management information systems: solving business problems with information technology part one:...

Management Information Systems:

Solving Business Problems with Information Technology

Part One:Business OperationsChapter Four:Security, Privacy, andAnonymity

Prof. Gerald V. PostProf. David L. Anderson

The Growth of Electronic CommerceThe Growth of Electronic Commerce

Business-to-Business– Includes up and down stream transactions that can

enhance channel coordination and customer relationships

Business-to-Consumer– Encompasses all interaction between the customer

and the organization Open Marketspace

– Connects business, partner, and consumer

Web-Based Commerce ModelWeb-Based Commerce Model

Marketspace

Manufacturer/Supplier

Customers

Intermediary

Business-to-Business Business-to-Consumer

Direct

Operating Effectively in the Operating Effectively in the Business-to-Consumer BoundaryBusiness-to-Consumer Boundary

Leverage Firm’s Logistical System Price and Manage Online Transactions Optimize Communication to Key Consumer

Markets Achieve Excellence through Service

Develop Business PartnershipsDevelop Business Partnerships

Establish Business-to-Business Relationships to Sell Competitively to Customers

Strengthen the Value Chain Provide Value through Communication Optimize Business-to-Business Service

Virtual InterconnectivityVirtual Interconnectivity

Sell in a Virtual World Stay Real or Become Virtual Communicate with a Community Provide Value-Add Services in the

Marketspace

Opportunities and Threats of Opportunities and Threats of End-Run StrategiesEnd-Run Strategies

Odd Person Out Establish Place in Value Chain Compare Information in a Virtual World Optimize the Service Offering Across

Partner Organizations

Managerial Issues for SecurityManagerial Issues for Security

Technical Societal Economic Legal Behavioral Organizational/Managerial


Technical– How will Security be Implemented?– What protocols will be the standards of future

electronic commerce?– What are the future technologies used to “wire”

people and households?


Societal– How will the privacy of individuals be

protected?– How will consumer data be used?– Will consumer data be misused?– How do user perceptions of issues reflect

reality?


Economic– How will electronic and physical markets

differ?– Will economic theories succeed as

instantaneous access to information emerges?– What will be the price of information?


Legal– Should governments continue to subsidize the

internet?– How will real world laws apply to the legality

of virtual sites?– Who is liable for information accuracy?


Behavioral– How satisfied will users be with virtual

experiences compared to those in the real world?

– How will a sense of community and social needs be represented through E-Commerce?

– What are the characteristics of early adopters of E-Commerce?


Organizational/Managerial– What are the differences between managing an

E-commerce business and a more traditional one?

– How will the organization of the firm change as E-commerce becomes more prevalent?

– What products lend themselves to success with E-Commerce?


Technical Societal Economic Legal Behavioral Organizational/Managerial

Strategic SecurityStrategic SecurityLeverage ParadigmLeverage Paradigm

CompetitivePosition

CompetitivePosition

Nature of Conflict;Terms of

Competition

StrategicLeverage

ObjectivesStrategies

Tactics

Changethe

Game

Changethe

Game

Systems DevelopmentSystems DevelopmentLifecycleLifecycle

Planning

Support

Implementation Design

Analysis

Obsolete SolutionProblem to be Solved

ProblemUnderstanding

andSolution

RequirementsAcceptable

SolutionStatement

ImplementedSolution

ImplementationError (bug)

New, Related Problem or Requirement

New implementation Alternative or Requirement

Systems Planning ElementsSystems Planning Elements People

– Users, Management, Information Specialists

Data– How it is captured, used, and stored

Activities– Automated and Manual– Business and Information Applications

Networks– Where data is stored and processed– How data is exchanged between different locations

Technology– hardware and software used

Electronic CommerceElectronic CommerceBuilding BlockBuilding Block

Systems Builders

Systems Designers

Systems Users

Systems Owners

Differentiation versus Cost LeadershipDifferentiation versus Cost LeadershipT1

SustainablePremium

Quality

Cost

Minimum or Market-RequiredQuality

DifferentiatedPlayer

CostLeader

TechnologyCurve

Is Cost Leadership Sustainable?Is Cost Leadership Sustainable?T1

SustainablePremium

Quality

Cost

Minimum or Market-RequiredQuality

DifferentiatedPlayer

CostLeader

OldTechnologyCurve

T2

NewTechnologyCurve

Industry/Company Industry/Company RelationshipsRelationships

IndustryStructure &Competitive

Position

Long-termObjectives,StrategicDirection

DetailedStrategies

and Tactics

Freedomof

Maneuver

Break-Even PointBreak-Even PointTotal Revenue

Profit

Total Costs

Fixed Costs

SalesBreak-Even Volume

Revenueand

Costs

Profit

FixedCosts

DecisionDecision Trees Trees

DecisionPoint

Probability

Efforts to CategorizeEfforts to Categorizethe Unknownthe Unknown

Complexity

Instability

Uncertainty

VariablesVariables

Cost

Risk

Time

Barriers to Barriers to Information Security SourcesInformation Security Sources Economies of Scale

Economies of Scope Product Differentiation Capital Requirements Cost Disadvantages

– Independent of Size Distribution Channel Access Government Policy

Four Generic ApproachesFour Generic ApproachesWin

Win

Lose

Lose

Win/Win Win/Lose orCooperative Equilibrium

Lose/LoseWin/Lose orCooperative Equilibrium

Lose/LoseLose/Lose Total Industry Profits are Very Low, Zero,

or Negative Industry Revenues are Declining, or, at

best, steady Product Technology is at or past its peak

Structure Defines the Industry War

Win/WinWin/Win

Total Industry Revenues and Profits are Growing Rapidly

Numerous Players of All Sizes Products and Services are not Standardized

Win/LoseWin/Lose Total Industry Revenues and/or Profits are

Constant or are Growing very Slowly Significant Economies of Scale in Production,

Distribution, and/or Promotion Number of Firms Participating in the Industry is

Limited and Stable Individual Participants have, or can obtain,

Information Regarding the Relative Positions of the Players

Structure Defines the Terms Structure Defines the Terms of Competitionof Competition

Wasting Resources – generic advertising rather than focusing on specific

market segments Precipitating Unwanted Warfare

– Causing a full-scale price war when only brand repositioning was necessary

Failing to Anticipate and Adapt to Changes– Following historical patterns– Underspending on Advertising

Structure Defines ManeuverStructure Defines Maneuver

Standard or Dominant Product Emerges Distribution Channels Limit Firm’s Ability

to Determine which Channels to Select Target and Market Niches Become More

Difficult to Defend Substitutes Limit Price Increases which

Requires Increase in Advertising Expenditure

Two Levels of PlanningTwo Levels of Planning Systems Planning

– Gives Managers, Users, and Information Systems Personnel Projects

– Establishes what should be done– Sets a budget for the total cost of these projects

Systems Project Planning– Setting a plan for the development of each

specific systems project

Systems Professional SkillsSystems Professional Skills Systems Planning

– Form project team after proposed systems project is cleared for development

Systems Analysis– Business Systems Analysts knowledgeable in business

General Systems Design– Business Systems Analysts

Systems Evaluation and Selection– Business Systems Analysts

Detailed Systems Design– Wide Range of Systems and Technical Designers

Systems Implementation– Systems analysts, programmers, and special technicians

Effective Leadership StyleEffective Leadership Style Autocratic Style

– Crisis-Style Management– Used to Correct Major Problem, such as Schedule

Slippage Democratic Style

– Team-oriented Leadership– Gives each team member the freedom to achieve goals

which he/she helped set Laissez-Faire Style

– Highly-motivated, Highly-Skilled Team Members– People who work best alone

Project Management SkillsProject Management Skills Planning

– States what should be done– Estimates how long it will take– Estimates what it will cost

Leading– Adapts to dynamics of enterprise and deals with setbacks– Guides and induces people to perform at maximum abilities

Controlling– Monitors Progress Reports and Documented Deliverables– Compares Plans with Actuals

Organizing– Staffs a Systems Project Team– Brings together users, managers, and team members

CASE/FrameworksCASE/Frameworks

Computer-Aided Systems and Software Engineering

Increase Productivity of Systems Professionals

Improve the Quality of Systems Produced

Improve Software Maintenance Issue

CASE/FrameworksCASE/Frameworks

Includes:– workstations– central repository– numerous modeling tools– project management– Systems Development Life Cycle Support– Prototyping Applications– Software Design Features

Central Repository for ModelsCentral Repository for Models Models Derived from Modeling Tools Project Management Elements Documented Deliverables Screen Prototypes and Report Designs Software Code from Automatic Code Generator Module and Object Libraries of Reusable Code Reverse Engineering, Reengineering, and

Restructuring Features

Software MaintenanceSoftware Maintenance Reverse Engineering

– Extract original design from spaghetti-like, undocumented code to make maintenance change request

– Abstract meaningful design specifications that can be used by maintenance programmers to perform maintenance tasks

Reengineering– Examination and changing of a system to reconstitute it in

form and functionality– Reimplementation

Restructuring– Restructures code into standard control constructs

sequence, selection, repetition

Data DesignData Design Define all the entities to be dealt with and the relationships

between them Transform the conceptual design into logical design wherein all

the views are combined and all the resulting data elements are defined and the data structure is syntactically and semantically determined

Normalize this logical design for mathematically minimized redundancy and maximized integrity

Transform this logical design to a physical design where the underlying RDBMS, hardware, and use patterns are taken into account

Develop the SQL DDL code specific to each RDBMS vendor’s product is generated

Business Rules For Data Basic selection of what data elements are of

interest, what are their characteristics (data type and acceptable range - also called syntactic structure)

How they are related to, or dependent on, each other in a business sense (key, foreign key and referential constraint rule - also called the semantic structure)

Data Integrity Rules

Advantages of Data AnalysisAdvantages of Data Analysis “slice and dice” dynamic query support standard high-level access language (SQL) minimum data redundancy self-protecting data integrity

– no insert, delete and update anomalies

Relational ModelRelational Model

The Relational Model for data design is the foundation of the relational database and the industry that produces the “engines” that run them.

It puts data design (and data modeling) on a formal, mathematical footing.

Relationship TypesRelationship Typesa). One-to-one (1:1): means that an occurrence

if one OT uniquely determines an occurrence of other OT - and vice-versa

b). One-to-many (1:n): means that an occurrence of one OT determines an occurrence of the other OT - but not vice-versa

c). Many-to-many (n:m):means that an occurrence of one OT can be related to many occurrences of other OT - and vice-versa

Data RationalizationData Rationalization

Identification of data synonyms and homonyms across multiple and disparate data sources and the creation of a map that points back to their original sources.

Data Access GatewayData Access Gateway sits between end users (usually in PC

networks) and a legacy database accepts data read requests (expressed as SQL

statements) converts the requests to legacy access method

instructions provides the resulting data to the users data flow is one-way read-only.

Structured Data Analysis the functions or activities which are to be

handled by the system the external entities which interact with the

system the logical data stores, and the data flows among all the the above Data flow diagrams (DFD) are used to

diagrammatically describe the elements.

Entity Relationship Diagrams Entity Relationship Diagrams (ERDs)(ERDs)

A method of documenting and visualizing a conceptual data model.

NormalizationNormalization

The process based on the business rules for data– a set of data elements (attributes) are arranged

in a mathematically minimum set of tables (relations), within which all the attributes are dependent on a primary key attribute (the key).

Normalization ModelNormalization Model The SA/Normalization method is based on the use of

decomposition rules, which enable one to decompose tables/relations. – Database design starts with flat tables/relations, each of which is

created out of a data stores in the DFDs and then decomposed into the normal form relations. No conceptual schema of the enterprise is created to express the semantics of its information structure.

The SA/IA method is based on the use of grouping rules which map simple relationships in the binary-relationship data model onto normal form relationships. – The relational model and the normalization method have been criticized

for being too detailed to use at the initial design stage, and for lacking a semantic structure for making unambiguous choices in modeling the enterprise.

– The IA method incorporates a semantic model of the enterprise which captures its essential semantic features from which the normal form relations are derived.

Conversion into Normalized Record Types

For every data flow which either enters or emanates from a data store (in the leaf level DFDs), the integral data elements are identified

For every data store, a list of the data elements which are entering and emanating are drawn up

The dependencies among all the data elements are analyzed, and the normalization rules are applied in steps so that at every step a given relation is split into more “simple” relations

– Every relation has a key which consists of one or more data elements

– Every non-key data element functionally depends on that entire key and not on part of it

– No non-key data element depends on any other non-key data element in the relation (there are no transitive dependencies)

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Conversion into Normalized Record Types

De-NormalizationDe-Normalization

The process of selectively – combining two or more normalized tables into

one, or – decomposing one normalized table into two or

more

Part Description for ModelPart Description for Modelfor General Motorsfor General Motors

“Part #123 that is supplied by GM was assembled on bus 456 on May 28, 1996” is decomposed into the following elementary sentences:

a). A part... is supplied by a manufacturer...

b). A part... was assembled on a bus...

c). The assembly [part*bus] was performed on a date...

Manufacturer (name)

Supplier of

Supplied of

Part (p#)

Part Distribution Modelfor General Motors

Relationship TypesRelationship Typesa). One-to-one (1:1): means that an occurrence if

one OT uniquely determines an occurrence of other OT - and vice-versa

b). One-to-many (1:n): means that an occurrence of one OT determines an occurrence of the other OT - but not vice-versa

c). Many-to-many (n:m):means that an occurrence of one OT can be related to many occurrences of other OT - and vice-versa

Bus (License #) Part

(p#)Supplier

Manu-facturer (name)

Date of Assembly

Date (Calc. date)

GM Parts Assembly Distribution Model

Data WarehouseData Warehouse

An intermediate, read-only store (usually based in a purchased RDBMS product) and the programs that manage it.

Contains recent and summarized data extracted from across some or all of the legacy data systems

Presents a subject-based view

Functional DependencyFunctional Dependency

Mathematical term for the key relationship (using rational terminology) between data elements. A data element (attribute) that is functionally dependent on another data element (the key) will always exist in a relation (table) such that a unique value for the key will always “determine” or “locate” or “define a unique value of” the dependent.

MetadataMetadata Data about data that is generally extracted from an existing system or

created for a new system and stored in a design repository for developers to use in maintaining or extending the system during its lifecycle

Metadata refers to the table, attribute, and key definitions contained in the catalog of a relational database. It can also mean the business rules for data designed for a new design, or the business rules for data thought to be enforced in a legacy system (semantic data structure, sometimes called meta-data, or meta2 data).

The actual syntactic and semantic data structure (not just what the documentation might say), including a complete synonym and homonym map, plus the business rules for data that are actually being enforced in the legacy system.

Graduate School of Business Administration

Loyola University

management information systems: solving business problems with information technology part one:...

Documents

consumer slide

marketspace slide

organizationalmanagerial

business service slide

requirement slide

game slide

anderson slide

consumer direct slide