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