Chapter 1:

Transactions (purchases, events, activities) made give us data.

Data: transactions that are recorded, classified, and stored but are not organized to convey a specific
meaning.

Information: data that has been organized so that they have a meaning and value to the recipient.

Knowledge: information that has been acquired and processed through experiences, skills, learning,
and expertise and is applied to a business problem.

Transaction -> Data -> Information -> Knowledge

Information Technology: a computer-based tool that people use to work with information and
support the information and information-processing needs of an organization.

Information System: collects, processes, stores, analyzes, and disseminates information for a specific
purpose.

- Why should I study MIS?

o It provides us with career opportunities and allows us to manage information
resources.

Managing information resources is difficult and complex because:

- IS has an enormous strategic value to organizations.

- IS is very expensive to acquire, operate, and maintain.
- Overall evolution of the MIS function within the organization.

Traditional functions of the MIS department:

- Managing system development.

- Managing computer operations.
- Development of staff IS skills.
- Providing technical services.
- Maintenance of systems.

New (consultative) functions of the MIS department:

- Designing strategic IS.

- Incorporating e-commerce into the business.
- Managing system integration.
- Educating staff about the business.
- Partnering with business-unit executives.
- Creating business alliances with partners.
- Coming up with innovative IT ideas.

IT components: Hardware-Software-Database-Network-Procedures-People.

Changes in strategy, rules, and business processes increasingly require changes in hardware,
software, databases, and telecommunications. (Interdependence between organizations and IT)

Computer-Based Information Systems: an information system that uses computer technology to

perform some or all of its intended tasks.
Types of Computer-Based Information Systems:

- EIS (Executive Information Systems): uses internal data from MIS and TPS and external data
to support top-level managers like CEOs. DSS supports EIS.
- DSS (Decision Support Systems): Provides and supports middle managers with access to data
and analysis tools. DSS is used to help make decisions and predict outcomes.
- MIS (Management Information Systems): uses data from the TPS to support middle
managers in their activities and when making decisions. DSS supports MIS.
- TPS (Transaction Processing System): Collects, stores, and processes data from the
organization’s operations. TPS needs to be reliable, fast, and accurate.

If a business’s TPS stops working, the other 3 components (MIS, DSS, EIS) will be in trouble.

ERP provides communication among functional areas IS.

IT makes middle managers more productive and also reduces the number of middle managers
required.

The competitive advantage of replacing people with IT & machines is increasing rapidly.

Acronyms:
CIO (Chief Information Officer)
TPS (Transaction Processing System)

ERP (Enterprise Resource Planning)

FAIS (Functional Area IS)

DSS (Decision Support System)

ES (Expert System)

SCM (Supply Chain Management)

Chapter 2:

Business Process: an ongoing collection of related activities that create a product or service of value
to the organization, its business partners, and/or its customers.

- Compromise of inputs, resources, and outputs.

Problems of Functional Organization:

- Processes are cross-functional.

- Responsibility (no single functional area is responsible).
- Coordination (needs to be executed in a coordinated and collaborative way).

IS’s vital roles in 3 areas of business processes:

1- Executing the process.

2- Capturing and storing process data.
3- Monitoring performance process.
Business Process Reengineering (BPR): a radical redesign of an organization’s business processes to
increase productivity and profitability.

Business Process Improvement (BPI): an incremental approach to help a business identify and
evaluate its inefficiencies.

Business Process Management (BPM): a management system used to support continuous BPI
initiatives for core business processes over time.

Green IT: Saving electricity required for IT operations in 3 areas:

- Facilities design and management.

- Carbon Management.
- International and U.S environmental laws.

Digital Divide: refers to the wide gap between the people who have access to IT and those who
don’t.

Competitive Advantage: It is what gives the business an edge over others. It is what makes the
business stand out from other competitors in the market. For example, their brand image or
technological expertise can be a business’s competitive advantage.

Competitive Strategy: A statement that defines a business’s approach to competition, its goals, and
the plans and policies required to achieve those goals.

Porter’s 5 Competitive Forces Model:

- Threat of New Entrants: the level of ease for new competitors to join the market.
- Threat of Substitutes: the number of alternatives available to replace a business’s
products/services. High threat if many alternatives and low threat if limited alternatives.
- Bargaining Power of Suppliers: the power suppliers have in determining the price and
quantity of products provided to buyers.
- Bargaining Power of Consumers: the power buyers have when purchasing products/services
from suppliers. If there are many suppliers to choose from, bargaining power is high, and
vice versa.
- Current Rivalry: how intense competition is between competitors in a certain market.

Porter’s Value Chain Model:

- Value chain: a sequence of primary and supporting activities that transform an

organization’s inputs into valuable outputs.
- Primary activities: related to the production and distribution of products/services.
- Supporting activities: contribute to the firm’s competitive advantage by supporting the
primary activities, but do not add value to the product/service.
Infrastructure (accounting, finance, management)
H/R
Technology Development
Procurement
(R&D)
Outbound Profit
Inbound After
Operations Logistics Marketing
Logistics
(Manufacturing) & Sales Service
(Storage And
(input)
Distribution)
STRATEGIES FOR COMPETITIVE ADVANTAGE: (written question for case)

1. Cost Leadership Strategy: a business produces its products/services at the lowest cost and
sells at the lowest price in the industry. “I can sell at a lower price than you can.”
2. Differentiation Strategy: a business offers products/services that are different from or more
unique than competitors. “I am better because I am different.”
3. Innovation Strategy: a business introduces a new product/service, adds new features to an
already existing product/service, or develops new ways to produce a product/service. “I am
doing something new, and you can’t catch up.”
4. Operational Effectiveness Strategy: Improving a firm’s internal business process so that it
performs its activities or produces more efficiently than its rivals. For example, increasing
quality, productivity, and customer/employee satisfaction. “I am doing the same thing more
efficiently than you can.”
5. Customer Orientation Strategy: The business focuses on making customers happy and
satisfied. For example, creating personalized and one-to-one relationships with customers
through web-based systems. “I treat my customers better than you do.”

Major Reasons Business-IT Alignment Does Not Occur:

- Business managers and IT managers have different objectives.

- The business and IT departments are ignorant of the other group’s expertise.
- A lack of communication.

Acronyms:

BPR (Business Process Reengineering)

BPI (Business Process Improvement)

BPM (Business Process Management)

BPMS (Business Process Management Suite)

OLPC (One Laptop Per Child)

SIS (Strategic Information System)

Chapter 3:

Ethics: The principles of right and wrong that individuals use to make choices that guide their
behavior.

Ethical framework:

- Utilitarian approach: an ethical action is the one that provides the best or does the least
harm when corporations provide a product/service to affected parties.
- Rights approach: an ethical action is the one that best protects and respects the moral rights
of the affected parties.
- Fairness approach: an ethical action that treats all human beings equally, or, if unequally,
then fairly, based on some defensible standard.
- Common good approach: This approach argues that respect and compassion for all others
are the basis for ethical actions. It emphasizes the common conditions that are important to
 the welfare of everyone. These conditions can include a system of laws, effective police and
fire departments, healthcare, a public educational system, and even public recreation areas.

Fundamental Principles of Ethics:

- Responsibility: accepting the consequences of decisions and actions made.

- Accountability: determine who is responsible for the actions/decisions taken.
- Liability: a legal concept that gives individuals the right to recover the damages done to
them by other individuals, organizations, or systems.

o What is Unethical is not necessarily Illegal.

Four General Categories of Ethical Issues Related to IT:

- Privacy issues involve collecting, storing, and disseminating information about individuals.

- Accuracy issues involve the authenticity, fidelity, and correctness of the information that is
collected and processed.

- Property issues involve the ownership and value of information.

- Accessibility issues revolve around who should have access to information and whether a
fee should be paid for this access.

Information Privacy: The right to determine when, and to what extent, information about you can be
gathered and/or communicated to others.

Court Decisions in Many Countries have followed two rules:

1- The right to privacy is not absolute (fixed). Privacy must be balanced against the needs of
society.
2- The public’s right to know supersedes (replaces) the individual’s right of privacy.

Data Aggregators: companies that collect public data such as real estate records and published
telephone numbers, in addition to nonpublic information such as Social Security numbers; financial
data; and police, criminal, and motor vehicle records.

- Examples: LexisNexis: www.lexisnexis.com, ChoicePoint: www.choicepoint.com, and

Acxiom: www.acxiom.com.

Privacy Policies (or Privacy Codes): an organization’s guidelines for protecting the privacy of its
customers, clients, and employees.

- Opt-Out Model of Informed Consent: permits the company to collect personal information
until the customer specifically requests that the data not be collected.
- Opt-In Model of Informed Consent: Privacy advocates prefer this model, which prohibits an
organization from collecting any personal information unless the customer specifically
authorizes it.

Chapter 4:

Security: the degree of protection against criminal activity, danger, damage, or loss.

Information Security: all of the processes and policies designed to protect an organization’s
information and information systems from unauthorized access, use, disclosure, disruption,
modification, or destruction.
Threat: Any danger to which a system may be exposed.

Exposure: the harm, loss, or damages that can result if a threat compromises that resource.

Vulnerability: the possibility that the system will be harmed by a threat.

Social Engineering (hacker): an attack in which the perpetrator uses social skills to trick or
manipulate legitimate employees into providing confidential company information such as
passwords.

Deliberate Threats to IS:

- Software Attacks:
Remote Attacks Requiring User Action:
o Virus: Segment of computer code that performs malicious actions by attaching to
another computer program.
o Worm: Segment of computer code that performs malicious actions and will
replicate, or spread, by itself (without requiring another computer program).
o Phishing Attack: Phishing attacks use deception to acquire sensitive personal
information by masquerading as official-looking e-mails or instant messages.
o Spear Phishing: Phishing attacks target large groups of people. In spear phishing
attacks, the perpetrators find out as much information about an individual as
possible to improve their chances that phishing techniques will obtain sensitive,
personal information.

Remote Attacks Needing No User Action:

o Denial-of-Service Attack: An attacker sends so many information requests to a

target computer system that the target cannot handle them successfully and
typically crashes (ceases to function).
o Distributed Denial-of-Service (DDoS) Attack: An attacker first takes over many
computers, typically by using malicious software. These computers are called
zombies or bots. The attacker uses these bots—which form a botnet—to deliver a
coordinated stream of information requests to a target computer, causing it to
crash.
Attacks by a Programmer Developing a System:
o Trojan Horse: Software programs that hide in other computer programs and reveal
their designed behavior only when they are activated.
o Back Door: Typically a password, known only to the attacker, that allows him or her
to access a computer system at will, without having to go through any security
procedures (also called a trap door).
o Logic bomb: A segment of computer code that is embedded within an organization’s
existing computer programs and is designed to activate and perform a destructive
action at a certain time or date.
- Alien software: clandestine (secret) software that is installed on your computer through
duplicitous methods.
o Adware: software that causes pop-up advertisements to appear on your screen.
o Spyware: software that collects personal information about users without their
consent. Two common types of spyware are keystroke loggers and screen scrapers.
o Spamware: uses your computer as a launch pad for spammers.
 o Spam: unsolicited e-mail, usually advertising for products and services.
o Cookies: small amounts of information that Web sites store on your computer,
temporarily or more or less permanently.
o A rogue access point: an unauthorized access point into a wireless network. The
rogue could be someone in your organization who sets up an access point meaning
no harm but fails to inform the IT department.
o Eavesdropping: An eavesdropping attack occurs when a hacker intercepts, deletes,
or modifies data that is transmitted between two devices. Eavesdropping, also
known as sniffing or snooping, relies on unsecured network communications to
access data in transit between devices.
o Wardriving: Wardriving is the act of searching for Wi-Fi wireless networks, usually
from a moving vehicle, using a laptop or smartphone.

Risk Acceptance: Accept the potential risk, continue operating with no controls, and absorb any
damage that occurs.

Risk limitation: Limit the risk by implementing controls that minimize the impact of the threat.

Risk transference: Transfer the risk by using other means to compensate for the lose, such as by
purchasing insurance.

Accesses controls (a part of the Information Security Controls): restrict unauthorized individuals
from using information resources and involve two major functions:

- Authentication: confirms the identity of the person requiring access (e.g. biometrics, ID card,
voice, passwords etc.)
- Authorization: determines which actions, rights, or privileges the person has, based on his
or her verified identity

Chapter 5:

Difficulties in Managing Data:

- Data Redundancy: The same data are stored in multiple locations.

- Data Inconsistency: Various copies of the data do not agree.
- Program-data dependence:

Database Management: a set of programs that provide users with tools to create and manage a
database.

- What to Minimize:
o Data Redundancy
o Data Isolation
o Data Inconsistency
- What to Maximize:
o Data Security
o Data Integrity
o Data Independence (Applications and data are independent of one another; that is,
applications and data are not linked to each other, so all applications are able to
access the same data).
The Relational Database Model: is based on the concept of two-dimensional tables and is usually
designed with a number of related tables with each of these tables containing records (listed in
rows) and attributes (listed in columns).

- Entity: a person, place, thing, or event.

- Instance: refers to each row (or record) in a relational table, which is a specific, unique
representation of the entity.
- Attribute: each characteristic or quality of a particular entity.
- Primary Key (Identifiers): a field in a database that uniquely identifies each record so that it
can be retrieved, updated, and sorted.
- Foreign Keys: a field (or group of fields) in one table that uniquely identifies a row of another
table. It is used to establish and enforce a link between two tables.

Data Dictionary: defines the required format for entering the data into the database.

Normalization: the process of creating small, stable, yet flexible and adaptive data structures from
complex groups.

SQL (Structured Query Language): Data manipulation language that is used to add, change, delete,

and retrieve the data in the database.

Characteristics of Big Data:

- Volume: the size or amount of data that exists.

- Velocity: The rate at which data flows into an organization is rapidly increasing and it is
critical because it increases the speed of the feedback loop between a company and its
customers. Big data can be captured, processed, transformed, and analyzed in a reasonable
amount of time only by sophisticated information systems.
 - Variety: refers to the many types of data that are available. (Includes structured,
unstructured, and semi-structured data.

Issues with Big Data:

- Comes from untrusted data sources.

- Big Data is dirty (inaccurate, incomplete, incorrect, etc.)
- Big Data changes, especially in data streams (data quality or data itself can change).

When properly analyzed, big data can reveal valuable patterns and information.

Data Warehouse: a place where historical data is stored and organized by subject to support
decision-makers in the organization.

Data Mart: a low-cost, scaled-down version of a data warehouse designed for end users’ needs in an
individual department (finance, sales, marketing, etc.).

Both data warehouse and data mart use online analytical processing (OLAP): software technology is
used to analyze business data from different points of view.

Explicit Knowledge: more objective, rational, and technical knowledge. In an organization, explicit
knowledge consists of the policies, procedural guides, reports, products, strategies, goals, core
competencies, and IT infrastructure of the enterprise.

Tacit Knowledge: the cumulative store of subjective or experiential learning. In an organization, tacit
knowledge consists of an organization’s experiences, insights, expertise, know-how, trade secrets,
skill sets, understanding, and learning. It is generally imprecise and costly to transfer.

ISA201 MIDTERM 2 (Chap 6-9) NOTES:

Chapter 6:

- Client/server computing: a relationship in which one program, the client, requests a service
or resource from another program, the server.
- Fat client: It is a type of client/server computing that is a networked computer system with
most resources installed on local software, not distributed over a network.
- Thin client: a computer that uses resources from inside a central server instead of a hard
drive.
- Ethernet: a common LAN protocol. technology for connecting devices in a wired local area
network (LAN) or wide area network (WAN). It allows devices to communicate together via
protocols.
- 3 types of media:
- TCP/IP: (Transmission Control Protocol and Internet Protocol) TCP manages the movement,
sequences the transfer, and acknowledges the transmission of data packets. IP is responsible
for disassembling, delivering, and reassembling the data during transmission.
- Packet Switching (include pros and cons): the transmission technology that breaks up blocks
of data into packets is called packet switching. Each packet carries the information that will
help it reach its destination—the sender’s IP address, the intended receiver’s IP address, the
number of packets in the message, and the number of packets within the message. Each
packet travels independently across the network and can be routed through different paths
in the network. When the packets reach their destination, they are reassembled into the
original message.
 - Circuit Switching (include pros and cons): a type of network configuration in which a
physical path is obtained and dedicated to a single connection between two endpoints in the
network for the duration of a dedicated connection. Example: Early analog telephone.
- 4 layers of TCP model: - Application Layer – Transport Layer – Internet Layer – Network
Interface Layer.
- DNS: (Domain Name System) converts IP addresses to domain names.
- Network reality (what’s the real issue?): the principle that internet service providers (ISPs)
must treat all internet communications equally, and not discriminate or charge differently
based on user, content, website, platform, application, type of equipment, source address, a
destination address, or method of communication. The issue is that everyone pays the same
fee no matter how much they’re using the service and how much benefit they’re getting out
of using it.
- Hypertext: is the text displayed on a computer display or other electronic device with
references, called hyperlinks, to other text that the reader can immediately access, or where
text can be revealed progressively at additional levels of details.

Chapter 7:

- Digital goods: products in a digital form that are sold/consumed online. Includes features
such as: easy to copy, easy to transfer, easy to modify, non-perishable, experienced goods,
and high initial cost with low marginal costs.
- Long tail: A phenomenon whereby firms can make money by offering a near-limitless
selection.
- E-Commerce: the process of buying, selling, transferring, or exchanging products, services,
or information via computer networks, including the Internet
- Network effect (why is it important?): a phenomenon where an increased number of people
or participants improve the value of a good or service. The internet is an example of the
network effect. It is important because it gives the business a better market share and higher
value for their product, and this can generate more profit. (You have an advantage when
more people join in and buy your products or services, it increases popularity).
- First mover advantage: a competitive advantage gained by a company that first introduces a
product or service to the market. It enables a company to establish strong brand recognition
and product/service loyalty before other entrants to the market.
- Value proposition: a simple statement that summarizes why a customer would choose your
product or service. It communicates the clearest benefit that customers receive by giving
you their business.
- Revenue model: a theoretical structure that states and explains the revenue-earning
strategy of the business. It identifies which revenue source to pursue, what value to offer,
how to price the value, and who pays for the value. It is a key component of a company's
business model.
- Cost model: a method or framework for determining the total value invested to deliver a
product or service. The goal is to find an accurate way to assess value input for comparison
against value output.
- Affiliate marketing: Vendors ask partners to place logos (or banners) on the partner’s site. If
customers click on the logo, go to the vendor’s site, and make a purchase, then the vendor
pays commissions to the partners.
- Benefits and Limits of E-commerce:
 Benefits
National and International markets are
more Accessible.
Lowers costs of processing, distributing,
and retrieving information.
Provides access to a vast number of
products and services 24/7.
Deliver information, services, and products
to people in cities, rural areas, and
developing countries.
Limitations
Lack of universally accepted security
standards.
In less-developed countries
telecommunications bandwidth is often
insufficient, and Web access is expensive.
Perceptions that e-commerce is insecure
and has unresolved legal issues.
Lacks a critical mass of buyers and sellers.

- Disintermediation: a process whereby intermediaries are eliminated. (Intermediaries provide

information and perform value-added services such as consulting).
- Channel Conflict: a situation in which clicks-and-mortar companies face a conflict with their
regular distributors when they begin selling directly to customers online. These conflicts can
arise in areas such as pricing, and resource allocation (e.g., how much money to spend on
advertising).
- Multichannel (or omni-channeling): a process in which companies integrate their online and
offline channels creating the opportunity for 'showrooming.'

- B2B E-commerce (3 types):

Sell-Side Marketplace (e- Buy-Side Marketplace (e- Electronic Exchange:

distribution):
Forward Auctions
Electronic Catalogs
Third-Party Auction Sites
procurement):
Procurement Vertical Exchanges: connect
Purchasing buyers and sellers in a given
Reverse Auction industry
Group Purchasing Horizontal Exchanges:
connect buyers and sellers
across many industries.

- Cybersquatting: the practice of registering or using domain names for the purpose of
profiting from the goodwill or the trademark that belongs to someone else.
- Domain tasting: lets registrars profit from the complex money trail of pay-per-click
advertising. This is done to generate traffic from people who misspell Web addresses.

Chapter 8:

- Dematerialization: a phenomenon that occurs when the functions of many physical devices
are included in one other physical device. Smartphones include multiple functions like
cameras, internet access, games, maps, clocks, calculators, text messaging, and many others.
 - Advantages and Disadvantages of wireless media:

- 3 telecommunications satellites:
o Geostationary Earth Orbit (GEO)
o Middle Earth Orbit (MEO)
o Low Earth Orbit (LEO)

Uses: MCQ

GEO for TV Signals

MEO for GPS

LEO for Telephone

- Wireless security: prevention of unauthorized access to computers or data using wireless

networks.
o A rogue access point: an unauthorized access point into a wireless network. The
rogue could be someone in your organization who sets up an access point meaning
no harm but fails to inform the IT department.
In more serious cases, the rogue is an “evil twin”—someone who wishes to access a
wireless network for malicious purposes.
o Eavesdropping: An eavesdropping attack occurs when a hacker intercepts, deletes,
or modifies data that is transmitted between two devices. Eavesdropping, also
known as sniffing or snooping, relies on unsecured network communications to
access data in transit between devices.
o Wardriving: the act of searching for Wi-Fi wireless networks, usually from a moving
vehicle, using a laptop or smartphone.
- Near-Field Communications: has the smallest range of any short-range wireless networks
and is designed to be embedded in mobile devices such as cell phones and credit cards.
- Mobile Computing: a real-time connection between a mobile device and other computing
environments, such as the Internet or an intranet.
- 5 attributes of mobile computing: These 5 attributes come from two major characteristics
called Mobility and Broad Reach
o Ubiquity (being very common).
o Convenience (being useful, easy, or suitable for someone to use or deal with).
o Instant connectivity (enable users to connect easily and quickly to the Internet).
o Personalization (customizing the information for the individual customer).
 o Localization of Products and Services (the process of adapting a product or service to
the culture and language of customers in a specific target market).

- Internet of Things (IoT): a scenario in which objects, animals, and people are provided with
unique identifiers and the ability to automatically transfer data over a network without
requiring human-to-human or human-to-computer interaction.
Major Components:
o Physical Components (smart devices)
o Smart Components (sensors & apps)
o Connectivity Components (cellular, Wi-Fi, Bluetooth)

- QR code: a two-dimensional code, readable by dedicated QR readers and camera phones

Chapter 9:

- Web 2.0: A loose collection of information technologies and applications, plus the Web sites
that use them.
o Its importance:
 User participation
 Social interaction and collaboration
 Information sharing
 Collective intelligence

- Sharing Economy business model: An economic model that allows individuals to borrow or
rent assets owned by other individuals. Also referred to as collaborative consumption.
Maximization of good’s capacity, saving time and money for both the producer and
consumer.

- Collaborative Consumption: An economic model based on sharing, swapping, trading, or

renting products and services, enabling access over ownership.
o Advantages: self-management, variety, flexibility, and positive environmental impact
o Disadvantages: Law and regulatory adjustments, resources and pay issues, employee
benefits, and protection,

ACRONYMS:

- BPS: bits per second (refers to the bandwidth aka transmission capacity of a network)
- LAN: Local Area Network
- WAN: Wide Area Network
- SDN: Software-Defined Networks
- TCP/IP: Transmission Control Protocol and Internet Protocol.
- DNS: Domain Name System
- ISP: Internet Service Provider
- ICANN: Internet Corporation for Assigned Names
- TLD: Top-Level Domain
- IANA: Internet Assigned Numbers Authority
- ccTLD: Country-code top-level domains
 - IDN ccTLD: Internationalized country code top-level domains
- gTLD: Generic top-level domains
- WWW: World Wide Web
- HTML: Hypertext Markup Language
- HTTP: Hypertext Transfer Protocol
- URLs: Uniform Resource Locators
- GPS: Global Positioning Systems
- Wi-Fi: Wireless Fidelity
- WLAN: Wireless Local Area Networks
- IoT: Internet of Things
- WSN: Wireless Sensor Networks
- RFID: Radio-Frequency Identification
- UPC: Universal Product Code
- RSS: Really Simple Syndication

Chapter 12:

Phases of the Decision-Making Process:

- Intelligence Phase: managers examine a situation and then identify and define the problem
or opportunity.
- Design Phase: decision makers construct a model for addressing the situation. They perform
this task by making assumptions that simplify reality and by expressing the relationships
among all of the relevant variables. Managers then validate the model by using test data.
Finally, decision-makers set criteria for evaluating all of the potential solutions that are
proposed.
- Choice Phase: involves selecting a solution or course of action that seems best suited to
resolve the problem. This solution (the decision) is then implemented.
- Implementation Phase: is successful if the proposed solution solves the problem or seizes
the opportunity. If the solution fails, then the process returns to the previous phases.
Computer-based decision support assists managers in the decision-making process.

Problem Structure: where decision-making processes fall along a continuum ranging from highly
structured to highly unstructured.

- Structured: Problems routine in nature. They commonly occur in a similar or recognizable

way within the organization.
- Semi-Structured: Such problems arise when managers in organizations are faced with
decisions where some but not all aspects of a task or procedure are known.
- Unstructured: Problems introduced to an organization when facing unusual situation and
their solution are different and sometimes unique.

Data Mining (tool used in Descriptive Analytics): the process of searching for valuable business
information in a large database, data warehouse, or data mart.

- Data mining can perform 2 basic operations:

o predicting trends and behaviors
o identifying previously unknown patterns.
Capabilities of Dashboards:

- Critical Success Factors (CSF): These factors are most critical for the success of a business.
They can be organizational, industrial, departmental, or for individual workers.
- Key Performance Indicators (KPI): The specific measures of CSFs.

Business Analytics Process: (written question for case):

- Descriptive analytics: the process of using current and historical data to identify trends and
relationships through statistical procedures. “What has happened?”
- Predictive analytics: methods (statistical and other) used that generate data predictions or
future outcomes. “What could happen?”
- Prescriptive analytics: the use of advanced processes and tools to analyze data and content
to recommend the optimal course of action or strategy moving forward. “What should we
do?”

IT productivity paradox: as more investment is made in information technology, worker productivity

may go down instead of up.