Essentials of MIS (14th Edition) - Detailed Cheat Sheet (Chapters 1-8)

Information Systems in Global Business Today

• Key Business Objectives of IS:

  • Operational Excellence: Improving efficiency to achieve higher profitability.

  • New Products, Services, and Business Models: Using innovation to gain a competitive advantage.

  • Customer and Supplier Intimacy: Providing better service to enhance loyalty and reduce costs.

  • Improved Decision Making: Utilizing accurate, real-time data to avoid over/underproduction and poor investments.

  • Competitive Advantage: Outperforming competitors by reducing costs, increasing productivity, and delivering superior service.

  • Survival: Adapting to digital markets and complying with legal mandates.

• Digital Firm: A business where relationships, core processes, and assets are managed digitally.

• IS (Information System): Interrelated components that collect, process, store, and distribute information to support decision-making and control.

• Three Dimensions of IS:

  • Technology: Encompassing hardware, software, data management, and networking.

  • Organizations: Including hierarchy, business processes, culture, and politics.

  • Management: Involves setting strategy, allocating resources, and problem-solving.

Global E-Business and Collaboration

• Business Processes: Structured activities or tasks that produce a specific service or product.

• Four Major Types of IS:

  • TPS (Transaction Processing System): Supports the operational level by recording routine transactions (e.g., payroll).

  • MIS (Management Information Systems): Provides summarized reports for middle managers to monitor performance.

  • DSS (Decision Support Systems): Supports semi-structured decisions with simulations and "what-if" analysis.

  • ESS (Executive Support Systems): Provides high-level summaries and dashboards for senior management.

• Enterprise Applications:

  • ERP (Enterprise Resource Planning): Integrates business processes into a single IT system.

  • SCM (Supply Chain Management): Manages relationships with suppliers and logistics.

  • CRM (Customer Relationship Management): Helps manage customer data and interactions.

• Collaboration and Social Tools: Tools like Microsoft Teams, Slack, Google Docs, and Zoom enhance productivity and coordination.

Information Systems, Organizations, and Strategy

• Porter's Five Forces Model:

  • New market entrants: The threat of new competitors entering the market.

  • Substitute products: The risk of customers finding alternative products or services.

  • Customers’ bargaining power: More choice gives customers leverage.

  • Suppliers’ bargaining power: Fewer suppliers increase their influence.

  • Industry competition: The intensity of rivalry among competitors.

• Competitive Strategies Enabled by IS:

  • Low-cost leadership (e.g., Walmart)

  • Product differentiation (e.g., Apple)

  • Market niche (e.g., Etsy)

  • Customer & supplier intimacy (e.g., Amazon’s recommendation engine)

• Value Chain Model: Identifies primary and support activities that add value and margin to a product.

• Synergies & Core Competencies: Combine complementary strengths across units or firms.

• Network-based Strategies: Increase value as users increase, creating network effects.

Ethical and Social Issues in Information Systems

• Ethical Dilemmas in IS: Balancing the rights of users with the responsibilities of organizations.

• 5 Moral Dimensions:

  • Information rights/obligations: The right to privacy and fair use of data.

  • Property rights/obligations: Legal claims to intellectual property.

  • Accountability & control: Determining who is responsible for IS issues.

  • System quality: Ensuring standards and minimal errors.

  • Quality of life: The impact of IS on work, society, and the environment.

• Privacy Laws:

  • GDPR (EU), HIPAA (US): Regulations governing data collection and storage.

• Threats to Privacy: Cookies, spyware, and tracking software.

• Intellectual Property Tools: Copyrights, trademarks, and patents.

IT Infrastructure and Emerging Technologies

• IT Infrastructure: Includes physical devices and software for operating the enterprise.

• Five Key Components: Hardware, software, networking, data management, and services.

• Evolution:

  1. Mainframe/minicomputer

  2. Personal computer

  3. Client/server

  4. Enterprise computing

  5. Cloud & mobile platforms

• Virtualization: Running multiple OS instances on one machine.

• Cloud Computing: On-demand resources via the internet (IaaS, PaaS, SaaS).

• Edge Computing: Processing data closer to its source.

• Green Computing: Sustainable tech usage to reduce e-waste.

Databases and Information Management

• Problems with File-Based Systems: Data redundancy, inconsistency, and poor security.

• DBMS Functions: Create, retrieve, update, and manage data in databases.

• Relational Model: Tables (relations) with rows (records) and columns (attributes).

• Normalization: Minimizing redundancy in databases.

• Data Warehouse vs. Data Mart: Warehouse serves the entire enterprise, while a mart serves a specific department.

• Business Intelligence Tools:

  • OLAP (Online Analytical Processing): Multidimensional analysis.

  • Data mining: Identifying hidden patterns and trends.

Telecommunications, the Internet, and Wireless Technology

• Networking Basics:

  • LAN: Limited area (e.g., office).

  • WAN: Wide area (e.g., internet).

  • Protocols: Set of rules (e.g., TCP/IP).

• Internet Services: DNS, FTP, HTTP, email.

• VoIP: Calls over the internet.

• Wi-Fi & Cellular Networks: Wireless LANs; 4G, 5G for mobile data.

• Security Risks: Sniffing, spoofing, man-in-the-middle attacks.

Securing Information Systems

• System Vulnerabilities: Malware, phishing, social engineering, and software bugs.

• Common Threats:

  • Malware: Viruses, worms, Trojan horses, spyware.

  • Ransomware: Encrypts files and demands payment.

• Security Technologies:

  • Firewalls: Control access to networks.

  • Antivirus: Detect and remove malware.

  • Encryption: Protects data in transit or storage.

  • Authentication: Passwords, biometrics.

• Security Policies: Acceptable use policy, security audit.

• Business Continuity Planning: Recovery, backups, and alternative facilities.

Quick Mnemonics & Shortcuts

• IS Hierarchy: TPS → MIS → DSS → ESS

• Porter 5 Forces: CBS NR = Customers, Buyers, Substitutes, New entrants, Rivalry

• Moral Dimensions: RIP QA = Rights, IP, Privacy, Quality, Accountability