MIT 542-2 Management Information Systems Study Notes Course Overview  Course Code: MIT 542-2  Credit Value: 2  Objective: To provide knowledge on how information technology (IT) relates to organizational objectives and goals in a global context, given the increasing inter relationship between IT and organizations.  Course Content Includes: Management within the organization, Management Information Systems (MIS) for decision-making, Measurement of MIS performance and capabilities, MIS applications and relationships, Techniques and methodologies for supporting MIS development, Development of MIS, and Managing MIS Projects.  References: Laudon, K.C. & Laudon, J.P., Essentials of Management Information Systems (2016/latest) and Management Information Systems (2014/latest). 1. Introduction to Management  Creation of Organizations o Economies strive for a better standard of living. o People have unlimited needs and want, fulfilled by goods and services produced by individuals and organizations. o The success of a nation depends on the successful workings of organizations. o Nations face challenges during the creation of organizations.  Organization Definition & Characteristics o Definition: A deliberate arrangement of people to accomplish some specific purpose. o Common Characteristics:  People  Distinct Purpose  Deliberate Structure  Management Definitions o Economists: Management is a resource like land, labor, capital. o Bureaucrats: Management is a system of authority to achieve business goals. o Sociologists: Management is a part of the class elite in society. o Mary Parker Follett: "Management is the art of getting things done through people". o F. W. Taylor: "Management is the art of knowing what you want to do and then seeing that they do it in the best and the cheapest manner". o Peter Drucker: "Management is a multipurpose organ that manage a business and manages Managers and manages Workers and work". o Henri Fayol: "Management is to forecast, to plan, to organize, to command, to coordinate and control activities of others".  Comprehensive Management Definition o Management is a process of planning, organizing, leading, and controlling of scarce resources in an effective and efficient manner to achieve desired goals in a dynamic environment. o Efficiency: Doing things right, or getting the most output from the least amount of inputs. o Effectiveness: Doing the right things, or completing activities so that organizational goals are attained.  Functions of Management o Planning: Defining goals, establishing strategies to achieve goals, and developing plans to integrate and coordinate activities. o Organizing: Arranging and structuring work to accomplish organizational goals. o Leading: Working with and through people to accomplish goals. o Controlling: Monitoring, comparing, and correcting work.  Management Roles (Mintzberg) o Mintzberg identified 10 specific actions or behaviors expected of a manager, grouped around interpersonal relationships, the transfer of information, and decision-making.  Who is a Manager? o Someone who coordinates and oversees the work of other people so that organizational goals can be accomplished.  Managerial Levels o First-line Managers: Individuals who manage the work of non-managerial employees. o Middle Managers: Individuals who manage the work of first-line managers. o Top Managers: Individuals responsible for making organization-wide decisions and establishing plans and goals that affect the entire organization.  Managerial Skills o Technical skills: Job-specific knowledge and techniques needed to proficiently perform work tasks. o Human skills: The ability to work well with other people individually and in a group. o Conceptual skills: The ability to think and to conceptualize about abstract and complex situations. 2. Management Information Systems (MIS)  Overview of MIS o MIS refers to the system designed to manage information within an organization. o It helps in decision-making, coordination, control, analysis, and visualization of information. o Key Components:  Technology: Hardware, software, and networks.  People: Individuals who use the system, including IT staff and end-users.  Processes: Procedures to collect, process, and disseminate data.  Importance of MIS in Organizations o Support Decision-Making: Provides managers with data-driven insights for informed decisions. o Improves Efficiency: Automates routine tasks and operations, improving workflow efficiency. o Facilitates Communication: Enhances internal and external communication channels. o Supports Strategic Goals: Aligns IT strategy with business objectives.  Challenges in MIS Implementation o Cost: High initial investment in technology and training. o Security Risks: Protection of data from cyber threats. o Integration Issues: Challenges in integrating MIS with existing systems. o User Resistance: Resistance to change among employees during implementation.  Trends in MIS o Cloud Computing: Leveraging cloud platforms for scalability and cost-efficiency. o Artificial Intelligence (AI): AI-enhanced systems to improve decision-making and automation. o Big Data Analytics: Processing large datasets to extract actionable insights. o Mobile and Social Platforms: Enhancing communication and data sharing through mobile and social media integration. 3. The Role of Information Systems in Business Today  Information Systems are Transforming Business o Increased use of wireless technology and Web sites. o Shifts in media and advertising. o New laws and changes in business affecting jobs and careers.  Updates in MISs o Organizations: Social business, collaboration across firms, virtual organizations. o New technologies: Cloud computing/SaaS, Big Data, mobile digital platforms. o Management: Managers using social networks, collaboration, business intelligence applications accelerating, virtual meetings proliferating.  Globalization Challenges and Opportunities: A Flattened World o Internet has drastically reduced costs of operating on a global scale. o Increases competition for jobs, markets, resources, and ideas. o Requires new understandings of skills, markets, and opportunities.  The Emerging, Fully Digital Firm o Digital firms offer greater flexibility in organization and management. o Definition: A digital firm is one where nearly all significant business relationships with customers, suppliers, and employees are digitally enabled and mediated. o Core business processes are accomplished through digital networks spanning the entire organization or linking multiple organizations.  Strategic Business Objectives of Information Systems o There is a growing interdependence between a firm’s information systems and its business capabilities. o Businesses invest heavily in IS to achieve six strategic objectives: 1. Operational Excellence: Improved efficiency and productivity lead to higher profits. 2. New Products, Services, and Business Models: IS are major enabling tools for new offerings and business models (how a company produces, delivers, and sells to create wealth). 3. Customer and Supplier Intimacy: Serving customers well leads to loyalty and increased revenue; intimacy with suppliers ensures vital inputs and lowers costs. 4. Improved Decision Making: IS provide accurate and real-time information for better managerial decision-making and forecasts. 5. Competitive Advantage: Achieved by doing things better, charging less, or responding faster to customers/suppliers. 6. Survival: Information technologies become necessities due to industry changes, competition, or governmental regulations. 4. Perspectives of Information Systems  Information and Data o Data: Streams of raw facts. o Information: Data shaped into meaningful, useful form.  IT and IS o Information technology (IT): The hardware and software a business uses to achieve objectives. o Information system (IS): A set of interrelated components that collect, process, store, and distribute information to support decision-making and control, and help with analysis, visualization, and product creation.  Activities in an Information System o Input: Captures or collects raw data from within the organization or from its external environment. o Processing: Converts raw data into a more meaningful form. o Output: Transfers processed information to people who will use it. o Feedback: Output returned to appropriate people or activities to evaluate and refine the input.  Information Systems are More Than Computers o Effective use of information systems requires an understanding of the organization, people, and information technology shaping the systems.  Dimensions of Information Systems To use information systems effectively, one must understand these three dimensions and how they interact. o A. Organizations  Description: Coordinate work through structured hierarchies and business processes (related tasks and behaviors for accomplishing work, e.g., fulfilling an order, hiring an employee). Culture is embedded in information systems.  Additional Information on Organizations:  Problems: Can arise from outdated business processes, unsupportive culture and attitudes, political in-fighting, turbulent business environments, task complexity, and inadequate resources.  Features: Characterized by hierarchical structure, accountability, impartial decision-making, efficiency, routines (standard operating procedures), business processes, organizational politics, culture, and interaction with environments.  Types of Structure: Include entrepreneurial, machine bureaucracy, divisionalzed bureaucracy, professional bureaucracy, and adhocracy.  Impact of IT: IT can flatten organizations by pushing decision making to lower levels and reducing the number of managers needed. However, implementing new systems can face organizational and political resistance to change, which is a common reason for project failure.  Factors to Consider for New Systems: Environment, hierarchy, specialization, routines, business processes, culture, politics, type of organization, leadership style, main interest groups, attitudes of end users, and the specific tasks/decisions/processes the system will assist. o B. People  Description: Information systems require skilled people to build, maintain, and use them. Employee attitudes affect the ability to use systems productively. Managers play a crucial role in perceiving business challenges, setting strategy, allocating resources, coordinating work, and performing creative work.  Additional Information on People:  Problems: Can stem from a lack of employee training, difficulties in evaluating performance, legal and regulatory compliance, challenging work environments, poor or indecisive management, and lack of employee support and participation.  End User Role in Systems Development: High user involvement and management support are critical for successful system implementation. Users who participate in system design are more likely to accept the system.  Communication Challenges: Users focus on business problems, while technical specialists prioritize technical efficiency. This gap can lead to user requirements not being incorporated, causing project failure.  Overcoming Resistance: Strategies include increasing user participation, providing education and training, implementing supportive management policies, offering better incentives, improving user interfaces, and solving organizational problems before system introduction. o C. Technology  Description: IT Infrastructure is the foundation or platform upon which information systems are built. This includes computer hardware, computer software, data management technology, and networking and telecommunications technology, including the Internet and Web, extranets, intranets, and voice/video communications.  Additional Information on Technology:  IT Infrastructure Components: Besides hardware, software, data management, and networking, it also includes IT management, education, and other services.  Computer Hardware Trends:  Mobile Digital Platform: Mobile devices, smartphones, netbooks, tablet computers, e-book readers.  Consumerization of IT/BYOD: New consumer technologies (like personal mobile devices) spreading into business organizations, allowing employees to use personal devices for work.  Cloud Computing: Hardware and software capabilities provided as services over the Internet, offering benefits like cost efficiency, scalability, and flexibility, but also presenting challenges like security and data privacy.  Green Computing: Practices to reduce the environmental impact of computer hardware.  Autonomic Computing: Systems that can configure and heal themselves (e.g., self-updating antivirus software).  Computer Software Trends:  Operating System Software: Controls computer activities, includes GUIs, multi-touch, PC OS (Windows, UNIX, Linux), and mobile OS (Chrome, Android, iOS).  Application Software: Programming languages (C, C++, Visual Basic, Java) and desktop productivity tools (word processing, spreadsheets, data management, presentation graphics, web browsers).  Modern Trends: Open source software (Linux, Apache), cloud-based software (SaaS, Google Docs), mashups, mobile apps, Artificial Intelligence (AI) and Machine Learning (ML) for automation and decision-making, Natural Language Processing (NLP), serverless computing, cybersecurity, Robotic Process Automation (RPA), Augmented/Virtual Reality (AR/VR), 5G connectivity, sustainable software development, and human-centric design.  Data Management Technology:  File Organization Concepts: Fields, records, files, databases, entities, and attributes are fundamental concepts. Traditional file environments often suffer from data redundancy, inconsistency, program-data dependence, poor security, and lack of sharing.  Database Management Systems (DBMS): Software that centralizes data, manages it efficiently, and provides access for applications.  Relational Databases: Organize data into two-dimensional tables (relations) with columns (fields/attributes) and rows (records/tuples), using primary keys for unique identification and foreign keys to establish relationships.  Non-Relational Databases (NoSQL): Handle large, unstructured/semi-structured data sets, offering more flexible data models (e.g., for social media, graphics).  Cloud Databases: Relational database engines provided by cloud services, appealing to web-focused and small/medium businesses seeking lower costs.  Networking and Telecommunications Technology:  Computer Network: Two or more connected computers, including components like client/server computers, network interfaces, connection medium, network operating system (NOS), hubs/switches, and routers.  Key Digital Networking Technologies:  Client/server computing: Clients linked through a network controlled by a server, which sets communication rules and provides addresses. The Internet is the largest implementation.  Packet switching: Slicing digital messages into parcels (packets) and sending them along different paths for reassembly at the destination, making efficient use of network capacity.  TCP/IP: Transmission Control Protocol/Internet Protocol is the common worldwide standard for the Internet, structured into four layers: Application, Transport, Internet, and Network Interface.  Types of Networks: Local Area Networks (LANs), Campus Area Networks (CANs), Wide Area Networks (WANs), and Metropolitan Area Networks (MANs).  The Internet: The world's most extensive network, with Internet Service Providers (ISPs) providing connections, and governed by professional organizations and government bodies. It enables data transmission, website hosting, security, online transactions, marketing, and global connectivity for e-business. Services include email, chatting, FTP, World Wide Web (WWW), VoIP, and VPN Management Information Systems Study Guide I. Telecommunications, the Internet, and Wireless Technology A. Computer Networks 1. Definition: Two or more connected computers. 2. Major Components of a Simple Network:  Client computer  Server computer  Network interfaces (NIC)  Connection medium (cabling/wiring)  Network operating system (NOS)  Hub or switch  Routers 1. Networks in Large Companies:  Hundreds of local area networks (LANs) linked to a firm-wide corporate network.  Various powerful servers (Web site, intranet, extranet, backend systems).  Mobile wireless LANs (Wi-Fi networks), videoconferencing systems, telephone networks, wireless cell phones.  Corporate network infrastructure is a collection of diverse networks (public switched telephone network, Internet, corporate LANs). B. Key Digital Networking Technologies 1. Client/Server Computing:  Distributed computing model where clients are linked through a network controlled by a network server computer.  Server sets communication rules and provides addresses for clients.  The Internet is the largest implementation. 1. Packet Switching:  Method of slicing digital messages into parcels (packets).  Packets are sent along different communication paths as available and reassembled at the destination.  More efficient than circuit-switched networks. 1. TCP/IP and Connectivity:  Protocols: Rules governing information transmission between two points.  TCP/IP: Common worldwide standard, basis for the Internet.  Four Layers of TCP/IP Reference Model:  Application layer: Enables client application programs to access other layers and defines protocols.  Transport layer: Provides communication and packet services to the Application layer.  Internet layer: Responsible for addressing, routing, and packaging data packets (IP datagrams).  Network interface layer: Places and receives packets from the network medium. C. Types of Networks 1. Local-area networks (LANs) 2. Campus-area networks (CANs) 3. Wide-area networks (WANs) 4. Metropolitan-area networks (MANs) D. How the Internet Works and Supports E-Business 1. What is the Internet?: World’s most extensive network, a global computer network providing information and communication facilities using interconnected networks and protocols. 2. Internet Service Providers (ISPs): Provide connections. 3. Internet Addressing and Architecture:  IP addresses: Unique numerical labels.  Domain Name System (DNS): Converts IP addresses to domain names (hierarchical system). 1. Internet Architecture and Governance:  Network service providers own trunk lines (high-speed backbone networks).  Regional telephone and cable TV companies provide regional/local access.  Professional organizations and government bodies establish standards. 1. Trends of the Internet: IPv6 and Internet2. 2. Internet's Role in E-Business:  Enables data transmission, website hosting, security, online transactions, marketing, and global connectivity. E. Internet Services 1. E-mail 2. Chatting and instant messaging 3. Newsgroups 4. File Transfer Protocol (FTP) 5. World Wide Web (WWW) 6. VoIP (Voice over IP): Digitizes and breaks up voice messages into data packets for transmission over IP networks. 7. Virtual Private Network (VPN): Private network using a secure "tunnel" over the Internet, encoding data within IP. F. The Web 1. HTML (Hypertext Markup Language): Formats documents for display. 2. HTTP (Hypertext Transfer Protocol): Communication standard for transferring Web pages. 3. URLs (Uniform Resource Locators): Addresses of Web pages. 4. Web servers: Software for locating and managing Web pages. 5. Searching for Information on the Web:  Search engines: Keyword indexes, page ranking (Google).  Mobile search  Semantic search: Understands human language/behavior for relevant results.  Predictive search: Guesses user's intent.  Search engine marketing: Major source of Internet advertising revenue.  Social search: Includes pages visited by user's social network.  Visual search: Facial recognition software.  Intelligent agent shopping bots: Software for searching shopping information.  SEO (Search Engine Optimization): Improving rankings in search engine results. 1. Web 2.0: Second-generation services enabling collaboration, information sharing, and online content creation.  Blogs: Chronological, informal websites.  Wikis: Collaborative websites for content modification.  Social networking sites: Build communities, share information. 1. Web 3.0 and the Future Web ("Semantic Web"): Making the Web more intelligent and intuitive, with widespread use of cloud and mobile computing. G. Wireless Computer Networks and Internet Access 1. Bluetooth 2. Wi-Fi and Wireless Internet Access 3. WiMax 4. Wireless Sensor Networks II. Securing Information Systems A. System Vulnerability 1. Security: Policies, procedures, and technical measures to prevent unauthorized access or physical damage. 2. Controls: Methods, policies, and organizational procedures to ensure safety of assets, accuracy of records, and operational adherence. 3. Reasons for Vulnerability:  Hardware problems (breakdowns, configuration errors, damage).  Software problems (programming errors, installation errors, unauthorized changes).  Disasters (power failures, floods, fires).  Weaknesses or flaws in systems/networks exploitable by malicious individuals. B. System Vulnerability and Abuse 1. Malicious Software (Malware):  Viruses: Rogue programs attaching to software/data files, spread by human action.  Worms: Independent programs copying themselves over a network.  Trojan horses: Benign-appearing programs with malicious functions.  Spyware: Programs monitoring web activity for advertising.  Key loggers: Record keystrokes to steal data. 1. Hackers and Computer Crime:  Hackers vs. Crackers: Hackers build; crackers break for criminal gain (white hat hackers find vulnerabilities).  Computer crime: Violations of criminal law involving computer technology (e.g., breaching confidentiality, unauthorized access, theft of trade secrets). 1. Common Threats:  Spoofing: Using fake email addresses to deceive.  Sniffer: Eavesdropping program monitoring network information.  Denial-of-service (DoS) attacks: Flooding a server with false requests to crash it.  Distributed denial-of-service (DDoS) attacks: Using many computers for a DoS attack.  Identity theft: Stealing personal information to impersonate someone.  Phishing: Setting up fake websites/emails to obtain confidential data.  Pharming: Redirecting users to bogus web pages even with correct addresses. 1. Internal Threats: Employees with inside knowledge, sloppy procedures, lack of knowledge, social engineering (tricking employees into revealing passwords). 2. Consequences of Lack of Security Control: Loss of revenue, lowered market value, legal liability, lowered employee productivity, higher operational costs. C. Establishing a Framework for Security and Control 1. Information Systems Controls:  General controls: Hardware, software, and manual procedures for overall control (software, hardware, computer operations, data security controls).  Application controls: Specific controls unique to each computerized application (input, processing, output controls). 1. Risk Assessment: Determines risk level if a specific activity/process is not properly controlled. 2. Security Policy: Ranks information risks, identifies acceptable security goals, and mechanisms to achieve them.  Acceptable use policy (AUP): Defines acceptable uses of firm's information resources.  Authorization policies: Determine user access levels. 1. Disaster Recovery Planning: Plans for restoration of disrupted services. 2. Business Continuity Planning: Focuses on restoring business operations after a disaster. D. Technologies and Tools for Security 1. Access Control: Policies and procedures to prevent improper access.  Authorization: Permission to enter/access.  Authentication: Verifying identity (password systems, smart cards, biometric authentication). 1. Firewall: Hardware/software to prevent unauthorized access to private networks. 2. Antivirus and Antispyware Software: Checks for and eliminates malware; requires constant updating. 3. Intrusion Detection Systems: Monitor network vulnerable points to detect and block intruders. 4. Encryption: Transforming text/data into ciphertext unreadable by unintended recipients. III. Building Information Systems A. Systems as Planned Organizational Change 1. Building a new information system is a planned organizational change, involving hardware, software, jobs, skills, management, and organization. 2. Structural Organizational Changes Enabled by IT:  Automation: Increase efficiency by replacing manual tasks (e.g., barcode scanning).  Rationalization of Procedures: Streamlines standard operating procedures (e.g., optimizing inventory).  Business Process Redesign: Analyzes, simplifies, and redesigns business processes; reorganizes workflow (e.g., online shopping platform).  Paradigm Shifts: Rethinks nature of business, defines new business models (e.g., fully digital retail model). B. Systems Development Life Cycle (SDLC) 1. Systems Analysis:  Analyzes problem, defines problem and causes, specifies solutions.  Feasibility study: Determines if solution is feasible and a good investment.  Information requirements: Defines what information is needed, where, when, and how. Faulty analysis leads to failure. 1. Systems Design:  Describes system specifications.  Addresses managerial, organizational, and technological components.  End-user involvement is crucial to avoid system failure. 1. Programming: System specifications translated into software code. 2. Testing: Ensures system produces correct results.  Unit testing: Tests each program separately.  System testing: Tests functioning of system as a whole.  Acceptance testing: Ensures system is ready for production.  Test plan: Preparations for all tests. 1. Conversion: Process of changing from old to new system.  Parallel strategy: Old and new systems run simultaneously (high protection, high cost).  Direct cutover strategy: Immediately discontinues old system upon new system implementation (high risk, low cost).  Pilot study: Introduces new system to limited area first.  Phased approach: Introduces new system in stages (by function or organizational unit).  Requires end-user training. 1. Production and Maintenance:  System reviewed for revisions (post-implementation audit).  Maintenance corrects errors, meets new requirements, improves efficiency. C. Methodologies for Modeling and Designing Systems 1. Structured Methodologies:  Step-by-step, process-oriented.  Data flow diagram (DFD): Primary tool for representing component processes and data flow (logical graphic model).  Data dictionary: Defines contents of data flows and stores.  Process specifications: Describe transformations in DFDs.  Structure chart: Top-down chart showing design levels and relationships. 1. Object-Oriented Development:  Uses objects (abstract data types) as basic units.  System modeled as collection of objects and relationships.  Based on class and inheritance concepts.  Focuses on representation of classes (entities) and their relationships, with data encapsulated in objects. D. Alternative Systems-Building Approaches 1. Traditional Systems Life Cycle:  Oldest method, rigorous, formal, tight controls.  Costly, time-consuming, inflexible. 1. Prototyping:  Building an experimental system rapidly and inexpensively for end-user evaluation.  Useful when requirements are uncertain, often for user interfaces.  May not scale easily to large data/users. 1. End-User Development:  Information systems developed by end users with minimal technical assistance.  Enabled by fourth-generation languages. 1. Application Software Packages:  Pre-built software (e.g., payroll) fulfilling most organizational requirements.  Vendors provide maintenance and support. 1. Outsourcing:  Hiring external organizations to build or operate information systems.  Vendor can design/create software, or operate the entire system. E. Application Development for the Digital Firm 1. Rapid Application Development (RAD):  Creates workable systems rapidly.  Uses visual programming, automated code generation, close teamwork.  Non-sequential development. 1. Agile Development:  Rapid delivery of working software by breaking projects into small sub-projects.  Uses iteration and continuous feedback, emphasizes face-to-face communication. 1. Component-Based Development:  Building systems by assembling and integrating existing software components.  Often uses cloud services for components (e.g., shopping carts, authentication). 1. Mobile Application Development:  Different from PC development due to smaller screens.  Responsive Web design: One solution for different web sites/platforms. IV. Managing Projects A. The Importance of Project Management in IS Development 1. High failure rate in IS projects (exceeding time/budget, not meeting expectations). 2. Proper management is crucial for success. 3. Types of System Failures: Fail to capture requirements, provide benefits, poor interface, inaccurate data. 4. Consequences of Poor Project Management: Cost overruns, time slippage, lower technical performance, failure to obtain anticipated benefits. 5. Project: Temporary effort to create a unique product, service, or result; planned series of activities for specific business objectives. 6. Project Management: Application of knowledge, skills, tools, and techniques to meet specific targets within budget and time constraints. B. Project Management Variables 1. Scope: What work is/is not included. 2. Time: Amount of time required. 3. Cost: Labor, hardware, software, workspace costs. 4. Quality: How well end results meet expectations. 5. Risk: Potential problems threatening the project. C. Selecting Projects 1. Management Structure for IS Projects (Hierarchy in Large Firms):  Corporate strategic planning group: Strategic plans.  Information Systems steering committee: Senior management, approves system plans.  Project management group: IS managers and end-user managers, oversees specific projects.  Project team: Systems analysts, end-user specialists, programmers, database specialists. 1. Linking IS Projects to the Business Plan:  Develop an information systems plan as a roadmap.  Align corporate goals with IT projects and show how systems achieve them.  Set target dates and milestones for progress evaluation.  Plan hardware/telecommunications, centralization/decentralization, organizational changes (training, recruitment, process revision, structure adjustment).  Document systems applications and IT infrastructure.  Identify decision improvements and metrics for timely/precise information. 1. Information Requirements and Key Performance Indicators (KPIs):  Clear understanding of long-term and short-term information requirements.  Strategic approach focuses on critical success factors (CSFs) and KPIs reflecting priorities.  KPIs guide requirements for IS. 1. Portfolio Analysis:  Evaluates alternative system projects, inventories assets (infrastructure, contracts, licenses).  Balances risk and return of IT asset investments. D. Establishing the Business Value of Information Systems 1. Information System Costs and Benefits:  Tangible benefits: Quantifiable, assigned monetary value (e.g., labor savings).  Intangible benefits: Difficult to quantify immediately, but lead to gains (e.g., efficient customer service).  Total Cost of Ownership (TCO): Total cost of owning technology resources, beyond initial hardware/software, including maintenance, training, support.  Limitations: Focuses on costs, not benefits; excludes complexity costs and strategic factors.  Transaction systems have more measurable tangible benefits than MIS/DSS. 1. Capital Budgeting for Information Systems:  Calculates all costs and benefits to determine if a project is a good return on invested capital.  Models: Payback Method, Rate of Return on Investment (ROI), Net Present Value (NPV), Internal Rate of Return (IRR).  Limitations: Narrow focus on financial/technical; overlooks social/organizational dimensions, hidden costs (disruptions, training, productivity loss), and intangible benefits (timely decision-making, employee learning). Requires comprehensive evaluation. E. Managing Project Risk 1. Dimensions of Project Risk:  Project size: Larger projects (budget, team, time, affected units) have greater risk.  Project structure: Highly structured projects have lower failure rates. Unstructured projects with changing requirements increase risk.  Experience with technology: Lack of technical expertise increases risk.  Non-technical risk factors (information requirement complexity, scope of affected areas) also play a major role. 1. Change Management and the Concept of Implementation:  New systems cause changes in authority/power, leading to resistance.  Many IS projects fail due to insufficient attention to organizational change.  Implementation: Activities to adopt, manage, and normalize a new system. Systems analysts act as change agents.  Role of End Users: High involvement and management support are critical. Users who participate are more likely to accept the system.  Communication Issues: Users focus on business problems, specialists on technical efficiency. Bridging this gap is crucial.  Management Support: Strong backing secures resources and enforces organizational changes, signaling priority. 1. Controlling Risk Factors:  Identify nature and level of risk.  Managing Technical Complexity: Project leaders need technical and administrative experience; experienced team, frequent meetings, external expertise if needed.  Formal Planning and Controlling Tools:  Gantt chart: Lists activities, start/completion dates; visualizes task timing and duration. Does not show dependencies.  PERT chart (Program Evaluation and Review Technique): Graphically shows project tasks and interrelationships, including task dependencies. Helps identify bottlenecks.  Increasing User Involvement and Overcoming User Resistance: Involve users fully in unstructured projects. Strategies include participation, education/training, management policies, incentives, user-friendly interfaces, and solving organizational problems first. F. Project Management Software Tools 1. Define/order tasks, assign resources, set dates, track progress, facilitate modifications. 2. Automate Gantt and PERT charts. 3. Examples: Microsoft Office Project, Easy Projects .NET, Vertabase, Open Workbench, OpenProj. 4. Capabilities: Manage large projects, dispersed teams, complex tasks; support critical path analysis, resource allocation. 5. Collaborative features: Centralized data access over the Internet. 6. Social media integration and user-friendly design. 7. Project Portfolio Management: Software to manage multiple projects, compare proposals, optimize sequencing to align with goals. V. Management Information Systems (Intro) A. Introduction to Management 1. Organization: Deliberate arrangement of people to accomplish a specific purpose, with common characteristics of people, distinct purpose, and deliberate structure. 2. Management Definitions: "Art of getting things done through people" (Mary Parker), "Art of knowing what you want to do and then seeing that they do it in the best and the cheapest manner" (F.W. Taylor), "Process of planning, organizing, leading and controlling of scarce resources in an effective and efficient manner to achieve desired goals in a dynamic environment."  Efficiency: Doing things right, most output from least input.  Effectiveness: Doing the right things, attaining organizational goals. 1. Functions of Management: Planning, Organizing, Leading, Controlling. 2. Management Roles (Mintzberg): Interpersonal, Informational, Decisional. 3. Managerial Levels: First-line, Middle, Top. 4. Managerial Skills: Technical, Human, Conceptual. B. Overview of Management Information Systems (MIS) 1. Definition: System designed to manage information within an organization. Helps in decision-making, coordination, control, analysis, visualization. 2. Key Components: Technology (hardware, software, networks), People (IT staff, end users), Processes (procedures to collect, process, disseminate data). 3. Importance of MIS: Supports decision-making, improves efficiency, facilitates communication, supports strategic goals. 4. Challenges in MIS Implementation: Cost, security risks, integration issues, user resistance. 5. Trends in MIS: Cloud computing, Artificial Intelligence (AI), Big Data Analytics, Mobile and Social Platforms. C. The Role of Information Systems in Business Today 1. Information Systems Transforming Business: Increased use of wireless technology/websites, shifts in media/advertising, new laws, changes in jobs/careers. 2. Updates in MISs: Social business, collaboration, virtual organizations, cloud computing, SaaS, Big Data, mobile digital platforms. Managers use social networks, business intelligence, virtual meetings. 3. Globalization Challenges and Opportunities: Internet reduces global operating costs, increased competition, dependence on imports/exports, requires new understandings. 4. Emerging, Fully Digital Firm: Greater flexibility in organization/management; significant business relationships digitally enabled and mediated; core processes through digital networks. 5. Interdependence Between Organizations and Information Systems: Changes in strategy, rules, processes require changes in IT. What an organization can do depends on its systems. 6. Strategic Business Objectives of Information Systems:  Operational Excellence: Improved efficiency, higher profits.  New Products, Services, and Business Models: IT as enabling tool (business model describes how company creates wealth).  Customer and Supplier Intimacy: Returning customers, vital inputs from suppliers.  Improved Decision Making: Accurate, real-time information for managers.  Competitive Advantage: Doing things better, charging less, real-time response.  Survival: Necessities of business (industry changes, competitors, regulations). D. Perspectives of Information Systems 1. Information and Data:  Data: Streams of raw facts.  Information: Data shaped into meaningful, useful form. 1. IT and IS:  Information Technology (IT): Hardware and software used to achieve objectives.  Information System (IS): Interrelated components that collect, process, store, distribute information to support decision making, control, analysis, visualization, product creation. 1. Activities in an Information System: Input, Processing, Output, Feedback. 2. Information Systems are More Than Computers: Require understanding of organization, people, and information technology. 3. Dimensions of Information Systems:  Organizations: Coordinate work through hierarchy and business processes (related tasks/behaviors). Culture embedded in IS.  People: Skilled people needed to build, maintain, use. Employee attitudes affect productivity. Managers perceive challenges, set strategy, allocate resources.  Technology: IT Infrastructure (hardware, software, data management, networking, telecommunications, Internet, Web, extranets, intranets, voice/video). VI. The Problem-Solving Approach and Business Organizations A. The Problem-Solving Approach 1. Business problems are complex, involving Organization, Technology, and People. 2. Typical Organizational Problems: Outdated processes, unsupportive culture, political infighting, turbulent environment, task complexity, inadequate resources. 3. Typical Technology Problems: Insufficient/aging hardware, outdated software, inadequate database capacity, insufficient telecommunications, incompatibility, rapid change. 4. Typical People Problems: Lack of training, difficulty evaluating performance, compliance, work environment, poor management, lack of employee support. 5. Four-Step Process:  Problem Identification: Agreement on problem, definition, causes, what can be done with resources.  Solution Design: Many possible solutions, consider range.  Solution Evaluation and Choice: Factors include cost, feasibility, implementation time.  Implementation: Building/purchasing, testing, training, change management, outcome measurement, feedback. 1. Problem-solving is a continuous process, not a single event; solutions may need adjustment. B. The Role of Critical Thinking in Problem Solving 1. Prevents jumping to conclusions, misjudging problems, wasting resources. 2. Critical Thinking: Questioning, analyzing, interpreting, evaluating, and judging; sustained suspension of judgment with awareness of multiple perspectives. 3. Four Elements of Critical Thinking:  Maintaining doubt and suspending judgment.  Being aware of different perspectives (technology, organization, people).  Testing alternatives and letting experience guide.  Being aware of organizational and personal limitations. C. Global E-Business and Collaboration 1. Organizing a Business:  Business: Formal organization making products/services for profit.  Four Basic Business Functions: Manufacturing/production, Sales/marketing, Finance/accounting, Human resources.  Basic Business Entities: Suppliers, Customers, Employees, Invoices/payments, Products/services. 1. Business Process: Unique ways organizations coordinate work, information, knowledge; manner in which activities are organized to produce a valuable product/service. Can be assets or liabilities.  Some are functional (e.g., identifying customers), some are cross-functional (e.g., fulfilling customer order).  IT enhances processes by increasing efficiency (automating), enabling new processes (changing flow, parallel steps, eliminating delays, supporting new models). 1. Managing a Business and Firm Hierarchies: Firms coordinate work through hierarchy (Senior, Middle, Operational management; Knowledge, Data, Production/service workers). Each level has different information needs. 2. The Business Environment: Organizations must monitor and respond to environment (customers, suppliers, competitors, socioeconomics, politics, technology, global events). D. Types of Business Information Systems 1. Systems for Management Decision Making and Business Intelligence:  Transaction Processing Systems (TPS): Serve operational managers/staff; perform/record daily routine transactions; monitor operations; serve predefined, structured goals.  Business Intelligence: Data and software tools for organizing/analyzing data to enhance decisions.  Business Intelligence Systems:  Management Information Systems (MIS): Provide middle managers with reports on firm performance; monitor firm, predict future; summarize TPS data; typically not flexible.  Decision Support Systems (DSS): Serve middle managers; support nonroutine decision making; use internal/external information; often on powerful PCs.  Executive Support Systems (ESS): Serve senior managers; address strategic issues/long term trends, nonroutine decisions; generalized computing capacity; draw summarized info from MIS/DSS/external events; typically use portals/digital dashboards.  Relationship of Systems: TPS is major data source for others; ESS receives data from lower-level systems; data exchanged between systems. E. Systems for Linking the Enterprise (Enterprise Applications) 1. Span functional areas, execute processes across firm, include all management levels. 2. Four Major Types:  Enterprise Systems (ERP): Integrate data from key business processes into single system; speed communication, increase flexibility/accuracy, enable overall view of operations.  Business Value: Increase operational efficiency, firm-wide info for decision making, rapid response to customer requests, analytical tools.  Supply Chain Management (SCM) Systems: Manage relationships with suppliers, purchasing, distributors, logistics. Goal: move correct product from source to consumption quickly and at lowest cost. Interorganizational system.  Supply Chain: Network for procuring, transforming, distributing materials/products.  Global Supply Chain Issues: Geographic distance, time differences, complex pricing, foreign regulations.  Push-based model (build-to-stock) vs. Pull-based model (demand-driven/build-to order). SCM facilitates efficient customer response (match supply to demand, reduce inventory/costs, improve delivery/time to market).  Customer Relationship Management (CRM) Systems: Manage customer relationships; coordinate business processes dealing with customers (sales, marketing, service) to optimize revenue, satisfaction, retention. Integrates customer-related processes and consolidates info from multiple channels.  Operational CRM: Customer-facing applications (sales force automation, call center support, marketing automation).  Analytical CRM: Analyzes customer data from operational CRM, based on data warehouses; calculates Customer Lifetime Value (CLTV).  Business Value: Increased customer satisfaction, effective marketing, lower acquisition/retention costs, increased sales, reduced churn rate (customers stopping purchases).  Knowledge Management Systems (KMS): Support processes for acquiring, creating, storing, distributing, applying knowledge; integrate internal/external knowledge.  Include enterprise-wide systems managing digital knowledge objects, knowledge directories, office systems.  Knowledge: Firm asset, intangible; creation from data/info requires resources; explicit (documented) or tacit (in minds); knowing how/why things happen. Wisdom is applying knowledge.  Knowledge Management Value Chain: Knowledge acquisition, storage, dissemination, application. Each stage adds value. F. Enterprise Application Challenges 1. Require fundamental changes (technology, business processes, organizational). 2. Incur switching costs, dependence on software vendors. G. Systems that Span the Enterprise (Other Tools) 1. Intranets: Internal networks using Internet tools/standards; internal info distribution, corporate policies, connect to transaction systems. 2. Extranets: Intranets extended to authorized external users (suppliers, customers); facilitate info flow, collaboration. H. E-Business, E-Commerce, E-Government 1. E-business: Use of digital technology and Internet to drive major business processes. 2. E-commerce: Subset of e-business; buying/selling goods/services through Internet. 3. E-government: Using Internet technology to deliver info/services to citizens, employees, businesses. 4. Eight Unique Features of E-Commerce Technology:  Ubiquity: Available everywhere, anytime.  Global Reach: Reaches across national boundaries.  Universal Standards: One set of Internet standards.  Richness: Supports video, audio, text.  Interactivity: Works through user interaction.  Information Density: Vast increases in available information.  Personalization/Customization: Modifies messages/goods.  Social Technology: Promotes user content and social networking. 1. E-commerce Types: Business-to-consumer (B2C), Business-to-business (B2B), Consumer to-consumer (C2C).  Mobile Commerce (M-commerce): E-commerce via mobile platforms. 1. Effects of the Internet on the Marketplace:  Reduces information asymmetry, search costs, transaction costs, menu costs.  Enables price discrimination, dynamic pricing, disintermediation (removal of intermediaries).  Builds strong networks. 1. Digital Goods: Goods delivered over a digital network (music, software, books). High first unit cost, low delivery cost. 2. M-Commerce Applications: Location-based services, banking, wireless advertising, games. I. Systems for Collaboration and Teamwork 1. Collaboration: Working with others for shared, explicit goals. Growing importance due to changing nature of work, professional work, firm organization/scope, emphasis on innovation, changing culture. 2. Social Business: Using social networking platforms to engage employees, customers, suppliers; deepens interaction, expedites info sharing, requires info transparency. 3. Business Benefits of Collaboration: Productivity, quality, innovation, customer service, financial performance. 4. Building Collaborative Culture: Senior managers rely on teams; policies/products/systems rely on teams. 5. Tools and Technologies: Email/IM, social networking, wikis, virtual worlds, Internet based collaboration, virtual meeting systems, Google Apps, Microsoft SharePoint.  Time/Space Collaboration Tool Matrix: Classifies technologies by time (same/different) and place (remote/co-located). VII. Information Systems, Organizations, and Strategy A. Information Technology and Organizations Influence One Another 1. Complex reciprocal relationship influenced by structure, business processes, politics, culture, environment, management decisions. B. What is an Organization? 1. Technical Definition: Stable, formal social structure taking resources from environment to produce outputs; legal entity with internal rules and social structure. 2. Behavioral Definition: Collection of rights, privileges, obligations, responsibilities, balanced over time through conflict resolution. C. Features of Organizations 1. Hierarchical structure, accountability, impartial decision making, efficiency. 2. Routines (Standard Operating Procedures): Precise rules for expected situations. 3. Business Processes: Collections of routines. Firms are collections of business processes. New IS applications require changes to routines/processes. 4. Organizational Politics: Divergent viewpoints lead to struggle; political resistance hinders change. 5. Organizational Culture: Set of assumptions defining goals and products; powerful unifying force but also a restraint on change. 6. Organizational Environments: Reciprocal relationship; organizations are open/dependent on environment, can influence it. Environments change faster. IS can be instrument of environmental scanning. 7. 5 Basic Kinds of Organizational Structure: Entrepreneurial, Machine bureaucracy, Divisionalized bureaucracy, Professional bureaucracy, Adhocracy. 8. Other Organizational Features: Mission/Vision/Goals, Workforce Characteristics, Leadership Styles (Autocratic, Democratic, Transformational, Transactional, Laissez-Faire, Situational, Coaching), Operational Processes. D. How Information Systems Impact Organizations and Business Firms 1. Economic Impacts: IT changes relative costs of capital and information; IS technology is a factor of production; affects cost/quality of information. 2. Organizational and Behavioral Impacts: IT flattens organizations (decision making to lower levels, fewer managers needed). 3. Organizational Resistance to Change: IS become bound in politics (influence access to information); potentially change structure, culture, politics, work. Most common reason for large project failure. 4. The Internet and Organizations: Increases accessibility, storage, distribution of information/knowledge; lowers costs. E. Organizational Factors to Consider When Planning a New System 1. Environment, Hierarchy, Specialization, Routines, Business Processes, Culture and politics, Type of organization, Leadership style, Main interest groups/end user attitudes, Tasks/decisions/processes the system will assist. F. Using Information Systems to Achieve Competitive Advantage 1. Firms become leaders by having special resources or using common resources more efficiently. 2. Porter's Competitive Forces Model: Five forces shape firm's fate:  Traditional/Existing competitors  New market entrants (low barriers to entry in some industries)  Substitute products and services  Suppliers (market power impacts profits)  Customers (power grows if they can easily switch) 1. Information System Strategies for Dealing with Competitive Forces:  Align IT with business objectives.  Low-cost leadership: Achieve lowest operational costs/prices.  Product differentiation: Enable new products/services, change customer experience.  Focus on market niche: Specialize.  Strengthen customer and supplier intimacy: Tighten linkages, increase switching costs/loyalty. 1. The Internet's Impact on Competitive Advantage: Enables new products/services, encourages substitutes, lowers entry barriers, changes power balance, transforms industries, creates new opportunities. 2. The Business Value Chain Model: Highlights activities where competitive strategies can apply and IS have strategic impact. 3. Extending the Value Chain: The Value Web: Firm's value chain linked to suppliers, distributors, customers. Value web is a collection of independent firms using IT to coordinate value chains. Flexible, adapts to changes. 4. Synergies, Core Competencies, and Network-Based Strategies:  Synergies: Output of one firm used as input to another; pooling markets/expertise; lower costs, generate profits; enabled by IS.  Core Competency: Activities for which firm is world-class leader; relies on knowledge gained over years; IS encouraging knowledge sharing enhances competency.  Network-based strategies:  Network economics: Marginal costs of adding participants near zero (e.g., Internet).  Virtual company: Uses networks to link people/resources/allies without traditional boundaries. 1. Management Issues in Using IS for Competitive Advantage:  Sustaining competitive advantage: Not always sustainable as competitors can copy.  Performing strategic systems analysis: Understand industry structure, firm value chains.  Managing strategic transitions: Adopting strategic systems requires changes in goals, relationships, processes. VIII. IT Infrastructure: Hardware and Software A. IT Infrastructure 1. Definition: Set of physical devices and software to operate an enterprise; platform for supporting all IS. 2. Components: Computer hardware, computer software, data management technology, networking/telecommunications technology, IT management/education/services. B. Evolution of IT Infrastructure 1. Storage, Input, and Output Technology:  Primary Storage: RAM (temporary), Cache Memory (fast, frequently accessed data).  Secondary Storage: Hard Disk Drives (long-term), Optical disks (CD, DVD), Flash Drives, Cloud Storage.  Input Devices: Gather and convert data to electronic form (keyboard, mouse, touch screen, OCR, MICR, scanner, audio, sensors).  Output Devices: Display processed data (monitor, printer, audio output). C. Contemporary Hardware Trends 1. The Mobile Digital Platform: Mobile devices, smartphones, netbooks, tablets, e-book readers. 2. Consumerization of IT: New technology from consumer market spreads to businesses.  BYOD (Bring Your Own Device): Business use of personal mobile devices.  Cloud Services and Applications: Employees use personal cloud-based apps for work.  Social Media and Collaboration Tools.  Shadow IT: Employees use unapproved personal apps/devices. 1. Nanotechnology: Uses individual atoms/molecules to create tiny computer chips/devices (nanotubes as powerful conductors). 2. Cloud Computing: Model where firms/individuals obtain computing resources over the Internet (hardware/software as services). Access applications/IT infrastructure anywhere.  Business Benefits: Cost efficiency, scalability, flexibility, reliability, security, collaboration, innovation, green computing, maintenance, cost predictability, resource utilization, geographical reach.  Disadvantages: Security concerns, data privacy, downtime, costs, data transfer/bandwidth costs, Internet dependency.  Benefited Businesses: Startups, small businesses, e-commerce, SaaS providers, remote teams, data-intensive businesses, disaster recovery, global enterprises, innovative businesses. 1. Green Computing: Practices/technologies for designing, making, using, disposing of computer hardware to reduce environmental impact (power reduction). 2. Autonomic Computing: Systems that configure/heal themselves (e.g., self-updating antivirus). D. The Major Types of Software 1. System Software: Operating systems, language translators, utility programs. Controls computer activities.  Operating System Software: GUIs, multitouch. PC OS (Windows, UNIX, Linux), Mobile OS (Chrome, Android, iOS). 1. Application Software: Programming languages, fourth-generation languages. Works through system software. User interacts with application software.  Programming Languages for Business: C, C++, Visual Basic, Java.  Software Packages and Desktop Productivity Tools: Word processing, spreadsheet, data management, presentation graphics, web browsers. E. Software Trends 1. Open Source Software: Linux, Apache. 2. Cloud-based Software and Tools: SaaS (Software as a Service) like Google Docs. 3. Mashups: Combining multiple applications/services (e.g., Zip Realty using Google Maps and Zillow.com). 4. Apps: Mobile applications. 5. Artificial Intelligence (AI) and Machine Learning (ML): Integration for automation, decision-making, personalization. NLP for chatbots, virtual assistants. 6. Serverless Computing: Developers write code without managing infrastructure. 7. Cybersecurity and Privacy: Software security integrated throughout development (DevSecOps). 8. Robotic Process Automation (RPA). 9. Augmented and Virtual Reality (AR/VR). 10. 5G and Connectivity. 11. Sustainable Software Development. 12. Human-Centric Design. 13. Remote Work and Collaboration Tools. IX. Databases and Information Management A. File Organization Concepts 1. Field: Group of characters (word/number). 2. Record: Group of related fields. 3. File: Group of records of same type. 4. Database: Set of files; collection of related files containing records. 5. Entity: Person, place, thing on which information is stored and maintained. 6. Attributes: Specific characteristics/qualities describing an entity. B. Problems with the Traditional File Environment 1. Data Redundancy: Duplicate data in multiple files. 2. Data Inconsistency: Same attribute has different values. 3. Program-Data Dependence: Changes in program require changes to data accessed. 4. Lack of Flexibility: Cannot deliver ad hoc reports or respond to unanticipated requirements. 5. Poor Security: Little control, easy access/dissemination. 6. Lack of Data Sharing and Availability: Information in different files/parts of organization cannot be related or shared. C. The Database Approach to Data Management 1. Database: Collection of data organized to serve many applications efficiently by centralizing and controlling redundant data. 2. Database Management System (DBMS): Software permitting an organization to centralize data, manage efficiently, and provide access to stored data by application programs. 3. Relational Database: Organizes data into two-dimensional tables (relations/files) with columns (fields/attributes) and rows (records/tuples). One table per entity.  Primary key: Unique identifier for all info in any row; cannot be duplicated.  Examples: Microsoft Access, Oracle Database, MySQL. 1. Capabilities of DBMS:  Data definition capability: Specifies structure and content of database; creates tables, defines field characteristics.  Data dictionary: Stores definitions of data elements and characteristics.  Data manipulation language: Adds, edits, deletes, retrieves data (e.g., SQL). D. Designing Databases 1. Requires conceptual (logical) design (abstract model from business perspective) and physical design (how data is arranged on storage devices). 2. Design process identifies relationships, redundant data, effective grouping, application program needs. 3. Entity-Relationship Diagram (ERD): Models data logically before implementation; identifies relationships/dependencies; ensures data integrity/normalization.  Key Components: Entities (rectangles), Attributes (ovals), Key Attribute (underlined, unique identifier), Relationships (diamonds).  Cardinalities: One-to-One (1:1), One-to-Many (1:M), Many-to-Many (M:N).  Tools: Microsoft Visio, SmartDraw, MySQL. 1. Normalization: Streamlines complex data groups to minimize redundancy, awkward many-to-many relationships, increase stability/flexibility. 2. Referential Integrity Rules: Ensures consistency in relationships between coupled tables (e.g., cannot add record with foreign key unless corresponding record in linked table exists). 3. Establishing Relationships: ERD clarifies table relationships. Relational tables can have one-to-one, one-to-many, or many-to-many relationships (latter requires a "join table" or intersection relation). 4. Non-Relational Databases ("NoSQL"): Developed for large, unstructured/semi structured datasets; use flexible data models, don't require extensive structuring (e.g., social media, graphics); Example: Amazon’s SimpleDB. 5. Cloud Databases: Relational database engines provided by cloud services (e.g., Amazon Relational Database Service); appeal to Web-focused businesses, small/medium businesses seeking lower costs. E. Using Databases to Improve Business Performance and Decision Making 1. Big Data: Massive sets of unstructured/semi-structured data from Internet/networked services; provides opportunities for patterns/insights (e.g., customer behavior, weather patterns); requires new technologies/tools. 2. Business Intelligence Infrastructure: Tools for obtaining useful information from internal/external systems and big data.  Data Warehouses: Stores current/historical data for decision makers; consolidates, standardizes data; provides query/analysis/reporting tools; data can be accessed but not altered.  Data Marts: Subset of data warehouses; summarized/focused portion of firm’s data for specific users/single subject.  Hadoop: Open-source framework for big data; breaks tasks into sub-problems, distributes processing to inexpensive nodes; combines results.  In-Memory Computing: Uses RAM for data storage; eliminates bottlenecks, shortens query response times, lowers costs.  Analytic Platforms: Preconfigured hardware-software systems for query processing/analytics; use relational/non-relational tech for large datasets. 1. Analytical Tools: Relationships, Patterns, Trends:  Multidimensional Data Analysis (OLAP): Supports viewing data in different ways using multiple dimensions (product, pricing, cost, region, time); provides online answers to ad hoc questions.  Data Mining: Finds hidden patterns/relationships in large databases, infers rules to predict future behavior. Types: Associations, Sequences, Classifications, Clustering, Forecasting.  Text Mining: Extracts key elements, discovers patterns, summarizes large unstructured text data (e.g., emails, call transcripts). Sentiment analysis.  Web Mining: Discovery/analysis of patterns from the Web (e.g., customer behavior, website evaluation).  Web Content Mining: Mines content of websites.  Web Structure Mining: Mines website structural elements (links).  Web Usage Mining: Mines user interaction data from web servers. 1. Databases and the Web: Many companies make internal databases available to customers/partners via Web (Web server, application server/middleware, database server). F. Establishing an Information Policy 1. Information Policy: States organization’s rules for organizing, managing, storing, sharing information; specific procedures, accountabilities for information, user/unit sharing, distribution, update/maintenance responsibilities. 2. Data Administration: Responsible for specific policies/procedures to manage data as a resource. 3. Database Administration: Designs/manages database structure/content, maintains database. G. Ensuring Data Quality 1. Poor data quality is a major obstacle. Caused by redundant/inconsistent data, input errors. 2. Data Quality Audit: Structured survey of accuracy/completeness of data (surveying entire files, samples, or end-user perceptions). 3. Data Cleansing: Detects and corrects incorrect, incomplete, improperly formatted, and redundant data. Quiz: Short Answer Questions 1. Explain the primary difference between a Denial-of-Service (DoS) attack and a Distributed Denial-of-Service (DDoS) attack. 2. Describe the concept of "packet switching" and explain why it is more efficient than older "circuit-switched" networks. 3. What are the four main strategies for converting from an old information system to a new one, as discussed in the systems development process? Briefly explain one strategy. 4. Define "prototyping" in the context of systems development. When is this approach particularly useful? 5. What are "intangible benefits" of information systems? Provide two examples. 6. Explain the concept of "normalization" in database design. What are its primary goals? 7. Differentiate between "data redundancy" and "data inconsistency" in a traditional file environment. Why are these problems for organizations? 8. Briefly describe what a "Virtual Private Network (VPN)" is and how it functions to protect data transmitted over the Internet. 9. In the context of the Internet's impact on the marketplace, what is "disintermediation"? Provide a simple example. 10. What is the main purpose of an "Entity-Relationship Diagram (ERD)" in database design? Name two key components of an ERD. Answer Key 1. A DoS attack involves flooding a server with requests from a single source to overload it and crash the network. A DDoS attack is a more sophisticated version where thousands of compromised computers are used to launch the DoS attack simultaneously, making it much harder to block and identify the source. 2. Packet switching is a method where digital messages are sliced into small parcels (packets), which are then sent along various available communication paths and reassembled at their destination. This is more efficient than circuit-switched networks because it doesn't require a dedicated, complete point-to-point circuit to be established beforehand, making better use of network capacity. 3. The four main conversion strategies are Parallel, Direct Cutover, Pilot Study, and Phased Approach. For example, the Parallel strategy involves operating both the old and new systems simultaneously for a predefined period, comparing their outputs to ensure the new system functions correctly before fully transitioning. 4. Prototyping involves rapidly and inexpensively building an experimental system for end users to evaluate. This approach is particularly useful when there is uncertainty about the system's requirements or design solutions, especially for designing the end-user interface of an information system. 5. Intangible benefits are gains from information systems that are difficult to quantify immediately but can lead to measurable improvements over time. Two examples include efficient customer service, which can lead to increased customer loyalty, and enhanced decision-making, which can improve business outcomes. 6. Normalization is the process of streamlining complex groups of data in a database to minimize redundant data elements and awkward many-to-many relationships. Its primary goals are to increase the stability, flexibility, and efficiency of the database by ensuring data integrity. 7. Data redundancy refers to the presence of duplicate data across multiple files within an organization, leading to wasted storage space. Data inconsistency occurs when the same attribute has different values in different files due to redundancy. These are problems because they lead to data errors, make data difficult to manage, and hinder accurate reporting. 8. A Virtual Private Network (VPN) is a private network created by linking computers securely over the public Internet. It protects data by encoding it and "wrapping" it within the Internet Protocol, creating a secure "tunnel" that allows private communication through the public network. 9. Disintermediation, in the context of the Internet's impact on the marketplace, refers to the removal of organizations or business process layers responsible for intermediary steps in a value chain. A simple example is a consumer buying a book directly from an author's website instead of through a traditional bookstore or online retailer. 10. The main purpose of an Entity-Relationship Diagram (ERD) is to logically model data before implementing a database, helping to identify relationships and dependencies among data elements. Two key components of an ERD are Entities (representing objects or concepts) and Attributes (representing characteristics of an entity). Essay Format Questions 1. Discuss the critical role of management support and end-user involvement in the successful implementation of new information systems. Explain how a lack of either can contribute to project failure, and propose strategies for fostering both throughout the systems development lifecycle. 2. Compare and contrast the concepts of "automation," "rationalization of procedures," "business process redesign," and "paradigm shifts" as structural organizational changes enabled by IT. Provide a distinct example for each type of change, illustrating how IT facilitates its implementation and impact on an organization. 3. Analyze the strategic business objectives that drive firms to invest heavily in information systems. Select at least three of these objectives and explain how specific information systems (e.g., TPS, MIS, CRM, SCM) contribute to achieving each objective, providing examples where appropriate. 4. Evaluate the advantages and disadvantages of "cloud computing" for businesses, particularly focusing on how its benefits and drawbacks might apply differently to various types of organizations (e.g., startups, large enterprises, data-intensive businesses). 5. Describe Porter's Competitive Forces Model and explain how a firm can use information system strategies to deal with each of these forces. Provide specific examples of how IT can enable a firm to achieve low-cost leadership, product differentiation, market niche focus, and strengthened customer/supplier intimacy. Glossary of Key Terms  Acceptance Testing: The final stage of testing that ensures the new system is ready to be used in a production setting and meets all specified business requirements.  Agile Development: A systems development methodology that focuses on rapid delivery of working software by breaking large projects into small, iterative sub-projects and emphasizing continuous feedback and collaboration.  Analytical CRM: Customer relationship management applications that analyze customer data (often from operational CRM systems and data warehouses) to provide insights into customer behavior and value.  Application Control: Specific controls unique to each computerized application (e.g., payroll or order processing) that ensure only authorized data are completely and accurately processed.  Application Layer (TCP/IP): The top layer of the TCP/IP model that enables client application programs to access the other layers and defines the protocols used by applications.  Autonomic Computing: The development of systems that can configure themselves, optimize their performance, heal themselves when broken, and protect themselves from outside intruders.  Automation: The first and most common form of IT-enabled organizational change, which increases efficiency by replacing manual tasks with technology.  Big Data: Massive sets of unstructured and semi-structured data from the Internet and networked services and applications that are too large or complex to be dealt with by traditional data-processing application software.  Business Continuity Planning: Focuses on how a company can restore business operations after a disaster, often in conjunction with disaster recovery planning.  Business Intelligence (BI): Data and software tools for organizing, analyzing, and providing access to data to help managers and other users make more informed decisions.  Business Process Redesign: A more powerful type of organizational change than rationalization, involving analyzing, simplifying, and redesigning business processes to reorganize workflow, combine steps, and eliminate repetition.  Cache Memory: Extremely fast memory placed between the CPU and RAM to store frequently accessed data, reducing CPU access time and improving performance.  Capital Budgeting Models: Techniques used to measure the value of investing in long term capital investment projects by calculating their costs and benefits, such as Payback Method, ROI, NPV, and IRR.  Churn Rate: The number of customers who stop purchasing products or services from a company during a specific period, serving as an indicator of the growth or decline of the firm's customer base.  Client/Server Computing: A distributed computing model where clients (user computers) are linked through a network controlled by a network server computer, which sets communication rules and provides addresses.  Cloud Computing: A model of computing where hardware and software capabilities are provided as services over the Internet, allowing firms and individuals to obtain computing resources on demand.  Component-Based Development: A system-building approach that enables a system to be built by assembling and integrating existing software components, often from cloud services.  Conceptual Design (Database): An abstract model of the database from a business perspective, outlining entities, attributes, and relationships without specifying physical storage details.  Critical Success Factors (CSFs): A strategic approach to identifying information requirements that focuses on the handful of activities or variables that are absolutely essential for the success of a business.  Customer Lifetime Value (CLTV): A measure of the revenue produced by a specific customer, the expenses incurred in acquiring and servicing that customer, and the expected life of the relationship between the customer and the company.  Data Administration: The function responsible for specific policies and procedures through which data can be managed as an organizational resource.  Data Cleansing: A process that detects and corrects incorrect, incomplete, improperly formatted, and redundant data in a database.  Data Definition Capability: A feature of a DBMS that allows users to specify the structure and content of the database, including creating database tables and defining the characteristics of fields.  Data Dictionary: An automated or manual file that stores definitions of data elements and their characteristics in a database.  Data Flow Diagram (DFD): The primary tool for representing a system’s component processes and the flow of data between them in structured methodologies, offering a logical graphic model of information flow.  Data Inconsistency: The condition where the same attribute may have different values in different parts of a database due to data redundancy.  Data Manipulation Language (DML): A language (like SQL) used to add, change, delete, and retrieve data from the database.  Data Mart: A subset of a data warehouse that is typically a summarized or highly focused portion of an organization's data, used by a specific population of users or focusing on a single subject.  Data Mining: Tools for analyzing large databases to find hidden patterns and relationships and infer rules from them to predict future behavior.  Data Quality Audit: A structured survey of the accuracy and completeness of data in an information system, which can be performed by surveying data files or end users.  Data Redundancy: The presence of duplicate data in multiple data files, which can lead to data inconsistency and inefficient storage.  Data Warehouse: A database that stores current and historical data of interest to decision makers, consolidating and standardizing data from various operational systems for analysis and reporting.  Denial-of-Service (DoS) Attack: Flooding a server with thousands of false requests to crash the network or make a website unavailable to legitimate users.  Digital Firm: An organization in which nearly all of the significant business relationships with customers, suppliers, and employees are digitally enabled and mediated, and core business processes are accomplished through digital networks.  Digital Goods: Goods that can be delivered over a digital network, such as music tracks, video, software, newspapers, and books.  Direct Cutover Strategy: A conversion strategy that involves implementing the new system with immediate discontinuation of the old system.  Disaster Recovery Planning: Devises plans for the restoration of disrupted computing and communications services after events like natural disasters, power outages, or cyberattacks.  Disintermediation: The removal of organizations or business process layers responsible for intermediary steps in a value chain.  Distributed Denial-of-Service (DDoS) Attack: A DoS attack that uses many different computers to flood a target server with requests, making it harder to block.  Domain Name System (DNS): A hierarchical system that converts human-friendly domain names (e.g., www.example.com) into numerical IP addresses.  Dynamic Pricing: The practice of changing the price of a product or service in real time based on market demand, customer characteristics, or supply situation of the seller.  E-business: The use of digital technology and the Internet to execute major business processes within an organization.  E-commerce: The subset of e-business that involves buying and selling goods and services over the Internet.  E-government: The application of Internet technology to deliver information and services to citizens, employees, and businesses.  Efficiency: Doing things right, or getting the most output from the least amount of inputs.  Effectiveness: Doing the right things, or completing activities so that organizational goals are attained.  Encryption: The process of transforming text or data into cipher text that cannot be read by unintended recipients, protecting information during transmission and storage.  End-User Development: The development of information systems by end users with little or no formal assistance from technical specialists, often using fourth-generation languages.  Enterprise Resource Planning (ERP) Systems: Also called enterprise systems, these integrate data from key business processes into a single software system, enabling information to flow seamlessly throughout the organization.  Entity: A person, place, thing, or event about which information is stored and maintained in a database.  Entity-Relationship Diagram (ERD): A diagramming tool used in database design to model data logically, representing entities and their relationships.  Extranets: Private intranets that are extended to authorized users outside the company, facilitating the flow of information between a firm and its suppliers and customers.  Feasibility Study: An analysis conducted during the systems analysis phase to determine whether a solution is achievable from a technical, financial, and organizational perspective, and if it's a good investment.  Field: A group of characters (as words or numbers) that describes an entity in a database, representing an attribute.  File: A group of related records of the same type in a database.  Firewall: Hardware and/or software that acts as a barrier to prevent unauthorized users from accessing private networks.  Gantt Chart: A visual tool used in project management that lists project activities and their corresponding start and completion dates, representing each task as a horizontal bar.  General Controls: Overall controls that apply to all computerized applications and pertain to the hardware, software, and manual procedures used to create an overall control environment.  Green Computing: Practices and technologies for designing, manufacturing, using, and disposing of computer hardware to reduce its environmental impact, with a key priority on power reduction.  Hackers: Individuals who gain unauthorized access to computer systems, often for the challenge; "crackers" are hackers who do so for criminal gain.  Hadoop: An open-source software framework from Apache designed for big data, which breaks data tasks into sub-problems and distributes processing to many inexpensive computer processing nodes.  Hypertext Markup Language (HTML): A page description language used for creating Web pages and formatting documents for display on the Web.  Hypertext Transfer Protocol (HTTP): The communications standard used to transfer Web pages from a Web server to a client's own computer.  Identity Theft: The theft of personal information (e.g., Social Security ID, driver’s license numbers, credit card numbers) to impersonate someone else.  Implementation: In the context of the problem-solving approach, it involves building or purchasing the solution, testing it, providing employee training, managing change, and measuring outcomes. In systems development, it involves all activities aimed at adopting, managing, and normalizing a new system.  In-Memory Computing: A technique used in big data analysis that uses a computer's main memory (RAM) for data storage, dramatically shortening query response times and lowering processing costs.  Information Asymmetry: A situation where one party in a transaction has more or better information than the other, often reduced in digital markets.  Information System (IS): A set of interrelated components that collect, process, store, and distribute information to support decision making, coordination, control, analysis, visualization, and product creation.  Information Systems Steering Committee: A senior management group with responsibility for systems development and operation, reviewing and approving plans for systems in all divisions.  Information Technology (IT): All the hardware and software that a business uses to achieve its objectives.  Input Controls: Application controls that check data for accuracy and completeness when they are entered into a system.  Instant Messaging (IM): A type of chat service that enables real-time, text-based conversations between two or more users over the Internet.  Internet Layer (TCP/IP): The layer of the TCP/IP model responsible for addressing, routing, and packaging data packets (IP datagrams) across the network.  Intranets: Internal organizational networks built using Internet and World Wide Web standards and technologies, used for internal distribution of information and as repositories of corporate policies and data.  Intrusion Detection Systems: Tools that monitor vulnerable points on networks to detect and deter intruders, often by placing continuous monitoring software on network access points.  IP Address: A unique string of numbers separated by periods that identifies each computer or device connected to a network.  Java: An operating-system-independent, processor-independent, object-oriented programming language designed to run on any device.  Key Loggers: Spyware programs that record every keystroke made on a computer to steal serial numbers, passwords, and launch Internet attacks.  Key Performance Indicators (KPIs): Measures that reflect the organization’s priorities, influenced by the industry, firm, managers, and broader environment, guiding the requirements for information systems.  Knowledge Management Systems (KMS): Systems that support the creation, capture, storage, distribution, and application of knowledge and expertise within an organization.  Local Area Network (LAN): A computer network that spans a relatively small physical area, such as a single building or a few buildings in close proximity.  Malware: Malicious software programs, such as viruses, worms, and Trojan horses, that are designed to disrupt computer operation, gather sensitive information, or gain unauthorized access.  Management Information Systems (MIS): Systems that provide middle managers with reports on the organization's performance, summarizing and reporting on basic operations using data from TPS.  Mashups: Software applications that combine two or more online applications or data sources to create a new service or functionality.  Menu Costs: The costs to merchants of changing prices, which are reduced in digital markets due to ease of online updates.  M-commerce (Mobile Commerce): The use of handheld wireless devices (like smartphones and tablets) to conduct commercial transactions.  Multidimensional Data Analysis (OLAP): A feature of business intelligence that enables users to view the same data in different ways using multiple dimensions, allowing for ad hoc querying and rapid online answers.  Nanotechnology: The use of individual atoms and molecules to create computer chips and other devices thousands of times smaller than current technologies.  Network Interface Layer (TCP/IP): The lowest layer of the TCP/IP model, responsible for placing packets on and receiving them from the network medium.  Network Operating System (NOS): Software that manages network resources and functions, enabling computers to communicate and share resources.  Normalization: The process of streamlining complex groups of data in a database to minimize redundant data elements and awkward many-to-many relationships, increasing data integrity and flexibility.  Object-Oriented Development: A systems development approach that uses the object (an abstract data type with encapsulated data and behavior) as the basic unit of systems analysis and design.  Operational CRM: Customer-facing applications such as sales force automation, call center and customer service support, and marketing automation systems.  Operational Excellence: A strategic business objective focused on achieving higher profits through improved efficiency and productivity, often enabled by information systems.  Outsourcing: The practice of a firm contracting out the development or operation of information systems to an external organization that specializes in providing these services.  Packet Switching: A method of slicing digital messages into parcels (packets), sending them along different communication paths as they become available, and then reassembling them at the destination.  Paradigm Shift: The most radical type of organizational change enabled by IT, involving rethinking the nature of the business and the organization itself, often leading to new business models.  Parallel Strategy: A conversion strategy where both the old and new information systems operate simultaneously for a predefined period, allowing for comparison of outputs and offering high protection against new system failure.  Phased Approach: A conversion strategy that introduces the new system in stages, either by functions or by organizational units, allowing for gradual implementation and adjustment.  Pharming: A form of cyberattack that redirects users to a bogus Web page, even when they type the correct Web page address into their browser, often to trick them into revealing personal data.  Phishing: Setting up fake Web sites or sending e-mail messages that look like legitimate businesses to trick users into revealing confidential personal data.  Physical Design (Database): Shows how the database is actually arranged on direct access storage devices, including specific details about file organization, indexing, and data storage.  Pilot Study: A conversion strategy that introduces the new system first to a limited area of the organization, and once it is working correctly, it is then installed throughout the rest of the organization.  Pipelining: Not directly defined in sources.  Porter's Competitive Forces Model: A framework that analyzes the competitive forces shaping the fate of a firm: traditional competitors, new market entrants, substitute products/services, suppliers, and customers.  Predictive Search: A search engine feature that guesses what a user is looking for and suggests search terms or completes queries as they are typed.  Primary Key: A field in a database table that uniquely identifies each record in that table and cannot be duplicated.  Process Specifications: Descriptions of the transformations that occur within the lowest level of data flow diagrams, detailing the logic for each process.  Programming: The stage in systems development where system specifications from the design stage are translated into software program code.  Project Management: The application of knowledge, skills, tools, and techniques to project activities to meet specific targets within specific budget and time constraints.  Protocols: Rules that govern the transmission of information between two points in a network.  Prototyping: A systems-building approach that consists of building an experimental system rapidly and inexpensively for end users to evaluate, often used when requirements are uncertain.  Pull-Based Model: A supply chain model (also called demand-driven or build-to-order) where customer orders trigger events in the supply chain, moving from production to meet demand.  Push-Based Model: A supply chain model (also called build-to-stock) where production schedules are based on forecasts or best guesses of demand, and products are "pushed" to customers.  Rapid Application Development (RAD): A process for creating workable systems in a very short period of time, utilizing techniques like visual programming, automated code generation, and close teamwork.  Rationalization of Procedures: An IT-enabled organizational change that streamlines standard operating procedures, often found in continuous quality improvement programs.  Record: A group of related fields that describes an entity in a database.  Referential Integrity Rules: Rules in a relational database that ensure that relationships between coupled tables remain consistent, for example, by preventing the creation of a foreign key if no corresponding primary key exists.  Relational Database: A database that organizes data into two-dimensional tables (called relations or files) with columns (fields/attributes) and rows (records/tuples).  Remote Work: Not explicitly defined.  Responsive Web Design: A design approach that allows a website to adapt its layout and content to display optimally on a variety of devices, from desktop computers to mobile phones.  Risk Assessment: Determines the level of risk to a firm if a specific activity or process is not properly controlled.  Routers: Devices used to forward data packets between different computer networks, enabling communication across multiple interconnected networks.  Routines: Precise rules, procedures, and practices (also known as standard operating procedures) developed by organizations to cope with virtually all expected situations.  Search Engine Marketing: A major source of Internet advertising revenue that involves various techniques to improve the visibility of a website in search engine results.  Search Engine Optimization (SEO): The process of improving rankings in search engine results organically, without paid advertisements.  Security Policy: A statement that ranks information risks, identifies acceptable security goals, and specifies the mechanisms for achieving these goals within an organization.  Semantic Search: A type of search technology whose goal is to include an understanding of human language and behavior to deliver more relevant search results.  Server Computer: A computer on a network that provides resources, data, services, or programs to other computers (clients).  Serverless Computing: An architecture where developers focus on writing code without managing the underlying server infrastructure, which is automatically handled by a cloud provider.  Shadow IT: The use of information technology systems and solutions within an organization without the explicit approval or knowledge of the IT department.  Sniffer: An eavesdropping program that monitors information traveling over a network, often for malicious purposes like stealing data.  Social Business: The use of social networking platforms (like Facebook, Twitter, or internal corporate tools) to engage employees, customers, and suppliers, with the goal of deepening interaction and expediting information sharing.  Social Search: An effort to provide more relevant search results by including pages visited by a user’s social network.  Solution Design: The second step in the problem-solving process, involving the consideration of as many possible solutions as possible to understand the range of alternatives.  Spoofing: Misrepresenting oneself by using fake e-mail addresses or masquerading as someone else, often to deceive recipients.  Spyware: Small programs that install themselves covertly on computers to monitor user Web surfing activity and serve up advertising.  Structured Methodologies: Systems development techniques that are step-by-step, progressive, and typically process-oriented, focusing on modeling the actions that manipulate data.  Structure Chart: A top-down chart used in structured design that shows each level of design, its relationship to other levels, and its place in the overall design structure.  Supply Chain Management (SCM) Systems: Information systems that manage relationships with suppliers, purchasing firms, distributors, and logistics companies to optimize the flow of products from source to consumption.  Synergies: When the output of some firms can be used as inputs to other firms, or when two firms can pool markets and expertise, leading to lower costs and increased profits.  System Testing: A testing stage that tests the functioning of the entire information system as a whole, including its components and interactions.  Systems Analysis: The first stage of systems development, involving the analysis of the problem to be solved by a new system, defining requirements, and conducting feasibility studies.  Systems Design: The stage in systems development that describes the system specifications that will deliver the functions identified during systems analysis, addressing managerial, organizational, and technological components.  Systems Development: The activities that go into producing an information system solution to an organizational problem or opportunity, typically including six core activities.  Systems Life Cycle: The oldest method for building information systems, a phased approach to building complex systems that requires rigorous and formal requirements analysis and tight controls.  TCP/IP (Transmission Control Protocol/Internet Protocol): The common worldwide standard that is the basis for the Internet, defining how computers communicate across networks.  Technical Skills: Job-specific knowledge and techniques needed to proficiently perform work tasks.  Telecommunications: The exchange of information over significant distances by electronic means.  Testing: The stage in systems development that ensures the system produces the right results, including unit, system, and acceptance testing.  Text Mining: Tools for extracting key elements from, discovering patterns in, and summarizing large unstructured data sets (e.g., e-mails, memos, call center transcripts).  Total Cost of Ownership (TCO): A measure that designates the total cost of owning technology resources, including all IT expenditures beyond initial hardware/software costs, such as maintenance, training, and support.  Transaction Processing Systems (TPS): Basic business systems that serve operational managers and staff, performing and recording daily routine transactions necessary to conduct business.  Transport Layer (TCP/IP): The layer of the TCP/IP model responsible for providing the Application layer with communication and packet services, ensuring reliable data transfer.  Trojan Horse: A software program that appears to be benign but then does something other than what is expected, often carrying a virus or other malicious code.  Uniform Resource Locators (URLs): The addresses of Web pages on the Internet.  Unit Testing: A testing stage that tests each program in a system separately to ensure it performs correctly.  Value Web: A collection of independent firms that use information technology to coordinate their value chains to collectively produce a product or service, characterized by flexibility and adaptability.  Virtual Company: An organization that uses networks to link people, resources, and alliances with other companies to create and distribute products or services without traditional organizational boundaries or physical locations.  Virtual Private Network (VPN): A private network of computers linked using a secure "tunnel" connection over the Internet, encoding data to protect it during transmission.  Visual Search: A search technology that uses facial recognition software or image recognition to identify and retrieve information based on visual input.  Voice over IP (VoIP): Technology that digitizes and breaks up voice messages into data packets that may travel along different routes before being reassembled at the final destination, enabling voice communication over IP networks.  Web 2.0: Second-generation Internet-based services that enable people to collaborate, share information, and create new services online, including blogs, wikis, and social networking sites.  Web 3.0 (Semantic Web): The future vision of the Web, aiming to make it more "intelligent" and intuitive by enabling computers to understand the meaning of information, facilitating more productive and meaningful searches.  Web Mining: The discovery and analysis of useful patterns and information from the Web, encompassing web content mining, web structure mining, and web usage mining.  Wide Area Network (WAN): A computer network that spans a large geographical distance, often connecting multiple LANs across cities, states, or even countries.  Wi-Fi: A standard for wireless local area networks (WLANs) that allows devices to connect to the Internet or other networks using radio waves.  Wiki: A collaborative website where visitors can add, delete, or modify content on the site, often used for knowledge sharing and collaborative document creation.  Worm: An independent computer program that copies itself from one computer to other computers over a network without human intervention.