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Assignment 87

20SMGB310 – Management Information System

Assessment 2 Presentation- Week 10

Topic 1:

Create your own business. What is the role of business process management in enhancing your business? Suggest information systems appropriate for that particular business, including those based on Internet technology and evaluate them. develop a system you would want to use and explain why you would want that system in your business. How will they be used ethically (Chapter 4)?

Notes:

– Demonstrate an understanding of the main topic

– Recommendations are contemporary, realistic and align with theory

– Quality of Research

– Presentation material, Report Format, Spelling, grammar, punctuation

– Around 8-10 slides

– Individual presentation

– 8- 10 minutes’ presentation

Students should aim for a minimum of three (3) peer reviewed journal articles

Essentials of Management Information Systems

Thirteenth Edition

Chapter 2

Global E-business and Collaboration

Learning Objectives
2.1 What major features of a business are important for understanding the role of information systems?
2.2 How do systems serve different management groups in a business, and how do systems that link the enterprise improve organizational performance?
2.3 Why are systems for collaboration and social business so important, and what technologies do they use?
2.4 What is the role of the information systems function in a business?
2.5 How will M I S help my career?

Video Cases
Case 1: Walmart’s Retail Link Supply Chain
Case 2: CEMEX – Becoming a Social Business
Instructional Video 1: U S Foodservice Grows Market with Oracle C R M on Demand

Copyright © 2019 Pearson Education Ltd.
Enterprise Social Networking Helps Innovate and Improve Quality (1 of 2)
Problem
Hierarchical top-down processes
Large geographically dispersed workforce
Solutions
Develop knowledge-sharing strategy and goals
Redesign knowledge and collaboration processes
Microsoft Yammer
Enterprise social networking

Copyright © 2019 Pearson Education Ltd.
Enterprise Social Networking Helps Innovate and Improve Quality (2 of 2)
Use of new technology to engage employees and enabled knowledge gathering and sharing
Demonstrates how outdated processes can affect knowledge sharing and innovation
Illustrates why organizations rely on information systems to improve performance and remain competitive

Organizing a Business: Basic Business Functions (1 of 2)
Business: formal organization that makes products or provides a service in order to make a profit
Four basic business functions
Manufacturing and production
Sales and marketing
Finance and accounting
Human resources

Organizing a Business: Basic Business Functions (2 of 2)
Five basic business entities
Suppliers
Customers
Employees
Invoices/payments
Products and services

Figure 2.1 The Four Major Functions of a Business

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Figure 2.1, Page 44.
Every business, regardless of its size, must perform four functions to succeed. It must produce the product or service; market and sell the product or service; keep track of accounting and financial transactions; and perform basic human resources tasks such as hiring and retaining employees.
Emphasize that each function is critical to any business, and explain that the product or service is at the center of the diagram because it “governs” the way each business approaches the four major business functions.

Business Processes
Logically related set of tasks that define how specific business tasks are performed
The tasks each employee performs, in what order, and on what schedule
E.g., Steps in hiring an employee
Some processes tied to functional area
Sales and marketing: identifying customers
Some processes are cross-functional
Fulfilling customer order

Figure 2.2 The Order Fulfillment Process

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Figure 2.2, Page 45.
Fulfilling a customer order involves a complex set of steps that requires the close coordination of the sales, accounting, and manufacturing functions.
Emphasize that each rectangle represents one part of the larger business process of order fulfillment. Notice that this business process spans more than one type mentioned on the previous slide.

How I T Enhances Business Processes
Automation of manual processes
Change the flow of information
Replace sequential processes with simultaneous activity
Transform how a business works
Drive new business models

Managing a Business and Firm Hierarchies
Firms coordinate work of employees by developing hierarchy in which authority is concentrated at top.
Senior management
Middle management
Operational management
Knowledge workers
Data workers
Production or service workers
Each group has different needs for information.

Figure 2.3 Levels in a Firm

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Figure 2.3, Page 46.
Business organizations are hierarchies consisting of three principal levels: senior management, middle management, and operational management. Information systems serve each of these levels. Scientists and knowledge workers often work with middle management.

The Business Environment
Businesses depend heavily on their environments for capital, labor, supplies, and more.
Global environment
Technology and science, economy, politics, international change
Immediate environment
Customers, suppliers, competitors, regulations, stockholders

Figure 2.4 The Business Environment

The Role of Information Systems in a Business
Firms invest in information systems in order to:
Achieve operational excellence
Develop new products and services
Attain customer intimacy and service
Improve decision making
Promote competitive advantage
Ensure survival

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To accomplish business objectives, businesses develop and use information systems.
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Systems for Different Management Groups
Transaction processing systems (T P S)
Keep track of basic activities and transactions of organization
Systems for business intelligence
Address decision-making needs of all levels of management
Management information systems (M I S)
Decision support systems (D S S)
Executive support systems (E S S)

Transaction Processing Systems
Serve operational managers
Principal purpose is to answer routine questions and to track the flow of transactions through the organization
E.g., inventory questions, granting credit to customer
Monitor status of internal operations and firm’s relationship with external environment
Major producers of information for other systems
Highly central to business operations and functioning

Figure 2.5 A Payroll T P S

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Figure 2.5, Page 49.
A TPS for payroll processing captures employee payment transaction data (such as a timecard). System outputs include online and hard copy reports for management and employee paychecks.
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Management Information Systems
Provide middle managers with reports on firm’s performance, to help monitor firm and predict future performance
Summarize and report on basic operations using data from T P S
Provide weekly, monthly, annual results, but may enable drilling down into daily or hourly data
Typically not very flexible systems with little analytic capability

Figure 2.6 How M I S Obtain Their Data from the Organization’s T P S

Figure 2.7 Sample M I S Report

Decision Support Systems
Serve middle managers
Support nonroutine decision making
Example: What is impact on production schedule if December sales doubled?
Often use external information as well from T P S and M I S
Model driven D S S
Voyage-estimating systems
Data driven D S S
Intrawest’s marketing analysis systems

Figure 2.8 Voyage-Estimating Decision Support System

Executive Support Systems
Serve senior managers
Address strategic issues and long-term trends
E.g., what products should we make in five years?
Address nonroutine decision making
Provide generalized computing capacity that can be applied to changing array of problems
Draw summarized information from M I S, D S S, and data from external events
Typically use portal with Web interface, or digital dashboard, to present content

Figure Digital Dashboard

Systems for Linking the Enterprise
Enterprise applications
Systems that span functional areas, focus on executing business processes across the firm, and include all levels of management
Four major types
Enterprise systems
Supply chain management systems
Customer relationship management systems
Knowledge management systems

Figure 2.9 Enterprise Application Architecture

Enterprise Systems
Also called enterprise resource planning (E R P) systems
Integrate data from key business processes into single system
Speed communication of information throughout firm
Enable greater flexibility in responding to customer requests, greater accuracy in order fulfillment
Enable managers to assemble overall view of operations

Supply Chain Management (S C M) Systems
Manage relationships with suppliers, purchasing firms, distributors, and logistics companies
Manage shared information about orders, production, inventory levels, and so on
Goal is to move correct amount of product from source to point of consumption as quickly as possible and at lowest cost
Type of interorganizational system
Automating flow of information across organizational boundaries

Customer Relationship Management (C R M) Systems
Help manage relationship with customers.
Coordinate business processes that deal with customers in sales, marketing, and customer service
Goals:
Optimize revenue
Improve customer satisfaction
Increase customer retention
Identify and retain most profitable customers
Increase sales

Knowledge Management Systems
Manage processes for capturing and applying knowledge and expertise
Collect relevant knowledge and make it available wherever needed in the enterprise to improve business processes and management decisions
Link firm to external sources of knowledge

Intranets and Extranets
Technology platforms that increase integration and expedite the flow of information
Intranets:
Internal networks based on Internet standards
Often are private access area in company’s website
Extranets:
Company websites accessible only to authorized vendors and suppliers
Facilitate collaboration

E-Business, E-Commerce, and E-Government
E-business:
Use of digital technology and Internet to drive major business processes
E-commerce:
Subset of e-business
Buying and selling goods and services through Internet
E-government:
Using Internet technology to deliver information and services to citizens, employees, and businesses

Copyright © 2019 Pearson Education Ltd.
What is Collaboration?
Growing importance of collaboration:
Changing nature of work
Growth of professional work
Changing organization of the firm
Changing scope of the firm
Emphasis on innovation
Changing culture of work and business

What is Social Business?
Use of social networking platforms to engage employees, customers, suppliers
Conversations to strengthen bonds
Requires information transparency
Seen as way to drive operational efficiency, spur innovation, accelerate decision making

Business Benefits of Collaboration and Social Business
Investment in collaboration technology can return large rewards, especially in sales and marketing, research and development
Productivity: Sharing knowledge and resolving problems
Quality: Faster resolution of quality issues
Innovation: More ideas for products and services
Customer service: Complaints handled more rapidly
Financial performance: Generated by improvements in factors above

Figure 2.10 Requirements for Collaboration

Tools and Technologies for Collaboration and Teamwork
Email and instant messaging (I M)
Wikis
Virtual worlds
Collaboration and social business environments
Virtual meeting systems (telepresence)
Cloud collaboration services
Google Drive, Dropbox
Microsoft SharePoint and I B M Notes
Enterprise social networking tools

Interactive Session
Class discussion
Discuss the features of FaceTime as a collaboration software
Why is it required a tool for collaboration? Was FaceTime a feasible option?
Name some other areas where such software can be useful. Discuss at least one such area.

Evaluating and Selecting Collaboration Tools
What are your firm’s collaboration challenges?
What kinds of solutions are available?
Analyze available products’ cost and benefits.
Evaluate security risks.
Consult users for implementation and training issues.
Select candidate tools and evaluate vendors.

Figure 2.11 The Time/Space Collaboration and Social Tool Matrix

The Information Systems Department
Programmers
Systems analysts
Principle liaisons to rest of firm
Information systems managers
Leaders of teams of programmers and analysts, project managers, physical facility managers, telecommunications managers, database specialists, managers of computer operations, and data entry staff
Senior managers
End users

Information Systems Services
Computing services
Telecommunications services
Data management services
Application software services
Physical facilities management services
I T management services
I T standards services
I T educational services
I T research and development services

How Will M I S Help My Career?
The Company: Comprehensive Supplemental Insurance U S A
Position Description
Job Requirements
Interview Questions

Essentials of Management Information Systems

Thirteenth Edition

Chapter 3

Achieving Competitive Advantage with Information Systems

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Learning Objectives
3.1 How do Porter’s competitive forces model, the value chain model, synergies, core competencies, and network-based strategies help companies use information systems for competitive advantage?
3.2 How do information systems help businesses compete globally?
3.3 How do information systems help businesses compete using quality and design?
3.4 What is the role of business process management (B P M) in enhancing competitiveness?
3.5 How will M I S help my career?

Porter’s Competitive Forces Model
Five competitive forces shape fate of firm
Traditional competitors
New market entrants
Substitute products and services
Customers
Suppliers

Figure 3.1 Porter’s Competitive Forces Model

Copyright © 2019 Pearson Education Ltd.
Figure 3.1, Page 81.
In Porter’s competitive forces model, the strategic position of the firm and its strategies are determined not only by competition with its traditional direct competitors but also by four forces in the industry’s environment: new market entrants, substitute products, customers, and suppliers.
A good way to teach this model is to take a specific industry and ask students to fill in the boxes in the model (starting with the environmental boxes). Any industry can be analyzed: automobiles, PC computers, smartphones, and so on.
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Information System Strategies for Dealing with Competitive Forces (1 of 5)
Basic strategy: Align I T with business objectives
Identify business goals and strategies
Break strategic goals into concrete activities and processes
Identify metrics for measuring progress
Determine how I T can help achieve business goals
Measure actual performance

Information System Strategies for Dealing with Competitive Forces (2 of 5)
Low-cost leadership
Use information systems to achieve the lowest operational costs and the lowest prices
E.g. Walmart
Inventory replace systems sends orders to suppliers when purchase recorded at cash register
Minimizes inventory at warehouses, operating costs
Efficient customer response system

Information System Strategies for Dealing with Competitive Forces (3 of 5)
Product differentiation
Use information systems to enable new products and services, or greatly change the customer convenience in using your existing products and services
E.g., Carriage, Apple’s i Phone, Rove
Use information systems to customize, personalize products to fit specifications of individual consumers
E.g., Nike’s NIKE i D program for customized sneakers, Pinterest, Net a porter.

Information System Strategies for Dealing with Competitive Forces (4 of 5)
Focus on market niche
Use information systems to enable specific market focus, and serve narrow target market better than competitors.
Analyzes customer buying habits, preferences
Advertising pitches to smaller and smaller target markets
E.g., Booking, Sephora, Tatayab
Analyzes data collected on guests to determine preferences and guest’s profitability

Information System Strategies for Dealing with Competitive Forces (5 of 5)
Strengthen customer and supplier intimacy.
Strong linkages to customers and suppliers increase switching costs and loyalty
Toyota: uses I S to facilitate direct access from suppliers to production schedules
Permits suppliers to decide how and when to ship supplies to plants, allowing more lead time in producing goods.
Amazon: keeps track of user preferences for purchases, and recommends titles purchased by others

The Internet’s Impact on Competitive Advantage
Enables new products and services
Encourages substitute products
Lowers barrier to entry
Changes balance of power of customers and suppliers
Transforms some industries
Creates new opportunities for creating new markets, building brands, and large customer bases
Smart products and the Internet of Things

The Business Value Chain Model
Highlights specific activities in a business where competitive strategies can best be applied and where information systems are likely to have a strategic impact.
Primary activities
Support activities
Benchmarking
Best practices

Figure 3.2 The Value Chain Model

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Figure 3.2, Page 89.
This figure provides examples of systems for both primary and support activities of a firm and of its value partners that would add a margin of value to a firm’s products or services.
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The Value Web
A firm’s value chain is linked to the value chains of its suppliers, distributors, and customers.
Value web
Collection of independent firms that use information technology to coordinate their value chains to produce a product collectively.
Value webs are flexible and adapt to changes in supply and demand.

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The phenomenon where several firms cooperate with one another in order to put together for the customer a single product or service goes by many names. At times it has been referred to as the extended firm, the virtual firm, the contract firm, and so on. To a large extent, business firms have always been dependent on their suppliers, logistics partners (trucking and railroads), and distributors including retailers. But in the Internet age, this kind of dependence and coordination takes place much more broadly and continuously. A small Internet company often works with a design firm thousands of miles away, a software firm on a different continent, and sells its products using Google’s Ad Word program. The customer receives a single product or service which was co-produced by many firms working together closely.
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Figure 3.3 The Value Web

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Figure 3.3, Page 91.
The value web is a networked system that can synchronize the value chains of business partners within an industry to respond rapidly to changes in supply and demand.
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Synergies, Core Competencies, and Network-Based Strategies
Information systems improve performance of business units by promoting
Communication
Synergies
Core competencies

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Synergies
When output of some units can be used as inputs to other units
When two firms can pool markets and expertise (e.g., recent bank mergers)
Lower costs and generate profits
Enabled by information systems that ties together disparate units so they act as whole

Core Competency
Activities for which firm is world-class leader
E.g., world’s best miniature parts designer, best package delivery service, etc
Relies on knowledge gained over years of experience as well as knowledge research
Any information system that encourages the sharing of knowledge across business units enhances competency
E.g., Procter & Gamble uses intranet to help people working on similar problems share ideas and expertise.

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The Internet and Globalization
Prior to the Internet, competing globally was only an option for huge firms able to afford factories, warehouses, and distribution centers abroad.
The Internet drastically reduces costs of operating globally.
Globalization benefits
Scale economies and resource cost reduction
Higher utilization rates, fixed capital costs, and lower cost per unit of production
Speeding time to market

Figure 3.4 Apple i Phone’s Global Supply Chain

Copyright © 2019 Pearson Education Ltd.
Figure 3.4, Page 94.
Apple designs the iPhone in the United States and relies on suppliers in the United States, Germany, Italy, France, and South Korea for parts. Final assembly occurs in China.
Most of the electronic products we use today are “global” in the sense that their design, production, and distribution take place across nearly all continents. Even automobiles increasingly are global collections of parts and sub-assemblies.
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Global Business and System Strategies
Domestic exporters
Multinationals
Franchisers
Transnationals

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There are a lot of ways to set up a global information system. Much depends on the type of company. Most companies today have large data centers spread around the world to handle their information needs on a regional basis. Some are more centralized than others. Generally, the trend was to allow regions considerable autonomy, but this strategy backfired as firms sought the efficiencies of a single global product, service, and database. Today the trend is towards centralized global systems for financial results, and supply chain coordination, and local/regional systems for customer-facing activities.
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What is Quality?
Producer perspective
Conformance to specifications and absence of variation from specs
Customer perspective
Physical quality (reliability), quality of service, psychological quality
Total quality management (T Q M)
Quality control is end in itself
All people, functions responsible for quality

How Information Systems Improve Quality
Reduce cycle time and simplify production
Benchmark
Use customer demands to improve products and services
Improve design quality and precision
Computer-aided design (C A D) systems
Improve production precision and tighten production tolerances

Copyright © 2019 Pearson Education Ltd.
This slide lists some of the more common ways IS has played a central role in the quality movement.
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What is Business Process Management (B P M)?
Technology alone is often not enough to improve business
Organizational changes often necessary
Minor changes in work habits
Redesigning entire business processes
Aims to continuously improve processes
Uses variety of tools and methodologies to
Understand existing processes
Design and optimize new processes

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If your company has the most efficient, highest quality processes that result in few errors, you have a competitive advantage. However, this advantage can disappear pretty quickly as your competition catches up, and they will catch up. One answer is a continuous, incremental improvement process that is ongoing and results in your processes always being at the leading edge.
A major point of this book is to let students know that you can’t just plug in computers and expect miracles. You need to think about your business processes and figure out how to improve, and then figure out how IT can help improve the processes even further.
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Steps in B P M
Identify processes for change
Analyze existing processes
Design new process
Implement new process
Continuous measurement

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Figure 3.6 As-Is Business Process for Purchasing a Book from a Physical Bookstore

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Figure 3.6, Page 100.
Purchasing a book from a physical bookstore requires both the seller and the customer to perform many steps.
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Figure 3.7 Redesigned Process for Purchasing a Book Online

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Figure 3.7, Page 101.
Using Internet technology makes it possible to redesign the process for purchasing a book so that it only has a few steps and consumes
fewer resources.
Competing on business processes almost always means simplifying the process, reducing the number of people involved, reducing the decision time, expanding the remaining employees’ job responsibilities, and using information systems to speed the flow and quality of information.
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Business Process Reengineering
A radical form of fast change
Not continuous improvement, but elimination of old processes, replacement with new processes, in a brief time period
Can produce dramatic gains in productivity
Can produce more organizational resistance to change

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“Reengineering” was at one point a highly regarded approach to high-speed dramatic change in business firms. It often resulted in profound simplification of antiquated business processes, resulting in severe disruptions to the work force which was decimated by layoffs. Most grand reengineering efforts did not produce the promised results, or produced results in very limited areas of the firm which had little impact on overall efficiency and productivity. Today industry and firm restructuring generally takes place through the impact of global markets on firms, and less by a planned form of social change.
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How Will M I S Help My Career?
The Company: A+ Superior Data Quality
Position Description
Job Requirements
Interview Questions

Essentials of Management Information Systems

Thirteenth Edition

Chapter 4

Ethical and Social Issues in Information Systems

Learning Objectives
4.1 What ethical, social, and political issues are raised by information systems?
4.2 What specific principles for conduct can be used to guide ethical decisions?
4.3 Why do contemporary information systems technology and the Internet pose challenges to the protection of individual privacy and intellectual property?
4.4 How have information systems affected laws for establishing accountability, liability, and the quality of everyday life?
4.5 How will M I S help my career?

Copyright © 2019 Pearson Education Ltd.
This chapter examines the ethical, social, and political issues raised by information systems. It can be useful to ask students to help you put together a list of these issues categorized into ethical, social, and political columns.
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Video Cases
Case 1: What Net Neutrality Means for You
Case 2: Facebook and Google Privacy: What Privacy?
Case 3: United States v. Terrorism: Data Mining for Terrorists and Innocents
Instructional Video: Viktor Mayer Schönberger on the Right to Be Forgotten

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The Dark Side of Big Data (2 of 2)
Organizations like Boutiquaat use predictive modeling to identify individual customers that fit risk or weakness profiles
Demonstrates how technological innovations can be a double-edged sword
Illustrates the ability of I T systems to support decision making

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What Ethical, Social, and Political Issues are Raised by Information Systems? (1 of 2)
Recent cases of failed ethical judgment in business
In many, information systems used to bury decisions from public studies
Ethics
Principles of right and wrong that individuals, acting as free moral agents, use to make choices to guide their behaviors

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There are numerous examples of business ethical failures to ask students about. You could ask how information systems or their absence might have been related to the 2008-2009 financial crisis in the United States, the investment banks that suffered heavy losses, and individuals who were able to defraud investors of millions. What role did IS have in this crisis? The Madoff Ponzi scheme is instructive: systems were used for more than twenty years to fool investors, regulators, and investigators about the true nature of Madoff’s business.
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What Ethical, Social, and Political Issues are Raised by Information Systems? (2 of 2)
Information systems raise new ethical questions because they create opportunities for:
Intense social change, threatening existing distributions of power, money, rights, and obligations
New kinds of crime

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Ask students to describe some of the ethical dilemmas that are presented by information systems and new developments in technology. Privacy is an important issue—mention the opening case again and explain that the business models of Google, Facebook, and many other sites depend on getting users to give up their personal information so it can be used to market and sell them products.
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A Model for Thinking About Ethical, Social, and Political Issues
Society as a calm pond
I T as rock dropped in pond, creating ripples of new situations not covered by old rules
Social and political institutions cannot respond overnight to these ripples—it may take years to develop etiquette, expectations, laws
Requires understanding of ethics to make choices in legally gray areas

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Can students provide any examples of how IT has challenged some area of ethics, social life, or legal arrangements?
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Figure 4.1 The Relationship Between Ethical, Social, and Political Issues in an Information Society

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Figure 4.1, Page 119.
The introduction of new information technology has a ripple effect, raising new ethical, social, and political issues that must be dealt with on the individual, social, and political levels. These issues have five moral dimensions: information rights and obligations, property rights and obligations, system quality, quality of life, and accountability and control.
Explain to students that the graphic displays the five moral dimensions listed in the caption. Consider online P2P bit torrent shared music as an example of how a new technology has ethical, social, and eventually political (legal) ramifications. If music can be ripped off, why pay any money for it? Why should anyone care about record labels or artist’s income?
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Five Moral Dimensions of the Information Age
Information rights and obligations
Property rights and obligations
Accountability and control
System quality
Quality of life

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Give examples of each of the five major issues. For example, an issue dealing with information rights might be, what rights do individuals possess with respect to themselves? What do they have a right to protect? An issue dealing with quality of life might be: what values should be preserved in an information- and knowledge-based society? An issue dealing with system quality might be: what standards of data and system quality should we demand to protect individual rights and the safety of society?
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Key Technology Trends That Raise Ethical Issues
Computing power doubles every 18 months
Data storage costs rapidly decline
Data analysis advances
Networking advances
Mobile device growth impact

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Which of these trends do students believe might have the most adverse consequences? Why do they feel this way? Do the positives outweigh the negatives for all four issues? Why or why not?
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Advances in Data Analysis Techniques
Profiling
Combining data from multiple sources to create records of detailed information on individuals
Nonobvious relationship awareness (N O R A)
Combining data from multiple sources to find unclear hidden connections that might help identify criminals or terrorists

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Online profiling is one of the most controversial computer-related ethical, social, and political issues today. Although it is used fairly extensively on the Internet, it is also used by insurance firms, health insurance firms, casinos, and of course national authorities around the globe for finding potential terrorists.
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Figure 4.2 Nonobvious Relationship Awareness (N O R A)

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Figure 4.2, Page 122.
NORA technology can take information about people from disparate sources and find obscure, nonobvious relationships. It might discover, for example, that an applicant for a job at a casino shares a telephone number with a known criminal and issue an alert to the hiring manager.
Explain that NORA is used by both the government and the private sector for its profiling capabilities. Ask students to provide potential examples of NORA (other than the one mentioned in the caption) for both governmental and business purposes. One such example might be an airline identifying potential terrorists attempting to board a plane. Another might be government identifying potential terrorists by monitoring phone calls.

Basic Concepts: Responsibility, Accountability, and Liability
Responsibility
Accepting the potential costs, duties, and obligations for decisions
Accountability
Mechanisms for identifying responsible parties
Liability
Permits individuals (and firms) to recover damages done to them
Due process
Laws are well-known and understood, with an ability to appeal to higher authorities

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Explain that information systems do not exist in a vacuum and that these concepts are instrumental in understanding the impact of systems and measuring their success. Ask students why liability and due process are such important ethical concepts? (A rough answer would be that they provide recourse to individuals negatively effected by mismanagement of information systems, providing incentive to “play by the rules”.)
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Ethical Analysis
Five-step process for ethical analysis
Identify and clearly describe the facts.
Define the conflict or dilemma and identify the higher-order values involved.
Identify the stakeholders.
Identify the options that you can reasonably take.
Identify the potential consequences of your options.

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Do students believe that any aspect of ethical analysis is lacking from this process? If so, what? Can students offer a brief example of an ethical dilemma and how they would resolve it using this process? One class exercise is to work with students to identify an ethical situation they are aware of, or that may have been in the news. Then, go through the ethical analysis described in the slide to illustrate the process of analyzing an ethical situation.
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Professional Codes of Conduct
Promulgated by associations of professionals
American Medical Association (A M A)
American Bar Association (A B A)
Association for Computing Machinery (A C M)
Promises by professions to regulate themselves in the general interest of society

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Real-World Ethical Dilemmas
One set of interests pitted against another
Examples
Monitoring employees: Right of company to maximize productivity of workers versus workers’ desire to use Internet for short personal tasks
Facebook monitors users and sells information to advertisers and app developers

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Other ethical dilemmas include companies trying to use new systems to reduce the size of their workforce, such as telephone companies using automated systems to reduce the need for human operators. Emphasize that in cases like these, right and wrong are not clearly defined, but instead, contrasting values are at odds with one another (companies value productivity, employees value their work).
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Information Rights: Privacy and Freedom in the Internet Age (1 of 3)
Privacy
Claim of individuals to be left alone, free from surveillance or interference from other individuals, organizations, or state; claim to be able to control information about yourself
In the United States, privacy protected by:
First Amendment (freedom of speech and association)
Fourth Amendment (unreasonable search and seizure)
Additional federal statues (e.g., Privacy Act of 1974)

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Do students believe that there are sufficient protections for privacy in law? If not, what are possible methods of developing appropriate privacy protections? Table 4.3 in the text lists a variety of other laws affecting both the government and private institutions, but few areas of the private sector are as well regulated with respect to privacy. Do an in-class poll and ask students who among them feel they can control the use of their personal information on the Internet. You should get no one raising their hand.
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Information Rights: Privacy and Freedom in the Internet Age (2 of 3)
Fair information practices
Set of principles governing the collection and use of information
Basis of most U.S. and European privacy laws
Used to drive changes in privacy legislation
C O P P A
Gramm-Leach-Bliley Act
H I P A A

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Explain what is meant by a “mutuality of interest between record holder and individual.” (Briefly, the individual wants to engage in a transaction, and the record holder needs information about the individual to support the transaction—both are interested parties in the transaction.)
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Internet Challenges to Privacy (1 of 2)
Cookies
Identify browser and track visits to site
Super cookies (Flash cookies)
Web beacons (web bugs)
Tiny graphics embedded in emails and web pages
Monitor who is reading email message or visiting site
Spyware
Surreptitiously installed on user’s computer
May transmit user’s keystrokes or display unwanted ads
Google services and behavioral targeting

Copyright © 2019 Pearson Education Ltd.
What are students’ attitudes toward these technologies? Emphasize that cookies can be useful at trusted sites, but perhaps invasive at others. Have students had any experience with spyware or web bugs on their own computers? How would they know they are being tracked?
19

Internet Challenges to Privacy (2 of 2)
The United States allows businesses to gather transaction information and use this for other marketing purposes.
Opt-out versus. opt-in model
Online industry promotes self-regulation over privacy legislation.
Complex/ambiguous privacy statements
Opt-out models selected over opt-in
Online “seals” of privacy principles

Copyright © 2019 Pearson Education Ltd.
Do students believe that businesses should be pressed to provide more comprehensive privacy protections online? Explain that businesses prefer the looser regulation, but that individuals may not. Also emphasize that most individuals do not take the proper steps to ensure their own privacy in any case. Most people do not know how to protect their privacy online. Does that mean that privacy is unimportant or that people don’t care?
20

Figure 4.3 How Cookies Identify Web Visitors
The Web server reads the user’s Web browser and determines the operating system, browser name, version number, Internet address, and other information.
The server transmits a tiny text file with user identification information called a cookie, which the user’s browser receives and stores on the user’s computer.
When the user returns to the Web site, the server requests the contents of any cookie it deposited previously in the user’s computer.
The Web server reads the cookie, identifies the visitor, and calls up data on the user.

Copyright © 2019 Pearson Education Ltd.
Figure 4.3, Page 129.
Cookies are written by a website on a visitor’s hard drive. When the visitor returns to that website, the web server requests the ID number from the cookie and uses it to access the data stored by that server on that visitor. The website can then use these data to display personalized information.
Ask students to pinpoint where potential privacy invasions might occur in the process shown above. Students may suggest that no real privacy violation is occurring in the figure, which is a legitimate point of view. If so, ask them how they might feel about a website they did not trust engaging in the displayed process.
21

Technical Solutions
Solutions include:
Email encryption
Anonymity tools
Anti-spyware tools
Overall, technical solutions have failed to protect users from being tracked from one site to another
Browser features
“Private” browsing
“Do not track” options

Property Rights: Intellectual Property
Intellectual property
Tangible and intangible products of the mind created by individuals or corporations
Protected in four main ways:
Copyright
Patents
Trademarks
Trade secret

Copyright © 2019 Pearson Education Ltd.
Do students believe that the property rights guaranteed by copyrights, patents, trademarks, and trade secrets are strong enough to avoid the theft of intellectual property online? Give an example of a copyright (which could include the copyright of a photo or newspaper article). Give an example of a patent (such as Amazon’s One-Click shopping as a business process patent, or Kodak‘s claim to have a patent on digital still cameras with digital displays for a viewfinder). Give an example of a trademark (such as the Google icon). And give an example of a trade secret (the formula for Coke; a method of doing business or business process).
23

Challenges to Intellectual Property Rights
Digital media different from physical media
Ease of replication
Ease of transmission (networks, Internet)
Ease of alteration
Compactness
Difficulties in establishing uniqueness
Digital Millennium Copyright Act (D M C A)

Copyright © 2019 Pearson Education Ltd.
Students may be unwilling to admit to infringing upon intellectual property rights themselves, but ask them whether they are familiar with the Internet and its ability to bypass intellectual property protections. Do they believe that legislation such as the DMCA is having any effect? How many have friends who download “free” music from P2P sights? Free videos?
24

Computer-Related Liability Problems
If software fails, who is responsible?
If seen as part of a machine that injures or harms, software producer and operator may be liable
If seen as similar to book, difficult to hold author/publisher responsible
If seen as a service, would this be similar to telephone systems not being liable for transmitted messages?

Copyright © 2019 Pearson Education Ltd.
Using the example from the text, who do students consider to be the liable party for the incident involving Target’s data breach? Is Target responsible for allowing the breach to occur despite efforts it made to secure the information? Should the breach be considered just a cost of doing business in the current age, where businesses have insurance policies to protect them against losses and customers have a maximum liability of $50 for fraudulent credit card purchases?
25

System Quality: Data Quality and System Errors
What is an acceptable, technologically feasible level of system quality?
Flawless software is economically unfeasible
Three principal sources of poor system performance
Software bugs, errors
Hardware or facility failures
Poor input data quality (most common source of business system failure)

Copyright © 2019 Pearson Education Ltd.
Do students have any opinion about when software is “good enough?” Does it depend on the particular product? For example, distinguish between software used by air traffic controllers and software used for word processing. Do students believe that there are different levels of acceptable quality for these products?
26

Quality of Life: Equity, Access, Boundaries (1 of 3)
Negative social consequences of systems
Balancing power: center versus periphery
Rapidity of change: reduced response time to competition
Maintaining boundaries: family, work, and leisure
Dependence and vulnerability
Computer crime and abuse

Copyright © 2019 Pearson Education Ltd.
Ask students whether they have witnessed any of these negative consequences first hand. It’s likely that they know someone who has become dependent on their computer to some extent or have even experienced something similar first hand. Which of the above consequences do students feel is the most alarming?
27

Quality of Life: Equity, Access, Boundaries (2 of 3)
Computer crime and abuse
Computer crime
Computer abuse
Spam
CAN-SPAM Act of 2003
Employment
Trickle-down technology
Reengineering job loss

Copyright © 2019 Pearson Education Ltd.
Ask students what experience they have had with spam. A notable statistic is that spam accounts for more than 75% of all email traffic and is relatively unlikely to decrease, because it is so difficult to regulate and so cheap to send.
Do students believe that the end result of continuing advances in information technology will be rising unemployment and a small number of elite corporate professionals? Students may enjoy debating this idea, which is somewhat far-fetched, but conceptually stimulating. There is some evidence that today’s manufacturing technology (including robots and computer controlled machines) is displacing factory jobs.
28

How Will M I S Help My Career?
The Organization: Pinnacle Air Force Base
Position Description
Job Requirements
Interview Questions

Copyright © 2019 Pearson Education Ltd.
A good opportunity for a class discussion of the new Section on careers. Would any in the class be interested in a job like this? What do they think are the most important skills the employer is looking for? How would they answer the interviewer questions?
29

Essentials of Management Information Systems

Thirteenth Edition

Chapter 4

Ethical and Social Issues in Information Systems

Copyright © 2019 Pearson Education Ltd.
Can students provide any examples of how IT has challenged some area of ethics, social life, or legal arrangements?
7

Figure 4.1 The Relationship Between Ethical, Social, and Political Issues in an Information Society

Five Moral Dimensions of the Information Age
Information rights and obligations
Property rights and obligations
Accountability and control
System quality
Quality of life

Key Technology Trends That Raise Ethical Issues
Computing power doubles every 18 months
Data storage costs rapidly decline
Data analysis advances
Networking advances
Mobile device growth impact

Figure 4.2 Nonobvious Relationship Awareness (N O R A)

Quality of Life: Equity, Access, Boundaries (2 of 3)
Computer crime and abuse
Computer crime
Computer abuse
Spam
CAN-SPAM Act of 2003
Employment
Trickle-down technology
Reengineering job loss

How Will M I S Help My Career?
The Organization: Pinnacle Air Force Base
Position Description
Job Requirements
Interview Questions

Essentials of Management Information Systems

Thirteenth Edition

Chapter 6

Foundations of Business Intelligence: Databases and Information Management

Learning Objectives
6.1 What is a database, and how does a relational database organize data?
6.2 What are the principles of a database management system?
6.3 What are the principal tools and technologies for accessing information from databases to improve business performance and decision making?
6.4 Why are information policy, data administration, and data quality assurance essential for managing the firm’s data resources?
6.5 How will M I S help my career?

Copyright © 2019 Pearson Education Ltd.
Ask students to make a list with you of all the databases they use or interact with in their lives. The idea here is to make students aware of the ubiquity and importance of record keeping systems (databases). Databases are at the very heart of the MIS profession.
Ask students if they have had any experience with errors in a database? A mistaken identity, a wrong address, an incorrect balance on a statement. Why are data errors important for a business? For individuals?
2

Video Cases
Case 1: Dubuque Uses Cloud Computing and Sensors to Build a Smarter City
Case 2: Brooks Brothers Closes in on Omnichannel Retail
Case 3: Maruti Suzuki Business Intelligence and Enterprise Databases

Copyright © 2019 Pearson Education Ltd.
What is a Database?
Database:
Collection of related files containing records on people, places, or things
Entity:
Generalized category representing person, place, thing
E.g., SUPPLIER, PART
Attributes:
Specific characteristics of each entity:
SUPPLIER name, address
PART description, unit price, supplier

Copyright © 2019 Pearson Education Ltd.
Ask students if databases are always digital? Can they think of a non-digital database? How about a telephone book. What are the entities? The attributes? Or, a library card catalog.
4

Relational Databases
Organize data into two-dimensional tables (relations) with columns and rows
One table for each entity:
E.g., (CUSTOMER, SUPPLIER, PART, SALES)
Fields (columns) store data representing an attribute
Rows store data for separate records, or tuples
Key field: uniquely identifies each record
Primary key

Copyright © 2019 Pearson Education Ltd.
Figure 6.2, Page 199.
A relational database organizes data in the form of two-dimensional tables. Illustrated here is a table for the entity SUPPLIER showing how it represents the entity and its attributes. Supplier_Number is the key field.
The graphic on this slide and the next illustrates two tables in a relational DBMS. Ask students what the entity on this slide and the next are.
The key field in the Supplier table is the Supplier number. What is the purpose of the key field?

Figure 6.3 The PART Table

Copyright © 2019 Pearson Education Ltd.
Figure 6.3, Page 199.
Data for the entity PART have their own separate table. Part_Number is the primary key and Supplier_Number is the foreign key, enabling users to find related information from the SUPPLIER table about the supplier for each part.
This slide shows the second part of the graphic on the previous slide. Notice that the foreign key in this table is the primary key in the Suppliers table. What is the purpose of the foreign key. Can multiple records have the same foreign key?
7

Establishing Relationships (1 of 2)
Entity-relationship diagram
Used to clarify table relationships in a relational database
Relational database tables may have:
One-to-one relationship
One-to-many relationship
Many-to-many relationship
Requires “join table” or intersection relation that links the two tables to join information

Figure 6.5 Sample Order Report

Copyright © 2019 Pearson Education Ltd.
Figure 6.5, Page 201.
The shaded areas show which data came from the ORDER, SUPPLIER, and LINE_ITEM tables. The database does not maintain data on extended price or order total because they can be derived from other data in the tables.
10

Figure 6.6 The Final Database Design with Sample Records

Copyright © 2019 Pearson Education Ltd.
Figure 6.6, Page 202.
The final design of the database for suppliers, parts, and orders has four tables. The LINE_ITEM table is a join table that eliminates the many-to-many relationship between ORDER and PART.
11

Figure 6.7 Entity-Relationship Diagram for the Database with Four Tables

Copyright © 2019 Pearson Education Ltd.
Figure 6.7, Page 203.
This diagram shows the relationship between the SUPPLIER, PART, LINE_ITEM, and ORDER entities.
This graphic shows an example of an entity relationship diagram. It shows that one ORDER can contain many LINE_ITEMs. (A PART can be ordered many times and appear many times as a line item in a single order.) Each LINE ITEM can contain only one PART. Each PART can have only one SUPPLIER, but many PARTs can be provided by the same SUPPLIER.
12

Database Management Systems (D B M S)
Software for creating, storing, organizing, and accessing data from a database
Separates the logical and physical views of the data
Logical view: how end users view data
Physical view: how data are actually structured and organized
Examples: Microsoft Access, D B 2, Oracle Database, Microsoft S Q L Server, My S Q L

Copyright © 2019 Pearson Education Ltd.
One of the most popular open source databases (purchased by SUN Computer but now owned by Oracle) is MySQL. Go to http://www.mysql.com/customers/ in class for some illustrations of companies that use MySQL. This database management system is not as sophisticated as high end enterprise database systems but still quite sufficient for many businesses.
13

Figure 6.8 Human Resources Database with Multiple Views

Copyright © 2019 Pearson Education Ltd.
Figure 6.8, Page 204.
A single human resources database provides many views of data, depending on the information requirements of the user. Illustrated here are two possible views, one of interest to a benefits specialist and one of interest to a member of the company’s payroll department.
This graphic illustrates what is meant by providing different logical views of data. The orange rectangles represent two different views in an HR database, one for reviewing employee benefits, the other for accessing payroll records. The students can think of the green cylinder as the physical view, which shows how the data are actually organized and stored on the physical media. The physical data do not change, but a DBMS can create many different logical views to suit different needs of users.
14

Operations of a Relational D B M S
Select:
Creates a subset of all records meeting stated criteria
Join:
Combines relational tables to present the server with more information than is available from individual tables
Project:
Creates a subset consisting of columns in a table
Permits user to create new tables containing only desired information

Copyright © 2019 Pearson Education Ltd.
Figure 6.9, Page 205.
The select, join, and project operations enable data from two tables to be combined and only selected attributes to be displayed.
This graphic illustrates the result from combining the select, join, and project operations to create a subset of data. The SELECT operation retrieves just those parts in the PART table whose part number is 137 or 150. The JOIN operation uses the foreign key of the Supplier_Number provided by the PART table to locate supplier data from the Supplier Table for just those records selected in the SELECT operation. Finally, the PROJECT operation limits the columns to be shown to be simply the part number, part name, supplier number, and supplier name (orange rectangle).
16

Capabilities of Database Management Systems
Data definition capabilities:
Specify structure of content of database
Data dictionary:
Automated or manual file storing definitions of data elements and their characteristics
Querying and reporting:
Data manipulation language
Structured query language (S Q L)
Microsoft Access query-building tools
Report generation, e.g., Crystal Reports

Copyright © 2019 Pearson Education Ltd.
One important function of databases is to bring about common definitions of entities and attributes, like what is a fiscal year, how to express date of hire, and defining “business location.” In pre-database environments, and even in global companies, these definitions vary from one location to another.
17

Figure 6.10 Access Data Dictionary Features

Copyright © 2019 Pearson Education Ltd.
Figure 6.10, Page 206.
Microsoft Access has a rudimentary data dictionary capability that displays information about the size, format, and other characteristics of each field in a database. Displayed here is the information maintained in the SUPPLIER table. The small key icon to the left of Supplier_Number indicates that it is a key field.
This graphic shows the data dictionary capability of Microsoft Access. For the field “Supplier Name” selected in the top pane, definitions can be configured in the General tab in the bottom pane. These General characteristics are Fields Size, Format, Input Mask, Caption, Default Value, Validation Rule, Validation Text, Required, Allow Zero Length, Indexed, Unicode Compression, IME mode, IME Sentence Mode, and Smart Tags.
18

Figure 6.11 Example of an S Q L Query
SELECT PART.Part_Number, PART.Part_Name, SUPPLIER.Supplier_Number,
SUPPLIER.Supplier_Name
FROM PART, SUPPLIER
WHERE PART.Suplier_Number = SUPPLIER.Supplier_Number AND
Part_Number = 137 OR Part_Number = 150;

Copyright © 2019 Pearson Education Ltd.
Figure 6.11, Page 206.
Illustrated here are the SQL statements for a query to select suppliers for parts 137 or 150. They produce a list with the same results as Figure 6.9.
This graphic shows an example SQL statement that would be used to retrieve data from a database. In this case, the SQL statement is retrieving records from the PART table illustrated on Slide 20 (Figure 6-8) whose Part Number is either 137 or 150.
Ask students to relate what each phrase of this statement is doing. (For example, the statement says to take the following columns: Part_Number, Part_Name, Supplier Number, Supplier Name, from the two tables Part and Supplier, when the following two conditions are true…)
19

Figure 6.12 An Access Query

Copyright © 2019 Pearson Education Ltd.
Figure 6.12, Page 207.
Illustrated here is how the query in Figure 6.11 would be constructed using Microsoft Access query-building tools. It shows the tables, fields, and selection criteria used for the query.
This graphic illustrates a Microsoft Access query that performs the same operation as the SQL query in the last slide. The query pane at the bottom shows the fields that are requested (Fields), the relevant Tables (Table), the fields that will be displayed in the results (Show), and the criteria limiting the results to Part numbers 137 and 150 (Criteria).
20

Non-Relational Databases
“No S Q L”
Handle large data sets of data that are not easily organized into tables, columns, and rows
Use more flexible data model
Don’t require extensive structuring
Can manage unstructured data, such as social media and graphics
E.g. Amazon’s Simple D B, MetLife’s Mongo D B

Copyright © 2019 Pearson Education Ltd.
Cloud Databases and Distributed Databases
Relational database engines provided by cloud computing services
Pricing based on usage
Appeal to small or medium-sized businesses
Amazon Relational Database Service
Offers My S Q L, Microsoft S Q L Server, Oracle Database engines
Distributed databases
Stored in multiple physical locations
Google’s Spanner cloud service

Copyright © 2019 Pearson Education Ltd.
The Challenge of Big Data
Massive quantities of unstructured and semi-structured data from Internet and more
3V s: Volume, variety, velocity
Petabytes and exabytes
Big datasets offer more patterns and insights than smaller datasets, e.g.
Customer behavior
Weather patterns
Requires new technologies and tools

Copyright © 2019 Pearson Education Ltd.
Business Intelligence Infrastructure
Array of tools for obtaining useful information from internal and external systems and big data
Data warehouses
Data marts
Hadoop
In-memory computing
Analytical platforms

Copyright © 2019 Pearson Education Ltd.
Modern databases can store enormous amounts of information. Consider that PhotoBucket has 80 billion photos on tap! Yet making sense out of all this data is a challenge for managers. What’s needed are tools to organize the data, analyze, and describe what’s happening in the real world based on the data.
24

Data Warehouses
Data warehouse:
Database that stores current and historical data that may be of interest to decision makers
Consolidates and standardizes data from many systems, operational and transactional databases
Data can be accessed but not altered
Data mart:
Subset of data warehouses that is highly focused and isolated for a specific population of users

Copyright © 2019 Pearson Education Ltd.
Data warehouses and data marts are two tools that bring data together and move it offline to storage areas where it can be analyzed without interfering with the transaction processing systems that produce the data. Data analysis, business intelligence applications, would slow down transaction processing.
25

Hadoop
Open-source software framework for big data
Breaks data task into sub-problems and distributes the processing to many inexpensive computer processing nodes
Combines result into smaller data set that is easier to analyze
Key services
Hadoop Distributed File System (H D F S)
MapReduce

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In-Memory Computing
Relies on computer’s main memory (RAM) for data storage
Eliminates bottlenecks in retrieving and reading data
Dramatically shortens query response times
Enabled by high-speed processors, multicore processing
Lowers processing costs

Copyright © 2019 Pearson Education Ltd.
Analytic Platforms
Preconfigured hardware-software systems
Designed for query processing and analytics
Use both relational and non-relational technology to analyze large data sets
Include in-memory systems, No S Q L D B M S
E.g. I B M Pure Data System for Analytics
Integrated database, server, storage components
Data lakes

Copyright © 2019 Pearson Education Ltd.
Figure 6.13, Page 213.
A contemporary business intelligence technology infrastructure features capabilities and tools to manage and analyze large quantities and different types of data from multiple sources. Easy-to-use query and reporting tools for casual business users and more sophisticated analytical toolsets for power users are included.
29

Analytical Tools: Relationships, Patterns, Trends
Once data is gathered, tools are required for consolidating, analyzing, to use insights to improve decision making
Software for database querying and reporting
Multidimensional data analysis (O L A P)
Data mining

Copyright © 2019 Pearson Education Ltd.
Online Analytical Processing (O L A P)
Supports multidimensional data analysis, enabling users to view the same data in different ways using multiple dimensions
Each aspect of information—product, pricing, cost, region, or time period—represents a different dimension
E.g., comparing sales in East in June versus May and July
Enables users to obtain online answers to ad hoc questions such as these in a fairly rapid amount of time

Copyright © 2019 Pearson Education Ltd.
Figure 6.14, Page 214.
This view shows product versus region. If you rotate the cube 90 degrees, the face that will show is product versus actual and projected sales. If you rotate the cube 90 degrees again, you will see region versus actual and projected sales. Other views are possible.
This graphic illustrates a data cube composed of three dimensions: actual/projected sales, product, and region. Obviously, the point is to try and understand differences between actual and projected sales by looking at region and product. This is an ideal problem for pivot tables in Excel because two of the variables are categorical (product and region), one is interval.

Data Mining
Finds hidden patterns and relationships in large databases and infers rules from them to predict future behavior
Types of information obtainable from data mining
Associations: occurrences linked to single event
Sequences: events linked over time
Classifications: patterns describing a group an item belongs to
Clustering: discovering as yet unclassified groupings
Forecasting: uses series of values to forecast future values

Copyright © 2019 Pearson Education Ltd.
With terrorism so much in the news, you might ask students how they imagine federal officials use data mining to identify potential or actual terrorists. For instance, if one was looking for terrorists, what kinds of associations, sequences, classifications, and clusters would you look for.
33

Text Mining
Unstructured data (mostly text files) accounts for 80 percent of an organization’s useful information.
Text mining allows businesses to extract key elements from, discover patterns in, and summarize large unstructured data sets.
Sentiment analysis
Mines online text comments online or in email to measure customer sentiment

Copyright © 2019 Pearson Education Ltd.
Web Mining
Discovery and analysis of useful patterns and information from the web
E.g. to understand customer behavior, evaluate website, quantify success of marketing
Content mining – mines content of websites
Structure mining – mines website structural elements, such as links
Usage mining – mines user interaction data gathered by web servers

Copyright © 2019 Pearson Education Ltd.
Databases and the Web
Firms use the web to make information from their internal databases available to customers and partners.
Middleware and other software make this possible
Web server
Application servers or C G I
Database server
Web interfaces provide familiarity to users and savings over redesigning legacy systems.

Copyright © 2019 Pearson Education Ltd.
Figure 6.15, Page 216.
Users access an organization’s internal database through the web, using their desktop PCs or mobile devices and web browser software.
This graphic illustrates the way data is passed from a database through to a user with a Web browser. Ask students to describe what types of data transformation occur between the various appliances; for example, what happens to data between the database and the database server?
37

Establishing an Information Policy
Information policy
States organization’s rules for organizing, managing, storing, sharing information
Data administration
Responsible for specific policies and procedures through which data can be managed as a resource
Database administration
Database design and management group responsible for defining and organizing the structure and content of the database, and maintaining the database.

Copyright © 2019 Pearson Education Ltd.
Databases are much more than hardware and software. Indeed the most difficult parts involve organizational and people considerations. Sometimes the careers of people, and the fate of entire departments, are involved with the data they collect. When you install a DBMS you potentially are changing who collects what information about whom, where, when, and how.
38

Ensuring Data Quality
Poor data quality: major obstacle to successful customer relationship management
Data quality problems caused by:
Redundant and inconsistent data produced by multiple systems
Data input errors
Data quality audit
Data cleansing

Copyright © 2019 Pearson Education Ltd.
Databases are often collections of dirty data, data that is ambiguous, inaccurate, or incomplete. Before a modern DBMSD system is installed, one large budget item is usually cleaning up the old data in old systems. The size of data quality problems varies from one database to another, but credit record databases usually exhibit a 25 percent rate of quality problems, with 10 percent of the records actually being wrong. Ask students if they are aware of instances where a database was wrong about some person or entity.
39

How Will M I S Help My Career?
The Business: Mega Midwest Power
Position Description
Job Requirements
Interview Questions

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