Discussion Assignment in ECOM500 business and Information Technology

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IT for Management: On-Demand Strategies for Performance, Growth, and Sustainability

Eleventh Edition

Turban, Pollard, Wood

Chapter 1

Disruptive IT Impacts Companies, Competition, and Careers

Learning Objectives (1 of 4)

Doing Business in the On-Demand Economy

• On-demand Economy is the economic activity created by technology companies that fulfill consumer demand through the immediate provisioning of products and services.

• Propelled by proliferation of o Smartphone-connected consumers o Simple and secure purchase flows o Location-based services

• Growth of app-driven companies like Airbnb, Uber, GrubHub have disrupted markets.

Doing Business in the On-demand Economy: Airbnb, Uber

Key Strategic and Tactical Questions

Doing Business in the On-demand Economy: Digital Business Models

Digital business models refer to how companies engage their customers digitally to create value via websites, social channels, and mobile devices.

Doing Business in the On-Demand Economy: Terminology • Business Model is how an enterprise generates

revenue or sustains itself. • Digital Business Model is defined by how a business

makes money via digital technology. • Customer Experience (CX) is about building the digital

infrastructure that allows customers to do whatever they want to do, through whatever channel they choose to do it.

Doing Business in the On-demand Economy: Digital Business Models • Why develop digital business models?

o Deliver an incredible customer experience o Turn a profit o Increase market share o Engage their employees

• How does the customer experience (CX) measure up? o There is a strong relationship between the quality of a firm’s

CX and brand loyalty, which in turn increases revenue.

Top IT Management Issues 1. Technology Alignment with the Business 2. Security, Cybersecurity, & Privacy 3. Innovation 4. IT Agility & Flexibility 5. Business Cost Reduction & Controls 6. IT Cost Reduction & Controls 7. Speed of IT Delivery & IT Time to Market 8. Speed of IT Delivery & IT Time to Market 9. Business Strategic Planning 10. Business Productivity & Efficiency Comparison of Top 10 Management Priorities (Adapted from Kappelman, McLean, Johnson, and Gerhart 2017)

Doing Business in the On-Demand Economy: Business Objectives (1 of 2) 1. Product Development—IT helps businesses respond quickly to

changing customer demands 2. Stakeholder Integration—companies use their investor relations

websites to communicate with shareholders, research analysts, and others in the market

3. Process Improvement—An ERP systems replaces dozens of legacy systems for finance, human resources, and other functional areas, to increase efficiency and cost-effectiveness of internal business processes

Doing Business in the On-Demand Economy: Business Objectives (2 of 2) 4. Cost Efficiencies—IT allows companies to reduce transaction and

implementation costs, such as costs of duplication and postage of email vs snail mail.

5. Competitive Advantage—Companies can use agile development, prototyping, and other systems methodologies to bring a product to market cost effectively and quickly.

6. Globalization—companies can outsource most of their non-core functions, such as HR and finance, to offshore companies and use ICT to stay in contact with its global employees, customers and suppliers 24/7

Doing Business in the On-Demand Economy: Questions (1 of 2) 1. What precipitated the on-demand economy? 2. How is IT contributing to the success of the on-demand

economy? 3. List the six IT business objectives 4. What are the key strategic and tactical questions that determine

an organization’s profitability and management performance?

Doing Business in the On-Demand Economy: Questions (2 of 2) 5. What is a business model? 6. What is a digital business model? 7. Give two examples of how companies are transitioning to digital

business models. 8. What factors are driving the move to digital business models?

Learning Objectives (2 of 4)

Business Process Improvement: Terminology (1 of 2) • Business Process is a series of steps by which an organization

coordinates and organizes tasks to get work done. • Process is comprised of the activities that convert inputs into

outputs by doing work. • Deliverables are outputs created through work toward a desired

benefit or expected performance improvement. • Performance is a result of processes where maximizing efficiency

over one’s competitors is a critical success factor.

Business Process Improvement: Components of a Business Process

IN PU

TS Raw materials, data, knowledge, expertise

A CT

IV IT

IE S Work that

transforms input & acts on data and knowledge

D EL

IV ER

A BL

ES Products, services, plans, or actions

Business Process Improvement: Characteristics • Business Process Characteristics

o Formal Processes or Standard Operating Procedures (SOP): documented and have well-established steps.

o Informal Processes: typically undocumented, undefined, or are knowledge-intensive.

o Range from slow, rigid to fast-moving, adaptive. o Can be rigid, resistant to change, or adaptive, responding to

change.

Eight Phases of Business Process Reengineering

1. Develop Vision &

Objectives

2. Understand Existing

Processes

3. Identify Process for Redesign

4. Identify Change Levers

5. Implement New Process

6. Make New Process

Operational

7. Evaluate New Process

8. Perform Continuous

Improvement

Business Process Improvement: BPR

• Process Improvement o Continuous examination to determine whether processes are

still necessary or operating at peak efficiency by eliminating wasted steps called Business Process Reengineering (BPR).

o Digital technology enhances processes by: • Automating manual procedures • Expanding data flows to reach more

functions and parallel sequential activities • Creating innovative business processes to

create new models.

Gaining a Competitive Advantage: Components

Business Process Improvement: Terminology (2 of 2) • Agility is the ability to respond quickly. • Responsiveness is IT capacity that can be easily scaled up or

down as needed. • Flexibility is the ability to quickly integrate new business

functions or to easily reconfigure software or applications.

IT agility, flexibility, and mobility are tightly interrelated and fully dependent on an organization’s IT infrastructure and architecture.

Business Process Improvement: IT Consumerization • IT Consumerization is the migration of consumer technology into

enterprise IT environments. It’s caused by personally owned IT becoming a capable and cost-effective solution for expensive enterprise equivalents.

Software Support for BPM

• Process Management o Consists of methods, tools, and technology to support and continuously

improve business processes also known as Business Process Management (BPM).

o BPM software is used to map processes performed manually, by computers, or to design new processes.

o BPM requires buy-in from a broad cross section of the business, the right technology selection, and highly effective change management to be successful.

Business Process Improvement and Competitive Advantage 1. What is a business process? Give three examples. 2. What is the difference between business deliverables and

objectives? 3. List and give examples of the three components of a business

process. 4. Explain the differences between formal and informal processes. 5. What is the standard operating procedure (SOP)? 6. What is the purpose of business process management (BPM)? 7. What are the characteristics of an agile organization? 8. Explain IT consumerization. 9. Define competitive advantage.

Learning Objectives (3 of 4)

IT Innovation and Disruption: Intro SMAC Model • Social-Mobile-Analytics-Cloud (SMAC) Model

o Huge data centers accessible via the Internet form the fore for the cloud by providing 24/7 access to storage, apps, and services.

o Handheld and wearable devices and their users form the edge of the cloud.

o Social channels connect the core and edge. o The SMAC integration creates the technical and services infrastructure

needed to digital business.

IT Innovation and Disruption: Social- Mobile-Analytics-Cloud (SMAC) Model of the integration of cloud, mobile, and social technologies. The cloud forms the core. Mobile devices are the endpoints. Social networks create the connection.

IT Innovation and Disruption: SMAC Influence • Social-Mobile-Analytics-Cloud (SMAC)

o Powerful social influences impact advertising and marketing. o Consumer devices go digital and offer new services. o eBay’s move to cloud technology improves sellers’ and buyers’

experiences

IT Innovation and Disruption: Mega Trends (1 of 4) Mega Trends are forces that shape or create the future of business, the economy, and society. • Connectivity

o Need to connect across multiple channels and platforms o Cloud Services are any computing resource provided over the

Internet on demand, rather than run applications from software stored on company-owned server or computer.

o Digital resources no longer dependent on buying/owning that resource.

IT Innovation and Disruption: Mega Trends (2 of 4) • Big Data and Data Analytics

o Commonly defined as high-volume, mostly text data o 80-90% consists of Unstructured data, having no predictable

format o Multiple channels and sources:

• Machine-generated data from sensors and mobile devices • Social media content from clicks, tweets, blogs • Clickstream data from Internet searches

IT Innovation and Disruption: Mega Trends (3 of 4) • Digitization is the process of transforming any kind of

activity or information into a digital format that can be collected, stored, searched, and analyzed electronically —and efficiently. o Banks digitizing mortgage application/decision process cut

costs per new mortgage by 70% o Telecomm company created self-serve, prepaid service to

order and activate phones o Shoe retailer using in-store inventory system to know

immediately if item was in stock

IT Innovation and Disruption: Mega Trends (4 of 4) • Machine-to-machine (M2M) Technology

o Enables sensor-embedded products to share reliable real time data via radio signals

o Internet of Things (IoT) refers to a set of capabilities enabled when physical things are connected to the internet via sensors

o M2M and IoT are widely used to automate businesses ranging from transportation to healthcare

IT Innovation and Disruption: Lessons Learned Companies using technology as a genuine competitive differentiator can reap these benefits:

1. Exploit the power of software 2. Develop, deliver, disrupt—quickly! 3. Boost speed and efficiency with Automated

Programming Interfaces (AIPs) 4. Leverage third-party innovation 5. Maximize returns with smarter IT investments

IT Innovation and Disruption 1. What are the benefits of cloud computing? 2. What is machine-to-machine (M2M) technology? Give an

example of a business process that could be automated with M2M.

3. Describe the relationships in the SMAC model. 4. What impacts are the SMAC model having on business? 5. Why have mobile devices given consumers more power in the

marketplace? 6. Explain why connectivity is important in today’s on-demand

economy. 7. In what ways is IT disrupting business?

Learning Objectives (4 of 4)

IT and You: On-Demand Workers Profile of U.S. On-Demand Workers (45 million) • Expected their financial situation to improve over the

coming year—28.8 million • Under 35 years of age—23 million • Live in urban areas—18.45 million • 63% are motivated to work in the on-demand economy

to earn supplemental income Survey (Chriss, 2016)

http://investors.intuit.com/Press-Releases/Press-Release-Details/2016/How-the-On-Demand-Economy-Is-Reshaping-the-40-hour-Work-Week/default.aspx

IT and You: IT as a Career • IT job growth is estimated at 12% from 2014 to 2024,

faster than the average for all other occupations. This means about 488,500 new jobs.

• The median annual wage for computer and IT occupations was $81,430 in May 2015, which was considerably higher than the median annual wage of $36,200 for all other occupations

• In 2017 only 2% of all IT workers were unemployed

IT and You: IT as a Career (1 of 2) • IT Managers—play a vital role in the implementation

and administration of digital technology. They plan, coordinate, and direct research on the computer- related activities of firms.

• Chief Technology Officers (CTOs)—evaluate the newest and most innovative technologies and determine how they can be applied for competitive advantage.

• IT Project Managers—develop requirements, budgets, and schedules for their firm’s information technology projects. They coordinate such projects from development through implementation.

IT and You: IT as a Career (2 of 2) • Data Scientists manage and analyze massive sets of

data for purposes such as target marketing, trend analysis, and the creation of individually tailored products and services. o Enterprises that want to take advantage of big data use real

time data from tweets, sensors, and their big data sources to gain insights into their customers’ interests and preference, to create new products and services, and to respond to changes in usage patterns as they occur.

o Big data analytics has increased the demand for data scientists.

IT and You: Become an Informed IT User • Understand how using IT can improve organizational

performance, benefit organizational growth, facilitate teamwork, and improve individual productivity

• Understand how businesses can use IT to enhance the customer experience

• Be able to offer input into the development and use of IT • Know how to find emerging technologies to make radical

improvement in business processes • Foster your entrepreneurial tendencies to start your own on-

demand business

IT and You

1. Why is IT a major enabler of business performance and success?

2. Explain why it is beneficial to study IT today. 3. Why are IT job prospects strong?

Section 117 of the 1976 United States Act without the express written permission of the

Permissions Department, John Wiley & Sons, Inc. The purchaser may make back-up

copies for his/her own use only and not for distribution or resale. The Publisher assumes

no responsibility for errors, omissions, or damages, caused by the use of these programs

or from the use of the information contained herein.

IT for Management: On-Demand Strategies for Performance, Growth, and Sustainability

Eleventh Edition

Turban, Pollard, Wood

Chapter 2

Information Systems, IT Architecture, Data Governance, and Cloud Computing

Data, Information, Knowledge, & Wisdom

• Raw data describes products, customers, events, activities, and transactions that are recorded, classified, and stored.

• Information is processed, organized, or put into context data with meaning and value to the recipient.

• Knowledge applies understanding, experience, accumulated learning, and expertise to current problem.

• Wisdom applies a moral code and prior experiences to form a judgement.

Figure 2.6 Hierarchy of Information Systems, Input/Output and User Levels

Transaction Processing Systems (TPS)

• Internal transactions: originate or occur within the organization (payroll, purchases, etc.)

• External transactions: originate outside the organization (customers, suppliers, etc.)

• Improve sales, customer satisfaction, and reduce many other types of data errors with financial impacts

Batch v. Online Real-Time Processing

• Batch Processing: collects all transactions for a time period, then processes the data and updates the data store

• OLTP: processes each transaction as it occurs (real- time)

• Batch processing costs less than OLTP, but may be inaccurate from update delays

Management Information Systems (MIS)

• General-purpose reporting systems that provide reports to managers for tracking operations, monitoring, and control. o Periodic: reports created or run according to a pre-set

schedule. o Exception: generated only when something is outside

designated parameters. o Ad Hoc, or On Demand: unplanned, generated as needed.

Decision Support Systems (DSS) (1 of 2) • Interactive, knowledge-based applications that support

decision making • Support unstructured and unstructured decisions with

the following characteristics: o Easy-to-use interactive interface o Models or formulas that enable sensitivity analysis o Data from multiple sources

• Can be used for open-ended What-if analysis and more structured Goal-seeking

Executive Information Systems (EIS)

• Strategic-level information systems that help executives and senior managers analyze the environment in which the organization exists

• Used to identify log-term trends and plan appropriate actions

• Weakly structured data from both internal and external sources

• Designed to be easily operated by executives

Information Systems Components and Classification 1. Name the six components of an IS. 2. Describe the differences between data, information, knowledge,

and wisdom. 3. Define TPS and give an example. 4. Explain why TPSs need to process incoming data before they are

stored. 5. Define MIS and DSS and give an example of each. 6. What characteristics distinguish a DSS from an MIS? 7. What level of personnel typically use an EIS? 8. What factors determine IS value?

IT Infrastructure

• Inventory of the physical IT devices that an organization owns and operates

• Describes organization’s entire collection of hardware, software, networks, data centers, facilities and related equipment

• Does not include people or process components of an IS

IT Architecture

• Guides the process of planning, acquiring, building, modifying, interfacing and deploying IT resources in a single department within an organization

• Should offer a way to systematically identify technologies that work together to satisfy the needs of the departments’ users

• Blueprint for how future technology acquisitions and deployment will take place

Enterprise architecture (EA)

• Reviews all the information systems across all departments in an organization to develop a strategy to organize and integrate the organization’s IT Infrastructures

• Helps meet the current and future goals of the enterprise and maximize the value of technology to the organization.

• The way IT systems and processes are structured • Solves two critical challenges: where are we going;

how do we get there?

Decision Support Systems (DSS) (2 of 2) • Strategic Focus

o IT systems’ complexity o Poor business alignment

• Business and IT Benefits of EA o Cuts IT costs; increases productivity with information, insight,

and ideas o Determines competitiveness, flexibility, and IT economics o Aligns IT capabilities with business strategy to grow, innovate,

and respond to market demands o Reduces risk of buying or building systems and enterprise

apps

Measuring EA Success: KPIs

• Key Performance Indicators (KPIs) are measures that demonstrate the effectiveness of a business process at achieving organizational goals. They present data in easy-to-comprehend and comparison-ready formats.

• KPIs measure financial, social media, sales and marketing, operations and supply chain, or environmental data.

• KPI examples are current ration; accounts payable turnover; net profit margin; new followers per week; cost per lead; order status.

EA Components

IT Infrastructure, IT Architecture, and Enterprise Architecture 1. What is the purpose of the IT infrastructure? 2. How is the IT infrastructure different from the IT

architecture? 3. What is the purpose of an enterprise architecture? 4. What are the business benefits of EA? 5. Explain why it is necessary for the EA to maintain

alignment between IT and business strategy? 6. Explain KPIs and give an example.

Information Management • The use of IT tools and methods to collect, process,

consolidate, store, and secure data from sources that are often fragmented and inconsistent

• Why a continuous plan is needed to guide, control, and govern IT growth

• Information management is critical to data security and compliance with continually evolving regulatory requirements, such as the Sarbanes-Oxley Act, Basel III, the Computer Fraud and Abuse Act (CFAA), the USA PATRIOT Act, and the Health Insurance Portability and Accountability Act (HIPAA)

Reasons for Information Deficiencies • Information deficiencies are still a problem, caused by:

o Data Silos, trapping information in stand alone data stores not accessible by other information systems

o Lost or bypassed data, due to flaws in the data collection process

o Poorly designed interfaces o Nonstandardized data formats, impeding efficient analysis o Cannot hit moving targets, because data tracking

requirements keep changing

Reasons for Information Deficiencies: Data Silos

Figure 2.14 Data (or information) silos are ISs that do not have the capability to exchange data with other ISs, making timely coordination and communication across functions or departments difficult.

Information Management Benefits • Business benefits of information management

o Improves decision quality o Improves the accuracy and reliability of management

predictions o Reduces the risk of noncompliance o Reduces time and cost

Enterprise Data Governance • Data governance is the control of enterprise data

through formal policies and procedures to help ensure data can be trusted and are accessible.

• Enterprise-wide Data Governance o Crosses boundaries and used by people through the

enterprise. o Reduces legal risks associated with unmanaged or

inconsistently managed information.

Data Governance: Master Data & Management • Master Data & Management (MDM) o Synchronizes critical data from disparate systems into one

master file o Creates high-quality trustworthy data:

• Running the business with transactional or operational use • Improving the business with analytic use

o Requires strong data governance to manage availability, usability, integrity, and security

Information Management and Data Governance 1. What is information management? 2. What is a the “silo effect” and how does it affect business

performance? 3. What three factors are driving collaboration and information

sharing? 4. What are the business benefits of information management? 5. Explain why it is important to develop an effective data

governance program? 6. Explain the purposes of master data management. 7. Why has interest in data governance and MDM increased?

Data Centers and Cloud Computing

• Data Centers and Cloud Computing are types of IT infrastructures or computing systems.

• Data Center also refers to a physical facility. o Houses large numbers of network servers used for the

storage, processing, management, distribution, and archiving of data, systems, Web traffic, services, and enterprise applications.

National Climatic Data Center U.S. Nation Security Agency Apple

https://www.nsa.gov/

When a Data Center Goes Down, So Does Business • Business is Reliant Upon data o Uber (car-hailing service)

• Users flooded social media with complaints when they experienced an hour-long outage

o WhatsApp (smartphone text-messaging service) • Competition added 2 million new registered users within

24 hours of WhatsApp outage (a record)

Data Virtualization

• Data Virtualization o Cisco’s single solution integrating computing, storage,

networking, virtualization, and management into a single (unified) platform

o Virtualization gives greater IT flexibility and cutting costs: • Instant access to data any time in any format • Respond faster to changing data analytic needs • Cut complexity and cost

Data Virtualization Benefits Data Virtualization compared to traditional data integration and replication methods:

The Software–Defined Data Center (SDDC)

• An SDDC facilitates the integration of the various infrastructure silos within organizations. o Optimizes the use of resources, balances workloads o Maximizes operational efficiency by dynamically distributing

workloads and provisioning networks o SDDC Goals: decrease costs and increase agility, policy

compliance and security by deploying, operating, managing and maintaining applications.

Cloud Computing

• What is “The Cloud”? o A general term for infrastructure that uses the Internet and

private networks to access, share, and deliver computing resources

o Scalable delivery as a service to end-users over a network o Should be approached with greater diligence than other IT

decisions as a new technology including Vendor Management and Cloud Service Agreements (CSAs)

Cloud Computing Types

• Private Cloud: Single-tenant environments with stronger security and control (retained) for regulated industries and critical data.

• Public Cloud: Multiple-tenant virtualized services utilizing the same pool of servers across a public network (distributed).

Cloud Computing CSAs

• Cloud Service Agreements o A negotiated agreement between a company and service

provider that can be a legally binding contract or an informal contract.

o The goal is not building the best CSA terms, but getting the terms that are most meaningful to the business needs.

Cloud Infrastructure

• The Value of the Cloud Infrastructure: o Dynamic, not static o Provides a way to make apps and computing power available

on demand because they are provided as a service o Referred to as Software As A Service, or SaaS. (examples:

Google Apps and Salesforce.com) o Helps companies become more agile and responsive while

significantly reducing IT costs and complexity

Large organizations are moving to Enterprise Clouds.

Data Centers, Cloud Computing, and Virtualization (1 of 2) 1. What is a data center? 2. What is the difference between on premise data centers and cloud

computing?

3. What is an SDDC? 4. What are the advantages of using an SDDC? 5. How can cloud computing solve the problems of managing software licenses? 6. What factors should be considered when selecting a cloud vendor or

provider?

7. When are private clouds used instead of public clouds? 8. Explain three issues that need to be addressed when moving to cloud

computing or services.

Cloud Services and Virtualization

• Sustaining performance requires new business apps and analytics capabilities, which comprise the front end,― and the data stores and digital infrastructure, or back end, to support them.

• The back end is where the data reside. • Data may have to navigate through a congested IT

infrastructure that was first designed decades ago. • Cloud Services are services made available to users on

demand via the Internet from a cloud computing provider's servers instead of being accessed through an organization’s on-premises servers.

Anything-As-A-Service Models There are different types of Cloud Service Model • Software as a Service (SaaS) o End-user apps, like SalesForce

• Platform as a Service (PaaS) o Tools and services making coding and deployment faster and more

efficient, like Google App Engine

• Infrastructure as a Service (IaaS) o Hardware and software that power computing resources, like EC2 & S3

(Amazon Web Services)

• Data as a Service (DaaS) o Data shared among clouds, systems, apps, regardless the data source or

storage location

Data Centers, Cloud Computing, and Virtualization

Figure 2.17 Virtual machines running on a simple computer hardware layer. Virtualization: created by a software layer (virtualization layer) containing its own operating system and applications as a physical computer.

Virtualization Concepts

• A virtual machine is a software-created computer. Technically, a virtual machine (VM) is created by a software layer, called the virtualization layer.

• That layer has its own Windows or other OS and apps, such as Microsoft Office, as if it were an actual physical computer.

• A VM behaves exactly like a physical computer and contains its own virtual―that is, software-based―CPU, RAM (random access memory), hard drive, and network interface card (NIC).

Virtualization Benefits

• Characteristics & Benefits o Memory-intensive

• Huge amounts of RAM due to massive processing requirements

o Energy-efficient • Up to 95% reduction in energy use per server through less

physical hardware o Scalability and load balancing

• Handles dynamic demand requests like during the Super Bowl or World Series

Data Centers, Cloud Computing, and Virtualization Questions (2 of 2) 1. What is SaaS? 2. What is PaaS? 3. What is IaaS? 4. How might companies risk violating regulation or compliance

requirements with cloud services? 5. In what ways is a virtualized information system different from a

traditional information system? 6. Describe the different types of Virtualization. 7. What is load balancing and why is it important?

Section 117 of the 1976 United States Act without the express written permission of the

Permissions Department, John Wiley & Sons, Inc. The purchaser may make back-up

copies for his/her own use only and not for distribution or resale. The Publisher assumes

no responsibility for errors, omissions, or damages, caused by the use of these programs

or from the use of the information contained herein.

IT for Management: On-Demand Strategies for Performance, Growth, and Sustainability

Eleventh Edition

Turban, Pollard, Wood

Chapter 3

Data Management, Business Intelligence, and Data Analytics

Database Technologies: Databases

• Collections of data sets or records stored in a systematic way

• Stores data generated by business apps, sensors, operations, and transaction-processing systems (TPS)

• The data in databases are extremely volatile • Medium and large enterprises typically have many

databases of various types

Volatile data changes frequently.

Database Technologies: Data Warehouses

• Integrate data from multiple databases and data silos, and organize them for complex analysis, knowledge discovery, and to support decision making

• May require formatting processing and/or standardization

• Loaded at specific times making them non-volatile and ready for analysis

Database Technologies: Data Marts

• Small-scale data warehouses that support a single function or one department

• Enterprises that cannot afford to invest in data warehousing may start with one or more data marts

Database Technologies: BI

• Business Intelligence (BI) o Tools and techniques that process data and conduct statistical

analysis for insight and discovery o Used to discover meaningful relationships in the data, keep

informed of real time, detect trends, and identify opportunities and risks

Database Management Systems (DBMS) • Integrate with data collection systems such as TPS and business

applications • Organized way to store, access, and manage data • Stores data in tables consisting of columns and rows, similar to

the format of a spreadsheet • Standard database model adopted by most enterprises • Functions include:

o Data filtering and profiling o Data integrity and maintenance o Data synchronization o Data security o Data access

Database Technologies: SQL

• Relational Database Management Systems (DBMS) o Provides access to data using a declarative language

• Declarative language o Simplifies data access by requiring that users only specify

what data they want to access without defining how they will be achieved

o Structured Query Language (SQL) is an example of declarative language:

SELECT column_name(s) FROM table_name WHERE condition

OLTP and OLAP Systems

Online Transaction Processing and Online Analytics Processing

• Online Transaction Processing (OLTP) • Designed to manage transaction data, which are volatile & break

down complex information into simpler data tarbles and strike a balance between transaction-processing efficiency and query efficiency

• Cannot be optimized for data mining • Online Analytics Processing (OLAP)

• A means of organizing large business databases • Divided into one or more cubes that fit the way business is conducted

Database Technologies: NOSQL

• Trend toward NoSQL Systems o Higher performance o Easy distribution of data on different nodes

• Enables scalability and fault tolerance o Greater flexibility o Simpler administration

Popular DBMS

• DBMSs (mid-2016) o Oracle’s 12C Database o Microsoft’s SQL Server o IBM’s DB2 o SAP Sybase Ase o PostgreSQL

Data Management and Database Technologies 1. Describe a database and database management system

(DBMS). 2. Explain what an online transaction-processing (OLAP)

system does. 3. Why are data in databases volatile? 4. Describe the functions of a DBMS. 5. Describe the purpose and benefits of data

management. 6. What is a relational database management system?

Centralized and Distributed Database Architecture • Centralized Database Architecture

o Better control of data quality o Better IT security

• Distributed Database Architecture o Allow both local and remote access o Use client/server architecture to process requests

Dirty Data

Garbage In, Garbage Out

• Dirty Data • Lacks integrity/validation and reduces user trust • Incomplete, out of context, outdated, inaccurate, inaccessible, or

overwhelming

Characteristics of Poor Quality or Dirty Data Characteristic Description

Incomplete Missing data

Outdated or Invalid Too old to be valid or useful

Incorrect Too many errors

Duplicated or in conflict

Too many copies or versions of the same data—and the versions are inconsistent or in conflict with each other

Non-standardized Data are stored in incompatible formats—and cannot be compared or summarized

Unusable Data are not in context to be understood or interpreted correctly at the time of access

Data Life Cycle and Data Principles (1 of 2)

• Principle of Diminishing Data Value o The value of data diminishes as they age o Blind spots (lack of data availability) of 30 days or longer

inhibit peak performance o Global financial services institutions rely on near-real-time

data for peak performance

• Principle of 90/90 Data Use o As high as 90 percent, is seldom accessed after 90 days

(except for auditing purposes) o Roughly 90 percent of data lose most of their value after 3

months

Data Life Cycle and Data Principles (2 of 2)

• Principle of data in context o The capability to capture, process, format, and distribute data

in near real time or faster requires a huge investment in data architecture

o The investment can be justified on the principle that data must be integrated, processed, analyzed, and formatted in “actionable information”

Figure 3.11 Data life cycle

Figure 3.12 An enterprise has transactional, master, and analytical data.

Centralized and Distributed Database Architectures 1. Describe the data life cycle. 2. What is the function of master data management

(MDM)? 3. What are the consequences of not cleaning “dirty

data”? 4. Describe the differences between centralized and

distributed databases. 5. Discuss how data ownership and organizational politics

affect the quality of an organization’s data.

Data Warehouses: Enterprise data warehouses (EDW) • Data warehouses that pull together data from disparate

sources and databases across an entire enterprise • Warehouses are the primary source of cleansed data

for analysis, reporting, and Business Intelligence (BI) • Their high costs can be subsidized by using data marts

Data Preparation: Procedures to Prepare EDW Data for Analytics • Extract from designated databases • Transform by standardizing formats, cleaning the data,

integration • Loading into a data warehouse

Figure 3.15 Database, data warehouses and marts, and BI architecture.

Data Warehouses: ADW

• Active Data Warehouse (ADW) o Real-time data warehousing and analytics o Transform by standardizing formats, cleaning the data,

integration

• They provide o Interaction with a customer to provide superior customer

service o Respond to business events in near real time o Share up-to-date status data among merchants, vendors, and

associates

Data Warehouse Processing: Hadoop and MapReduce • Hadoop is an Apache processing platform that places

no conditions on the processed data structure • MapReduce provides a reliable, fault-tolerant software

framework to write applications easily that process vast amounts of data (multi-terabyte datasets) in-parallel on large clusters (thousands of nodes) of commodity software o Map stage: breaks up huge data into subsets o Reduce stage: recombines partial results

Data Warehouses 1. What are the differences between databases and data

warehouses? 2. What are the differences between data warehouses and data

marts? 3. Explain ETL. 4. Explain CDC. 5. What is an advantage of an active data warehouse (ADW)? 6. Why might a company invest in a data mart? 7. How can manufacturers and health care benefit from data

analytics? 8. Explain how Hadoop implements MapReduce in two stages.

Data Analytics and Data Discovery Defined • Data Analytics is a technique of qualitatively or

quantitatively analyzing a data set to reveal pattersn, trends, and associations that often relate to human behavior and interaction, to enhance productivity and business gain.

• Big data is an extremely large data set that is too large or complex to be analyzed using traditional data processing techniques.

Four V’s of Data Analytics 1. Variety: The analytic environment has expanded from pulling

data from enterprise systems to include big data and unstructured sources.

2. Volume: Large volumes of structured and unstructured data are analyzed.

3. Velocity: Speed of access to reports that are drawn from data defines the difference between effective and ineffective analytics.

4. Veracity: Validating data and extracting insight that manager and workers can trust are key factors successful analytics. Trust in analytics. Trust analytics has grown more difficult with the explosion of data sources.

Data Analytics: Human Expertise is Needed • To interpret the output of analytics, Big Data Specialists

and Business Intelligence Analysts perform many tasks o Data preparation for analysis through data cleansing

techniques, to eliminate duplicates or incomplete data

o Dirty data degrade the value of analytics o Data must be put into meaningful context

Data Discovery: Data and Text Mining

• Creating Business Value o Data Mining: software that enables users to analyze

data from various dimension or angles, categorize them, and find correlative patterns among fields in the data warehouse

o Text Mining: broad category involving interpreted words and concepts in context

o Sentiment Analysis: trying to understand consumer intent

Data Analytics and Data Discovery 1. Why are human expertise and judgment important to data

analytics? Give an example. 2. What is the relationship between data quality and the value of

analytics? 3. Why do data need to be put into a meaningful context? 4. How can manufacturers and health care benefit from data

analytics? 5. How does data mining provide value? Give an example. 6. What is text mining? ? 7. What are the basic steps involved in text analytics?

Business Intelligence: Key to competitive advantage • Across industries in all size enterprises • Used in operational management, business process,

and decision making • Provides moment of value to decision makers • Unites data, technology, analytics, & human knowledge

to optimize decisions • BI “unites data, technology, analytics, and human

knowledge to optimize business decision and ultimately drive an enterprise’s success” (The Data Warehousing Institute)

Business Intelligence Challenges

• Challenges o Data selection and quality o Alignment with business strategy and BI strategy

• Alignment o Clearly articulates business strategy o Deconstructs business strategy into targets o Identifies PKIs o Prioritizes PKIs o Creates a plan based on priorities o Transform based on strategic results and changes

Figure 3.17: Business Intelligence Factors: Four factors contributing to increased use of BI

Business Intelligence Architecture

• Advances in response to big data and end-user performance demands

• Hosted on public or private clouds • Limits IT staff and controls costs • May slow response time, add security and backup risks

Electronic Records Management

• Business Records o Documentation of a business event, action, decision, or

transaction

• Electronic Records Management (EMR) o Workflow software, authoring tools, scanners, and databases

that manage and archive electronic documents and image paper documents

o Index and store documents according to company policy or legal compliance

o Success depends on partnership of key players

ERM Practices and Standards

• Best Practices o Effective systems capture all business data o Input from online forms, bar codes, sensors, websites, social

sites, copiers, emails, and more

• Industry Standards o Association for Information and Image Management (AIIM;

www.aim.org) o National Archives and Records Administration (NARA;

www.archives.gov) o ARMA International (formerly the Association of Records

Managers and Administrators; www.arma.org)

http://www.aim.org/

http://www.archives.gov/

http://www.arma.org/

ERM Benefits: an ERM can help a business • Access and use the content contained in documents • Cut labor costs by automating business processes • Reduce time and effort to locate require information

for decision making • Improve content security, thereby reducing intellectual

property theft risks • Minimize content printing, storing, and searching costs

ERM: Disaster Recovery, Business Continuity, and Compliance 1. Does the software meet the organization’s needs? For example,

can the DMS be installed on the existing network? Can it be purchased as a service?

2. Is the software easy to use and accessible from Web browsers, office applications, and email applications? If not, people will not use it.

3. Does the software have lightweight, modern Web and graphical user interfaces that effectively support remote users?

4. Before selecting a vendor, it is important to examine workflows and how data, documents, and communications flow throughout the company.

Business Intelligence and Electronic Records Management 1. What are the business benefits of BI? 2. What are two data-related challenges that must be resolved for

BI to produce meaningful insight? 3. What are the steps in a BI governance program? 4. What does it mean to drill down into data, and why is it

important? 5. What four factors are contributing to increased use of BI? 6. Why is ERM a strategic issue rather than simply an IT issue? 7. Why might a company have a legal duty to retain records? Give

an example. 8. Why is creating backups an insufficient way to manage an

Section 117 of the 1976 United States Act without the express written permission of the

Permissions Department, John Wiley & Sons, Inc. The purchaser may make back-up

copies for his/her own use only and not for distribution or resale. The Publisher assumes

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or from the use of the information contained herein.

IT for Management: On-Demand Strategies for Performance, Growth, and Sustainability

Eleventh Edition

Turban, Pollard, Wood

Chapter 4

Networks, Collaborative Technology, and The Internet of Things

Network Fundamentals Defined

• A computer network is a set of computers connected together for the purpose of sharing recourses.

Common Network Types

Acronym Type Characteristics Example LAN Local Area Network Short distance

connection Office School Home

WAN Wide Area Network Spans large physical distance

Internet Large company

WLAN Wireless LAN LAN based on Wi-Fi technology

Internet Large company

Intranets, Extranets, and Virtual Private Networks • Intranets are used within a company for data access,

sharing, and collaboration. • Extranets are private, company-owned networks that

can be logged into remotely via the Internet. • Virtual Private Networks (VPNs) are used where

security of transmissions is a concern, because they encrypt the packets before they are transferred over the network.

Virtual Private Networks

A virtual tunnel routed through the Internet with software and hardware encryption.

Network Terminology • Modem: a device that modulates/demodulates signal

for transportation • Modulation and Coding: Techniques used by modem to

adapt the signal to the media • Signal: Binary information we want to send. • Signal Frequency Spectrum: All the frequency

components of a signal • Media Bandwidth: Limit in range of frequency signals • Capacity Bandwidth: Maximum bits per second that

can be transmitted

Figure 4.4 Basic functions of business networks

Quality of Service (QoS) • Latent-sensitivity: data such as real-time voice and high

-quality video. • Prioritized Traffic: data and apps that are time-delay-

sensitive or latency-sensitive apps. • Throttle Traffic: gives latency-sensitive apps priority,

other types of traffic need to be held back (throttled). • Traffic Shaping: the ability to prioritize and throttle

network traffic.

The Net Neutrality Debate • Net neutrality is the principle that Internet Service

Providers (ISPs) and their regulators treat all Internet traffic the same way.

• Traffic shaping prioritizes the flow of traffic by delaying the flow of less important network traffic.

• In 2010, the FCC ruled in favor of “net semi-neutrality”, not explicitly forbidding paid prioritization.

• The FCC under the current administration may take further steps to roll back net neutrality rulings, which could favor the cable companies over consumers.

Network Fundamentals 1. Name different types of networks. 2. What is meant by “bandwidth”? 3. What is the difference between an intranet and an extranet? 4. How does a virtual private network (VPN) provide security? 5. What is the purpose of a modem? 6. Describe the basic functions of business networks. 7. How do investments in network infrastructure impact an

organization? 8. Name the two tiers of traffic to which Quality-of-Service is

applied.

Internet Protocols, APIs, and Network Capabilities • Internet Protocol (IP) is the basic technology that

makes global communication possible. Each devise attached to a network has a unique IP address that enables it to send and receive files made up of packets.

IP Addresses and Packets

Figure 4.5: IPv4 addresses have four groups of four alphanumeric characters, which allows for 232 or roughly 4.3 billion unique IP address. IPv6 addresses have eight groups of alphanumeric characters, which allows for 2128 , or 340 trillion, trillion addresses. IPv6 offers also enhanced quality of service that is needed by the latest in video, interactive games, and e-commerce.

Broadband Technology: 3G/4G/5G • 3G networks support multimedia and broadband

services over a wider distance and at faster speeds than prior generation networks. They use large satellite connections to telecommunication towers.

• 4G networks are digital, or IP, networks that enable even faster data transfer rates. 4G delivers average realistic download rates of 3 Mbps or higher (as opposed to theoretical rates, which are higher).

• 5G networks, the coming generation of broadband technology. 5G will dramatically increase the speed at which data is transferred across the network.

Network Technology Standards

• WiMAX o IEEE 802.16 o 30-mile range o 70 Megabits per second (Mbps) o Line-of-site not required o Same principles as Wi-Fi (using radio signals)

• Long-Term Evolution (LTE) o GSM deployed by Verizon, AT&T, and T-Mobile o 100 Mbps downlink, 50 Mbps uplink

Circuit vs. Packet Switching

• Circuit switching o Older technology that originated with telephone calls o Inefficient for digital transmission

• Packet Switching o Transfers data or voice o Files are broken into packets, numbered sequentially, routed

individually to their destinations o When received at the destination, the packets are

reassembled into their proper sequences

Application Programming Interfaces and Operating Systems • Application Program Interface (API) consists of a set of

functions, commands, and protocols used by programmers for OS-interactivity without having to write a program from scratch.

• Can be automated for simplified usability o Twitter o Facebook o Amazon

Figure 4.7 API value chain in business.

Internet Protocols (IP), APIs, and Network Capabilities 1. Why has IPv6 become increasingly important? 2. What is the difference between IPv4 and IPv6? 3. What is the purpose of an IP address? 4. What are the benefits of using an API? 5. What is the difference between 4G and 5G? 6. What is the most current network standard? 7. What benefits will the upcoming 5G network standard offer

businesses? 8. What is the difference between circuit switching and packet

switching?

Figure 4.8 Four drivers of global mobile traffic through 2020

Mobile Data Traffic Milestone by 2020

Wireless Networks and Mobile Infrastructure • Mobile Networks

o Bluetooth: short-range wireless communication technology allowing device pairing

o Wi-Fi: standard way to wirelessly connect computing devices through routers commonly connected to the Internet

o WiMax: transmits voice, data, and video over high-frequency radio signals designed as alternative to cable and DSL

Data Networks, IP Addresses, and APIs: A mashup of GPS and Bluetooth • General term referring to the integration of two or

more technologies such as Bluetooth and Wi-Fi o Provide intelligence o Inter-Automobile collision avoidance o Sudden braking o Can automatically call emergency services

Data Networks, IP Addresses, and APIs: Near-Field Communication (NFC) • Enables two devices within close proximity to establish

a communication channel and transfer data using radio waves

• More secure than other wireless technologies • Examples:

o Apple iWatch o Digital tickets providing access to concerts o Transmit public transport payment through phones

Mobile Networks 1. What factors are contributing to mobility? 2. Why is mobile global traffic increasing? 3. What accounts for the increase in mobile traffic? 4. Give some examples of VoIP networks. 5. How is NFC different from RFID? 6. What are the two components of a wireless network

infrastructure? 7. What is Near Field Communication and how is it used in

business? 8. What factors should be considered when evaluating a mobile

network?

Collaborative Technologies: Virtual Collaboration--Benefits • Information sharing between retailers and suppliers

(Example: Walmart and Proctor & Gamble) • Retailer-supplier collaboration (Example: Asda Corp.) • Lower transportation and inventory costs and reduced

stockouts (Example: Unilever’s Transportation Business Center)

• Reduction of product development time (Example: Caterpillar, Inc.)

Collaborative Technologies: Group Work

• Group Work and Dynamics can be quite complex • Group workers can be located in different places or

work at different times • Group members may work for the same or different

organizations • Data, information, or knowledge may be located in

many sources that may be external to the organization

Collaborative Technologies: Brainstorming in the Cloud • Companies are now using cloud-based online

brainstorming applications • Avoids travel expenses if members are geographically

dispersed • No restriction to number of sessions • Examples

o Evernote—features function to synchronize user’s notes o iMindmap Online—relies on mind mapping and other

structured approaches to help streamline work processes

The Internet of Things (IoT) Internet of Things (IoT) is the network of physical objects or “things” embedded with electronics, software, sensors, and network connectivity, that enables these objects to collect and exchange data.

• Objects we interact with send signals to and from each other, collecting data

• IoT collects that data from millions of sensors embedded in everything from cars, to refrigerators, to space capsules

• Half of U.S. manufacturers report they are currently using IoT technology to collect machine data (Industry Week study, 2016)

• A smaller percentage (44%) are colleting data from sensors embedded in their products

Advantages of IoT 1. Monitoring performance, quality, and reliability of products and

services 2. Gaining insight into potential new products and service 3. Support sales 4. Better understand product use 5. Remote troubleshooting of products 6. Deliver revenue-generating post-sales services 7. More efficiently deliver post-sales services

Disadvantages of IoT 1. Network security 2. Data privacy 3. Data analysis capabilities 4. Data collection capabilities 5. Realistic efficiency opportunities 6. Realistic new revenue opportunities 7. Cost

Collaboration Technologies and the Internet of Things (IoT) 1. Why is group work challenging? 2. What might limit the use of in-person brainstorming? 3. How can online brainstorming tools overcome those limits? 4. List ways in which virtual collaboration can be used in business. 5. What devices do you have that take advantage of the IoT?

Describe how they impact the way that you live and work. 6. What is driving the rise of IoT? 7. What is the main concern that organizations have about the IoT? 8. Do you think the advantages outweigh the disadvantages of the

IoT? Explain.

Section 117 of the 1976 United States Act without the express written permission of the

Permissions Department, John Wiley & Sons, Inc. The purchaser may make back-up

copies for his/her own use only and not for distribution or resale. The Publisher assumes

no responsibility for errors, omissions, or damages, caused by the use of these programs

or from the use of the information contained herein.

IT for Management: On-Demand Strategies for Performance, Growth, and Sustainability

Eleventh Edition

Turban, Pollard, Wood

Chapter 5

Cybersecurity and Risk Management Technology

The Face and Future of Cyberthreats

Figure 5.1: Number of 2016 U.S. Data Breaches by Industry Sector. The number of cyberthreats in which data records have been stolen by hackers has increased at an alarming rate.

Cyberthreat Terminology • Cyberthreat is a threat posed by means of the Internet (a.k.a.

cyberspace) and the potential source of malicious attempts to damage or disrupt a computer network, system, or application.

• Vulnerability is a gap in IT security defenses of a network, system, or application that can be exploited by a threat to gain unauthorized access.

• Incident is an attempted or successful unauthorized access to a network, system, or application; unwanted disruption or denial of service; unauthorized use of a system for processing or storage of data; changes to a system without the owner’s knowledge, instruction, or consent.

• Data Breach is the successful retrieval of sensitive information by an individual, group, or software system.

Figure 5.2 The three objectives of data and information systems security

2016 Biggest Data Breaches Worldwide

Company Type of Breach Records Breached

Anthem Insurance Identity theft—healthcare records

78.8 million

Turkish General Directorate

Identity theft—malicious outsider (government agency)

50 million

Korean Pharmaceutical Info. Center

Identity theft—malicious insider

43 million

U.S. Office of Personnel Management

Personally Identifiable Information (PII) (government agency)

22 million

Experian Identity theft—malicious outsider (credit bureau)

15 million

Major Sources of Cyberthreats (1 of 2)

Unintentional cyberthreats can be caused by o Human error (a majority of internal security issues)

• Poorly designed systems • Faulty programming • Neglecting to change passwords • Unaware users

o Environmental hazards

• Natural disasters • Faulty HVAC systems

o Computer systems failure

• Poor manufacturing or maintenance

Major Sources of Cyberthreats (2 of 2)

• Some intentional forms of cyberthreats are: o Hacking o Phishing o Crimeware o Distributed Denial of Service (DDoS) o Insider and Privilege Misuse o Physical Theft

Intentional Cyberthreats: Hacking • Hacking is broadly defined as intentionally accessing a computer

without authorization or exceeding authorized access. There are three types of hackers.

• White Hat: Computer security specialist who breaks into protected systems and network to test and assess their security.

• Black Hat: Person who attempts to find computer security vulnerabilities and exploit them for personal and/or financial gain, or other malicious reasons.

• Gray Hat: Person who may violate ethical standards or principles, but without the malicious intent ascribed to black hat hackers.

• Hacktivist: is short for hacker-activist, or someone who performs hacking to promote awareness, or otherwise support a social, political, economic, or other cause.

Intentional Cyberthreats: Spear Phishing

• Spear phishers often target select groups of people with something in common

• Trick user into opening an infected email • Emails sent that look like the real thing • Confidential information extracted through seemingly

legitimate website requests for passwords, user IDs, PINs, account numbers, and so on.

Intentional Cyberthreats: Crimeware • Malware refers to hostile or intrusive software, including

computer viruses, rootkits, worms, Trojan horses, ransomware, and other malicious programs used to disrupt computer or mobile operations, gather sensitive information, gain access to private computer systems.

• Spyware is tracking software that is not designed to intentionally damage or disable a system but to monitor or track activities.

• Adware is software that embeds advertisement in the application

• Ransomware is a type of malware that is designed to block access to a computer system until a sum of money has been paid.

Intentional Cyberthreats: Variants

• Malware Reinfections, Signatures, Mutations, and Variants o Malware is captured in backups or archives. Restoring the

infected backup or archive also restores the malware. o Malware infects removeable media, and could reinfect a host

years later when it accessed again. o Most antivirus (AV) software relies on signatures to identify

and then block malware.

Intentional Cyberthreats: Botnets • A botnet is a group of external attacking entities and is

a totally different attack method/vector from malware, which is internal to the system.

• A group of infected computers, called zombies, can be controlled and organized into a network of zombies on the command of a remote botmaster (also called a bot herder).

Intentional Cyberthreats: Denial of Service Attacks • Distributed Denial-of-Service (DDoS) crashes a network or

website by bombarding it with traffic (i.e., requests for service) and effectively denies service to all those legitimately using it, leaving it vulnerable to other threats

• Telephony Denial-of-Service (TDoS) floods a network with phone calls and keeps the calls up for long durations to overwhelm an agent or circuit and prevent legitimate callers, such as customers, partners, and suppliers, from using network resources

• Permanent Denial-of-Service (PDoS) prevents the target’s system or device from working. Instead of collecting data or providing some on-going perverse function, its objective is to completely prevent the target’s device(s) from functioning.

Intentional Cyberthreats: Internal Threats • Internal threats from employees can be some of the

most challenging to defend against • Data tampering is a common means of internal attack

o Refers to an attack during which someone enters false or fraudulent data into a computer, or changes/deletes existing data

o Data tampering is extremely serious because it may not be detected; the method often used by insiders and fraudsters

New Attack Vectors

• Attack Vector is a path or means by which a hacker can gain access to a computer or network server in order to deliver a malicious outcome.

• Mobile devices and apps, social media, and cloud services introduce even more attack vectors for malware, phishing, and hackers.

• Malicious (rogue) apps can serve up Trojan attacks, other malware, or phishing attacks.

• Found in Google Play Store for Andriod phones.

The Face and Future of Cyberthreats Review 1. Define and give an example of an intentional threat and an unintentional

threat.

2. Why might management not treat cyberthreats as a top priority? 3. Describe the differences between distributed denial-of-service (DDoS),

telephony denial-of-service (TDoS), and permanent denial-of-service (PDoS).

4. Why is social engineering a technique used by hackers to gain access to a network?

5. List and define three types of malware. 6. What are the risks caused by data tampering? 7. Define botnet and explain why they are dangerous. 8. Why is Ransomware on the rise? How might companies guard against

ransomware attacks?

Cyberattack Targets and Consequences

• Managers make the mistake of underestimating IT vulnerabilities and threats, and appear detached from the value of confidential data (even high-tech companies).

• Targets for cyberattacks include critical infrastructure, theft of intellectual property, identity theft, BYOD, and social media.

• These attacks can be “high profile” or “under the radar”.

High Profile and Under the Radar Attacks • Advanced Persistent Threats (APT)

o Launched by attacker through phishing to again access to enterprise’s network

o Designed for long-term espionage o Profit-motivated cybercriminals often operate in stealth mode to continue

long-term activities

• Hackers and hacktivists, commonly with personal agendas, carry out high-profile attacks to further their causes. o Anonymous and LulzSec are two hacker groups who have committed

daring data breaches, data compromises, data leaks, thefts, threats, and privacy invasions.

Critical Infrastructure Attacks

Figure 5.3 U.S. Critical Infrastructure Sectors.

Critical infrastructure is defined as systems and assets so vital to the country that their incapacity or destruction would have a debilitating effect.

Theft of Intellectual Property • Intellectual Property is a work or invention that is the

result of creativity that has commercial value. • Includes copyrighted property such as a blueprint,

manuscript or a design, and is protected by law from unauthorized use by others.

• Intellectual property can represent more than 80% of a company’s value.

• Losing customer data to hackers can be costly and embarrassing but losing intellectual property, commonly known as trade secrets, could threaten a company’s existence.

Identity Theft

• One of the worst and most prevalent cyberthreats is identity theft. o Made worse by electronic sharing and databases o Businesses reluctant to reveal incidents in which their

customers’ personal financial information may have been stolen, lost, or compromised

Bring Your Own Device (BYOD) • Bring Your Own Device (BYOD): employees providing

their own (mobile) devices for business purposes to reduce expenses through cut purchase and maintenance costs.

• Roughly 74% of U.S. organizations are using or planning to use BYOD

• Cuts business costs by not having to purchase and maintain employees’ mobile devices

• Security risk: mobile devices rarely have strong authentication, access controls, and encryption even though they connect to mission-critical data and cloud services. Could also be lost or stolen.

Social Media Attacks • Social networks and cloud computing increase

vulnerabilities by providing a single point of failure and attack for organized criminal networks.

• FBI: social media-related events have quadrupled over the past five years.

• Pricewaterhouse Coopers found that more than one in eight enterprises has suffered at least one security breach due to a social media-related cyberattack.

• Facebook scams were the most common form of malware distributed in 2015.

Networks and Services Increase Exposure to Risk • Time-to-exploitation is the elapsed time between when

vulnerability is discovered and when it is exploited o Launched by attacker through phishing to again access to enterprise’s

network o Designed for long-term espionage o Profit-motivated cybercriminals often operate in stealth mode to continue

long-term activities

• Hackers and hacktivists, commonly with personal agendas, carry out high-profile attacks to further their causes. o Anonymous and LulzSec are two hacker groups who have committed

daring data breaches, data compromises, data leaks, thefts, threats, and privacy invasions.

Cyberattack Targets and Consequences Review 1. What is a critical infrastructure? 2. List three types of critical infrastructures. 3. How do social network and cloud computing increase

vulnerability? 4. Why are patches and service packs needed? 5. Why is it important to protect intellectual property? 6. How are the motives of hacktivists and APTs different? 7. Explain why data on laptops and computers need to be

encrypted. 8. Explain how identity theft can occur.

Cyber Risk Management

• Risk is the probability of a threat successfully exploiting a vulnerability and the estimated cost of the loss or damage.

• Factors leading to an increased risk of cyberattack: o Interconnected, interdependent, wirelessly networked

business environment o Smaller, faster, cheaper computers and storage devices o Decreasing skills necessary to be computer hacker o International organized crime taking over cybercrime o Lack of management support

IT Defenses

• Some essential defenses organizations can institute to defend again cyberattacks o Antivirus Software: designed to detect malicious codes and

prevent users from downloading them. o Intrusion Detection Systems (IDSs): scans for unusual or

suspicious traffic (passive defense) o Intrusion Prevention Systems (IPSs): is designed to take

immediate action—such as blocking specific IP addresses— whenever a traffic-flow anomaly is detected (active defense)

• Security is an ongoing, unending process

Figure 5.7 Basic IT security concepts

Security Defenses for Mobiles

• Biometric Control is an automated method of verifying the identity of a person, based on physical or behavioral characteristics o The most common biometrics are a thumbprint or fingerprint,

voice print, retinal scan, and signature.

• Mobile biometrics can significantly improve the security of physical devices and provide stronger authentication for remote access or cloud services.

• Voice biometrics are an effective authentication solution across a wide range of consumer devices including smartphones, tablets, and TVs.

Additional IT Defenses: Do-Not-Carry Rules • U.S. companies, government agencies, and

organizations may impose rules that assume mobile technologies will inevitably be compromised. o Only “clean” devices are allowed to be brought inside o Devices are forbidden from connecting while abroad o Some individuals carry no electronics on trips for compliance

Business Continuity Planning

• Business continuity refers to maintaining business functions or restoring them quickly when there is a major disruption o A business continuity plan covers business processes, assets,

human resources, business partners o Keeps the business running after a disaster occurs o Covers fires, earthquakes, floods, power outages, malicious

attacks, and other types of disasters

Cyber Risk Management Review 1. Explain why it is becoming more important for organizations to

make cyber risk management a high priority? 2. Name four U.S. Government Regulations that relate to cyber risk

management. 3. What is the purpose of Rogue Application Monitoring? 4. Why is a mobile kill switch or remote wipe capability an

important part of managing cyber risk? 5. Why does an organization need to have a business continuity

plan? 6. Name the three essential cybersecurity defenses. 7. Name three IT defenses. 8. Why do companies impose do-not-carry rules?

Defending Against Fraud

• Crime o Violent crime involves physical threat or harm o Nonviolent crime uses deception, confidence, and trickery by

abusing the power of their position or by taking advantage of the trust ignorance, or laziness of others, otherwise known as fraud.

• Fraud o Occupational fraud refers to the deliberate misuse of the

assets of one’s employer for personal gain.

Occupational Fraud Prevention and Detection • Corporate Governance

o Enterprise-wide approach greatly increases the prevention and detection of fraud

• Intelligent Analysis o Forms insider profiling to find wider patterns of criminal

networks.

• Anomaly Detection o Audit trails from key systems and personnel records used to

detect anomalous patters, such as excessive hours worked, deviations in patterns of behavior, copying huge amounts of data, attempts to override controls, unusual transactions, and inadequate documentation about a transaction.

Internal Controls (IC)

• A process to ensure that sensitive data are protected and accurate designed to achieve: o Reliability of financial reporting, to protect investors o Operational efficiency o Compliance with laws, regulations, and policies o Safeguarding of assets

Cyber Defense Strategies

• The major objectives of Defense Strategies are: o Prevention and deterrence o Detection o Contain the Damage (damage control) o Recovery o Correction o Awareness and compliance

• Auditing can provide an additional layer of safeguards.

Defending Against Fraud Review 1. What defenses help prevent occupational fraud? 2. What level of employee commits the most occupational fraud? 3. What is the purpose of internal controls? 4. What federal law requires effective internal controls? 5. Explain the concepts of Intelligence Analysis and Anomaly

Detection. 6. Name the major categories of general controls. 7. Explain authentication and name two methods of authentication. 8. What are the six major objectives of a defense strategy?

Frameworks, Standards, and Models

• Current Frameworks and standards have been developed to address compliance: o Enterprise Risk Management (ERM) o Control Objectives for Information and Related Technology

(COBIT) o Industry Standards, for example, Payment Card Industry Data

Security Standard (PCI DSS)

Enterprise Risk Management Framework (ERM) • Risk-based approach to managing an enterprise • Developed by the Committee of Sponsoring

Organizations of the Treadway Commission (COSO) ERM

• Integrates internal control, the Sarbanes-Oxley Act mandates, and strategic planning

• Consists of eight components, listed in Table 5.13

Figure 5.11 COBIT 5 Principles COBIT 5 is the leading framework for the governance and security of IT

Industry Standards: Payment Card Industry Data Security Standard (PCI DSS) • Created by Visa, MasterCard, American Express, and

Discover • Requires merchants and card payment providers to

make certain their Web applications are secure • Improves customers’ trust in e-commerce • Increase the Web security of online merchants • Penalties for noncompliance are severe

Figure 5.12 IT security defense-in-depth model.

Frameworks, Standards, and Models Review

1. Who created the Enterprise Risk Management Framework (ERM)? What is its purpose?

2. What are the 5 principles of COBIT 5? Explain. 3. Why do industry groups have their own standards for cybersecurity?

Name one standard. 4. Are measurements of direct costs sufficient to reflect total damage

sustained by a cyberattack? 5. What 4 components comprise the IT Security Defense-in-Depth

model? 6. What are the 4 steps in the IT Security Defense-in-Depth IT security

model? 7. Explain why frameworks, standards, and models are important parts of

a cybersecurity program.

Section 117 of the 1976 United States Act without the express written permission of the

Permissions Department, John Wiley & Sons, Inc. The purchaser may make back-up

copies for his/her own use only and not for distribution or resale. The Publisher assumes

no responsibility for errors, omissions, or damages, caused by the use of these programs

or from the use of the information contained herein.

IT for Management: On-Demand Strategies for Performance, Growth, and Sustainability

Eleventh Edition

Turban, Pollard, Wood

Chapter 6

Search, Semantic, and Recommendation Technology

Using Search Technology for Business Success

• How Search Engines Work o Search Engine: an application for locating webpages or other

content on a computer network using spiders. o Spiders: web bots (or bots); small computer programs

designed to perform automated, repetitive tasks over the Internet.

o Bots scan webpages and return information to be stored in a page repository.

Using Search Technology for Business Success: Web Directories

• Typically organized by categories. • Webpage content is usually reviewed by directory

editors prior to listing. • Page Repository: data structure that stores and

manages information from a large number of webpages, providing a fast and efficient means for accessing and analyzing the information at a later time.

Figure 6.2: Search engines use invested indexes to efficiently locate Web content based on search query terms

Enterprise Search

Why Search is Important for Business o Enterprise search tools allow organizations to share

information internally • Structured data: information with a high degree of

organization, such that inclusion in a relational database is seamless and readily searchable by simple, straightforward search engine algorithms or other search operations.

• Unstructured data: “messy data” not organized in a systematic or predefined way.

Enterprise Search Security

• Security Issues o Limited access to certain data via job function or clearance. o Request log audits should be conducted regularly for patterns

or inconsistencies.

• Enterprise Vendors o Used to treat data in large companies like Internet data but

include information management tools.

Enterprise Search Marketing

• Recommendation Engines o Attempt to anticipate information users might be interested in

to recommend new products, articles, videos, etc.

• Search Engine Marketing (SEM) o A collection of online marketing strategies and tactics that

promote brands by increasing their visibility in search engine results pages (SERPs) through optimization and advertising.

Search Engine Marketing Techniques • Basic search types:

o Informational search

o Navigational search

o Transactional search

• Strategies and tactics produce: o Organic search listings

o Paid search listings • Pay-per-click(PPC) • (produce click-through

rates) o Social media optimization

Mobile and Social Search

• Mobile Search o Technically configured mobile sites o Content designed for mobile devices

• Social Search o Facebook new AI-based search features, including image

search based on content and not tags

• Intelligent Personal Assistant (IPA) and Voice Search o Alexa o Siri o Business looking into uses

Web Search for Business

• Business search with Google and Bing o Focused search in different formats o Filetype:[file extension] o Advanced search: narrowing down parameters o Search tools button: locations or time frames o Search history: queries and pages visited

Business Trends

• Real-time Search o Google Trends o Google Alerts o Twitter Search

• Social Bookmarking Search o Page links tagged with keywords

• Specialty Search: Vertical Search o Programmed to focus on webpages related to a particular

topic and to drill down by crawling pages that other search engines are likely to ignore.

Using Search Technology for Business Success 1. What is the primary difference between a web

directory and a crawler based search engine? 2. What is the purpose of an index in a search engine? 3. Why are companies increasingly interested in

enterprise search tools capable of handling unstructured data?

4. What is the difference between search engine optimization and PPC advertising?

5. Describe three different real-time search tools.

Search Engine Optimization: Google’s Search Factors (1 of 2) On-Page (directly controlled by webpage creator) o Content

• Quality, relevance, up-to-date o Functionality and Programming

• Responsiveness, load time, secure connection, metadata, click-through-rate (CTR), keyword connection

Search Engine Optimization: Google’s Search Factors (2 of 2) Off-Page (influenced but not directly controlled by SEO professionals) o Relevance and Credibility

• Backlinks to target site • Click-through-rate (CTR) • Dwell time (how longer user stays on page)

o Personalized Search • Location-based • Past history • Social experience

Content and Inbound Marketing • Inbound marketing

o An approach to marketing that emphasizes SEO, content Marketing, and social media strategies.

• Outbound marketing o Traditional approach using mass media advertising.

Organic Search and Search Engine Optimization • Black Hat SEO

o Gaming the system or tricking search engines into ranking a site higher than its content deserves.

1. Link spamming: generating backlinks toward SEO, not adding user value.

2. Keyword tricks: embedded high-value keywords to drive up traffic statistics.

3. Ghost text: text hidden in the background that will affect page ranking

4. Shadow (ghost or cloaked) pages: created pages optimized to attract lots of people through redirect

Organic Search and Search Engine Optimization Review 1. Search engines use many different “clues” about the quality of a website’s

content to determine how a page should be ranked in search results. Explain how a search engine uses specific factors to determine the quality of a website’s content.

2. Backlinks are an important ranking factor in SEO. Explain what a backlink is and why search engines use it to determine how websites are listed in SERPs.

3. Explain why so-called black hat SEO tactics are ultimately short-sighted and can lead to significant consequences for businesses that use them.

4. What is the fundamental difference between on-page and off-page SEO factors?

5. Explain why providing high quality, regularly updated content is the most important aspect of any SEO strategy.

Pay-Per-Click Strategies

• PPC advertising campaigns: o Set an overall budget o Create ads o Select associated keywords o Set up billing account information o Modify key words and ad copy based on results

Quality Score Factors

• Determined by factors related to the user’s experience. o Expected keyword click-through-rate (CTR) o The past CTR of your URL (web address) o Past effectiveness o Landing page quality o Relevance of keywords to ads o Relevance of keywords to customer search o Geographic performance in targeted regions o Ad performance on difference devices

Pay-Per-Click Advertising Metrics

• Click through rates (CTR): used to evaluate keyword selection and ad copy campaign decisions.

• Keyword conversion: should lead to sales, not just visits.

• Cost of customer acquisition (CoCA): amount of money spent to attract a paying customer.

• Return on advertising spend (ROAS): overall financial effectiveness.

Pay-Per-Click and Paid Search Strategies Review

1. What would most people say is the fundamental difference between organic listings and PPC listings on a search engine?

2. What are the five primary steps to creating a PPC advertising campaign on search engines?

3. In addition to the “bid price” for a particular keyword, what other factor(s) influence the likelihood that an advertisement will appear on a search results page? Why don’t search engines just rely on the advertisers bid when deciding what ads will appear on the search results page?

4. How do on-page factors influence the effectiveness of PPC advertisements? 5. What factors determine an ad’s quality score? 6. Describe four metrics that can be used to evaluate the effectiveness of a PPC

advertising campaign.

A Search for Meaning—Semantic Technology • Semantic Web

o Meaningful computing using metadata: application of natural language processing (NLP) to support information retrieval, analytics, and data-integration that compass both numerical and “unstructured” information

• Semantic Search o Process of typing something into a search engine and getting

more results than just those that feature the exact keyword typed into the search box

• Metadata o Data that describes and provides information about other

Evolution of the Web Table 6.2 Evolution of the Web

Web 1.0 (The Initial Web) A Web of Pages

Pages or documents are “hyperlinked,” making it easier than ever before to access connected information.

Web 2.0 (The Social Web) A Web of Applications

New applications and technologies allow people to easily create, share, and organize information.

Web 3.0 (The Semantic Web) A Web of Data

Using metadata tags, artificial intelligence, natural language processing, and other semantic tools, computers can be used to access specific information across platforms and applications, regardless of the original structure of the file, page or document. It turns the Web into a giant readable database.

The Languages of Web 3.0

• Resource description framework (RDF) o Used to represent information about resources

• Web ontology language (OWL) o Language used to categorize and accurately identify the

nature of Internet things

• SPARCQL protocol o Used to write programs that can retrieve and manipulate data

scored in RDF

• RDF query language (SPARCQL)

Semantic Web and Semantic Search

• In addition to metadata tags, semantic search engines use a variety of strategies to find meaning: o natural language processing o contextual cues o synonyms o word variations o concept matching o specialized queries

Semantic Search Features and Benefits (1 of 2)

• Semantic Search Features o Related searches/queries: alternatives provided o Reference results: reference material provided o Semantically annotated results: search terms and related

terms are highlighted o Full-text similarity search: a full block of text can be searched o Search on semantic/syntactic annotations:

<organization> center </organization> Johnson Research Center

Semantic Search Features and Benefits (2 of 2)

• Semantic Search Features o Concept search: returns results related to concept o Ontology-based search: uses relationships between data

“What vegetables are green?” o Semantic Web search: uses tagged data o Faceted search: filtering based on predefined facets o Clustered search: similar to facet search but without

predefined facets o Natural language search: extracts keywords from full question

Semantic Web For Business

• Semantic Web offers opportunities and challenges for businesses o Must optimize websites for semantic search o Metadata optimization produces richer and more attractive

SERP listings (rich snippets) o Detailed organic search listings produce greater CTRs

A Search for Meaning—Semantic Technology 1. List five different practical ways that semantic technology is

enhancing the search experience of users. 2. How do metadata tags facilitate more accurate search results? 3. Briefly describe the three evolutionary stages of the Internet? 4. Define the words “context,” “personalization,” and “vertical

search” and explain how they make for more powerful and accurate search results.

5. What are the three languages developed by the W3C and associated with the semantic Web?

Recommendation Engines

• Proactively identify products that have a high probability of being something the consumer might want to buy.

• Amazon has long been recognized as having one of the best recommendation engines.

• Credited with generating 35% of Amazon sales. (Arora, 2016)

Recommendation Filters

• Content-based filtering o Based on item similarity o Uses product features in past interactions (viewing, liking,

purchasing, wish list) o Netflix, Pandora use this method

• Collaborative filtering o Based on user’s similarity to other people o Analyzes purchase history

• Other systems being developed o Knowledge-based o Demographic

Hybrid Recommendation Engines

• Hybrid Approaches o Weighted hybrid: results from different recommenders are

assigned weight and combined numerically to determined final recommendations.

o Mixed hybrid: results from different recommenders presented along-side of each other.

o Cascade hybrid: results from different recommenders assigned a rank or priority.

o Mixed hybrid: results from different recommenders combines results from two recommender systems from the same technique category.

Recommendation Engines Review

1. How is a recommendation engine different from a search engine? 2. Besides e-commerce websites that sell products, what are some other

ways that recommendation engines are being used on the Web today? 3. What are some examples of user information required by

recommendation engines that use collaborative filtering? 4. Before implementing a content-based recommendation engine, what

kind of information would website operators need to collect about their products?

5. What are the four limitations or challenges that recommendation systems sometimes face?

6. What is a recommendation engine called that combines different methodologies to create recommendations? What are three ways these systems combine methodologies?

Section 117 of the 1976 United States Act without the express written permission of the

Permissions Department, John Wiley & Sons, Inc. The purchaser may make back-up

copies for his/her own use only and not for distribution or resale. The Publisher assumes

no responsibility for errors, omissions, or damages, caused by the use of these programs

or from the use of the information contained herein.

IT for Management: On-Demand Strategies for Performance, Growth, and Sustainability

Eleventh Edition

Turban, Pollard, Wood

Chapter 7

Web 2.0 and Social Technology

Web 2.0—The Social Web

• The Constantly Changing Web o Web 2.0 (the social web): a term used to describe a phase of

World Wide Web evolution characterized by dynamic webpages, social media, mashup applications, broadband connectivity and user-generated content.

o Social media: a collection of Web applications, based on Web 2.0 technology and culture that allows people to connect and collaborate with others by creating and sharing digital content.

Invention of the World Wide Web

• The Constantly Changing Web o World Wide Web (the Internet): a network of documents on

the Internet, called webpages, constructed with HTML markup language that supports links to other documents and media.

o Broadband: refers to wide bandwidth technologies that create fast, high volume connections to the Internet and World Wide Web.

o Social media: a collection of Web applications based on Web 2.0 technology and culture that allow people to connect and collaborate with others.

Table 7.2: Web 1.0 vs. Web 2.0

Web 1.0—The Early Web Web 2.0—The Social Web Static pages, HTML Dynamic pages, XML, and Java Author-controlled content User-controlled content Computers Computers, cell phones, televisions, PDAs,

game systems, car dashboards Users view content Users create content Individual users User communities Marketing goal: influence Marketing goal: relationships Data: single source Data: multiple sources e.g., mashups

Emergence of the Social Web (1 of 2)

• Setting the Stage for Web 2.0 o Broad bandwidth (broadband): Internet access became faster

with largescale adoption of broadband o Sustainable business models endured over time, and

generated revenue (Amazon, Google, eBay) o New Web programming technologies: ability to develop web

pages that are dynamic and rich in features

Emergence of the Social Web (2 of 2)

• Setting the Stage for Web 2.0 o Application programming interface (API): set of commands

and programming standards used by developers to write applications that can communicate with other applications.

o Software Development Kit (SDK): a collection of software tools used by developers for writing applications that run on a specific device or platform.

Together, APIs and SDKs have fundamentally changed the degree to which businesses share their information resulting in a vastly improved and more useful World Wide Web.

AJAX Technologies and APIs AJAX technologies, or asynchronous JavaScript and XML, is a term referring to a group of technologies and programming languages that make it possible for webpages to respond to users’ actions without requiring the entire page to reload. AJAX technologies include: o JavaScript

o Extendable Markup Language (XML)

o Document Object Model (DOM)

o HyperText Markup Language (HTML)

o XMLHttpRequest

o Cascading Style Sheets (CSS)

Table 7.4: Communicating on the Web Facebook Social Plug-Ins Used Across the Web

Like button Shares pages from a website back to the user’s Facebook profile

Send button Allows users to send content from a website to their Facebook friends

Comments This plug-in allows users to comment on a webpage’s content using their Facebook profile and shows the activity to the user’s friends in a newsfeed

Embedded posts Places content from any public Facebook post on to your website or blog

Facepile This feature displays the profile photos of the people who have connected with your Facebook page or app

Login button Shows profile pictures of the user’s friends who have already signed up for your site in addition to the login button

Source: Facebook (2014)

Social Media Applications and Services

• Social Media Applications and Services o Social Networking Service (SNS): an online platform or website

that allows subscribers to interact and form communities or networks based on real-life relationships, shared interests, activities and so on.

Both YouTube and Facebook started as SNSs, but now span multiple application categories.

Categories of Web 2.0 Applications Application Description

Social Networking Services (SNS) Online communities

Blogs Online journals

Mashups/widgets/RSS Web applications that pull data from various sources and display on another page to create new functionality

Social bookmarking/tags An application for tagging or labeling online content for later retrieval

Wikis An application for tagging or labeling online content for later retrieval

Sharing sites Websites that make it easy for users to upload and share digital content like photos, videos, or music

More than Facebook, YouTube, & Twitter

• Businesses use social media for a wide variety of benefits: o Collaboration o Communication and Engagement with Customers (Marketing) o Image and Reputation Management (Public Relations) o Communication and Engagement with Employees and

Partners (Management) o Talent Acquisition and Recruiting (Human Resources) o Research and Knowledge Management o Productivity and Information Utilities o Fund Raising

Elements of Social Media (1 of 2)

• Elements of Social Media: What Makes it Different? o User-generated content (UGC) o Content control o Conversation o Community (common values, culture) o Categorization by users (tagging)

Elements of Social Media (2 of 2)

• Elements of Social Media: What Makes it Different? o Real people (profiles, usernames, and the human

voice vs. the corporate “we”) o Connections (followers, friends, members, etc.) o Constant updating (real-time, dynamic) o Content separated from form o Equipment independence

Web 2.0: Markets are Conversations

• Cluetrain Manifesto – a revolutionary way of thinking about the Web o Understanding not only how people behave, but also the way

they think about things. o Transforms Markets to Conversations where successful

companies will learn to engage customers instead of traditional unidirectional or broadcast communications.

Web 2.0: The Power of the Groundswell

• Groundswell: o “a spontaneous movement of people using online tools to

connect, take charge of their own experience and get what they need  information, support, ideas, products, and bargaining power  from each other”). Li and Bernoff (2008).

• Business Priorities to Leverage the Groundswell: o Listening o Talking o Energizing o Supporting o Embracing

Web 2.0—The Social Web Review 1. How has Web 2.0 changed the behavior of Internet

users? 2. What are the basic tools or applications that

characterize Web 2.0? 3. Why is Web 2.0 referred to as the social Web? 4. What are some of the benefits or advantages that Web

developers gain from using AJAX technologies? 5. What are some of the most important messages for

business organizations in the Cluetrain Manifesto? 6. What is feature convergence? Give some examples of

Social Networking Services and Communities: Old Web vs New Web • Originally, online or virtual communities paralleled physical

communities, but were primarily user-to-user interactions. • Usenet and Newsgroups provided a static means of

communicating messages. • Online communities have transformed to include:

o The Blogosphere (all blogs on the web) o Sharing views and comments on videos (YouTube) o Sharing opinions on products and services (Epinions) o Online knowledge base (Wikipedia) o Exchanging short, 140 character message (Twitter) o Large SNS sites like Facebook and LinkedIn

Social Media Usage

Figure 7.2 Data collected in 2016 illustrate that people spend more time on Facebook than any other social networking site. One of the newest social platforms, Snapchat, is already in second place across age groups, although younger people spend almost three times longer on the service than older people.

Social Network Analysis (SNA)

• The mapping and measuring of relationships and flows between people, groups, organizations, computers, or other information or knowledge-processing entities.

• Social graph: to the global social network reflecting how we are all connected to one another through relationships.

• Giant global graph: illustrates the connections between people and/or documents and pages online.

• Connecting all points on the giant global graph is the ultimate goal for creators of the semantic web.

The Power of the Crowd (1 of 2)

• Leveraging the Power of the Crowd o Crowdsourcing: a model of problem solving and idea

generation that marshals the collective talents of a large group of people.

• Categories of Crowdsourcing Sites: o R & D o Marketing, Design & Ideas o Product Ideas o HR & Freelance Work o Crowdfunding o Peer to Peer

The Power of the Crowd (2 of 2)

• Leveraging the Power of the Crowd o Crowdfunding: turning to a crowdsourcing model to raise

money for business start-ups or projects such as Kickstarter and GoFundMe.

• Categories of Crowdfunding: o Donations o Rewards o Credit o Equity o Royalties

Social Networking Services: Facebook

Facebook Statistics

Social Networking Services: Differentiation • While SNS sites share some common features, they are

not all alike. As the category matures, sites are differentiating themselves in a variety of ways: o Target age group o Geographic location of users o Language o Area of interest; for example, music, photography, gaming,

travel o Social vs. professional networking o Interface; for example, profile page, microblog, virtual world,

emphasis on graphic vs. text content

Social Networking Services: Facebook Dominates • Newsfeed: constant stream of status updates, now

contains sponsored ads. • Timeline: shows progression chronologically. • Additional controls added as response to a rise in

privacy concerns. • Global expansion • IPO in 2012

Social Networking Services: Facebook Initiatives • Open Graph

o Goal: to connect all the different relationships that exist on the Internet by linking websites to Facebook.

o Programmers at external websites encouraged to include a Facebook “Like” button on their websites.

• Social Logins o Facebook also encourages other websites to allow people to

use their Facebook username and password to sign in or create accounts.

Social Networking Services: Google+

• Google+ (G+) performance hard to estimate o 2.5 billion accounts (includes all Gmail users) o More like 4-6 million active users who engage, interact, and

post publicly

• Rivalry with Facebook? o Not meeting early expectations o Second place position

• Continuing improvements o Hidden value in all those billions of profiles o Still updating and maintaining presence

Social Networking Services: Snapchat

• Snapchat – the newcomer o Founded in 2011 as a mobile-only service o Rapidly rising to challenge Facebook among digital natives

• Features o Fun messaging app that emphasizes communication through

pictures and videos instead of the text based messages o Picture and video messages self-destruct within 10 seconds

after being viewed

• In 2017, the daily user base has grown to more than 160 million people sharing 2.5 billion snaps a day

Social Networking Services: Virtual Reality • Second Life

o Second Life is a social network that uses avatars to represent their residents (users). Users can develop their own apps.

o Avatars are an icon, figure, or visual representation of a person in a digital environment.

o Recently released an upgraded virtual reality space called “Sansar” that takes advantage of new technology like the Oculus Rift, a virtual reality (VR) headset that creates an immersive experience for users.

o Facebook invested close to $2 billion to acquire Oculus.

https://www.oculus.com/rift/

Social Networking Services: Private

• Social communities with restricted membership used by many colleges and universities.

• Easier to monitor activities and track conversations. • Requires considerably more time, attention, and

resources than using general SNS.

Social Networking Services and Communities 1. What are the major differences between social networking services and older

online communities?

2. What is the basic difference between the social graph and Berners-Lee’s concept of the Giant Global Graph?

3. Explain Facebook’s Open Graph initiative and how it plans to expand its influence across the World Wide Web.

4. What are some potential ways that business organizations can take advantage of Second Life’s unique virtual world interface?

5. Why would a business want to create a private SNS? What are some of the challenges associated with doing this?

Engaging Consumers with Blogs and Microblogs • Blogs

o Websites where people regularly post a variety of content in various digital formats.

o Blogs can establish reputations and promote business interests and/or share viewpoints.

o Blogosphere is a network of blogs. o Microblogs are frequent, but brief posts containing text,

pictures, or video, Twitter and Tumblr are popular microblogging apps.

Engaging Consumers with Blogs and Microblogs: Blogging Platforms • Software application used to create and edit content

with features that make blogging relatively easy. • WordPress (51%) and Blogger (21%) are the most

popular blogging platforms.

Engaging Consumers with Blogs and Microblogs: Twitter • Has increased in popularity to become one of the world’s largest

communication platforms. • A valuable tool for activists engaged in hashtag activism, or

organizing protests, debating political viewpoints, and broadcasting real-time information through tweets.

• Has become a primary channel for real-time updates on events and issues in politics, entertainment, social causes and sports.

• Uses content tags called Hashtags (#) to allow users to follow conversations and/or trends in the Twittersphere (universe of Twitter users).

Engaging Consumers with Blogs and Microblogs: Twitter for Business • Growing Use of Twitter

o Over 65% of businesses now use Twitter for market communications

o Companies spending $3 billion a year on promoted tweets o Celebrities, companies, products, and services. o Coupons and specials. o News and political platforms. o Friendly status updates.

Engaging Consumers with Blogs and Microblogs: Tumblr • Another update services providing microblogging with emphasis

on photographs and video. • Allows just as much text as a regular blog, but Tumblr is mostly

used for fashion, entertainment, and the arts. • More visually compelling than Twitter.

Engaging Consumers with Blogs and Microblogs Review 1. What is the difference between a blog and a microblog? 2. What is a blogging platform? 3. Why do marketers use blogs and microblogs? 4. What makes Twitter a more attractive communication

channel than traditional media for many individuals and organizations?

5. How is Tumblr different from other types of blogging platforms?

Mashups, Social Metrics, and Monitoring Tools: Mashups • Web applications that combine information from two or more

sources. • Present information in a way that creates some new benefit or

service. • A common use is to integrate map data with information like

store names, locations, phone numbers. • Popular APIs are from social media sites (user-generated social

information). • No longer a closed, proprietary environment.

Mashups, Social Metrics, and Monitoring Tools: RSS • RSS (really simple syndication)

o Allows users to subscribe to multiple sources (e.g., blogs, news headlines, social media feeds, videos and podcasts) and have the content displayed in a single application, called an “RSS reader”.

o Provides for real-time consumption and personalized organization and display of news information.

o Mostly free service (Feedly.com, Digg.com)

Mashups, Social Metrics, and Monitoring Tools: Services • Monitoring Service o Conversation tracking on social media sites

• Paid services: Social Studio, Oracle Social Cloud • Free services: Twitter Search, Social Mention

o Provides organizations a better understanding of brand, product, and even executive perception from consumers.

o Brand advocates positively portray a brand or company online.

Mashups, Social Metrics, and Monitoring Tools: Social Mention • SocialMention.com

o Free monitoring service o Aggregates content from over 80 social media sites including

Facebook o Can generate metrics daily and track over time:

• Strength – likelihood topic is being discussed • Passion – degree to which people are discussing it • Sentiment – tone of the conversation • Reach – range of influence

Mashups, Social Metrics, and Monitoring Tools Review 1. Why are mashups considered part of social media? 2. Describe a typical consumer mashup. 3. What is an RSS reader? 4. Describe the ways in which businesses can benefit from

using social media monitoring tools? 5. Explain the difference between the Strength metric and

the Sentiment metric reported by Socialmention.com.

Workforce Collaboration and Knowledge Sharing Tools (1 of 2) • Tools for Meetings and Discussion

o Dialogue or Synchronous Communication is important part of the collaborative process

o Tools now commonly used to aid collaboration • Video calls between 2 or 3 people: Skype, GoToMeeting • Video conferencing platforms for up to 10 participants:

Google+ Hangouts

Workforce Collaboration and Knowledge Sharing Tools (2 of 2) • Social Tools for Information Retrieval and Knowledge

Sharing o Discussion Groups: provide a forum for asking questions to

groups of people (AMA, LinkedIn) o Q&A websites (Quora, Reddit, StackExchange) o Social Search Tools: identify and share information relevant to

a project topic (Facebook, YouTube)

Workforce Collaboration and Knowledge Sharing: Social Bookmarks • Diigo and Delicious • Diigo provides approval buttons and highlight features

for member collaboration. • Delicious uses folksonomy to provide content search

results based on human tags or interests.

Workforce Collaboration and Knowledge Sharing: Content • Content Creation and Sharing

o Cloud storage services: uses the Internet for storage and retrieval of information.

o Dropbox allows the storage and sharing of files and folders with others.

o Box.net places greater emphasis on social tools and features for collaboration.

o Wikis provide encyclopedia-like webpages, driven by collaborative open-edit content.

Workforce Collaboration and Knowledge Sharing Review 1. How can working teams use social media as an alternative to face-to-

face meetings? 2. Why are social bookmarking services superior to the traditional

method of saving “favorites” or “bookmarks” in a browser? 3. What are some ways you can use social media to solicit knowledge,

information, and advice from experts on the Web? 4. What advantages do sites like Dropbox and box.net have over e-mail as

a way of sharing and collaborating on creating documents? 5. Why are search results generated on a social bookmarking site likely to

be different from search results from Google or Bing?

Section 117 of the 1976 United States Act without the express written permission of the

Permissions Department, John Wiley & Sons, Inc. The purchaser may make back-up

copies for his/her own use only and not for distribution or resale. The Publisher assumes

no responsibility for errors, omissions, or damages, caused by the use of these programs

or from the use of the information contained herein.

IT for Management: On-Demand Strategies for Performance, Growth, and Sustainability

Eleventh Edition

Turban, Pollard, Wood

Chapter 8

Retail, E-Commerce, and Mobile Commerce Technology

Retailing Technology: Consumer Demands

• Keeping Up With Consumer Demands and Behavior o A dizzying array of new technologies are exciting and

unproven. o Adoption is vital, but budgets are limited. o Consumers are demanding, price-conscious, and easily

swayed by competitors. o Overly aggressive marketing leads to financial ruin, but risk

aversion loses out to competition.

Retailing Technology: Consumer Behavior (1 of 3)

• Trends and Changing Behavior o Empowered Price Sensitivity: using the latest technology to

find the lowest price available. o Nonlinear Search and Influence Patterns: consumers pursue

path through a range of new communications channels including social media, mobile ads, e-mail, search marketing, and other digital communications.

o Channel Hopping: increased communication channels through which consumers can now purchase products (traditional retailers, online, and via mobile devices and apps) called social commerce.

Retailing Technology: Consumer Behavior (2 of 3)

• Consumer Demands and Behavior o Digital Immigrants: older consumers that fundamentally view

retail channels as separate and distinct. o Digital Natives: first digital generation surrounded by digital

devices and Internet connectivity. o Digital Dependents: emerging generation growing up in a

world of broadband connections, constant connectivity that place greater demands on retailers to use technology.

Retailing Technology: Consumer Behavior (3 of 3)

• Need for Convenience o Economic and social factors lead to more stressful lives. o Consumers look for products and shopping channels that

reduce the impact on time and financial resources. o An increasing demand to satisfy immediate gratification and

desirable goods and services.

The Omni-Channel Retailing Concept

Figure 8.3 Retail strategy is evolving toward an omni-channel approach (adapted from National Retail Federation, 2011).

Retailing Technology 1. Describe the factors that influence consumer shopping

behavior today. 2. What does the concept of digital native, digital

immigrant, and digital dependent help us to understand about people’s use of technology during shopping activities?

3. Why are retailers likely to view technology as both a blessing and a curse?

4. Describe how an omni-channel retailer is likely to be different from a traditional, single-channel retailer?

Business to Consumer (B2C) E-commerce

• Purchasing Online o The most well-known B2C site is Amazon.com, whose IT

developments received U.S. patents that keep it ahead of competition.

o Broader selection, lower prices, and easy searching and ordering are featured through e-commerce.

o Electronic Wallet (e-wallet ): a software application that can store encrypted information about a user’s credit cards, bank accounts, and other information necessary to complete electronic transactions.

Business to Consumer (B2C) E-commerce: Amazon Model • Amazon

o Invested hundreds of millions of dollars in warehouses designed for shipping small packages to hundreds of thousands of customers.

o Designed One-Click shopping, highlighted by the e-wallet, allowing order status viewing and order fulfillment modifications.

o Numerous patentable e-commerce designs provide continued competitive advantage.

Business to Consumer (B2C) E-commerce: Online Banking • Online Services

o Electronic fund transfer (EFT): transfer of funds from one bank account to another over a computerized network.

o Transaction cost reduction is significant: banks pay $.02 for online versus $1.07 at a physical branch.

o Investment options and loan rates online easily undercut those of many brick-and-mortar (conventional) banks.

Business to Consumer (B2C) E-commerce: Recruiting • Employment o Job openings, résumés, and applications can be

transmitted or completed 24/7, 365. o Job seekers use social media network contacts

(LinkedIn). o Over 95% of employers use LinkedIn to identify

prospective candidates. o Online reputation of both job seeker and employer

can be researched and/or built.

Business to Consumer (B2C) E-commerce: Retailing Issues (1 of 3)

• Resolving Channel Conflict o When regular wholesalers (on-ground) and retailers

(on-line) circumvent direct online distributors. o May limit B2C efforts not to sell directly. o May force collaboration with existing distributors.

• Conflicts within click-and-mortar organizations o Online sales may impact offline operations o Companies may separate online from traditional

divisions, but this may increase expenses and reduce synergies.

Business to Consumer (B2C) E-commerce: Retailing Issues (2 of 3) • Managing Order Fulfillment and Logistics

o Online sales force the need to design systems to accept and process huge volumes of small orders, physical delivery including labeling.

o Reverse Logistics is the return process.

• Viability and Risk of Online Retailers o The dot.com era bankrupted many pure online retailers due to cash flow,

customer acquisition, order fulfillment, and demand forecasting problems. o Low entry barriers intensify competition!

• How long to operate while losing money? • How to finance operating losses?

Business to Consumer (B2C) E-commerce: Retailing Issues (3 of 3)

• Identifying Appropriate Revenue Models o Early dot.com model:

• Generate enough revenue from advertising to keep the business afloat until customer base critical mass is reached.

• Too few dotcoms were competing for too few advertising dollars

• Advertising went to a select group of sites (AOL, MSN, or Yahoo)

Business to Consumer (B2C) E-commerce: Planning

• Online Business and Marketing Planning o Build the marketing plan around the customer, rather than on

products. o Monitor progress toward the one-year vision for the business

in order to identify when adjustments are needed, and then be agile enough to respond.

o Identify all key assumptions in the marketing plan. When there is evidence that those assumptions are wrong, identify the new assumptions and adjust the plan.

o Make data-driven, fact-based plans.

Business to Consumer (B2C) E- commerce Review 1. Describe how digital content and services can lead to

significantly lower costs. 2. Why does channel conflict sometimes occur when companies

sell their products through both traditional and online channels? 3. How has Amazon maintained its competitive edge? 4. Describe some of the ways that Ally Bank has become one of the

most successful direct banks in the industry today. 5. Explain why retail banking has become one of the least trusted

industries by consumers since the early 2000s. 6. List three online marketing planning recommendations.

Business to Business (B2B) E-commerce and E-procurement • Business-to-business (B2B) Markets

o The buyers, sellers, and transactions involve only organizations

o B2B comprises about 85 percent of e-commerce dollar volume o Enterprise forms electronic relationships with distributors,

resellers, suppliers, customers, and other partners

• Business models for B2B applications: o Sell-side marketplaces o E-sourcing (the buy-side marketplace)

Business to Business (B2B): Sell-side Marketplaces

• Sell-Side Marketplaces o Where organizations sell their products or services to other

organizations from their own private website or from a third- party site.

o Creates greater competition for sellers (a buyer advantage) o Similar to B2C model, but the ‘C‘ is an organization.

• Amazon Business • Alibaba wholesaling Chinese products • Dell Computer auctions through eBay • Overstock.com for obsolete of excess assets

Business to Business (B2B): E-sourcing

• Different procurement methods that make use of an electronic venue for identifying, evaluating, selecting, negotiating, and collaborating with suppliers.

• Primary methods include: Online auctions, Request for Quotes (RFQ) processing, and private exchanges.

• Secondary activities include: trading partner collaboration, contract negotiation, and supplier selection.

Business to Business (B2B): E-procurement

• Corporate procurement (corporate purchasing): transactional elements of buying products and services for operational and functional needs.

• Direct procurement: buying materials to produce finished goods.

• Indirect procurement: buying materials for daily operations.

• E-procurement: reengineered procurement using e- business technologies and strategies.

Business to Business (B2B): E-procurement Goals • Control Costs & Simplify Processes (streamlining) o Streamline within an organization’s value chain. o Align the organization’s procurement process with

those of other trading partners, which belong to the organization’s virtual supply chain.

o Analyze spending patterns in an effort to improve spending decisions and outcomes.

Business to Business (B2B): Electronic Data Interchange (EDI) • Public and Private Exchanges o Vertical exchanges serve one industry along the

entire supply chain (automotive, chemical, manufacturing, etc.).

o Horizontal exchanges serve many industries using the same products or services (office supplies, cleaning materials, bearings, etc.). Also called Maintenance, Repair, and Operations (MRO) supplies.

Business to Business (B2B) E-commerce and E-procurement Review 1. Briefly differentiate between the sell-side

marketplace and e-sourcing. 2. What are the two basic goals of e-procurement?

How can those goals be met? 3. What is the role of exchanges in B2B? 4. Explain why maverick buying might take place

and its impact on procurement costs.

Mobile Commerce

• Mobile Commerce, or M-Commerce: o The buying or selling of goods and services using a wireless,

handheld device such as a cell phone or tablet (slate) computer.

• Mobile E-Commerce o The use of a wireless handheld devices to order and/or pay for

goods and services from online vendors.

Mobile Commerce: Retailing & Marketing

• Mobile Retailing o The use of mobile technology to promote, enhance, and add

to value to the in-store shopping experience.

• Mobile Marketing o A variety of activities used by organizations to engage,

communicate, and interact over Wi-Fi and telecommunications networks with consumers using wireless, handheld devices.

Mobile Commerce: Competitive Advantage

• M-commerce provides competitive advantage

• In-Store Tracking o Tracking a customer’s movement

through a retail store through mobile technology to optimize shopping experiences.

• Quick Response (QR) Codes o Customers scan the QR code

containing a link to an Internet webpage.

o Easier alternative to typing a URL address into a mobile browser.

Mobile Entertainment Expanding

• Most notable are music, movies, videos, games, adult entertainment, sports, and gambling apps.

• Apps can track sporting news, record workout times, record heart rates, analyze a person’s golf swing.

• The iTunes Store, Google, and Amazon continue to be leading distributors of digital music, movies, TV shows, e-books, and podcasts.

• Mobile device improvements are predicted to increase video clips, movie, and television use on/through mobile devices toward $20 billion.

Mobile Travel Services

• Mobile Payment Systems o In 2016, 38.4 million Americans

will have used a mobile phone to purchase goods or services at least once in the last six months

o Proximity mobile payments, based on RFID technology, will increase to $314 billion by 2020

• Mobile Phone used for: o Online shopping or o Payment for traditional

purchases

Mobile Social Networking

• Facebook added mobile access in recent years to stay competitive.

• Snapchat is completely app-based. • Occurs in virtual communities, offering users to access

their accounts from a smartphone or other mobile device.

• Primary driver of growth in the mobile app industry.

Mobile Commerce App Features

• Location-Based Marketing o Advertising using mobile GPS systems to determine user

locations. o Structured as mobile social media games to elicit consumer

information and ratings for special attention or discounts from retailers.

• Augmented Reality (AR) o Apps that utilize a special technology to create computer-

generated graphic superimposed images based on where/how a user points their phone or camera.

Mobile Search

• Almost 60% of all Internet searches are conducted from a mobile device

• Over half of all web traffic comes from mobile devices • As a result, Google and other Internet search engines

now use the performance of a company’s mobile website as part of the criteria for ranking listing in search results

SEO specialists must now focus on a set of new factors for optimizing websites for mobile search.

Mobile Commerce Review 1. Describe some of the ways that people are using mobile devices

to shop for products and services. 2. What are some ways in which traditional brick-and-mortar

retailers can use mobile technology to enhance a customer’s in- store shopping experience?

3. List the types of mobile entertainment available to consumers. 4. List some ways that travelers and travel-related businesses are

using mobile technology. 5. How are companies using QR codes to promote products and

services to mobile consumers? Why are QR codes not as popular in the U.S. as they are in Asia and other parts of the world?

6. Explain why the mobile gaming market represents such a lucrative market opportunity.

Mobile Transactions and Financial Services

• Hotel Services and Travel o Airline QR boarding passes and

SMS flight updates

o Google Maps widely used for automobile navigation

o Travel planning with roadside assistance, Wi-Fi hotspots, and recommendations

o Hotel guest reservations, bill checking, and local services

Mobile Payment Systems (1 of 2)

• Charge to Phone Bill with SMS Confirmation o Uses secure PIN through SMS to validate payment (like

Zong.com).

• Augmented Reality (AR) o Apps that utilize a special technology to create computer-

generated graphic superimposed images based on where/how a user points their phone or camera.

Mobile Payment Systems (2 of 2) • Transfer of Funds from Payment Account Using SMS

o Phone sends SMS to transfer payment through third party (Obopay.com, PayPal.com)

• Mobile Phone Card Reader o Phone attached device allows credit card swipe (Square.com,

Paypal.com)

• Micropayments o Transactions involving small sums of money (vending

machines, parking meters)

• Mobile Bill Payments o Payments made directly from cell phone (Western Union,

Citibank, HDFC Bank in India)

Mobile Banking Services

• Natural extension of online banking • Uses combination of mobile media channels

o (SMS, mobile Web browsers, customized apps)

• Common services include account alerts, balance information, branch location, bill pay, funds transfers and verification

• Mobile banking benefits seem to outweigh potential security threats.

• Increasing mobile banking likely means increased targeting of mobile financial activities.

Mobile Banking Security Risks Cloning Duplicating the electronic serial number (ESM) of one phone and using it in second phone, the clone. This allows the perpetrator to have calls and other transactions billed to the original phone.

Phishing Using a fraudulent communication, such as an e-mail, to trick the receiver into divulging critical information such as account numbers, passwords, or other identifying information.

Smishing Similar to phishing, but the fraudulent communication comes in the form of an SMS message.

Vishing Again, similar to phishing, but the fraudulent communication comes in the form of a voice or voicemail message encouraging the victim to divulge secure information.

Lost or stolen phone Lost or stolen cell phones can be used to conduct financial transactions without the owner’s permission.

Mobile Transactions and Financial Services Review 1. What are the two basic technologies used for mobile banking and

financial services? 2. Why have e-wallets not been widely adopted and what will makers of e

-wallets need to do to make this payment method more attractive to consumers?

3. What are the most common types of mobile banking activities consumers perform?

4. What are the most common security risks associated with mobile banking?

5. Describe some of the mobile payment systems currently available to merchants and consumers.

6. What is a micropayment and why is it beneficial to consumers and businesses that mobile payment systems can process these types of transactions?

Section 117 of the 1976 United States Act without the express written permission of the

Permissions Department, John Wiley & Sons, Inc. The purchaser may make back-up

copies for his/her own use only and not for distribution or resale. The Publisher assumes

no responsibility for errors, omissions, or damages, caused by the use of these programs

or from the use of the information contained herein.

IT for Management: On-Demand Strategies for Performance, Growth, and Sustainability

Eleventh Edition

Turban, Pollard, Wood

Chapter 9

Functional Business Systems

Business Management Systems and Functional Business Systems

Two types of information systems support different areas or activities in an organization: • Business Management Systems (BMS)

o designed to support planning and the implementation process across the entire organization

• Functional Business Systems (FBS) o designed to improve the efficiency and performance of a

specific functional area within the organization

Business Management Systems Modules

• Business Management Systems (BMS) aid leadership teams by using technology to improve the organizational planning and implementation process. Typical modules in a BMS are: o Definition of Organizational Mission o Identification of Strengths Weakness Opportunities and

Threats (SWOT Analysis) o Establishing Goals and Measurable Objectives o Defining Strategies, and Key Performance Indicators (KPIs) o Articulation of Tactical or Action Plans – Assigning

Responsibilities and Time Tables o Monitoring and Reporting Progress and Performance

Business Management Systems Overview

• Mission o Set of outcomes an enterprise wants to achieve.

• Strategic Plan o A document used to communicate the company’s goals and

the actions needed to achieve them.

• Management Levels o Planning occurs at three levels of the organization – strategic,

managerial, and operational. o Managers at each level operate with a different timeframe,

which transitions from long-term (a few years) at the strategic level to “in the moment” (daily) at the operations level.

Business Management Systems Management Levels

Figure 9.3 Three organizational levels, their concerns, and strategic and tactical questions, planning, and control.

Functional Business Systems

• Traditional Functional Business Areas o Finance and Accounting o Production/Operations & Supply Chain Management o Marketing and Sales o Human Resources Management

Cross Functional Coordination and Integration

• Departments or functions must be able to coordinate in the development of strategic plans and the performance of operations level actions.

• Integration makes it easier to identify problems or barriers to achieving objectives and develop solutions to those problems.

• Complex processes are managed more effectively through Standard Operating Procedures (SOP), a set of written instructions on how to perform a function or activity.

Standard Operating Procedures: Data Properties

The SOP documents three related data properties in company information systems:

• Data security o the protection of data from malicious or unintentional corruption,

unauthorized modification, theft, or natural causes such as floods.

• Data validity o tests and evaluations used to detect and correct errors, for instance

mistakes that might occur during data entry in fields, such as customer name and address.

• Data integrity o the maintenance of data accuracy and validity over its life-cycle including

the prevention of unintended modification or corruption.

Transaction Processing Systems

• Transaction Processing o information processing that is divided into distinct, undividable operations

called transactions. o used in the functional business systems of all areas.

For example: o Production/Operations: The tracking of materials or component parts as

they enter and exit a warehouse or manufacturing facility. o Marketing and Sales: Management of sales orders and order fulfillment. o Human Resources: Processing of payroll and employee records. o Finance/Accounting: Processing of credits and debits to a customer’s

checking account at a bank

Transaction Processing Systems: The ACID Test Transaction processing systems (TPSs) collect, monitor, store, process and distribute transactional data according to certain criteria referred to as the ACID test. • ACID Test

o Atomicity: If all steps in a transaction are not completed, then the entire transaction is cancelled.

o Consistency: Only operations that meet data validity standards are allowed.

o Isolation: Transactions must be isolated from each other. o Durability: Backups by themselves do not provide durability.

Transaction Processing Systems: Batch and Real Time Processing • Transactions can be processed two ways:

o Batch: all events or transactions are processed together (in a batch) during scheduled times.

o Real Time: events or transactions are processed as soon as they occur.

o Increasingly, organizations today are employing Online Transactions Processing Systems (OTPS).

• Client server systems that allow transactions to run on multiple computers on a network, processing transactions in real time.

Transaction Processing Systems: Batch and Real Time Processing • Transactions can be processed two ways:

o Batch: all events or transactions are processed together (in a batch) during scheduled times.

o Real Time: events or transactions are processed as soon as they occur.

o Increasingly, organizations today are employing Online Transactions Processing Systems (OTPS).

• Client server systems that allow transactions to run on multiple computers on a network, processing transactions in real time.

Solving Business Challenges at All Management Levels

Figure 9.4 Information flows triggered by a transaction or event.

Solving Business Challenges at All Management Levels: Review 1. Explain the purpose of Business Management Systems (BMS). 2. Define what a standard operating procedure (SOP) is and give an

example. 3. Explain each component of the ACID test. 4. Explain the differences between batch and online processing. 5. Explain the relationship between Transaction Processing Systems

(TPS) and Functional Business Systems (FBS).

Production and Operations Management

• Production Operations Management o Production/Operations is sometimes viewed in the larger

context of supply chain management and supporting information systems.

o Production operations management and supply chain management information systems both play a critical role in managing these important functions.

o These systems facilitate coordination between different divisions within an organization or between the organization and its partners.

Production and Operations Management: SCM

Figure 9.5 Companies recognize that careful management of supply chain processes is critical for success in the highly competitive global economy

Transportation Management Systems

• Relied on to handle transportation planning including shipping consolidation, load and trip planning, route planning, fleet and driver planning, and carrier selection. o Four trend factors contributing to TMS growth: o Outdated transportation systems need to be upgraded or

replaced o Growth of intermodal transport o TMS vendors add capabilities o TMSs handle big data

Logistics Management

• Inbound logistics refers to receiving. o Outbound logistics refers to shipping. o Inventory control systems are stock control or inventory

management systems. o Logistics management systems: o Optimize transportation operations o Coordinate with all suppliers o Integrate supply chain technologies o Synchronize inbound and outbound flows of materials or

goods o Manage distribution or transport networks

Inventory Control Systems

• Inventory Control Systems o Important because they minimize the total cost of inventory while

maintaining optimal inventory levels. Inventory control systems minimize the following three cost categories:

• Inventory holding costs • Ordering and shipping costs • Cost of shortages

• Safety Stock o Extra inventory used as a buffer to reduce the risk of stockouts. Also called

buffer stock.

• Stockouts o Inventory shortage arising from unexpected demand, delays in scheduled

delivery, production delays or poor inventory management.

Inventory Costs

Figure 9.6 Inventory Control Systems help companies balance inventory ordering and carrying costs against the cost of inventory shortages.

Just-in-Time Inventory Management Systems

• JIT inventory management attempts to minimize holding costs by not taking possession of inventory until it is needed in the production process.

• Eliminates costs associated with carrying large inventories at any given point in time.

• Higher ordering costs because of more frequent orders. • Higher risk of stockouts • Must have cooperative production and/or supply partners to

succeed

Lean Manufacturing Systems

• Leverages suppliers delivering small lots on a daily or frequent basis, and production machines are not necessarily run at full capacity.

• Empowers workers so that production decisions can be made by those who are closest to the production processes.

• JIT success factors also apply to lean manufacturing. • Requires quality, on-time inventory

Quality Control Systems

• Stand-alone or part of an enterprise-wide total quality management (TQM) effort providing data about the quality of incoming materials or parts, as well as the quality of in-process semi-finished and finished products.

• Data collection by sensors or RFID and interpreted in real-time, or stored in a database for future analysis.

Computer-integrated Manufacturing (CIM) Systems • Custom-designed software that controls day-to-day shop floor

activities • Data-driven automation • Benefits:

o It simplifies manufacturing technologies and techniques o Automates as many of the manufacturing processes as possible, o Integrates and coordinates all aspects of design, manufacturing, and

related functions.

Manufacturing Execution Systems (MESs) Systems • Manage operations in shop factories, sometimes a few critical

machines, sometimes all operations on the shop floor. • Typically broader infrastructure than CIM. • Based on standard reusable application software instead of

customer-designed software.

Manufacturing, Production, and Transportation Management Systems Review 1. What is the function of supply chain management in an

organization? 2. What trends are contributing to the growing use of TMS? 3. Define logistics management. 4. What are the three categories of inventory costs? 5. What are the objectives of JIT? 6. Explain the difference between EOQ and JIT inventory models. 7. What is the goal of lean manufacturing? 8. What is CIM?

Sales and Marketing Systems

• Digital advertising • Social media monitoring and promotions • Sales and customer support • Automated ad placement and media buying • Market research • Intelligence gathering • Distributing products and services to customers • Order tracking • Online and mobile order processing • Online and mobile payment methods

Sales and Marketing Systems and Subsystems

Figure 9.7 Sales and Marketing systems and subsystems.

Data-Driven Marketing

• Data-driven, fact-based decision making relies on hot, current data, that has immediate impact on the business.

• Pay-per-click (PPC) advertising is one use of this type of data. • FaceBook pushes ads to people based on their self-reported

demographics

Sales and Distribution Channels

• Ways to optimize product and service distribution. • Example channels:

o Electronic channels. o Mobile channels. o Physical channels.

Social Media Customer Service

• Monitoring Social Media o Many companies now employ customer support

representatives to monitor social media platforms. o Offer support and solutions to customer problems o Retains the customer’s loyalty and demonstrates the brand’s

commitment to customer satisfaction. o Companies stand to benefit by demonstrating their

responsiveness to a wide audience of prospective customers

Marketing Management

• Pricing of Products or Services o Sales volumes as well as profits are determined by the prices

of products or services.

• Salesperson Productivity o Collected in the sales and marketing TPS and used to compare

performance along several dimensions, such as time, product, region, and even the time of day.

• Profitability Analysis o Profit contribution or profit margin of certain products and

services derived from the cost accounting system.

Sales and Marketing Systems

1. Explain pay-per-click marketing. 2. List two sales and distribution channels. 3. Describe profitability analysis. 4. How do some online businesses determine the

prices they will charge to customers?

Accounting, Finance, and Regulatory Systems • Income Statement

o Summarizes a company’s revenue and expenses for one quarter of a fiscal year or the entire fiscal year.

o Also known as a P&L (profit and loss) or earnings statement.

• Compliance o Generally accepted accounting principles (GAAP) and the

Financial Accounting Standards Board (FASB).

• Financial Misrepresentation o Occurs when a company has intentionally deceived one or

more other parties.

XBRL Tagging

• eXtensible Business Reporting Language (XBRL) o Reporting (disclosure) system designed by the SEC to

eliminate document “search and find” difficulties and improve how investors find and use information.

o Designed to: • Generate cleaner data, including written explanations and

supporting notes. • Produce more accurate data with fewer errors that require

follow-up by regulators. • Transmit data more quickly to regulators and meet deadlines. • Increase the number of cases and amount of information that

staffers can handle.

Creation of XBRL Documents

Figure 9.9 Overview of the creation of SBRL documents.

Fraud Prevention and Detection

• Why Fraud Occurs o Fraud occurs because internal controls to prevent insider

fraud – no matter how strong – will fail on occasion. o Terms used for Insider fraud are internal, employment, or

occupational fraud. o Insider fraud is a term referring to a variety of criminal

behaviors perpetrated by an organization’s employees or contractors.

Fraud Risk Management

• Fraud Risk Management o A system of policies and procedures to prevent and detect illegal acts

committed by managers, employees, customers, or business partners against a company’s interests.

• Fraud Risk Factors 1. A high level of trust in employees without sufficient oversight to verify

that they are not stealing from the company. 2. Relying on informal processes of control. 3. A mindset (belief) that internal controls and fraud prevention systems

are too expensive to implement. 4. Assigning a wide range of duties for each employee, giving them

opportunities to commit fraud.

Internal Controls

• Strong Internal Controls to prevent fraud consist of: o Segregation of duties o Job rotation o Oversight o Safeguard of assets o IT policies

Auditing Systems

• Auditing Information Systems o Fraud can be easy to commit and hard to detect. o Information systems can provide a federated approach to

auditing payroll, scheduling, accounts payable/receivable, and other electronic data.

o Federated systems are the combination of independent systems designed with unique functions.

Financial Planning and Budgeting (1 of 2)

• Financial Planning and Budgeting o Budgeting: allocation of financial resources among

participants, activities, and projects. Includes the process of analyzing and selecting investments with the highest ROI for the organization or capital budgeting.

o Forecasting: estimating expenses, inventory, or other corporate assets to secure sufficient cash flow.

Financial Planning and Budgeting (2 of 2)

• Financial Planning and Budgeting o Financial Ratio Analysis: used by external parties when they

decide whether to invest in an organization, extend credit, or buy it.

o Profitability Analysis: understanding the profitability of individual products or services, product lines, or the financial health of the entire organization.

o Cost Control: financial management of assets, through proper estimation, to assure financial health and cash flow.

Accounting, Finance, and Regulatory Systems Review 1. What is eXtensible Business Reporting Language (XBRL)? 2. Why does the SEC mandate data disclosure, whereby data items

are tagged to make them easily searchable? 3. What is insider fraud? What are some other terms for insider

fraud? 4. What is fraud risk management? 5. What four factors increase the risk of fraud? 6. Explain how accounting ISs can help deter fraud.

Human Resource Systems, Compliance, and Ethics • HR Information Systems (HRIS)

o Systems that focus on legal and compliance responsibilities, employee development, talent management, hiring, and succession planning.

o HRIS moved into intranets or clouds, including leasing external information system software as a service (SaaS):

• Reduce demand on internal businesses and IT resources. • Dramatically improve time to value without overstretching

internal IT resources. • Reduce development/implementation times for new systems.

HR Management Activities

Figure 9.11 HR management activities.

Management and Employee Development Activities • Management and Employee Development

o Performance Evaluation • Corporate managers can analyze employees’ performances

with the help of intelligent systems, which provide systematic interpretation of performance over time.

o Training and Human Resources Development • Provide career development plan for each employee. IT can

support the planning, monitoring, and control of these activities by using workflow applications.

HR Planning, Control, and Management

• HR Planning, Control, and Management o Personnel Planning and HR Strategies

• Forecasts requirements for people and skills, planning how to locate sufficient human resources or develop them from within.

o Benefits Administration • Salary/wage, bonuses, and other rewards for service.

o Employee Relationship Management • Self-service personal information tracking, online training, and

other employee-focused tasks.

HRIS Ethics

• Ethical Challenges and Considerations o Recruiting, training, and performance evaluation procedures

may involve ethical issues. o Information and employee privacy should be protected. o Employment laws make securing HR information necessary for

the protection of employees and the organization

Human Resource Systems, Compliance, and Ethics Review 1. What are the key HR functions? 2. What are the benefits of moving HRISs to intranets or the cloud? 3. What concerns have deterred companies from implementing

SaaS HR? 4. How can companies reduce the cost of recruiting qualified

employees? 5. Describe IT support for HR planning and control. 6. What are ethical issues related to HRM apps?

Section 117 of the 1976 United States Act without the express written permission of the

Permissions Department, John Wiley & Sons, Inc. The purchaser may make back-up

copies for his/her own use only and not for distribution or resale. The Publisher assumes

no responsibility for errors, omissions, or damages, caused by the use of these programs

or from the use of the information contained herein.

IT for Management: On-Demand Strategies for Performance, Growth, and Sustainability

Eleventh Edition

Turban, Pollard, Wood

Chapter 10

Enterprise Systems

Enterprise Systems: An Introduction An Enterprise System is a large scale application software package that supports business processes, information flows, reporting, and data analytics in complex organizations.

Four Types of Enterprise Systems: 1. Enterprise Resource Planning (ERP) 2. Supply Chain Management (SCM) 3. Customer Relationship Management (CRM) 4. Enterprise Social Platforms

Enterprise Systems: Terminology

• Core business processes o Include accounting, finance, sales, marketing, human

resources, inventory, productions, and manufacturing

• Value-added reseller (VAR) o Customizes or adds features to a vendor’s software or

equipment and resells the enhanced product

• Legacy systems o Older information systems maintained over decades because

they fulfill critical needs

Enterprise Systems: Challenges • Complexity from incorporating different organizational

facets • Time-consuming coordinating an enterprise integration • Typically requires consulting, vendor, or value-added

reseller (VAR) assistance • Difficult to get new modules to interface with legacy

systems

Enterprise Systems: Legacy Challenges

• Major reasons why companies replace legacy systems: o High maintenance costs o Inflexibility (integration issues), older architecture designs o Integration obstacles (Hardwired, predefined, process flows) o Lack of staff (qualified/trained professionals) o Cloud-based enterprise systems are lower in cost

Enterprise Systems: Best Practices

• Redesign of business processes through simplification and redesign so that they can be automated, either totally or partially, or removed.

• Changes in how people perform their jobs or accommodate the new processes.

• Integration of many types of information systems so that data can flow seamlessly among departments and business partners.

Enterprise Systems: Insights

• Provide and support applications that enable workers to access, use, and understand data

• Enable companies to use data about buying behaviors and help identify its loyal customers and which ones are profitable

• Improved communication and integration among firms in a global supply chain justifies billions invested in ERP systems

Enterprise Systems 1. Explain the purpose of an enterprise system. 2. Describe four types of enterprise systems. 3. What is a value-added reseller (VAR)? 4. What are two challenges of legacy systems? 5. Why do companies migrate to enterprise systems? 6. Explain the challenges of enterprise system

implementation. 7. Explain the three types of challenges needed when an

enterprise system is implemented.

Enterprise Resource Planning Systems Past • Integrating accounting, finance, HR, marketing, and

other critical business functions • Originally run on client-server architecture and

customer-designed apps • Now web-based with a focus on social collaboration,

deployment flexibility, faster response, and accessibility from mobile devices

• An enterprise application integration (EAI) layer enables the ERP to interface with legacy apps

Enterprise Resource Planning Systems Today • ERP Add-Ons: o Sales associates to process orders, take payments,

and collect signatures with an iPad app o Field technicians to provide customer service from

anywhere o Marketing to manage every aspect of ongoing

customer relationships using a smartphone app o Production to access the real-time information

needed to reduce stock-outs and excess inventory o Customers to access, pay, and view invoices online

Enterprise Resource Planning Complexity

Figure 10.3: Overview of the complexity of ERP and its interfaces with other enterprise systems (U.S. Army Business Transformation Knowledge Center, 2009)

Enterprise Resource Planning Selection • Select an ERP solution that targets the company’s

requirements • Evaluation potential ERP vendors’ strengths and

weaknesses • Meet with each vendor and get a hands-on demo of its

ERP solutions • Calculate the ERP’s total cost of ownership (TCO)

Enterprise Resource Planning Failures

ERP Failure Factors o Cost misrepresentation o Unrealistic implementation timeframes o Software-license issues

50-70% of ERP projects fail due to one or more of these factors.

Enterprise Resource Planning Success

• Focus on business processes and requirements • Focus on achieving a measurable ROI • Use a strong project management approach and secure

commitment of resources • Obtain strong and continuing commitment from senior

executives • Take sufficient time to plan an prepare up-front • Provide thorough training and change management

Figure 10.4: Experts identify the combination of factors needed for ERP success.

Enterprise Resource Planning Systems

1. What are three ways ERP can be deployed? 2. Briefly describe the latest ERP features and add-ons. 3. Describe ERP from a technology perspective. 4. List and briefly describe three ERP implementation

success factors. 5. Describe causes or factors that contribute to ERP

failure.

Supply Chain Management Systems Figure 10.10 Model of the supply chain

Supply Chain • Starts with the

acquisition of raw materials or the procurement (purchase) of products and proceeds through manufacture, transport, and delivery—and the disposal of recycling products.

Supply Chain Management

Figure 10.5: Build a supply chain

The efficient management of the flows of material, data, and payments along the companies in the supply chain, from suppliers to consumers.

Supply Chain Flows

• Material or product flow: o The movement of materials and goods from a supplier to its

consumer

• Information flow: o The movement of detailed data among members of the

supply chain o For example, order information, customer information, order

fulfillment, delivery status, and proof-of-delivery confirmation

• Financial flow: o The transfer of payments and financial arrangements

Supply Chain Management Goals

• SCM systems are configured to achieve the following business goals: o To reduce uncertainty and variability in order to improve the

accuracy of forecasting o To increase control over processes in order to achieve optimal

inventory levels, cycle time, and customer service

Supply Chain Management: Order Fulfillment • Step 1: Make sure the customer will pay • Step 2: Check in-stock availability and reorder as necessary • Step 3: Arrange shipments • Step 4: Insurance • Step 5: Replenishment • Step 6: In-house production • Step 7: Use suppliers • Step 8: Contacts with customers • Step 9: Returns

Supply Chain Management Innovations (1 of 2)

• Always-On Supply Chain: is impacted by these innovative technologies:

• Robotics and automation: demonstrating “human” capabilities

• Inventory and Network Optimization Tools: providing ability to deploy assets and position inventory

• Sensors and automatic identification: delivering computing and communications power to everyday devices and businesses

• Predictive Analytics: predicting patterns associated with consumer behavior

Supply Chain Management Innovations (2 of 2)

• Wearables and mobile technology: performing many of the same computing tasks as mobile phones and laptop computers

• Driverless vehicles and drones: transforming supply operations by monitoring functioning of plants

• Cloud computing and storage: supporting an enterprise’s efforts to share data with multiple geographically dispersed partners

• 3D printing: which could revolutionize production processes and have far-reaching implications

Supply Chain Management Systems Review 1. What is a supply chain? 2. List four functions carried out by companies in a supply chain. 3. List and describe the three main flows being managed in a supply

chain. 4. Describe SCM. 5. What are steps in the order fulfillment? 6. Explain logistics. 7. What are the top two strategic priorities of SCM executives? 8. What are the two major barriers preventing innovation in the

supply chain? 9. What are the top innovative digital technologies impacting SCM?

Figure 10.6 Four CRM critical success factors and their importance

Customer Relationship Management Systems • Why does CRM Matter? o Data analytics, sophisticated predictive analytics, and

BI are needed to determine customer lifetime value (CLV); then business rules need to specify how to treat or manage customers based on their value score.

o Intelligently managing relationships with customers can increase revenues and net profits significantly.

Customer Acquisition/Retention

• CRM and Customer Acquisition/Retention o CRM technologies help marketing managers run effective

campaigns, promotions, commercials, and advertisements to attract new customers, or to increase sales to existing customers, or to do both.

o Newly acquired customers are unprofitable until they have purchased enough products or services to exceed the cost to acquire and service them.

o Retaining customers that generate revenues in excess of the costs is critical.

CRM for a Competitive Edge

• Drucker on Marketing Effectiveness o Know your customers o Understand customer needs o Communicate intelligently with customers

• 5% reduction in customer attrition can improve profits by as much as 20%

How to Avoid CRM Mistakes

• CRM Failures o IT department in charge instead of business users. o Incorrect CRM requirements by not involving key business

stakeholders from the outset. o Mobility CRM strategy is an afterthought. o Taking the wrong approach to CRM training. o Underestimating users’ resistance to change.

Customer Relationship Management Systems Review 1. Explain the four critical success factors for CRM. 2. Why does CRM matter? 3. Discuss how CRM impacts customer acquisition and

retention. 4. According to Peter Drucker, what does marketing

effectiveness depend on? 5. Give three reasons why CRM fails. 6. How can CRM be justified?

Enterprise Social Platforms

• Refers to private (company owned) social media, software, platforms, or apps specially designed for use by business leaders and employees to fulfill the strategic mission.

• Three main reason for interest: o Knowledge management o Collaboration o Employee pressure

Enterprise Social Platforms: SharePoint • Provides tools for setting up employee social network

platforms and company wikis • Share space to store documents from any desktop or

mobile device, so they are not siloed on any one person’s hard drive or device

• Enables coworkers to stay up-to-date and work simultaneously on a single document, save previous versions, and track updates

• Uses Yammer as its main collaborative tool • Office Graph with Oslo provides navigation through

other tools

Enterprise Social Platforms: Yammer • Features similar to Facebook likes, newsfeeds, threaded

conversation, and direct messaging • This private social channel helps employees, partners,

and customers communicate, exchange information, and collaborate across departments, locations, and business apps.

• Includes Enterprise Graph which shows how users are related to ne another, solving social network sprawl

Enterprise Social Platforms: Jive and Chatter • Jive

o Provides tools for communication, sharing, and content creation to make social media monitoring and engagement easier

• Chatter o Salesforce.com add-on offers companies their own private

network while pushing updates and news in real time to user feeds, offering smart search, which places items an employee frequently uses higher in the search list

Enterprise Social Platforms Review

1. What are the basic functions of an enterprise social platform?

2. What are the capabilities of SharePoint? 3. In what ways can enterprises realize value from

Yammer or other enterprise social? 4. How do Office Graph and Enterprise Graph support

collaboration? 5. How does Chatter enable workers to solve problems?

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IT for Management: On-Demand Strategies for Performance, Growth, and Sustainability

Eleventh Edition

Turban, Pollard, Wood

Chapter 11

Data Visualization and Geographic Information Systems

Data Visualization: Terminology

• Data visualization o Presentation of data in a graphical format o Easier for decision makers to grasp difficult concepts or

identify new patterns in the data

• Drill down o Searching for something on a computer moving from general

information to more detailed in-formation by focusing in on something of interest, e.g., quarterly sales – monthly sales – daily sales

• Geospatial data o Has an explicitly geographic component, ranging from vector

Data Visualization Technologies

Figure 11.3 Tools and technologies in this chapter fall into three related categories.

Data Visualization and Learning

• Learning, Exploring, and Discovery with Visualization o Data discovery: discovering hidden relationships through

visualization. o Used with predictive analytics to improve departmental

decisions. o Summary data rather than statistical data for higher level

absorption.

Data Visualization: Heat Maps

• The heat map is like a spreadsheet whose cells are formatted with colors instead of numbers. This heat map uses three colors to convey information at a glance.

An example of a Heat Map

Examples of Visualizations

• Dials, charts, graphs, timelines, geospatial maps, and heat maps with interactivity and drill-downs making it easier to understand data and identify patterns, trends, and relationships

• Require human expertise to interpret

Figure 11.7: Data Discovery Tools pull data from multiple data sources, manipulates the data and displays the metrics

Data Visualization Tools (1 of 2)

• Performance Management Visualizations o SAS Visual Catalyst

• Intelligent autocharting feature presents most appropriate visualization of a set of data

o IBM SPSS Analytic Catalyst • Advanced analysis designed for experts in statistical

software o IBM Watson Analytics

• Cloud-based, automates predictive analytics

Data Visualization Tools (2 of 2)

o Tableau • Easier to implement, requiring just basic database

information o Roambi Analytics

• Leading mobile reporting and data visualization app designed for iPads and iPhones

Data Visualization and Learning Review 1. How does data visualization contribute to learning? 2. How do heat maps convey information? 3. Why are data visualization and discovery usage

increasing? 4. Give two examples of data visualization for

performance management.

Enterprise Mashups

• Combine business data and applications from multiple sources—typically a mix of internal data and applications with externally sourced data to create an integrated experience.

• Does not require a huge investment and can be developed in hours rather than days or weeks.

Enterprise Data Mashups

• Combinations of data from various business systems and external sources, often in real time, without necessarily relying on a middle step of ETL (extract, transform, and load) from a data warehouse.

Enterprise Mashups Types

• Customer: provides a quick view of customer data for a sales person in preparation for a customer site visit.

• Logistics: displays inventory for a group of department stores based on specific criteria.

• Human resource: provides a quick glance at employee data such as profiles, salary, ratings, benefits status, and activities.

Benefits of Enterprise Mashups: Table 11.2 Enterprise Mashups Benefits Summary of benefits of mashup technology to an enterprise: • Dramatically reduces time and effort needed to combine disparate data sources. • Users can define their own data mashups by combining fields from different data

sources that were not previously needed. • Users can create new dashboards. • Enables the building of complex queries by nonexperts with a drag-and-drop query

building tool. • Enables agile BI because new data sources can be added to a BI system quickly via

direct links to operational data sources, bypassing the need to load them to a data warehouse.

• Provides a mechanism to easily customize and share knowledge throughout the company.

Enterprise Data Mashups Review

1. Sketch or describe the architecture of an enterprise mashup application.

2. What is an enterprise data mashup? 3. What are the functions and uses of enterprise

mashups? 4. Explain why business workers may need data mashup

technology. 5. What are three benefits of mashup technology to the

organization?