Summary Business Information Systems

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Summary - Business Information Systems

  • 1.1 What is an IS

  • What are the key learning from McKinseys piece on modernizing IT for a digital era?
    Incrementalism vs end-to-end modernization
    - IT becomes a critical part of the company's DNA
    - under pressure of digital disruption

    executives face three critical steps for end-to-end modernization
    - define target state of IT architecture
    - decide which systems, people, and processes need to change
    - determine sequence and scope of these changes   

    Companies can't afford to work in the same old ways

    Technologies and processes are only becoming more sophisticated

    IT must join business to think systematically about how to phase in new digital technologies
  • What is McKinsey's conclusion on IT?
    We need business leaders with great IT capabilities in our age of digital, automation and AI

    Organizations should move from siloed business units and departments to all-encompasing digital organisations

    Everyone will need to be involved with designing and implementing digital technologies for which information systems are the basis
  • What is the difference between data and information?
    Data: raw observed facts of events like business transactions, symbolic epresentation of facts

    Information: processed data useful for the decision making process; data are the building blocks of information. Provides context

    Knowledge: ability to perform certain tasks by combining data with own information and experience
  • What is metadata information? And what is its importance?
    Information about data/information

    Makes information more comprehensible to humans and computers
    Increases value of information
    Data becomes and stays information
    People can still use information, also after owner of the information leaves the company
    Improves sharing of information between people
  • What is a system?
    A system is a set of elements. These elements are related to each other and, possibly, to elements from the universe of discourse and are joined for a specific purpose
  • What is a business information system
    A BIS is a set of related components to collect, search, process, store and distribute information in order to support the coordination and control of the decision making process within an organization.
  • What is a two-dimensional typology?
    Like a pyramid with layers:
    -Strategic: long term decisions, on group level, often based on unstructured information, what if analysis
    -Tactical: mid long term decisions, identify execution plans for group decisions, project anagement
    -Operations: daily operations and decisions, based on structured information, immediate results

    Functional domains:
    - sales and marketing
    - production and logistics
    - finance & accountancy
    - human resources
  • What are operational information systems?
    - operational processes are well structured, unambiguous and routinely
    - opterational decisions regard the short term, occur relatively often and contain little uncertainties
    - the required information on this level is: easy to determin,e independent of the individual, well structured, and occurs particularly within the organization

    - Online transaction processing system (OLTP)
    - Enterprise resource planning systems (ERP)
  • What is an ERP?
    Enterprise resource planning systems

    Single information system for organisation-wide coordination and integration of many business processes
  • What information systems are used on the tactical level
    Users: middle management and executives
    Decisions: concering mid long term, less often, less routinely, more uncertainties or risks

    Required information
    - from operational level + data warehouses
    - less easy to determine, dependent of individual and moment, less structured

    Management Information Systems (MIS)
    Decision Support Systems (DSS)
  • What are the components of an MIS?
    Management information systems
    - input: transaction records, data warehouses, simple models
    - processing: routine reporting, simple models, analysis
    - ouput: symmary, exception reports
    - users: middle managers
  • What are the components of a DSS
    Decision Support System
    - management level: data analysis for decision making
    - input: data, low volume and data warehouses, analytical models, data analysis tools
    - processing: interactive, simulation
    - output: special reports, decision analysis, answers to specific queries
    - users: middle and executive managers
  • What are strategic information systems?
    Decisions: concering long term, rather incidental and irregular character, much uncertainty and or risk

    Required information: very hard to determine, dependent of individual, highly less structured and occurs particularly in company's environment

    Executive Support Systems (ESS)
    Data warehousing, OLAP, data mining, web mining
  • What are the components of an ESS
    Executive Support Systems
    - communication and calculations on strategic level
    - input: external and internal aggregated data
    - processing: graphical, simulation, interactive
    - output: projections, answer to queries
    - users: top-level managers, board of directors
  • Which additional types of IS are there?
    Office Automation Systems (OAS)
    - office automation
    - text processing, voicemail, email, video conferencing

    Knowledge Work Systems (KWS)
    - specialized systems for scientists, engineers, analysts, and other knowledge workers to obtain new knowledge
    - compuer-aided design, cirtual reality systems, stability calculations
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What is the bounce rate?
Ratio of visits where visitor left instantly
Not the same as page exit rate: number of exits from a page divided by total page views of that page 

Dus bounce is instantaan weg bij initiele visit
Exit is elk weggaan op specifieke pagina
What are new and return visitors?
number of unique visitors with activity including a first-ever visit to the site during a reporting period

the number of unique visitors during a reporting period who had also visited the site prior to that period

the number of visitors that come several times in 1 period

Destinction useful for determining loyalty and affinity of visitors, analyzing difference in usage between new and returning

New + return = unique
New + repeat != unique
What are some web analytics data sources?
Server logs: http requests
Javascript based page tagging
External data: IP, email, etc
What are web analytics?
The measurement, collection, analysis and reporting of internet data for purposes of understanding and optimizing web usage

off-site = regardless of whether your own or maintain the site
on-site = while owning the site

* web usage mining: patterns
* web content mining
* web structure mining: hyperlink strucutre of the web
Is privacy dead?
- probably not, but there is definitely a shift towards transparancy
- big difference in privacy protection legislation EU vs US
- people need to be aware of privacy vs utility
- internet companies need to improve transparency on tracking, data collection. Easier policies, user should be informed
- users should take responsibility
What is GDPR?
General Data Protection Regulation

- personal data shall be processed for specified and legitimate purposes, and shall not be used in a way incompatible with those purposes

Right to be informed
Right of access
Right of rectification
Right to erasure
Right to restriction of processing
Right to data portability
Right to object

Organizations can be fined up to 4% of annual global turnover for breaching GDPR, or 20 million
What is HTTPS
HyperText Transfer Protocol Secure

Creates a secure channel over an insecure network. HTTPS URLs begin with "https://" and use port 443 by default, HTTP begins with "http://" and uses port 80 by default

HTTP is vulnerable to
- man in the middle attack
- eavesdropping
What privacy protecting measures are there?
Cookie managers & blockers
Antivirus software
Anonymous surfing
Privacy protecting search engines
Password managers
What does malware do
Malware = malicious software
Spyware = malicious piece of software to collect information
What is the threat of internet service providers
All data transmitted to and from users must pass through an ISP
- observation potential
- unclear which data is collected
- in US no warrant is required to request information from an ISP 

Deep packet inspection
- technology to examine the data part of IP packets
- typically used for internet management
- could be used for tracking and profiling