EXAM PREP WORKSHOP

MANAGEMENT INFORMATION SYSTEMS

FOCUS AREASCHAPTER 2CHAPTER 3CHAPTER 6CHAPTER 8CHAPTER 9CHAPTER 10CHAPTER 12

Information systems in Global Business TodayThe role of Information Systems in BusinessDimensions of an information system:

Source: Laudon and Laudon

Global E-business

Management information Systems may be defined as :

« Systems designed to produce information on

a periodic basis instead of on a daily

recurring basis. »

Types of support systems

DSS ( Decision Support Systems)a)Serves the management level of an

organizationb)Somewhat different from an MISc)A DSS uses internal data and combines

external data to analyze various decisions based on the information.

d)The analysis of complex, interactive decisions is the primary reason for using a DSS.

ESS (Executive Support Systems)Are use by upper levels of

managementUsed to analyze both internal and

external data to help make decisions

Executives make their decisions based on the information provided by the ESS.

(SCM)Supply Chain Management Systems

SCM Systems offer new opportunities to integrate data and information with their suppliers and their customers.

Global Supply Chain Issues

Greater geographic distances and time differences

Additional Costs for transportation, inventory and local taxes and fees

Varying performance standardsForeign government regulationsCultural differences

Benefits of an integrated SCMMatch supply to demandReduce inventory levelsImprove delivery serviceSpeed product time to marketUse assets more effectively

Information systems, Organizations and StrategiesInformation Systems in Competitive advantage: Porter’s Competitive forces model

Information System Strategies for competitive forcesLow cost leadershipEfficient customer response systemsProduct DifferentiationMarket NicheCustomer and Supplier Intimacy

Data Bases and Information Management« A database Management

System is another software program which permits an organization to centralize data by application programs. »

Types of Database Management SystemsA) Object Orientated : Data

represented by pictures , text, audio and video can be captured.

B) Relational: Stores data in tables. Data is then extracted and combined into whatever format as per the requirement of the user.

Benefits of a DBMSReduces the complexity of the information

environmentReduces data redundancy and inconsistencyEliminates data confusionCreates program data independanceEnhances flexibilityReduces program and development costsImproves the accessibility to informationAllows for easy retrieval of information

Securing information systemsThe importance of securing

information systemsInternet VulnerabilitiesTechnologies and Tools for

securing information systems

Types of threats to information systemsHackersVirusesSpoofing and SniffingPharming

Click fraud

Cyberterrorism and cyberwarfare:

Methods of encryption• Symmetric key encryption

• Shared, single encryption key sent to receiver

• Public key encryption

• Two keys, one shared/public and one private

• Messages encrypted with recipient’s public key but can only be decoded with recipient’s private key

Encryption and Public Key Infrastructure Software programs are used to encrypt or scramble

transmissions before they are sent The sender and recipient have special software programs

to encode and decode the end transaction.

E CommerceFactors that make e commerce

different:A)UbiquityB)Global ReachC)Universal StandardsD)RichnessE)InteractivityF)Price transparencyG)Customization

E Commerce Payment systemsTypes of Payment Systems

• Digital credit card payment systems

• Extend functionality of credit cards for online shopping payments

• Provide mechanisms for authentication and transferring money from bank to seller

• Digital wallets

• Software stores credit card and other information to facilitate form completion and payment for goods on Web.

• Example: Google CheckOut

E Commerce Payment systemsTypes of Payment Systems

• Micropayment systems: For purchases of less than $10, such as downloads of individual articles or music clips

• Accumulated balance digital payment systems: Accumulate debit balance that users pay periodically on credit card or telephone bills

• Stored value payment systems: Allow instant online payments based on value stored in digital account (e.g. checking, credit card accounts

• May require use of digital wallet

• Example: Smart cards and devices like EZ Pass

E Commerce Payment systemsTypes of Payment Systems

• Digital cash: “Currency” represented in electronic form that moves outside normal network of money. Not regulated and not legal tender

• Client software allows exchange of money with other e-cash user over Internet or with retailer accepting e-cash

• Peer-to-peer payment systems: Serve people who want to send money to vendors or individuals who are not set up to accept credit card payments

• Digital checking payment systems: Electronic check with secure digital signature

• Electronic billing presentment and payment systems: Used for paying routine monthly bills from bank or credit card accounts

E Commerce Payment systemsTypes of Payment Systems

• Digital cash: “Currency” represented in electronic form that moves outside normal network of money. Not regulated and not legal tender

• Client software allows exchange of money with other e-cash user over Internet or with retailer accepting e-cash

• Peer-to-peer payment systems: Serve people who want to send money to vendors or individuals who are not set up to accept credit card payments

• Digital checking payment systems: Electronic check with secure digital signature

• Electronic billing presentment and payment systems: Used for paying routine monthly bills from bank or credit card accounts

CASE STUDY: AMAZON.COM VS EBAY INC.

How has using the internet for electronic transactions, assisted Amazon in gaining competitive advantage?

What are the advantages and disadvantages of using e-commerce?