W1 Lesson 1 - Introduction To Information Systems - Module (14 Files Merged)

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Introduction

INTRODUCTION TO INFORMATION SYSTEMS

This lesson provides the basics of information systems, a requirement


for everyone working in various types of organizations today.
Information technology is an extremely important and increasingly
complex component of business and professional organizations.
Decisions related to information technology and the related
information systems can be a major factor influencing an
organization's survival.

Learning Outcomes:

At the end of the lesson, you are expected to:

1. Define and understand the terms data, information,


and knowledge, and give examples of each;
2. Define and understand the terms information
technology, information system, computer-based
information system, and application;
3. Identify three ways in which you depend on information
technology in your daily life;
4. Enumerate the components of Information Technology;
5. Identify the reasons and importance of studying IS;
6. Discuss three ways in which information technology can
impact managers and three ways in which it can impact non-
managerial functions.

WHAT IS AN INFORMATION SYSTEM?


An Information System (IS) is a system composed of people and
computers that processes or interprets information. The term is also
sometimes used in more restricted senses to refer to only the software
used to run a computerized database or to refer to only a
computer system.

en.wikipedia.org/wiki/Information_system

Whereas an Information Technology (IT) is any computer-based tool


used to support needs of an organization.

INTRODUCTION TO INFORMATION SYSTEMS 1


Introduction

The five key components are :

1. Hardware
2. Software
3. Data
4. Processes
5. People

An information system is really about people and information not computers

A computer, a telephone, a fax machine, a television - think of any


machine and you will realize that it is pretty useless without people
around to use it. That is why we are all referred to in the information
systems world as "users".

1.1 Reasons for studying Information System

Why you should learn about information systems and information


technologies? The answer lies in your becoming an informed user; that
is , a person knowledgeable about an information systems and
information technology.

1.1.1 Information Technology is part of everything we do!

Computer technology is part of just about everything that touches our


lives from the cars we drive, to the movies we watch, to the ways
businesses and governments deal with us. Understanding different
dimensions of computing is part of the necessary skill set for an
educated person in the 21st century. Whether you want to be a
scientist, develop the latest killer application, or just know what it
really means when someone says “the computer made a mistake”,
studying computing will provide you with valuable knowledge.

1.1.2. Expertise in information Technology enables you to


solve complex, challenging problems.

Computing is a discipline that offers rewarding and challenging


possibilities for a wide range of people regardless of their range of
interests. Computing requires and develops capabilities in solving
deep, multidimensional problems requiring imagination and sensitivity
to a variety of concerns.

1.1.3. Information Technology enables you to make a positive


difference in the world.

INTRODUCTION TO INFORMATION SYSTEMS 2


Introduction

Computing drives innovation in the sciences (human genome project,


AIDS vaccine research, environmental monitoring and protection just
to mention a few), and also in engineering, business, entertainment and
education. If you want to make a positive difference in the world,
study computing.

1.1.4. Information Technology offers many types of lucrative


careers.

Computing jobs are among the highest paid and have the highest job
satisfaction. Computing is very often associated with innovation, and
developments in computing tend to drive it. This, in turn, is the key to
national competitiveness. The possibilities for future developments are
expected to be even greater than they have been in the past.

1.1.5. IT jobs are here to stay, regardless of where you are


located.

There actually are more computing jobs than qualified people to fill
them in the United States. The Bureau of Labor Statistics projects
growth rates between 12% and 37% in computing and information
technology occupations from 2012 through 2022. If you consider the
expected growth in computing, it’s easy to see that companies simply
need more talent. Don’t miss out on pursuing the large number of open
positions available right now.

1.1.6. Expertise in IT helps you even if your primary career


choice is something else.

Having a computing major will provide you with a foundation of


knowledge, problem solving and logical thinking that will serve as a
competitive advantage to you in your career, in whatever field you
choose.

1.1.7. Information Technology offers great opportunities for


true creativity and innovativeness.

Creating high-quality computing solutions is a highly creative activity,


and computing supports creative work in many other fields. The best
solutions in computing exhibit high levels of elegance and beauty.

1.1.8. Information Technology has space for both collaborative


work and individual effort.

INTRODUCTION TO INFORMATION SYSTEMS 3


Introduction

Computing is often about being part of a team that requires people


with many different kinds of skills. Yet there is also plenty of space for
individual flair and imagination.

1.1.9. Information Technology is an essential part of well-


rounded academic preparation.

An increasing number of universities and employers see successful


completion of a computer science course as a sign of academic well-
roundedness.

1.10. Future opportunities in IT are without boundaries.

Computing is one of those fields where it is almost impossible to


predict what will happen next. This is why we cannot even begin to
imagine all the ways that you can make a contribution to it and it can
make your life’s work exciting and real.

http://computingcareers.acm.org/?page_id=4

1.2 Overview of Computer –Based Information Systems

Organizations refer to their management information systems


functional area by several names, including the MIS Department, the
Information Systems(IS) Department, the Information Technology
Department , and Information Services Department. These functional
areas deals with the planning for, the development, management and
the use of- information technology tools to help people perform all the
tasks related to information processing and management.

An information system collects, processes, stores, analyzes, and


disseminates information for a specific purpose. Typically to provide a
feedback mechanism to meet an objective. . Because information
systems are intended to supply useful information, we need to
differentiate between information and two closely related terms: Data
and Knowledge.

INTRODUCTION TO INFORMATION SYSTEMS 4


Introduction

Data that is processed and used for decisions becomes Information.

Data = Raw Facts


(i.e. age, gender, hours worked on a particular date)

Information = Facts organized in such a way they have value beyond


the facts themselves (to help make decisions)
(i.e. % of workers under 21, total labor hours worked on a date)

Knowledge = Facts/Information that have been organized to convey


understanding and experience
(i.e. steps taken in preparation of hurricanes based on prior facts )

http://csbapp.uncw.edu/mis213/01/1-2.html

Computer Based Information Systems

A CBIS is an information system that uses computer technology to


perform some or all of its intended tasks.

A set of hardware, software, databases, networks


(telecommunications), people and procedures that are combined to
collect, manipulate, store, and process data into information

INTRODUCTION TO INFORMATION SYSTEMS 5


Introduction

http://csbapp.uncw.edu/mis213/01/1-2-2.html

1.3 IT’s Impact on Organizations/Society

• IT reduces the number of middle managers


• Changes the manager's job.
• IT impacts employees at work.
o Impacts health & safety
o Provides opportunities for those with disabilities:
visually-impaired users, hearing-impaired users, motor-
impaired users

Will IT eliminate jobs? Create jobs?

Many companies have responded to difficult economic times,


increased global competition, demands for customization, and
increased consumer sophistication by increasing their investments in
IT. In fact, as computers continue , IT creates entirely new categories
of jobs, such as electronic medical record keeping and
nanotechnology.

INTRODUCTION TO INFORMATION SYSTEMS 6


Introduction

1.4 Importance of Information to Society

• Affects our quality of life


• Improvements in Healthcare

http://csbapp.uncw.edu/mis213/01/1-3.html

Helmut (1998), cited by Akpore (1999), states that of the technological


changes that have influenced our lives in recent years, information
technology (IT) has had the greatest impact. This will continue at least
until the end of the first half of the century, when other major
technological breakthroughs in the area of new materials,
biotechnology, or energy, may provide entirely new ways of living. An
information society is one that makes the best possible use of ICTs.
Martin (1995) supports this view by describing it as a society in which
the quality of life, as well as prospects for social change and economic
development, depends increasingly upon information and its
exploitation. In such a society, living standards, patterns of work and
leisure, the education system, and marketplace are all influenced by
advances in information and knowledge. This is evidenced by an
increasing array of information intensive products and services
(Martin, 1988). Annan (2002) notes that the information society is a
way for human capacity to be expanded, built up, nourished, and
liberated by giving people access to tools and technologies, with the
education and training to use them effectively. There is a unique
opportunity to connect and assist those living in the poorest and most
isolated regions of the world.

In healthcare, IT has brought major improvements in healthcare


delivery. Medical personnel use IT to make better and faster diagnoses
and to monitor critically ill patients more accurately. IT also has
streamlined the process of researching and developing new drugs.
Expert systems now help doctors diagnose diseases, and machine
vision is enhancing the work of radiologists.

INTRODUCTION TO INFORMATION SYSTEMS 7


Introduction

Assignment

Visit some web sites in your region that offer employment opportunities in IT. Salaries offered to
accountants, marketing personnel, financial personnel, operations personnel, and human
resources personnel.

Glossary
Computer Based Information System is an information system that
uses computer technology to perform some or all of its intended tasks.

Data are raw facts

Knowledge are facts/Information that as been organized to convey


understanding and experience

Information are facts organized in such a way they have value


beyond.

Information System (IS) is a system composed of people and


computers that processes or interprets information. The term is also
sometimes used in more restricted senses to refer to only the software
used to run a computerized database or to refer to only a
computer system.

Information Technology (IT) is any computer-based tool used to


support needs of an organization.

References
Rainer, Prince (2015), Introduction to Information Systems, fifth
Edition

Joseph Valacich and Christoph Schneider. Information Systems


Today, 5th edition. Prentice Hall, 2010.

en.wikipedia.org/wiki/Information_system

http://computingcareers.acm.org/?page_id=4

http://csbapp.uncw.edu/mis213/01/1-2.html

INTRODUCTION TO INFORMATION SYSTEMS 8


Introduction

INTRODUCTION TO INFORMATION SYSTEMS 9


ORGANIZATIONAL STRATEGY, COMPETITVE ADVANTAGE, AND INFORMATION
SYSTEMS

2
ORGANIZATIONAL STRATEGY, COMPETITVE ADVANTAGE, AND INFORMATION
SYSTEMS

This lesson aims to address IT professionals to respond to the


challenges of the information revolution. How will advances in
information technology affect competition and the sources of
competitive advantage? What strategies should a company pursue to
exploit the technology? What are the implications of actions that
competitors may already have taken? Of the many opportunities for
investment in information technology, which are the most urgent?

Learning Outcomes:

1. Understand the concept of business processes, and


provide examples of business processes in the functional
areas of an organization;
2. Differentiate between the terms business process
reengineering and business process management;
3. List and provide examples of the three types of business
pressures and describe IT responses to each;
4. Identify the five competitive forces and explain how the
Internet impacts each one;
5. Describe the strategies that organizations typically adopt
to counter the five competitive forces and achieve
competitive advantage;
6. Define business - information technology alignment,
and describe the characteristics of effective alignment.

WHAT IS A BUSINESS PROCESS?

An ongoing collection of related activities that create a product or a


service of value to the organization, its business partners, and /or its
customers.

3 Fundamental Elements of a process:

1. Inputs- Materials, services and information that flow


through and are transformed as a result of process activities.

INTRODUCTION TO INFORMATION SYSTEMS 1


ORGANIZATIONAL STRATEGY, COMPETITVE ADVANTAGE, AND INFORMATION
SYSTEMS

2. Resources – people and equipment that perform process


activities
3. Outputs – the product or a service created by the process.

Methods of measuring the activities of a business process could


include:

• Customer Satisfaction
• Cost Reduction
• Cycle and Fulfillment Time (think manufacturing)
• Quality
• Differentiation
• Productivity

A cross-functional business process is one in which no single


functional area is responsible for its execution.

Below is a sample business process for an airline online ticket booking


system.

INTRODUCTION TO INFORMATION SYSTEMS 2


ORGANIZATIONAL STRATEGY, COMPETITVE ADVANTAGE, AND INFORMATION
SYSTEMS

Business Processes, BPR & BPM

Business Process Reengineering (BPR)


A radical redesign of a business process that improves it's efficiency
and effectiveness - often begins with a "clean sheet".

Business Process Management (BPM)


A management technique that includes methods and tools to support
the design, analysis, implementation, management, and optimization
of business processes.

http://csbapp.uncw.edu/mis213/02/2-1.html

BUSINESS PRESSURES, ORGANIZATIONAL RESPONSES, AND INFORMATION


TECHNOLOGY SUPPORT

Modern organizations compete in a challenging environment. To


remain competitive they must react rapidly to problems and
opportunities that arise from extremely dynamic conditions. In this
section you examine some of the major pressures confronting modern
organizations and the strategies that organizations employ to respond
to these pressures.

BUSINESS PRESSURES

The business environment is the combination of social, legal


economic, physical, and political factors in which businesses conduct
their operations. Significant changes in any of these are likely to create
business pressures on organizations.

Pressures on organizations are generated by the:

1. Global economy and strong competition facilitated by


the global, web-based platform
2. Changing nature of the workforce which is becoming
more diversified
3. Ability for workers to work from home
4. Powerful customers whose expectations increase as
they become more knowledgeable about products and
services
5. Technology innovations, and in some cases,
information overload
6. Societal issues or government regulations

INTRODUCTION TO INFORMATION SYSTEMS 3


ORGANIZATIONAL STRATEGY, COMPETITVE ADVANTAGE, AND INFORMATION
SYSTEMS

The figure shows several examples of business pressures,


organizational performance and responses, and IT support

Business Pressures can be categorized into three main categories:

1. Market pressures
2. Technology pressures
3. Societal pressures (also includes political and legal)

Organizational responses to these pressures may include:

1. Strategic systems
2. Customer focus
3. Make-to-order and mass customization
4. E-business

INTRODUCTION TO INFORMATION SYSTEMS 4


ORGANIZATIONAL STRATEGY, COMPETITVE ADVANTAGE, AND INFORMATION
SYSTEMS

http://csbapp.uncw.edu/mis213/02/2-3.html

http://csbapp.uncw.edu/mis213/02/2-3-2.html

COMPETITIVE ADVANTAGE

IT assists a firm to be more competitive (Competitive Advantage)

Competitive Advantage = a significant and (ideally) long-term benefit


to a company over its competition

Factors that lead firms to seek competitive advantage:

• Rivalry among existing competitors


• Threat of new entrants
• Threat of substitute products and services
• Bargaining power of customers
• Bargaining power of suppliers

http://csbapp.uncw.edu/mis213/02/2-4.html

STRATEGIES FOR COMPETITIVE ADVANTAGE

1. Cost Leadership Strategy – produce products and/or services at


the lowest cost in the industry.
2. Differentiation Strategy – Offer different products, services, or
product features than your competitors.
3. Innovation Strategy- introduce new products and services, add
new features to existing product and services, or develop new
ways to produce them.
4. Operational effectiveness strategy- improve the manner in
which a firm executes its internal business processes so that it
performs theses activities more effectively than its rivals.
5. Customer – orientation strategy- concentrate on making
customers happy.

BUSINESS - IT ALIGNMENT

Business-IT alignment is the tight integration of the IT function with


the organization’s strategy, mission, and goals. That is, the IT function

INTRODUCTION TO INFORMATION SYSTEMS 5


ORGANIZATIONAL STRATEGY, COMPETITVE ADVANTAGE, AND INFORMATION
SYSTEMS

directly supports the business objectives of the organization. There are


six characteristics of excellent alignment.

1. Organizations view IT as an engine of innovation that


continually transforms the business often creating new revenue
streams.
2. Organizations view their internal and external customers and
their customer service function as supremely important.
3. Organizations rotate business and IT professionals across
departments and job functions.
4. Organizations provide overarching goals that are completely
clear to each IT and business employee.
5. Organizations ensure that IT employees understand how the
company makes or loses money.
6. Organizations create a vibrant and inclusive company culture.

Business-IT alignment involves optimizing communication between


executives who make the business decisions and IT managers who
oversee the technical operations. The implementation of flexible
business plans and IT architectures, as well as effective cost allocation,
are critical components of any business-IT alignment effort. Technical
department managers can formulate and submit proposals that can be
tailored to ensure the optimum return on investment (ROI).

http://whatis.techtarget.com/definition/business-IT-alignment

INTRODUCTION TO INFORMATION SYSTEMS 6


ORGANIZATIONAL STRATEGY, COMPETITVE ADVANTAGE, AND INFORMATION
SYSTEMS

GLOSSARY
Cross-functional business process is one in which no single
functional area is responsible for its execution.

Business process is an ongoing collection of related activities that


create a product or a service of value to the organization, its business
partners, and /or its customers.

Business Process Reengineering (BPR)


A radical redesign of a business process that improves it's efficiency
and effectiveness - often begins with a "clean sheet".

Business Process Management (BPM)


A management technique that includes methods and tools to support
the design, analysis, implementation, management, and optimization
of business processes.

Competitive Advantage is a significant and (ideally) long-term


benefit to a company over its competition

Business-IT alignment is the correspondence between the business


objectives and the Information Technology (IT) requirements of an
enterprise.

REFERENCES

Rainer, Prince (2015), Introduction to Information Systems, fifth


Edition

Joseph Valacich and Christoph Schneider. Information Systems


Today, 5th edition. Prentice Hall, 2010.

http://csbapp.uncw.edu/mis213/02/2-1.html

http://csbapp.uncw.edu/mis213/02/2-3.html

http://csbapp.uncw.edu/mis213/02/2-3-2.html

http://csbapp.uncw.edu/mis213/02/2-4.html

INTRODUCTION TO INFORMATION SYSTEMS 7


ORGANIZATIONAL STRATEGY, COMPETITVE ADVANTAGE, AND INFORMATION
SYSTEMS

http://whatis.techtarget.com/definition/business-IT-alignment

INTRODUCTION TO INFORMATION SYSTEMS 8


DATA AND KNOWLEDGE MANAGEMENT

3
DATA AND KNOWLEDGE MANAGEMENT

This lesson discusses managing data, database approach,


differentiation of data warehouses and data marts as well as an
overview of knowledge management concepts and basic
methodologies.

Learning Outcomes:

1. Define and understand the terms, data, knowledge ,


information, data management, data warehouses, data
marts, data governance, and knowledge management;
2. To be able to identify the difficulties in managing data;
3. To be able to discuss the database approach;
characteristics of data warehouses and marts;
4. To be able to differentiate data warehouses and data
marts;
5. Discuss knowledge management and its life cycle.

MANAGING DATA

All IT applications require data. These data should be of high quality,


meaning that they should be accurate, complete, timely, consistent,
accessible, relevant, and concise. Unfortunately, the process of
acquiring, keeping, and managing data is becoming increasingly
difficult.

Difficulties of Managing Data

1. The amount of data increases exponentially with time.


2. Data are scattered throughout organizations, and they are
collected by many servers and locations and in different
computing systems, databases, formats, and human an
computer languages
3. Data are generated from multiple sources:
a. Internal
b. Personal
c. External
d. Click stream (from the web)

INTRODUCTION TO INFORMATION SYSTEMS 1


DATA AND KNOWLEDGE MANAGEMENT

4. Data are subject to data rot.


5. Data security quality and in integrity are critical, yet they are
easily jeopardized.
6. Duplication of data
7. Federal regulations
8. Data drowning

DATA GOVERNANCE

A control that ensures that the data entry by an operations team


member or by an automated process meets precise standards, such
as a business rule, a data definition and data integrity constraints
in the data model.

en.wikipedia.org/wiki/Data_governance

THE DATA BASE APPROACH

With database systems, it is possible to hold the facts relating to parts


of the organization on an integrated set of computer files: a database.
The ‘organization’ in this context could be the whole business or, more
likely, a part of it, such as a division or department. The various
computer applications can use this as the data source. If the functions
change, the data on the database will probably still be appropriate. If
the facts change, then the database can be amended without
redesigning the application systems. There is thus an element of data
independence between the database and the applications that use it.
The hardware and software can also be changed in order to reflect
developments in the technology without requiring substantial changes
in the application systems or the structure of the database.
Databases are arranged so that one set of software programs-the
database management systems-provides all users with the access to all
of the data. This system minimizes the following problems:

1. Data redundancy – the same data are stored in multiple


locations.
2. Data isolation – applications cannot access data associated with
other applications
3. Data inconsistency – various copies of the data do not agree.
4. Data security – because data are put in one place is database,
there is a risk of losing a lot of data at once.
5. Data integrity – data meet certain constraints

INTRODUCTION TO INFORMATION SYSTEMS 2


DATA AND KNOWLEDGE MANAGEMENT

6. Data independence – applications and data are independent of


one another; that is applications and data are not linked to each
other, so all applications are able to access the same data.

DATA WAREHOUSES AND DATA MARTS

A data mart is a simple form of a data warehouse that is focused on a


single subject (or functional area), such as Sales, Finance, or
Marketing. Data marts are often built and controlled by a single
department within an organization. Given their single-subject focus,
data marts usually draw data from only a few sources. The sources
could be internal operational systems, a central data warehouse, or
external data.

How Is It Different from a Data Warehouse?

A data warehouse, unlike a data mart, deals with multiple subject


areas and is typically implemented and controlled by a central
organizational unit such as the corporate Information Technology (IT)
group. Often, it is called a central or enterprise data warehouse.
Typically, a data warehouse assembles data from multiple source
systems.

Nothing in these basic definitions limits the size of a data mart or the
complexity of the decision-support data that it contains. Nevertheless,
data marts are typically smaller and less complex than data
warehouses; hence, they are typically easier to build and
maintain. Table A-1 summarizes the basic differences between a data
warehouse and a data mart.

Table A-1 Differences between a Data Warehouse and a Data


Mart

Category Data Warehouse Data Mart


Scope Corporate Line of Business (LOB)
Subject Multiple Single subject
Data Sources Many Few
Size (typical) 100 GB-TB+ < 100 GB
Implementation Time Months to years Months

INTRODUCTION TO INFORMATION SYSTEMS 3


DATA AND KNOWLEDGE MANAGEMENT

http://docs.oracle.com/html/E10312_01/dm_concepts.htm

Basic Characteristics of Data warehouses and data marts include the


following:

1. Organized business dimension or subject – This arrangement


differs from transactional systems, where data are organized by
business process, such as order entry, inventory control, and
accounts receivable.
2. User online analytical processing – Typically, organizational
databases are oriented toward handling transactions.
3. Integrated – data are collected from multiple systems and then
integrated around subjects.
4. Time Variant – data warehouse and data marts maintain
historical data. Unlike transactional systems, which maintain
only recent data.
5. Nonvolatile – data warehouses and data marts are nonvolatile –
that is, users cannot change or update the data.
6. Multidimensional – Typically the data warehouse or mart uses
The figure shows several examples of business pressures,
organizational performance and responses, and IT support

KNOWLEDGE MANAGEMENT

Knowledge management (KM) is the process of capturing,


developing, sharing, and effectively using organizational knowledge.
It refers to a multi-disciplined approach to achieving organizational
objectives by making the best use of knowledge.

en.wikipedia.org/wiki/Knowledge_management

Data, Information and Knowledge

Data: Facts and figures which relay something specific, but which are
not organized in any way and which provide no further information
regarding patterns, context, etc. I will use the definition for data
presented by Thierauf (1999): "unstructured facts and figures that have
the least impact on the typical manager."

Information: For data to become information, it must be

INTRODUCTION TO INFORMATION SYSTEMS 4


DATA AND KNOWLEDGE MANAGEMENT

contextualized, categorized, calculated and condensed (Davenport &


Prusak 2000). Information thus paints a bigger picture; it is data with
relevance and purpose (Bali et al 2009). It may convey a trend in the
environment, or perhaps indicate a pattern of sales for a given period
of time. Essentially information is found "in answers to questions that
begin with such words as who, what, where, when, and how many"
(Ackoff 1999).

Knowledge: Knowledge is closely linked to doing and implies know-


how and understanding. The knowledge possessed by each individual
is a product of his experience, and encompasses the norms by which
he evaluates new inputs from his surroundings (Davenport & Prusak
2000). I will use the definition presented by Gamble and Blackwell
(2001), based closely on a previous definition by Davenport & Prusak:

In order for KM to succeed, one needs a deep understanding of what


constitutes knowledge.

Figure 1.1: Data, Information, Knowledge

http://www.knowledge-management-tools.net/knowledge-information-
data.html

INTRODUCTION TO INFORMATION SYSTEMS 5


DATA AND KNOWLEDGE MANAGEMENT

A NEW LIFE CYCLE MODEL FOR KNOWLEDGE MANAGEMENT

In accordance with knowledge management literature, five


basic processes can be considered by managing knowledge.
These can be defined as creating, sharing, structuring, using,
and auditing in turn that is called “knowledge management life
cycle” model. This model makes us to understand knowledge
management processes in hierarchical order. Each model is
explained in the following paragraphs. Figure-1. Knowledge
Management Life Cycle Model.

Figure-1. Knowledge Management Life Cycle Model

http://staff.neu.edu.tr/~msagsan/files/PUBL/A-NEW-LIFE-CYCLE-
MODEL-FOR-PROCESSING-OF-KNOWLEDGE-
MANAGEMENT.pdf

INTRODUCTION TO INFORMATION SYSTEMS 6


DATA AND KNOWLEDGE MANAGEMENT

GLOSSARY Data Governance is a control that ensures that the data entry by an
operations team member or by an automated process meets precise
standards, such as a business rule, a data definition and data integrity
constraints in the data model.

A data mart is a simple form of a data warehouse that is focused on a


single subject (or functional area), such as Sales, Finance, or
Marketing.

Data warehouse deals with multiple subject areas and is typically


implemented and controlled by a central organizational unit such as
the corporate Information Technology (IT) group.

Knowledge management (KM) is the process of capturing,


developing, sharing, and effectively using organizational knowledge.
It refers to a multi-disciplined approach to achieving organizational
objectives by making the best use of knowledge.

REFERENCES

Rainer, Prince (2015), Introduction to Information Systems, fifth


Edition

Joseph Valacich and Christoph Schneider. Information Systems


Today, 5th edition. Prentice Hall, 2010.

en.wikipedia.org/wiki/Data_governance

http://docs.oracle.com/html/E10312_01/dm_concepts.htm

INTRODUCTION TO INFORMATION SYSTEMS 7


DATA AND KNOWLEDGE MANAGEMENT

en.wikipedia.org/wiki/Knowledge_management

http://www.knowledge-management-tools.net/knowledge-information-
data.html

http://staff.neu.edu.tr/~msagsan/files/PUBL/A-NEW-LIFE-CYCLE-
MODEL-FOR-PROCESSING-OF-KNOWLEDGE-
MANAGEMENT.pdf

INTRODUCTION TO INFORMATION SYSTEMS 8


TELECOMMUNICATIONS AND NETWORKING

TELECOMMUNICATIONS AND NETWORKING

The lesson provides an overview of concepts and technologies


considered to be fundamental to organizational network designs,
network applications as well as an overview of the Internet and the
World Wide Web.

Learning Outcomes:

At the end of the lesson, you are expected to:

1. Define the term computer network, and compare and contrast


the two major types of networks;
2. Differentiate the types of computer networks;
3. Differentiate between the Internet and the World Wide Web,
and describe the most common methods for accessing the
Internet;
4. Discuss the Internet and the World Wide Web;
5. Enumerate and discuss the types of web pages;
6. Identify six major categories of network applications, provide
an example of each, and explain how that application supports
business functions.

WHAT IS A COMPUTER NETWORK?


A system that connects computers and other devices via communications
media so that data and information can be transmitted among them.

Key Concepts for Computers on a Network

1. They work together


2. They are interdependent (depend on one another)
3. They exchange data with one another (two-ways)

Bandwidth is the transmission capacity (speed) of a network - measured in


bits per second (bps).

1. Broadband: cable / DSL, speeds around 1-20Mbps (1,000,000-


20,000,000 bps)

INTRODUCTION TO INFORMATION SYSTEMS 1


TELECOMMUNICATIONS AND NETWORKING

2. Narrowband: dial up, speeds around 56Kbps (56,000 bps)

Network Terminology to be familiar with:

• Nodes: any device that is connect to a network


• Client: a node that request and uses resources from other nodes
• Server: a node that shares resources with other nodes
• LAN (Local Area Network): connects two or more devices in a
limited geographical region so that every device on the
network can communicate with every other device. Usually a
LAN is connected with a physical (guided) connection. The
image below is an example of a LAN.

• WAN (Wide Area Network): networks that extend a wide


geographic area
• Enterprise Networks: several WAN's are combined within
one organization
• NIC: Network Interface Card
• Client/Server Networks: a LAN that has one machine (the
server) function as the machine where the data is stored and
then other machines (Clients) can access and save data on the
server for all other users.
• Peer to Peer Network: all PC's on the network are equal, and
data may be stored on any machine for access by other
machines on the network. (Think music files that you can
download from other users) In reality, each machine acts as a
server and client
• Routers/Bridges/Switches: - Hardware and software used to
ease the problems of linking incompatible networks. Primarily
used to route messages to proper destinations.
• Backbone: a system of routers and transmission media that
link computers on larger networks.

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Types of Computer Networks

1. Local Area Networks – connects two or more devices in a


limited geographical region. Usually in a building, so that

INTRODUCTION TO INFORMATION SYSTEMS 2


TELECOMMUNICATIONS AND NETWORKING

every device on the network can communicate with every other


device.

fig. 1 Ethernet local area network

2. Wide area networks – is a network that covers a large


geographical area. WAN typically connect multiple LAN’s.
They are generally provided by common carriers such as
telephone companies and international networks of global
communications services providers . They contain routers, a
communications processor that routes messages from LAN to
the internet, across several connected to LANs, or across a
wide area network as the Internet.

3. Enterprise networks – organizations today have multiple


LANs and may have multiple WANs. All of these networks are
interconnected to form an enterprise network computing.

INTRODUCTION TO INFORMATION SYSTEMS 3


TELECOMMUNICATIONS AND NETWORKING

Network Fundamentals
Types of Communications Media (Wired)

Twisted Pair

• Most Common Transmission Media


• Inexpensive
• Easy to work with
• Not very secure (easy to tap)
• Contains two "lightly" insulated copper wires around each
other
• Because of the "light" insulation - subject to interference from
other magnetic or electrical fields (such as other wires or
sources)
• POTS (Plain Old Telephone Service) - traditional phone lines,
can transmit at 56,000 bits per second (56Kbps)
• Newer and faster - DSL (Digital Subscriber Line) uses
traditional phone line, however with new transmission
hardware and can achieve speeds of 1 G bits

INTRODUCTION TO INFORMATION SYSTEMS 4


TELECOMMUNICATIONS AND NETWORKING

Coaxial Cable

• Carries data as electrical signals


• Heavily insulated to prevent interference
• Hundreds of times faster than POTS
• 100 times faster than ISDN
• Security is a concern (also easy to tap)
• One cable line can carry up to 1G bps + 100 analog TV signals

Fiber Optic Cable

• High Capacity
• Fast!

INTRODUCTION TO INFORMATION SYSTEMS 5


TELECOMMUNICATIONS AND NETWORKING

• Uses pulses of light to transmit data


• Not affected by weather
• Most secure, cannot tap into fiber easily, and connections
would know
• Most expensive of the 'guided' or 'wired' media
• Number of connections per line up to 32,000 voice and data
transmission
• Up to 40 Terabits per second!

http://csbapp.uncw.edu/mis213/06/6-2.html

The Internet and the World Wide Web

The Internet is a worldwide collection of networks that links millions


of businesses, government offices, educational institutions, and are
computers that manage network resources and provide centralized
storage areas, and clients, which are computers that can access the
contents of the storage areas. The data travels over communications
lines. Each computer or device on a communications line has a
numeric address called an IP (Internet protocol) address, the text
version of which is called a domain name. Every time you specify a
domain name, a DNS (domain name system) server translates the
domain name into its associated IP address, so data can route to the
correct computer.

Accessing the Internet

You can access the Internet through an Internet service provider, an


online service provider, or a wireless service provider. An Internet
service provider (ISP) provides temporary Internet connections to
individuals and companies. An online service provider (OSP) also
supplies Internet access, in addition to a variety of special content and
services. A wireless service provider (WSP) provides wireless
Internet access to users with wireless modems or Web-enabled
handheld computers or devices.

Employees and students often connect to the Internet through a


business or school network that connects to a service provider. For
home or small business users, dial-up access provides an easy and

INTRODUCTION TO INFORMATION SYSTEMS 6


TELECOMMUNICATIONS AND NETWORKING

inexpensive way to connect to the Internet. With dial-up access, you


use a computer, a modem, and a regular telephone line to dial into an
ISP or OSP. Some home and small business users opt for newer, high-
speed technologies. DSL (digital subscriber line) provides high-
speed connections over a regular copper telephone line. A cable
modem provides high-speed Internet connections through a cable
television network.

Identify A URL

The most widely used service on the Internet is the World Wide Web.
The World Wide Web (WWW or Web) consists of a worldwide
collection of electronic documents called Web pages. A browser is a
software program used to access and view Web pages. Each Web page
has a unique address, called a URL (Uniform Resource Locator),
that tells a browser where to locate the Web page. A URL consists of a
protocol, domain name, and sometimes the path to a specific Web
page or location on a Web page. Most URLs begin with http://, which
stands for hypertext transfer protocol, the communications standard
that enables pages to transfer on the Web.

The World Wide Web

The World Wide Web (www, W3) is an information system of


interlinked hypertext documents that are accessed via the Internet and
built on top of the Domain Name System. It has also commonly
become known simply as the Web. Individual document pages on the
World Wide Web are called web pages and are accessed with a
software application running on the user's computer, commonly called
a web browser. Web pages may contain text, images, videos, and
other multimedia components, as well as web navigation features
consisting of hyperlinks.

Search for Information on The Web

A search engine is a software program you can use to find Web sites,
Web pages, and Internet files. To find a Web page or pages, you enter
a relevant word or phrase, called search text or keywords, in the
search engine’s text box. Many search engines then use a program
called a spider to read pages on Web sites and create a list of pages
that contain the keywords. Any Web page that is listed as the result of

INTRODUCTION TO INFORMATION SYSTEMS 7


TELECOMMUNICATIONS AND NETWORKING

the search is called a hit. Each hit is a link that can be clicked to
display the associated Web site or Web page.

Six basic types of Web pages:

1. Advocacy Web page contains content that describes a


cause, opinion, or idea.
2. Business/marketing Web page contains content that
promotes or sells products or services.
3. Informational Web page contains factual information.
4. News Web page contains newsworthy material
including stories and articles relating to current events,
life, money, sports, and the weather.
5. Portal Web page offers a variety of Internet services
from a single, convenient location.
6. Personal Web page is maintained by a private
individual who normally is not associated with any
organization.

http://uwf.edu/clemley/cgs1570w/notes/concepts-2.htm

NETWORK APPLICATIONS
We use networks in business for a few large categories of
application:

1. Discovery
a. Search Engines (and "meta search engines" that search
OTHER search engines)
b. Translation Services, fact-checking, etc.
c. Portals (personalized gateways - like mySeaport or
iGoogle)

2. Communication

a. Electronic mail (e-mail) - the largest form of electronic


communication by volume
b. Chat rooms/Instant Messaging
c. Voice over IP or Internet Phones (skype, vonage, etc)
d. Sharing of data (video, documents, photos, etc)

INTRODUCTION TO INFORMATION SYSTEMS 8


TELECOMMUNICATIONS AND NETWORKING

e. Unified Communication: a method of trying to


integrate all forms of electronic communication under
one standardized platform or method

3. Collaboration

d. Virtual (online, not in person) collaboration


e. Workflow technologies
f. Teleconferencing
g. Videoconference
h. Telepresence (attempts to mimic real-life interactions -
like the Tupac hologram performance at Coachella)
i. Web conferencing
j. Real-time collaboration tools (Google Docs,
Sharepoint, etc)

4. Telecommuting: allows workers to work anytime and anyplace


(For example, Jet Blue does not have a call center, all reservation
agents work out of their own homes).

1. Employee Benefits
- Employee opportunities for persons with
disabilities
- Reduced travel time
2. Employee Disadvantages
- Feelings of isolation
- Slower promotions
- Workplace visibility
3. Employer Benefits
- Ability to retain skilled workers who may not
be able to work at a physical location
- Could reduce cost of office space, equipment,
etc.
4. Employer Disadvantages
- Difficulties in supervising
- Additional training costs
- Potential security issues (data must now be
transferred to many more locations)

http://csbapp.uncw.edu/mis213/06/6-4.html.

INTRODUCTION TO INFORMATION SYSTEMS 9


TELECOMMUNICATIONS AND NETWORKING

Glossary
Bandwidth is the transmission capacity (speed) of a network -
measured in bits per second (bps).

Computer Network is a system that connects computers and other


devices via communications media so that data and information
can be transmitted among them.

Hypertext transfer protocol is the communications standard that


enables pages to transfer on the Web.

Internet is a worldwide collection of networks that links millions of


businesses, government offices, educational institutions, and
individuals.

Local Area Networks connect two or more devices in a limited


geographical region. Usually in a building, so that every device on the
network can communicate with every other device

Search engine is a software program you can use to find Web sites,
Web pages, and Internet files.

URL is a Uniform Resource Locator that tells a browser where to


locate the Web page.

Wide area Network is a network that covers a large geographical


area.

World Wide Web known as WWW is an information system of


interlinked hypertext documents that are accessed via the Internet and
built on top of the Domain Name System.

References
Rainer & Prince. Introduction to Information Systems, 5th Edition.
Wiley 2015

Joseph Valacich and Christoph Schneider. Information Systems


Today, 5th edition. Prentice Hall, 2010..

http://csbapp.uncw.edu/mis213/06/6-1.html

http://csbapp.uncw.edu/mis213/06/6-2.html

INTRODUCTION TO INFORMATION SYSTEMS 10


TELECOMMUNICATIONS AND NETWORKING

http://uwf.edu/clemley/cgs1570w/notes/concepts-2.htm

http://csbapp.uncw.edu/mis213/06/6-4.html.

INTRODUCTION TO INFORMATION SYSTEMS 11


Business Intelligence

BUSINESS INTELLIGENCE

This lesson intends to stress that data analysis process aims in


boosting business performances by helping corporate executives and
other end users make more informed decisions.

Learning Outcomes:

At the end of the lesson, you are expected to:

1. Identify the phases in the decision-making process, and


use a decision-support framework to demonstrate how
technology supports managerial decision making;
2. Describe and understand the manager’s role;
3. Increase decision making skills;
4. Describe and provide examples of the different ways in
which organizations use business intelligence;
5. Specify the BI applications available to users for data
analysis, and provide examples of how each might be
used to solve a business problem at your university;
6. Describe three BI applications that present the results of
data analyses to users, and offer examples of how
businesses and government agencies can use each of
these technologies.

Managers and Decision Making

Management is process by which organizational goals are


achieved through the use of resources (people, money, energy,
materials, space, time).

Productivity
A measurement of resources used as compared to the goals met.

The Manager’s Job and Decision Making

• Interpersonal roles: figurehead, leader, liaison


• Informational roles: monitor, disseminator,
spokesperson

INTRODUCTION TO INFORMATION SYSTEMS 1


Business Intelligence

• Decisional roles: entrepreneur, disturbance handler,


resource allocator, negotiator

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A decision refers to a choice among two or more alternatives


that individuals and groups make. Decisions are diverse and are
made continuously. Decision making is a systematic process. It
starts with the intelligence phase, in which managers examine a
situation and identify and define the problem or opportunity. In
the design phase, decision makers construct a model for the
situation making assumptions that simplify the expressing the
relationships among all the relevant variables. Finally, the
choice phase involves selecting a solution or course of action
that seems best suited to resolve the problem. This solution is
then implemented. Implementation is successful if the proposed
solution solves the problem or seizes the opportunity. If the
solution fails, then the process returns to the previous phases.
Computer-based decision support assists managers in the
decision-making process.

Fig. 1: The Decision making phases and process

INTRODUCTION TO INFORMATION SYSTEMS 2


Business Intelligence

Why Managers need IT support?

1 The number of alternatives to be considered constantly


increasing. Due to innovations in technology, improved
communication, the development of global markets, and the
use o the Internet and e-business.
2 Decisions must be made under time pressure. It is often
not possible to manually process information fast to be
effective.
3 Decisions are more complex. It is usually necessary
conduct a sophisticated analysis in order to make a good
decision.
4 Decision makers can be in different locations and so is
the information. Bringing everything together quickly can
be a major challenge.

What is Business Intelligence?

The applications and technologies for consolidating, analyzing,


and providing access to vast amounts of data to help users make
better business and strategic decisions.

Business Intelligence Applications for Data Analysis

A good strategy to study the ways in which organizations use


business intelligence applications is to consider how the users
analyze data, how they present the results of their analyses, and
how managers and executives(who can be users implement the
results).

A variety of BI applications for analyzing are available these


includes:

1. Multidimensional data analysis (or online


analytical processing - OLAP) – “involves
slicing and dicing” data stores in dimensional
format, drilling down in the data to greater detail
and aggregating the data.
• Provides users with a look at what is
happening or what has happened.

INTRODUCTION TO INFORMATION SYSTEMS 3


Business Intelligence

• Allows users to analyze data in such a


way that they can quickly answer
business questions.

2. Data mining – refers to the process of searching


valuable business information in a large
database, data warehouse or data mart.

Common Data Mining Examples:

• Predicting trends and behaviors


• Identifying previously unknown patterns and
relationships
• Specific Industry Examples:
o Retail: Predicting Sales, Inventory Levels
o Banking: Determining credit approvals
o Police work: Tracking crime patterns, collecting
criminal evidence
o Healthcare: Diagnostics & symptom analysis

3. Decision support systems- Computer-based


information systems that combine models and
data in an attempt to solve problems with
extensive user involvement.

3 Common types of DSS.

• Sensitivity analysis: the study of the impact


that changes in one (or more) parts of a model
have on other parts.
• What-if analysis: the study of the impact of a
change in the assumptions (input data) on the
proposed solution.
o Example: Excel Scenario Manager
• Goal-seeking analysis: the study that attempts to
find the value of the inputs necessary to achieve a
desired level of output.
o Example: Excel Solver

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INTRODUCTION TO INFORMATION SYSTEMS 4


Business Intelligence

Business Intelligence Applications for Presenting Results

The results of the data types of the data analyses can be


presented with dashboards and data visualization technologies.

a. Digital dashboards- evolved from executive information


systems, which were information systems designed specifically
for the information needs of top executives.
b. Data visualization – after data have been processed, they
can be presented to users in visual formats such as text, graphics
and tables. This process is known as data visualization.

INTRODUCTION TO INFORMATION SYSTEMS 5


Business Intelligence

Assignment:

Provide at least 3 industries using Business Intelligence software and how it benefits them.

Glossary
Business Intelligence is the applications and technologies for
consolidating, analyzing, and providing access to vast amounts
of data to help users make better business and strategic
decisions

INTRODUCTION TO INFORMATION SYSTEMS 6


Business Intelligence

Decision refers to a choice among two or more alternatives that


individuals and groups make.

Management is process by which organizational goals are


achieved through the use of resources (people, money, energy,
materials, space, time).

Productivity
A measurement of resources used as compared to the goals met.

References
Rainer & Prince. Introduction to Information Systems, 5th
Edition. Wiley 2015

Joseph Valacich and Christoph Schneider. Information Systems


Today, 5th edition. Prentice Hall, 2010..

http://csbapp.uncw.edu/mis213/12/12-1.html

http://csbapp.uncw.edu/mis213/12/12-3.html

INTRODUCTION TO INFORMATION SYSTEMS 7


Ethics and Privacy

ETHICS AND PRIVACY

This lesson defines the competency required to contribute to ethics and


privacy in an IT environment.
It also describes the performance outcomes, skills and knowledge
required to maintain professional and ethical conduct as well as to
ensure that personal information of stakeholders is handled in a
confidential and professional manner when dealing with stakeholders
in an information technology (IT) environment.

Learning Outcomes:

At the end of the lesson, you are expected to:

1. Define and understand ethics, code of ethics and privacy;


2. Discuss the three fundamental tenets of ethics;
3. Enumerate and discuss ethical issues in Information
Technology;
4. Describe the four categories of ethical issues related to
information technology;
5. Identify places that store personal data, and identify potential
threats to the privacy of the data stored there;

6. Identify and differentiate kinds of private information

WHAT IS ETHICS?
Ethics (also moral philosophy) is the branch
of philosophy that involves systematizing, defending, and
recommending concepts of right and wrong conduct

http://en.wikipedia.org/wiki/Ethics

Code of Ethics

A collection of principles that are intended to guide decision making


by members of an organization.

INTRODUCTION TO INFORMATION SYSTEMS 1


Ethics and Privacy

Follow this link for IT code of ethics:

https://www.sans.org/security-resources/ethics.php

Fundamental Tenets of Ethics

1. Responsibility - accepting any consequences of decisions


and/or actions.
2. Accountability - determining who is responsible.
3. Liability - means that individuals have the right to recover the
damages done to them by other individuals, organizations, or
systems.

http://csbapp.uncw.edu/mis213/03/3-1.html

Ethical issues in information technology

There are many unique challenges we face in this age of information.


They stem from the nature of information itself. Information is the
means through which the minds expands and increases its capacity to
achieve its goals, often as the result of an input from another mind.
Thus, information forms the intellectual capital from which human
beings craft their lives and secure dignity.

However, the building of intellectual capital is vulnerable in many


ways. For example, people's intellectual capital is impaired whenever
they lose their personal information without being compensated for it,
when they are precluded access to information which is of value to
them, when they have revealed information they hold intimate, or
when they find out that the information upon which their living
depends is in error. The social contract among people in the
information age must deal with these threats to human dignity. The
ethical issues involved are many and varied; however, it is helpful to
focus on just four. These may be summarized by means of an acronym
-- PAPA.

1. Privacy: What information about one's self or one's


associations must a person reveal to others, under what
conditions and with what safeguards? What things can people
keep to themselves and not be forced to reveal to others?

INTRODUCTION TO INFORMATION SYSTEMS 2


Ethics and Privacy

Two forces threaten our privacy.

1.1 The growth of information technology, with its enhanced


capacity for surveillance, communication, computation,
storage, and retrieval.
1.2 More insidious threat, is the increased value of information
in decision-making. Information is increasingly valuable to
policy makers; they covet it even if acquiring it invades
another's privacy.

2. Accuracy: Who is responsible for the authenticity, fidelity and


accuracy of information? Similarly, who is to be held
accountable for errors in information and how is the injured
party to be made whole?

Misinformation has a way of fouling up people's lives,


especially when the party with the inaccurate information has
an advantage in power and authority.

3. Property: Who owns information? What are the just and fair
prices for its exchange? Who owns the channels, especially the
airways, through which information is transmitted? How
should access to this scarce resource be allocated?

One of the most complex issues we face as a society is the question of


intellectual property rights. There are substantial economic and ethical
concerns surrounding these rights; concerns revolving around the
special attributes of information itself and the means by which it is
transmitted. Any individual item of information can be extremely
costly to produce in the first instance. Yet, once it is produced, that
information has the illusive quality of being easy to reproduce and to
share with others. Moreover, this replication can take place without
destroying the original. This makes information hard to safeguard
since, unlike tangible property, it becomes communicable and hard to
keep it to one's self. It is even difficult to secure appropriate
reimbursements when somebody else uses your information.

We currently have several imperfect institutions that try to protect


intellectual property rights. Copyrights, patents, encryption, oaths of
confidentiality, and such old fashioned values as trust worthiness and
loyalty are the most commonly used protectors of our intellectual
property. Problem issues, however, still abound in this area. Let us
focus on just one aspect: artificial intelligence and its expanding
subfield, expert systems.

INTRODUCTION TO INFORMATION SYSTEMS 3


Ethics and Privacy

4. Accessibility: What information does a person or an


organization have a right or a privilege to obtain, under what
conditions and with what safeguards?

Our main avenue to information is through literacy. Each innovation


in information handling, from the invention of paper to the modern
computer, has placed new demands on achieving literacy. In an
information society a citizen must possess at least three things to be
literate:

- One must have the intellectual skills to deal with information. These
are skill such as reading, writing, reasoning, and calculating. This is a
task for education.

- One must have access to the information technologies which store,


convey and process information. This includes libraries, radios,
televisions, telephones, and increasingly, personal computers or
terminals linked via networks to mainframes. This is a problem in
social economics.

- Finally, one must have access to the information itself. This


requirement returns to the issue of property and is also a problem in
social economics.

These requirements for literacy are a function of both the knowledge


level and the economic level of the individual. Unfortunately, for
many people in the world today both of these levels are currently
deteriorating.

These are powerful factors working both for and against contemporary
literacy in our organizations and in our society.

http://www.gdrc.org/info-design/4-ethics.html

Privacy
Privacy can be defined as an individual condition of life characterized
by exclusion from publicity (Neetling et al., 1996, p. 36). The concept
follows from the right to be left alone (Stair, 1992, p. 635; Shank,
1986, p. 12)1.

As such privacy could be regarded as a natural right which provides


the foundation for the legal right. The right to privacy is therefore
protected under private law.

INTRODUCTION TO INFORMATION SYSTEMS 4


Ethics and Privacy

Different Categories of Private Information

Based on the juridical definition of privacy, two important aspects


which are of specific relevance for the information profession must be
emphasized. The first is the fact that privacy as a concept is closely
related to information - in terms of the definition of Neethling (1996,
p. 35) privacy refers to the entirety of facts and information which is
applicable to a person in a state of isolation. Each of these categories
will be briefly dealt with.

1. Private communications. This category of privacy concerns


all forms of personal communication which a person wishes to
keep private. The information exchanged during a reference
interview between the user and the information professional
can be seen as an example.
2. Privacy of the body (Westin, 1967, p. 351). This normally
refers to medical information and enjoys separate legal
protection (Neethling, 1991, p. 35-36). According to this
legislation a person has the right to be informed about the
nature of an illness as well as the implications thereof. Such a
person further has the right to privacy about the nature of the
illness and cannot be forced to make it known to others. The
only exception is when the health, and possibly the lives of
others may be endangered by the specific illness - such as the
case may be where a person is HIV positive and the chance
exists that other people may contract the virus.3 This category
of information is of specific importance for an information
professional working in a medical library.
3. Personal information. Personal information refers to those
categories of information which refer to only that specific
person, for example bibliographic (name, address) and
financial information. This type of information is of relevance
to all categories of information professionals.
4. Information about one's possessions. This information is
closely related to property right. According to this a person
does have control over the information which relates to
personal possessions in certain instances. For example, a
person may keep private the information about the place where
a wallet is kept.

http://web.simmons.edu/~chen/nit/NIT%2796/96-025-Britz.html

INTRODUCTION TO INFORMATION SYSTEMS 5


Ethics and Privacy

Glossary
Code of Ethics is a collection of principles that are intended to guide
decision making by members of an organization

Ethics (also moral philosophy) is the branch of philosophy that


involves systematizing, defending, and recommending concepts of
right and wrong conduct.

Privacy can be defined as an individual condition of life characterized


by exclusion from publicity.

References
Rainer & Prince. Introduction to Information Systems, 5th Edition.
Wiley 2015

Joseph Valacich and Christoph Schneider. Information Systems


Today, 5th edition. Prentice Hall, 2010.

http://en.wikipedia.org/wiki/Ethics

http://csbapp.uncw.edu/mis213/03/3-1.html

http://www.gdrc.org/info-design/4-ethics.html

http://web.simmons.edu/~chen/nit/NIT%2796/96-025-Britz.html

https://www.sans.org/security-resources/ethics.php

INTRODUCTION TO INFORMATION SYSTEMS 6


Information Security

INTRODUCTION TO INFORMATION SECURITY

This lesson intends to help students’ gain fundamental and


comprehensive understanding of information security and cyber
security. It focuses on an overview of major information security
issues, technologies, and approaches.

Learning Outcomes:

At the end of the lesson, you are expected to:

1. Identify the factors that contribute to the increasing


vulnerability of information resources;
2. Evaluate vulnerability of an information system and establish a
plan for risk management;
3. Compare and contrast human mistakes and social engineering;
4. Discuss the types of deliberate attacks;
5. Define the three risk mitigation strategies;
6. Differentiate Unintentional and Deliberate threats;
7. Identify the three major types of controls that organizations can
use to protect their information resources.

WHAT IS SECURITY?
It is “the quality or state of being secure—to be free from danger.”In
other words, protection against adversaries—from those who would do
harm, intentionally or otherwise—is the objective.

http://www.cengage.com/resource_uploads/downloads/1111138214_2
59146.pdf

WHAT IS INFORMATION SECURITY?

All of the processes and policies designed to protect an organization's


data and information systems from unauthorized access, use,
disclosure, disruption, modification, or destruction.

Factors contributing to vulnerability of information resources:

INTRODUCTION TO INFORMATION SYSTEMS 1


Information Security

1. Today's interconnected, interdependent, wirelessly-networked


business environment
2. Smaller, faster, cheaper computers and storage devices
3. Decreasing skills necessary to be a computer hacker
4. Increased employee use of unmanaged devices
5. Lack of management support

http://csbapp.uncw.edu/mis213/04/4-1.html

Unintentional Threats
Unintentional threats are performed WITHOUT malicious intent.
(Often unknowingly!)

These may include:

1. Natural disasters (hurricanes, tornadoes, etc.)


2. Technical Failures (hardware is not always guaranteed to
work)
3. Human Errors (lost laptops or other devices, opening emails
from unknown senders, etc.)
4. Social Engineering (use of social skills to trick someone into
providing confidential information). The person supplying the
information is the UNINTENTIONAL threat.

Businesses should establish policies to reduce human error and


other unintentional threats:

1. Changes to critical data should be monitored with permissions


to designated individuals only
2. User manuals should be developed to control access
3. Dispose all printouts appropriately (shredders)
4. Separate job functions (the programmer should not have access
to storage devices)
5. IT Auditors
6. Encryption of data
7. Keep transaction logs to see who has accessed programs and
when

http://csbapp.uncw.edu/mis213/04/4-2.html

INTRODUCTION TO INFORMATION SYSTEMS 2


Information Security

Deliberate Threat
A man-made incident that is either enabled or deliberately caused by
human beings with malicious intent, e.g.,
disgruntled employees, hackers, nation-states, organized
crime, terrorists, and industrial spies.

http://itlaw.wikia.com/wiki/Man-made_deliberate_threat

Top types of deliberate threats

• Espionage / Trespassing - spying on potential or actual


enemies primarily for military purposes. Spying involving
corporations is known as industrial espionage.
• Extortion- is a criminal offense of obtaining money, property,
or services from a person, entity, or institution, through
coercion.
• Sabotage / vandalism - a deliberate action aimed at weakening a
polity or corporation through subversion, obstruction, disruption, or
destruction. In a workplace setting, sabotage is the conscious withdrawal
of efficiency generally directed at causing some change in workplace
conditions.
• Theft (equipment, information, or identity)
• Software attacks (virus, trojan horse, worm, DOS – denial-of-
service attack, phishing (illegal attempt to acquire illegal
information, spyware, keylogger, malware/spamware, etc.)
• Many others!

A successful organization should have the following multiple layers of


security in place to protect its operations:

1. Physical security, to protect physical items, objects, or areas


from unauthorized access and misuse
2. Personnel security, to protect the individual or group of
individuals who are authorized to access the organization and
its operations
3. Communications security, to protect communications media,
technology, and content
4. Network security, to protect networking components,
connections, and contents
5. Information security, to protect the confidentiality, integrity
and availability of information assets, whether in storage,
processing, or transmission. It is achieved via the application of
policy, education, training and awareness, and technology

INTRODUCTION TO INFORMATION SYSTEMS 3


Information Security

What Organizations are Doing


1. Risk Management
Identify, control, and minimize the impact of threats.
Specifically, we are worried about threats to information
resources.
2. Risk analysis
To assess the value of each asset being protected, estimate the
probability it might be compromised, and compare the
probable costs of it being compromised with the cost of
protecting it.
3. Risk mitigation
When the organization takes concrete actions against risk. It
has two functions:

1. Implement controls to prevent identified threats from


occurring, and
2. Developing a means of recovery should the threat become a
reality.

Most common methods of risk mitigation:

1. Risk Acceptance - accept the potential risk, continue operating


with no controls, and absorb any damages that occur.
2. Risk Limitation - limit the risk by implementing controls that
minimize the impact of threat.
3. Risk Transference - transfer the risk by using other means to
compensate for the loss, such as purchasing insurance.

http://csbapp.uncw.edu/mis213/04/4-4.html

Information Security Controls


Physical Controls (doors, walls, gates, locks, badges, guards, alarms,
etc.)

Access Controls

• Authentication verifying you are who you say you are by any
of the following ways:
o Something you ARE (biometrics, fingerprints, eye
scanner, etc.)

INTRODUCTION TO INFORMATION SYSTEMS 4


Information Security

o Something you HAVE (ID card, key, etc.)


o Something you DO (vocal recognition, signatures, etc.)
o Something you KNOW (password, code, security
questions, etc.)
• Authorization granting access to data or equipment only as
needed/required

Communications Controls

• Firewalls (filters traffic in and out of a network)


• Antivirus software
• White listing and Blacklisting software or websites (allowing
or disallowing)
• Encryption (encoding data)
• Digital Certificates
• VPN (Virtual Private Network)
• Employee Monitoring Systems

Other things companies can do:

• Business Continuity Planning - have a plan in case something


happens
• Backup

INTRODUCTION TO INFORMATION SYSTEMS 5


Information Security

• Recovery
• Information Security Auditing

http://csbapp.uncw.edu/mis213/04/4-5.html

INTRODUCTION TO INFORMATION SYSTEMS 6


Information Security

Glossary
Deliberate Threats are man-made deliberate threat incident that is
either enabled or deliberately caused by human beings with malicious
intent, e.g., disgruntled employees, hackers, nation-states, organized
crime, terrorists, and industrial spies.

Information Security are the processes and policies designed to


protect an organization's data and information systems from
unauthorized access, use, disclosure, disruption, modification, or
destruction.

Security is “the quality or state of being secure—to be free from


danger.”11 In other words, protection against adversaries—from those
who would do harm, intentionally or otherwise—is the objective.

Unintentional threats are performed without malicious intent.

References
Rainer & Prince. Introduction to Information Systems, 5th Edition.
Wiley 2015

Joseph Valacich and Christoph Schneider. Information Systems


Today, 5th edition. Prentice Hall, 2010.

http://www.cengage.com/resource_uploads/downloads/1111138214_2
59146.pdf

http://csbapp.uncw.edu/mis213/04/4-1.html

http://csbapp.uncw.edu/mis213/04/4-2.html

http://itlaw.wikia.com/wiki/Man-made_deliberate_threat

http://csbapp.uncw.edu/mis213/04/4-4.html

http://csbapp.uncw.edu/mis213/04/4-5.html

INTRODUCTION TO INFORMATION SYSTEMS 7


Information Security

INTRODUCTION TO INFORMATION SYSTEMS 8


Web 2.0 and Social Networks

WEB 2.0 AND SOCIAL NETWORKS

This lesson discusses the emergence and advantages of web2.0 over


Web 1.0 technologies and traditional media, emphasizing user-
generated content, usability, and interoperability
Learning Outcomes:

At the end of the lesson, you are expected to:

1. Describe the differences between Web 1.0 and Web 2.0, and
explain the benefits of three information technologies used by
Web 2.0;
2. Identify five prominent Web 2.0 applications, and provide at
least one example of how each can be utilized in a business
setting;
3. Discuss the three categories of Web 2.0 sites, and provide at
least one example of how each can improve business efficiency
and profitability.

Web 2.0 & Web Technologies


Web 2.0
This term characterizes the onset of technologies and concepts used by
web sites that enhance the user's experience by encouraging:

1. user participation (user-generated content and updates)


2. social interaction
3. collaboration- information sharing

INTRODUCTION TO INFORMATION SYSTEMS 1


Web 2.0 and Social Networks

http://csbapp.uncw.edu/mis213/09/9-1.html

Web 1.0 vs. Web 2.0

Web 1.0
It is the “readable” phrase of the World Wide Web with flat data. In
Web 1.0, there is only limited interaction between sites and web users.
Web 1.0 is simply an information portal where users passively receive
information without being given the opportunity to post reviews,
comments, and feedback.

Web 2.0
It is the “writable” phrase of the World Wide Web with interactive
data. Unlike Web 1.0, Web 2.0 facilitates interaction between web
users and sites, so it allows users to interact more freely with each

INTRODUCTION TO INFORMATION SYSTEMS 2


Web 2.0 and Social Networks

other. Web 2.0 encourages participation, collaboration, and


information sharing. Examples of Web 2.0 applications are Youtube,
Wiki, Flickr, Facebook, and so on.

https://wittycookie.wordpress.com/2012/06/04/what-are-the-major-
differences-among-web-1-0-2-0-and-3-0/

Web 2.0 Applications


Weblog (blog for short): a personal Web site, open to the public, in
which the site creator expresses his or her feelings or opinions via a
series of chronological entries.

Wiki:a Web site on which anyone can post content and make changes
to already posted content.

Netcasting: the distribution of digital media (audio files = podcasting,


video files =videocasting) for syndicated playback on digital media
players or computers.

INTRODUCTION TO INFORMATION SYSTEMS 3


Web 2.0 and Social Networks

Crowd sourcing: process of taking a job traditionally performed by an


employee or a consultant and outsourcing it to an undefined group of
people in the form of an open call.

http://csbapp.uncw.edu/mis213/09/9-2.html

Categories of Web 2.0 Sites


Social Networking Sites: Allow users to upload their content to the
web in the form of text, voice, images, and video.

Aggregators: Provides a collection of content from the web (e.g.,


Technorati, Digg, Simply Hired).

INTRODUCTION TO INFORMATION SYSTEMS 4


Web 2.0 and Social Networks

Mashups: A web site that takes content from a number of other web
sites and mixes them together to create a new kind of content (e.g.,
SkiBonk, Healthmap, ChicagoCrime)

All of the processes and policies designed to protect an organization's


data and information systems from unauthorized access, use,
disclosure, disruption, modification, or destruction.

http://csbapp.uncw.edu/mis213/09/9-3.html

INTRODUCTION TO INFORMATION SYSTEMS 5


Web 2.0 and Social Networks

Glossary Web 1.0 is the “readable” phrase of the World Wide Web with flat
data.

Web 2.0 is the “writable” phrase of the World Wide Web with
interactive data.

Weblog is commonly known as blog. It iss a personal Web site, open


to the public, in which the site creator expresses his or her feelings or
opinions via a series of chronological entries.

INTRODUCTION TO INFORMATION SYSTEMS 6


Web 2.0 and Social Networks

Social Networking Sites allows users to upload their content to the


web in the form of text, voice, images, and video.

References
Rainer & Prince. Introduction to Information Systems, 5th Edition.
Wiley 2015

Joseph Valacich and Christoph Schneider. Information Systems


Today, 5th edition. Prentice Hall, 2010.

http://csbapp.uncw.edu/mis213/09/9-1.html

https://wittycookie.wordpress.com/2012/06/04/what-are-the-major-
differences-among-web-1-0-2-0-and-3-0/

http://csbapp.uncw.edu/mis213/09/9-2.html

http://csbapp.uncw.edu/mis213/09/9-3.html

INTRODUCTION TO INFORMATION SYSTEMS 7


e-business and e-commerce

E-BUSINESS AND E-COMMERCE

This lesson provides an overview of e-business and e-commerce


perspectives. It is designed to familiarize students with current
emerging electronic technologies using the Internet for business
advantage, e-payments, and other opportunities in the electric world.
The lesson also tackles ethical concerns associated with e-commerce.

Learning Outcomes:

At the end of the lesson, you are expected to:.

1. Define and appreciate e-commerce and e-business ;


2. Identify the difference between e-commerce and e-business;
3. Discuss the common types of electronic commerce;
4. Appreciate the benefits of e-commerce;
5. Enumerate and appreciate the different methods of an e-
payments;
6. Appreciate the benefits of e-payments;
7. Discuss the ethical and legal issues in e-business and e-
commerce;

OVERVIEW OF E-BUSINESS AND E-COMMERCE

Any entrepreneur or company that decides to practice electronic


commerce must develop a strategy to do so effectively. The first step
is to determine exactly why you want to do business over the internet
using a Website. There are several reasons for employing the
Websites:

1. To sell goods and services;


2. To induce people to visit a physical location;
3. To reduce operation and transaction costs;
4. To enhance your reputation.

WHAT IS E-COMMERCE?

Describes the buying, selling, transferring or exchanging of products,


services, information via computer networks.

INTRODUCTION TO INFORMATION SYSTEMS 1


e-business and e-commerce

WHAT IS E-BUSINESS?
the application of information and communication technologies (ICT)
in support of all the activities of business.

http://en.wikipedia.org/wiki/Electronic_business

Broader definition - includes e-Commerce, but also servicing


customers, collaborating with partners, conducting e-Learning and
conduction electronic transactions within an organization

E-Commerce and E-Business


The terms e-commerce' and `e-business' are often used
interchangeably but what do these words really mean?

E-commerce refers to online transactions - buying and selling of goods


and/or services over the Internet. E-business covers online
transactions, but also extends to all Internet based interactions with
business partners, suppliers and customers such as: selling direct to
consumers, manufacturers and suppliers; monitoring and exchanging
information; auctioning surplus inventory; and collaborative product
design. These online interactions are aimed at improving or
transforming business processes and efficiency

http://www.grin.com/en/e-book/280494/introduction-to-e-commerce-
technology-in-business

Types of E-commerce
• B2C - Business to Consumer - customers (individuals) deal
directly with a firm, avoiding intermediaries such as retail
stores.
• B2B - Business to Business customers (business organizations)
deal directly with a firm, avoiding intermediaries such as retail
stores.
• C2C - Consumer to consumer - individuals sells products or
services directly to other individuals.
• B2E - Business-to-Employee - An organization uses e-
commerce internally to provide information and services to its
employees. Companies allow employees to manage their
benefits, take training classes electronically as well as buy
discounted insurance, travel packages, and event tickets.

INTRODUCTION TO INFORMATION SYSTEMS 2


e-business and e-commerce

• E-government - the use of Internet Technology in general and


e-commerce in particular to deliver information about public
services to citizens (called Government-to-citizen [G2C EC]),
business partners and suppliers (called government-to-business
[G2B EC])
• M-commerce - Mobile Commerce - E-commerce that is
conducted in a wireless environment (i.e. smart phones).

http://csbapp.uncw.edu/mis213/07/7-1.html

Benefits of e-Commerce

1. To Organizations
a. national and international markets are more accessible
b. lowers costs of processing, distribution and retrieving
information
2. To Customers

a. 24/7 accessibility
b. more powerful with ability to research before buying

3. To Society

a. ability to deliver information, services, and products to


people in cities, rural areas and developing countries

Limitations of E-commerce

1. Technological Limitations

a. lack of universal accepted security standards


b. insufficient telecommunications bandwidth (Internet
speed)
c. expensive accessibility

2. Non-technological Limitations

a. perception that E-commerce is unsecure


b. critical mass of sellers and buyers in all countries

INTRODUCTION TO INFORMATION SYSTEMS 3


e-business and e-commerce

Business-to-Consumer (B2C) Electronic Commerce

Business to Customer or B2C refers to e-commerce activities that are


focused on consumers rather than on businesses. For instance, a book
retailer would be a B2C company such as Amazon.com and other
companies that follow a merchant model or brokerage business
models. Other examples could also be purchasing services from an
insurance company, conducting online banking and employing travel
services.

Common Types of B2C E-commerce

• Cyber banking
• Online securities trading
• Online job market
• Travel services
• E-tailing
o E-storefronts (one business selling their products)
o E-malls (multiple businesses selling their products)

• Electronic Auctions

INTRODUCTION TO INFORMATION SYSTEMS 4


e-business and e-commerce

Business-to-Business (B2B) Electronic Commerce

If your business is focused on selling products or services to other


companies, your model is called B2B, or business-to-business. In
contrast with the business-to-consumer or consumer-to-
business models, B2B facilitates the transfer of raw materials, parts
and components from which additional profit is derived, through
manufacturing or final sales to consumers.

ELECTRONIC PAYMENTS

e-payment is a subset of an e-commerce transaction to


include electronic payment for buying and selling goods or services
offered through the Internet. Generally we think ofelectronic
payments as referring to online transactions on the internet, there are
actually many forms of electronic payments.

www1.american.edu/initeb/sm4801a/epayment1.htm

When it comes to payment options, nothing is more convenient than


electronic payment. You don't have to write a check, swipe a credit
card or handle any paper money; all you have to do is enter some
information into your Web browser and click your mouse. It's no

INTRODUCTION TO INFORMATION SYSTEMS 5


e-business and e-commerce

wonder that more and more people are turning to electronic payment --
or e-payment -- as an alternative to sending checks through the mail.

Methods and Types of Electronic Payment

1. One-time customer-to-vendor payment


2. Recurring customer-to-vendor payment
3. Automatic bank-to-vendor payment

http://money.howstuffworks.com/personal-finance/online-
banking/electronic-payment1.htm

Benefits of Electronic Payment

1. Electronic payment is very convenient for the consumer


2. Electronic payment lowers costs for businesses
3. helps businesses improve customer retention.

http://money.howstuffworks.com/personal-finance/online-
banking/electronic-payment2.htm

Ethical and Legal Issues

Biggest Ethical Issues

• Privacy

An individual's right to privacy is not explicitly guaranteed by


the businesses many times, but protection from government
intrusion should be implicitly guaranteed. With widely usage
of the Internet , the right to individual privacy moved beyond
private property. The Internet is currently a self regulated
medium. The Internet industry essentially governs itself. This
condition enables the Internet to grow without the constraints
of legislation, but it also creates problems because there are
few specific guidelines to follow

http://ocw.metu.edu.tr/pluginfile.php/355/mod_resource/conten
t/0/Lecture_5.pdf

• Channel Conflict

A situation when a producer or supplier bypasses the


normal channel of distribution and sells directly to the end

INTRODUCTION TO INFORMATION SYSTEMS 6


e-business and e-commerce

user. Selling over the internet while maintaining a physical


distribution network is an example of channel conflict.

Legal Issues related to E-commerce

• Fraud - fake stocks, investments, business opportunities,


auctions, identity theft.
• Domain Names - problems with competition.
• Cyber squatting - refers to the practice of registering domain
names solely for the purpose of selling them later at a higher
price.
• Taxes and other Fees - when and where (and in some cases
whether) electronic sellers should pay business license taxes,
franchise fees, gross-receipts taxes, excise taxes, etc.
• Copyright - protecting intellectual property in e-commerce
and enforcing copyright laws is extremely difficult.

INTRODUCTION TO INFORMATION SYSTEMS 7


e-business and e-commerce

Glossary
e- business is the application of information and communication
technologies (ICT) in support of all the activities of business.

e- commerce is the buying, selling, transferring or exchanging of


products, services, information via computer networks.

e-payment is a subset of an e-commerce transaction to


include electronic payment for buying and selling goods or services
offered through the Internet.

REFERENCES

Rainer, Prince (2015), Introduction to Information Systems, fifth


Edition

Joseph Valacich and Christoph Schneider. Information Systems


Today, 5th edition. Prentice Hall, 2010..

http://en.wikipedia.org/wiki/Electronic_business

http://www.grin.com/en/e-book/280494/introduction-to-e-commerce-
technology-in-business

http://csbapp.uncw.edu/mis213/07/7-1.html

http://money.howstuffworks.com/personal-finance/online-
banking/electronic-payment1.htm

http://money.howstuffworks.com/personal-finance/online-
banking/electronic-payment2.htm

INTRODUCTION TO INFORMATION SYSTEMS 8


e-business and e-commerce

www1.american.edu/initeb/sm4801a/epayment1.htm

http://ocw.metu.edu.tr/pluginfile.php/355/mod_resource/content/0/Lec
ture_5.pdf

INTRODUCTION TO INFORMATION SYSTEMS 9


Wireless, Mobile Computing, and Mobile Commerce

10

Wireless, Mobile Computing, and Mobile Commerce

This lesson introduces the technologies, applications, services and


business models associated with Wireless, Mobile computing and m-
Commerce as well as provide a brief overview of business strategies,
models, management paradigms, architectures, infrastructure,
strengths and weaknesses

Learning Outcomes:

At the end of the lesson, you are expected to:.

1. Discuss the main types of wireless transmission media;


2. Identify the advantages and disadvantages of each type;
3. Discuss the basic purposes of short-range, medium-
range, and long-range networks, and explain how
businesses can use at least one technology employed by
each type of network;
4. Discuss the major m-commerce applications and its
benefits;
5. Define and understand pervasive computing;
6. Discuss the major threats to wireless networks, and
explain, with examples, how each one can damage a
business.

Wireless Technologies
Wireless technologies include both wireless devices, such as smart
phones, and wireless transmission media, such as microwave, satellite,
and radio. These technologies are fundamentally changing the way
organizations operate.

Individuals are finding wireless devices convenient and productive to


use, for several reasons. First , people can make productive use of time
that was formerly wasted. Second, because people can take these
devices with them, their work locations are becoming more flexible.
Third, wireless technology enables them to schedule their working
time around personal and professional obligations.

Advantages of Wireless Devices

1. They are small enough and easily carry or wear;

INTRODUCTION TO INFORMATION SYSTEMS 1


Wireless, Mobile Computing, and Mobile Commerce

2. they have sufficient computing power to perform


productive tasks;
3. They can communicate wirelessly with the Internet and
other devices.

Wireless Networks and Internet Access


Short Range Network
Personal wireless network used to communicate via short distances
between computer devices (smart phone, printers etc.)

Bluetooth: can link up to eight devices within a 30-foot area and


transmit up to 2.1 megabits per second.

Ultra-wideband: high-bandwidth wireless technology with


transmission speeds in excess of 100 megabits per second.
Near-field Communications: shortest range of any wireless network;
designed to be embedded in mobile devices such as cell phones and
credit cards.

Medium Range Network


A wireless local area network (WLAN) connects a limited
number of users of up to several hundred feet

INTRODUCTION TO INFORMATION SYSTEMS 2


Wireless, Mobile Computing, and Mobile Commerce

O Wireless Fidelity (WiFi): a protocol used in wireless local


area networks
O Wireless access point: a transmitter with an antenna
O Hotspot: a geographical perimeter within which a wireless
access point provides wireless access for users
O Wireless network interface card (NIC): enables wireless
devices to communicate
• Low cost
• Used in many private homes
• Security is a concern over public networks that are not secure

Wide Area Wireless Network


For up to 30 miles and faster data transmission

WiFi Mesh networks: use multiple WiFi access points to create a


wide-area network that can be very large. Mesh networks are
essentially a series of interconnected local area networks.

WiMax (aka Wireless Broadband): long-distance and high-


bandwidth protocol similar to WiFi.

INTRODUCTION TO INFORMATION SYSTEMS 3


Wireless, Mobile Computing, and Mobile Commerce

Mobile Computing and Commerce


Mobile Computing
Refers to real-time, wireless connection between a mobile device and
other computing environments, such as the Internet and an intranet.

Can break barriers of geography and time:

1. Ubiquity: mobile device can provide information and


communications regardless of user's location.
2. Convenience and Instant Connectivity: Internet-enabled
mobile device makes it easy and fast to access the Web,
intranets, and other mobile devices without booting up a PC or
placing a call.
3. Personalization: information can be customized and sent to
individual consumers (e.g., as a short message service).
4. Localization of products and services: knowing a user's
location helps companies advertise their products and services.

5. Mobile Commerce
Refers to electronic commerce transactions that are conducted
in a wireless environment, especially via the Internet and is
driven by:

a. Widespread availability of mobile devices


b. No need for a PC
c. "Cell Phone" culture
d. Declining prices
e. Bandwidth improvements

Pervasive Computing
Pervasive Computing or Ubiquitous Computing
The concept of invisible "everywhere computing" that is embedded in
t he objects around us – the floors, the lights, our cars, washing
machine, microwave oven, cell phones, clothes, and so on. (e.g., smart
home, smart appliances)

Radio frequency identification (RFID) technology allows


manufacturers to attach tags with antennas and computer chips on
goods and then track their movement through radio signals.

INTRODUCTION TO INFORMATION SYSTEMS 4


Wireless, Mobile Computing, and Mobile Commerce

Wireless Security
Clearly, wireless networks provide numerous benefits for businesses.
However, they also present a huge challenge to management – namely,
their inherent lack of security. Wireless is a broadcast medium, and
transmissions can be intercepted by anyone who is close enough and
has access to the appropriate equipment. There are four major threats
to wireless network:

1. Rogue access point: is an unauthorized access point to a


wireless network.
2. War driving: is the act of locating WLANs while driving
around a city or elsewhere.
3. Eavesdropping: refers to efforts by unauthorized users to try
to access data traveling over wireless networks.
4. RF (Radio frequency) jamming: is when a person or a device
intentionally or unintentionally interferes with your wireless
network transmissions.

INTRODUCTION TO INFORMATION SYSTEMS 5


Wireless, Mobile Computing, and Mobile Commerce

Glossary
Mobile Computing refers to real-time, wireless connection between a
mobile device and other computing environments, such as the Internet
and an intranet.

Pervasive Computing or Ubiquitous Computingi s the concept of


invisible "everywhere computing" that is embedded in the objects
around us – the floors, the lights, our cars, washing machine,
microwave oven, cell phones, clothes, and so on

Radio frequency identification (RFID) technology allows


manufacturers to attach tags with antennas and computer chips on
goods and then track their movement through radio signals.

Wireless Technologies include both wireless devices, such as smart


phones, and wireless transmission media, such as microwave, satellite,
and radio.

INTRODUCTION TO INFORMATION SYSTEMS 6


Wireless, Mobile Computing, and Mobile Commerce

REFERENCES

Rainer, Prince (2015), Introduction to Information Systems, fifth


Edition

Joseph Valacich and Christoph Schneider. Information Systems


Today, 5th edition. Prentice Hall, 2010..

http://csbapp.uncw.edu/mis213/08/8-1.html

INTRODUCTION TO INFORMATION SYSTEMS 7


Information Systems within Organization

11

INFORMATION SYSTEMS WITHIN ORGANIZATION

The main focus of this lesson is on how students will understand the
application of information systems in organizations. This course builds
on that knowledge and focuses on the organizational environments in
which information systems are used and the business problems they
can help solve.

Learning Outcomes:

At the end of the lesson, you are expected to:

1. Define and understand Transactions processing systems;


2. Explain the purpose of transaction processing system;
3. Identify the functional areas in information systems;
4. Define and understand Enterprise Resource Planning;
5. Explain the purpose of enterprise resource planning systems;
6. Enumerate and discuss the advantages and some disadvantages
of ERP systems;
7. Discuss the three major types of reports generated by the
functional area information systems and enterprise resource
planning systems.

TRANSACTION PROCESSING SYSTEMS


Supports the monitoring, collection, storage and processing of data
worthy of being captured and stored in a database.

Examples may include:

1. products manufactured
2. sales made
3. persons hired
4. payroll check generated
5. etc.

INTRODUCTION TO INFORMATION SYSTEMS 1


Information Systems within Organization

The above example of TPS collects data continuously, typically in a


real time- that is, as soon as the data are generated – and it provides the
input data for the corporate databases.

Two ways how Transaction Processing Systems (TPS) are being


processed:

1. Batch Processing is when the firm collects data from


transactions as they occur, placing them in groups, or batches,
then prepares and processes the batches periodically (say,
every night).

2. Online Transaction Processing (OLTP) is when business


transactions are processed online as soon as they occur.

Many TPSs take advantage of source data automation. Source data


automation involves collecting data from sensors (e.g., barcode
scanners) that allows data entry directly into a computer without
human intervention.

Functional Area Information Systems

Each department or functional area within an organization has its own


collection of application programs, or information systems. Each of
these functional area information systems supports a particular
functional area in the organization by increasing each area’s internal
efficiency and effectiveness. FAIS’s often convey information in a
variety of reports.

Examples are:

INTRODUCTION TO INFORMATION SYSTEMS 2


Information Systems within Organization

• Finance (FIN): provide internal and external professional


access to stock, investment and capital spending information.
• Accounting (ACC): similar to financial MIS, more related to
invoicing, payroll, receivables.
• Marketing (MKT): pricing, distribution, promotional, and
information by customer and salesperson.
• Operations (OPS): regular reports on production, yield, quality,
inventory levels. These systems typically deal with
manufacturing, sourcing, and supply chain management.
• Human Resources Management (HR): employees, benefits,
hiring’s, etc.
• A summary of capabilities of a FAIS are organized by
functional area in the following chart:

INTRODUCTION TO INFORMATION SYSTEMS 3


Information Systems within Organization

ENTERPRISE RESOURCE PLANNIG

Is business management software—typically a suite of integrated


applications—that a company can use to collect, store, manage and
interpret data from many business activities, including:

• Product planning, cost


• Manufacturing or service delivery
• Marketing and sales
• Inventory management
• Shipping and payment

ERP provides an integrated view of core business processes, often in


real-time, using common databases maintained by a database
management system. ERP systems track business resources—
cash, raw materials, production capacity—and the status of business
commitments: orders, purchase orders, and payroll. The applications
that make up the system share data across the various departments
(manufacturing, purchasing, sales, accounting, etc.) that provide the
data.[1] ERP facilitates information flow between all business
functions, and manages connections to outside stakeholders.
http://en.wikipedia.org/wiki/Enterprise_resource_planning

That is, ERP systems are designed to break down the information
silos of an organization.

These silos did not communicate well with one another , and this lack
of communication and integration made organizations less efficient.
This inefficiency was particularly evident in business process that
involve more than one functional area, such as procurement and
fulfillment.

INTRODUCTION TO INFORMATION SYSTEMS 4


Information Systems within Organization

Old "Information Silos" Way of Business

An ERP is a set of highly integrated systems that help monitor, track


and assist in decision making. All phases of an organization
communicate with one system that gathers a consistent set of data. The
system can help "manage" portions of the business.

Key advantages include:

• Organizational flexibility
• Decision Support
• Quality and Efficiency
o Error reduction
o Reduced redundancy
• Decreased costs (over time)

Disadvantages may be:

• Usually generic in nature


• Can be costly to customize
• May have complex interconnections and take lots of time (and
money!) up front
• Training

INTRODUCTION TO INFORMATION SYSTEMS 5


Information Systems within Organization

Example of an ERP System

ERP II Systems include the "sharing" capabilities to Suppliers


or Customers. Typically this is done through secure channels
and networks or Virtual Private Networks (VPNs).

Reports
Many Information Systems generate reports that collect and organize
data into presentable & readable information.

Types of Reports (3 major categories)

1. Routine reports (i.e. monthly or weekly sales reports by


product)
2. Ad hoc (on demand) reports (i.e. how many surplees did we
sell did we sell this week)
o Drill-down reports (i.e. how many surplees did we sell
this week for store 134)
o Key-indicator reports (i.e. what is our cash inflow
versus outflow for a week)

INTRODUCTION TO INFORMATION SYSTEMS 6


Information Systems within Organization

o Comparative reports (i.e. what are the sales of


watermelon surplees versus lime surplees)
3. Exception reports (i.e. details stores that are not close to the
average surplee versus total sales)

INTRODUCTION TO INFORMATION SYSTEMS 7


Information Systems within Organization

Glossary
Batch Processing is when the firm collects data from transactions as
they occur placing them in groups, or batches, then prepares and
processes the batches periodically.

Enterprise Resource Planning is business management software—


typically a suite of integrated applications—that a company can use to
collect, store, manage and interpret data from many business activities.

Online Transaction Processing (OLTP) is when business


transactions are processed online as soon as they occur.

Transaction processing systems supports the monitoring, collection,


storage and processing of data worthy of being captured and stored in
a database.

REFERENCES

Rainer, Prince (2015), Introduction to Information Systems, fifth


Edition

Joseph Valacich and Christoph Schneider. Information Systems


Today, 5th edition. Prentice Hall, 2010..

http://en.wikipedia.org/wiki/Enterprise_resource_planning
http://csbapp.uncw.edu/mis213/10/10-1.html

INTRODUCTION TO INFORMATION SYSTEMS 8


Information Systems within Organization

INTRODUCTION TO INFORMATION SYSTEMS 9


Extending the Organizations to Customers

12

EXTENDING THE ORGANIZATIONS TO CUSTOMERS

The lesson provides students with a working knowledge of the


principles and best practices for managing customer relationships.
Students learn how to quantify customer orientation and how to
develop relationship-driven customer management systems based on
the judicious use of resources born from a decisive strategic plan.

Learning Outcomes:

At the end of the lesson, you are expected to:

1. Define customer relationship management, customer touch


points and Operational CRM Systems and Analytical CRM
systems;
2. Enumerate and discuss the goals of CRM;
3. Identify the basic principles of CRM;
4. Differentiate the two major components of operational CRM
systems;
5. Discuss the purpose of analytical CRM Systems.

CUSTOMER RELATIONSHIPMANAGEMENT (CRM)

A customer focused and customer driven organizational strategy. That


is, organizations concentrate on assessing customers’ requirements for
products and services and then providing high-quality, responsive
service.

Goals of CRM:

1. Customer Satisfaction

Every company wants their customers to be satisfied. Satisfied


customers are more likely to return to make further purchases, as well
as promote a company’s good name and make recommendations to
others. Customers more than ever want to feel engaged with the
companies that they are dealing with and so if they feel like they are
being listened to, consulted with and respected, they will have a better

INTRODUCTION TO INFORMATION SYSTEMS 1


Extending the Organizations to Customers

user experience which will make them more likely to return.

2. Run an Efficient Business


Using CRM can help businesses to develop better working practices,
especially with departments such as customer service. Implementing
CRM services through your business can help you react to customers’
queries and concerns quicker and more efficiently, which will boost
your productivity as well as adding to customer satisfaction.

3. Produce Better Marketing Campaigns

If you can work out who to target and what communications they
respond to best, then you will be able to produce more efficient
marketing campaigns. CRM data can show you this and enable you to
profile target groups which may be underperforming in order to try
and boost this area of your business, with the goal of boosting profits.

4. Gaining New Customers

CRM will help you find out a lot of useful information about your
customer base, and will allow you to work out where there are gaps
that need to be filled. Exploring the reasons why customers fail to
make purchases or why they may not rate your company’s services can
help you adapt new policies and techniques which may help you
attract new customers. The same principals apply to working out why
previous customers have stopped using your services or why they
might have turned to your competitors.

5. Boost Sales

Finally, this last objective is what drives all of the other objectives
above. With so much competition in the market today, it is important
more than ever that businesses stay relevant and keep offering new
things to their clients. By improving the way your business operates,
how the customer interacts with your business and producing effective

INTRODUCTION TO INFORMATION SYSTEMS 2


Extending the Organizations to Customers

marketing strategies, you can hope to improve the way your business
is viewed and encourage new customers, as well as ensuring that
existing ones keep coming back. This will boost your profits and help
keep your company ahead of its competitors.

http://crmsystems.expertmarket.co.uk/top-5-crm-goals

Tenets of CRM (Basic Principles)

1. Create a one-to-one relationship between a customer and a seller.

2. “Treat each customer differently.”

3. Keep profitable customers and maximize lifetime revenue from


them.

Customer Touch Points

Organizations must recognize the numerous and diverse interactions


that they have with their customers. These various types of interactions
are referred to as customer touch points. Traditional customer touch
pointes include telephone contact, direct mailings, and actual physical
interactions with customers during their visits to a store.
Organizational CRM systems, however, must manage many additional
customer touch points that occur through the use of popular personal
technologies. These touch points includes e-mail Web sites, and
communications via smart phones. See figure below.

Data can be gathered and analyzed from customers using what are
known as customer touch points. These are points at which
interactions may allow an organization to practice the above Tenets of
CRM

INTRODUCTION TO INFORMATION SYSTEMS 3


Extending the Organizations to Customers

Operational CRM Systems


Supports front – office business processes. Front – office processes are
those that directly interact with customers; that is, sales, marketing,
and service.

2 major components of operational management:

1. Customer –facing applications


An organization’s sales, field service, and customer interaction
center representatives interact directly with customers. These
applications include customer service and support, sales force
automation, marketing, and campaign management.
2. Customer-touching application.
In contrast with customer-facing applications, where
customers deal directly with a company representative,
customers interact directly with these technologies and
applications. Such applications are called customer-touching
CRM applications or electronic CRM (e-CRM) application.

Benefits of Operational CRM systems

1. Efficient , personalized marketing, sales and service;


2. A 360 – degree view of each customer;
3. The ability of sales an service employees to access history o
customer interaction with the organization, regardless of the
touchpoint.

Analytical CRM Systems


Uses customer behavior and perceptions in order to provide actionable
business intelligence (back-end). Important technologies in analytical
CRM systems include:

• Data warehouses
• Data mining
• Decision support

Analytical CRM systems analyze customer data for a variety of


purposes, including:

1. Designing and executing targeted marketing campaigns;


2. Interacting customer acquisition, cross selling, and up selling;

INTRODUCTION TO INFORMATION SYSTEMS 4


Extending the Organizations to Customers

3. Providing input into decision relating to products and services(


pricing, and product development)
4. Providing financial forecasting and customer profitability
analysis.

How Operational CRM and Analytical CRM work together

Operational CRM Analytical CRM

INTRODUCTION TO INFORMATION SYSTEMS 5


Extending the Organizations to Customers

Glossary
Analytical CRM System uses customer behavior and perceptions in
order to provide actionable business intelligence (back-end).

Customer Relationship Management is a customer focused and


customer driven organizational strategy.

Operational CRM supports front – office business processes. Front –


office processes are those that directly interact with customers; that is,
sales, marketing, and service.

REFERENCE

Rainer, Prince (2015), Introduction to Information Systems, fifth


Edition

Joseph Valacich and Christoph Schneider. Information Systems


Today, 5th edition. Prentice Hall, 2010..
http://crmsystems.expertmarket.co.uk/top-5-crm-goals

http://csbapp.uncw.edu/mis213/11/11-1.html

INTRODUCTION TO INFORMATION SYSTEMS 6


Extending the Organizations Along the Supply Chain

13

EXTENDING THE ORGANIZATION ALONG THE SUPPLY


CHAIN

The lesson highlights the supply chain management systems to reduce


the problems, or friction, along the supply chain that leads to increased
time, costs, and inventories as well as decreased customer satisfaction.
It presents how SCM utilizes information systems.

Learning Outcomes:

At the end of the lesson, you are expected to:

1. Define and understand the terms, supply chain, supply chain


management ;
2. Discuss the basic components of supply chain management;
3. Identify two major challenges in setting accurate inventory
levels throughout the supply chain;
4. Define the terms electronic data interchange (EDI), extranet,
and portal, and explain how each of these applications helps
support supply chain management.

SUPPLY CHAIN

Refers to the flow of materials, information, money, and services from


raw material suppliers, through factories and warehouses, to the end
customers. It includes organizations and processes that create and
deliver products, information, and series to end customers.

SUPPLY CHAIN MANAGEMENT (SCM)

The function of SCM is to improve the way a company finds the raw
materials it needs to produce a product or service and deliver it to its
customers. That is, supply chain management is the process of
planning, organizing the various activities performed along the supply
chain.

5 Basic Components of SCM:

INTRODUCTION TO INFORMATION SYSTEMS 1


Extending the Organizations Along the Supply Chain

1. Plan
2. Source
3. Make
4. Deliver
5. Return

Push Model

Production process begins with a forecast, which is more of an


educated guess to predict customer needs (can often be incorrect).

INTRODUCTION TO INFORMATION SYSTEMS 2


Extending the Organizations Along the Supply Chain

Pull Model

Products are made to order after a customer order is placed.

IS Support for SCM


Problems along the Supply Chain may include:

• Poor customer service


• Poor quality product
• High inventory costs
• Loss of revenues
• New technologies

INTRODUCTION TO INFORMATION SYSTEMS 3


Extending the Organizations Along the Supply Chain

Possible solutions to Supply Chain problems:

• Vertical Integration
• Inventories
o Just-in-time inventory
• Information Sharing
o Vendor-managed inventory
• Inter-organizational Information System (IOS): involves
information flows among two or more organizations.
o Extranets link business partners to one another over
the Internet by providing access to certain areas of each
other's corporate intranets.

Electronic data interchange (EDI) is another very common solution.


EDI is a communication standard that enables business partners to
exchange routine documents, such as purchase orders, electronically.

Benefits of EDI:

• minimized data entry errors


• messages are more secure
• reduces cycle time
• minimizes paper

Drawbacks of EDI:

• high initial costs to implement


• ongoing costs may be higher for virtual private network

INTRODUCTION TO INFORMATION SYSTEMS 4


Extending the Organizations Along the Supply Chain

6.

Glossary
Electronic data interchange (EDI) is another very common solution.
EDI is a communication standard that enables business partners to
exchange routine documents, such as purchase orders, electronically.

Extranets link business partners to one another over the Internet by


providing access to certain areas of each other's corporate intranets.

Inter-organizational Information System (IOS) involves


information flows among two or more organizations.

Supply chain refers to the flow of materials, information, money, and


services from raw material suppliers, through factories and
warehouses, to the end customers.

Supply chain management is the process of improving the way a


company finds the raw materials it needs to produce a product or
service and deliver it to its customers.

REFERENCE

Rainer, Prince (2015), Introduction to Information Systems, fifth


Edition

Joseph Valacich and Christoph Schneider. Information Systems


Today, 5th edition. Prentice Hall, 2010..

http://csbapp.uncw.edu/mis213/11/11-5.html

INTRODUCTION TO INFORMATION SYSTEMS 5


Extending the Organizations Along the Supply Chain

INTRODUCTION TO INFORMATION SYSTEMS 6


Acquiring Information Systems and Applications

14

ACQUIRING INFORMATION SYSTEMS AND


APPLICATIONS

The lesson focuses on the formal processes of large organizations.


Smaller organizations employ less formal process or no processes at
all. It also provides discussion on the strategies for acquiring IT
applications.

Learning Outcomes:

At the end of the lesson, you are expected to:

1. Determine an IT strategic plan;


2. Understand the strategies in acquiring information systems and
applications;
3. Enumerate and discuss the processes involved in the systems
development life cycle, and explain the primary tasks and
importance of each process.
4. Discuss alternative development methods tools that augment
development methods;
5. Understand the process of vendor and software selection.

PLANNING FOR AND JUSTIFYING IT APPLICATIONS

Organizations must analyze the need for application and then justify
each purchase in terms of costs and benefits. The need for information
systems is usually related to organizational planning and to the
analysis of its performance vis-a- vis its competitors. The cost –
benefit justification must consider the wisdom of investing in a
specific IT application versus spending the funds on alternative
projects.

Application Portfolio
A prioritized list of both existing and potential IT applications of a
company.

INTRODUCTION TO INFORMATION SYSTEMS 1


Acquiring Information Systems and Applications

Organizational Strategic Plan

States the firm's overall mission, the goals that follow from that
mission, and the broad steps necessary to reach these goals.

IT Architecture
Delineates the way an organization's information resources should be
used to accomplish its mission.

IT Strategic Plan
A set of long-range goals that describe the IT infrastructure and major
IT initiatives needed to achieve the goals of the organization.

IT Steering Committee
Comprised of managers and staff representing various organizational
units. This committee establishes IT priorities and ensures that the IS
functions meets the needs of the enterprise.

Evaluating & Justifying IT Investment: Benefits, Costs & Issues


• Assessing the costs
o Fixed costs
o Total cost of ownership (TCO)
• Assessing the benefits (Values)

INTRODUCTION TO INFORMATION SYSTEMS 2


Acquiring Information Systems and Applications

o Intangible benefits: benefits from IT that may be very


desirable but difficult to place an accurate monetary
value on.
• Comparing the two (cost-benefit analysis)
o Net Present Value (NPV) method: converts future
values of benefits to their present-value equivalent by
discounting them at the organization's cost of funds.
o Return on Investment: measures the effectiveness of
management in generating profits with its available
assets.
o Breakeven Analysis: determines the point at which the
cumulative dollar value of the benefits from a project
equals the investment made in the project.
o The Business Case Approach: A business case is one
or more specific applications or projects. Its major
emphasis is the justification for a specific required
investment, but it also provides the bridge between the
initial plan and its execution.

Strategies for Acquiring IT Applications

1. Buy an existing application (off-the-shelf approach)


2. Customize an existing applications (can be costly!)
3. Lease an application
a. Application Service Provider (ASP): an agent or a
vendor who assembles the software needed by
enterprises and packages the software with services
such as development, operations, and maintenance.

INTRODUCTION TO INFORMATION SYSTEMS 3


Acquiring Information Systems and Applications

b. Software-as-a-Service (SaaS): a method of delivering


software in which a vendor hosts the applications and
provides them as a service to customers over a network,
typically the Internet.

4. Use Open-Source Software

5. Developing via outsourcing (from external contractors or


organizations)

6. Developing an application in-house

Traditional Software Development Life Cycle

Software Development Life Cycle (SDLC)


The traditional systems development method that organizations use for
large-scale IT projects.

Steps within the SDLC (each has a desired deliverable)

1. Systems investigation
2. Systems analysis
3. Systems design
4. Programming and testing
5. Implementation
6. Operation and maintenance

INTRODUCTION TO INFORMATION SYSTEMS 4


Acquiring Information Systems and Applications

Major Advantages
• Control
• Accountability
• Error detection

Major Drawbacks

• Relatively inflexible
• Time-consuming and expensive
• Discourages changes once user requirements are done

Alternative Methods of Development

Prototyping
Approach that defines an initial list of user requirements builds a
prototype system and then improves the system in several iterations
based on users' feedback.

Rapid Application Development (RAD)


A development method that uses special tools and an iterative
approach to rapidly produce a high-quality system.

End-User Development
A development method that has the actually user develop their own
application(s) for use.

INTRODUCTION TO INFORMATION SYSTEMS 5


Acquiring Information Systems and Applications

Component-Based Development
Uses standard components to build applications.

Object-Oriented Development
Does not begin with the task to be performed, but with aspects of the
real world that must be modeled to perform that task.

Vendor and Software Solutions

Steps to Software Solution/Vendor Selection

1. Identify potential vendors.


2. Determine the evaluation criteria.
a. Request for proposal (RFP): a document sent to
potential vendors to submit a proposal describing their
software package and explain how it would meet the
company's needs.

3. Evaluate vendors and packages.

4. Choose the vendor and package.

5. Negotiate a contract.

6. Establish a Service Level Agreement (SLA): formal agreements


that specify how work is to be divided between the company and
its vendors.

INTRODUCTION TO INFORMATION SYSTEMS 6


Acquiring Information Systems and Applications

Glossary
Application Portfolio is a prioritized list of both existing and potential
IT applications of a company.

Application Service Provider (ASP) is an agent or a vendor who


assembles the software needed by enterprises and packages the
software with services such as development, operations, and
maintenance.

IT Strategic Plan is a set of long-range goals that describe the IT


infrastructure and major IT initiatives needed to achieve the goals of
the organization.

Software-as-a-Service (SaaS) is a method of delivering software in


which a vendor hosts the applications and provides them as a service
to customers over a network, typically the Internet.

REFERENCE

Rainer, Prince (2015), Introduction to Information Systems, fifth


Edition

Joseph Valacich and Christoph Schneider. Information Systems


Today, 5th edition. Prentice Hall, 2010.

http://csbapp.uncw.edu/mis213/13/13-1.html

INTRODUCTION TO INFORMATION SYSTEMS 7


Acquiring Information Systems and Applications

INTRODUCTION TO INFORMATION SYSTEMS 8

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