EXAM PREP WORKSHOP MANAGEMENT INFORMATION SYSTEMS

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

Information systems in Global Business Today The role of Information Systems in Business Dimensions of an information system: Source: Laudon and Laudon

Global E-business Management information Systems may be defined as : « Systems designed to produce information on a periodic basis instead of on a daily recurring basis. »

Types of support systems DSS ( Decision Support Systems) a) Serves the management level of an organization b) Somewhat different from an MIS c) A DSS uses internal data and combines external data to analyze various decisions based on the information. d) The analysis of complex, interactive decisions is the primary reason for using a DSS.

ESS (Executive Support Systems) Are use by upper levels of management Used to analyze both internal and external data to help make decisions Executives make their decisions based on the information provided by the ESS.

(SCM)Supply Chain Management Systems SCM Systems offer new opportunities to integrate data and information with their suppliers and their customers.

Global Supply Chain Issues Greater geographic distances and time differences Additional Costs for transportation, inventory and local taxes and fees Varying performance standards Foreign government regulations Cultural differences

Benefits of an integrated SCM Match supply to demand Reduce inventory levels Improve delivery service Speed product time to market Use assets more effectively

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

Information System Strategies for competitive forces Low cost leadership Efficient customer response systems Product Differentiation Market Niche Customer and Supplier Intimacy

Data Bases and Information Management « A database Management System is another software program which permits an organization to centralize data by application programs. »

Types of Database Management Systems A) Object Orientated : Data represented by pictures, text, audio and video can be captured. B) Relational: Stores data in tables. Data is then extracted and combined into whatever format as per the requirement of the user.

Benefits of a DBMS Reduces the complexity of the information environment Reduces data redundancy and inconsistency Eliminates data confusion Creates program data independance Enhances flexibility Reduces program and development costs Improves the accessibility to information Allows for easy retrieval of information

Securing information systems The importance of securing information systems Internet Vulnerabilities Technologies and Tools for securing information systems

Types of threats to information systems Hackers Viruses Spoofing and Sniffing Pharming Click fraud Cyberterrorism and cyberwarfare:

Methods of encryption Symmetric key encryption Shared, single encryption key sent to receiver Public key encryption Two keys, one shared/public and one private Messages encrypted with recipient’s public key but can only be decoded with recipient’s private key

Encryption and Public Key Infrastructure Software programs are used to encrypt or scramble transmissions before they are sent The sender and recipient have special software programs to encode and decode the end transaction.

E Commerce Factors that make e commerce different: A) Ubiquity B) Global Reach C) Universal Standards D) Richness E) Interactivity F) Price transparency G) Customization

E Commerce Payment systems Types of Payment Systems Digital credit card payment systems Extend functionality of credit cards for online shopping payments Provide mechanisms for authentication and transferring money from bank to seller Digital wallets Software stores credit card and other information to facilitate form completion and payment for goods on Web. Example: Google CheckOut

E Commerce Payment systems Types of Payment Systems Micropayment systems: For purchases of less than $10, such as downloads of individual articles or music clips Accumulated balance digital payment systems: Accumulate debit balance that users pay periodically on credit card or telephone bills Stored value payment systems: Allow instant online payments based on value stored in digital account (e.g. checking, credit card accounts May require use of digital wallet Example: Smart cards and devices like EZ Pass

E Commerce Payment systems Types of Payment Systems Digital cash: “Currency” represented in electronic form that moves outside normal network of money. Not regulated and not legal tender Client software allows exchange of money with other e-cash user over Internet or with retailer accepting e-cash Peer-to-peer payment systems: Serve people who want to send money to vendors or individuals who are not set up to accept credit card payments Digital checking payment systems: Electronic check with secure digital signature Electronic billing presentment and payment systems: Used for paying routine monthly bills from bank or credit card accounts

E Commerce Payment systems Types of Payment Systems Digital cash: “Currency” represented in electronic form that moves outside normal network of money. Not regulated and not legal tender Client software allows exchange of money with other e-cash user over Internet or with retailer accepting e-cash Peer-to-peer payment systems: Serve people who want to send money to vendors or individuals who are not set up to accept credit card payments Digital checking payment systems: Electronic check with secure digital signature Electronic billing presentment and payment systems: Used for paying routine monthly bills from bank or credit card accounts

CASE STUDY: AMAZON.COM VS EBAY INC. How has using the internet for electronic transactions, assisted Amazon in gaining competitive advantage? What are the advantages and disadvantages of using e-commerce?