ETHICAL CONCERNS b.

Solutions:
• Copyrights, patents, licensing to protect IP
1. Privacy and confidentiality of user data • Contracts/agreements on data ownership
a. Stakeholders: • Watermarking or other controls on data usage
• Users - their personal information could be leaked or misused 5. Harm from system failures
• Customers - their data like contact info, purchases, preferences could be a. Stakeholders:
compromised • Customers - could face losses from disrupted services
• Employees - their personal or performance data could be revealed • Employees - could be liable for mistakes made
b. Solutions: • General public - people need working systems for healthcare/ transport/finance
• Encrypt sensitive user data b. Solutions:
• Implement access controls and permissions to limit data access • Extensive testing and simulations
• Create comprehensive privacy policies and get user consent • Business continuity plans
• Allow users to access their data and make corrections • Backups and disaster recovery plans
• Anonymize or pseudonymize data where possible • Insurance to offset losses
2. Accuracy of data - For ERP and CRM systems, key ethical concerns are privacy of customer data,
a. Stakeholders: accuracy of data used for decision making, and ownership of data entered into the
• Users - inaccurate data leads to wrong decisions systems. Solutions involve strong access controls, audits, and clear policies on data
• Managers - basing plans and strategies on false data ownership.
• Customers - wrong data used for profiling or recommendations - For e-commerce, ethical issues around security, transparency, and privacy are
b. Solutions: crucial . Merchants must secure customer data and be clear about how it will be
• Data validation and quality checks used. Customers have a right to privacy and control over their data
• Manual or automated audits of data
• Allow users to report errors and suggest corrections STAGES IN THE PROCESS OF DEVELOPING AN INFORMATION SYSTEM
3. Fairness and bias in automated decisions
a. Stakeholders: There are several key stages in the process of developing an information system:
• Users - may be judged unfairly by biased algorithms
• Customers - could get substandard service due to unfair profiling 1. Systems Planning and Identification
• Employees - biased systems could influence hiring/promotion unfairly
b. Solutions: Identify potential projects and select the ones that are critical to the organization's mission,
• Transparency in how automated decisions are made goals, and objectives. This can be done through formal IS planning or an ad hoc process.
• Allow right to appeal automated decisions Different criteria are used to evaluate and prioritize projects.
• Audit algorithms for unintended bias
• Get diverse perspectives when designing algorithms 2. Systems Analysis
4. Property rights and ownership of information
a. Stakeholders: Analyze the current system and processes. Model organizational data, processes, and logic.
• Companies - their data could be stolen or misused Understand requirements for the new system. Designers gain a deep understanding of what
• Users - the data they enter may be used without consent the system needs to do.
• Developers - their code could be copied or altered
3. Systems Design
 Specify how the system will operate in detail. Design the databases, inputs, outputs,
interfaces, controls, and procedures. Choose appropriate technology platforms.
4. Systems Development
Build, purchase, or reuse system components. Write programs, build databases, select
packages, develop interfaces. Thoroughly test modules, components, and integrated system.
5. Systems Implementation
Deploy the system into production. Train users. Convert from old system. Manage
changeover. Ensure users can operate the system properly.
6. Systems Maintenance
Manage and modify the system to fix bugs, enhance features, and adapt to new
requirements. Monitor system performance. Regular maintenance is crucial for long-term
success.
7. Security and Ethical Checks
Build in security, access controls, and data protections from the start. Address ethical
concerns like privacy and bias. Follow best practices in software development.
DEFINITIONS, COMPONENTS, PURPOSES, EXAMPLES FOR EACH TYPE OF 
IS
1. E-commerce and M-commerce
 Definition: Conducting business activities like buying, selling, marketing online and via
mobile devices
 Components: Websites, mobile apps, payment systems, order tracking
 Purpose: Sell products and services online to expand reach
 Example: Amazon online store
2. Transaction Processing System (TPS)
 Definition: System to capture and process basic business transactions like orders, payroll
 Components: Data entry, transaction processing, databases
 Purpose: Record daily business activities and update records
 Example: Point-of-sale system in a store
3. Enterprise Resource Planning (ERP)
 Definition: Integrated system covering business functions like HR, manufacturing, finance
 Components: Modules for each function that share central data repository
 Purpose: Integrate data and processes across organization
 Example: SAP ERP system
4. Supply Chain Management (SCM)
 Definition: Systems to manage supply chain from suppliers to customers
 Components: Inventory tracking, logistics planning, order management
 Purpose: Optimize supply chain efficiency
 Example: Walmart's supply chain management system
5. Customer Relationship Management (CRM)
 Definition: Systems for managing company's relationships with customers
 Components: Contact management, sales automation, customer data
 Purpose: Attract and retain customers; improve marketing
 Example: Salesforce CRM system
6. Management & Decision Support Systems (DSS)
 Definition: Systems that help analyze data and support decision making
 Components: Models, data analysis tools, dashboards, AI
 Purpose: Enable managers to access info and develop strategies
 Example: Qlik business intelligence platform
7. Knowledge Management Systems (KMS)
 Definition: Systems to support creating, sharing, using knowledge in organizations
Components: Expert systems, knowledge bases, collaboration tools
 Purpose: Leverage knowledge as an asset for the organization
 Example: Microsoft SharePoint for document management
SOME KEY THINGS UNIVERSITY STUDENTS SHOULD DO TO PREPARE FOR
AND PURSUE A MIS MAJOR:
 Start thinking about potential careers and jobs early, even as a freshman or sophomore .
Research different MIS-related jobs to find ones you may be interested in.
 Take required MIS courses, but also look for opportunities to apply and experiment with
new technologies . For example, learn tools like Excel, Access, Blackboard, OneDrive,
etc. through class projects.
 Develop key skills like abstraction, systems thinking, collaboration, and experimentation .
These will help you assess and apply emerging technologies.
 Consider the many well-paid MIS jobs in high demand, like systems analyst, database
administrator, data analyst, etc . An MIS major can lead to secure, rewarding careers.
 Understand how IS transforms business so you can find opportunities for innovation . Use
technology strategically to enable your organization.
 Learn not just MIS concepts but also how to solve problems and improve processes with
technology . This mindset will help you succeed and exceed expectation
SOME TRAITS OF DIGITAL WORLD AND THE MAGNITUDE OF MIS
Traits of the digital world and how they demonstrate the importance of Management
Information Systems (MIS):
• Rapid technological change following Moore's Law - Computing power doubles
every 18 months . This requires organizations to continually adopt new technologies through
effective MIS.
• Ubiquitous digital networks and exponential growth per Metcalfe's Law .
Networked systems are crucial for business, enabled by MIS.
• Increasing speed of networks via Nielsen's Law - 50% faster each year . Faster
networks expand capabilities of MIS.
• Explosion of digital data per Kryder's Law - 40% more storage capacity annually .
MIS must manage this massive growth of data.
• Prevalence of knowledge workers who rely on information systems . MIS supports
knowledge creation and sharing.
• The knowledge economy where information resources are as vital as other assets .
MIS makes information accessible.
• Digitization of business processes and models . MIS underpins e-commerce, social
media, mobile platforms.
• New opportunities like big data analytics and cloud computing . MIS incorporates
emerging technologies.
In summary, the digital world's exponential technological changes, ubiquitous digital
networks, knowledge workers, and emerging innovations all demonstrate the indispensable
role of management information systems in organizations today
SOME MORE TRAITS OF DIGITAL WORLD
Key traits that characterize the digital world:
• Rapid pace of technological change, with new digital platforms and devices
emerging every 10 years or so, as per Gordon Moore's predictions . This drives constant
evolution in the digital landscape.
• Digitization and convergence of multiple media types like text, audio, video into
common digital forms that can be transmitted over digital networks . This enables new
integrated media applications.
• Ubiquitous digital networks that connect people, organizations, and devices across
the world . The Internet is the prime example.
• New business models and processes enabled by digital technology, like e-
commerce, social networks, online advertising . Traditional models are being disrupted.
• Explosion of digital data, micro-digital products with low or zero cost, and new
digital consumption modes like online media streaming . This impacts pricing and business
strategy.
• Growth of virtual organizations and digital ecosystems centered around key
platform companies . Collaboration is easier in digital networks.
• Blurring boundaries between personal and professional digital activities . Digital
tech affects all aspects of life.
STAGES OF DECISION-MAKING AND PROBLEM-SOLVING
Several key stages in decision-making and problem-solving:
1. Intelligence stage: Potential problems or opportunities are identified and defined .
This involves gathering information to determine if an issue requires action.
 2. Design stage: Alternative solutions to the problem are developed . Different 5. Factors affecting system development success?
options are created to address the issue.
3. Choice stage: A course of action is selected from the alternatives . The best Success factors include clear goals, user involvement, executive support, skilled project
solution is chosen using decision analysis techniques. teams, adequate resources, managing scope creep, and regular progress monitoring. Careful
4. Implementation stage: The chosen solution is put into effect . Resources are planning, communication, and change management also contribute to success.
allocated and activities are planned to implement the decision.
5. Monitoring stage: Decision makers evaluate the implementation and results . They
track performance to ensure the solution achieves desired outcomes.

Problem-solving incorporates these stages but also focuses on the implementation and
monitoring of the chosen solution . It is a more extensive process than just decision-making.

OVERVIEW OF SYSTEM DEVELOPMENT

1. Why should an organization develop a system?

Organizations develop systems to solve problems or take advantage of opportunities.

Systems help organizations achieve their goals by improving efficiency, reducing costs,
enhancing quality, and gaining competitive advantage .

2. Who should participate in a system development project?

A system development project should include system users, business managers, and
information systems professionals . Users know the requirements, managers set goals, and
IS staff provide technical expertise. Their participation ensures the system meets business
needs.

3. How to plan for an IS project?

IS project planning involves identifying potential projects, evaluating them based on

expected benefits, urgency, and cost, then prioritizing and selecting the ones to pursue . This
provides focus on the most critical projects.

4. What approaches are used to develop an IS project?

Common approaches include traditional System Development Life Cycles, agile methods
like Scrum, rapid application development, and buying off-the-shelf packages . The
approach depends on project scope, timelines, resources, and requirements.