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MSIS 2103 Exam 3 Review

Exam 3 Review Notes

Chapter 10: Enterprise Systems

Traditional Transaction Processing Methods

  • Batch Processing System:
    • Business transactions are accumulated over a period and processed as a single unit.
    • There is a delay between the event and processing to update records.
  • Online Transaction Processing (OLTP):
    • Each transaction is processed immediately.
    • Data reflects the current status, enabling faster and more efficient service.

Enterprise Systems

  • Central to individuals and organizations of all sizes.
  • Ensures information sharing across all business functions and management levels for running and managing a business.

Enterprise Resource Planning (ERP)

  • A set of integrated programs that manage a company's vital business operations for the entire organization.
  • Business Process: A set of coordinated and related activities that take input(s) and create valuable output for the customer.

Supply Chain Management (SCM)

  • A system that includes planning, executing, and controlling activities involved in:
    • Sourcing and procurement of raw materials.
    • Converting raw materials to finished products.
    • Warehousing and delivering finished products to customers.
  • Process for Developing a Production Plan:
    • Sales forecasting
    • Sales and operations plan (S&OP)
    • Demand management
    • Detailed scheduling
    • Materials requirement planning (MRP)
    • Purchasing
    • Production
    • Sales ordering
  • ERP systems do not directly work with production machines; data are passed to ERP accounting modules to keep an accurate count of finished product inventory.
  • Production quality data can be added based on the results of quality tests, typically including the batch identification number.

Customer Relationship Management (CRM)

  • Helps a company manage all aspects of customer encounters, including marketing, sales, distribution, accounting, and customer service.
  • Goal: Understand and anticipate the needs of current and potential customers.
  • Primarily used in sales, marketing, and service organizations.
  • Captures and views data about customers and improves communications.
  • Key Features of a CRM System:
    • Contact management
    • Sales management
    • Customer support
    • Marketing automation
    • Analysis
    • Social networking
    • Access by mobile devices
    • Import contact data
  • Retailers use CRM to monitor customer feedback on social networks due to the popularity of mobile devices for comparing products and prices.

Product Lifecycle Management (PLM)

  • Enterprise business strategy that creates a common repository of product information and processes.
  • Supports collaborative creation, management, dissemination, and use of product and packaging definition information.
  • Product Lifecycle Management Software: Manages data and processes associated with various phases of a product's lifecycle.
  • Computer-Aided Design (CAD): Software to assist in the creation, analysis, and modification of the design of a component or product.
  • Computer-Aided Engineering (CAE): Software to analyze the robustness and performance of components and assemblies.
  • Computer-Aided Manufacturing (CAM): Software to control tools and machinery in the manufacture of components and products.
  • In manufacturing, CAD models verified in CAE can be entered into CAM software to control machine tools.
  • Discrete Manufacturing: Production of distinct items (e.g., autos, airplanes, furniture, or toys) that can be decomposed into basic components.
  • Process Manufacturing: Production of products from chemical processes (e.g., gasoline, pharmaceutical drugs) that cannot be easily decomposed.

Overcoming Challenges in Implementing Enterprise Systems

  • Assign a full-time executive to manage.
  • Appoint an experienced, independent resource to provide project oversight.
  • Allow sufficient time to transition to the new system.
  • Allocate sufficient time and money for training.
  • Define metrics to assess project progress and identify risks.
  • Keep the project scope well-defined and contained to essential business processes.
  • Be wary of modifying the enterprise system software to conform to firm’s business practices.
  • Focus on documenting existing workflows and working directly with key stakeholders.
  • The best systems require little change to existing workflow as it relates to user input/effort while eliminating the biggest pain points.

Chapter 11: Artificial Intelligence (AI) and Automation

Vision Systems

  • Hardware and software that permit computers to capture, store, and manipulate visual images and pictures.
  • Augmented Reality (AR): A type of vision system used widely in the medical field.
  • Vision system software superimposes computer-generated images on a user's view of the world using specialized glasses or goggles.

AI and Employment

  • AI technology is being introduced rapidly across industries.
  • Automation creates fear of job loss.
  • The World Economic Forum suggests that AI could create up to 58 million new jobs by 2022.

Machine Learning Training

  • Supervised Learning
  • Unsupervised Learning
  • Reinforced Learning
  • Semi-Supervised Learning

Natural Language Processing (NLP)

  • Involves computer understanding, analyzing, manipulating, and/or generating natural language for processing.
  • Widely used in search engines to interpret user searches and return relevant results.
  • Online translators require training beyond word-to-word translations; grammar and punctuation are critical.

Industrial Robots

  • Designed for speed, accuracy, and safety.
  • Size and appearance depend on the application.
  • Cartesian Robots:
    • Take up a smaller footprint and move in straight lines.
    • Commonly used for 3D printing.
  • Selective Compliance Assembly Robot Arm (SCARA) Robots:
    • Easier to integrate into complex printing designs.
    • Have both lateral and rotary movement and can move faster than Cartesian models.
    • Often used in the biomedical field for faster movement and wider range.
  • Articulated Robots:
    • Function like a human arm.
    • May have ten or more rotary joints.
    • Frequently used in industrial manufacturing, such as automotive lines, due to speed and precision.

Chapter 12: Strategic Planning and Project Management

Strategic Planning

  • Provides a framework and direction for decision-making.
  • Ensures effective use of resources by focusing on key priorities.
  • Enables proactive responses to opportunities and trends.
  • Fosters collaboration toward common goals.
  • Provides measures for judging organizational and personal performance.
  • Improves communication with stakeholders.

Analyze Situation

  • Michael Porter’s Five Forces Model: Used for assessing competition.
  • Strengths, Weaknesses, Opportunities, Threats (SWOT) Matrix: Used to analyze an organization's internal assessment and external environment.

User Satisfaction and Technology Acceptance

  • Technology Acceptance Model (TAM):
    • Specifies factors leading to better attitudes about using a new information system, as well as higher acceptance and usage.
    • Perceived usefulness (U) and perceived ease of use (E) strongly influence IS adoption; management can improve perception through demonstrations and training.

Diffusion of Innovation Theory

  • Developed by E.M. Rogers to explain how a new idea or product gains acceptance and spreads through a population.
  • Adoption does not happen all at once; it is a drawn-out process with different adoption rates.

Project Variables

  • Scope:
    • Defines which tasks are included and which are not.
  • Cost:
    • Includes all capital, expenses, and internal cross-charges.
  • Time:
    • Timing is a critical constraint; projects often have fixed completion dates.
  • Quality:
    • The degree to which the project meets user needs.
  • User Expectations:
    • Stakeholders form expectations about the project's conduct and impact.

Schedule Management

  • Defining an achievable and acceptable completion date
  • Developing a workable project schedule
  • Ensuring the timely completion of the project
  • Identifying specific tasks
  • Sequencing these tasks
  • Estimating resources required
  • Estimating elapsed time to complete each task
  • Analyzing all data to create a project schedule
  • Controlling and managing changes

Time Management

  • Gantt Chart: A graphical tool used for planning, monitoring, and coordinating projects, listing activities and deadlines.
  • Work Breakdown Structure (WBS): Outline of the work to be done to complete the project.

Project Resource Management

  • Activities to identify, acquire, and manage project resources; estimating, acquiring equipment, materials, and staff; improving team communication; tracking performance; resolving issues
  • Forming-Storming-Norming-Performing-Adjourning Model: A useful model to describe how teams develop and evolve; forming an effective team is a challenge.

Chapter 13: System Acquisition and Development

Subscribe vs. Buy vs. Build

  • Subscribe:
    • Pros: Cost-effective for small, temporary needs; vendor handles updates and support.
    • Cons: Cannot be modified; recurring licensing costs.
  • Buy:
    • Pros: Quick deployment; can test drive before acquiring.
    • Cons: May not match needs perfectly; maintenance costs can be excessive.
  • Build:
    • Pros: Customized; potential competitive advantage.
    • Cons: High cost; long deployment time.
  • System Development: Activities involved in building information systems to meet user needs, ranging from small to large projects.

Waterfall System Development Process

  • Sequential, multistage process where each stage must be completed and approved before the next begins.
  • Six Phases:
    • Investigation
    • Analysis
    • Design
    • Construction
    • Integration and Testing
    • Implementation

System Investigation

  • Purpose: Gain a clear understanding of the problem or opportunity.
  • Review systems investigation request
  • Identify and recruit team leader and members
  • Develop budget and schedule for investigation
  • Perform investigation
  • Joint application development
  • Functional decomposition
  • Perform preliminary feasibility analysis
  • Technical economic, legal, operational, and schedule
  • Prepare draft of investigation report
  • Review results of investigation with steering team

Agile Development

  • Iterative process with sprints lasting two weeks to two months, maximizing the team's ability to deliver quickly and respond to emerging requirements.
  • Scrum: Method to keep the Agile system development effort focused and moving quickly.
  • The Scrum master coordinates all activities.

Chapter 1: Information Systems: People, Technology, Processes, and Structure

Leavitt’s Diamond

  • Proposes that every organizational system operates within a context composed of people, technology infrastructure, processes, and human structure.
  • People:
    • The most important element of information systems.
    • Employee requirements: Training, understanding, motivation, and access to support.
  • Technology Infrastructure:
    • Includes hardware, software, databases, networks, facilities, and third-party services.
    • Required to meet the needs of customers, suppliers, partners, regulatory agencies, and employees.
    • Forms the foundation of every computer-based information system.
  • Processes:
    • A structured set of related activities that takes input, adds value, and creates an output.
    • Procedure describes steps to follow to achieve a specific end result.
    • Using an information system involves setting up and following many procedures.
  • Structure:
    • Defines relationships between organization members, necessary roles, responsibilities, and lines of authority.
    • Employees must understand and accept their roles and responsibilities.
    • Roles and responsibilities often change with the introduction of a new information system.

Types of Information Systems

  • Personal Information System: Improves productivity of individual users.
  • Workgroup Information System: Enables people to work together effectively.
  • Enterprise Information System: Facilitates organization-wide business needs.
  • Interorganizational IS: Enables the sharing of information across organizational boundaries.

Chapter 2: Secure Information Systems

Types of Attack Vectors

  • Advanced Persistent Threat: An intruder gains access to a network and stays there undetected to steal data over a long period.
  • Blended Threat: Combines features of viruses, worms, Trojan horses, and other malicious code.
  • Phishing: Fraudulently using email to get the recipient to reveal personal data.
  • Rootkit: Enables a user to gain administrator-level access without consent; obscures presence from administrators.
  • Smishing: Phishing using texting.
  • Social Engineering: Deception to trick individuals into divulging data.
  • Spam: Sending unsolicited email to large numbers of people.
  • Trojan Horse: A seemingly harmless program with hidden malicious code.
  • Virus: Programming code that causes a computer to behave unexpectedly.
  • Vishing: Similar to smishing, using voice mail messages.
  • Worm: Harmful program that resides in memory and duplicates itself without human intervention.

The CIA Security Triad

  • CIA Security Triad: Confidentiality, Integrity, Availability
  • Layered security solution design makes cyberattacks difficult; the attacker eventually gives up or is detected before harm is inflicted.

Implementing CIA at the Network Level

  • Authentication Methods:
    • Something you know (password)
    • Something you possess (smart card)
    • Something you are (biometrics)
  • Use two-factor authorization
  • Biometric Authentication: Physiological or behavioral measurements are used, requiring a reference model of unique characteristics stored digitally.
  • Encryption: Scrambles messages or data; only authorized parties can read it.
    • Encryption key: A value applied to plaintext to produce ciphertext; required to decipher ciphertext.
    • Encryption algorithms: Symmetric and asymmetric.
    • Advanced Encryption Standard (AES): Common symmetric algorithm, used by the WPA2 security protocol.

Chapter 4: Hardware and Software

Current Operating Systems

  • Server Virtualization: Logically dividing a single physical server’s resources to create multiple logical servers.
  • Virtual machines act as their own dedicated machines.
  • Hypervisor: A virtual server program that controls the host processor and resources, allocates resources to each virtual machine, and ensures that they do not disrupt each other.

Software as a Service (SaaS)

  • Third-party provider hosts applications and makes them available to subscribers over the Internet.
  • Advantages: Available from any computer or device; SaaS provider handles upgrades and patches; lower software licensing costs; SaaS provider manages service levels and availability.

Chapter 5: Database Systems and Data Management

Database Activities

  • Storing and Retrieving Data: DBMS function; interface between application program and database.
  • Concurrency Control: Addresses situations where multiple users or applications access the same record simultaneously.

SQL Databases

  • SQL: Special-purpose programming language used for accessing and manipulating relational database data.
  • SQL databases conform to ACID properties (Atomicity, Consistency, Isolation, Durability).
  • Guarantees reliable processing of database transactions and ensures data integrity.

Chapter 6: Business Intelligence: Big Data and Analytics

Big Data

  • Enormous (terabytes or more) and complex (sensor data to social media data).
  • Traditional processes are incapable of dealing with them.
  • Key Characteristics: Volume, Velocity, Value, Variety, Veracity.

Chapter 7: Networks: An Interconnected World

Client/Server Architecture

  • Many clients request and receive services from servers on the network.
  • Domain Name System (DNS): Maps the name people use to locate a Web site to the IP address that a computer uses to locate a Web site.
  • Uniform Resource Locator (URL): Web address specifying the exact location of a Web page using letters and words that map to an IP address and a location on the host.

Chapter 8: Cloud Computing and the Internet of Things

The Internet of Things (IoT)

  • A network of physical objects (i.e., things) embedded with sensors, processors, software, and network connectivity capability.
  • Enables data exchange with the manufacturer of the device, device operators, and other connected devices.
  • Sensor: A device capable of sensing something about its surroundings (pressure, temperature, humidity, pH level, motion, vibration, or level of light).
  • Business Benefits of IoT: Reduce costs, deepen understanding of consumer behavior, improve customer service, and improve workplace safety.

Chapter 9: E-Commerce

Electric Payment Systems

  • Authentication Technologies: Used by many organizations to confirm the identity of a user requesting access.
  • Digital Certificate: An attachment to an e-mail message or data embedded in a Web site that verifies the identity of a sender or Web site.
  • Certificate Authority (CA): Trusted third-party organization that issues digital certificates.S