Analysis of Existing System (Microsoft Company)
Hadeel24
MIS_12345merged.pdf
CHAPTER 1
Introduction to Information Systems
1. Why Should I Study Information Systems? 2. Overview of Computer-Based Information
Systems 3. How Does IT Impact Organizations? 4. Importance of Information Systems to
Society
1. Identify the reasons why being an informed user of information systems is important in today’s world.
2. Describe the various types of computer- based information systems in an organization.
3. Discuss ways in which information technology can affect managers and non- managerial workers.
4. Identify positive and negative societal effects of the increased use of information technology.
Opening Case
• FanDuel
1. Describe how information technology is essential to FanDuel’s operations.
2. Discuss the nontechnological problems that FanDuel faces.
3. Describe FanDuel’s information technology infrastructure. Now discuss possible technological problems that FanDuel might face.
Why Should I Study Information Systems
1.1
• The Informed User – You!
• IT Offers Career Opportunities
• Managing Information Resources
Reasons Why You Should Be An Informed User…
1. You will benefit more from your organization’s IT applications because you will understand what is “behind” those applications.
2. Your input can enhance your organization’s IT applications.
3. As you enter the workforce you can assist in selecting the IT applications your organization will use.
Reasons Why You Should Be An Informed User (con’t)…
4. You will aware of both new information technologies and rapid developments in existing technologies.
5. You will understand how using IT can improve your organization’s performance.
6. If you are entrepreneurial minded, you can use IT to start your own business.
IT Offers Career Opportunities
• Chief Information Officer (CIO)
• Substantial Demand for IT Staff
– Programmers
– Business Analysts
– System Analysts
– Designers
• $130,000 is the median salary in 2015 for IS Managers (US Dept of Labor)
IT Skills Open Many Doors Because IT Is So Widely Used
Managing Information Resources
• Managing information systems (IS) is difficult and complex
• Contributing Factors:
– Strategic value of IS’s
– Acquiring, operating, and maintaining IS’s is very expensive
– Evolution of the IS Function
Overview of Computer-Based IS’s
1.2
• Data – Information – Knowledge
• Computer-Based Information System (CBIS)
• Types of Computer-Based Information Systems (CBIS)
Data – Information – Knowledge
Data versus Information versus Knowledge
Components of a CBIS
• Hardware
• Software
• Database
• Network
• Procedures
• People
Computer-Based Information Systems (CBIS)
Types of Computer Based Information Systems (CBIS)
• Breadth of Support for Information Systems (IS)
• Support for Organizational Employees
Breadth of Support for Information Systems (IS)
• Functional Area Information Systems (FAIS)
• Enterprise Resource Planning Systems (ERP)
• Transaction Processing Systems (TPS)
• Interorganizational Information Systems (IOS)
• E-Commerce Systems
Major Capabilities of Information Systems (Table 1.3)
• Perform high-speed, high-volume numerical computations.
• Provide fast, accurate communication and collaboration within and among organizations.
• Store huge amounts of information in an easy-to- access, yet small space.
• Allow quick and inexpensive access to vast amounts of information, worldwide.
• Analyze and interpret vast amounts of data quickly and efficiently.
• Automate both semiautomatic business processes and manual tasks.
Figure 1.5: IS that function among multiple organizations
Support for Organizational Employees
• Knowledge Workers
• Office Automation Systems (OASs)
• Business Intelligence (BI) Systems
• Expert Systems (ES)
• Dashboards
• Disrupting the Roadside Assistance Industry 1. Discuss how information technology enables the
business models of the Urgent.ly and Honk apps.
2. Describe the advantages and disadvantages of Urgent.ly and Honk for customers and for tow- truck operators.
3. Would you use Urgent.ly or Honk? Why or why not?
4. If you were the CEO of AAA, how would you compete with Urgent.ly and Honk? Provide specific examples in your answer.
About Business 1.1
Types of Organizational Information Systems (Table 1.4)
How Does IT Impact Organizations?
1.3
• IT Impacts Entire Industries
• IT Reduces the Number of Middle Managers
• IT Change’s the Manager’s Job
• Will IT Eliminate Jobs?
• IT Impacts Employees at Work
IT Impacts Entire Industries
• Book Industry
• Music Industry
• Video Industry
• Software Industry
• Videogame Industry
• Photography Industry
• Marketing Industry
IT Impacts Entire Industries (Continued)
• Recruiting Industry
• Financial Services Industry
• Motion Picture Industry
• Automotive Industry
• Agriculture Industry
• National Defense Industry
• Fashion Industry
IT Impacts Entire Industries (Continued)
• Education
• Legal Profession
IT Impacts Employees at Work
• IT Impacts Employees’ Health and Safety
• IT Provides Opportunities for People with Disabilities
Figure 1.6: Ergonomic products protect computer users.
Importance of IS to Society
1.4
• IT Affects Our Quality of Life
• The Robot Revolution is Here Now
• Improvements in Healthcare
• Information Technology Has the Potential for “Revolutionizing” Cuba 1. Describe the “work-arounds” that Cuban
entrepreneurs must perform to use digital technologies in the four examples discussed in this case.
2. Discuss how free, open access to high- speed Internet connections would transform the operations of each of the four examples.
3. Why would the Cuban government limit access to the Internet? Provide specific examples in your answer.
About Business 1.2
• Apricot Forest Helps China’s Physicians 1. Explain how Apricot Forest’s apps will help
improve the relationship between physicians and patients in China.
2. Explain how Apricot Forest’s apps will help improve overall healthcare in China.
3. Discuss potential disadvantages of Apricot Forest’s apps to patients.
4. Discuss potential disadvantages of Apricot Forest’s apps to physicians.
About Business 1.3
CHAPTER 2
Organizational Strategy, Competitive Advantage, and Information Systems
1. Business Pressures, Organizational Responses, and Information Technology Support
2. Competitive Advantage and Strategic Information Systems
1. Identify effective IT responses to different kinds of business pressures.
2. Describe the strategies that organizations typically adopt to counter Porter’s five competitive forces.
Opening Case
• Disney Animation Develops Software to Make Big Hero 6 1. Is Hyperion a strategic information system for
Disney Animation? Why or why not? Provide specific examples to support your answer.
2. Will Hyperion provide a sustainable competitive advantage for Disney Animation? Why or why not?
3. Look ahead in this chapter. Which one of Porter’s strategies for competitive advantage is Disney pursuing? Explain your answer.
Business Pressures, Organizational Responses, and IT Support
2.1
• Business Pressures
• Organizational Responses
Business Pressures
• Market Pressures
• Technology Pressures
• Societal/Political/Legal Pressures
Figure 2.1: Business Pressures, Organizational Performance & Responses, and IT Support
Market Pressures
• Globalization
• Changing Nature of the Workforce
• Powerful Customers
Technology Pressures
• Technological Innovation and Obsolescence
• Information Overload
Societal/Political/Legal Pressures
• Social Responsibility
• Compliance with Government Regulations
• Protection Against Terrorist Attacks
• Ethical Issues
Social Responsibility
• IT Assists “Go Green” Efforts in Three Areas:
1. Facilities design and management
2. Carbon management
3. International and U.S. environmental laws
• Digital Divide
• Using Information Technology for Social Good 1. Describe how the Infoladies are a strategic
information system for the country of Bangladesh. Provide specific examples to support your answer.
2. Discuss how the Rainforest Connection’s use of smartphones is a strategic information system for our planet. Provide specific examples to support your answer.
About Business 2.1
Organizational Responses
• Strategic Systems
• Customer Focus
• Make-to-Order and Mass Customization
• E-Business and E-Commerce
• Innovative Technologies for Airlines and Airports 1. Look ahead to Porter’s five strategies for
competitive advantage. Provide an example of a technology discussed in this case that supports each of Porter’s strategies.
2. Propose additional applications that airports and airlines might develop that could create a competitive advantage in the marketplace.
3. Are the technologies discussed in this case examples of strategic information systems? Why or why not?
About Business 2.2
• The “Fit” Problem When Shopping for Clothes Online 1. Look ahead to Porter’s five strategies for
competitive advantage. Take each of the example companies in this case, and identify which of Porter’s strategies that company is using.
2. Do the systems these companies are using constitute strategic information systems? Why or why not?
About Business 2.3
Competitive Advantage and Strategic IS’s
2.2
• Porter’s Competitive Forces Model
• Porter’s Value Chain Model
• Strategies for Competitive Advantage
• Business – Information Technology Alignment
Porter’s Five Forces Model
1. The threat of new competitors
2. The bargaining power of suppliers
3. The bargaining power of customers (buyers)
4. The threat of substitute products or services
5. The rivalry among existing firms in the industry
Figure 2.2: Porter’s Competitive Forces Model
Porter’s Value Chain Model
• Value Chain
• Two Categories of Organization Activities in the Value Chain
– Primary Activities
– Support Activities
Figure 2.3: Porter’s Value Chain Model
Primary Activities
• Inbound logistics
• Operations
• Outbound logistics
• Marketing and sales
• Services
Support Activities
• The Firm’s Infrastructure
• Human Resources Management
• Product and Technology Development
• Procurement
Strategies for Competitive Advantage
1. Cost leadership strategy
2. Differentiation strategy
3. Innovation strategy
4. Organizational effectiveness strategy
5. Customer orientation strategy
Business-Information Technology Alignment
• Business–Information Technology Alignment
• Six Characteristics of Excellent Business-IT Alignment:
Figure 2.4: Strategies for Competitive Advantage
Six Characteristics of Excellent Business-IT Alignment
1. Organizations view IT as an engine of innovation that continually transforms the business, often creating new revenue streams.
2. Organizations view their internal & external customers & their customer service function as supremely important.
Six Characteristics of Excellent Business-IT Alignment (continued)
3. Organizations rotate business & IT professionals across departments and job functions.
4. Organizations provide overarching goals that are completely clear to each IT and business employee.
Six Characteristics of Excellent Business-IT Alignment (continued)
5. Organizations ensure that IT employees understand how the company makes (or loses) money.
6. Organizations create a vibrant and inclusive company culture.
CHAPTER 3
Data and Knowledge Management
1. Managing Data 2. The Database Approach 3. Big Data 4. Data Warehouses and Data Marts 5. Knowledge Management
1. Discuss ways that common challenges in managing data can be addressed using data governance.
2. Discuss the advantages and disadvantages of relational databases.
3. Define Big Data, and discuss its basic characteristics.
4. Explain the elements necessary to successfully implement and maintain data warehouses.
5. Describe the benefits and challenges of implementing knowledge management systems in organizations.
Opening Case
• Database Saves the State of Washington Medicaid Dollars
1. Describe additional benefits (beyond those discussed in the case) of the State of Washington’s EDIE database.
2. Describe potential disadvantages of the State of Washington’s EDIE database.
• Giving Data Away for Free 1. At first glance, giving away data for free seems
to be a questionable business strategy. Describe how Jana’s business model makes this practice a success.
2. Why are Facebook and Google so interested in bringing Internet access to the developing world?
3. Discuss the pros and cons of the zero-rating system.
4. Is Jana correct in claiming that its system is not really a zero-rating system? Why or why not?
About Business 3.1
Managing Data3.1
• Difficulties of Managing Data
• Data Governance
The Difficulties of Managing Data
•The amount of data increases exponentially over time
•Data are scattered throughout organizations
•Data are generated from multiple sources (internal, personal, external) –Clickstream Data
•New sources of data
The Difficulties of Managing Data (continued)
•Data Degradation
•Data Rot
•Data security, quality, and integrity are critical
•Legal requirements change frequently and differ among countries & industries
Data Governance
• Master Data Management
• Master Data
The Database Approach
3.2
• Data File
• Database Systems Minimize & Maximize Three Things
• The Data Hierarchy
• The Relational Database Model
Figure 3.1: Database Management System
Database Management Systems (DBMS) Minimize:
• Data Redundancy
• Data Isolation
• Data Inconsistency
Database Management Systems (DBMS) Maximize:
• Data Security
• Data Integrity
• Data Independence
Data Hierarchy
• Bit
• Byte
• Field
• Record
• Data File (Table)
• Database
Figure 3.2: Hierarchy of Data for a Computer-based File
The Relational Database Model
• Database Management System (DBMS)
• Relational Database Model
• Data Model
• Entity
• Instance
• Attribute
The Relational Database Model (continued)
• Primary Key
• Secondary Key
• Foreign Key
• Unstructured Data
Figure 3.3: Student Database Example
Big Data3.3
• Defining Big Data
• Characteristics of Big Data
• Issues with Big Data
• Managing Big Data
• Putting Big Data to Use
• Big Data Used in the Functional Areas of the Organization
Defining Big Data: Gartner
• Diverse, high volume, high-velocity information assets that require new forms of processing to enable enhanced decision making, insight discovery, and process optimization.
Defining Big Data: The Big Data Institute (TBDI)
• Vast Datasets that: – Exhibit variety – Include structured, unstructured, and semi-
structured data – Generated at high velocity with an uncertain
pattern – Do not fit neatly into traditional, structured,
relational databases – Can be captured, processed, transformed,
and analyzed in a reasonable amount of time only by sophisticated information systems.
Big Data Generally Consist of the Following:
• Traditional Enterprise Data
• Machine-Generated/Sensor Data
• Social Data
• Images Captured by Billions of Devices Located Throughout the World
Characteristics of Big Data
• Volume
• Velocity
• Variety
Issues with Big Data
• Untrusted data sources
• Big Data is dirty
• Big Data changes, especially in data streams
Managing Big Data
• Big Data makes it possible to do many things that were previously impossible:
– Spot business trends more rapidly and accurately
– tracking the spread of disease
– tracking crime
– detecting fraud
Managing Big Data (continued)
• First Step:
– Integrate information silos into a database environment and develop data warehouses for decision making.
• Second Step:
– making sense of their proliferating data.
Managing Big Data (continued)
• Many organizations are turning to NoSQL databases to process Big Data
• TrueCar Uses Hadoop
1. Describe how Hadoop manages Big Data in its data lake.
2. Discuss why relational databases experienced problems with the variety of data that TrueCar has to manage and analyze.
3. What are the benefits of Big Data to TrueCar?
About Business 3.2
Putting Big Data to Use
• Making Big Data Available
• Enabling Organizations to Conduct Experiments
• Micro-Segmentation of Customers
• Creating New Business Models
• Organizations Can Analyze Far More Data
• Combining Big Data and Open Data to Fight Ebola
1. Provide examples of open data mentioned in this case.
2. Provide examples of Big Data mentioned in this case.
3. Why was the integration of open data and Big Data essential to help lessen the impact of the Ebola virus?
About Business 3.3
Big Data Used in the Functional Areas of the Organization
• Human Resources
• Product Development
• Operations
• Marketing
• Government Operations
Data Warehouses and Data Marts
3.4
• Describing Data Warehouses and Data Marts
• A Generic Data Warehouse Environment
Describing Data Warehouses and Data Marts
• Organized by business dimension or Use online analytical processing (OLAP)
• Integrated
• Time variant
• Nonvolatile
• Multidimensional
A Generic Data Warehouse Environment
• Source Systems
• Data Integration
• Storing the Data
• Metadata
• Data Quality
• Governance
• Users
Figure 3.4: Data Warehouse Framework
Figure 3.5: Relational Databases
Figure 3.6: Data Cube
Figure 3.7: Equivalence Between Relational and Multidimensional Databases
Knowledge Management
3.5
• Concepts and Definitions
• Knowledge Management Systems
• The KMS Cycle
Concepts and Definitions
• Knowledge Management
• Knowledge
• Explicit and Tacit Knowledge
• Knowledge Management Systems
• The KMS Cycle
About Business 3.4
• Performance Bicycle Leverages Its Employees’ Knowledge
1. Describe several ways in which Performance Bicycle incorporates employee knowledge in its customer experience.
2. Is Performance Bicycle capturing and using its employee’s tacit knowledge or explicit knowledge? Explain your answer.
Figure 3.8: The Knowledge Management System Cycle
CHAPTER 4
Telecommunications and Networking
1. What Is a Computer Network? 2. Network Fundamentals 3. The Internet and the World Wide Web 4. Network Applications: Discovery 5. Network Applications: Communication 6. Network Applications: Collaboration 7. Network Applications: Education
1. Compare and contrast the major types of networks.
2. Describe the wireline communications media and transmission technologies.
3. Describe the most common methods for accessing the Internet.
4. Explain the impact that discovery network applications have had on business and everyday life.
5. Explain the impact that communication network applications have had on business and everyday life.
6. Explain the impact that collaboration network applications have had on business and everyday life.
7. Explain the impact that educational network applications have had on business and everyday life.
Opening Case
• What to Do About Landline Telephones? 1. Should the large carriers be able to eliminate
their POTS networks?
a) Debate this argument from the viewpoint of the large telecommunications carriers.
b) Debate this argument from the viewpoint of rural customers.
2. Why are wireless networks unable to take over all of the functions of POTS networks at this time (September 2015)?
• The Least Connected Country on Earth 1. Describe the impacts of a lack of
telecommunications infrastructure on Eritrea.
2. Besides improving the economy, what other areas of Eritrean life would be impacted by a greatly improved telecommunications infrastructure?
3. Can the government of Eritrea allow an improved telecommunications infrastructure while maintaining strict control over communications and information? Why or why not? Support your answer.
About Business 4.1
What Is a Computer Network?
4.1
• Computer Network
• Bandwidth
• Broadband
• Local Area Networks
• Wide Area Networks
• Enterprise Networks
Figure 4.1: Ethernet Local Area Network (LAN)
Figure 4.2: Enterprise Network
Network Fundamentals
4.2
• Communications Media and Channels
• Network Protocols
• Types of Network Processing
Communications Media and Channels
• Twisted-Pair Wire
• Coaxial Cable
• Fiber Optics
Table 4.1: Advantages and Disadvantages of Wireline Communications Channels
Communications Media: Twisted-Pair Wire
Communications Media: Coaxial Cable
Communications Media: Fiber Optics
Network Protocols
• Ethernet
• Transmission Control Protocol / Internet Protocol (TCP/IP)
Transmission Control Protocol / Internet Protocol
• Three Basic Functions of TCP
• Packets & Packet Switching
• Four Layers of the TCP/IP Reference Model
Three Basic Functions of the TCP
1. Manages the movement of data packets between computers by establishing a connection between the computers
2. Sequences the transfer of packets
3. Acknowledges the packets that have been transmitted
Four Layers of the TCP/IP Reference Model
1. Application Layer
2. Transport Layer
3. Internet Layer
4. Network Interface Layer
Figure 4.6: The Four Layers of the TCP/IP Reference Model
Figure 4.7: Packet Switching
Types of Network Processing
• Client/Server Computing
• Peer-to-Peer Processing
The Internet and the World Wide Web
4.3
• Internet (“the Net”)
• Accessing the Internet
• The Future of the Internet
• The World Wide Web
Accessing the Internet
• Connecting via an Online Service
• Connecting via Other Means
– Satellite
– Google Fiber
• Addresses on the Internet
Figure 4.9: Internet (backbone in white)
Table 4.2: Internet Connection Methods
Future of the Internet
• High User Demand = Reduced Performance in the Near Future
• The Internet is unreliable and not secure.
• Internet2
The World Wide Web (WWW)
• World Wide Web
• Hypertext
• URL
Network Applications: Discovery
4.4
• Search Engines and Metasearch Engines
• Publication of Material in Foreign Languages
• Portals
Publication of Materials in Foreign Languages
Affinity Portals
Network Applications: Communication
4.5
• Electronic Mail
• Web-Based Call Centers
• Electronic Chat Rooms
• Voice Communication
– Voice Over Internet Protocol (VoIP)
• Unified Communications
• Telecommuting
Network Applications: Collaboration
4.6
• Workgroup
• Workflow
• Virtual Group (Team)
• Virtual Collaboration
• Crowdsourcing
• Electronic Teleconferencing and Video Conferencing
Figure 4.11: Telepresence System
• The Collaboration Environment at Raytheon
1. Describe the use of information technologies in Raytheon’s CAVEs.
2. What are potential disadvantages of using CAVEs in the product design process?
About Business 4.2
Network Applications: Educational
4.7
• E-Learning
• Distance Education
– MOOC’s
• Virtual Universities
• Massive Open Online Courses in India 1. Discuss possible quality control issues with
MOOCs in India. For each issue, explain how you would solve the problem.
2. Discuss the possible impacts of MOOCs on traditional higher education in India.
3. Would you be willing to enroll in a MOOC as a full-time student at your university? Why or why not?
4. Would you be willing to enroll in a MOOC after you graduate? Why or why not?
About Business 4.3
CHAPTER 5
Business Analytics
1. Managers and Decision Making 2. The Business Analytics Process 3. Business Analytics Tools 4. Business Analytics Models: Descriptive
Analytics, Predictive Analytics, and Prescriptive Analytics
1. Use a decision support framework to demonstrate how technology supports managerial decision making at each phase of the decision-making process.
2. Describe each phase of the business analytics process.
3. Describe each of the various analytics tools and examples of their uses.
4. Provide a definition and a use case example for descriptive analytics, predictive analytics, and prescriptive analytics.
Opening Case
• Rent the Runway 1. Describe the descriptive analytics applications of
Rent the Runway’s business model.
2. Describe the predictive analytics applications of
Rent the Runway’s business model.
3. Describe a possible prescriptive analytics application
for Rent the Runway.
4. What companies and industries are in danger of
being disrupted by Rent the Runway? (Hint: Will
Rent the Runway change the way that women buy
clothes?)
• Business Analytics (BA)
• Business Intelligence (BI)
• BA versus BI
Managers and Decision
Making 5.1
• The Manager’s Job and Decision Making
• Why Managers Need IT Support
• A Framework for Computerized Decision
Analysis
The Manager’s Job and
Decision Making
• Management
• Productivity
• Three Basic
Roles of Managers
• Decision
• Four Phases
of Decision Making
Three Basic Roles of Managers
• Interpersonal Roles
• Informational Roles
• Decisional Roles
Figure 5.1: The Process and
Phases in Decision Making
Why Managers Need IT
Support
• The number of alternatives is constantly increasing
• Most decisions are made under time constraints
• Increased uncertainty requires sophisticated analyses
• Group decision making required without incurring major expenses
A Framework for Computerized
Decision Analysis
• Problem Structure
• The Nature of Decisions
– Operational Control
– Management Control
– Strategic Planning
• Decision Matrix
Figure 5.2: Decision Support
Framework
The Business Analytics
Process 5.2
• The Scope of Business Analytics
Figure 5.3: The Business
Analytics Process
The Scope of Business
Analytics
• The Development of One or a Few
Related Analytics Applications
• The Development of Infrastructure to
Support Enterprisewide Analytics
• Support for Organizational
Transformation
• Darden Restaurants 1. What is the scope of business analytics for each
company?
2. Describe how Darden Restaurants might employ
predictive and prescriptive analytics.
3. Describe how Twiddy & Company might employ
predictive and prescriptive analytics.
4. Describe how Point Defiance might employ
prescriptive analytics.
About Business 5.1
Business Analytics Tools5.3
• Excel
• Multidimensional Analysis or Online
Analytical Processing
• Data Mining
• Decision Support Systems
Multidimensional Analysis or
Online Analytical Processing
• Online Analytical Processing
• Multi-dimensional Analysis
Data Mining
• Two Basic Data Mining Operations
– Predicting trends and behaviors
– Identifying previously unknown patterns
Data-Mining Applications Used
in Business and Other Fields
• Retailing and Sales
• Banking
• Manufacturing & Production
• Insurance
• Policework
• Healthcare
Data-Mining Applications Used
in Business and Other Fields
• Marketing
• Politics
• Weather
• Higher Education
• Social Good
Decision Support Systems
(DSS)
• Sensitivity Analysis
• What-If Analysis
• Goal-Seeking Analysis
Business Analytics Models: Descriptive, Predictive, and Prescriptive Analytics
5.4
• Descriptive Analytics
• Predictive Analytics
• Prescriptive Analytics
• Presentation Tools
• Esurance Uses Analytics to Provide
Personalized Quotes 1. Describe how Esurance’s CRE analytics package
contributes to the customer’s experience.
2. Provide an example of a predictive analytics
application that Esurance could implement.
3. Provide an example of a prescriptive analytics
application that Esurance could implement.
About Business 5.2
• TaKaDu’s Dashboard Helps to Conserve Water 1. How does the TaKaDu system utilize the Internet
of Things? (Hint: See Chapter 10.)
2. Provide an example of how TaKaDu uses its system for predictive analytics.
3. Provide an example of how TaKaDu could use its system for prescriptive analytics.
4. Refer to Chapter 2. Is the TaKaDu system a strategic information system for Jerusalem? Why or why not?
About Business 5.3
• Simpa Networks Provide Solar Energy to
India’s Poor
1. Describe how Simpa Networks uses descriptive
analytics to further its mission.
2. How does predictive analytics help Simpa
Networks provide solar energy to India’s
underserved population?
3. Describe how Simpa Networks could use
prescriptive analytics to further its mission.
About Business 5.4
Predictive Analytics:
Examples…
• Drive the coupons you receive at the
grocery store register
• Website predict which ads you will click
on
• President Obama was re-elected in 2012
with the help of voter prediction
• Leading online dating companies match
compatible individuals
Predictive Analytics: Examples
(Continued)
• Automatic grading of student essays
• Wireless carriers predict customer churn
• Insurance companies predict body injury
liability from car crashes
• Better diagnosis of breast cancer
• Predict the likelihood a convict will offend
again
Predictive Analytics: Examples
(Continued)
• Financial Service Firms produce credit
scores
• Predict sales based on which products
are purchased together
• Sentiment analysis
Presentation Tools
• Dashboards
• Geographic Information Systems
Table 5.1: The Capabilities of
Dashboards
Figure 5.3: Sample
Performance Dashboard
Figure 5.5: Bloomberg Terminal
Figure 5.6: Management
Cockpit
CHAPTER 7
Information Security
1. Introduction to Information Security 2. Unintentional Threats to Information
Systems 3. Deliberate Threats to Information
Systems 4. What Organizations Are Doing to Protect
Information Resources 5. Information Security Controls
1. Identify the five factors that contribute to the increasing vulnerability of information resources and specific examples of each factor.
2. Compare and contrast human mistakes and social engineering, along with specific examples of each one.
3. Discuss the 10 types of deliberate attacks.
4. Describe the three risk mitigation strategies and examples of each one in the context of owning a home.
5. Identify the three major types of controls that organizations can use to protect their information resources along with an example of each one.
Opening Case
• The St. Louis Cardinals Investigated for Hacking the Houston Astros
1. Describe how the Cardinals apparently were able to gain access to the Astros’ computer system.
2. What lessons should the Astros learn from this security breach?
Introduction to Information Security
7.1
• Information Security
• Threat
• Exposure
• Vulnerability
• Five Key Factors Increasing Vulnerability
• Cybercrime
Five Key Factors Increasing Vulnerability
1. Today’s interconnected, interdependent, wirelessly networked business environment
2. Smaller, faster, cheaper computers and storage devices
3. Decreasing skills necessary to be a computer hacker
4. International organized crime taking over cybercrime
5. Lack of management support
Unintentional Threats to Information Systems
7.2
• Human Errors
• Social Engineering
Figure 7.1 Security Threats
Human Errors
• Higher employee levels = higher levels of security risk
• Most Dangerous Employees
• Human Mistakes
Dangerous Employees
• Two organizational areas pose the greatest risk
– Human Resources
– Information Systems
• Janitors and Guards Frequently Overlooked
Human Mistakes
• Carelessness with laptops
• Carelessness with computing devices
• Opening questionable e-mails
• Careless Internet surfing
• Poor password selection and use
• Carelessness with one’s office
Human Mistakes (continued)
• Carelessness using unmanaged devices
• Carelessness with discarded equipment
• Careless monitoring of environmental hazards
Table 7.1: Human Mistakes
Social Engineering
• Social Engineering:
– an attack in which the perpetrator uses social skills to trick or manipulate legitimate employees into providing confidential company information such as passwords.
Deliberate Threats to Information Systems
7.3
1. Espionage or Trespass
2. Information Extortion
3. Sabotage or Vandalism
4. Theft of Equipment or Information
5. Identity Theft
6. Compromises to Intellectual Property
Deliberate Threats to Information Systems (continued)
7.3
7. Software Attacks
8. Alien Software
9. Supervisory Control and Data Acquisition Attacks
10. Cyberterrorism and Cyberwarfare
6. Compromises to Intellectual Property
• Intellectual Property
• Trade Secret
• Patent
• Copyright
7. Software Attacks: Three Categories
1. Remote Attacks Requiring User Action
– Virus
– Worm
– Phishing Attack
– Spear Phishing
7. Software Attacks: Three Categories (continued)
2. Remote Attacks Needing No User Action
– Denial-of-Service Attack
– Distributed Denial-of-Service Attack
7. Software Attacks: Three Categories (continued)
3. Attacks by a Programmer Developing a System
– Trojan Horse
– Back Door
– Logic bomb
• Ransomeware 1. Why is ransomware more than a nuisance?
2. Are your digital files adequately backed up? Why or why not?
ABOUT BUSINESS 7.1
8. Alien Software
• Adware
• Spyware
• Spamware
• Spam
• Cookies
What Organizations Are Doing to Protect Information Resources
7.4
• Risk
• Risk Management
• Risk Analysis
• Risk Mitigation
Table 7.3: The Difficulties in Protecting Information Resources
• Catching a Hacker 1. Why did the FBI need to “argue with law
enforcement officials in various countries”?
2. Describe the diff iculties that investigators encounter in bringing cybercriminals to justice. Can you propose any additional strategies they should consider?
ABOUT BUSINESS 7.2
Risk Management
Three Processes of Risk Management:
1. risk analysis
2. risk mitigation
3. controls evaluation
Risk Analysis
Three Steps of Risk Analysis
1. assessing the value of each asset being protected
2. estimating the probability that each asset will be compromised
3. comparing the probable costs of the asset’s being compromised with the costs of protecting that asset
Risk Mitigation
• Risk Acceptance
• Rick Limitation
• Risk Transference
Information Security Controls
7.5
• Physical Controls
• Access Controls
• Communications Controls
• Business Continuity Planning
• Information Systems Auditing
Figure 7.2: Where Defense Mechanisms are Located.
Physical Controls
• Walls
• Doors
• Fencing
• Gates
• Locks
• Badges
• Guards
• Alarm Systems
Access Controls
• Authentication
• Authorization
– Something the user is (Biometrics)
– Something the user has
– Something the user does
– Something the user knows
• Trustev: Helping to Prevent Credit Card Fraud 1. Describe how Trustev’s authentication
method differs from other authentication methods.
2. What are potential disadvantages with Trustev’s authentication method?
ABOUT BUSINESS 7.3
Communications Controls
• Firewall
– Demilitarized Zone (DMZ)
• Anti-malware Systems
• Whitelisting
• Blacklisting
• Encryption
• Virtual Private Network (VPN)
Communications Controls (Continued)
• Transport Layer Security (formerly called Secure Socket Layer)
• Employee Monitoring Systems
Figure 7.3: (a) Basic Firewall for Home Computer. (b) Organization with Two Firewalls and Demilitarized Zone
Figure 7.4: How Public-key Encryption Works
Figure 7.5: How Digital Certificates Work.
Figure 7.6: Virtual Private Network (VPN) and Tunneling
Business Continuity Planning
• Business Continuity
• Business Continuity Plan
Information Systems Auditing
• Internal Audits
• External Audits
• Three Categories of IS auditing procedures
Three Categories of IS auditing procedures:
• Auditing Around the Computer
• Auditing Through the Computer
• Auditing With the Computer
