T1 Figure 1-4 Contemporary approaches to information systems Technical Approaches Computer Science Operations Research Management Science MIS Sociology Psychology Economics Behavioral Approaches

T2 Figure 1.6 Interdependence between organizations & information systems Hardware Business Strategy Rules Procedures Software Database Tele- communications Organization Information System Color Transparencies Managemen Information Systems, 6E Kenneth C. Laudon, Jane P. Laudon ©2000 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Ostrożnie z prognozami: „Wiek XXI będzie inny niż jego liczne teraz przewidywania, wysadzane klejnotami dziwacznych pomysłów” [Stanisław Lem w Bombie megabitowej]

T3 Figure 1.7 The widening scope of information systems Technical Changes Managerial Control Institutional Core Activities Time 1950s 1960s 1970s 1980s 1990s

T4 Figure 1.9 A virtual organization CORE COMPANY Design Company Manufactoring Company Sales and Marketing Company Logistics Company Finance Company

ELECTRONIC BUSINESS ELECTRONIC COMMERCE T5 Figure 1.11 Electronic commerce and electronic business in the networked enterprise Factories Just-in-time production Continious inventory replenishment Production planning Business partners Joint design Outsourcing Remote officies and work groups Communicate plans and policies Group collaboration Electronic communication Scheduling The Firm ELECTRONIC BUSINESS ELECTRONIC COMMERCE Suppliers Procurement Supply chain management Customers On-line marketing On-line sales Built-to-order products Customer service Sales force automation

T6 Figure 1.12 The information architecture of the firm Coordination INFORMATION ARCHITECTURE OF THE ORGANIZATION Strategic Systems Management Systems Functional Business Applications Knowledge Systems Operational Systems Sales and Marketing Manufacturing Finance Accounting Human Resources Data and Storage Technology IT Infrastructure Hardware Software Networks

T7 Figure 2.1 Types of information systems KIND OF INFORMATION SYSTEM GROUPS SERVED Sales and Marketing Manufacturing Finance Accounting Human Resources Strategic Level Senior Managers Management Level Middle Managers Knowledge Level Knowledge and Data Workers Operational Managers Operational Level

T8 Figure 2.2 The six major types of information systems TYPES OF SYSTEMS Strategic-Level Systems Executive Support Systems (ESS) 5-year sales trend forecasting 5-year operating plan 5-year budget forecasting Profit plannig Manpower planning Management-Level Systems Management Information Systems (MIS) Decision- Support Systems (DSS) Sales managemnt Inventory control Annual budgeting Capital investment analysis Relocation analysis Sales region analysis Production scheduling Contract cost analysis Pricing/profitability analysis Cost analysis Knowledge-Level Systems Knowledge Work Systems (KWS) Office Automation Systems (OAS) Enginneering workstations Graphics workstations Managerial workstations Word processing Electronic calendars Document imaging Operational-Level Systems Order tracking Compensation Training & development Emplyee record keeping Machine control Plant scheduling Material Movement control Payroll Accounts payable Accounts receivable Order processing Cash management Securities trading Transaction Processing Systems (TPS) Sales and Marketing Manufacturing Finance Accounting Human Resources

T8 Table 2.1 Characteristics of Information Processing Systems Type of System Information Inputs Aggregate date; external, internal Low-volume data or massive databases optimized for data analysis; analytic models and data analysis tools Summary transaction data; high-volume data; simple models Design specifications; knowledge base Documents; schedules Transactions; events Processing Graphics; simulations; interactive Interactive; simulations, analysis Routine reports; simple models; low-level analysis Modeling; simulations Document manage-ment; scheduling; communication Sorting; listing; merging; updating Information Outputs Projections; responses to queries Special reports; decision analyses; responses to queries Summary and exception reports Models; graphics Documents; schedules; mail Detailed reports; lists; summaries Users Middle managers Operations personnel; supervisors Professionals; staff managers Senior managers Professionals; technical staff Clerical workers ESS DSS MIS KWS OAS TPS

T10 Figure 2.6 How management information systems obtain their data Transaction Processing Systems Management Information Systems Order processing systems Materials resource planning system General ledger system Order file Production master file Accountig files Reports Managers MIS FILES Sales data Unit product cost data Produkt change data Expense data MIS

T11 Figure 2.10 Interrelationships among systems Executive support systems (ESS) Management systems (MIS) Management systems (DSS) Knowledge systems (KWS and OAS) Transaction processing systems (TPS)

T12 Figure 2.13 Business-level strategy Business-Level Strtegy Vendors Customers The Business Firm Stockless inventory Continuous replenishment Just-in-time delivery Supply Chain Management Product differentiation (IT products) Focused differentition (Datamining) Low-cost producer Intra Firm Strategy Point-of-sale systems Datamining Efficient Customer Response

T13 Figure 2.14 The competitive forces model Substitute products and services New market entrants Traditional competitors The firm Suppliers Customers

Information Technology T14 Figure 3.1 The two-way relationship between organizations and information technology Mediating Factors Environment Culture Structure Standard Procedures Business Processes Politics Management Decisions Chance Information Technology Organizations

T15 Figure 3.2 The technical microeconomic definition of the organization Inputs from the environment Outputs to the environment Production process (B) Labor Capital K1 K2 L2 L1 Q

The Organization and Its Environment T16 Figure 3.4 Environments and organizations have a reciprocal relationship The Organization and Its Environment Environmental Resources and Constrains Information Systems The Firm Governments Competitors Customers Financial Institutions Culture Knowledge Technology

T17 Figure 3.9 The systems development process EXTERNAL INTERNAL Institutional factors Values Norms Interests Environmental factors Uncertainties Opportunities System development Adoption Utilization Management

T18 Figure 3.13 Organisational resistance Task Technology People Structure

T19 Figure 4.1 The Evolution of Management Theory Technical-Rational Reengineering Value chain analysis Total Quality Management Administrative/Bureaucratic School Scientific Management Sensemaking Classical Contemporary Postmodern 1880 1900 1920 1940 1960 1980 2000 The learning organization Structuration theory Human Relations User acceptance Systems Structural Cognitive Strategic IS Behavioral Knowledge-based firms Network organizations Virtual organizations Datamining Organizational knowledge

T20 Figure 4.3 The Knowledge-Based View of the Firm Information Chaos Environment Information-and-knowledge processing structures Existing stock of explicit organizational information and knowledge Organizational knowledge base: routines, structures, alliances, behavior Tacit information and knowledge; Know-how + = ACTIONS Consequences Origins Learning Utilization THE ORGANIZATION

ORGANIZATIONAL LEVEL TYPE OF DECISION T21 Fiugre 4.4 Diffrent kinds of information systems at the various organizational levels ORGANIZATIONAL LEVEL TYPE OF DECISION Operational Knowledge Management Strategic Structured Accounts receivable TPS Product design KWS Electronic scheduling OAS Production cost overruns Budget preparation MIS Production facility location DSS New products New markets ESS Project scheduling Semi- structured Unstructuredl TPS = Transaction processing system OAS = Office automation system KWS = Knowledge work system ESS = Executive support system DSS = Decision-support system MIS Management information system Key:

T22 Figure 4.5 The Decision-making Process Is the choice working? Implementation Which should you choose? Choice What are the alternatives? Design Is there a problem? Intelligence

T23 Tabele 4.3 Models of Organizational Decision Making Rational actor Comprehensive rationality Organizations select goals, examine all alternatives and consequences, and then choose a policy that maximizes the goal or preference function. Bureacratic Organizational output Standard operating procedures Goals are determined by resource constrains and existing human and capital resources; SOPs are combined into programs, and programs into repertoires; these determine what policies will be chosen. The primary purpose of the organization is to survive; uncertainty reduction is the principal goal. Policies are chosen that are incrementally different from the past Political Political outcome Organizational decisions result from political competition; key players are involved in a game of influence, bargaining, and power. Organizational outcomes are determined by the beliefs and goals of players, their skills in playing the games, the resources they bring to bear, and the limits on their attention and power. Garbage can Nonadaptative organizational program Most organizations are nonadaptative, temprary, and disappear over time. Organizational decizions result from interactions among streams of problems, potential actions, participants, and chance. Name Basic Concept Inference Pattern

T24 Figure 5.1 The relationship between ethical, social, and political issues in an information society Information Rights and Obligations Property Rights and Obligations Political Issues Social Issues Ethical Issues Information Technology and Systems Accountability and Control System Quality Indyvidual Society Polity Quality of Life

T25 Table 5.2 Federal privacy laws in the United States 1. General Federal Privacy Laws Freedom of Information act, 1968 as Amended (5 USC 552) Privacy Act of 1974 as Amended (5 USC 552a) Electronic Communications Privacy Act of 1986 Computer Matching and Privacy Protection Act of 1988 Computer Security Act of 1987 Federal Managers Financial Integrity Act of 1982 2. Privacy Laws Affecting Private Institutions Fair Credit Reporting Act of 1970 Family Educational Rights and Privacy Act of 1978 Right to Financial Privacy Act of 1978 Privacy Protection Act of 1980 Cable Communications Policy Act of 1984 Electronic Communications Privacy Act of 1986 Video Privacy Protection Act of 1988

T26 Figure 5.2 Who owns the pieces? LOGO Artists, design firm, or Web site publisher TEXTUAL CONTENT Writer or newspaper publisher ARTICLE EXCERPT Writer or newspaper publisher BUSINESS Stock exchanges, write service, or database publischer COLUMN Writer, syndication service, or newspaper publisher PHOTOGRAPH Freelance photographer, wire service, photo agency, photo library, or newspaper publisher

T27 Table 5.4 Internet crime and abuse Problem Description Hacking Hackers exploit weaknesses in Web site security to obtain access to proprietary data such as customer information and passwords. They may use „Trojan horses” posing as legitimate software to obtain information from the host computer. Jammers use software routines to tie up the computer hosting a Web site so that legitimate visitors can’t access the site. Jamming Malicious software Cyber vandals use data flowing through the Internet to transmit computer viruses, which can disable computers that they „infect” (see Chapter 16) Sniffing Sniffing is a form of electronic eavesdropping by placing a piece of software to intercept information passing from a user to the computer hosting a Web site. This information can include credit card numbers and other confidental data. Spoofing Spoofers fraudulently misrepresent themselves as other organizations, setting up false Web sites where they can collect confidential information from unsuspecting visitors to the site

T28 Figure 6.1 Hardware components of a computer system Central Procesing Unit (CPU) Arithmetic-Logic Unit Control Unit Input Devices Keyboard Computer mouse Touch screen Source data automation Secondary Storage Magnetic disk Optical disk Magnetic tape Buses Output Devices Printers Video Display terminals Plotters Audio output Communication Devices Primary Storage

T29 Table 6.1 Examples of ASCII and EBCDIC Codes Character or Number ASCII-8 Binary EBCDIC Binary A 01000001 11000001 E 01000101 11000101 Z 01011010 11101001 00110000 11110000 1 00110001 11110001 5 00110101 11110101

T30 Table 6.2 Time and Size in the Computer World Milisecond 1/1000 second Microsecond 1/1,000,000 second Nanosecond 1/1,000,000,000 second Picosecond 1/1,000,000,000,000 second Storage Capacity Byte String of eight bits Kilobyte 1000 bytesa Megabyte 1,000,000 bytes Gigabyte 1,000,000,000 bytes Terabyte 1,000,000,000,000 bytes a Actually 1024 storage positions

T31 Figure 6.4 The CPU and primary storage Central Processing Unit (CPU) Primary Storage 1 Arithmetic-Logic Unit 8 22 + 11 = 33 9 < 10 T # Primary storage address U 4 Control Unit Data Bus Address Bus Control Bus Input Devices Output Devices Secondary Storage

T32 Figure 6.9 Types of client/server computing Data Logic Interface SERVER Data Logic Interface CLIENT

T33 Figure 6.10 Disk pack storage 11 disks 20 recording surfaces 3500 RPMs Read/write heads ”fly” over disk surfaces

T34 Figure 7.1 The major types of software SYSTEM SOFTWARE Operating System Schedules computer events Allocates computer resources Monitors events Application software System software Language Translators Interpreters Compilers Hardware APPLICATION SOFTWARE Utility Programs Routine operations (e.g., sort, list, print) Manage data (e.g., create files, merge files) Programming languages Assembly language FORTRAN COBOL BASIC PASCAL C 4th-generation” languages and PC software tools Users

T35 Figure 7.2 Single-program execution versus multiprogramming Traditional system with no multiprogramming Multiprogramming environment Program 1 Operating system Operating system Program 1 Program 2 Program 3 Unused memory Unused memory Unused memory

T36 Figure 7.4 The language translation process Other object code modules Source code program Object code Linkage editor Load module Compiler

T37 Figure 7.9 Fourth-generation languages Oriented toward end users Oriented toward IS professionals Query languages/ report generators Graphic languages Application generators Application software packages Very high-level programming languages PC tools Lotus 1-2-3 WordPerfect Internet Explorer Access SQL RPG-III Systat SAS Graph FOCUS Natural Power Builder Microsoft FrontPage AVP Sales/Use Tax People Soft HRMS SAP R/3 APL Nomad2

T38 Figure 7.13 Class, subclasses, inheritance, and overriding Employee (Class) Name ID (Class variables) Pay (Methods) Nonsalaried (subclass of Employee) Salaried (subclass of Employee) Name ID Name ID Hourly rate Base pay Pay Pay - OVERRIDE Temporary (subclass of Nonsalaried) Permanent (subclass of Nonsalaried) Name ID Name ID Hours Hours Overtime Pay - OVERRIDE Pay - OVERRIDE

T39 Figure 8.1 The data hierarchy Example Hierarchy Student Database Course File Financial File Database Personal History File Course File NAME COURSE DATE GRADE John Stewart Karen Taylor Emily Vincent IS 101 IS 101 IS 101 F99 F99 F99 B+ A C File NAME COURSE DATE GRADE Record John Stewart IS 101 F99 B+ Field John Stewart (Name field) Byte 01001010 (Letter J in ASCII) Bit

T40 Figure 8.5 Traditional file processing Master file Data elements A to Z Derivative files Application program 1 A B C D Users ACCOUNTING Application program 2 A B D E Users FINANCE Application program 3 Users A B E G SALES AND MARKETING Application program 4 Users A E F G MANUFACTURING

T41 Figure 8.6 The contemporary data environment INTEGRATED HUMAN RESOURCES DATABASE Employees Name Address Social security number Position Marital status Personnel application programs Personnel department Payroll Hours worked Pay rate Gross pay Fed tax State tax Net pay Database management system Payroll application programs Payroll department Benefits application programs Benefits Life insurance Pension plan Health care plan Retirement benefit Benefits department

T42 Figure 8.10 A hierarchcal database for a human resources system ROOT Employee FIRST CHILD Compensation Job Assignments Benefits SECOND CHILD Performance Ratings Salary History Pension Life insurance Health

T43 Figure 8.11 The network data model Course 1 Course 2 Course 3 Student 1 Student 2 Student 3 Student 4 Student 5

T44 Figure 8.12 The relational data model Table (Relation) Columns (Field) ORDER- NUMBER ORDER- DATE DELIVERY- DATE PART- NUMBER PART- AMOUNT ORDER- TOTAL ORDER 1634 02/02/99 02/22/99 152 2 144.50 Rows (Records, Tuples) 1635 02/12/99 02/29/99 137 3 79.70 1636 02/13/99 03/01/99 145 1 24.30 PART- NUMBER PART- DESCRIPTION UNIT- PRICE SUPPLIER- NUMBER PART 137 Door latch 26.25 4058 145 Door handle 22.50 2038 152 Compressor 70.00 1125 SUPPLIER- NUMBER SUPPLIER- NAME SUPPLIER- ADDRESS SUPPLIER 1125 CBM inc. 44 Winslow, Gary IN 44950 2038 Ace Inc. Rte. 101, Essex NJ 07763 4058 Bryant Corp. 51 Elm, Rochester NY 11349

T45 Figure 9.1 Components of a telecommunications system Communications channels Minicomputer Terminals Host computer Front-end processor Multiplexer Modems Remote Installation Modem Multiplexer Terminals

T46 Figure 9.3 Frequency ranges for communications media devices Radio Wave Microwave Infra- red Visible Light Ultra- violet X-Ray Gamma and Cosmic 105 108 1010 1012 1013 1014 1015 1016 1017 1018 1019 1020 1022 UHF- TV AM Radio Cellular phones Radar Microwave Satellite Remote Controls Short- Wave Radio RAM Mobile Data FM Radio and VHF-TV Cordless Phones Wireless Paging Fiber Optics PCS Industrial

T47 Figure 9.5 A star network topology Terminal 1 Computer 1 Computer 2 Computer 3 Host CPU Terminal 2 Terminal 3 Printer

T48 Figure 9.6 A bus network topology Computer 1 Computer 3 Printer Computer 4 Terminal Computer 2

T49 Figure 9.7 A ring network topolgy Computer 1 Computer 2 Computer 5 Computer 3 Printer Hard disk drive Computer 4

T50 Figure 9.12 Electronic data interchange SELLER CUSTOMER Purchase orders Payments Shipping notices Computer Computer Price updates Invoices

T51 Table 10.1 Major internet capabilities Capability Functions Supported E-mail Usenet newsgroups LISTSERVs Chatting Telnet FTP Gophers World Wide Web Perso-to-person messaging; document sharing Discussion groups on electronic bulletin boards Discussion groups using e-mail mailing list servers Interactive conversations Log on to one computer system and do work on another Transfer files from computer to computer Locate information using a hierarchy of menus Retrieve, format, and display information (including text, audio, graphics, and video) using hypertext links

T52 Figure 10.5 Model of an extranet Customer Data- bases Client Customer Client Internet Server Firewall Client Supplier Client Business partner

T53 Table 10.3 Internet business models Category Description Examples Virtual Storefront Sells physical goods or services on-line instead of through a physical storefront or retail outlet Delivery of nondigital goods and services takes place through traditional means Amazon.com Network Bank Marketplace Concentrator Concentrates information about products and services from multiple providers at one central point. Purchasers can search, comparisonshop, and sometimes complete the sales transaction Internet Mall InsureMarket Information Brokers Provide product, pricing, and availability information. Some facilitate transactions, but their main value is the information they provide. Travelocity Auto-by-Tel Transaction Brokers Buyers can view rates and terms, but the primary business activity is to complete the transaction E*Trade Electronic Clearinghouses Provide auction-like settings for products where price and availability are costantly changing, sometimes in response to customer actions Bid.com OnSale Reverse Auction Consumers submit a bid to multiple sellers to buy goods or services at a buyer-specified price Priceline.com Digital Product Delivery Sells and delivers software, multimedia, and other digital products over the internet PhotoDisc Content Provider Creates revenue by providing content. The customer may pay to access the content, or revenue may be generated by selling advertising space or by having advertisers [pay for placement in an organized listing in a searchable database. Wall Street Journal Interactive On-line Service Provider Provides service and support for hardware and software users. Cyber Media

T54 Figure 10.6 The benefits of disintermediation to the customer Cost/ Sweater Manufacturer Distributor Retailer Customer $48.50 Retailer Manufacturer Customer $40.34 Customer Manufacturer $20.45

T55 Figure 10.9 Intranet linking supply chain functions Maketing and sales Production planning Procurement Customer service Intranet Accounting and finance Inventory Customers Shipping and distribution Production and manufacturing

T56 Table 11.1 Information systems plan Purpose of the Plan Overview of plan cntents Changes in firm’s current situation Firm’s strategic plan Current business organization Management strategy 4. 6. New Developments New system projects Project descriptions Business rationale New capabilities required Hardware Software Database Telecommunications Implementation plan Anticipated difficulties in implementatinon Progress reports 7. 2. Strategic Business Plan Current situation Current business organization Changing environments Major goals of the business plan Budget Requirements Requirements Potential savings Financing Acquisition cycle 5. Management strategy Aquisition plans Milestones and timing Organizational realignment Internal reorganization Management controls Major training initiatives Personnel strategy 3. Current systems Major systems supporting business functions Major current capabilities Hardware Software Database Telecommunications Dificulties meeting business requirements Anticipated future demands

T57 Figure 11.2 Using CSFs to develop systems Manager A CSFs Manager B CSFs Manager C CSFs Manager D CSFs Aggregate + analyze indyvidual CSFs Develop agreement on company CSFs Define company CSFs Define DSS and databases Use CSFs to develop information systems priorities

T58 Figure 11.3 Organizational change carries risks and rewards Paradigm Shifts High Reengineering Risk Rationalization Low Automation Low High Return

T59 Table 11.5 New process design options with information technology Assumption Technology Option Examples Field personnel need offices to receive, store and transmit information Wireless communication Personnel can send and receive information wherever they are. Manitoba Insurance Price Waterhouse Information can appear only in one place at one time Shared databases People can collaborate on the same project from scattered locations; information can be used simultaneously wherever it is needed U.S. West Banc One United Parcel Service Schneider National People are needed to ascertain where things are located Automatic identification and tracking technology Things can tell people where they are Businesses need reserve inventory to prevent stockouts Communications networks and EDI Just-in-time delivery and stockless supply Wal-Mart Baxter International

T60 Figure 11.5 The system developmeny process System Analysis Production and Maintenance Organization System design Conversion Programming Testing

T61 Figure 12.1 The lifecycle methodology for system development STAGES END PRODUCTS Project definition Project proposal report System study System proposal report Design specifications Design Programming Program specifications - code Installation System performance tests Post- implementation Post-implementation audit OPERATIONS Milestone 1 Project initiation Milestone 2 Design solutin decision Milestone 3 Design specification sign-off Milestone 4 Produstion decision Year 1 Year 2 3-8 Year Life Span

T62 Figure 12.2 The prototyping process Identify basic requirements Step 1 Develop a working prototype Step 2 Use the prototype Step 3 YES User satisfied? NO Revise and enhance the prototype Operational prototype Step 4

T63 Figure 12.7 High-level structure chart for a payroll system Payroll process Get valid inputs Calculate pay Write outputs Update master file Write checks, reports, and output files Get inputs Validate inputs Calculate gross pay Calculate net pay

T64 Figure 12.8 Basic control constructs Sequence Action A Action B B F T Selection IF condition R Action C ELSE Action D ENDIF R C D Iteration DO WHILE Condition S Action E ENDDO E S T

T65 Figure 12.10 System flowchart for a payroll system Time cards Human resources data Payroll master file Load and validate Valid transactions Payroll master file Compute and update Payroll reports and checks Direct deposit tape General ledger file Updated payroll master file

T66 Figure 13.1 Information system problem areas Design Operations Information system Data Cost

IMPLEMENTATION STAGES T67 Figure 13.3 Approaches and implementation stages in the implementation literature APPROACHES IMPLEMENTATION STAGES Adoption Management Routinization Actors’ roles XXXX XXXX Strategy XXXX Organizational factors XXXX XXXX

T68 Table 13.1 Actions and indications for succesful system Support by local funds New organizational arrangements Stable supply and maintenance New personnel classifications Changes in organizational authority Internalization of the training program Continual updating of the system Promotion of key personnel Survival of the system after turnover of its originators Attainment of widespread use Source: Yin (1981)

T69 Figure 13.5 Factors in information system success or failure User involvement and influence IMPLEMENTATION OUTCOME Management support Design Cost Operations Data Level of complexity/risk Management of implementation process

T70 Table 13.4 Strategies to manage projects by controlling risk Project Structure Project Technology Level Project Size Degree of Risk Project Management Tool 1. High Low Large Low High use of formal planning High use of formal control 2. High Low Small Very Low High use of formal control Medium use of formal planning 3. High High Large Medium Medium use of formal control Medium use of formal planning 4. High High Small Medium Low High internal integration 5. Low Low Large Low High external integration High use of formal planning High use of formal control 6. Low Low Small Very Low High external integration High use of formal control 7. Low High Large Very High High external integration High internal integration 8. Low High Small High High external integration High internal integration

Capture and Codify Knowledge T71 Figur 14.1 A number of contemporary information systems are designed to give close-in support to info workers Share Knowledge Distribute Knowledge Office Automation Systems Word Processing Desktop Publishing Imaging and Web Publishing Electronic Calendaars Desktop Databases Group Collaboration Systems Groupware Intranets Artificial Intelligence Systems Expert Systems Neural Nets Fuzzy Logic Genetic Algorithms Intelligent Agents Knowledge Work Systems CAD Virtual Reality Investment Workstations Capture and Codify Knowledge Create Knowledge

T72 Figure 14.3 Web publishing and document management Text indexing and searching Author Web Page Edit and Review Web Server E-mail links Links to other Web pages

T73 Figure 14.5 The arificial intelligence family Artificial Intelligence Natural Language Perceptive Systems Expert Systems ”Intelligent” Machines Robotics

T74 Figure 14.9 How case-based reasoning works 1. User describes the problem 2. System searches database for similar cases System asks user additional questions to narrow the search Case database 3. System finds closest fit and retrieves solution 4. System stores problem and successful solution in the database 5. 6. System modifies the solution to better fit the problem NO YES Successful?

T75 Table 14.4 Examples of intelligent agents for electronic commerce Agent Product Description Vendor Firefly Helps users find music or films of interest. Users send critiques of movies and music to the Firefly Web site. When they want to select a new movie to see or a CD to buy, they supply data on their personal favourites, and Firefly will produce a list of similar items based on the critiques. The service is being extended to books, restaurants, and mutual funds. Agents Inc. BargainFinder and LifestyleFinder BargainFinder does real-time comparison shopping among on-line participa-ting CD music stores and returns the names of vendors that offer the lowest price. LifestyleFinder recommends Web sites to users based on information they provide about their lifestyles Andersen Consulting Jango Automatically consults Web sites and prepares reports to users on prices and other features of products such as books, clothing, wine and PCs Excite Smart NewsReader Windows application that provides access to Usenet newsgroups based on interests specified by the user. It can read through an article and score each thread of conversation based on the user’s past interests Intel AuctionBot Allows sellers to set up their own auctions where buyers and sellers can place bids according to the protocols and parameters that have been established for the auction University of Michigan

T76 figure 15.1 Overview of a decision support system (DSS) External Data TPS DSS Database DSS Software System, Models, OLAP Tools, Datamining Tools User Interface User

T77 Table 15.1 Examples of decision support systems Organization DSS Aplication American Airlines Equico Capital Corporation General Accident Insurance Bank of America Frito-Lay, Inc. Burlington Coat Factory National Gypsum Southern Railway Texas Oil and Gas Corporation United Airlines U. S. Department of Defence Price and route selection Investment evaluation Customer buying patterns and fraud detection Customer profiles Price, advertising, and promotion selection Store location and inventory mix Corporate planning and forecasting Train dispatching and routing Evaluation of potential drilling sites Flight scheduling Defense contract analysis

T78 Figure 15.3 Customer decision support on the internet CDSS Models Data Models Newsgroups Information brokers Serch engines and directories Models Other customers Data Customers Competitors

T79 Figure 15.6 Group systems tools Idea generation Brainstorming Topic Commenter Group Outliner Idea Organizer Issue Analyzer Group Writer Idea Organization Vote selection Alternative Eval. Questionnaire Group Matrix Prioritizing Policy Formation Stakeholder Id. Policy development Session manager Session Planning Enterprise Analyzer Graphical Browser Group Dictionary Brief Case Access to information Personal productivity Organizational Memory

T80 Figure 16.1 Telecommunications network vulnerabilities Radiation TAPS TAPS Radiation Radiation Radiation Crosstalk Crosstalk Radiation Switching center Processor Communication lines Files Thef Copying Unauthorized access Hardware, Imroper connections Remote consoles Access, Attachment of records, Bugs Systems programmer, Disable protective features, Reveal protective measures Hardware, Failure of protection circuits, Contribute to software failures Operator, Replace supervisor, Reveal protective measures User, Identification, Authentication, Subtle software modifications Maintenance staff, Disable hardware devices, Use stand-alone utility programs Software, Failure of protection features, Access control, Bounds control

T81 Table 16.2 Common computer viruses Virus Name Description Macro virus that attaches itself to Microsoft Word documents and can be spread when Word documents are attached to e-mail. Can copy itself from one document to another and delete files Concept Form Makes a clicking sound with each keystroke but only on the eighteenth day of the month. May corrupt data on the floppy disks it infects Encrypts the hard disk so that only the virus can read the data there, flashing „One_Half” on the computer screen when its activity is half-completed. Very descructive because it can mutate, making it difficult to identify and eliminate. One_Half Monkey Makes the hard disk look like it has failed because Windows will not run Junkie A „multipartite” virus that can infect files as well as the boot sector of the hard drive (the section of a PC hard drive that the PC first reads when it boots up), May cause memory conflicts Ripper (or Jack the Ripper) Corrupts data written to a PC’s hard disk about one time in every thousand

T82 Figure 16.2 Points in the processing cycle where errors can occur Data preparation Transmission Conversion Form completion On-line data entry Keypunching, Optical scanning, Other input Validation Processing/ file maintenance Output Transmission Distribution

T83 Figure 16.3 The cost of errors over the system development cycle Estimate of the relative cost of repairing errors based on consultant reports and the popular trade literature 6 5 4 Costs 3 2 1 Programming Conversion Postimplementation Analysis and design

T84 Table 16.3 Effect of weakness in general controls Impact Implementation controls New systems or systems that have been modified will have errors or fail to function as required Software controls (program security) Unauthorized changes can be made in processing. The organization may not be sure of which programs or systems have been changed Software controls (system software) These controls may not have a direct effect on individual applications. Other general controls depend heavily on system software, so a weakness in this area impairs the other general controls Physical hardware controls Hardware may have serious malfunctions or may break down altogether, introducing numerous errors or destroying computerized records Computer operations control Random errors may occur in a system. (Most processing will be correct, but occasionally it may not be.) Data file security controls Unauthorized changes can be made in data stored in computer systems or unauthorized individuals can access sensitive information Administrative controls All of the other controls may not be properly executed or enforced

T85 Table 16.4 Important edit techniques Description Example To be accepted, data must fall within certain limits set in advance, or they will be rejected If an order transaction is for 20,000 units and the largest order on record was 50 units, the transaction will be rejected Reasonableness checks Format checks Characteristics of the contents (letter/ digit), length, and sign of individual data fields are checked by the system A nine-position Social Security number should not contain any alphabetic characters Existence checks The computer compares input reference data to tables or master files to make sure that valid codes are being used An employee can have a Fair Labor Standards Act code of only 1, 2, 3, 4, or 5. All other values for this field will be rejected Dependency checks The computer checks whether a logical relationship is maintained between data for the same transaction. When it is not, the transaction is rejected A car loan initiation transaction should show a logical relationship between the size of the loan, the number of loan repayments, and the size of each installment

T86 Figure 17.1 International information systems infrastructure Global Environment: Business Drivers and Challenges Corporate Global Strategies Organization Structure Management and Business Procedures Technology Platform International Information Systems Infrastucture

T87 Table 17.1 The global business drivers General Cultural Factors Global communication and transportation technologies Development of global culture Emergence of global social norms Political stability Global knowledge base Specific Business Factors Global markets Global production and operations Global coordination Global workforce Global economies of scale

T88 Table 17.2 Challenges and obstacles to global business systems General Cultural particularism: regionalism, nationalism Social expectations: brand-name expectations; work hours Political lows: transborder data and privacy laws Specific Standards: different EDI, e-mail, telecommunications standards Reliability: phone networks not reliable Speed: data transfer speeds differ, slower than United States Personnel: shortages of skilled consultants

T89 Table 17.3 Global business strategy and stucture Business Function Domestic Exporter Multinational Franchiser Transnational Production Finance/Accounting Sales/Marketing Human Resources Strategic Management Centralized Mixed Dispersed Centralized Coordinated Centralized Coordinated

T90 Figure 17.2 Global strategy and system configurations Domestic Exporter Multinational Franchiser Transnational Centralized X X Duplicated X X X Decentralized X Networked X

T91 Figure 17.3 Agency and other coordination costs increase Global Core Business Processes Local Option Systems Local Business Processes Global Core Systems Regional Business Processes Regional Coordinated Systems

T92 Figure 18.1 Traditional view systems Business Value Chain Inbound logistics Manufacturing Finance Support Marketing and sales Vendors Customers Organizational Boundaries Business processes Business processes Business processes Business processes Business processes Organizational Boundaries Inbound logistics Marketing and sales Manufacturing Finance Support Business Systems

T93 Figure 18.2 Enterprise view of systems Business Value Chain Vendors Customers Inbound logistics Manufacturing Finance Support Marketing and sales Business processes Business processes Business processes Business processes Business processes Inbound logistics Manufacturing Finance Support Marketing and sales Enterprise Business Systems

T94 Table 18.1 Basic concepts of enterprise computing Measure Key Questions Benchmark competitors’ expenditures Are we spending too much, or too little on IT? Are we receiving a good return on investment? IT investment portfolio IT infrastructure Lists of technical capabilities Do we have the technical capablity to achieve our strategic objectives? Business logic Descriptions business model and processes How do we plan to make money and what business activities and processes should we emphasize IT architecture Descriptions of systems that support business model and processes Do we have the right systems environment and applications to implement the business logic?

T95 Figure 18.3 Enterprise computing concepts Business Unit A CUSTOMERS VENDORS The enterprise Enterprise-Wide Business Processes Firm Information Archtecture Business Unit A Business processes Systems applications Business Unit B Business processes Systems applications Business Unit C Business processes Systems applications Enterprise-wide systems and applications Firm infrastucture Hardware Software envirmonment Shared applications Telecommunications Firm IT Infrastructure Public infrastucture

T96 Figure 18.4 Industrial networks Application Superstructure Customer Trans-enterprise Applications Customer Customer Industrial Networks Extrnet Intranet Internet ES ES ES Inbound Logistics Outbound Logistics Customer Service ES Individuals Companies and Enterprise Systems Value Chain

T97 Table 18.2 Business drivers of Enterprisesystems: changing environments Impact Globaliztion and increasing information intesity reduce margins in traditional industries Market change Industry change Mergers, acquisitions, and consolidations in traditional industries increase scale economies and intensify industry competition Firm-level change Business process redesign efforts of the 1990s in traditional industries force jettsoning legacy systems and highlight the need for enterprise-wide systems to support the newly defined business processes Product changes The growth of information, knowledge, and high-tech-based products shortens product cycle times; increasing information intensity of traditional products and services shortens cycle times Management process thinking From discrete business process focus toward a view of the firm as an integrated set of processes; from neoclassical competition firm- based views of cooperation and alliance Management strategy Growing belief that information architecture investments could lead to unique knowledge that could not be purchased on input factor markets

T98 Table 18.3 Technological drivers of enterprise systems and industrial networks Technology Driver Nature of change Relational database technology Relational technology approaches hierarchical database speeds but with greatly enhanced flexibility Reductions in storage costs Storage devices double in capacity every six months Expanded public network infrastructure Open Internet networking technologies cause network costs to plunge; digital communication costs drop by a factor of 1000X in the 1990s; public switched network and dedicated Internet trunk lines displace proprietary networks and make transcompany information transfers commonplace; development of common protocols-XML, HTTP, TCP/IP Deployment of client/server Client/server becomes the dominant mode of computing causing major drops in information storage, processing, and distribution costs in the 1990s Evolution of desktop computing Desktop computing becomes the dominant mode of information distribution and 60% of the labor force comes on-line at work, gratly increasing the role of information in the firm Enterprise software and crossware Enterprise software emerges with standardized applications in an integrated environment that greatly reduces the costs of enterprise systems

T99 Figure 18.5 An ideal model for planning enterprise systems Firm strategy and governence Business model Business processes Firm information archtecture Firm IT infrastructure

T100 Figure 18.8 The infrastructure governance model Strategic group Operational group Business units/Regions Legacy infrastructure Functional groups/Process owners New architecture TPS Business model Enterprise platform Databases Internet/intranet/extranets Telecommunications Business processes Wireless communications