Chapter 8 - Securing Information Systems

Because the Internet is designed to be an open system and makes internal corporate systems more vulnerable to actions from outsiders; digital data is even more vulnerable to destruction, misuse, error, fraud and hardware or software failures.  Computer hackers can unleash denial of service (DoS) or penetrate corporate networks causing serious system disruption.  Wi-Fi networks can also be easily hacked by intruders.  Computer viruses and worms can also disarm networks and websites.  The spread out nature of cloud computing makes it difficult to track unauthorized activity or to apply controls from afar.  

The business value of security and control is huge.  Lack of good security and control can cause major problems down the line for any business or organization; and can lead to loss of sales and productivity.  Information assets, such as confidential employee records, trade secrets or business plans lose a lot of their value if they are revealed to company outsiders.  New laws such as HIPPA, the Sarbanes-Oxley Act and the Gramm-Leach-Bliley Act have made it mandatory for a company to have very strict electronics management policies.

In order for a company to have solid security and control it is necessary to establish a good set of both general and application controls for their IS.  Risk assessment evaluates information assets, identifies control points and control weaknesses and determines the most cost effective set of controls.  Organizations also have to develop a coherent corporate security policy and plans for continuing business operations in the event of a disaster or a major disruption to daily business operations.  The security policy should include policies for acceptable use and identity management; as well a comprehensive, systematic MIS auditing tool.

The most important tools for technologies regarding safeguarding information resources are firewalls, which prevent unauthorized users from accessing private networks.  Also intrusion detection systems monitor private networks from suspicious network traffic.  Tokens, passwords, biometric identification and smarts cards are all used to authenticate systems users.  Antivirus software is used to check computer systems for infections by viruses and worms and usually eliminate malicious software.  Encryption and digital certificates are also both often used to protect information resources.

Chapter 7 - Telecommunications, the Internet, and Wireless Technology

The principle components of telecommunications networks include computers, network interfaces, a connection medium, network operating system software and either a hub or switch.  The networking infrastructure for a large organization includes the traditional telephony system, mobile cellular communication, wireless local area networks, video-conferencing systems, a corporate website, intranets, extranets and a wide array of local and area wide networks, including the Internet.The rise of client/server computing, the use of packet switching and the adoption of the Transmission Control Protocol/Internet Protocol (TCP/IP) have all shaped contemporary networks.

The main telecommunications transmission media are twisted copper wire, coaxial cooper cable, fiber optic cable and wireless transmission.  Local area networks (LAN) connect PC's and other digital devices together within a 500 meter radius and are used today for many corporate computing tasks.  Network components may be connected together using a star, bus or ring topology.  Wide area networks (WANs) span broad geographical distances ranging from several miles to continents.  Digital subscriber lines (DSL) technologies, cable Internet connections and T1 lines are often used for high-capacity Internet connections.

The Internet is a world wide network of networks that used the client/server model of computing and the TCP-IP reference model.  Every computer that uses the Internet has a unique number associated with it (IP address).  Main Internet services include email, newgroups, chatting, instant messaging, Telnet, FTP and the Web.  Web pages are based on Hypertext Markup Language (HTML) and can display text, graphics, video an audio.  Companies have also started to realize economies by using VoIP technology for voice transmission and by using virtual private networks (VPNs) as low cost alternatives to WANs.

The principal technologies and standards for wireless networking, communication and Internet access are high speed, high bandwidth and digital packet switched transmission.  Broadband 3G networks are capable of transmitting data at speeds ranging from 144 Kbps to more than 2 Mbps.  4G networks capable of transmission speeds that could reach 1 Gbps are also starting to be released.  Code Division Multiple Access (CDMA) and Global Systems for Mobile Communications (GSM) are both common cellular standards.

Radio frequency identification (RFID) and wireless sensor networks are valuable for business because they provide powerful technology for tracking movement of goods by using tiny tags with embedded data about an item and its location.  RFID readers read the radio signals transmitted bt these tags and pass the data over a network to a computer for processing.  Wireless sensor network (WSNs) are networks of interconnected wireless sensing and transmitting devices that are embedded into the physical environment to provide measurements of many points over various large spaces.

Chapter 6 - Foundations of Business Intelligence: Databases and Information Management

Chapter 6 identified some of the problems associated with managing data resources in a traditional file environment and how are they solved by a database management system.  The typical file management techniques make it hard for firms to keep track of the pieces of data they use in a systematic way and to organize the data so that it can be easily accessed.  In order to develop their own files independently different functional areas and groups were created.  As time progressed the traditional file management environment created problems like data redundancy and inconsistency, program data dependence, poor security, inflexibility and lack of data sharing and availability.  Database management system (DBMS) helps solve these problems with software that permits centralization of data and data management so that businesses have a single consistent source for all their needs.

Some of the major capabilities of DBMS include data definition, data dictionary and a data manipulation language.  The data definition capability specifies the structure and content of the database.  The data dictionary is an automated or manual file that stores information about the data in the database, including names, definitions, formats and descriptions of data elements.  The manipulation language such as SQL, is a specialized language for accessing and manipulating data in the database.  The relational database is the primary method for organizing and maintaining data today in informational systems because it is so flexible and easily accessible.  

There are some important database design principles.  Designs should include both a logical and physical design.  The logical design should model the database from a business perspective.  The model should reflect an organizations main business processes and decision making requirements.  A well designed relational database will not include many-to-many relationships, and all attributes for a specific entity will only apply to that entity.  It should try to enforce the referential integrity rules to ensure that relationships between coupled tables will remain consistent.

Some principle tools and technologies for accessing information from databases to improve business performance and decision making are data warehouses. They consolidate current and historical data from many different operational systems in a central database designed for reporting and analysis.  Data warehouses support multidimensional data analysis, also known as online analytical processing (OLAP).   OLAP represents relationships among data as a multidimensional structure, which can be visualized as cubes of data and cubes of data within data, which enables more sophisticated data analysis.

When developing a database environment it is crucial to require policies for managing organizational data as well as a good data model and database technology.  A formal information policy should govern maintenance, distribution and use of information in the organization.  In larger companies a formal data administration function is responsible for the information policy.  Inaccurate, incomplete and inconsistent data creates a serious operational and financial problem.  Companies must take whatever steps necessary to ensure they have a high level of data quality.

Chapter 5 - IT Infrastructure and Emerging Technologies

In order to understand Chapter 5 I must first define IT infrastructure and it's components.  IT infrastructure is the shared technology resources that provide the platform for the firms specific information system applications.  IT infrastructure includes hardware, software and services that are shared across the entire organization.  Major IT infrastructure components are computer hardware platforms, operating system platforms, enterprise software platforms, networking and telecommunications platforms, database management software, Internet platforms and consulting services and systems integrators.

The chapter also details the stages and technology drivers of the IT infrastructure evolution.  The five stages of IT infrastructure evolution are the mainframe era, the personal computing era, the client/server era, the enterprise computing era and the cloud and mobile computing era.  Moore's Law deals with the growth in processing power and decrease in the  cost of computer technology.  As we learned in Chapter 4 the power of micro-processors doubles every 18 months and the price of computing falls in half.  The Law of Mass Digital storage deals with the exponential decline in the cost of storing data, stating that the number of kilobytes of data can be stored on magnetic media for $1 doubles every 15 months.  Metcalfe's Law helps show that a networks value to participants grows as the network takes on more members.

Some of the current trends in the computer hardware platform are computing on a mobile digital platform, grid computing, virtualization and cloud computing.  Grid computing involves connecting geographically remote computers into a single network to create computational grid that combines the computing power of all computers on the network. Virtualization organizes computing resources so that their use is not restricted by physical configuration or geographic location.  In cloud computing organizations and individual users obtain  computing power and software as services over a network, including the Internet, rather than purchasing and installing the hardware and software on their own computer.

Some of the current trends in software platforms include open source software that is produced and maintained by global community of programmers and can usually be downloaded for free.  Linux is a powerful open source OS that can run on multiple hardware platforms and is used widely to run Web servers.  Java is an OS and hardware-independent programming language that is the leading interactive programming environment for the Web.  Now often times corporations are purchasing their software from outside sources including software packages, by outsourcing customer application development software services (SaaS).  Mash ups combine two different software services to create new software applications and services.

Managing IT infrastructure in the modern world does come with some inherent challenges.  Those challenges include dealing with the platform and infrastructure change, infrastructure management and governance and making wise infrastructure investments.  The solution guidelines include using a competitive forces model to determine how much to spend on the IT infrastructure and where to take strategic infrastructure investments, and establishing the total cost of ownership (TCO) of information technology assets.  The TCO of owning technology resources usually includes not only the cost of the original hardware and software, but also the costs for upgrades, maintenance, technical support and training.

Chapter 4 - Ethical and Social Issues in Information Systems

Chapter 4 started by identifying five moral dimensions of the Information Age.

The 5 Moral Dimensions of the Information Age:

1.  Information rights and obligations - what information rights do individuals and organizations possess with respect to themselves?  What can they protect?

2.  Property rights and obligations - how will traditional intellectual property rights be protected in a digital society in which tracing and accounting for ownership are difficult and ignoring such property rights is so easy?

3.  Accountability and control - Who can and will be held accountable and liable for the harm done to individual and collective information and property rights?

4.  System quality - What standards of data and system quality should we demand to protect individual rights and the safety of society?

5.  Quality of life - What values should be preserved in an information and knowledge based society?

There are some key technology trends that raise ethical issues.  Computing power doubles every 18 months, this has made it possible for companies to use IS for their core production processes.  Now most corporations are dependent on systems; which makes us even more vulnerable to system errors and poor data quality.  Data storage costs are quickly declining so organizations can easily maintain detailed databases on individuals.  That opens more opportunities for profiling, which is when different computers are used to compile different pieces of information on individuals and create electronic dossiers to store the information.  Within the trend of profiling non-obvious relationship awareness (NORA) technology has given the public even more ways to profile individuals.  When data flows over the Internet it can be viewed and monitored at any point.  Not all websites have strong enough privacy protection policies and cookies also make it easy for private information to become public information.  Traditional copyright laws are outdated and insufficient for protecting against software piracy.

Chapter 4 teaches us that there must be ethical choices within IS.  Ethical choices are decisions made by individuals who are responsible for the consequences of their actions.  Responsibility is a main element of ethical action - it means that you accept the potential costs, duties and obligations for the decisions you make.  Accountability is a feature of systems and social institutions.  It means that mechanisms are in place to determine who took responsible action and who is responsible.  Liability extends the concept of responsibility further to the area of laws.    These three fairly basic concepts help form the basis of ethical analysis of IS and those who manage them.

There are six ethical principles for judging conduct and they include the Golden Rule, Immanuel Kant's Categorical Imperative, Descartes' rules of change, the Utilitarian Principle, the Risk Aversion Principle and the ethical "no free lunch rule".  In addition to ethical analysis these principles should be used to guide behavior when managing IS.

Information systems have had an impact on our everyday life.  Advancing technology and computer systems have made some invaluable, positive changes to our lives but they've also made some negative changes.  Computer errors can cause harm to a person's professional and personal life and poor data quality can have a negative impact on the professional environment.  Positions can be eliminated when employees are replaced by computers or tasks become unnecessary due to advancements made to technology.  Widespread usage of computers also increases the likelihood of computer crimes and computer abuse.

Chapter 3 - Information Systems, Organizations and Strategy

1.  The features of organizations that managers need to know in order to build and use information systems successfully and the impact it has on organizations.

As every modern organization differs in goals, groups served, social roles, leadership styles, incentives, types of tasks performed and type of structure.  Knowing those differences helps explain the difference in way in which organizations use information systems.  As an organization and an information system become intertwined they inherently influence each other.  Ultimately the information system must serve the organization.

2.  Porter's Competitive Forces Model

In Porter's competitive forces model the strategic position of the firm and it's strategies are determined by competition with it traditional direct competitors, but they are also greatly affected by new market entrants, substitute products and services, suppliers and customers and customers.  

3.  Value Chain and Web Models

The value chain model highlights specific activities in the business where competitive strategies and information systems will have the greatest impact.  The model views the firm as a series of primary and support activities that add value to a firm's products or services.  A company's value chain can be linked to the value chain of its suppliers, distributors, and customers.  A value chain consists of information systems that enhance competitiveness by promoting the use of standards and industry wide consortia.

4.  Information systems help businesses use synergies, core competencies and network based strategies to achieve competitive advantage.

As firms consist of multiple business units, information systems help achieve additional efficiencies or enhance services by tying together the operations of disparate business units.  Because IS promote the sharing of knowledge across business units they help corporations leverage their core competencies.  Virtual based company strategy uses networks to link to other firms so that a company can use the capabilities of other companies to build market and distribute products and services.

5.  Challenges posed by strategic information systems.

The implementation of strategic information systems typically requires extensive organizational change and a transition from one societechnical level to another.  The strategies are called strategic transitions and are commonly difficult and hard to execute.  Not all strategic systems are profitable and are often not worth the difficulty associated with implementing them. 

 

Chapter 2 - Global E-business and Collaboration

1.  Business processes and how they relate to information systems.

A business process is a logically related set of activities that defines how specific business tasks are performed, and it represents a unique way in which an organization coordinates work, information and knowledge.  It is crucial that managers pay attention to business processes because it determines how business should be carried out.  Every major business function has a process that belongs to it and many of these processes are cross functional.

2.  Systems serve the different management groups in a business.

Transaction processing systems are referred to as TPS and they help operational management process payroll and orders as well as track the daily routines necessary to conduct business.  Management information systems (MIS) produce reports to help serve middle management functions by condensing TPS.  Decision support systems (DSS) support the unique and ever-changing decision making needs of businesses.  Each of these systems provides business intelligence that helps managers and enterprise employees make informed decisions.

3. Systems that link the enterprise improve organizational performance.

Customer relationship management (CRM) systems coordinate the business processes surrounding a firm's customers.  The knowledge management systems enable firms to enhance the creation, sharing and distribution of knowledge.

4.  Systems for collaboration and teamwork are important.

Collaboration and teamwork has become an integral part of the business world because of globalization, the decentralization of decision making and growth in jobs where job interaction is the primary value adding activity.  Collaboration tools include email, instant messaging, wikis, videoconferencing systems, virtual worlds, social networking, cell phones and internet collaboration platforms like Google Apps/Sites, Microsoft SharePoint and Lotus Notes.

5.  The role information systems play in business.

Typically the information systems department is business unit that is responsible for information technology services.  It maintains the hardware, software, data storage and networks that comprise a company's IT infrastructure.  The information systems department includes specialists, such as programmers, system's analysts, project leaders and information systems managers.