BASICS OF

INFORMATION
TECHNOLOGIES
Course 17581 – Bachelor´s in Management and Technology

Fernando Alfayate Fernandez

2022/2023
Tabla de contenido
1. INTRO TO BUSINESS INFORMATION SYSTEMS .........................................................................................4
1.1 COMPONENTS OF AN INFORMATION SYSTEM ......................................................................................................................4
1.2 TYPES OF DATA .......................................................................................................................................................................4
1.2.1 ANALOGUE DATA vs DIGITAL DATA.....................................................................................................................................4
1.3 DATABASE ...............................................................................................................................................................................4
1.4 DATA VS INFORMATION .........................................................................................................................................................5
1.5 CHARACTER STRING................................................................................................................................................................5
1.6 NUMERIC DATA TYPES............................................................................................................................................................5
1.7 BOOLEAN DATA ......................................................................................................................................................................5
1.8 BINARY NUMBERS ..................................................................................................................................................................5
1.9 BYTE ........................................................................................................................................................................................6

2. COMPUTER BASED INFORMATION SYSTEMS ...........................................................................................7

2.1 MAIN CONCEPTS.....................................................................................................................................................................7
2.2 MAIN COMPONENTS ..............................................................................................................................................................7
2.3 CENTRAL PROCESSING UNIT ...................................................................................................................................................7
2.4 RANDOM ACCESS MEMORY ...................................................................................................................................................7
2.5 DATABASE MANAGEMENT .....................................................................................................................................................8
2.6 TELECOMUNICATION SYSTEMS ..............................................................................................................................................8
2.6.1 COMPUTER NETWORK ........................................................................................................................................................8

3. INFORMATION SYSTEMS: APPLICATIONS AND IMPACT ..........................................................................10

3.1 WHAT IS E-COMMERCE? ..................................................................................................................................................... 10
3.1.1 BUSINESS TO CONSUMER (B2C) ....................................................................................................................................... 10
3.1.2 BUSINESS TO CONSUMER (B2C) ....................................................................................................................................... 10
3.1.3 CONSUMER TO CONSUMER (C2C) ................................................................................................................................... 10
3.1.4 E-GOVERNMENT ............................................................................................................................................................... 10
3.1.5 ADVANTAGES OF E-COMMERCE ...................................................................................................................................... 10
3.1.6 ADVANTAGES OF M-COMMERCE ..................................................................................................................................... 11
3.2 E – COMMERCE & M – COMMERCE: BUYING AND SELLING ON WEB AND MOBILE DEVICES ........................................... 11
3.2.1 WHAT IS BUSINESS INTELLIGENCE?.................................................................................................................................. 11
3.2.2 PREDICTIVE ANALYTICS .................................................................................................................................................... 11
3.2.3 ONLINE ANALYITICAL PROCESSING .................................................................................................................................. 11
3.3 SYSTEM DEVELOPMENT PROCESS: OVERVIEW AND IMPACTS ........................................................................................... 11
3.3.1 TYPES OF PROCESSES ........................................................................................................................................................ 12
3.3.2 IMPACT TO ORGANIZATIONS ........................................................................................................................................... 12
3.4 INFO SYSTEMS: ROLES, GLOBAL ISSUES & EMERGING TRENDS .......................................................................................... 13
3.4.1 COMMUNICATIONS .......................................................................................................................................................... 13
3.4.2 INFORMATION PROCESSING ............................................................................................................................................ 13
3.4.3 DECISION MAKING ............................................................................................................................................................ 13
3.4.4 INVENTORY ....................................................................................................................................................................... 13

4. VIRTUALIZATION AND DATA SERVICES ..................................................................................................14

4.1 VIRTUALIZATION: DEFINITION & BENEFITS ................................................................................................................... 14
4.2 HISTORY OF VIRTUALIZATION: OVERVIEW AND TIMELINE ........................................................................................... 14
4.3 WHAT IS DATA CENTRE VIRTUALIZATION? ................................................................................................................... 15

5. BUSINESS INFO SYSTEMS (ENTERPRISE SYSTEMS FOR BUSINESS – PART 1) .............................................16

5.1 TRANSACTION PROCESSING SYSTEM ............................................................................................................................ 16
5.1.1 BATCH vs REAL TIME PROCESSING ............................................................................................................................ 16
5.1.2 TYPES OF TRANSACTION PROCESSING SYSTEMS ...................................................................................................... 16
5.1.3 CHARACTERISTICS OF TPS.......................................................................................................................................... 17
5.2 APPLICATIONS & EXAMPLES OF TPS.............................................................................................................................. 17
5.3 ENTERPRISE SOFTWARE FOR BUSINESS APPLICATIONS................................................................................................ 17
 An enterprise software is a central system that ensures information is shared across al functional areas and
levels of management within an organization. ................................................................................................................... 17

6. BUSINESS INFO SYSTEMS (ENTERPRISE SYSTEMS FOR BUSINESS – PART 2) .............................................19

6.1 ENTERPRISE RESOURCE PLANNING: USING ERP TO INTEGRATE BUSINESSES PROCESSES........................................... 19
6.2 CUSTOMER RELATIONSHIP MANAGEMENT: USING CRM TO FOCUS ON CUSTOMERS ................................................ 19
6.2.1 TYPES OF CRM SYSTEMS ................................................................................................................................................... 20

7. BUSINESS INFO SYSTEMS (ENTERPRISE SYSTEMS FOR BUSINESS) – PART 3 .............................................21

7.1 JUST IN TIME INVENTORY .............................................................................................................................................. 21
8.1.1 ADVANTAGES & DISADVANTAGES OF JIT ......................................................................................................................... 21
7.2 ENTERPRISE RESOURCE PLANNING SYSTEMS ACCOUNTING ........................................................................................ 22
7.2.1 KEY MODULES OF ERP ACCOUNTING SOFTWARE ............................................................................................................ 22
7.2.2 KEY MODULES OF ERP FINANCE SYSTEM ......................................................................................................................... 22
7.3 PRODUCT LIFECYCLE MANAGEMENT: DEFINITION & TOOLS ........................................................................................ 23
7.3.1 PRODUCT LIFE CYCLE MANAGEMENT PROCESSES .................................................................................................... 23
7.3.2 PRODUCT LIFE CYCLE MANAGEMENT STRATEGIES ................................................................................................... 23
7.4 SUPPLY CHAIN MANAGAMENT IN THE BUSINESS ......................................................................................................... 23
7.4.1 TYPES OF SUPPLY CHAIN MODELS............................................................................................................................. 23

8. ELECTRONIC & MOBILE COMMERCE (PART – 1) ..................................................................................... 25

8.1 BUSINESS TO CONSUMER (B2C) E-COMMERCE. DEFINITION & EXAMPLES. ................................................................ 25
8.1.1 E-COMMERCE ............................................................................................................................................................ 25
8.1.2 BENEFITS OF E-COMMERCE....................................................................................................................................... 25
8.2 BUSINESS TO BUSINESS (B2B) E-COMMERCE. DEFINITION & EXAMPLES. .................................................................... 26
8.2.1 TYPES OF B2B TRANSACTIONS .................................................................................................................................. 26
8.2.2 B2B IS CONDUCTED VIA DIFFERENT CATEGORIES OF WEBSITES .............................................................................. 26
8.2.3 BENEFITS OF B2B ....................................................................................................................................................... 26
8.3 CONSUMER TO CONSUMER (C2C) E-COMMERCE. DEFINITION & EXAMPLES. ............................................................. 27
8.3.1 ADVANTAGES OF C2C ................................................................................................................................................ 27
8.3.2 DIASDVANTAGES OF C2C ........................................................................................................................................... 27
8.3.3 ADVANTAGES OF C2C FOR BUYERS ........................................................................................................................... 27
8.3.4 DISADVANTAGES OF C2C FOR BUYERS...................................................................................................................... 27

9. ELECTRONIC & MOBILE COMMERCE (PART – 2) ..................................................................................... 28

9.1 WEB APPLICATIONS IN BUSINESS INFORMATION SYSTEMS ......................................................................................... 28
9.1.1 TYPES OF WEB APPLICATIONS ................................................................................................................................... 28
9.2 CLICKSTREAM ANALYSIS ................................................................................................................................................ 29
9.2.1 USES OF CLICKSTREAM ANALYSIS.............................................................................................................................. 29
9.2.2 HOW TO DO CLICKSTREAM ANALYSIS? ..................................................................................................................... 29
9.2.3 HOW TO COLLECT DATA FOR CLICKSTREAM ANALYSIS? .......................................................................................... 29
9.3 E-COMMERCE INFRASTRUCTURE .................................................................................................................................. 29
9.3.1 OBJECTIVES ................................................................................................................................................................ 29
9.3.2 CRITERIA FOR EVALUATING E-COMMERCE INFRASTRUCTURE ................................................................................. 30
9.3.3 FOCUS POINTS FOR WEB INFRASTRUCTURE STRATEGY ........................................................................................... 30
9.3.4 ASPECTS OF E-COMMERCE INFRASTRUCTURE.......................................................................................................... 30
9.3.5 BUSINESS & FUNCTIONAL PLANNING ....................................................................................................................... 30

10. DECISION MAKING & SPECIALIZED INFORMATION SYSTEMS (PART – 1).................................................. 31

10.1 DECISION MAKING IN ORGANIZATIONS ........................................................................................................................ 31
10.1.1 PROGRAMMED vs NON-PROGRAMMED DECISIONS ................................................................................................ 31
10.1.2 OPTIMIZATION, SATISFICING AND HEURISTIC APPROACHES.................................................................................... 31
10.1.3 BENEFITS & DISADVANTAGES OF INFORMATION AND DECISION SUPPORT SYSTEMS ............................................ 32
10.2 MANAGEMENT INFORMATION SYSTEMS (MIS) ............................................................................................................ 32
10.2.1 INPUTS & OUTPUTS TO A MIS ................................................................................................................................... 32
10.2.2 CHARACTERISTICS OF MIS ......................................................................................................................................... 32
 10.2.3 FUNCTIONAL ASPECTS OF MIS .................................................................................................................................. 32
10.3 DECISION SUPPORT SYSTEMS (DSS) .............................................................................................................................. 34

11. DECISION MAKING & SPECIALIZED INFORMATION SYSTEMS (PART – 2).................................................. 35

11.1 KNOWLEDGE MANAGEMENT: CAPTURE, STORE & SHARE INFORMATION WITH KM.................................................. 35
11.1.1 KNOWLEDGE CREATION ............................................................................................................................................ 35
11.1.2 KNOWLEDGE STORAGE ............................................................................................................................................. 35
11.1.3 KNOWLEDGE SHARING .............................................................................................................................................. 35
11.1.4 KNOWLEDGE USAGE.................................................................................................................................................. 35
11.2 USING ARTIFICIAL INTELLIGENCE AND EXPERT SYSTEMS TO SOLVE COMPLEX PROBLEMS ......................................... 35
11.2.1 TYPES OF AI ................................................................................................................................................................ 35
11.2.2 KNOWLEDGE BASE..................................................................................................................................................... 36
11.3 USING ARTIFICIAL INTELLIGENCE AND EXPERT SYSTEMS TO SOLVE COMPLEX PROBLEMS ......................................... 36
11.3.1 IMPACT OF VIRTUAL REALITY .................................................................................................................................... 37
11.4 GEOGRAPHIC INFORMATION SYSTEM .......................................................................................................................... 37
11.4.1 HOW DOES GIS WORK? ............................................................................................................................................. 37
11.4.2 GIS CAN BE USED IN DIFFERENT FIELDS .................................................................................................................... 37

12. PERSONAL & SOCIAL IMPACT OF COMPUTERS (PART – 1) ......................................................................39

12.1 IMPACT OF COMPUTERS ON WORK ENVIRONMENTS AND PRIVACY ........................................................................... 39
12.1.1 PRIVACY ..................................................................................................................................................................... 39
12.1.2 TECHNOLOGIES THAT HELP PROTECT YOUR PRIVACY .............................................................................................. 39
12.2 CYBERCRIME .................................................................................................................................................................. 40
12.2.1 DDoS ATTACKS ........................................................................................................................................................... 40
12.2.2 BOTNETS .................................................................................................................................................................... 40
12.2.3 PHISING...................................................................................................................................................................... 40
12.2.4 CYBERSTALKING ......................................................................................................................................................... 41
12.2.5 SOCIAL ENGINEERING ................................................................................................................................................ 41
12.2.6 POTENTIALLY UNWANTED PROGRAMS .................................................................................................................... 41
12.2.7 THEFT ......................................................................................................................................................................... 41
12.2.8 EXPLOIT KITS .............................................................................................................................................................. 41
12.2.9 ONLINE SCAMS .......................................................................................................................................................... 41
12.2.10 PROHIBITED/ILLEGAL CONTENT ............................................................................................................................ 41
12.3 CYBERTERRORISM ......................................................................................................................................................... 41

13. PERSONAL & SOCIAL IMPACT OF COMPUTERS (PART – 2) ......................................................................42

13.1 MALWARE ...................................................................................................................................................................... 42
13.1.1 MALWARE TYPES ....................................................................................................................................................... 42
13.1.2 ANTI-MALWARE STRATEGIES .................................................................................................................................... 42
13.2 SECURITY MANAGEMENT.............................................................................................................................................. 42
13.2.1 THREATS TO SECURITY MANAGEMENT..................................................................................................................... 42
13.2.2 CYBER-SECURITY DEFENSES....................................................................................................................................... 43
13.3 INTELLECTUAL PROPERTY AND OPEN SOURCE SOFTWARE: ISSUES AND CONCERNS .................................................. 43
13.3.1 COPYRIGHT EXCLUSIVE RIGHTS ..................................................................................................................................... 43
13.3.2 OPEN SOURCE SOFTWARE............................................................................................................................................. 44
13.4 ETHICAL ISSUES IN MANAGING TECHNOLOGY IN BUSINESS ........................................................................................ 44
1. INTRO TO BUSINESS INFORMATION SYSTEMS
Information systems are at the intersection of technology, people, and processes within an organization, and they are
a key part of businesses and integrate technology and human resources to achieve organizational goals.

1.1 COMPONENTS OF AN INFORMATION SYSTEM

Information systems are at the intersection of technology, people, and processes within an organization, and they are
a key part of businesses and integrate technology and human resources to achieve organizational goals.
Technology: hardware, software, data, and network communication. Hardware are the physical pieces of technology.
Software are the programs that run within hardware. Data is the collection of information into what´s known as a
database. Finally, Network Communication involves the tools that allow people to communicate electronically. This is
done through software, just like data is often collected and stored, but as it is an integral part of a company´s function,
network communication should be considered as an element of technology.
The most central key of information systems are people, including all the different roles they play in an enterprise: desk
workers, programmers, the CIO, and other key players.
 Chief Information Officer oversees the people processes and technology within a company´s IT organization
to ensure that they deliver outcomes that are in line with the businesses’ goals.
 Programmer designs software and websites for the company.
 Desk workers assist employees with technical issues.

1.2 TYPES OF DATA

Data refers to raw information that consists of facts and figures. The computer data definition includes any raw
information that is stored on a computer, such as numerical data, images, coding, notes, and financial data.
However, Data refers to the plural form, meaning several pieces of data included. Though the term is commonly used
as both singular and plural, technically the singular form of data is datum, derived from Latin which means “to give”.
1.2.1 ANALOGUE DATA vs DIGITAL DATA
Analogue data uses values that change smoothly. A good example of this is a clock, which shows the time in a smooth
movement of the seconds, minutes, and hours, in a continuous way. Digital data jumps from one value to next, in a
step-by-step sequence. The change is discrete.
So, the difference resides in the way they are stored and transmitted. Analog data is stored as wave signals, while
digital data is stored in binary bits. Moreover, Analogue data uses sine waves, whilst digital data uses square waves:

Computers finitely store digital data, meaning there is a limit to the amount of it, while analog is infinite. Analog also
may include noise references as it records the soundwaves, while digital data can reduce noise as it is transmitted.
Due to the recent advancements in digital technology, digital data has increased in its use while analogue has
decreased. Digital data provides more clarity in the transmitted content and offers more security than analogue data.

1.3 DATABASE
A database is an organized collection of data; a compilation that may be sorted according to the type of formats, such
as images and text. It may also include a combination of different data formats.
The purpose of a database is to organize the data. It may be listed in alphabetical order or based on the types of files
collected. Storing data into a database makes the data searchable and easily retrievable.
A flat file is a smaller database that only includes one table of data. Flat file databases are used for smaller amounts
of data. They can also be used to separate categories with different types of data.
Data can come from a variety of sources besides databases: APIs; social media; CRMs.
  Application Programming Interface: type of software that typically uses the internet to process data for
computer applications. It is typically used for programs that require data, such as updates. It makes the process
of sending and receiving data more simplified.

 Social media: platforms store data from users and accounts. Data may be extracted or downloaded depending
on the site's settings. Social media data can be useful for companies. For example, businesses that track their
social media stats could benefit from using this data.

 Customer Relationship Management: a system used to store data about customers. These are commonly
used by retailers and other organizations that conduct business with customers.

1.4 DATA VS INFORMATION

Data is the facts given that may be represented as text, numbers, or images.
Information refers to the use of data to understand something. It focuses on the data collected to conclude, make an
interpretation, or help provide an understanding. The information essentially makes sense of the data provided.

1.5 CHARACTER STRING

One of the most basic data types is plain text. In database terminology, this is referred to as a character string, or
simply a string.
A string represents alphanumeric data. It means that a string can contain many different characters but are all
considered as if they were text and not put into calculations, even if the characters are numbers. (Example Excel)

1.6 NUMERIC DATA TYPES

Generally, you store numbers only as a numeric data type if they represent a count or measurement of some kind and
if it makes sense to perform calculations with them.

 An integer is a numeric value without a decimal. Integers are whole numbers and can be positive or negative.
An integer cannot be a decimal or a fraction
 In a database, a distinction is made between short and long integers, referring to how much data storage is
used for the number.
o A short integer is typically stored using 16 bits, which means that you can store up to 2^16, or 65,536
unique values.
o For any number larger than that, you would need to use a long integer, which uses 32 bits or more.

 A number with a decimal is referred to as decimal, float or double.

o The decimal, double and float variable types are different in the they store values:
▪ Float – 32 bit (7 digits)
▪ Double – 64 bits (15 - 16 digits)
▪ Decimal – 128 bits (28 – 29 digits)
When to use Decimal, Double or Float?
In the case of Decimal when we must deal with financial applications because it gives a high accuracy level, thus making
it is easy to avoid rounding errors.
In the case of Double they are the most used data type for real values.
In the case of Float, it is most used in graphic libraries because they require high processing power.

1.7 BOOLEAN DATA

The Boolean data can only represent two values: true and false. Zero (0) represents false, and one (1) represents true.

1.8 BINARY NUMBERS

The binary system is also known as the base two numeral system. It uses only two digits, 0 and 1, but it can represent
every number that the decimal system can.

 Any system of measurement that records a pass/fail state or a yes/no state is essentially a binary system in
its most basic form.
1.9 BYTE
A bit is the smallest unit of data that can be represented on a computer. Binary uses two numbers, either a 1 or a 0.
These are stored in the computer's memory. Bits are very tiny and the computer changes information into bits and saves
the bits. Then it can translate the bits back into information.
A bit can either be 0 (zero) representing no charge (off) or 1 (one) representing a full charge (on). This of these like a
light switch that is either off or on. There are no other characters or symbols understood by the digital computer.
Because a bit is so small, the computer groups these bits into sets of eight, called bytes.
A byte is a set of eight bits. The total possible combinations of these eight bits equals 256 distinct values. This covers
the alphabet, special characters, and more.
When people refer to the quantity of information in a computer's memory, they typically use bytes. Each byte acts as
one unit, but each of these units is made of the eight bits.
2. COMPUTER BASED INFORMATION SYSTEMS
2.1 MAIN CONCEPTS
Data is one piece of a record. Individually, some of your data might be your first name, last name, address. When we
put together this information, we see a record.

 If a company stored its employee´s data and compiled them as a record, and those records processed into an
employee list, we would then have a database or a collection of related records. Companies store these
records in a digital format, and through input devices they are turned into usable data.
Hardware are the parts of the computer that are tangible and can be physically touched. Peripheral devices surround
the system unit and connect to it by wired or wireless technology to the system unit. Peripherals communicate with the
interior components of the system unit via installed software.

 Internal hardware names the internal components of a computer; CPU, RAM, Graphics Card, ROM…
 External hardware connects to the computer and control either input or output functions.
System software is a computer program that runs the hardware and interacts with the application software to create
a complete user experience. It is made up of programs written in low-level languages that are used to communicate
with hardware. Ex: Linkers, Bootstrap, BIOS.
Operating system is a piece of software that manages software and hardware of a computer. Its job is to serve as a
link.
Application software is a program specially tailored for end-users. Ex: Microsoft Office.

2.2 MAIN COMPONENTS

Networks is a group of computer stations connected that allow for sharing of resources
Laptops are for users who prefer portability. Desktop is intended for a user who does not need a portable computer.
Motherboard is the basis of a computer. CPU is the brain of a computer; it sits on the motherboard. Commonly installed
processors have quad-cores or four separated processors in one component. There are six-core or eight-core CPUs.
ROM is in the motherboard as well. It is a permanent, non-volatile memory. As soon as the computer is turned on, the
start-up instructions are stored in ROM. Cache memory is a chip-based component that improves the speed of
retrieving data from a computer due to its temporary storage nature. The cache memory provides the CPU with the
quickest access to memory functions.
Hard Drive (HDD). Attached to the motherboard, it does not sit directly on it. It stores software you´ve put in there. It
also stores data files of those programs, but in the last years there is a growing development of Soft Drive (SSD).
Video card; Sound card; Network card…
Optical drives read and write with a laser. Not used nowadays, the most common were DVDs, CDs, and Blu Rays.
Peripherals are the components that sit around the system unit and are usually connected to it by USB ports.

2.3 CENTRAL PROCESSING UNIT

Roles:
1. Receive data
2. Process data
3. Provide an output of the processed data
4. Store the data
Responsible for carrying out all logical and mathematical calculations needed.
CPU receives input data from devices like the mouse and keyboards => processes the information, which is done
through calculations or technical algorithms => provides the user with output through external devices (screen, printer,
speaker) => stores the processed data for future uses in the HDD or SSD.

2.4 RANDOM ACCESS MEMORY

RAM
Next to the CPU sits the Cache, or temporary memory where things you are working on sit for short periods of time.
- Nonvolatile since data is lost
- Primary memory of a computer
- User can alter the data
- High speed
RAM stores information currently used by the computer since it´s much faster to read. CPU uses it as a temporary bank
to store its information, and the data it holds can be easily accepted.

2.5 DATABASE MANAGEMENT

The most common data types are text, numbers, images…
Organized in a database. The benefits of the use of a database are various: organization and storage of large amounts
of data; easily to search data using identifiers; constant update of the data; link between different databases; different
roles for each user; access from different origins.

2.6 TELECOMUNICATION SYSTEMS

Collection of nodes and links to enable telecommunication. Telecommunication is communication at a distance using
electrical signals or electromagnetic waves. Components of a telecommunications network:
- Input and output devices. Also known as terminals, which provide the starting and stopping points of all
communication.
- Telecommunication channels. Which transmit and receive data.
- Telecommunication processors. Provide several control and support functions.
- Control software. Responsible for controlling the network functionality and activities.
- Messages represent the actual data transmitted.
- Protocols specify how each type of telecommunication systems handle the message.

2.6.1 COMPUTER NETWORK

System of computers and peripheral devices that are connected. Computers can communicate with each other to share
information. Each of them has its own network address, so it can be identified among all the computers in the network.
Computers are connected through wired and wireless connections. Wired connections consist of actual physical cables,
make out of copper wire of fiber optics. Wireless connections do not use physical cables but transfer data using internet.
We need computer networks because they make it possible to transfer data between computer s without having to use
physical media. Advantages:

 File sharing
 Internet connection
 Peripheral devices sharing
 Cost efficiently
 Increased storage capacity.
CLASSIFICATION OF COMPUTER NETWORKS

 Network size
o LAN – Local Area Network
o MAN – Metropolitan Area Network
o WAN – Wide Area Network

 Transmission media
o Describes the material substances that carry energy waves, which include the data being transferred.
 Management method
o Include peer-to-peer, mainframes, and client/server.
o In a peer-to-peer network, the tasks are allocated among all the members of the network and there is
 no real hierarchy
o In a client/server network, several network clients or workstations request resources or services from
the network. One or more servers manage and provide these resources or services.
o In mainframe networks, a very powerful computer does the processing, and very basic terminals are
used to access it.
 Network typology
o Point to Point
o Bus
o Ring
o Star
o Tree, Mesh, Hybrid
BANDWIDTH. Also known as DATA TRANSFER RATE is typically expressed in Mbps or Gbps. COST. The cost of
installing the network hardware, such as cables and switches; and the cost of running and maintenance. RELIABILITY.
It refers to how often the network underperforms. More reliable networks usually have backup systems.
3. INFORMATION SYSTEMS: APPLICATIONS AND IMPACT
3.1 WHAT IS E-COMMERCE?
The purchasing and selling of items and services and the transaction of information funds over the internet, also known
as computer network.
E-commerce has enabled different functions: advertising, servicing, digital payments and delivering. Many local and
international businesses have shifted to practicing transactions through e-commerce.
E-commerce website: term used to describe a website that facilitates the purchase and sale of tangible goods,
services, and digital commodities. Customers may place purchases, pay, track shipping, and receive customer care.
 Types of commerce classified by the nature of transaction
o Business to Business (B2B)
o Business to Consumer (B2C)
o Business to Government (B2G)
o Consumer to Consumer (C2C)
o Consumer to Business (C2B)
 Market efficiency is improved:
o Eliminates the intermediary (suppliers and distributors). It enables consumers to purchase products
directly from the manufacturer.
o Provides an easy way to acquire pricing information. Consumers easily search and compare prices.
o Provides sellers with price elasticity information. This means that sellers can gauge the demand for a
product based on the fluctuations in price.

3.1.1 BUSINESS TO CONSUMER (B2C)

Whereby business sell their products and services directly to the end-user, usually through electronic storefronts:

 Webpages that represent a specific store. Specially for low-value commodities and typically have a quick
purchasing process.
o Walmart is a good example, where final users are the individuals who purchase the products
manufactured.

3.1.2 BUSINESS TO CONSUMER (B2C)

Two companies make transactions between themselves.

 Raw material suppliers sell to manufacturers => Manufacturers sell to distributors => Distributors sell to retailers
=> Retailers sell to clients.
o A good example are technological companies, (e.g., HP) that sell devices to retailers (e.g., Media Markt)
3.1.3 CONSUMER TO CONSUMER (C2C)
Refers to one individual selling a product to another individual. This often occurs through online auctions or
clearinghouses, Auctions match buyers and sellers that engage in bidding processes over the web.

 Clearinghouses: arrange for the purchase and delivery of goods from a third party. They act as an intermediary
to facilitate the purchase of an item.

3.1.4 E-GOVERNMENT
E-government: citizens of a country access public services via electronic means. E-government offers new avenues
for direct government access and immediate government service delivery for citizens.
3.1.5 ADVANTAGES OF E-COMMERCE
 Streamlined purchasing

 Facilitates the creation of a store and a product catalog

  It possesses cost-saving measures

 It has advertising and marketing that isn´t too pricey.

 Customers will be able to adjust their schedules to suit their needs.

 No restrictions
 It can respond more quickly to the needs of the buyer or the market.

3.1.6 ADVANTAGES OF M-COMMERCE

 It allows people to gain easy access to the store.
 Improved usability as a new marketing channel is created.

 It allows tracking the location and receiving notifications customized to one´s likes.

 New customers are drawn in, resulting in better ROI.

3.2 E – COMMERCE & M – COMMERCE: BUYING AND SELLING ON WEB AND MOBILE DEVICES
3.2.1 WHAT IS BUSINESS INTELLIGENCE?
BI is a computerized intelligence system that helps organizations collect, manage, and interpret data needed to make
decisions. It employs a combination of tools, such as:
- Database management
- Decision Support systems
- Data mining
- Statistical analysis
How is BI different from a general decision support system?
1. First, BI is not focused on supporting a specific type of decision, but on all the operations of a company.
2. Second, BI often takes place on a continuous basis in close to real-time.
3. Third, BI has an element of intelligence, which means it tries to integrate information internal to the organization
and information related to the market conditions and specific competitors.

3.2.2 PREDICTIVE ANALYTICS

BI has a predictive aspect to it, known as predictive analytics. This is known as a type of data mining focused on finding
patterns in actual data, to predict trends in the future. For example, the insurance industry.

 This type of analytics uses historic data to predict the probability, for example, of getting into an accident.

3.2.3 ONLINE ANALYITICAL PROCESSING

OLAP is an approach to quickly answer questions that have several dimensions. A data table, for example, has two
dimensions: rows and columns. Using a database query.
The OLAP CUBE is a relational database with several dimensions that makes it faster to be able to organize it.

3.3 SYSTEM DEVELOPMENT PROCESS: OVERVIEW AND IMPACTS

Term used in the development of software where a set of methodical processes,
activities, or phases are used to develop and implement a system.
1. Gather information: problems, objectives, and resources are outlined.
Clients, developers, consultants, and end users come together and brainstorm.
If the software is not new data gathering will focus on improvements.
2. Analyze: the end-user requirements have been clearly formulated. Feasibility
studies may be carried out to analyze the impacts of the project. Information
on competition is collected Viability of the project is established.
3. Design: with defined workable segments, the system design is developed.
Customer requirements will define it. Details on the functionality, techniques,
and logic are formulated.
4. Implement: actual construction phase of the system. The logical part is formulated, and the building of any
hardware is accomplished. Programming language is decided.
5. Deploy: The system is completed and ready to be deployed. Various installation procedures are carried out. The
time it takes for it to go live depends on its complexity. End-user is trained to ensure proper use.
6. System testing: different parts of the system are brought together, making a whole integration. Inputs are collected
and fed into the system. Real users may test. The aim of the testing phase is to ensure that the customer's
requirements are met. No technical expertise is needed. Specialized personnel may be brought in.

3.3.1 TYPES OF PROCESSES

 Ad-Hoc System Development --- very bad
o ASD normally engages participants with some level of expertise with the problem. It depicts rather a
chaotic process, and it provokes constant changes and modifications.
 Waterfall Development --- bad because you cannot go back to complete previous steps.
o Process characterized by a system of sequential steps. High rigidity in following them. Design results
are only realized on the completion of the last step.

 Iterative Development --- best way to organize a process.

o Process established due to the problems experienced with the waterfall process in which design results
are available earlier in the process, thereby providing valuable feedback for the next process step.
 Exploratory Model --- class example of programming code --- requires too many resources
o Used in projects where we find in a trial-and-error scenario. Most of the requirements are proposed
ideas with approximations and speculations. There is a distinct absence of predefined process steps.
Authentication stems from the success of each result.

3.3.2 IMPACT TO ORGANIZATIONS

 Time management
o In any problem-solving project the more steps that are worked at the same time, the less time the
project takes to complete. Models which display a lack of this flexibility (like the waterfall model) can
have serious project delays. A delay in one step means a delay of the whole project.
o The iterative model has better time management. Once a step is completed it can go into production
immediately. Time is money, so unforeseen delays can cost the organization.
 Finance
o Finances can be a determining factor even before the project commences. No organization smiles at
an unforeseen expenditure. A delay can cause a cost if there is a problem in one phase.
o Constant client demands and modification can cause overruns as well. In models where the
requirements are not defined properly, budgets tend to be high.

 Flexibility
o Too much flexibility has its problems. With the iterative model, where users are involved in every phase
of the project, constant modifications are inevitable, and confusion and a lack of proper project cohesion
could be the result.
3.4 INFO SYSTEMS: ROLES, GLOBAL ISSUES & EMERGING TRENDS
All types of companies or businesses depend on IT. All of them deal with four main info. Systems:
1. Communications 2. Information processing 3. Decision making 4. Inventory.

3.4.1 COMMUNICATIONS
Many businesses use email as their official communication method. These are either web-based or via intranet (private
TCP/IP network). Establishing such a system depends on internet access, network infrastructure, mail servers’
availability and authorized domain access.
The role of IT team in Communications. The network administrator ensures a reliable and secure network
configuration and connectivity; while the system administrator manages the web server, determines the username
configurations, and manages user privileges and access.

3.4.2 INFORMATION PROCESSING

This refers to the systems that carry any business' greatest asset – information, including customer details, operations,
human resources, inventory and even banking, sales, or finance information.
The role of IT team in Information Processing.
The software developer is at the core of ensuring that software and applications deployed are proprietary or developed
in house. In the event of software errors, this person steps in.
The system administrator oversees the success of the processing systems and minimizing errors in the server, and in
charge of staff training and re-training, along with software developer. This person also handles user access.
In the event, of network and connectivity issues with the applications the network administrator steps in.
The entire IT team is needed to configure the network access and the general user authentication to deploy information.

3.4.3 DECISION MAKING

Decision-making processes are made by the analysis and reports generated from information systems. Such reports'
accuracy, reliability, and availability are crucial to the management and their decision-making processes.
The role of IT team in Decision Making.
The IT Teams job is to ensure management body gets the information they want when they want it.
Th developer and the system administrator are under pressure to keep the network working continuously.

3.4.4 INVENTORY
Inventory software varies with the type of business. Items in the inventory always have a valuation. It involves a
comprehensive and well-catalogued list of all the business' assets.
The role of IT team in Inventory
The IT Team monitor the inventory data, and they need to important aspects such as servers, computers, backup power
supplies, scanners, printers, or digital imaging machines.
The department in change of the inventory must moni2tor the acquisition, movement, repair, handling and disposal of
data.
The IT Team must create and organized inventory system.
4. VIRTUALIZATION AND DATA SERVICES
4.1 VIRTUALIZATION: DEFINITION & BENEFITS
Virtualization is the process of introducing a layer of software in a computer system, immediately above the hardware
it runs on, with the purpose of creating a platform that everything else can use.

 How is virtualization used?

o A virtual machine is a software based version of a personal computer. It provides access to various
peripherals, and software packages, just like hardware-based equipment.
 Other types of virtualizations
o Server => in this type of virtualization, a server is installed on a virtual machine, and several may run
on a single hardware platform.
o Presentation => processing is off-loaded to a remote computer system, and only visual elements are
handled at the workstation. Companies like Citrix (Met) and Microsoft (Terminal Services) are examples
of this. --- google drive.
o Network => network functions, such as switching and protocol analysis, are implement in software.
Companies like Cisco offer products like this. --- eduroam UC3M
o Storage => traditional storage devices are combined into a single entity. Companies like Amazon
(AWS) or IBM (SmartCloud) offer products like this. ---

 Benefits of virtualization
o Cost saving => reduces capital and operating expenses by eliminating duplication
o Reduces downtime => when something fails, it can be quickly reloaded and restarted.
o Agile configuration => a software-based organization can be easily configured, usually at a mouse click
o Provides compartmentalization => user applications run in their own virtual machines, so they are
isolated. Also, because they are software based, they can be re-started easily.
o Centralized management => all management functions are handled from a single client, that can be
brought up on any station by administrative personnel.

4.2 HISTORY OF VIRTUALIZATION: OVERVIEW AND TIMELINE

Time-sharing implies that computing resources are shared among many users. It appeared in the 60s and led to many
changes, including the emergence of virtualization.

 High speed task switching

o At first, the idea of time-sharing was implemented literally. While one user was thinking or entering data,
the computer processed tasks of another user.
o Equipment became more powerful, and tasks generated were not enough for its capacity. Processor
was taught to switch between tasks more often. Every task received a "quantum" of time. If one wasn't
enough, the processor switched to another returning to the first one later.

 From time-sharing to virtualization

o First operating system supporting time-sharing: Multics, predecessor of Unix family. Slow, unreliable,
and unsafe. Scientists knew how to improve it but the equipment capabilities were limited.
o 1968, IBM creates a new mainframe that supported CP/CMS system. First OS supporting virtualization.
The CP/CMS system was based on a virtual machine monitor or hypervisor.
HYPERVISOR. It runs on the hardware and creates several virtual machines. This approach is much more convenient
than the time-sharing system:

• Virtual machines share mainframe resources instead of using it one-by-one in their turn, efficiency is higher.
• Every VM is an exact copy of the original hardware, so you can run any OS on every single machine.
• Every user has its own OS, so it doesn't affect other users - the entire system becomes more reliable.
After some time, CP/CMS was improved, renamed, and launched for sale. It became the basis for VM/370 OS, which
was used with one of the most popular IBM's mainframes, System/370.

 Mainframe: big, powerful computer. Terminals: devices with a screen, keyboard, and mouse.
Users worked with terminals to enter data and set tasks, and the mainframe processed these data. One mainframe
could be connected to tens or even hundreds of terminals.
Computers were expensive and bulky; companies preferred to use a mainframe with terminals because they could
not afford to buy a computer for every employee.
Over time, computers became cheaper and smaller. In the 1980s, personal computers changed terminals.

 Affordable computers spread widely.

o Operating systems became more functional but less reliable. An error in one application might cause
an OS crash and affect other apps. Strength increased but raised the equipment costs as well.
o Virtualization came back on a scene. It allowed using several independent VMs hosted by one
physical computer instead of allocating several ones for the same task.

 SoftPC was released in 1988. This software allowed to run Windows and MS-DOS applications on other
operating systems.
Evolution of Internet led to a rise in virtualization technologies. At first, big companies hosted their websites on servers.
After some time, smaller companies and individuals also felt a need to have a website. They didn't have money to buy
own servers, so other companies decided to rent the equipment to them. It was the beginning of the hosting industry.
 In the first years, hosts provided you with disk space on a server. Websites of different users were kept in folders
of one computer => unreliable and insecure, while renting an entire server was expensive.

 Virtual servers were a good alternative: inexpensive and almost as reliable as dedicated servers.
VMmanager was revolutionary. ISPsystem developed in 2003. It makes virtualization available for everyone.

4.3 WHAT IS DATA CENTRE VIRTUALIZATION?

Data center virtualization refers to a data center consolidating what it does into less equipment. Taking actions that
servers and equipment in a data center do and taking away their physical form.
When you virtualize servers and equipment in a data center, you take a special piece of IT equipment called a virtual
server. These virtual servers have a special software inside, called hypervisor.

• The hypervisor takes all the software and programs, including the operating system and runs it in a simulation.
Virtualized servers are called virtual machines, and virtual servers can have multiple virtual machines running.
5. BUSINESS INFO SYSTEMS (ENTERPRISE SYSTEMS FOR BUSINESS – PART 1)
Definition of Transaction: any type of exchange between two people which provokes a change in something. Keeping
track of transactions requires a transaction processing system.

5.1 TRANSACTION PROCESSING SYSTEM

Transaction processing system: business tool based on hardware,
software, and people, which using information, processes transactions
in business environments. In other words, it updates data on the
operations of an organization.
Result of processing a transaction: records of an organization are
updated to reflect the new conditions at the time of the last processed
transaction.
Transaction Processing Systems are comprised of three components:
people, software, and hardware.
A TPS tracks routine operations but does not provide support for
decision making. A TPS serves as the foundation for these:

5.1.1 BATCH vs REAL TIME PROCESSING

In a BATCH processing
system, transactions are accumulated over a period of time, and
processed as a single unit, or batch.
Whatever the period in a batch system, there is some time delay between
the actual event and the processing of the transaction to update the
records of the organization.
In a REAL TIME processing system, transactions are processed
immediately as they occur without any delay to accumulate the
transactions.
The main SIMILARITY is that both are applicable in industries where transaction are carried out continuously.
There are DIFFERENCES:

BATCH PROCESSING REAL TIME PROCESSING

Works in designated periods of time. Must be running always to carry out transactions in real time.

Low completion time requirements. High completion time requirements.

Relatively simple and economical. Complex and costly.

Normal or average hardware to run. Complex hardware and software architecture.

Measurement-oriented. Action-oriented.

Gather data for defined periods of time and process it. Support random data inputs continuously.

5.1.2 TYPES OF TRANSACTION PROCESSING SYSTEMS

Order processing systems

• TPS captures relevant data about customer and their order.

• Usually characterized by their diversity in being manual or automatic.
• In both, the order and output are captured, processed with revards to the intended product output, and the order
details are stored in a database.

• Typically used in online order businesses.

Accounting system

• Details regarding transaction are processed, categorized and recorded, and the financial database is updated to
reflect the order.

• Typically used in payroll systems.

Purchasing systems

• A transaction is created when a customer begins a purchase in the purchasing system.

• The system request payment details and the customer is in a position to make a purchase.

• After the purchase, the system updates inventory.

IMPORTANCE OF TPS

 Able to handle multiple transactions at once and provide businesses with added value. They help save time
and resources which would have been wasted otherwise.

 The online nature allows to accept transactions and customer from all over the world, and eliminate errors
by taking out the human influence and allowing for data manipulation.

5.1.3 CHARACTERISTICS OF TPS

A transaction processing system tends to be rigid, and has the following characteristics:

 Performance. Transactions are performed as fast as possible.

 Reliability. Transaction performance occurs like clockwork.

 Consistency. Transactions are performed in the same way each time.

 Atomic. Transactions are indivisible; once started, they are performed to completion.

 Significant. Because of three aspects-

o System is up to date. It does not matter wen you examine it, it is as current as possible. Preserves the
order of occurrence. No matter when a transaction occurs, it is processed in the order it was initiated.
Handles multiple inputs. Even geographically diverse sources can be addressed.

5.2 APPLICATIONS & EXAMPLES OF TPS

Texting. We enter a prompt, press 'send', and the message is transferred. Each time 'send' is pressed; a transaction
occurs. Results are displayed close to real- time.
Financial. Deposits, withdrawals, checks, and purchases. Companies like banks or credit companies generate a
significant amount of revenue processing these transactions.
Databases. Consider a customer account at a department store. If that customer information is changed, but changed
incorrectly and then corrected a few seconds later, transaction processing would ensure that the corrections occur after
the original changes were made.

5.3 ENTERPRISE SOFTWARE FOR BUSINESS APPLICATIONS

An enterprise software is a central system that ensures information is shared across al functional areas and levels
of management within an organization.
It typically uses a database of key data that can be shared by all. Having access to the same information is critical to
avoid miscommunication and inefficiency.

 A key characteristic of enterprise software is that it addresses an issue of critical importance for the entire org.
not just an issue within a single unit or department.
 This means that many different people in different units of the organization need to use the software simultan.
Enterprise Resource Planning. Set of integrated programs to manage critical operations of an organization. ERP has
emerged as an important tool in controlling costs and product flows through a complex enterprise.
Customer Relationship Management. Handles all information of an organization about its customers, such as contact
information, purchasing history and individual preferences. It can also keep track of all customer inquires.
6. BUSINESS INFO SYSTEMS (ENTERPRISE SYSTEMS FOR BUSINESS – PART 2)
ERP & CRM

6.1 ENTERPRISE RESOURCE PLANNING: USING ERP TO INTEGRATE BUSINESSES PROCESSES

Software adopted by businesses to aid in running daily operations, human resource activities, financial services,
manufacturing. It is very expensive. An example can be SAP, which costs 3M.
It is useful to businesses with different branches as it provides a readily available database shared by all the users
in their specific locations. It means that information can be accessed by multiple users in locations if they use the
same system and are cleared to access the data.
ERP software: set of applications and modules necessary for running daily operations. It integrates real-time
information, such that for example, if a customer purchases a product, information is updated in the finance
department, and the purchase confirmation can be accessed in the shipping department rapidly.
REAL ERP EXAMPLES
Financial and accounting: ERP system eliminates chances of human error through accounting processes. Specific
application can conduct financial operations like billing, budgeting, and payroll processes.
Product life cycle management: module responsible for keeping tabs on the organization´s products since
manufacture to marketing. It keeps track of the available stock and its storage location and estimates the future demand
of the product based on past analysis.
Customer relationship management: ERP can keep track of purchases made by customers and conduct surveys on
purchase frequency by customers. The system can and estimate customer´s level of satisfaction with products, and
help determine whether to improve quality.
ADVANTAGES

 Accessibility and reliability of data: Access important data rapidly, crucial in decision-making processes.

 Strengthens the agility of business. Availability of data and efficiency enables to identify and react to new
opportunities.

 Increased productivity. Based on automation of processes reduces number of resources needed.

 Proper planning and forecasting accuracy. Accurate and reliable data vital for forecasting.

 Information integration. Updating and storage real-time data centrally.

 Elimination of legacy systems

 Improvement of work processes. Implement best practices, which are most efficient
 Upgrade of technology infrastructure. Bring all information technology in an organization up to speed in an
organized way.
DISADVANTAGES
 High cost
 Disruption of upgrades
 Long implementation time
 Difficulty in managing change
 Software customization
 User frustration

6.2 CUSTOMER RELATIONSHIP MANAGEMENT: USING CRM TO FOCUS ON CUSTOMERS

CRM is a strategy for managing relationships with customers in an organized way.
CRM is used to learn about customers’ needs and behaviors to develop stronger relationships. The main goals are to
attract new customers, retain current ones, and entice former customers to return to the organization as well as reduce
marketing costs and lower the cost of providing customer service.
CRM Systems: CRM Systems are information systems designed to support an organization's CRM strategy.
CRM strategy: plan implemented by the organization that uses information about customers to gain insights into their
wants, needs, and behaviors to offer products and services that suit them.
Successful CRM systems rely upon two elements: identifying customer touch points and consolidating customer data.

 Customer touch points: types of interactions that companies have with customers. Traditional customer touch
points include telephone, direct mailings, or physical interactions. CRM systems can manage additional touch
points through technology such as websites, and smartphones.

 Data consolidation: critical component to a company's CRM efforts. Customer data must be managed properly
for long-term customer relationships. Repeating customers are the main generators of revenue.
Data Warehouse: term that describes storing large capacity data, which has new information added constantly, that is
easily retrievable and used only decision-making purposes.

6.2.1 TYPES OF CRM SYSTEMS

 Operational: helps with day-to-day sales and customer service activities.
 Analytical: collects data to improve customer satisfaction and retention rates
 Collaborative: provides customer facing departments information to offer effective customer experience.
BENEFITS
 Differentiation: setting the products and services apart from competition through CRM by targeting customers
who may be interested.
 Revenue enhancement: increase profits by encouraging a greater number of sales transactions. CRM assists
in enhancing revenues by alerting current customers and potential customers of services that they may have a
special interest in.

 Growing the organization: refers to increasing the overall customer base, profitability and revenues. CRM
can aid in reaching more customers through tailored product and service offerings.
7. BUSINESS INFO SYSTEMS (ENTERPRISE SYSTEMS FOR BUSINESS) – PART 3
JIT INVENTORY. The Just In Time Inventory describe a resource management strategy that directly matches the
receipt and storage of raw materials with production schedules.

 A company that uses JIT system only orders or purchases as many raw materials as needed to manufacture
a set of goods rather than ordering a bulk quantity of resources to last a long time.
 Just enough inventory is available to meet the demand, but not enough where the company stores an excess.

 Just in Time inventorying requires that producers forecast production schedules accurately, so cost can remain
low and waste can be reduced.
o The ultimate goal is to improve production by reducing non-essential costs overall.

7.1 JUST IN TIME INVENTORY

JIT was introduced in the 70s by the manufacturer Toyota.
The process took over fifteen years to perfection as
producers sought the best balance between supply and
demand.
Eventually, this resulted in Toyota only purchasing parts
to manufacture a vehicle once it was ordered by a client.
It involves high reliance on good suppliers.

32WQEEE

8.1.1 ADVANTAGES & DISADVANTAGES OF JIT

ADVANTAGES Explanation

Reduce inventory waste Elimination of overproduction, which occurs when supply of an item overreaches the
demand and leads to an accumulation of unsalable inventories.

Decrease warehouse cost The warehouse holding costs are minimized. There is no need to keep items for a long
period of time.

Control for manufacturer Manufacturer has entire control over process, which performs on a demand-pull basis.
This makes JIT model flexible to ever changing market conditions.

Local sourcing Since JIT needs you to start manufacturing only when an order is placed, you must
source raw materials locally as possible.

Smaller investments JIT carries out activities right the first time when it´s done. Decreases inspection and
rework costs. Less investment for organization, fixing errors and more profit.

RISKS Explanation

Running out of stock With JIT manufacturing, you do not have much stock. If projections are inaccurate, the
risk of not having enough stock available to respond to demand.

Lack of control - time frame Having to depend on punctuality of suppliers puts at risk delaying customer´s
products. Customers will shift to competitor´s products if their expectations are not
Dependency on suppliers satisfied.

Lack of planning Companies should understand sales trends. Most have seasonal sales periods. This
means some products will need different stock levels at certain times.

A minor disruption in supplies to the businesses from just one supplier could force production to cease at very short
notice. Some businesses find JIT management to be gamble because it can become very costly or detrimental to
revenue when supply cannot meet demand.

7.2 ENTERPRISE RESOURCE PLANNING SYSTEMS ACCOUNTING

ERP Accounting system: software program that carries out all business accounting and financial activites. ERP
accounting solutions are a module within a software product that can manage all companies as a single platform.
Instead of having one platform that does only accounting and bookkeeping, you can implement an ERP package with
this function and more.
7.2.1 KEY MODULES OF ERP ACCOUNTING SOFTWARE
 General ledger: any accounting solution should have a general ledger. An enterprise planning program with
an accounting option has it too. It is for managing all financial operations.

 Account payable: this sub-ledger shows all the money that you are sending outside the organization. It allows
to monitor invoices and pay instantly for new purchases.

 Asset management. Necessary feature when a business is big and has a lot of tangible assets and
commodities. Each asset´s life cycle is easy to follow when you have an ERP accounting module.

 Payroll. It helps an accountant do computation for employee´s salaries, taxes, leave payments, travel costs
and other staff expenditures.

 Audit. Irreplaceable and crucial accounting procedure. Thus, it would be best to have an ERP accounting
module with an analytics and audit feature.

7.2.2 KEY MODULES OF ERP FINANCE SYSTEM

Module in the ERP Planning Software. It allows to generate accurate financial reports and future projections for the
shareholders. In most cases, it forms part of the accounting system.

KEY MODULE EXPLANATION

Profit tracker Crucial as it reveals overall business performance in terms of profits. It will indicate
precisely where most profits are arising.

Risk management This tool is necessary as business operations are susceptible to all manner of risks

Reporting and analytics This tool provides real time data graphic to help make better decisions

Currencies management This tool is helpful if the organization deals with worldwide operations. It will do currency
conversions to help speed up transactions in different currencies.

Tax management This tool should support tax reporting and tax auditing functions.

Internet function This is to ensure electronic transfer of documents and help control fund transfers.

Encryption Security of sensitive business data is vital, and a good ERP accounting tool should
provide it.

Automation Ability to get rid of manual data entry and replace it with automatic data entry that
reduces labor and errors.

Updates Constant automatic updates feature a must-have. It is a handy tool to inform the user
when their tax reporting or other financial practices are due.

Scalable It should be an enterprise ERP with an accounting option that should be easily upgrades
to include a newer version, new users, new data…

Mobile compatible In this era, accountants and finance professionals need a software program they can
monitor from anywhere anytime they want

Bespoke An ERP system should be easy to customize to meet organization´s needs. If more
 capabilities the tool should support it.

Integration It should be a single platform capable of sourcing transactional data from different
business processes and storing it in a central location.

7.3 PRODUCT LIFECYCLE MANAGEMENT: DEFINITION & TOOLS

Product life cycle management is a management style for the entire model line of products a company provides. The
goal of this is to develop products in the most efficient and cost-effective way for the company to maximize profit.
This management strategy was developed in 1985 by the AMC for their automobile lines.

7.3.1 PRODUCT LIFE CYCLE MANAGEMENT PROCESSES

Introduction: scarce sales, grow slowly. High promotion costs, and revenues are negative. The aim is to publicize the
product. Inexistent competition. Most potential products do not leave this stage.
Growth: sales grow slowly. Promotion is constant, but marketing costs reduce and production ones increase. Revenue
appears and competition grows.
Maturity: great competition level. Product is widely tested, gets saturated in the market. Maximum sales level. Revenue
reduces and competition is driven out.
Declive: sales decrease because of the appearing of new products. Price decreases and also profitability, questioning
to eliminate the product and substitute it for another.
7.3.2 PRODUCT LIFE CYCLE MANAGEMENT STRATEGIES
Simultaneous engineering; Workflow design; Component designing.

7.4 SUPPLY CHAIN MANAGAMENT IN THE BUSINESS

SCM is the management of the flow of goods and services and includes all processes that transform raw materials into
final products. There are 5 parts of SCM:

 Planning: to get the best results from SCM, the process begins with matching supply with customer demand.
Firms must predict what their future needs will be. This relates on equipment, materials needed, limitations or
staffing needs.

 Sourcing: entails working with vendors to supply the raw materials needed throughout the process. A company
may be able to plan and work with a supplier to source goods in advance. SCM sourcing may include ensuring:
o Raw materials meet specifications
o Prices paid for goods are in line with market expectations
o Vendor has flexibility to deliver emergency materials
o Vendor has a proven record of delivering goods in time and in good quality.

 Manufacturing: company transforms raw materials using machinery, labor or other external forces. The final
product is the ultimate goal of the manufacture process, though it is not the final stage of SCM. It may be divided
into sub-tasks. A firm must be attentive on controllable factors that may cause deviations.
 Delivering: Once products are made and sales finalized, the company must get the product into the hands of
its customers. The distribution process is often seen as a brand image contributor. Companies with strong SCM
processes, have robust logistic capacities, and delivery channels to ensure timely, safe and inexpensive deliver.

 Returning: SCM concludes with support for the product and customer returns. Its worse a devolution due to a
company´s error, than the returning itself. The return is often called reverse logistics, and the company must
ensure it has capabilities to receive returned products and assign refunds for them.

7.4.1 TYPES OF SUPPLY CHAIN MODELS

Continuous Flow Model: traditional supply chain method; often best for mature industries. It relies on a manufacturer
producing the same good over and over and expecting little variation on customer demand.
Fast Model: it emphasizes the quick turnover of a product with a short life cycle. With it, the company strives to capitalize
on a trend, quickly produce goods, and ensure the product is fully sold before the trend ends.
Agile Model: best for companies with unpredictable demand or customer-order products. It prioritizes flexibility, as a
company may have a specific need at any given moment and must be prepared to pivot accordingly
Efficient Model: includes utilizing equipment and machinery in the most ideal ways in addition to managing inventory
and processing orders most efficiently.
Flexible Model: works best for seasonal companies. Some, may have much higher demand requirements during peak
season and low volume requirements in others. It makes sure production can easily be ramped up or wound down.
Custom Model: if any model doesn't suit a company's needs, it can always turn towards a custom model. This is often
the case for highly specialized industries with high technical requirements such as an automobile manufacturer.
8. ELECTRONIC & MOBILE COMMERCE (PART – 1)
8.1 BUSINESS TO CONSUMER (B2C) E-COMMERCE. DEFINITION & EXAMPLES.
The main goal for most businesses is to reach their consumers to increase sales. When conducting transactions, they
can choose to take a more direct or indirect approach. B2C represents the basic concept of how a product is transferred
from the business directly to the consumer.

 E -commerce: process of conducting business online. E -commerce eliminates the need for a physical store.
Instead, consumers select the products from a website/app and complete the payment online. It is cost -
effective and provides convenience for consumers as they can purchase products anytime, anywhere.
Considering those definitions, both concepts together create B2C ecommerce, which is the process of a business selling
products online. Using a B2C online model is cost – effective; allows businesses to reach as consumers as possible.

 E-commerce businesses must still promote their brand and products but typically through online methods.
Since e-commerce is online, it makes sense that marketing campaigns do so.
o Typically, businesses use email and social media campaigns. Consumers can easily access the site
from online advertisements through links directly to the business, shop or specific products.
8.1.1 E-COMMERCE

MODEL EXPLANATION

Direct sellers Businesses that sell products directly to consumers. In ecommerce, direct sellers typically sell their
products through websites.

Online intermediaries Businesses that distribute products from another company directly to the consumer. Etsy and eBay
operate as online intermediaries.

Advertising based It doesn't offer products specifically but instead directs consumers to products from other companies.
Some examples include blogs and news media companies that aim to inform consumers about
products but then receive compensation if the products are purchased through their links.

Community based It makes use of forums or others to allow users engage in discussions. Communities can be built based
on the users' interests, which helps other companies market their products to specific groups or
markets.

Fee based A fee-based company generally provides services or content for a subscription fee. Magazines that
require a fee to access content are examples of feebased models.

Examples of B2C include Spotify, Amazon, Netflix, Starbucks or H&M.

8.1.2 BENEFITS OF E-COMMERCE

BENEFIT EXPLANATION

Convenience Customers can shop at their convenience and are not bound by your business hours. They can shop
online whenever and wherever.

Geographically When you offer online sales, you can ship your products anywhere. This removes geographical barriers
unlimited and allows you to target a much larger audience.

Quickness of online It can take a while to make changes in products and prices and then communicate those changes to
transactions customers. Online, a sale can happen in minutes. A simple email or message on social media serves.

Rapid expansion A physical store has a limit to the number of customers it can serve. Online, it disappears. An online
store can serve many people at the same time, and they can purchase items without physical interact.
8.2 BUSINESS TO BUSINESS (B2B) E-COMMERCE. DEFINITION & EXAMPLES.
Business-to-business commerce is commerce between two different businesses rather than a business and a
consumer. B2B e-commerce is simply business-to-business commercial transactions that are conducted online.

8.2.1 TYPES OF B2B TRANSACTIONS

TYPE EXPLANATION

e-Distributor Online businesses that provide goods and services directly for a company. Some e-distributors are
retailers, while others provide wholesale goods.

e-Procurement Model where a business creates a digital marketplace where buyers and suppliers engage in
transactions. Aside from creating the online marketplace, the e-procurement business may also provide
software to help suppliers and customers.

Exchange Provides a marketplace focused on serving one vertical market, such as the steel, chemical or copper
market. It's different from e-procurement because it's more narrowed.

8.2.2 B2B IS CONDUCTED VIA DIFFERENT CATEGORIES OF WEBSITES

CATEGORY EXPLANATION

Company website The target audience of a company website is the business clients and employees of other
businesses. Sometimes, a company website provides an entrance to an exclusive extranet,
available only to customers or registered users.

Product supply & Exchanges allow a company to shop supplies from multiple vendors, request proposals or bid on
procurement exchanges products. Some serve a range of industries while others serve a niche market.

Specialized or vertical Provide dedicated information, product listings, discussion groups…for specific businesses. Vertical
industry portals portal sites may also support buying and selling.

Brokering sites Intermediary between service providers and potential customers that need their specific services,
such as equipment leasing.

Information sites Provide information about a particular industry to companies and their employees. Information sites
include specialized search sites and those of trade and industry standards organizations.

B2B Industries: financial, technology, manufacturing, construction, retail, telecommunications, insurance…

8.2.3 BENEFITS OF B2B

• Large average deal size. A B2B company can grow sales with a smaller number of high-value deals compared
to a B2C company, which may require thousands or even millions of individual sales.

• Higher switching costs. B2B customer loyalty is likely if they are satisfied with the product and service. In
contrast, B2C customers can be finicky and not loyal, resulting in large churn rates.

• Large market potential. B2B companies can target enterprises across many industries and geographies,
resulting in a big playing field. Or they can specialize in one industry, such as technology, and become leaders
in that field.

• B2B organizations advertise their products and services and conduct business online, making it easy for clients
to place bulk orders via an efficient digital transaction model.

• Faster delivery. Because B2B e-commerce tools make the sales process efficient for sellers, they accelerate
the process for buyers. Integrated systems enable the transacting companies to sync data across channels,
automate fulfilment and inventory updates, and manage complicated orders.

• Built-in order management Cloud-based e-commerce platforms easily integrate with back-end systems
or order management systems. This enables B2B sellers to synchronize order inventory and customer data
across every channel.
8.3 CONSUMER TO CONSUMER (C2C) E-COMMERCE. DEFINITION & EXAMPLES.
Business model in which consumers sell products or services to other consumers, The marketplace provides for buyers
and sellers to connect and transact. Consumers find good deals and make money from unwanted items.
The marketplace itself does not take ownership of the products being sold and makes money by charging a transaction
fee from the sellers.

 C2C businesses can be large or small.

 These platforms can be enticing for sellers because C2C marketing costs can be low to nonexistent. All a seller
needs to do is create a listing, and they can start selling.

 There are also many C2C businesses with a narrower focus.

C2C businesses can be involved with other businesses.

8.3.1 ADVANTAGES OF C2C

• Increased profitability: in the C2C model, there are no intermediaries. This lowers the cost of the product or
service, which increases profitability. Sellers do not need to worry about extra costs associated with rent, staff
salaries, website hosting, marketing, or use of third parties for product distribution.

• Increased Customer Base: the online aspect of the C2C eCommerce marketplace means that, thus increasing
the number of chances for conversion. your products and services are accessible to a worldwide audience.
• Credibility: sellers who choose to sell on a C2C platform do not have the credibility of a well-known seller or
the ability to sustain the platform. Utilizing space on an existing C2C eCommerce platform will provide credibility
for the seller under the “umbrella” of the C2C platform.

8.3.2 DIASDVANTAGES OF C2C

• Competition: a marketplace where many sellers provide similar products or services can be daunting,
especially when they must compete with products and services of lower price, better reviews, or higher quality.

• Payment Issues: depending on the platform provider, there may or may not be a guarantee of payment for the
transactions made.

• Platform Fees: some providers might charge sellers (and occasionally buyers) for the use of the platform, on
a standard, reoccurring fee, or a profit percentage basis.

8.3.3 ADVANTAGES OF C2C FOR BUYERS

• Lower Prices: given that sellers can avoid intermediaries’ costs, offered products and services can be more
affordable for buyers.

• Abundance of Choice: having many sellers offering specific products or services gathered in the same virtual
space means more options for buyers to choose from. Buyers can find exactly what they are looking for, which
boosts satisfaction and the feeling that they are getting their money’s worth.

• Faster Service: faster transactions, streamlining the service and saving time.

• Security: security measures and background checks may be implemented to protect buyers from potential
scammers acting as sellers.

8.3.4 DISADVANTAGES OF C2C FOR BUYERS

• Issues with Sellers: platforms do their best to protect customers, but issues may arise with the quality of
products, payment handling, delivery, or communication, which can be a burden to buyers.
9. ELECTRONIC & MOBILE COMMERCE (PART – 2)
9.1 WEB APPLICATIONS IN BUSINESS INFORMATION SYSTEMS
Web application is a software program that is stored remotely on a server and runs off that server. It displays its
information to the user through a web browser. Its frontend is usually coded using HTML, CSS or Javascript.
Website is a group of accessible, interlinked web pages which have a single domain name. It is s hosted on a single or
multiple web server. It is accessible via a network like the Internet or a private local area network via IP address.

9.1.1 TYPES OF WEB APPLICATIONS

• Static web application. Built using HTML and CSS to facilitate exhibiting significant information.
o Usually, the simplest web application as it exhibits only limited content and is not flexible.
o Normally these apps have no personalization. Modifying the content of a static web application is not
easy, as it requires downloading, modifying, and returning HTML code.
o Therefore, this app is best suited for software development companies and professional webmasters.
Some of the best examples include digital resumes and lead capture pages in marketing.

• Dynamic web application. Delivers live data based on the requests and is considered one of the best types.
o Improved technical sophistication when compared to static web applications. Such web applications
use databases to store all private and public data displayed on the Website.
o They usually have an admin panel to control the backend and front -end portions, and allow the
administrator to modify the content and include different interactive components to the web app.
o The dynamic web app is built using various programming languages such as PHP, and ASP.NET.

• e-Commerce web application. When your web application offer products or services directly to customers,
you can call it an e-commerce which is no different from an online shopping store.
o Basic features include addition of new products, removal of outdated, managing payments, facilitating
a user - friendly interface. An effective management panel is very necessary to look at all these tasks.
o Professional website developers can customize such applications to make them user-friendly. Some of
the most common examples of e -commerce web apps include Flipkart,

• Single-page web application (SPA). Type of dynamic web application that does not require browser reloads
and functions as a single unit of a website application.
o These web applications are fast and dynamic as they implement all business and technological
strategies in the client-side browser.
o The development and implementation process of SPA is simple and faster. Since communication takes
place in asynchronous navigation, the process of dealing with the user’s request and response is faster.

• Portal web application. Offers a single access point to important data to a particular type of user.
o Web application that can access different sections from the home page. Portals are the best option for
organizations and businesses that prefer to build customized interfaces.
o Only registered users are allowed to access.

• Content management system web application.

o Wordpress, Joomia, Drupal

• Animated web applications

o They allow to display content along with animation effects.

• Rich internet web applications

o Application that have the functionalities of many desktop applications. They are designed to fix browser
restrictions and rely on plugins.
9.2 CLICKSTREAM ANALYSIS
Clickstream refers to the links clicked and visited by the user. It compiles the user´s activity and how they navigate a
website. Clickstream analysis is the data provided by clickstream, and how it can be used for research purposes.

 For example, clickstream can be used to perform market research to track web ads and social media
promotions. This is very helpful for e-commerce sites that share social media posts on their products.

 Clickstream analysis can also be relevant for software testing to ensure consumers can correctly use the
software.
Clickstream data refers to the client data consisting of user´s actions on the site: number of backward/forward clicks,
time spent on pages, number of searches conducted…This allows marketers see which contents are popular.

9.2.1 USES OF CLICKSTREAM ANALYSIS

• Comparing traffic channels
o It means to analyze how users reached the website in the first time: search engine, social media, direct
URL, affiliates link…

• Comparing advertising strategies

o It means to compare how users from various advertising media interact with their website.

• Improving existing content

o Analyzing where users drop off when navigating a website can be useful to improve pieces of content.

• Interlinking between existing content

o Interlinking means to link pages on the same website.

9.2.2 HOW TO DO CLICKSTREAM ANALYSIS?

1. Understand your objectives (review traffic channels and advertisement strategies or improve content)
2. Collect and visualize data (review the data in a convenient format)
3. Identify patterns and exceptions (look at repetitions and differences in how users interact with the pages)
4. Draw and implement conclusions.

9.2.3 HOW TO COLLECT DATA FOR CLICKSTREAM ANALYSIS?

A crucial part for clickstream analysis. Collecting data at the present time is very easy. One of the most popular tools
for collecting clickstream data is Google Analytics. This tool allows to track visitors and their interactions.

9.3 E-COMMERCE INFRASTRUCTURE

9.3.1 OBJECTIVES
Mission: design, develop and maintenance of e-commerce business venture.
1. Build an open, scalable infrastructure
2. Develop the right value added services
3. Use an effective sustainability model
E-commerce infrastructure identifies the functionalities of the
hardware and software components, specifies the service level
requirements, and describes the management and operations for the
system.
MAJOR COMPONENTS:
Directory services. Enables users locate other for sending emails.
Middleware. Systems that reside between client and server. These
could be data access, protocols, specialized servers…
Lookup database: it stores information on network resources and user profiles.
Meta directories: facilitates the data flow between one or more directory services and databases. Enables
synchronization.
Groupware. Facilitates automation and streamlining of business processes not implemented in ERP systems.
DNS. Facilitates identification of an organization or entity on the internet.

9.3.2 CRITERIA FOR EVALUATING E-COMMERCE INFRASTRUCTURE

Flexibility Ability to respond quickly to changing requirements.

Costs CapEx and WorEx, acquisition or maintenance costs for servers, licenses and other hardware/software.

Scope & performance Degree of fulfillment of specific requirements, knowledge about service and performance quality.

IT security & Factors like government, industry, or firm specific needs in the areas of security, compliance and
compliance privacy are covered.

Reliability Factors like service availability, consistency of delivery and fulfillment of the Service Level Agreements.

Service & cloud Factors like offered support and functions for controlling, monitoring, and individualizing the web
management interface.

9.3.3 FOCUS POINTS FOR WEB INFRASTRUCTURE STRATEGY

9.3.4 ASPECTS OF E-COMMERCE INFRASTRUCTURE

• Monitoring and Reporting on Web and other e-Business Applications, and the Response Times for Web
transactions.

• TCP/IP Performance focusing on End-to-End network response times and the Effects of operational
performance control.
• Network Routes and Equipment focusing on the End-to-End route response times, Identify route patterns and
defects and Identify and minimize loss of data in the network.

• Other important dimensions include adequate site capacity, Scalability and Fault-tolerance.
9.3.5 BUSINESS & FUNCTIONAL PLANNING
10. DECISION MAKING & SPECIALIZED INFORMATION SYSTEMS (PART – 1)
10.1 DECISION MAKING IN ORGANIZATIONS
After identifying a problem, the process of solving a problem starts with decision making. A model developed by Herbert
Simon divides the decision-making phase of the problem-solving process into three stages: intelligence, design, and
choice. This model was later expanded by George Huber:

• Intelligence
• Design
Decision • Choice
Making

• (decision making) +
• Implementation
Problem • Monitoring
solving

• Intelligence stage
o During this stage, the potential problems are identified and define, and there must also be investigation
of resource and environmental constrains.

• Design stage
o Development of alternative solutions to the problem, and evaluation of their feasibility.

• Choice stage
o This state requires selecting a course of action.

• Problem solving
o Problem solving goes beyond decision making. It includes implementation stage.

• Monitoring stage
o Decision makers evaluate the implementation to determine whether the anticipated results were
achieved, and to modify the process in case of new information.

10.1.1 PROGRAMMED vs NON-PROGRAMMED DECISIONS

One factor that can influence the decision maker´s selection is a programmed option. A programmed decision is the
one made using a rule, procedure or quantitative method.
Non-programmed decisions deal with exceptional or unusual situations, which are complicated to quantify.

10.1.2 OPTIMIZATION, SATISFICING AND HEURISTIC APPROACHES

Optimization: process to find the best solution, usually the one that will best help the organization meet its goals.
Satisficing model: model that will find a good – but not necessarily the best - solution to a problem.
Heuristic: “Rules of thumb,” or commonly accepted guidelines or procedures that usually find a good solution.
 10.1.3 BENEFITS & DISADVANTAGES OF INFORMATION AND
DECISION SUPPORT SYSTEMS
Some benefits include performance or decision quality, while
disadvantages are mainly in high costs of hardware, software,
database, personnel…

10.2 MANAGEMENT INFORMATION SYSTEMS (MIS)

Decision-making tools that help gather relevant information to make decisions. Relative to other types of specialized
information systems, a MIS is used by mid-level management to support ongoing operations.
10.2.1 INPUTS & OUTPUTS TO A MIS

INPUTS OUTPUTS

Internal External Scheduled report: produced periodically.

Company´s supply chain Key indicator report: summary of previous day´s critical activities.
Customers, suppliers,
competitors and
TPS & ERP systems stockholders Demand report: report developed to give certain information at
someones´ request.

Data warehouses and data Exception report: report automatically produced when a situation
marts is unsual.
Internet
Business intelligence Drill-down report: report providing detailed data about a situation.

10.2.2 CHARACTERISTICS OF MIS

• Provide reports with fixed and standard formats
• Produce hard-copy and soft-copy reports
• Use internal data stored in the computer system
• Allow users to develop custom reports
• Require user requests for reports developed by systems personnel

10.2.3 FUNCTIONAL ASPECTS OF MIS

 Financial MIS
o Provides financial information for executives or people who need to make better decisions.
o There are financial MIS subsystems:
▪ Profit/loss and cost systems

• Profit center: department which focuses on making profits.

• Revenue center: division that generates sales or revenue.
• Cost center: does not directly generate revenue.
▪ Auditing

• Internal auditing: performed by individuals within the organization

• External auditing: performed by an outside group
▪ Uses and fund management
• Internal uses of funds
• External uses of funds

 Manufacturing MIS
 o A typical manufacturing MIS is used to monitor the flow of materials and products throughout the
organization.
▪ Design and engineering

• CAD is used in development and design of complex products.

▪ Master production scheduling

• The overall objective is to provide detailed plans for manufacturing facilities.

▪ Inventory control

• Economic order quantity

• Reorder point
• Material requirements planning
• Just in time Inventory
▪ Process control

• Computer-Assisted Manufacturing
• Computer-Integrated Manufacturing
• Flexible Manufacturing Systems

 Marketing MIS
o Information system that supports managerial activities in product development, distribution, pricing
decisions, promotional effectiveness and sales forecasting.
▪ Marketing research

• Conducts a formal study of the market and customer preferences

▪ Product development
Involves conversion of raw materials into finished goods and services and focuses
primarily on the various attributes of the product and its supply chain..
▪ Promotion and advertising

• Product success is a direct function of the types of advertising and sales promotion
done.
▪ Product pricing

• Retail price, wholesale price, and price discounts must be set.

▪ Computerized sales analysis

• Important to identify products, sales personnel, and customers that contribute to profits
and those that do not.
 Human Resources MIS
o An information system that is concerned with activities related to employees and potential employees
of an organization, also called a personnel MIS.
▪ Human resource planning

• Overall purpose is to put the right number and types of employees in the right jobs
when they are needed, including internal employees and outside workers.
▪ Personnel selection and recruitment

• Companies seeking new employees often use computers to schedule recruiting efforts
and trips and to test potential employees’ skills.
▪ Training and skills inventory

• Some jobs require specific training for new employees. Other jobs may require general
training about the organizational culture, orientation or standards of organization.
 ▪ Scheduling and job placement

• Employee schedules are developed for each employee, showing job assignments over
the next week or month.
▪ Wage and salary administrationi

• Involves determining wages, salaries and benefits, including medical payments, plans
and retirement accounts.
▪ Outplacement services

• Offered by many companies to help employees transition. Outplacement can include

job training, search, retirement and financial planning.

10.3 DECISION SUPPORT SYSTEMS (DSS)

Decision Support System: specialized information system designed to facilitate the decision-making process. DSS is
typically used when a problem is unstructured or when circumstances are difficult to predict.
A DSS may include other types of systems. For example, a database management system (DBMS) is often part of a
DSS to have access to the necessary data. However, a DSS is more than a DBMS since it provides a structure to
facilitate the process of making decisions.

 Capabilities of a Decision Support Systems

o Support for problem solving phases
▪ The objective of most systems is to assist decision makers with the phases of problem solving.
These phases include intelligence, design, choice, implementation, and monitoring.
o Support for various decision frequencies
▪ Ad hoc DSS concerns with situations or decisions that come up only a few times during the life
of the organization.
▪ Institutional DSS handles situations or decisions that occur usually several times per year or
more. An institutional DSS is used repeatedly and refined over the years.
o Support various problem structures
▪ Highly structured problems are problems that are straightforward and require known facts and
relationships.
▪ Semi structured or unstructured problems are more complex in which the relationships among
data are not always clear and is often difficult to manipulate or obtain.

 Components of a Decision Support System

o Dialogue manner
▪ User interface that allows decision makers to easily access and manipulate the DSS and to
use common business terms and phrases.
o Database management systems
▪ This system allows managers and decision makers to perform qualitative analysis on the
company’s vast stores of data in databases, data warehouses, and data marts.
o Model base
▪ Part of a DSS that allows managers and decision makers to perform quantitative analysis on
both internal and external data.
o Model Management Software (MMS)
▪ Software that coordinates the use of models in a DSS.
o Group Support System (GSS)
 ▪ Software application that consists of most elements in a DSS, plus software to provide effective
support in decision making.

 Characteristics of a Group Support System

o Special Design; Ease of Use; Flexibility
o Decision-Making Support
▪ Delphi approach: decision makers are geographically dispersed.
▪ Brainstorming
▪ Group consensus approach
▪ Nominal group technique
o Anonymous input; Reduction of negative group behavior; Parallel and unified communication
o Automated recordkeeping (meetings)

11. DECISION MAKING & SPECIALIZED INFORMATION SYSTEMS (PART – 2)

11.1 KNOWLEDGE MANAGEMENT: CAPTURE, STORE & SHARE INFORMATION WITH KM
Knowledge management system: organized collection of people, procedures, software, databases and devices to
create, store, share and utilize the knowledge and experience of an organization.

 Explicit knowledge: objective and can be measured and documented.

 Tacit knowledge: is not so easy to measure and is more difficult to formalize
One of the challenges of knowledge management is to try to formalize tacit knowledge = making tacit knowledge explicit.

11.1.1 KNOWLEDGE CREATION

Once the location of the knowledge has been identified, it needs to be captured. Capturing knowledge includes collecting
all relevant documents and organizing them.
However, many aspects of knowledge are not recorded in formal documents. Capturing knowledge may, therefore, also
require more methods, such as conducting interviews with selected individuals or groups.

11.1.2 KNOWLEDGE STORAGE

Knowledge is stored in the form of a knowledge repository with documents, reports, and databases. Specialized
software tools are available to organize this material.

11.1.3 KNOWLEDGE SHARING

Knowledge should be shared by authorized people. It should be shared with the required teams based on who should
use the knowledge to meet organizational goals.
In this step, businesses create a technology-enabled platform to make learning accessible. It also involves training
employees to use the knowledge to make informed decisions.

11.1.4 KNOWLEDGE USAGE

The final and most crucial step is putting the acquired knowledge to good use. Any employee looking for relevant
information should be able to access the right information based on access and security clearance and utilize the
knowledge to make quick decisions.

11.2 USING ARTIFICIAL INTELLIGENCE AND EXPERT SYSTEMS TO SOLVE COMPLEX PROBLEMS
Artificial intelligence includes the people, hardware, software, data, and knowledge used to develop computer systems
that demonstrate characteristics of intelligent behavior.

11.2.1 TYPES OF AI
Artificial intelligence involves systems that can simulate human decision-making for specific types of problems.
Robotics, which uses AI, is employed in a variety of applications ranging from automotive assembly lines to the robotic
arm on the International Space Station and can be used to complete tasks that are either too precise or too dangerous
for humans.
Natural language processing is an important part of AI, as it enables machines to interact with humans in a more natural
way. It allows computers to understand and respond to spoken commands, allowing for more efficient and accurate
communication between humans and machines. This technology is being used in various applications, such as
automated telephone services, mobile phones, and car navigation systems.
AI systems use learning systems, combining hardware and software, to change how they function or react based on
feedback. Computer games have this built-in, allowing the computer to learn from mistakes and become hard to beat.
Chess is an example, where computers have learned from many known chess matches.
By using neural networks, AI systems can quickly process large amounts of data and identify patterns that may have
otherwise been missed by traditional programming techniques. Neural networks allow AI systems to learn from their
mistakes and adjust their algorithms accordingly, allowing them to continue to improve their performance over time.
Neural networks can be used in a wide variety of AI applications, such as image recognition, natural language
processing, and even autonomous driving.
A genetic algorithm is a computational approach to problem solving that mimics the process of natural selection by
creating a population of solutions to a problem and selecting the best solutions through a process of variation and
natural selection. The best solutions are then used to create the next generation of solutions, until an optimal solution
is found.
EXPERT SYSTEM: hardware and software that stores knowledge and makes inferences, like those of a human expert.
People and organizations should develop an expert system if it can do any of the following

• Provide a high potential payoff or significantly reduce downside risk

• Develop a system more consistent than human experts

• Provide expertise that is expensive or rare

• Capture and preserve irreplaceable human expertise

• Provide expertise needed at several locations at the same time or in a hostile environment that is dangerous to
human health

• Develop a solution faster than human experts can

• Solve a problem that is not easily solved using traditional programming techniques
• Provide expertise needed for training and development to share the wisdom and experience of human experts
with many people

11.2.2 KNOWLEDGE BASE

The knowledge base stores all relevant information, data, rules, cases, and relationships that the expert system uses.
Using rules: a rule is a statement that establishes a connection between a set of conditions and a resulting action or
outcome. It is often expressed as an IF-THEN statement, allowing us to draw conclusions based on the conditions
given.
Using cases: an expert system uses a process of finding and modifying existing solutions from its knowledge base to
develop a solution for a current problem or situation. It compares the current situation to stored cases and adjusts the
solutions accordingly.
Inference engine: an inference engine is a type of artificial intelligence (AI) program that uses a knowledge base to
draw conclusions and make decisions. It seeks out information and relationships from the knowledge base to provide
answers, predictions, and suggestions that mimic the way a human expert would.
Explanation facility: the explanation facility of an expert system is essential, as it allows users and decision makers to
understand how the system came to its conclusions or results.
Knowledge acquisition facility: the knowledge acquisition facility is a part of the expert system that facilitates the
capture and storage of the components of the knowledge base, allowing experts to provide the necessary information
in a convenient and efficient manner.
User interface: the main purpose of the user interface is to make an expert system easier for users and decision
makers to develop and use.

11.3 USING ARTIFICIAL INTELLIGENCE AND EXPERT SYSTEMS TO SOLVE COMPLEX PROBLEMS
Virtual reality: incorporates an interactive computer-generated experience taking place within an environment that
mimics a physical setting or real world. Virtual Reality is also denoted as VR.
VR requires various devices such as joysticks, gamepads, mice, and keyboards. While artificial intelligence reduces the
need for peripherals to create an environment, one needs computer displays, Television, Mounted displays, and goggles

11.3.1 IMPACT OF VIRTUAL REALITY

Virtual Reality (VR) technology has seen significant growth in recent years, with Google Cardboard introducing
magnified VR capabilities. This has been adopted in medical and research fields, as well as in graphic design, where
the Oculus Rift is used for advanced computations and rendering.
VR has enabled the development of new industrial uses, such as Facebook's Meta, which uses AI for fiction creation,
as well as an increased investment in gaming due to its increased realism.
Some applications of VR in business include medicine, education and training, business and commerce, entertainment.

11.4 GEOGRAPHIC INFORMATION SYSTEM

GIS is a computer system that combines hardware, software, and human knowledge for collecting, processing,
analyzing, and presenting geographic data about a specific place.
 Through hardware, GIS can capture and collect information from these places. This data is processed using
this software, analyzed, and presented to the user who uses it for various purposes.
Geographic Information Systems are considered smart maps.

 Their main purpose is to manage and analyze data from a geographic location. Their main functions are:
• Manage the way data enters the system. GIS allows the user to capture and store data manually or
systemically.

• Data integration. GIS allows building information that gives a logical sense to the collected data. These
systems integrate various formats and geometries that guarantee the consistency and quality of the data.
• Data analysis. GIS analyzes data through layer manipulation and spatial modeling operations. They
transform data into relevant information.

• Information production. GIS allows users to consult and generate data that transmit relevant information
graphically, where the results are presented to interested users.

• Dissemination of results.

11.4.1 HOW DOES GIS WORK?

GIS is a digital database that links alphanumeric data to objects on a map. When a user selects a certain area or space
on the map, the system will analyze the associated data and present the user with the relevant information for that area.
 It allows users to access different databases from various disciplines. This makes it easy and fast for users to
obtain the results they need.

 Digitization is the most common method of inputting information into GIS systems. This process converts
physical data and field data into a digital format through CAD.

11.4.2 GIS CAN BE USED IN DIFFERENT FIELDS

Mapping GIS is used to gather, manage and analyze data. Analyzing spatial location, managing layers of information
and transform them into layers of information.

Urban planning Spatial database and as an analysis and modelling tool. It helps identify and establish zoning criteria that
allows for the expansion of urban development.

Transportation GIS is used to plan new road and route infrastructures, improving mobility across regions.
planning
Disaster risk Manage environmental problems and disaster relief. Predicting larger natural disasters to managing post-
management disaster actions.

Agricultural value Helps to create more efficient farming techniques, alongside analyzing soil data, understand the
chain seasonality and predict yields.

Public health Natural resources can be adequately maintained and managed. It is especially crucial for the allocation
and geographic distribution of those resources.
12. PERSONAL & SOCIAL IMPACT OF COMPUTERS (PART – 1)
12.1 IMPACT OF COMPUTERS ON WORK ENVIRONMENTS AND PRIVACY
How Does Technology Affect the Work Environment Today?
Positively

 Speed and efficiency

 Working together made easier

 Technology changes office culture

 No more need to live where you work

 Working with technology in the gig economy
Negatively

 Technology creating pains (disrupted productivity, learning curve…)

 Difficulty detaching from work

 Downsides of efficiency and productivity

 Using technology to encourage healthier habits

12.1.1 PRIVACY
Information privacy: privacy protects our personal space and allows people to choose who has access to their
information. As technology advances to make life easier, privacy may be increasingly compromised.
There are some issues regarding Personal Privacy.

Electronic Involves monitoring people with technology, often without their knowledge. This can be done through video
surveillance or recording devices.

Personal Provided to companies when users sign-up for accounts. These companies then sell personal information
information to other companies that use the data to market to the user.

Identity theft Occurs when someone steals an individual's information to commit a crime. Identity thieves can use this
data to make purchases, apply for credit cards, get medical services, or apply for a job.

Cookies Small data files that websites use to track users visiting the site. Third-party cookies are typically the ones
that cause personal data to be compromised.

Spyware Small computer program that gets stored on a user's hard drive. It collects the user's habits and transmits
that information to a third party, all without the user's consent. The data is then transmitted to marketers,
criminals, or firms that pay others to collect data on users.

Employee Internet Employee Internet Management Software is used to ensure that employees are not using their work
Management Soft. computers for non-work activities.

12.1.2 TECHNOLOGIES THAT HELP PROTECT YOUR PRIVACY

Encryption The most important and effective privacy protection technology. Everything that is encrypted
becomes an unreadable jumble except to the one holding the key required to decrypt it. The
widely used encryption standard is OpenPGP with most popular implementations being PGPi
and GnuPG.

Instant message encryption Conversations can be encrypted using instant messaging clients that support encryption. The
conversation will be private, or undecipherable to anyone who might intercept the messages.

Virtual Private Network
A real private network is the one between devices. A virtual private network emulates a
physical network scenario across computers and devices by encrypting connections.
When you connect to a VPN the connection is encrypted. This means that a web site that
tracks won’t see your own local IP address, but a random computer that is a part of the VPN
you are in.
 Remailers Instead of sending an email to a recipient address directly, you send it to the address of a
remailer server, and then this server resends it to the destination address. This way, the
recipient won’t know it was you who sent it, but only the address of the remailer service.

Tor Electronic Frontier Foundation (EFF) set up a system called The Onion Router (Tor) for the
purpose of enabling online anonymity. It uses a network of volunteer servers to make the user
untraceable and uses a layered approach to encryption (hence the “Onion” in the name),
meaning that it encrypts and re-encrypts the data being transferred multiple times.

Anti-tracking browser features
Some web browsers come with a “Do Not Track” option, but this does *not* guarantee that
you won’t be tracked. When this feature is enabled, your browser simply tells the web site
you’re visiting that you don’t want to be tracked, and the web developer may or may not have
designed the web site in such a way to cease any tracking activity once this flag is
encountered.

Fake accounts and single-use Fake accounts are designed to protect your anonymity.
emails
Single use email addresses are email addresses which are used only for one email or one
conversation, and discarded afterwards, making the sender unreachable and harder to trace.

Anonymous Proxies
A proxy is a computer that stands between your own computer and the web. When you visit a
web site through a proxy your computer connects to a proxy server telling it to fetch and send
you the web site.
This means that the web site owners cannot see your computer (your IP address) accessing
the web site, but instead see the address of a proxy server.

Privacy controls Facebook and other similar services like Google, include privacy controls that can be used to
limit who can see your posts on your profile.

Digital cash Currently the best-known example of this is Bitcoin (or BTC). Bitcoin transactions are
completely anonymous and fully encrypted. The only thing attached to your bitcoin
transactions is an alphanumerical code called a Bitcoin Address.

12.2 CYBERCRIME
Cybercrimes are any crimes that involve a computer and a network. In some cases, the computer may have been used
to commit the crime, and in other cases, the computer may have been the target of the crime.
The group of persons involved in cybercrimes are called hackers or cybercriminals.
Cybercriminals seize the confidential or personal information of the users and use it for some malicious activity to serve
their own interests and benefits.

12.2.1 DDoS ATTACKS

 DDoS attacks are used to make an online service unavailable and take the network down by overwhelming the
site with traffic from a variety of sources.

 It overwhelms the traffic on the site from a variety of sources and slows the network. Just as a traffic jam clogs
the way of vehicles on the road, DDoS attacks prevent the regular traffic to enter on the site.
 Such types of cyberattacks achieve effectiveness by using several compromised computer systems as a source
of attack traffic. It can affect the working of any IoT devices like computers or mobile phones.

12.2.2 BOTNETS
 Botnets are the compromised computer networks that are controlled by the remote hackers. By these botnets,
the hackers send spam and attack on other computers by sending attachments and mails. The botnets are the
kind of malware system that are used for malicious attacks.

 A botnet always affects a set of devices and not just one. Botnets basically work based on bots which get their
order from the master and work on the appellation bot that are communicated and transferred from the old chat
service Internet Relay Chat (IRC).
12.2.3 PHISING
 Phishing is the type of cyber-attack that involves hacking through malicious email attacks. The hackers send
the malicious attachments and URLs to different users via email ids. These links are directed to gain access to
 the user's account.

 Most of these emails are not even flagged as spams. The hackers trick the users by claiming that the later one
needs to change their password or billing information for continuation of some services. As soon as the users
click the URL, the mail access is lost.

12.2.4 CYBERSTALKING
 Involves online harassment where basically the security of a person is subjected.

 The user is subjected to several series of online messages and emails. Cyberstalking helps the stalkers to know
everything about the user about their daily routine and work.

12.2.5 SOCIAL ENGINEERING

 Cybercrime that makes the direct connection between the user and the hackers by phone or email. These
hackers first gain your trust and then gain control over your device.

 After pretending, they gain important and necessary information from you
 They also try to follow your social accounts. And once they can access the information related to your account,
they try to sell or secure your access for their own profits.

12.2.6 POTENTIALLY UNWANTED PROGRAMS

 Cybercrime that makes the direct connection between the user and the hackers by phone or email. These
hackers first gain your trust and then gain control over your device.

 After pretending, they gain important and necessary information from you
They also try to follow your social accounts. And once they can access the information related to your account, they try
to sell or secure your access for their own profits.

12.2.7 THEFT
 Unidentified theft occurs when a criminal successfully gains a user’s personal information to steal funds or to
participate in a kind of fraud. The cybercriminals can also use your account or telephonic details to plan a
criminal activity or to claim benefits.

 Unidentified theft of IoT devices generally occurs by hacking passwords of the users and retrieving their
personal information from some open or easy to track social media accounts or by sending phishing emails.

12.2.8 EXPLOIT KITS

 As the name suggesting you can relate exploit kits as the tiny bomb packets that can trouble the integrity of
your device. Exploit Kits seek a vulnerable device and gain the control of the computer.

 An exploit kit is a ready-made tool that is available online. The hackers purchase it directly from some sources
like dark web hacking forums and then release it into the devices. It embeds bugs into the IoT devices and
assists the hackers in gaining the control of the devices.
12.2.9 ONLINE SCAMS
 These are usually in the form of ads or spam emails that include promises of rewards or offers of unrealistic
amounts of money. Online scams include enticing offers that are “too good to be true” and when clicked on can
cause malware to interfere and compromise information.

12.2.10 PROHIBITED/ILLEGAL CONTENT

 This cybercrime involves criminals sharing and distributing inappropriate content that can be considered highly
distressing and offensive.

12.3 CYBERTERRORISM
The FBI enforces federal laws, those created by Congress which apply to everyone nationwide. One area of law which
they enforce is cyber terrorism. These crimes can occur against individuals, organizations, and governments.

 Foreign governments may use hackers to spy on U.S. intelligence communications to learn about where our
troops are located or otherwise gain a tactical advantage at war.
13. PERSONAL & SOCIAL IMPACT OF COMPUTERS (PART – 2)
13.1 MALWARE
Malware ("malicious software“) is any kind of program or code that seeks to cause harm to a computer system.
The definition of malware is comparable to a pathogen. A foreign invader, like a virus, invades the system and causes
damage. A virus is a type of malware, just as it is a type of pathogen.

13.1.1 MALWARE TYPES

Virus: computer viruses are just like biological viruses. They attach themselves to programs on a computer. When that
program is launched, so is the virus. It adds its own lines of code to the programs to replicate itself. This disrupts the
original program, causing it to no longer work properly.
Worms: worms are similar to viruses, but they can replicate and spread on their own. Worms spread through systems
like a virus does, but without the user needing to launch an infected program.
Spyware: spyware is a subtler form of malware that monitors the activities of the user without permission and reports
this information back to a third party, typically the author of the malware.
Adware: Adware puts up advertisements, typically in a web browser. The aim of adware is to trick users into installing
harmful software on their devices. It can also have advertisements open new windows, called pop-ups, outside the
browser.
Trojans: Trojans are dangerous viruses. They get their name from the historical Trojan horse, which was a gift built by
a master carpenter from the Greeks to Troy. However, it was hollow on the inside, allowing Greek troops to hide within.
At night, the Greek troops emerged from the horse and opened the gates to Troy, letting in the Greek army. A Trojan
virus works in much the same way. It disguises itself as a useful program. Once it is uploaded, it gains access to the
entire system, allowing attackers to steal stored information. Attackers can also use Trojans to install other kinds of
malware.
Ransomware: Ransomware seeks to profit from users by locking them out of their own systems. The attacker encrypts
all of the data on the system and leaves a ransom note for the user, stating that in order to get their data back, they
must pay the attacker. Typically, the payment is done via cryptocurrency because it is harder to track. Typically,
ransomware targets businesses because they are capable of paying out larger sums than an individual consumer might.
Rootkits: A rootkit is a kind of malware that gives itself administrator privileges on a system, otherwise known as root
access. Rootkits are designed to stay hidden from other pieces of software on a system, including the operating system.
Keyloggers: A keylogger is a kind of malware that records keystrokes on a user's keyboard and stores that information
for attackers to review. In this way, attackers can gain critical data, such as passwords and financial information.
Bots: A bot is a kind of program that automatically performs repetitive tasks, like a robot. In the context of malware,
bots are programs that can hack into a user's account, perform scans over many websites to find contact information,
or send spam to email addresses. Essentially, bots perform all of the hard work for an attacker.

13.1.2 ANTI-MALWARE STRATEGIES

1. Update, update, update
2. Pump up passwords
3. Click and connect carefully
4. Encrypt everything
5. Get a malware scanner

13.2 SECURITY MANAGEMENT

Security management is the accuracy, integrity, and safety of information resources. When effective security measures
are in place, they can reduce errors, fraud, and losses.

13.2.1 THREATS TO SECURITY MANAGEMENT

 Unintentional threats: considered to be human error, environmental hazards, and computer failures. Most
people don't purposely cause harm.
 Intentional threats: purposeful actions resulting in the theft or damage of computer resources, equipment, and
data, including viruses, denial of service attacks, theft of data, sabotage, and destruction of computer resources.
13.2.2 CYBER-SECURITY DEFENSES
- Devote at least 5% of your annual IT budget to security in order to make sure you have the appropriate
resources, because security is an investment but far cheaper than a cost of a breach.
- Invest time in training your staff. Aim to organize a workshop every six months where you review their level of
knowledge (password, firewall, malware, download and use of add-ons or usb key and others external memory
disks), share the latest threats, discuss best practices and procedures to follow when a threat is identified, and
give your team the opportunity for specific Q&A. (Most security issues come from human mistakes).
- Control, monitor and update who has access to what data, and make sure each individual has their own
personal login and does not share it with anyone else. It’s important to restrict access only to what’s necessary,
and remember to deactivate it when the job is complete. Updating passwords every few months, or when
someone loses their electronic device or have the feeling their password may have been compromised, is also
an evident point to keep in mind.
- Encryption is a method for securing data by using special mathematical algorithms to convert the data into
scrambled code before transmission. The data is decoded when an authorized user accesses it. There are a
number of software encryption standards, but the two main ones are RSA by RSA Data Security and PGP, or
Pretty Good Privacy, available on the Internet.
- Control and check as frequently as possible that your IT environment has been updated to the latest LTS version
(long term support guarantee).
- Install, enable, and update an anti-virus & anti-malware on every employees’ computer.
- Audit your IT environment through external & professional experts.
- Use a VPN (Virtual Private Network) to make sure your connection inside or outside your office is secure,
encrypted and hidden.
- Restrain your IT environment to only be accessible from a dedicated IP address (the IP address of your VPN)
that will significantly reduce vulnerability to attacks.

13.3 INTELLECTUAL PROPERTY AND OPEN SOURCE SOFTWARE: ISSUES AND CONCERNS
Software piracy is the illegal copying of copyrighted software.
Piracy of music, movies, and books is also a growing problem. Millions of people copy songs, digital books, or movies
onto their computer illegally. They download the media they want for free from a peer-to-peer file sharing website like
BitTorrent. This process denies the original artists, authors, or entrepreneurs the legitimate compensation they deserve
for their work.
Intellectual property
Intellectual property refers to the intangible or non-physical right that is the result of original thought, such as musical,
literary, or artistic works.

13.3.1 COPYRIGHT EXCLUSIVE RIGHTS

Owners of intellectual property are granted exclusive rights through copyrights, trademarks and patents. An exclusive
right solely by a particular person or group.
Copyrights

 Copyrights laws give authors exclusive rights to their work. The copyright lasts for authors´ lifetime plus 70
years.
Patents

 Patents are government grants that entitle the inventor to exclusive rights and prevent others from making,
using, offering for sale, or selling the invention.

 Patents protect physical objects, such as product inventions or machines as well as inventive processes for
producing a physical product.

 Author's patent is good for a period of 20 years from the filing date of the patent application.
Trademarks

 A trademark consists of a distinctive word, phrase, or symbol that identifies a product or service. Names, like
Pepsi, or symbols, like the Nike swoosh, are considered trademarks.

 Author can register this symbol with the State Patent Office.

 Trademarks can be lost if one squanders them through excessive or improper licensing or if they become
generic and thereby enter the public domain.
13.3.2 OPEN SOURCE SOFTWARE
Open source means the software is distributed for free with accessible source code that can be modified and improved
by anyone.

13.4 ETHICAL ISSUES IN MANAGING TECHNOLOGY IN BUSINESS

Businesses are dealing with complicated ethical issues, such as information security, balancing the privacy of
employees with the need for monitoring employees, file sharing, and copyright infringement.
Privacy at Work
Employers are using technology and corporate policies to manage worker productivity and protect the use of IS
resources.
Employers are mostly concerned about inappropriate Web surfing, with 76 percent of employers monitoring the Web
activity of their employees.
Organizations also monitor employees’ e-mail, with more than over half retaining and reviewing messages.
In many cases, workers claim their right to privacy trumps their companies’ rights to monitor employee use of IS
resources.
E-Mail Privacy
E-mail has changed how workers and managers communicate in the same building or around the world.
E-mail, however, can be monitored and intercepted.
As with other services such as cell phones, the convenience of e-mail must be balanced with the potential of privacy
invasion.
Instant Messaging Privacy
Using instant messaging (IM) to send and receive messages, files, and images introduces the same privacy issues
associated with e-mail.
As with e-mail, state law permits employers to monitor instant messages sent and received by employees.
To protect your privacy and your employer’s property, do not send personal or private IMs at work.
Privacy and Personal Sensing Devices
RFID tags, essentially microchips with antenna, are embedded in many of the products we buy, from medicine
containers, clothing, and library books to computer printers, car keys, and tires.
RFID tags generate radio transmissions that, if appropriate measures are not taken, can lead to potential privacy
concerns.
Once these tags are associated with the individual who purchased the item, someone can potentially track individuals
the unique identifier as sociated with the RFID chip.
Privacy and the Internet
A potential solution to some consumer privacy concerns is the screening technology called the Platform for Privacy
Preferences (P3P) being proposed to shield users from sites that don’t provide the level of privacy protection they
desire.
Instead of forcing users to find and read through the privacy policy for each site they visit, P3P software in a computer’s
browser will download the privacy policy from each site, scan it, and notify the user if the policy does not match his
preferences.
The World Wide Web Consortium, an international industry group whose members include Apple, Commerce One,
Ericsson, and Microsoft, is supporting the development of P3P.
Internet Libel Concerns
Libel involves publishing an intentionally false written statement that is damaging to a per son’s or organization’s
reputation.
Individuals can post information to the Internet using anonymous e- mail accounts or screen names. This makes it more
difficult, but not impossible, to identify the libeler.
The offended party can file what is known as a “John Doe” lawsuit and use the subpoena power it grants to force the
ISP to provide whatever information they have about the anonymous poster, including IP address, name, and street
address.
Filtering and Classifying Internet Content
To help parents control what their children see on the Internet, some companies provide filtering software to help screen
Internet content.
The two approaches used are filtering, which blocks certain Web sites, and rating, which places a rating on Web sites.
Organizations also implement filtering software to prevent employees from visiting Web sites not related to work,
particularly those involving gambling or offensive material.
Before implementing Web site blocking, the users must be informed about the company’s policies and why they exist.
The policy should be clear about the repercussions to employees who attempt to circumvent the blocking measures.