5.9 Management Information System (HL)

Information Systems (IS) - a set of databases (electronically), to store the needed information (customers). Only can be used by administrators à might violate customers’ privacy and lead to a bad brand image)

Data Mining (to identify a relationship) - the process of finding trends, patterns, and correlations among specific data groups. (To predict future situations, and thus to increase revenue)

Data Analytics (more than mining) - the process of inspecting and modeling data to discover useful information to reach conclusions based on the analysis of the raw data collected.

-      Descriptive analytics: past performance; appears when the business informs stakeholders of their annual reports.

-      Predictive analytics: forecasting the future; in sales, customers, employees, etc. Using existing data that would help the business to identify future patterns and decisions.

-      Prescriptive analytics: analyze past performance, using it to predict the future.

The use of data analytics and data mining:

-      Help business managers make informed decisions (market research)

-      Promotional purposes

-      Customer loyalty program [a rewards scheme offered to encourage repeat purchases]

-      Conduct training for the employees.

Database – a computerized and structured collection of data that is stored and organized in a way that allows for the efficient retrieval, use, and management of the data.

Cybercrime (bad side): when unauthorized individuals attack the computer systems.

Cybersecurity: to prevent cyberattacks.

Critical Infrastructures: the systems, networks, and assets that are essential for operations. (Information systems)

1.        Artificial neural networks (ANN): elements of computing systems designed to simulate how human brains work. Can learn from the data.

2.        Data centers: to protect the information. (Data storage, management, and recovery, high-volume e-commerce transactions)

3.        Cloud computing: the delivery of services through the Internet. (IT costs could be reduced by just renting)

Virtual reality (VR) – the use of computer-generated environments that enable users to immerse themselves and interact in simulated settings in real time.

The Internet of Things (IoT) – the network of interconnected devices and appliances over the Internet.

Artificial intelligence (AI) – the simulation of human intelligence in machines that are programmed to think and learn in similar ways to human beings.

Big Data - extremely large databases that are generated by business activity. Five dimensions that differentiated big data from traditional data: volume, velocity, variety, veracity, and value.