using mis 5e ch. 6-10 & 12 review

Data Communication and

the Cloud

by David Kroenke

Using MIS 5e

Chapter 6

GearUp: “No, I Mean 25 Cents an Hour.”

• Gearup’s Web hosting costs rising rapidly

• Lucas suggests provisioning Web servers

and databases in the cloud

• Provision server resources by the hour

• Costs: $50/mo plus 25-cents per hour for

processing time used

• Could yield huge savings

C o p y r i g h t © 2 0 1 3 P e a r s o n E d u c a t i o n , I n c . P u b l i s h i n g a s P r e n t i c e H a l l

Study Questions

Q1: What is a computer network?

Q2: What are the components of a LAN?

Q3: What are the fundamental concepts you should know about the Internet?

Q4: What processing occurs on a typical Web server?

Q5: Why is the cloud the future for most organizations?

Q6: How can organizations use the cloud?

Q7: 2022?


Q1: What Is a Computer Network?


Q2: What Are the Components of a

LAN?


SOHO

LAN

LAN Protocol

IEEE 802.3

• Wired LAN

• 10/100/1000 Mbps

• Ethernet

IEEEE 802.11

• Wireless LAN

• 802.11n

• Bluetooth


http://en.wikipedia.org/wiki/Ethernet

Summary of LAN and WAN Networks


Connecting to an ISP


Using MIS InClass 6: A Group Exercise

Opening Pandora’s Box

• Sonos: leverages technology to provide

entertainment

• High-quality, wireless LAN audio systems

• Uses wired Ethernet to link up to 32 other

Sonos devices around home

• Each device can play own music or same

audio program

• Includes a small computer running Linux and

a proprietary Sonos protocol


Q3: What Are the Fundamental Concepts

You Should Know About the Internet?

C o p y r i g h t © 2 0 1 3 P e a r s o n E d u c a t i o n , I n c . P u b l i s h i n g a s

P r e n t i c e H a l l

TCP/IP Protocol Architecture


Application Layer Protocols

Hyper Text Transport Protocol (http)

HTTPS - secure HTTP data transmission

Simple Mail Transfer Protocol (SMTP )

File Transfer Protocol (ftp)


TCP and IP Protocols

TCP or Transmission Control Protocol

• Breaks traffic up into packets and sends

each one along its way

IP (Internet Protocol)

• Routers


IP Addressing

Public IP Addresses • Identify a particular device on public Internet

• Public IP addresses must be unique, worldwide

• Assignment controlled by ICANN (Internet Corporation for Assigned Names and Numbers)

Private IP Addresses

• Identify a particular device on a private network

Major benefits

1. Public IP: All devices on LAN share a public IP address.

2. Private IP address, need not register computer with

ICANN-approved agencies.


Functions of the LAN Device

• Switch processing: IEEE 802.3 wired LAN traffic

• Access-point processing: IEEE 802.11 wireless LAN traffic

• Translating between IEEE 802.3 and IEEE 802.11

• Converting between Analog and Digital

• Assigning private IP addresses

• Converting IP address between private and public IP addresses

• Routing packets

• And more …


Public IP Addresses and Domain Names

IPv4

•Four decimal dotted notation like

165.193.123.253

Domain name

•Worldwide-unique name affiliated with a

public IP address

•Affiliation of domain names with IP

addresses is dynamic

URL (Uniform Resource Locator)


Remote Access Using VPN


WAN Using VPN


Q4: What Processing Occurs on a

Typical Web Server?


Watch the Three Tiers in Action!


Hypertext Markup Language (HTML)


XML, Flash, Silverlight, HTML 5

XML (eXtensible Markup Language)• Fixes several HTML deficiencies• Program-to-program interaction over Web

Flash

• Browser add-on for animation, movies, and other advanced graphics inside a browser.

Silverlight

• Browser add-on with greater functionality than Flash

HTML 5.0 • Supports animation, movies, and graphics


Ethics Guide: Personal Work at Work

You email 12 pictures of your surfing skills from New Zealand to a friend at some company in Ohio.

Each picture is 6.2 megabytes in size.

Packets of email and picture transmitted to Ohio company router and from router to its email server.

Your message consumed processing cycles on router and email server. A copy of your pictures stored on email server until your friend deletes them.

Friend uses company LAN to download the pictures to his desktop computer.

Friend reads his email during his working hours.


Q5. Why Is the Cloud the Future for

Most Organizations?

Cloud

• Elastic leasing of pooled computer

resources over the Internet

Elastic

• Dynamically increasing/decreasing a

leased resource programmatically in a

short span of time, and only pay for

resource used


Why Is the Cloud Preferred to In-House

Hosting?


Cloud On Site

Positives:

Small capital requirements Control of data location

Speedy developmentIn-depth visibility of security and

disaster preparedness

Superior flexibility and adaptability to

growing or fluctuating demand

Known cost structure

Possibly best of breed security /

disaster preparedness

No obsolesce

Industry-wide economies of scale

hence cheaper

Why Is the Cloud Preferred to In-House

Hosting? (cont’d)


Negatives:

Dependency on vendor Significant capital required

Loss of control over data location Significant development effort

Little visibility into true security and

disaster preparedness capabilities

Annual maintenance costs

Ongoing support costs

Staff and train personnel

Increased management

requirements

Difficult (impossible?) to

accommodate fluctuating demand

Cost uncertainties

Obsolesce

When Does the Cloud Not Make Sense?

Only when law or industry standard practices

require physical control over the data

Private cloud

• In-house hosting, delivered via Web

service standards


Q6. How Can Organizations Use the

Cloud?


Q7: 2022?

Cloud computing benefit

• Individuals on iCloud

• Small groups using Office 365

• Startups Using PaaS

• Huge organizations using IaaS

New categories of products and services

Create new jobs?

Tele-action

• Telediagnosis, telesurgery, telelaw enforcement


Guide: Thinking Exponentially Is Not

Possible, But…

Humans cannot think exponentially

• No one could imagine the growth in

magnetic storage and what we would do

with it (1990s).

Exponential growth in:

• Number of Internet connections

• Web pages

• Amount of data accessible on Internet


Guide: Thinking Exponentially Is Not

Possible, But…(cont’d)

• What can we do to better anticipate

• People want to do what they’re already

doing, but more easily; they want to solve

problems that they already have.

• Hedging your bets

Position yourself to move quickly as

direction becomes clear

• Error increases exponentially as time frame

increases


Ethics Guide: Human Networks

Matter More

• Social networks are crucial in connecting

• Build personal social networks for success

• Six-degree theory

You are connected to everyone on the planet by no more than six degrees of separation

• Successful professionals consistently build personal human networks

• People you know the least contribute the most to your network


Active Review

Q1: What is a computer network?

Q2: What are the components of a LAN?

Q3: What are the fundamental concepts you should know about the Internet?

Q4: What processing occurs on a typical Web server?

Q5: Why is the cloud the future for most organizations?

Q6: How can organizations use the cloud?

Q7: 2022?


Case Study 6: Turbulent Air in Those

Azure Clouds

• Microsoft has to find a profitable way to put

a big part of its business out of business

• If Azure is successful, Office 365 will

replace Windows Server and SQL Server,

which is 24% of current revenue


Azure

Standard

Rates


Copyright © 2013 Pearson Education, Inc.

Publishing as Prentice Hall

Structured Processes and

Information Systems

by David Kroenke

Using MIS 5e

Chapter 7

Fox Lake Country Club Has a Problem

• Mike, facilities manager

• Anne, wedding planner

• Renovation plan interferes with scheduled

weddings

• Could result in lost revenue, unhappy

customers, damaged business reputation and

costly law suits


Study Questions

Q1: What are the basic types of structured processes?

Q2: How can information systems improve process quality?

Q3: How do enterprise systems eliminate problems of information silos?

Q4: How do CRM, ERP, and EAI support structured enterprise processes?

Q5: What are the elements of an ERP System?

Q6: What are the challenges of implementing enterprise systems?

Q7: How will service-oriented architecture impact enterprise information systems?

Q8: 2022?


Q1: What Are the Basic Types of

Structured Processes?


How Do Structured Processes Differ

from Dynamic Processes?


Common Departmental Information

Systems


How Do Structured Processes Vary by

Scope?


Q2: How Can Information Systems

Improve Process Quality?

• Process efficiency: ratio of process outputs

to inputs.

• Process effectiveness: how well a process

achieves organizational strategy

• Ways to improve process quality

Change process structure

Change process resources

Change both


How Can Information Systems Improve

Process Quality?

• Performing an activity

– Partially automated, completely automated

• Augmenting human performing activity

– Common reservation system

• Controlling process flow

– Order approval process


Fox Lake Country Club Departmental

Goals


Islands of Automation


Examples of Islands of Automation at a

Hospital


Q3: How Do Enterprise Systems Eliminate

Information Silo Problems?

How Do Information System Silos Arise?

• Data isolated in islands of automation

• Different department goals

• Different personal and workgroup needs

• Duplicate data as organization grows


What Problems Do Information Silos

Cause?


How Do Enterprise Information Systems

Eliminate Silos?


An Enterprise System for Patient

Discharge


Ethics Guide: Dialing for Dollars

• Assume you are a salesperson.

• It has been a bad quarter. VP of sales authorized a 20% discount on new orders if customers take delivery prior to end of quarter so order can be booked for this quarter.

• VP says “Start dialing for dollars, and get what you can. Be creative.”

• You identify your top customers to offer discount deal.


Q4: How Do CRM, ERP and EAI

Support Enterprise Processes?

Business Process Reengineering

• Integrated data, enterprise systems create

stronger, faster, more effective linkages in

value chains

• Difficult, slow, and exceedingly expensive

• Key personnel determine how best to use

new technology

• Requires high-level and expensive skills

and considerable time


Emergence of Enterprise Application

Solutions.

• Inherent processes

– Predesigned procedures for using

software products

– Based on “industry best practices”

• Customer relationship management (CRM)

• Enterprise resource planning (ERP)

• Enterprise application integration (EAI)


Customer Relationship Management

(CRM)

• Suite of applications, a database, and a set

of inherent processes

• Manage all interactions with customer

though four phases of customer life cycle:

– Marketing, customer acquisition,

relationship management, loss/churn

• Intended to support customer-centric

organization


Four Phases of Customer Life Cycle


CRM Applications


Enterprise Resource Planning (ERP)


Pre-ERP Information System: Bicycle

Manufacturer


ERP Information System


Enterprise Application Integration (EAI)

• Connects system “islands”.

• Enables communicating and sharing data.

• Provides integrated information.

• Provides integrated layer over the top of

existing systems while leaving functional

applications “as is”.

• Enables a gradual move to ERP.


EAI Automatically Makes Data

Conversions Among Different Systems


“Virtual Integrated Database”

Using MIS InClass 7: Improving the

Process of Making Paper Airplanes


See textbook page 230 for exercise instructions.

Q5: What Are the Elements of an ERP

System?

Applications programs, databases,

procedures, training and consulting that

integrate:

• Supply chain

• Manufacturing

• CRM

• Human

• Accounting


ERP Application Programs

ERP application programs

– Set configuration parameters

ERP databases

– Initial database design included

–Trigger program code

–Stored procedure code

ERP process blueprints

ERP consulting and training


SAP Ordering Business Process


Inherent Processes: SAP Ordering

Business Process (cont’d)


What Companies Are the Major ERP

Vendors?


Q6: What Are the Challenges When

Implementing New Enterprise Systems?

Four Primary Factors

• Collaborative management

• Requirements gaps

• Transition problems

• Employee resistance due to threats to self-

efficacy


Q7. How Will Service-Oriented Architecture

Impact Enterprise Information Systems?


What Is SOA?

Web service

• Encapsulated software service provided anywhere over the Internet

• Service description documents how to use service, and publishes description using Web Service Description Language (WSDL)

• Services delivered via XML, SOAP, REST, et al.

• Used by SAP, Oracle ERP


Q8: 2022?

• Islands of Automation, Version 2.0

• Storing of data in various places in the

iCloud, while other versions of data stored

in corporate data in SAP

• Version 2.0 silos more isolated and less

secure than previous silos


Guide: The Flavor-of-the-Month Club

• Management never listens

• Employees want change from bottom-up

• Change management programs are silly

• Managers forgets about programs

• When program loses support, new one

introduced

• Employees grow more cynical with each

failed program


Guide: ERP and the Standard, Standard

Blueprints

• Organization adapts its processes to

standard blueprints

• If all firms in an industry use same business processes, how can a firm gain competitive advantage?

• How will innovation occur?

• Does “commoditized” standard blueprint prevent sustaining a competitive advantage?


Active Review

Q1: What are the basic types of structured processes?

Q2: How can information systems improve process quality?

Q3: How do enterprise systems eliminate problems of information silos?

Q4: How do CRM, ERP, and EAI support structured enterprise processes?

Q5: What are the elements of an ERP System?

Q6: What are the challenges of implementing enterprise systems?

Q7: How will service oriented architecture impact Enterprise Information Systems?

Q8: 2022?


Case Study 7:

Process Cast in Stone

• Knowledge of enterprise systems can help

you see how information flows throughout an

organization and how enterprise systems

enable an organization to keep its records

up-to-date and accurate.

• Understanding how an enterprise system

links all aspects of an organization together

will help recognize the value of these

systems and envision their use.


Social Media

Information Systems

by David Kroenke

Using MIS 5e

Chapter 8

“She Said WHAT?—On Our Facebook

Page???”

Negative customer comment on Fox Lake’s

Facebook

User-generated content is double-edged

sword

Deleting critical feedback problematic

Critical comments result from process

problems

Learn to deal with negative feedback


Study Questions

Q1: What is a social media information system (SMIS)?

Q2: How do SMIS advance organizational strategy?

Q3: How do SMIS increase social capital?

Q4: What roles do SMIS play in the hyper-social organization?

Q5: How do organizations use Web 2.0?

Q6: How can organizations manage the risks of social media and Web 2.0?

Q7: 2022?


Q1: What Is a Social Media Information

System (SMIS)?

Social media (SM)

•Use of information technology to support

sharing of content among networks of users

Communities, tribes, or hives

•Group of people related by a common interest

Social media information system (SMIS)

•An information system that supports sharing of

content among networks of users


SMIS: Convergence of Disciplines


SMIS Organizational Roles


Community/Social Media Site

Relationship


Social Media Sponsors


Social Media Application Providers

• Facebook, Twitter, LinkedIn, and Google

create the features and functions of the site

• Free to users

• Sponsors may or may not pay a fee

• Most earn revenue through some type of

advertising model


Five Components of SMIS


Q2: How Do SMIS Advance

Organizational Strategy?

Defenders of Belief • Share a common belief• Seek conformity• Want to convince others• Facilitate activities like sales and marketing• Form strong bonds and allegiance to an

organization

Seekers of the Truth

• Share common desire to learn something, solve a problem, make something happen

• Seldom form a strong bond


SM in the Value Chain Activities


Social Media and Manufacturing and

Operations

• Crowdsourcing

• Enterprise 2.0

• Folksonomy

• SLATES


McAffee's SLATES Enterprise 2.0 Model


Q3: How Do SMIS Increase Social Capital?

Types of business capital

• Physical capital — factories, machines,

manufacturing equipment

• Human capital — human knowledge and

skills

• Social capital — social relations


What Is the Value of Social Capital?

• Information

• Influence

• Social credentials

• Personal reinforcement

• Value of social capital

Number of relationships, strength of

relationships, and resources controlled


How Do Social Networks Add Value to

Businesses?

Progressive organizations:

• Maintain a presence on Facebook,

LinkedIn, Twitter, and other SN sites.

• Include links to their social networking

presence for customers and interested

parties to leave comments.


Using Social Networking to Increase the

Number of Relationships


Q4: What Roles Do SMIS Play in Hyper-social

Organization?

Four Pillars of Hyper-Social Organizations


Using Social Networks to Increase the

Strength of Relationships

1. Ask them to do you a favor

2. Frequent interactions strengthen

relationships

3. Size of assets controlled by those in

relationship

SocialCapital = NumberRelationships ×

RelationshipStrength ×

EntityResources


SEAMS Dynamic Process Activities


SMIS and SEAMS Activities


Q4: How Do Organizations Use Web

2.0?


Testing of New Features, Web 2.0 Style


In the Web 2.0 World

• No traditional marketing viral marketing

• Use increases value

• Organic user interfaces and mashups

• Participation and ownership differences


How Can Businesses Benefit from Web

2.0?

• Advertising

Adwords and Adsense

• Mashups

Mashing content of multiple products


Example of a Mashup


Ethics Guide: Hiding the Truth?

• How is social networking different in

business than in private life?

• Do the ethics vary between private and

business use of social networking?


Q6: How Can Organizations Manage the

Risks of Social Media and Web 2.0

Applications?

Six guiding principles to employees:

1. Stick to your area of expertise.

2. Post meaningful, respectful comments.

3. Pause and think before posting

4. Respect proprietary information and content, and confidentiality.

5. When disagreeing with others, keep it appropriate and polite.

6. Know and follow company code of conduct and privacy policy.


Intel’s Rules of Social Media

Engagement


Managing the Risk of User Generated

Content (UGC)

Major sources of UGC problems:

• Junk and crackpot contributions

• Inappropriate content

• Unfavorable reviews

• Mutinous movements


Responding to Social Networking

Problems

• Leave it

• Respond to it

• Delete it


Q7: 2022?

• GPS devices in consumer products?

• How to harness employee social behavior

and partners to foster company strategy

• Employees craft their own relationships with

their employers

• Employers provide endoskeleton to support

work of people on the exterior


Guide: Blending the Personal and

the Professional

• Employees sharing personal information

socially

• Technology blurs line between work life and

home life

• Work is portable and always on

• You need to be more careful about what

you say

• Work networks are not social networks


Guide: Social Recruiting

• Hyper-social organizations use their communities to locate prospects

• Created communities of ‘alumni’ employees

• Get a sense of candidate to find any potential behavior or attitude problems

• Exposing protected data

• Treat every candidate the same

• Join LinkedIn, use Google + circles

• Keep your personal social data out of any circle that can be publicly accessed

• Check out blogs, commentary, and postings of people who already work at prospective employers


Active Review


Q1: What is a social media information system (SMIS)?

Q2: How do SMIS advance organizational strategy?

Q3: How do SMIS increase social capital?

Q4: What roles do SMIS play in the hyper-social organization?

Q5: How do organizations use Web 2.0?

Q6: How can organizations manage the risks of social media and Web 2.0?

Q7: 2022?

Case Study 8: Tourism Holdings Limited

• Publicly listed New Zealand corporation that owns multiple brands and businesses in tourism industry

• Operates in New Zealand, Australia, and Fiji, and sales offices in Germany and United Kingdom.

• Information systems and technology a core component of its business value

• Invested in a variety of innovative information systems and Web 2.0 technologies.


Case Study 8: Tourism Holdings Limited

(cont’d)

Problems

• Acquisition of multiple brands and companies created a disparate set of information systems using a variety of different technologies, excessive software maintenance and costs

• Converted customer-facing Web sites to use Microsoft SharePoint and MOSS

Solutions

• Single development platform reduced maintenance costs

• Attention on development and personnel training


Business Intelligence

Systems

by David Kroenke

Using MIS 5e

Chapter 9

“We’re Sitting On All This Data. I Want to

Make It Pay.”

Anne wants membership data to:

• Combine membership data and publicly

available data

• Enable target marketing

• Increase wedding revenue


Study Questions


Q1: How do organizations use business intelligence (BI)

systems?

Q2: What are the three primary activities in the BI process?

Q3: How do organizations use data warehouses and data

marts to acquire data?

Q4: How do organizations use typical reporting applications?

Q5: How do organizations use typical data mining

applications?

Q6: What is the role of knowledge management systems?

Q7: What are the alternatives for publishing business

intelligence?

Q8: 2022?

Q1: How Do Organizations Use

Business Intelligence (BI) Systems?


Example Uses of Business Intelligence


Q2: What Are the Three Primary Activities

in the Business Intelligence Process?


Using BI for Problem-solving at GearUp:

Process and Potential Problems

1. Obtain commitment from vendor

2. Run sales event

3. Sell as many items as possible

4. Order amount actually sold

5. Receive partial order and damaged items

6. If received less than ordered, ship partial

order to customers

7. Some customers cancel orders


Tables Used for BI Analysis at GearUp


GearUp Analysis: Item Summary and

Lost Sales Summary Reports


Short and Damaged Shipments Details

Report


Publish Results

Options

• Print and distribute via email or

collaboration tool

• Publish on Web server or SharePoint

• Publish on a BI server

• Automate results via Web service


Q3: How Do Organizations Use Data

Warehouses and Data Marts to

Acquire Data?

• Why extract operational data for BI

processing?

Security and control

Operational not structured for BI analysis

BI analysis degrades operational server

performance


Components of a Data Warehouse


Examples of Consumer Data that Can

Be Purchased


Possible Problems with Operational

Data


Data Warehouses vs. Data Marts


Q4 How Do Organizations Use Typical

Reporting Applications

Basic operations:

1. Sorting

2. Filtering

3. Grouping

4. Calculating

5. Formatting


Example RFM Scores


Example of Drilling Down into Expanded

Grocery Sales OLAP Report


Figure 9-17

Drilling Down to Expanded Grocery

Store Sales


Using MIS InClass 9 - A Group Exercise

Do You Have a Club Card?

Acxiom Corporation — a data aggregator

•Visit www.acxiom.com.

• Navigate Web site and make a list of 10 different products Acxiom provides.

• Describe Acxiom’s top customers.

• Describe the kinds of data Acxiom must collect to be able to provide these products to its customers.


http://www.acxiom.com/

Q5 How Do Organizations Use Typical

Data-mining Applications?


Unsupervised vs. Supervised Data

Mining

U ns upe r v i s e d

•No model before

running analysis

•Hypotheses created

after analysis

•Cluster analysis to find

groups

Supe r v i s e d

•Model created before

analysis

•Hypotheses created

before analysis

•Regression analysis:

make predictions


Neural Networks

• Used for predicting values and making

classifications

• Complicated set of nonlinear equations

• Go to http://kdnuggets.com and search for

“neural network”


http://kdnuggets.com/

Market Basket Analysis at a Dive Shop

(Transactions = 400)


Decision Tree Example for MIS Classes

(hypothetical data)


Decision Rules

• If student is a junior and works in a

restaurant, then predict grade > 3.0.

• If student is a senior and is a nonbusiness

major, then predict grade ≤ 3.0.

• If student is a junior and does not work in a

restaurant, then predict grade ≤ 3.0.

• If student is a senior and is a business

major, then make no prediction.


Credit Score Decision Tree


Ethics Guide: The Ethics of

Classification

Classifying applicants for college

• University collects demographics and

performance data of all its students

• Uses decision tree data mining program

• Uses statistically valid measures to obtain

statistically valid results

• No human judgment involved


Q6. What Is the Role of Knowledge

Management Systems?

1. Encourage free flow of ideas.

2. Improve customer service by streamlining response time.

3. Boost revenues by getting products and services to market faster.

4. Enhance employee retention rates by recognizing and rewarding knowledge sharing.

5. Streamline operations and reduce costs.


Sharing Document Content

• Indexing — most important content function in KM applications

• Real Simple Syndication (RSS) — subscribing to content sources

• Blogs — place where employees share their knowledge that may include RSS feeds


Expert Systems

Encode human knowledge as Rule-based systems (IF/THEN)

Rules created by interviewing experts

Major problems with ES:

•Expensive to develop

•Unpredictable maintenance

•Over hyped


Expert System for Pharmacies


Q7 What Are the Alternatives for

Publishing Business Intelligence?


Components of a Generic Business

Intelligence System


Q8: 2022

• Companies will know more about your

purchasing habits and psyche.

• Social singularity — machines can build

their own information systems.

• Will machines possess and create

information for themselves?


Guide: Semantic Security

1. Unauthorized access to protected data and information

• Physical security

Passwords and permissions

Delivery system must be secure

2. Unintended release of protected information through reports & documents

3. What, if anything can be done to prevent what Megan did?


Ethics Guide: Data Mining in the Real

World

Different from way described in textbooks

Problems:

• Dirty data

• Missing values

• Lack of knowledge at start of project

• Over fitting

• Probabilistic

• Seasonality

• High risk—cannot know outcome


Active Review


Q1: How do organizations use business intelligence systems?

Q2: What are the three primary activities in the business

intelligence process?

Q3: How do organizations use data warehouses and data

marts to acquire data?

Q4: How do organizations use typical reporting applications?

Q5: How do organizations use typical data mining

applications?

Q6: What is the role of knowledge management systems?

Q7: What are the alternatives for publishing business

intelligence?

Q8: 2022?

Case Study 9: THL

Leasing camper vehicles has three fundamental

phases:

1. Matching customer requirements with vehicle availability

2. Reserving vehicles and operations support

3. Billing and customer service

• Online Reservation System

• Business Intelligence Information System

• OLAP


Business Process and

Information Systems

Development

by David Kroenke

Using MIS 5e

Chapter 10

“You’re Not Going to Take Your Vera

Wang Gown into a Porta Potty.”

• Bathrooms not cleaned on busy Saturdays

or repaired on weekends

• Plumbing not designed for large crowds

• Didn’t think through consequences of

wedding events business.

Didn’t know how wedding business

would impact everything else.

• Business analyst, Laura, hired to help


Study Questions

Q1: Why do organizations need to manage business processes?

Q2: What are the stages of Business Process Management (BPM)?

Q3: How can BPMN process diagrams help identify and solve process problems?

Q4: Which comes first, business processes or information systems?

Q5: What are systems development activities?

Q6: Why are business processes and systems development difficult and risky?

Q7: What are the keys for successful process and systems development projects?

Q8: 2022?


Q1: Why Do Organizations Need to

Manage Business Processes?

Reasons for change1. Improve process quality

2. Change in technology

3. Change in business fundamentals– Market– Product lines– Supply chain– Company policy– Company organization– Internationalization– Business environment


Why Does This Process Need

Management?


Q2: What Are the Stages of Business

Process Management (BPM)?


Scope of Business Process

Management


Q3: How Can BPMN Process Diagrams Help

Identify and Solve Process Problems?


Documenting the As-Is Business Order

Process: Existing Ordering Process


Check Customer Credit Process


Using Process Diagrams to Identify

Process Problems

Process problems1. Operations Manager allocates inventory to orders

as processed

2. Credit Manager allocates customer credit for orders in process.

– Allocations correct, if order accepted

– If rejected, allocations not freed, inventory still allocated and credit extended for orders not processed

Possible fix: Define an independent process for Reject Order


How Can Business Processes Be

Improved?

1. Add more resources

• Adds costs unless efficiencies of scale

2. Change process structure

• Reduce work and costs

• Increase costs and increase

effectiveness to offset

3. Do both


Revised Order Process


Fox Lake Wedding Planning and

Facilities Maintenance Processes


Q4: Which Comes First, Business

Processes or Information Systems?


Many-to-Many Relationship of Business

Processes and Information Systems


Build Business Processes First


Build Information System First


Classic Five-step Systems Development Life Cycle

Another Factor: Off-the-Shelf Software

If starting with business processes first

– Likely to choose package for processes

being developed, but not later processes

If starting with information systems

– Likely to choose package that works for all

users, but, business processes will get

short shrift.


And the Answer Is . . .

In theory:• Better to start with business processes

• More likely to result in processes and systems that are aligned with the organization’s strategy and direction

• In practice:• Organizations take both approaches

• Off-the-shelf software:

• Start with business processes and select application that works for those processes


Q5 What Are Systems Development

Activities?


Define System Goals and Scope


Focus of Personnel Involved in BPM and

Systems Development


SDLC: Requirements Analysis Phase


SDLC: Component Design Phase


SDLC: Implementation Phase


Conversion

types

1.Pilot

2.Phased

3.Parallel

4.Plunge

Design and Implementation for the Five

Components


SDLC: System Maintenance Phase


Ethics Guide: Estimation Ethics

• Estimating is just “theory.” Average of many

people’s guesses

• Buy-in game

• Projects start with overly optimistic schedules

and cost estimates

• At what point is a buy-in within accepted

boundaries of conduct?


Using MIS InClass 10: Fox Lake

Facilities’ Future

If you were Jeff, what would you do?1. List the criteria that you think Fox Lake should

use in deciding its development strategy.

2. Score Alternatives A–C based on your criteria.

3. Recommend a course of action for Fox Lake to take. Justify your recommendation.

4. Present your recommendation to the rest of the class.


Q6: Why Are Business Processes and

Systems Development Difficult & Risky?


Q7: What Are the Keys for Successful

Process and Systems Development

Projects?

• Create a work-breakdown structure (WBS)

– Break project into smaller tasks until each task is

small enough to estimate and manage

– Every task results in deliverables

• Estimate time and costs

• Create a project plan

• Adjust the plan via trade-offs

• Manage development challenges


Create a Work-Breakdown Structure

(WBS)


Gantt Chart of the WBS for the

Definition Phase of a Project


Create a Project Plan: Gantt Chart with

Assigned Resources & Critical Path


Adjust Plan via Trade-offs


Manage Development Challenges

Critical Factors

1. Coordination

2. Diseconomies of scale

3. Configuration control

4. Unexpected events

5. Team morale


Q8: 2022?

1. Users more knowledgeable and demanding

2. More agile systems using SOA and other

techniques

3. More Cloud-based development

4. Emergence of new software vendor

business models


Active Review

Q1: Why do organizations need to manage business processes?

Q2: What are the stages of Business Process Management (BPM)?

Q3: How can BPMN process diagrams help identify and solve process problems?

Q4: Which comes first, business processes or information systems?

Q5: What are systems development activities?

Q6: Why are business processes and systems development difficult and risky?

Q7: What are the keys for successful process and systems development projects?

Q8: 2022?


Guide: Dealing with Uncertainty

• Critical system project failed

• Had used plunge conversion

• CEO didn’t communicate with IT

• IT personnel no experience in dealing with senior management

• CEO started program to get users closely involved


Case Study 10: Slow Learners, or

What?

35+ years of research on causes of

information systems failures

1. Lack of user involvement.

2. Unclear, incomplete, and inconsistent requirements.

3. Changing requirements and specifications

Many businesses ignore research findings


Information Security

Management

by David Kroenke

Using MIS 5e

Chapter 12

Chapter 12-2

Could Someone Be Getting To Our

Data?

• Stealing only from weddings of club

members

• Knowledge: How to access system and

database and SQL

• Access: Passwords on yellow stickies; many

copies of key to server building

• Suspect: Greens keeper guy’s “a techno-

whiz,” created report for Anne, knows SQL

and how to access database


Chapter 12-3

Study Questions

Q1: What is the goal of information systems

security?

Q2: How should you respond to security threats?

Q3: How should organizations respond to

security threats?

Q4: What technical safeguards are available?

Q5: What data safeguards are available?

Q6: What human safeguards are available?

Q7: 2022?


Chapter 12-4

Q1: What Is the Goal of Information

Systems Security?


Chapter 12-5

Examples of Threat/Loss


Chapter 12-6

Human Error


Chapter 12-7

What Types of Security Loss Exists?

Unauthorized Data Disclosure

• Pretexting

• Phishing

• Spoofing

– IP spoofing

– Email spoofing

• Drive-by sniffers

• Hacking

• Natural disasters


Chapter 12-8

Incorrect Data Modification

• Procedures not followed or incorrectly

designed procedures

• Increasing a customer’s discount or

incorrectly modifying employee’s salary

• Placing incorrect data on company Web site

• Improper internal controls on systems

• System errors

• Faulty recovery actions after a disaster


Chapter 12-9

Faulty Service

• Incorrect data modification

•Systems working incorrectly

•Procedural mistakes

•Programming errors

• IT installation errors

•Usurpation

•Denial of service (unintentional)

•Denial-of-service attacks (intentional)


Chapter 12-10

Loss of Infrastructure

Human accidents

Theft and terrorist events

Disgruntled or terminated employees

Natural disasters


Chapter 12-11

How Big Is the Computer Security

Problem?


Chapter 12-12

Percent of Security Incidents


Chapter 12-13

Goal of Information Systems Security

• Threats can be stopped, or at least threat

loss reduced

• Safeguards are expensive and reduce work

efficiency

• Find trade-off between risk of loss and cost

of safeguards


Chapter 12-14

Using MIS InClass 12: Phishing for Credit

Cards, Identifying Numbers, Bank Accounts

• In this exercise, you and a group of your

fellow students will investigate phishing

attacks.

• Search the Web for phishing, be aware that

your search may bring the attention of an

active phisher.

• Therefore, do not give any data to any site

that you visit as part of this exercise!


Chapter 12-15

Q2: How Should You Respond to

Security Threats?


Chapter 12-16

Q3. How Should Organizations

Respond to Security Threats?

NIST Handbook of Security Elements


Chapter 12-17

What Are the Elements of a Security

Policy?

E l e m e n t s o f

S e c u r i t y P o l i c yM a n a g i n g R i s k s

• Risk — threats &

consequences we

know about

• Uncertainty —

things we do not

know that we do

not know


1. General

statement of

organization’s

security program

2. Issue-specific

policy

3. System-specific

policy

Chapter 12-18

Risk Assessment and Management

Risk Assessment

• Tangible consequences.

• Intangible consequences

• Likelihood

• Probable loss

Risk-Management Decisions

• Given probable loss, what to protect?

• Which safeguards inexpensive and easy?

• Which vulnerabilities expensive to eliminate?

• How to balance cost of safeguards with benefits of

probable loss reduction?


Chapter 12-19

Ethics Guide: Security Privacy

Legal requirements to protect customer data

• Gramm-Leach-Bliley (GLB) Act (1999)

• Privacy Act of 1974

• Health Insurance Portability and

Accountability Act (HIPAA) (1996)

• Privacy Principles of the Australian Privacy

Act of 1988


Chapter 12-20

Ethics Guide: Security Privacy

What requirements does your university have

on data it maintains about you?

• No federal law

• Responsibility to provide public access to

graduation records

• Class work, email, exam answers not

covered under privacy law

• Research covered under copyright law, not

privacy law


Chapter 12-21

Q4: What Technical Safeguards Are

Available?


Chapter 12-22

System Access Protocols

Kerberos

• Single sign-on for multiple systems

• Authenticates users without sending passwords across network.

• “Tickets” enable users to obtain services from multiple networks and servers.

• Windows, Linux, Unix employ Kerberos

Wireless Access

• VPNs and special security servers

• WEP (Wired-Equivalent Privacy)

• WPA, WPA2 (WiFI Protected Access)


Chapter 12-23

Basic Encryption Techniques


Chapter 12-24

Essence of HTTPS (SSL or TLS)


Chapter 12-25

Malware Types and Spyware and

Adware Symptoms

• Viruses

Payload

Trojan horses

Worms

Beacons


Spyware & Adware Symptoms

Chapter 12-26

Malware Safeguards

1. Antivirus and antispyware programs

2. Scan frequently

3. Update malware definitions

4. Open email attachments only from known

sources

5. Install software updates

6. Browse only reputable Internet

neighborhoods


Chapter 12-27

Bots, Botnets, and Bot Herders

• Bot

Surreptitiously installed, takes actions

unknown and uncontrolled by user

Some very malicious, others annoying

•Botnet

Network of bots

Bot herder

Serious problems for commerce and

national security


Chapter 12-28

Q5: What Data Safeguards Are

Available?


Chapter 12-29

Q6: What Human Safeguards Are

Available?

In-house

Staff


Chapter 12-30

Human Safeguards for Nonemployee

Personnel

• Nonemployee personnel

Least privileged accounts

•Contract personnel

Specify security responsibilities

•Public Users

Hardening site


Chapter 12-31

Account Administration

• Account Management

Standards for new user accounts,

modification of account permissions,

removal of unneeded accounts.

• Password Management

Users should change passwords

frequently

• Help Desk Policies


Chapter 12-32

Sample Account Acknowledgment Form


Chapter 12-33

Systems Procedures


Chapter 12-34

Security Monitoring Functions

• Activity log analyses

Firewall, DBMS, Web server

• In-house and external Security testing

Investigation of incidents

Create “honeypots”


Chapter 12-35

Responding to Security Incidents

• Human error & Computer crimes

Procedures for how to respond to security

problems, whom to contact, data to

gather, and steps to reduce further loss

• Centralized reporting of all security incidents

• Incident-response plan

• Emergency procedures


Chapter 12-36

Disaster Preparedness Tasks


Chapter 12-37

Q7: 2022?

• Challenges likely to be iOS and other

intelligent portable devices

• Harder for the lone hacker to find

vulnerability to exploit

• Continued investment in safeguards

• Continued problem of electronically porous

national borders


Chapter 12-38

Active Review

Q1: What is the goal of information systems

security?

Q2: How should you respond to security threats?

Q3: How should organizations respond to

security threats?

Q4: What technical safeguards are available?

Q5: What data safeguards are available?

Q6: What human safeguards are available?

Q7: 2022?


Chapter 12-39

Guide: Security Assurance, Hah!

• Employees who never change password or

use some simpleton word like “Sesame” or

“MyDogSpot” or something equally absurd

• Notes with passwords in top drawer of

desks

• Management talks about security risk

assurance and should enforce real security


Chapter 12-40

Guide: The Final, Final Word

• Routine work will migrate to lower-labor-cost

countries

• Be a symbolic-analytic worker

Abstract thinking

How to experiment

Systems thinking

Collaboration


Chapter 12-41

Case 12:

Moore’s Law, One More Time …

• Doubling CPU speed helps criminals

Enables more powerful password

crackers

• iOS, Android phones, and millions of mobile

devices increase data communications and

exponential opportunities for computer

criminals.


Chapter 12-42


using mis 5e ch. 6-10 & 12 review

Documents