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This is a combination of review material for chapters 6-10 and 12 of the Using MIS 5th edition textbook.
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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
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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?
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Q1: What Is a Computer Network?
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Q2: What Are the Components of a
LAN?
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SOHO
LAN
LAN Protocol
IEEE 802.3
• Wired LAN
• 10/100/1000 Mbps
• Ethernet
IEEEE 802.11
• Wireless LAN
• 802.11n
• Bluetooth
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Summary of LAN and WAN Networks
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Connecting to an ISP
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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
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Q3: What Are the Fundamental Concepts
You Should Know About the Internet?
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P r e n t i c e H a l l
TCP/IP Protocol Architecture
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Application Layer Protocols
Hyper Text Transport Protocol (http)
HTTPS - secure HTTP data transmission
Simple Mail Transfer Protocol (SMTP )
File Transfer Protocol (ftp)
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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
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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.
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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 …
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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)
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Remote Access Using VPN
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WAN Using VPN
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Q4: What Processing Occurs on a
Typical Web Server?
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Watch the Three Tiers in Action!
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Hypertext Markup Language (HTML)
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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
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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.
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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
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Why Is the Cloud Preferred to In-House
Hosting?
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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)
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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
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Q6. How Can Organizations Use the
Cloud?
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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
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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
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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
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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
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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?
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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
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Azure
Standard
Rates
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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
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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?
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Q1: What Are the Basic Types of
Structured Processes?
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How Do Structured Processes Differ
from Dynamic Processes?
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Common Departmental Information
Systems
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How Do Structured Processes Vary by
Scope?
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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
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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
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Fox Lake Country Club Departmental
Goals
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Islands of Automation
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Examples of Islands of Automation at a
Hospital
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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
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What Problems Do Information Silos
Cause?
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How Do Enterprise Information Systems
Eliminate Silos?
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An Enterprise System for Patient
Discharge
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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.
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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
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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)
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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
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Four Phases of Customer Life Cycle
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CRM Applications
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Enterprise Resource Planning (ERP)
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Pre-ERP Information System: Bicycle
Manufacturer
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ERP Information System
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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.
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EAI Automatically Makes Data
Conversions Among Different Systems
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“Virtual Integrated Database”
Using MIS InClass 7: Improving the
Process of Making Paper Airplanes
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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
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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
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SAP Ordering Business Process
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Inherent Processes: SAP Ordering
Business Process (cont’d)
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What Companies Are the Major ERP
Vendors?
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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
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Q7. How Will Service-Oriented Architecture
Impact Enterprise Information Systems?
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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
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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
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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
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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?
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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?
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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.
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Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall
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
User-generated content is double-edged
sword
Deleting critical feedback problematic
Critical comments result from process
problems
Learn to deal with negative feedback
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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?
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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
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SMIS: Convergence of Disciplines
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SMIS Organizational Roles
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Community/Social Media Site
Relationship
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Social Media Sponsors
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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
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Five Components of SMIS
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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
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SM in the Value Chain Activities
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Social Media and Manufacturing and
Operations
• Crowdsourcing
• Enterprise 2.0
• Folksonomy
• SLATES
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McAffee's SLATES Enterprise 2.0 Model
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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
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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
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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.
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Using Social Networking to Increase the
Number of Relationships
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Q4: What Roles Do SMIS Play in Hyper-social
Organization?
Four Pillars of Hyper-Social Organizations
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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
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SEAMS Dynamic Process Activities
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SMIS and SEAMS Activities
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Q4: How Do Organizations Use Web
2.0?
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Testing of New Features, Web 2.0 Style
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In the Web 2.0 World
• No traditional marketing viral marketing
• Use increases value
• Organic user interfaces and mashups
• Participation and ownership differences
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How Can Businesses Benefit from Web
2.0?
• Advertising
Adwords and Adsense
• Mashups
Mashing content of multiple products
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Example of a Mashup
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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?
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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.
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Intel’s Rules of Social Media
Engagement
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Managing the Risk of User Generated
Content (UGC)
Major sources of UGC problems:
• Junk and crackpot contributions
• Inappropriate content
• Unfavorable reviews
• Mutinous movements
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Responding to Social Networking
Problems
• Leave it
• Respond to it
• Delete it
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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
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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
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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
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Active Review
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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.
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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
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Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall
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
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Study Questions
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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?
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Example Uses of Business Intelligence
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Q2: What Are the Three Primary Activities
in the Business Intelligence Process?
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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
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Tables Used for BI Analysis at GearUp
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GearUp Analysis: Item Summary and
Lost Sales Summary Reports
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Short and Damaged Shipments Details
Report
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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
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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
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Components of a Data Warehouse
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Examples of Consumer Data that Can
Be Purchased
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Possible Problems with Operational
Data
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Data Warehouses vs. Data Marts
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Q4 How Do Organizations Use Typical
Reporting Applications
Basic operations:
1. Sorting
2. Filtering
3. Grouping
4. Calculating
5. Formatting
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Example RFM Scores
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Example of Drilling Down into Expanded
Grocery Sales OLAP Report
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Figure 9-17
Drilling Down to Expanded Grocery
Store Sales
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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.
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Q5 How Do Organizations Use Typical
Data-mining Applications?
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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
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Neural Networks
• Used for predicting values and making
classifications
• Complicated set of nonlinear equations
• Go to http://kdnuggets.com and search for
“neural network”
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Market Basket Analysis at a Dive Shop
(Transactions = 400)
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Decision Tree Example for MIS Classes
(hypothetical data)
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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.
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Credit Score Decision Tree
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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
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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.
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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
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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
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Expert System for Pharmacies
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Q7 What Are the Alternatives for
Publishing Business Intelligence?
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Components of a Generic Business
Intelligence System
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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?
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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?
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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
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Active Review
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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
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Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall
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
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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?
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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
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Why Does This Process Need
Management?
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Q2: What Are the Stages of Business
Process Management (BPM)?
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Scope of Business Process
Management
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Q3: How Can BPMN Process Diagrams Help
Identify and Solve Process Problems?
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Documenting the As-Is Business Order
Process: Existing Ordering Process
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Check Customer Credit Process
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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
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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
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Revised Order Process
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Fox Lake Wedding Planning and
Facilities Maintenance Processes
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Q4: Which Comes First, Business
Processes or Information Systems?
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Many-to-Many Relationship of Business
Processes and Information Systems
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Build Business Processes First
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Build Information System First
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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.
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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
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Q5 What Are Systems Development
Activities?
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Define System Goals and Scope
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Focus of Personnel Involved in BPM and
Systems Development
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SDLC: Requirements Analysis Phase
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SDLC: Component Design Phase
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SDLC: Implementation Phase
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Conversion
types
1.Pilot
2.Phased
3.Parallel
4.Plunge
Design and Implementation for the Five
Components
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SDLC: System Maintenance Phase
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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?
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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.
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Q6: Why Are Business Processes and
Systems Development Difficult & Risky?
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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
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Create a Work-Breakdown Structure
(WBS)
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Gantt Chart of the WBS for the
Definition Phase of a Project
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Create a Project Plan: Gantt Chart with
Assigned Resources & Critical Path
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Adjust Plan via Trade-offs
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Manage Development Challenges
Critical Factors
1. Coordination
2. Diseconomies of scale
3. Configuration control
4. Unexpected events
5. Team morale
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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
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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?
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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
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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
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Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall
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
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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?
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Chapter 12-4
Q1: What Is the Goal of Information
Systems Security?
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Chapter 12-5
Examples of Threat/Loss
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Chapter 12-6
Human Error
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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
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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
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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)
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Chapter 12-10
Loss of Infrastructure
Human accidents
Theft and terrorist events
Disgruntled or terminated employees
Natural disasters
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Chapter 12-11
How Big Is the Computer Security
Problem?
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Chapter 12-12
Percent of Security Incidents
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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
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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!
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Chapter 12-15
Q2: How Should You Respond to
Security Threats?
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Chapter 12-16
Q3. How Should Organizations
Respond to Security Threats?
NIST Handbook of Security Elements
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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
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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?
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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
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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
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Chapter 12-21
Q4: What Technical Safeguards Are
Available?
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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)
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Chapter 12-23
Basic Encryption Techniques
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Chapter 12-24
Essence of HTTPS (SSL or TLS)
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Chapter 12-25
Malware Types and Spyware and
Adware Symptoms
• Viruses
Payload
Trojan horses
Worms
Beacons
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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
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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
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Chapter 12-28
Q5: What Data Safeguards Are
Available?
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Chapter 12-29
Q6: What Human Safeguards Are
Available?
In-house
Staff
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Chapter 12-30
Human Safeguards for Nonemployee
Personnel
• Nonemployee personnel
Least privileged accounts
•Contract personnel
Specify security responsibilities
•Public Users
Hardening site
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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
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Chapter 12-32
Sample Account Acknowledgment Form
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Chapter 12-33
Systems Procedures
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Chapter 12-34
Security Monitoring Functions
• Activity log analyses
Firewall, DBMS, Web server
• In-house and external Security testing
Investigation of incidents
Create “honeypots”
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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
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Chapter 12-36
Disaster Preparedness Tasks
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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
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
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?
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
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
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
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
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
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.
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
Chapter 12-42
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