinker supplement their own data with external feeds on weather, employment statistics, gas prices, and other factors, and use this in predictive models that help the firm in everything from determining staffing levels to switching around menu items.

13. NoSQL technologies are often used with massive, disparately structured data.

TRUE NoSQL technologies are especially popular with Internet firms that rely on massive, unwieldy, and disparately structured data; this technology is often at the heart of what are often characterized as "big data" efforts.

50. Walmart uses Hadoop to sift through social media posts about the firm.

TRUE Walmart leverages its huge Hadoop-based data trove to support some of its data mining efforts, sifting through massive amounts of social media—Twitter posts, Facebook updates, and other so-called unstructured data—to gain insights on product offerings, sales leads, pricing, and more.

19. Which of the following is a true statement regarding the Starbucks Rewards program?

The app allows customers to scan purchases made outside the store. The Starbucks Rewards program, which combines a loyalty program with stored-value payment and ordering, is considered one of the most successful in all of retail. Starbucks has over 20 million members of the program, and the firm claims that an incredible 40 percent of the firm's overall sales are attributable to Starbucks Rewards. Nearly three-quarters of all Starbucks app users visit a store at least once a week. App users are 5.6 times more likely to visit a Starbucks every day. To capture brand loyalty outside the firm, the app even allows customers to scan purchases made outside the store—such as ground coffee bought from a grocery store.

data visualization

The graphical representation of data and information.

relational database

The most common standard for expressing databases, whereby tables (files) are related based on common keys.

e-discovery

The process of identifying and retrieving relevant electronic information to support litigation efforts.

data mining

The process of using computers to identify hidden patterns in, and to build models from, large datasets.

ad hoc reporting tools

Tools that put users in control so that they can create custom reports on an as-needed basis by selecting fields, ranges, summary conditions, and other parameters.

2. _____ is a term describing the extensive use of data, statistical and quantitative analysis, explanatory and predictive models, and fact-based management to drive decisions and actions.

analytics Analytics is a term describing the extensive use of data, statistical and quantitative analysis, explanatory and predictive models, and fact-based management to drive decisions and actions.

47. Algorithms that learn based on data that includes bias may be ______.

biased Since AI systems "learn" based on data, then any biases in data can become part of the model.

46. The ___________ nature of AI makes it especially difficult to transparently demonstrate how machine learning software has arrived at decisions.

black box The "black box" nature of machine learning, with multi-layered statistical weightings, is especially difficult to break apart in a clear demonstration of how, exactly, systems make their decisions.

18. _____ are firms that collect and resell data.

data aggregators Data aggregators are firms that collect and resell data. A report by the U.S. Federal Trade Commission highlighted Acxiom, CoreLogic, Datalogix, TransUnion, ID Analytics, Intelius, PeekYou, TowerData, and Recorded Future. The report lists categories of information collected, including a lot of what you'd expect—name, address, Social Security number, and a category labeled "ability to afford products," but also all sorts of granular categorization.

34. Data used in online analytical processing (OLAP) reporting are stored in _____.

data cubes Data used in OLAP reporting is usually sourced from standard relational databases, but it's calculated and summarized in advance, across multiple dimensions, with the data stored in a special database called a data cube.

24. A(n) _____ is a database or databases focused on addressing the concerns of a specific problem.

data mart A data mart is a database or databases focused on addressing the concerns of a specific problem. A firm may not need to keep large amounts of historical point-of-sale or transaction data in its operational systems. However, it might want past data in its data mart so that managers can hunt for patterns and trends that occur over time.

39. For ____________ to work, the organization must have clean, consistent data; and the events in that data should reflect current and future trends.

data mining For data mining to work, two critical conditions need to be present: (1) the organization must have clean, consistent data, and (2) the events in that data should reflect current and future trends. The recent financial crisis provides lessons on what can happen when either of these conditions isn't met.

26. Setting up new collection efforts, surveys, or systems to obtain the data is called ________.

data sourcing Data sourcing addresses the following questions: Can we obtain all the data we'll need? From where? Can we get it through our internal systems or from third-party data aggregators, suppliers or sales partners? Do we need to set up new collection efforts, surveys, or systems to obtain the data we need?

23. A set of databases designed to support decision making in an organization is known as a(n):

data warehouse Most organizations need to combine and reformat data from multiple sources. Firms typically need to create separate data repositories for their reporting and analytics work. Data warehouses may aggregate enormous amounts of data from many different operational systems.

10. A _____ is either a single table or a collection of related tables.

database A database is either a single table or a collection of related tables. Databases can be very numerous in certain firms and can be used in functional areas such as sales or inventory.

48. So-called ______ technology creates bogus media—images, sound, or video—creating or superimposing media in a way that makes it appear that a false event actually took place.

deepfake So-called deepfake technology creates bogus media—images, sound, or video—creating or superimposing media in a way that makes it appear that a false event actually took place.

51. Walmart stopped sharing its data assets with information brokers like ACNielsen and Information Resources because:

due to Walmart's huge scale, the agencies offered no extra value with their additional data. Many retailers pool their data by sharing it with information brokers, such as Information Resources and ACNielsen, to provide more comprehensive insight on market behavior. But Walmart's scale is so big that the additional data provided by brokers does not add much value. Thus, it no longer makes sense to allow competitors access to what happens in its own huge chunk of retail sales.

7. Changing pricing based on demand conditions is known as:

dynamic pricing Changing pricing based on demand conditions is known as dynamic pricing.

11. A phrases table, column, and row are also referred to by the names ___________ respectively.

file, field, record A table or file refers to a list of data. A column or field defines the data that a table can hold. A row or record represents a single instance of whatever the table keeps track of.

44. A(n) ______ is a model building technique in which computers examine many potential solutions to a problem, iteratively modifying various mathematical models, and comparing the modified models to search for a best alternative.

genetic algorithm A genetic algorithm is a model building technique in which computers examine many potential solutions to a problem, iteratively modifying various mathematical models, and comparing the modified models to search for a best alternative. Genetic algorithms have been used to build financial trading models, airport schedules, and designing parts for the international space station.

1. RFID technology is often used to ______________.

identify products as they move through an organization's value chain With radio frequency identification (RFID), inventory can literally announce its presence so that firms can precisely journal every hop their products make along the value chain: "I'm arriving in the warehouse," "I'm on the store shelf," "I'm leaving out the front door."

8. _____ is insight gained from experience and expertise.

knowledge Knowledge is insight gained from experience and expertise. When information, derived from data, can be combined with a manager's knowledge, stronger decisions can be made.

21. Which of the following can be a major roadblock to turning data into information, and inhibits firm agility, holding back operational and strategic initiatives?

legacy systems Legacy systems are older information systems that are often incompatible with other systems, technologies, and ways of conducting business.

15. _____ are systems that provide rewards and usage incentives, typically in exchange for a method that provides a more detailed tracking and recording of customer activity.

loyalty programs The explosion in retailer loyalty programs is directly related to each firm's desire to learn more about you and to turn you into a more loyal and satisfied customer. In addition to enhancing data collection, loyalty cards can represent a significant switching cost.

3. ___________________ refers to a type of artificial intelligence that leverages massive amounts of data so that computers can improve the accuracy of actions and predictions on their own without additional programming.

machine learning Machine learning is a type of artificial intelligence that leverages massive amounts of data so that computers can improve the accuracy of actions and predictions on their own without additional programming.

20. The problem of incompatible legacy systems limiting firms' ability to turn data into information is compounded by:

mergers and acquisitions. The legacy systems problem can be made worse by mergers and acquisitions, especially if a firm depends on operational systems that are incompatible with its partner.

37. An integrated shopping experience and unified customer view across channels is sometimes referred to as _______________.

omnichannel An integrated shopping experience and unified customer view across channels is sometimes referred to as omnichannel.

31. Systems that can absorb any type of data, structured or not, from any type of source are often referred to as:

schema-less Systems that can absorb any type of data, structured or not, from any type of source are often called schema-less.

41. ________ is machine learning where data is not explicitly labeled and doesn't have a predetermined result.

self-supervised learning Self-supervised learning is machine learning where data is not explicitly labeled and doesn't have a predetermined result.

9. You will often hear technologists refer to the SQL standard by pronouncing it as _______.

sequel The acronym SQL (often pronounced sequel) also shows up a lot when talking about databases. Structured query language (SQL) is by far the most common language for creating and manipulating databases.

22. A problem limiting the turning of data into information is that most transactional databases are not set up to be:

simultaneously accessed for reporting and analysis. A problem limiting the turning of data into information is that most transactional databases are not set up to be simultaneously accessed for reporting and analysis. If a manager asks a database that is already recording transactions to analyze historic sales trends showing the most and least profitable products over time, they may be asking a computer to look at thousands of transaction records, comparing results, and neatly ordering findings.

30. The _______ breed of cloud-based data tools is specifically designed to gather data from disparate sources and turn them into standard formats that can be interrogated by managers.

snowflake The Snowflake breed of cloud-based data tools is specifically designed to gather data from disparate sources (corporate software that a company has created and runs in-house, or even tools run as software as a service or their own custom software running on any of the large cloud platform providers) and turn them into standard formats that can be interrogated by managers.

14. A system that records business-related exchanges, such as a cash register sale, ATM withdrawal, or product return is known as a(n) _____.

transaction processing system For most organizations that sell directly to their customers, transaction processing systems (TPS) represent a fountain of potentially insightful data. Every time a consumer uses a point-of-sale system, an ATM, or a service desk, there's a transaction occurring, representing an event that is likely worth tracking.

25. Data quantity answers the question: How much data do we need?

true