1. Sections Covered in 1st Part of Course
MIS 300 Midterm Summary

2. Principles and Learning Objectives-1
The value of information is directly linked to how it helps decision makers achieve the organization’s goals
Distinguish data from information and describe the characteristics used to evaluate the quality of data
Information
Organization
GOAL
MIS 300 Midterm Summary

3. Principles and Learning Objectives -2
Knowing the potential impact of information systems and having the ability to put this knowledge to work can result in a successful personal career, organizations that reach their goals, and a society with a higher quality of life
Identify the basic types of business information systems and discuss who uses them, how they are used, and what kinds of benefits they deliver
MIS 300 Midterm Summary

4. Chapter 1 Provides a Preview of All the Concepts Covered in the Course
Chapter 1 Provides a Preview of All the Concepts Covered in the Course. Note these especially
MIS 300 Midterm Summary

5. What is Information, really? Why have it?
Introduction
Information system (IS)
Set of interrelated components: collect, manipulate, disseminate data and information
Provide feedback to meet an objective
Examples: ATMs, airline reservation systems, course reservation systems
What is Information, really? Why have it?
MIS 300 Midterm Summary

6. What Herbert Simon Won the Nobel Prize For
Choice
Design
Intelli-gence
Execution
Something
Happens
Mgmt Decision
Required
MIS 300 Midterm Summary

7. What’s Behind the Model of Rational Decision Making
Optimize or Satisfice?
Select one alternative course of action
Reflect against what is known
Intelli-gence
Implement the decision
Gather information about pertinent events
Something
Happens
Mgmt Decision
Required
All activity depends on requirements and resources available
MIS 300 Midterm Summary

8. Information Concepts: Data Versus Information
Data: raw facts
Alphanumeric, image, audio, and video
Information
Organized collection of facts
Have value beyond the facts themselves
Recordings of machines’ experiences
data or other information
components themselves
Information is “information” only to the extent that it informs a user or consumer. That means that the informationness of an experience depends on the observer and what the observer has to do (intention)!
MIS 300 Midterm Summary

9. Data Versus Information (continued)
Selecting, organizing and manipulating, conditioned by existing models and subsequent need for action.
Figure 1.2: The Process of Transforming Data into Information
MIS 300 Midterm Summary

10. The Characteristics of Valuable Information
Table 1.2: Characteristics of Valuable Information
MIS 300 Midterm Summary

11. The Characteristics of Valuable Information (continued)
Table 1.2: Characteristics of Valuable Information (continued)
MIS 300 Midterm Summary

12. What Is an Information System?
This is only one view. A system is much more complex. A behavioral view will keep in mind intentions, skills, judgments, and prior knowledge (theory)
Figure 1.3: The Components of an Information System
MIS 300 Midterm Summary

13. Computer-Based Information Systems
Manual versus computerized information systems
Computers are NOT necessary in information systems, but they have certain efficiencies
Computer-based information system (CBIS)
Hardware, software, databases, telecommunications, people, and procedures
Collect, manipulate, store, and process data into information
MIS 300 Midterm Summary

14. Computer-Based Information Systems (continued)
The infrastructure (left)
What you ex-perience (above)
Figure 1.4: The Components of a Computer-Based Information System
MIS 300 Midterm Summary

15. Electronic and Mobile Commerce
E-commerce: any business transaction executed electronically between parties such as:
Companies (B2B)
Companies and consumers (B2C)
Consumers and other consumers (C2C)
Business and the public sector
Consumers and the public sector
MIS 300 Midterm Summary

16. Transaction Processing Systems
Transaction: business-related exchange
Payments to employees
Sales to customers
Payments to suppliers
Transaction processing system (TPS)
A collection of people, procedures, software, databases, devices
Records completed business transactions
MIS 300 Midterm Summary

17. Transaction Processing Systems (continued)
Figure 1.7: A Payroll Transaction Processing System
The inputs (numbers of employee hours worked and pay rates) go through a transformation process to produce outputs (paychecks)
MIS 300 Midterm Summary

18. Enterprise Resource Planning
Integrated programs that manage all business operations
Coordinate planning, inventory control, production, and ordering among others
Historically based in production systems
Hard to translate to other types of business
Necessarily complex
MIS 300 Midterm Summary

19. Chapters 2-5 Relate Material on These Topics
Ch 2: Hardware (little emphasis)
Ch 2: Software
Ch 3: Data Management and Databases
Ch 4: Networking
Ch 5: E-Commerce
Ch 5: Transaction Processing Systems
Ch 5: Enterprise Resource Systems
MIS 300 Midterm Summary

20. Hardware Components Ch 2 CPU
Central processing unit (CPU) (The thinker)
Arithmetic/logic unit (ALU)
Control unit
Input devices (what purpose?)
Output devices (what purpose?)
Control & Data Source
Results & Feedback
Why are there two different kinds of output?
CPU
Why are there two different kinds of input?
MIS 300 Midterm Summary

21. Overview of Software Computer programs: sequences of instructions
Documentation: describes program functions
Systems software: coordinates the activities of hardware and programs: “To serve and protect”
Application software: helps users solve particular problems: “To get the job done”
What is software really doing? Why is it important?
MIS 300 Midterm Summary

22. Systems Software: Operating Systems
Operating system (OS): set of programs that control and manage the hardware and act as an interface with applications
Common hardware functions
Get input (e.g., keyboard)
Retrieve data from disks and store data on disks
Display information on a monitor or printer
MIS 300 Midterm Summary

23. Operating Systems (continued)
Figure 2.8: The role of the operating system and other systems software is as an interface or buffer between application software and hardware. It also controls and manages everything.
MIS 300 Midterm Summary

24. Operating Systems (continued)
User interface
Allows individuals to access and command the computer system
Command-based user interface: uses text commands
Graphical user interface (GUI): uses icons and menus to send commands to the computer system
Smart interface: anticipates users’ needs
MIS 300 Midterm Summary

25. Application Software
Gives users the ability to solve problems and perform specific tasks
Interacts with systems software; systems software then directs the hardware to perform the tasks
Applica-
tion
Software
User
Interface
System
Software
Hardware
Other I/O Devices
MIS 300 Midterm Summary

26. Types and Functions of Application Software
Proprietary software: unique program for a specific application, usually developed and owned by a single company
Off-the-shelf software: purchased software
Customized package
Proprietary: “We build it”
Off-the-Shelf:
“We buy it”
MIS 300 Midterm Summary

27. Programming Languages
I, the pro-grammer, hear you!
Hooray! Now I KNOW!
I need informa-tion to solve a problem!
Information
System
Saved Com- mands
Compiler or language
processor
Programming language statements
Conversation about need
Information
System
Some Time Later
MIS 300 Midterm Summary

28. Software Issues and Trends That Will Effect YOU!
Software bugs
Program defects that keep it from performing correctly
Copyrights and licenses
Global software support
Obsolescence
Outsourcing
Legal issues
Commoditization
Security
MIS 300 Midterm Summary

29. Hmmmm. That feels just like “3” or maybe a “4” but definitely not a 5
Ch 3
What is DATA?
Machine “experience”, what a machine makes of its environment
Hmmmm. That feels just like “3” or maybe a “4” but definitely not a 5
THREE POINT FIVE
MIS 300 Midterm Summary

30. What is INFORMATION?
Human experience of Data: telling us something we didn’t know or weren’t able to predict.
Hey, Schmoey, Jones is here for his stock
Was it Jones or Smith we promised the stock to? Gotta find out. Should be Smith, but…
OK, and thanks for the INFORMATION!
MIS 300 Midterm Summary

31. The Organizational Data “Shadow”
Actual Event
Sources of Error
Real World
Data “Impression”
Error: Lost Data
Error: SpuriousData
Error: IncorrectData
Data “World”
MIS 300 Midterm Summary

32. Events as Data Each event generates some data
The data are about the objects that play roles in the event
The data describe the objects and perhaps how they relate to one another
The events, too, relate to one another in various ways.
MIS 300 Midterm Summary

33. Data Events Consider a sales “event”
It involves a number of objects: items sold, salesperson, act of selling, customer, money (objects are also called “entities”)
Each event generates data that describe each of the objects….
MIS 300 Midterm Summary

34. Data Representation: The Hierarchy of Data
Bit (a binary digit): a circuit that is either on or off
Byte: 8 bits
Character: each byte represents a character; the basic building block of information
Field: name, number, or characters that describe an aspect of a business object or activity
MIS 300 Midterm Summary

35. The Hierarchy of Data (continued)
Record: a collection of related data fields
File: a collection of related records
Database: a collection of integrated and related files
Hierarchy of data
Bits, characters, fields, records, files, and databases
MIS 300 Midterm Summary

36. The Traditional Approach Versus the Database Approach
Traditional approach: separate data files are created for each application, i.e., each business problem
Results in data redundancy (duplication)
Data redundancy conflicts with data integrity
Database approach: pool of related data is shared by multiple applications
Significant advantages over traditional approach
Besides, all elements of business are related
MIS 300 Midterm Summary

37. The Database Approach
Figure 3.4: The Database Approach to Data Management
MIS 300 Midterm Summary

38. Advantages of the Database Approach
Table 3.1: Advantages of the Database Approach
MIS 300 Midterm Summary

39. Disadvantages of the Database Approach
Table 3.2: Disadvantages of the Database Approach
MIS 300 Midterm Summary

40. ER Diagrams Tell a Story
“Once upon a time there was a customer order database. In this database were salespeople, each of whom serviced one or more customers. Each customer could place one or more orders, each of which included one or more line items. Many of these line items could specify the same product. Each order generated one and only one invoice”
It reads like a story…
Entity
Relationship
Figure 3.5: An Entity-Relationship (ER) Diagram for a Customer Order Database
MIS 300 Midterm Summary

41. Database Management Systems (DBMS)
Interface between
Database and application programs
Database and the user
Database types
Flat file
Single user
Multiple users
MIS 300 Midterm Summary

42. Data Warehouses, Data Marts, and Data Mining
Data warehouse: collects business information from many sources in the enterprise
Data mart: a subset of a data warehouse
Data mining: an information-analysis tool for discovering patterns and relationships in a data warehouse or a data mart
MIS 300 Midterm Summary

43. Business Intelligence
Business intelligence (BI): gathering the right information in a timely manner and usable form and analyzing it to have a positive impact on business
Knowledge management: capturing a company’s collective expertise and distributing it wherever it can help produce the biggest payoff
MIS 300 Midterm Summary

44. Distributed Databases
Data may be spread across several smaller databases connected via telecommunications devices
Corporations get more flexibility in how databases are organized and used
Replicated database
Holds a duplicate set of frequently used data
MIS 300 Midterm Summary

45. An Overview of Telecommunications and Networks
Ch 4
Telecommunications: the electronic transmission of signals for communications
Telecommunications medium: anything that carries an electronic signal and interfaces between a sending device and a receiving device
Telecommunications carrier: any business that provides (leases, services) telecommunications media.
Telecommunications service: any service to customers at least partially facilitated by telecommunications
MIS 300 Midterm Summary

46. Communication Model Meaning-2 Meaning-1 Expression Interpretation
Sender
Channel
Receiver
Encoding
Decoding
M e s s a g e
Challenges:
1. Various processes 2. Will meanings match? 3. Why encode? 4. Purpose? Intention?
MIS 300 Midterm Summary

47. Characteristics of Communication
Encoding/decoding scheme
Speed of transmission (baud)
Directionality (one-way, bidirectional, switchable)
Noise
Equivocation (loss of signal)
Ambiguity (loss of meaning)
Turntaking (protocol)
MIS 300 Midterm Summary

48. The Telecommunications Problem
Sender
Channel
Receiver
Encoding
Decoding
Distance: Sender and Receiver are not in direct contact Equivocation: Message loses power over distance Noise: Channel introduces unwanted message Coordination: It’s not clear what a message event is
MIS 300 Midterm Summary

49. Solutions to the problems
Sender
Channel
Receiver
Encoding
Decoding
Distance: Long “wires” of various types Equivocation: Boosting of power (introduces noise) Noise: Special encoding schemes Coordination: Coordination messages (protocols)
Notice: Nothing about meaning, intention
MIS 300 Midterm Summary

50. Basic Economics Sources aren’t “on” all the time
Sources make mistakes; repetition is dangerous and costly
Channels are usually relatively expensive
Sharing channels is a good use of an expensive resource; sharing is costly
All channels are error-prone; the way to compensate is redundancy
The more complex the scheme, the higher the cost and the more likely is failure or error.
MIS 300 Midterm Summary

51. What Is a Signal? A communication event Has a definite start and stop
ANALOG signal: strength is proportional to “content”
A communication event
Has a definite start and stop
Carries information (which is NOT the signal)
DIGITAL signal: strength is fixed at either 0 or a constant 1 1 1 1 1
MIS 300 Midterm Summary

52. What Is the Advantage of Digital Signalling?
First, simplicity, only two signal levels
Second, resistance to noise
Third, amplification can work without amplifying noise
Fourth, potential to add check bits to reconstruct byte in the event of errors (for example, parity checking).
MIS 300 Midterm Summary

53. Carriers and Services
Local exchange carrier (LEC): a public telephone company in the United States that provides service to homes and businesses within its defined geographical area
Competitive local exchange carrier (CLEC): a company that is allowed to compete with the LECs, such as a wireless, satellite, or cable service provider
Long-distance carrier: a traditional long-distance phone provider, such as AT&T, Sprint, or MCI
MIS 300 Midterm Summary

54. What Are Networks For?
At an electrical level, networks move electrons along paths between nodes
At a signal level, networks move coded characters along links connecting nodes
At a transportation level, networks move packages or packets of characters between source and destination along paths within the network
At a session level, networks move messages from sender to receiver.
At the application level, networks move information from a server to a client.
Businesses can select various ways for this to happen.
MIS 300 Midterm Summary

55. Networks
Computer network: the communications media, devices, and software needed to connect two or more computer systems or devices
Network nodes: the computers and devices on the networks
Node
MIS 300 Midterm Summary

56. Basic Processing Strategies
Centralized processing: all processing occurs in a single location or facility
Decentralized processing: processing devices are placed at various remote locations
Distributed processing: computers are placed at remote locations but connected to each other via a network
MIS 300 Midterm Summary

57. Terminal-to-Host, File Server, and Client/Server Systems
Connecting computers in distributed information processing:
Terminal-to-host: the application and database reside on one host computer, and the user interacts with the application and data using a “dumb” terminal
File server: the application and database reside on the one host computer, called the file server
Client/server: multiple computer platforms are dedicated to special functions, such as database management, printing, communications, and program execution
MIS 300 Midterm Summary

58. Communications Software and Protocols
Communications software: software that provides a number of important functions in a network, such as error checking and data security
Network operating system (NOS)
Network management software
Communications protocol: a standard set of rules that controls a telecommunications connection
MIS 300 Midterm Summary

59. Packet Switching
Sender’s message is broken into (generally short, fixed-length) packets
Each packet is numbered and sent “into” the network
The network transmits the packets
The node assembles the packets in order (not an easy task)
The receiver gets the message from the node.
MIS 300 Midterm Summary

60. How the Internet Works
The Internet transmits data from one computer (called a host) to another
If the receiving computer is on a network to which the first computer is directly connected, it can send the message directly
If the receiving computer is not on a network to which the sending computer is connected, the sending computer relays the message to another computer that can forward it
MIS 300 Midterm Summary

61. How the Internet Works (continued)
Data is passed in chunks called packets
Internet Protocol (IP): communications standard that enables traffic to be routed from one network to another as needed
Transmission Control Protocol (TCP): widely used transport-layer protocol that is used in combination with IP by most Internet applications
Uniform Resource Locator (URL): an assigned address on the Internet for each computer
MIS 300 Midterm Summary

62. Internet Service Providers
Internet service provider (ISP): any company that provides individuals or organizations with access to the Internet
Most charge a monthly fee
Many ISPs and online services offer broadband Internet access through digital subscriber lines (DSLs), cable, or satellite transmission
MIS 300 Midterm Summary

63. The World Wide Web The Web, WWW or W3
A menu-based system that uses the client/server model
Organizes Internet resources throughout the world into a series of menu pages, or screens, that appear on your computer
Hypermedia: tools that connect the data on Web pages, allowing users to access topics in whatever order they want
MIS 300 Midterm Summary

64. The World Wide Web (continued)
Hypertext Markup Language (HTML): the standard page description language for Web pages
HTML tags: codes that let the browser know how to format the text on a Web page and whether images, sound, and other elements should be inserted
MIS 300 Midterm Summary

65. Web Browsers
Web browser: software that creates a unique, hypermedia-based menu on a computer screen, providing a graphical interface to the Web
The menu consists of graphics, titles, and text with hypertext links
Ubiquitous and non-proprietary web browsers make it possible for the Internet to be a business platform.
MIS 300 Midterm Summary

66. Search Engines Search engine: a Web search tool
Examples: Yahoo.com, Google.com
Most search engines are free
Searches can use words, such as AND and OR, to refine the search
MIS 300 Midterm Summary

67. Intranets and Extranets
Internal corporate network built using Internet and World Wide Web standards and products
Used by employees to gain access to corporate information
Slashes the need for paper
MIS 300 Midterm Summary

68. Intranets and Extranets (continued)
A network based on Web technologies that links selected resources of a company’s intranet with its customers, suppliers, or other business partners
Virtual private network (VPN): a secure connection between two points across the Internet
Tunneling: the process by which VPNs transfer information by encapsulating traffic in IP packets over the Internet
MIS 300 Midterm Summary

69. Net Issues Management issues Service and speed issues
No centralized governing body controls the Internet
Service and speed issues
Web server computers can be overwhelmed by the amount of “hits” (requests for pages)
More and more Web sites have video, audio clips, or other features that require faster Internet speeds
MIS 300 Midterm Summary

70. Net Issues (continued)
Privacy
Spyware: hidden files and information trackers that install themselves secretly when you visit some Internet sites
Cookie: a text file that an Internet company can place on the hard disk of a computer system
Fraud
Phishing
MIS 300 Midterm Summary

71. Net Issues (continued)
Security with encryption and firewalls
Cryptography: converting a message into a secret code and changing the encoded message back to regular text
Digital signature: encryption technique used to verify the identity of a message sender for processing online financial transactions
Firewall: a device that sits between an internal network and the Internet, limiting access into and out of a network based on access policies
MIS 300 Midterm Summary

72. The Supply Chain Ch 5 Focal Firm (Producer or Service Provider)
Suppliers
Buyers
Procurement, inbound logistics, production, outbound logistics, sales, servicing
The Value Chain coexists with the supply chain, adding “value” at every link in the chain
MIS 300 Midterm Summary

73. The E-Commerce Supply Chain
Focal Firm
(Producer or
Service
Provider)
Suppliers
Buyers
These links are all electronic. Info is maintained in data bases
MIS 300 Midterm Summary

74. E-Commerce Supply Chain Management
Supply chain management is a key value chain composed of:
Demand planning
Supply planning
Demand fulfillment
It’s actually a supply network.
The supply chain is the upstream aspect of the value chain.
The value chain is actually a value network.
MIS 300 Midterm Summary

75. Mobile Commerce
Mobile commerce (m-commerce) relies on the use of wireless devices, such as personal digital assistants, cell phones, and smart phones, to place orders and conduct business
What does it mean to “be mobile”?
Issues confronting m-commerce
User-friendliness of the wireless device
Network speed
Security
MIS 300 Midterm Summary

76. Mobile Commerce (continued)
Handheld devices used for m-commerce have limitations that complicate their use
Wireless application protocol (WAP): a standard set of specifications for Internet applications that run on handheld, wireless devices
MIS 300 Midterm Summary

77. Electronic Payment Systems
Digital certificate: an attachment to an message or data embedded in a Web page that verifies the identity of a sender or a Web site
Electronic cash: an amount of money that is computerized, stored, and used as cash for e-commerce transactions
MIS 300 Midterm Summary

78. Electronic Payment Systems (continued)
Electronic wallet: a computerized stored value that holds credit card information, electronic cash, owner identification, and address information
Credit card
Charge card
Debit card
Smart card
MIS 300 Midterm Summary

79. An Overview of Transaction Processing Systems
Provide data for other business processes:
Management information system/decision support system (MIS/DSS)
Special-purpose information systems
Process the detailed data necessary to update records about the fundamental business operations
Include order entry, inventory control, payroll, accounts payable, accounts receivable, and the general ledger.
MIS 300 Midterm Summary

80. An Overview of Transaction Processing Systems (continued)
Figure 5.6: TPS, MIS/DSS, and Special Information Systems in Perspective
MIS 300 Midterm Summary

81. Traditional Transaction Processing Methods and Objectives
Batch processing system: method of computerized processing in which business transactions are accumulated over a period of time and prepared for processing as a single unit or batch
Online transaction processing (OLTP): computerized processing in which each transaction is processed immediately, without the delay of accumulating transactions into a batch
MIS 300 Midterm Summary

82. Transaction Processing Activities
TPSs
Capture and process data that describes fundamental business transactions
Update databases
Produce a variety of reports
Transaction processing cycle: the process of data collection, data editing, data correction, data manipulation, data storage, and document production
MIS 300 Midterm Summary

83. Transaction Processing Activities (continued)
Figure 5.8: Data Processing Activities Common to TPSs
MIS 300 Midterm Summary

84. Transaction Processing Activities (continued)
Data collection
Should be collected at source
Should be recorded accurately, in a timely fashion
Data editing
Data correction
MIS 300 Midterm Summary

85. Transaction Processing Activities (continued)
Data manipulation
Data storage
Document production and reports
MIS 300 Midterm Summary

86. International Issues
Issues that multinational corporations face in planning, building, and operating their TPSs
Different languages and cultures
Disparities in IS infrastructure
Varying laws and customs rules
Multiple currencies
MIS 300 Midterm Summary

87. Enterprise Resource Planning: An Overview of Enterprise Resource Planning
Enterprise resource planning (ERP) systems are used in large, midsized, and small companies
Real-time monitoring of business functions
Timely analysis of key issues, such as quality, availability, customer satisfaction, performance, and profitability
MIS 300 Midterm Summary

88. Definition
The adoption of an integrated, comprehensive set of applications that communicate easily with one another to handle all of a firm’s business
MIS 300 Midterm Summary

89. Basic Philosophy
Division of labor, basis of bureaucracy isn’t whole story
Business is an integrated, tightly cohesive system
Structure follows form follows function follows information!
Redundancy, duplication are bad
Variety is the enemy
MIS 300 Midterm Summary

90. Typically, corporate IT use is …
Sales EIS
Production DSS
Corporate Accountability
Finance ESS
Sales Mgmt Software
Production Mgmt Application
Accounting System
Debt Management Application
Management Level
Sales POS System
Production System
Accounts Receivable
Finance Spreadsheet
Division, Function, Responsibility
MIS 300 Midterm Summary

91. Fragmented, Fractured…
Sales EIS
Production DSS
Corporate Accountability
Finance ESS
No aggregation or dissemination across levels of responsibility
Sales Mgmt Software
Production Mgmt Application
Accounting System
Debt Management Application
Management Level
Sales POS System
Production System
Accounts Receivable
Finance Spreadsheet
No communication across functions
Division, Function, Responsibility
MIS 300 Midterm Summary

92. Integration Proceeds in Two Dimensions
1. Cross- Functional
Sales EIS
Production DSS
Corporate Accountability
Finance ESS
Common data formats, real-time data processing, client-server platforms, and Internet-based extranets enable data to move “seamlessly” across divisional boundaries, lubricating the movement of semi-finished inventory, product, etc. One barrier to integration is removed.
Sales Mgmt Software
Production Mgmt Application
Accounting System
Debt Management Application
Common user interfaces enable better communication and movement of human resources among divisions
Sales POS System
Production System
Accounts Receivable
Finance Spreadsheet
Division, Function, Responsibility
MIS 300 Midterm Summary

93. Typically, corporate IT use is …
2. Vertical- ly Integra- ted
Sales EIS
Production DSS
Corporate Accountability
Finance ESS
Central repositories, common formats, real-time processing, updated security, mobile technologies enable executives, managers, supervisors and workers at all levels to create, access, use, and update information according to their needs.
Sales Mgmt Software
Production Mgmt Application
Accounting System
Debt Management Application
Management Level
Sales POS System
Production System
Accounts Receivable
Finance Spreadsheet
MIS 300 Midterm Summary

94. Sales data generated from POS
Result?
And to CFO to update information for loan repayment, renegotiation
Available to Sales Managers to forecast demand
And to production management to monitor productivity, anticipate problems
And to all em-
ployees to keep them informed about working conditions
Intra- net
And to production stations for schedule generation
And to customers to estimate delivery time, options, etc.
Extra- net
Sales data generated from POS
MIS 300 Midterm Summary

95. Why Is Enterprise Computing Important?
Integrates the supply chain
Provides for organizational learning
Introduces strong IT efficiencies through common approaches
Solves management problems of burgeoning IT costs (consolidation)
Recognizes IT’s central role in integration, lubrication of business processes
MIS 300 Midterm Summary

96. What Makes ERP/EC Difficult?
Sheer volume of data
Divisional lore
Actual divisions of labor
Human nature (undesirability of change)
Poorly thought-through problem statement
High initial cost
Legacy systems, sunk costs
Near-monopoly supplier situation (SAP, Bahn, Peoplesoft, Oracle are really only suppliers)
MIS 300 Midterm Summary

97. Advantages and Disadvantages of ERP
Elimination of costly, inflexible legacy systems
Improvement of work processes
Increase in access to data for operational decision making
Upgrade of technology infrastructure
Expense and time in implementation
MIS 300 Midterm Summary

98. Advantages and Disadvantages of ERP (continued)
Difficulty implementing change
Difficulty integrating with other systems
Risks in using one vendor
Risk of implementation failure
MIS 300 Midterm Summary

99. Plus Material NOT in the Book
*Internet as E-Commerce Platform (.asp)
*The Business Platform Idea (.ppt) What business needs to function
*The Computer Idea (.ppt) Computers as ideal office assistants
*The Database Idea (.ppt) Integrating data
*The Economy of Style Idea (.ppt) Another basis for competition
*Transaction Processing Systems (.ppt) Gold in old transactions
MIS 300 Midterm Summary

100. Information Laws Conservation: Information cannot come from nowhere
Utilization: Data cannot go nowhere
Logical Data Flow: Outputs must be completely determined by inputs plus processing
Data Integrity: All changes to data stores must be made by processes inside a system
MIS 300 Midterm Summary