Transcript here

Sections Covered in 1st Part of Course
MIS 300 Midterm Summary
1
Principles and Learning Objectives-1
• The value of information is directly linked to how
it helps decision makers achieve the organization’s
goals
– Distinguish data from information and describe the
characteristics used to evaluate the quality of data
Organization
GOAL
Information
MIS 300 Midterm Summary
2
Principles and Learning Objectives -2
• Knowing the potential impact of information
systems and having the ability to put this
knowledge to work can result in a successful
personal career, organizations that reach their
goals, and a society with a higher quality of life
– Identify the basic types of business information
systems and discuss who uses them, how they are
used, and what kinds of benefits they deliver
MIS 300 Midterm Summary
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Chapter 1 Provides a Preview of All
the Concepts Covered in the Course.
Note these especially
MIS 300 Midterm Summary
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Introduction
• Information system (IS)
– Set of interrelated components: collect, manipulate,
disseminate data and information
– Provide feedback to meet an objective
– Examples: ATMs, airline reservation systems, course
reservation systems
What is Information, really?
Why have it?
MIS 300 Midterm Summary
5
What Herbert Simon Won the Nobel Prize
For
Intelligence
Something
Happens
MIS 300 Midterm Summary
Design
Choice
Execution
Mgmt
Decision
Required
6
What’s Behind the Model of Rational
Decision Making
Optimize
or
Satisfice?
Gather
information
Intelliabout pertinent
gence
events
Something
Happens
MIS 300 Midterm Summary
Reflect
against
what is
known
All activity
depends on
requirements and
resources
available
Select one
alternative
course of
action
Implement
the
decision
Mgmt
Decision
Required
7
Information Concepts: Data Versus
Information
• Data: raw
facts of machines’ experiences
Recordings
– Alphanumeric, image, audio, and video
• Information
data or other information
– Organized collection of facts
– Have value beyond the facts
themselves
components
themselves
Information is “information” only to the extent
that it informs a user or consumer. That
means that the informationness of an
experience depends on the observer and what
the observer has to do (intention)!
MIS 300 Midterm Summary
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Data Versus Information (continued)
Selecting, organizing and manipulating,
conditioned by existing models and
subsequent need for action.
Figure 1.2: The Process of Transforming Data into Information
MIS 300 Midterm Summary
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The Characteristics of Valuable
Information
Table 1.2: Characteristics of Valuable Information
MIS 300 Midterm Summary
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The Characteristics of Valuable
Information (continued)
Table 1.2: Characteristics of Valuable Information (continued)
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What Is an Information System?
This is only one view. A system is much
more complex. A behavioral view will
keep in mind intentions, skills, judgments,
and prior knowledge (theory)
Figure 1.3: The Components of an Information System
MIS 300 Midterm Summary
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Computer-Based Information Systems
• Manual versus computerized information systems
• Computers are NOT necessary in information
systems, but they have certain efficiencies
• Computer-based information system (CBIS)
– Hardware, software, databases, telecommunications,
people, and procedures
– Collect, manipulate, store, and process data into
information
MIS 300 Midterm Summary
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Computer-Based Information Systems
(continued)
The
infrastructur
e (left)
What you
experience
(above)
Figure 1.4: The Components of a Computer-Based Information
System
MIS 300 Midterm Summary
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Electronic and Mobile Commerce
• E-commerce: any business transaction executed
electronically between parties such as:
–
–
–
–
–
Companies (B2B)
Companies and consumers (B2C)
Consumers and other consumers (C2C)
Business and the public sector
Consumers and the public sector
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Transaction Processing Systems
• Transaction: business-related exchange
– Payments to employees
– Sales to customers
– Payments to suppliers
• Transaction processing system (TPS)
– A collection of people, procedures, software,
databases, devices
– Records completed business transactions
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Transaction Processing Systems
(continued)
Figure 1.7: A Payroll Transaction Processing System
The inputs (numbers of employee hours worked and pay rates)
go through a transformation process to produce outputs
(paychecks)
MIS 300 Midterm Summary
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Enterprise Resource Planning
• Integrated programs that manage all business
operations
• Coordinate planning, inventory control, production,
and ordering among others
• Historically based in production systems
• Hard to translate to other types of business
• Necessarily complex
MIS 300 Midterm Summary
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Chapters 2-5 Relate Material on These
Topics
•
•
•
•
•
•
•
Ch 2: Hardware (little emphasis)
Ch 2: Software
Ch 3: Data Management and Databases
Ch 4: Networking
Ch 5: E-Commerce
Ch 5: Transaction Processing Systems
Ch 5: Enterprise Resource Systems
MIS 300 Midterm Summary
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Ch 2
Hardware Components
• Central processing unit (CPU) (The thinker)
– Arithmetic/logic unit (ALU)
– Control unit
• Input devices (what purpose?)
• Output devices (what purpose?)
Why are
there two
different
kinds of
input?
MIS 300 Midterm Summary
CPU
Control & Data Source
Results & Feedback
Why are
there two
different
kinds of
output?
20
Overview of Software
• Computer programs: sequences of instructions
• Documentation: describes program functions
• Systems software: coordinates the activities of
hardware and programs: “To serve and protect”
• Application software: helps users solve
particular problems: “To get the job done”
What is software really doing? Why is it
important?
MIS 300 Midterm Summary
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Systems Software: Operating Systems
• Operating system (OS): set of programs that
control and manage the hardware and act as an
interface with applications
• Common hardware functions
– Get input (e.g., keyboard)
– Retrieve data from disks and store data on disks
– Display information on a monitor or printer
MIS 300 Midterm Summary
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Operating Systems (continued)
Figure 2.8: The role of the operating system and other systems
software is as an interface or buffer between application
software and hardware. It also controls and manages
everything.
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Operating Systems (continued)
• User interface
– Allows individuals to access and command the
computer system
– Command-based user interface: uses text
commands
– Graphical user interface (GUI): uses icons and
menus to send commands to the computer system
– Smart interface: anticipates users’ needs
MIS 300 Midterm Summary
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Application Software
• Gives users the ability to solve problems and
perform specific tasks
• Interacts with systems software; systems software
then directs the hardware to perform the tasks
Application
Software
User
Interface
MIS 300 Midterm Summary
System
Software
Hardware
Other I/O
Devices
25
Types and Functions of Application
Software
• Proprietary software: unique program for a specific
application, usually developed and owned by a
single company
• Off-the-shelf software: purchased software
• Customized package
Proprietary:
“We build it”
MIS 300 Midterm Summary
Off-the-Shelf:
“We buy it”
26
Programming Languages
I need
Hooray!
informaNow
tion
toI
KNOW!
solve
a
problem!
I, the
programmer
, hear
you!
Saved
Commands
Conversation
about need
Compiler or
language
processor
Information
System
Programming
language
statements
Information
System
MIS 300 Midterm Summary
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Software Issues and Trends That Will Effect
YOU!
• Software bugs
– Program defects that keep it from performing correctly
•
•
•
•
•
•
•
Copyrights and licenses
Global software support
Obsolescence
Outsourcing
Legal issues
Commoditization
Security
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Ch 3
What is DATA?
• Machine “experience”, what a machine makes of its
environment
Hmmmm. That
feels just like “3”
or maybe a “4”
but definitely not a
5
THREE
POINT FIVE
MIS 300 Midterm Summary
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What is INFORMATION?
• Human experience of Data: telling us something we
didn’t know or weren’t able to predict.
Was it Jones or
Smith we
promised the
stock to? Gotta
find out. Should
be Smith, but…
MIS 300 Midterm Summary
Hey,
Schmoey,
Jones is
here for
his stock
OK, and thanks
for the
INFORMATION!
30
The Organizational Data “Shadow”
Actual Event
Data “Impression”
Real
World
Sources
of Error
Error:
Spurious
Data
Data
“World”
Error:
Lost
Data
MIS 300 Midterm Summary
Error:
Incorrect
Data
31
Events as Data
• Each event generates some data
• The data are about the objects that play roles in the
event
• The data describe the objects and perhaps how
they relate to one another
• The events, too, relate to one another in various
ways.
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Data Events
• Consider a sales “event”
• It involves a number of objects: items sold,
salesperson, act of selling, customer, money
(objects are also called “entities”)
• Each event generates data that describe each of the
objects….
MIS 300 Midterm Summary
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Data Representation: The Hierarchy
of Data
• Bit (a binary digit): a circuit that is either on or off
• Byte: 8 bits
• Character: each byte represents a character; the
basic building block of information
• Field: name, number, or characters that describe an
aspect of a business object or activity
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The Hierarchy of Data (continued)
•
•
•
•
Record: a collection of related data fields
File: a collection of related records
Database: a collection of integrated and related files
Hierarchy of data
– Bits, characters, fields, records, files, and databases
MIS 300 Midterm Summary
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The Traditional Approach Versus the
Database Approach
• Traditional approach: separate data files are created
for each application, i.e., each business problem
– Results in data redundancy (duplication)
– Data redundancy conflicts with data integrity
• Database approach: pool of related data is shared
by multiple applications
– Significant advantages over traditional approach
– Besides, all elements of business are related
MIS 300 Midterm Summary
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The Database Approach
Figure 3.4: The Database Approach to Data Management
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Advantages of the Database Approach
Table 3.1: Advantages of the Database Approach
MIS 300 Midterm Summary
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Disadvantages of the Database
Approach
Table 3.2: Disadvantages of the Database Approach
MIS 300 Midterm Summary
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ER Diagrams Tell a Story
Entity
Relationship
It reads
like a
story…
“Once upon a time
there was a
customer order
database. In this
database were
salespeople, each
of whom serviced
one or more
customers. Each
customer could
place one or more
orders, each of
which included
one or more line
items. Many of
these line items
could specify the
same product.
Each order
generated one and
only one invoice”
Figure 3.5: An Entity-Relationship (ER) Diagram for a Customer
Order Database
MIS 300 Midterm Summary
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Database Management Systems
(DBMS)
• Interface between
– Database and application programs
– Database and the user
• Database types
– Flat file
– Single user
– Multiple users
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Data Warehouses, Data Marts, and
Data Mining
• Data warehouse: collects business information
from many sources in the enterprise
• Data mart: a subset of a data warehouse
• Data mining: an information-analysis tool for
discovering patterns and relationships in a data
warehouse or a data mart
MIS 300 Midterm Summary
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Business Intelligence
• Business intelligence (BI): gathering the right
information in a timely manner and usable form and
analyzing it to have a positive impact on business
• Knowledge management: capturing a company’s
collective expertise and distributing it wherever it
can help produce the biggest payoff
MIS 300 Midterm Summary
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Distributed Databases
• Distributed database
– Data may be spread across several smaller
databases connected via telecommunications devices
– Corporations get more flexibility in how databases are
organized and used
• Replicated database
– Holds a duplicate set of frequently used data
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An Overview of Telecommunications
Ch 4
and Networks
• Telecommunications: the electronic transmission
of signals for communications
• Telecommunications medium: anything that
carries an electronic signal and interfaces between a
sending device and a receiving device
• Telecommunications carrier: any business that
provides (leases, services) telecommunications
media.
• Telecommunications service: any service to
customers at least partially facilitated by
telecommunications
MIS 300 Midterm Summary
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Communication Model
Expression
Meaning1
Sender
Encoding
Interpretation
Channel
Decoding
Meaning2
Receiver
Challenges:
1. Various processes
2. Will meanings match?
3. Why encode?
4. Purpose? Intention?
MIS 300 Midterm Summary
M e s s ag e
46
Characteristics of Communication
•
•
•
•
•
•
•
Encoding/decoding scheme
Speed of transmission (baud)
Directionality (one-way, bidirectional, switchable)
Noise
Equivocation (loss of signal)
Ambiguity (loss of meaning)
Turntaking (protocol)
MIS 300 Midterm Summary
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The Telecommunications Problem
Sender
Encoding
Channel
Decoding
Receiver
Distance: Sender and Receiver are not in direct contact
Equivocation: Message loses power over distance
Noise: Channel introduces unwanted message
Coordination: It’s not clear what a message event is
MIS 300 Midterm Summary
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Solutions to the problems
Sender
Encoding
Channel
Decoding
Receiver
Distance: Long “wires” of various types
Equivocation: Boosting of power (introduces noise)
Noise: Special encoding schemes
Coordination: Coordination messages (protocols)
Notice: Nothing about meaning, intention
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Basic Economics
•
•
•
•
Sources aren’t “on” all the time
Sources make mistakes; repetition is dangerous and costly
Channels are usually relatively expensive
Sharing channels is a good use of an expensive resource;
sharing is costly
• All channels are error-prone; the way to compensate is
redundancy
• The more complex the scheme, the higher the cost and the
more likely is failure or error.
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What Is a Signal?
ANALOG
signal: strength
is proportional to
“content”
• A communication event
• Has a definite start and stop
• Carries information (which is NOT the signal)
DIGITAL signal:
strength is fixed
at either 0 or a
constant
1
0
MIS 300 Midterm Summary
1
1
1
0
1
0
0
51
What Is the Advantage of Digital Signalling?
• First, simplicity, only two signal levels
• Second, resistance to noise
• Third, amplification can work without amplifying
noise
• Fourth, potential to add check bits to reconstruct
byte in the event of errors (for example, parity
checking).
MIS 300 Midterm Summary
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Carriers and Services
• Local exchange carrier (LEC): a public telephone
company in the United States that provides service
to homes and businesses within its defined
geographical area
• Competitive local exchange carrier (CLEC): a
company that is allowed to compete with the LECs,
such as a wireless, satellite, or cable service
provider
• Long-distance carrier: a traditional long-distance
phone provider, such as AT&T, Sprint, or MCI
MIS 300 Midterm Summary
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What Are Networks For?
• At an electrical level, networks move electrons along paths
between nodes
• At a signal level, networks move coded characters along
links connecting nodes
• At a transportation level, networks move packages or packets
of characters between source and destination along paths
within the network
• At a session level, networks move messages from sender to
receiver.
• At the application level, networks move information from a
server to a client.
Businesses can select various ways for this to happen.
MIS 300 Midterm Summary
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Networks
• Computer network: the communications media,
devices, and software needed to connect two or
more computer systems or devices
• Network nodes: the computers and devices on
the networks
Node
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Basic Processing Strategies
• Centralized processing: all processing occurs in a
single location or facility
• Decentralized processing: processing devices are
placed at various remote locations
• Distributed processing: computers are placed at
remote locations but connected to each other via a
network
MIS 300 Midterm Summary
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Terminal-to-Host, File Server, and
Client/Server Systems
• Connecting computers in distributed information
processing:
– Terminal-to-host: the application and database
reside on one host computer, and the user interacts
with the application and data using a “dumb” terminal
– File server: the application and database reside on
the one host computer, called the file server
– Client/server: multiple computer platforms are
dedicated to special functions, such as database
management, printing, communications, and program
execution
MIS 300 Midterm Summary
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Communications Software and
Protocols
• Communications software: software that provides
a number of important functions in a network, such
as error checking and data security
• Network operating system (NOS)
• Network management software
• Communications protocol: a standard set of rules
that controls a telecommunications connection
MIS 300 Midterm Summary
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Packet Switching
• Sender’s message is broken into (generally short,
fixed-length) packets
• Each packet is numbered and sent “into” the
network
• The network transmits the packets
• The node assembles the packets in order (not an
easy task)
• The receiver gets the message from the node.
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How the Internet Works
• The Internet transmits data from one computer
(called a host) to another
• If the receiving computer is on a network to which
the first computer is directly connected, it can send
the message directly
• If the receiving computer is not on a network to
which the sending computer is connected, the
sending computer relays the message to another
computer that can forward it
MIS 300 Midterm Summary
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How the Internet Works (continued)
• Data is passed in chunks called packets
• Internet Protocol (IP): communications standard
that enables traffic to be routed from one network to
another as needed
• Transmission Control Protocol (TCP): widely
used transport-layer protocol that is used in
combination with IP by most Internet applications
• Uniform Resource Locator (URL): an assigned
address on the Internet for each computer
MIS 300 Midterm Summary
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Internet Service Providers
• Internet service provider (ISP): any company that
provides individuals or organizations with access to
the Internet
• Most charge a monthly fee
• Many ISPs and online services offer broadband
Internet access through digital subscriber lines
(DSLs), cable, or satellite transmission
MIS 300 Midterm Summary
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The World Wide Web
• The Web, WWW or W3
• A menu-based system that uses the client/server
model
• Organizes Internet resources throughout the world
into a series of menu pages, or screens, that appear
on your computer
• Hypermedia: tools that connect the data on Web
pages, allowing users to access topics in whatever
order they want
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The World Wide Web (continued)
• Hypertext Markup Language (HTML): the
standard page description language for Web pages
• HTML tags: codes that let the browser know how to
format the text on a Web page and whether images,
sound, and other elements should be inserted
MIS 300 Midterm Summary
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Web Browsers
• Web browser: software that creates a unique,
hypermedia-based menu on a computer screen,
providing a graphical interface to the Web
• The menu consists of graphics, titles, and text with
hypertext links
• Ubiquitous and non-proprietary web browsers make
it possible for the Internet to be a business platform.
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Search Engines
•
•
•
•
Search engine: a Web search tool
Examples: Yahoo.com, Google.com
Most search engines are free
Searches can use words, such as AND and OR, to
refine the search
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Intranets and Extranets
• Intranet
– Internal corporate network built using Internet and
World Wide Web standards and products
– Used by employees to gain access to corporate
information
– Slashes the need for paper
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Intranets and Extranets (continued)
• Extranet
– A network based on Web technologies that links
selected resources of a company’s intranet with its
customers, suppliers, or other business partners
• Virtual private network (VPN): a secure
connection between two points across the Internet
• Tunneling: the process by which VPNs transfer
information by encapsulating traffic in IP packets
over the Internet
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Net Issues
• Management issues
– No centralized governing body controls the
Internet
• Service and speed issues
– Web server computers can be overwhelmed by
the amount of “hits” (requests for pages)
– More and more Web sites have video, audio clips,
or other features that require faster Internet
speeds
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Net Issues (continued)
• Privacy
– Spyware: hidden files and information trackers that
install themselves secretly when you visit some
Internet sites
– Cookie: a text file that an Internet company can place
on the hard disk of a computer system
• Fraud
– Phishing
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Net Issues (continued)
• Security with encryption and firewalls
– Cryptography: converting a message into a secret
code and changing the encoded message back to
regular text
– Digital signature: encryption technique used to verify
the identity of a message sender for processing
online financial transactions
– Firewall: a device that sits between an internal
network and the Internet, limiting access into and out
of a network based on access policies
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Ch 5
The Supply Chain
Suppliers
Focal Firm
(Producer or
Service
Provider)
Buyers
Procurement, inbound logistics, production, outbound
logistics, sales, servicing
The Value Chain coexists with the supply chain,
adding “value” at every link in the chain
MIS 300 Midterm Summary
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The E-Commerce Supply Chain
Suppliers
These links are
all electronic.
Info is
maintained in
data bases
MIS 300 Midterm Summary
Focal Firm
(Producer or
Service
Provider)
Buyers
These links are
all electronic.
Info is
maintained in
data bases
73
E-Commerce Supply Chain Management
• Supply chain management is a key value chain
composed of:
– Demand planning
– Supply planning
– Demand fulfillment
• It’s actually a supply network.
• The supply chain is the upstream aspect of the
value chain.
• The value chain is actually a value network.
MIS 300 Midterm Summary
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Mobile Commerce
• Mobile commerce (m-commerce) relies on the use
of wireless devices, such as personal digital
assistants, cell phones, and smart phones, to place
orders and conduct business
• What does it mean to “be mobile”?
• Issues confronting m-commerce
– User-friendliness of the wireless device
– Network speed
– Security
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Mobile Commerce (continued)
• Handheld devices used for m-commerce have
limitations that complicate their use
• Wireless application protocol (WAP): a standard
set of specifications for Internet applications that run
on handheld, wireless devices
MIS 300 Midterm Summary
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Electronic Payment Systems
• Digital certificate: an attachment to an e-mail
message or data embedded in a Web page that
verifies the identity of a sender or a Web site
• Electronic cash: an amount of money that is
computerized, stored, and used as cash for
e-commerce transactions
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Electronic Payment Systems
(continued)
• Electronic wallet: a computerized stored value that
holds credit card information, electronic cash, owner
identification, and address information
• Credit card
• Charge card
• Debit card
• Smart card
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An Overview of Transaction Processing
Systems
• Provide data for other business processes:
– Management information system/decision support
system (MIS/DSS)
– Special-purpose information systems
• Process the detailed data necessary to update
records about the fundamental business operations
• Include order entry, inventory control, payroll,
accounts payable, accounts receivable, and the
general ledger.
MIS 300 Midterm Summary
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An Overview of Transaction Processing
Systems (continued)
Figure 5.6: TPS, MIS/DSS, and Special Information Systems in
Perspective
MIS 300 Midterm Summary
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Traditional Transaction Processing
Methods and Objectives
• Batch processing system: method of
computerized processing in which business
transactions are accumulated over a period of time
and prepared for processing as a single unit or
batch
• Online transaction processing (OLTP):
computerized processing in which each transaction
is processed immediately, without the delay of
accumulating transactions into a batch
MIS 300 Midterm Summary
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Transaction Processing Activities
• TPSs
– Capture and process data that describes fundamental
business transactions
– Update databases
– Produce a variety of reports
• Transaction processing cycle: the process of data
collection, data editing, data correction, data
manipulation, data storage, and document
production
MIS 300 Midterm Summary
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Transaction Processing Activities
(continued)
Figure 5.8: Data Processing Activities Common to TPSs
MIS 300 Midterm Summary
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Transaction Processing Activities
(continued)
• Data collection
– Should be collected at source
– Should be recorded accurately, in a timely fashion
• Data editing
• Data correction
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Transaction Processing Activities
(continued)
• Data manipulation
• Data storage
• Document production and reports
MIS 300 Midterm Summary
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International Issues
• Issues that multinational corporations face in
planning, building, and operating their TPSs
–
–
–
–
Different languages and cultures
Disparities in IS infrastructure
Varying laws and customs rules
Multiple currencies
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Enterprise Resource Planning: An
Overview of Enterprise Resource
Planning
• Enterprise resource planning (ERP) systems are
used in large, midsized, and small companies
• Real-time monitoring of business functions
• Timely analysis of key issues, such as quality,
availability, customer satisfaction, performance, and
profitability
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Definition
• The adoption of an integrated, comprehensive set of
applications that communicate easily with one
another to handle all of a firm’s business
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Basic Philosophy
• Division of labor, basis of bureaucracy isn’t whole
story
• Business is an integrated, tightly cohesive system
• Structure follows form follows function follows
information!
• Redundancy, duplication are bad
• Variety is the enemy
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89
Management Level
Typically, corporate IT use is …
Sales EIS
Production
DSS
Corporate
Accountability
Finance
ESS
Sales Mgmt
Software
Production
Mgmt
Application
Accounting
System
Debt
Management
Application
Sales
POS
System
Production
System
Accounts
Receivable
Finance
Spreadsheet
Division, Function, Responsibility
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No aggregation or dissemination across levels
of responsibility
Management Level
Fragmented, Fractured…
Sales EIS
Production
DSS
Corporate
Accountability
Finance
ESS
Sales Mgmt
Software
Production
Mgmt
Application
Accounting
System
Debt
Management
Application
Sales
POS
System
Production
Accounts
Finance
No communication
across
functionsSpreadsheet
System
Receivable
Division, Function, Responsibility
MIS 300 Midterm Summary
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Integration Proceeds in Two Dimensions
1. CrossFunctional
Production
Corporate
Finance
Sales EIS
DSS real-timeAccountability
ESS
Common data formats,
data processing, clientserver platforms, and Internet-based extranets enable data
to move “seamlessly” across divisional boundaries,
Production
Debt
lubricating
Sales
Mgmt the movement of semi-finished
Accountinginventory,
Management
product, etc. One Mgmt
barrier to integration
is removed.
Software
System
Application
Application
Common user interfaces enable better communication and
movement of human resources among divisions
Sales
POS
System
Production
System
Accounts
Receivable
Finance
Spreadsheet
Division, Function, Responsibility
MIS 300 Midterm Summary
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Typically, corporate IT use is …
Management Level
Sales EIS
Sales Mgmt
Software
Sales
POS
System
MIS 300 Midterm Summary
2. Vertically Integrated
Production
Corporate
Finance
DSS
Accountability
ESS
Central repositories,
common formats, real-time
processing, updated
Production
Debt
security, mobile
Accounting
Mgmt
Management
technologies enable
System
Application
Application
executives, managers,
supervisors and workers
at all levels to create,
access, use, and update
information according
Production
Accountsto
Finance
their needs. Receivable
System
Spreadsheet
93
Result?
And to CFO to update
information for loan
repayment, renegotiation
Available to Sales
Managers to forecast
demand
Sales data
generated
from POS
MIS 300 Midterm Summary
And to production
management to monitor
productivity, anticipate
problems
And to production
stations for
schedule
generation
And to all employees to keep
them informed
about working
conditions
And to customers to
estimate delivery
time, options, etc.
94
Why Is Enterprise Computing Important?
• Integrates the supply chain
• Provides for organizational learning
• Introduces strong IT efficiencies through common
approaches
• Solves management problems of burgeoning IT
costs (consolidation)
• Recognizes IT’s central role in integration,
lubrication of business processes
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95
What Makes ERP/EC Difficult?
•
•
•
•
•
•
•
•
Sheer volume of data
Divisional lore
Actual divisions of labor
Human nature (undesirability of change)
Poorly thought-through problem statement
High initial cost
Legacy systems, sunk costs
Near-monopoly supplier situation (SAP, Bahn, Peoplesoft,
Oracle are really only suppliers)
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96
Advantages and Disadvantages of ERP
• Elimination of costly, inflexible legacy systems
• Improvement of work processes
• Increase in access to data for operational decision
making
• Upgrade of technology infrastructure
• Expense and time in implementation
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Advantages and Disadvantages of ERP
(continued)
•
•
•
•
Difficulty implementing change
Difficulty integrating with other systems
Risks in using one vendor
Risk of implementation failure
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98
Plus Material NOT in the Book
• *Internet as E-Commerce Platform (.asp)
• *The Business Platform Idea (.ppt) What
business needs to function
• *The Computer Idea (.ppt) Computers as ideal
office assistants
• *The Database Idea (.ppt) Integrating data
• *The Economy of Style Idea (.ppt) Another basis
for competition
• *Transaction Processing Systems (.ppt) Gold in
old transactions
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Information Laws
• Conservation: Information cannot come from
nowhere
• Utilization: Data cannot go nowhere
• Logical Data Flow: Outputs must be completely
determined by inputs plus processing
• Data Integrity: All changes to data stores must be
made by processes inside a system
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100