Managing Information

Systems

Summer Term 2015

28.3.2015

Drte Brunche, Dipl. Kfm., MBA

Content
21.03.2015

28.03.2015

2.05.2015

16.05.2015

Introduction to Business
Information Systems

Information Infrastructure

Securing Information
Systems, Manage IT

E-Commerce: Digital
Markets, Digital Goods

Enterprise Resource
Planning, Customer
Relationship & Supply
Chain Management

Decision Support Systems

and Knowledge
Management Systems

Information Systems,
Organizations and Strategy
Room: V5-205

Business IT Trends
This part will be added at
27.3.2015
Room: V6-113

Room: V6-113
Room: V6-113

30.05.2015

13.06.2014

27.06.2014

Building and Managing

Systems

Portfolio Management

Students Presentations

Project Management

Students Presentations

Room: V6 - 113

Room: V5 - 205

Latest date for submission

of hard copy of
MIS report!
Room: V5 - 205

Learning Objectives IT Infrastructure

Define IT infrastructure and describe its components.
Identify and describe the stages and technology
drivers of IT infrastructure evolution.
Assess contemporary computer hardware platform
trends.
Assess contemporary software platform trends.
Evaluate the challenges of managing IT infrastructure
and management solutions.

Components of an IT infrastructure
A set of physical devices and software applications
that are required to operate the entire enterprise.
It generates IT Services in the area of:
Computing
Telecommunication
Data Management
Application Software
Physical Facility Management
IT Management
IT Standard
IT Education
IT research & development

Stages In It Infrastructure Evolution

Illustrated here are

the typical
computing
configurations
characterizing each
of the five eras of IT
infrastructure
evolution.

Stages In IT Infrastructure
Evolution (cont.)
Illustrated here are
the typical
computing
configurations
characterizing each
of the five eras of IT
infrastructure
evolution.

N-tier Client-Server-Computing

Technology drivers of infrastructure evolution

Moores law and microprocessing power
Computing power doubles every 18 months
Law of Mass Digital Storage
The amount of data being stored each year doubles
Metcalfes Law and network economics
Value or power of a network grows exponentially as a
function of the number of network members
As network members increase, more people want to
use it (demand for network access increases)

Declining communication costs and the Internet

8

Moores Law And Microprocessor

Performance
Packing more than 2
billion transistors
into a tiny microprocessor has
exponentially
increased processing
power.
Processing power
has increased to
more than 500,000
MIPS (millions of
instructions per
second).
9

Falling Cost Of Chips

Packing more
transistors into less
space has driven
down transistor cost
dramatically as well
as the cost of the
products in which
they are used.

10

The Cost Of Storing Data Declines

Kilobytes of data
that can bestored
with one $

Exponentially

Since the first magnetic

storage device was used
in 1955, the cost of
storing a kilobyte of data
has fallen exponentially,
doubling the amount of
digital storage for each
dollar expended every 15
months on average.
11

Exponential Declines In Internet

Communications Costs

12

Infrastructure Components

IT Infrastructure has seven main components

1.
2.
3.
4.
5.
6.
7.

Computer hardware platforms

Operating system platforms
Enterprise software applications
Data management and storage
Networking/telecommunications platforms
Internet platforms
Consulting system integration services
13

The It Infrastructure Ecosystem

14

Infrastructure Components

7. Consulting and system integration services

Even large firms do not have resources for full
range of support for new, complex infrastructure
Software integration: ensuring new infrastructure
works with legacy systems
Legacy systems: older TPS created for mainframes
that would be too costly to replace or redesign
Accenture, IBM Global Services, EDS, Infosys,
Wipro, Tarta, CapGemini, T-Systems
15
15

Contemporary Hardware Platform Trends

The mobile digital platform

Cell phones, smartphones (iPhone, Android, and
Blackberry)
Data transmission, Web surfing, e-mail, and IM
duties
Netbooks:
Small lightweight notebooks optimized for
wireless communication and core tasks
Tablets (iPad)
Networked e-readers (Kindle and Nook)
16

Contemporary Hardware Platform Trends

BYOD (Bring your own device)

Allowing employees to use personal mobile devices in
workplace

Consumerization of IT
New information technology emerges in consumer
markets first and spreads to business organizations
Forces businesses and IT departments to rethink how
IT equipment and services are acquired and managed

17

Interactive Session: Management

Read the Interactive Session and discuss the following questions

SHOULD YOU USE YOUR IPHONE FOR WORK?

What are the advantages and disadvantages of allowing
employees to use their personal smartphones for work?

What management, organization, and technology factors

should be addressed when deciding whether to allow
employees to use their personal smartphones for work?
Allowing employees to use their own smartphones for
work will save the company money. Do you agree?
18

Research on the Internet to get an

Overview of

Mobile Digital Plattform

Grid Computing
Cloud Computing
Autonomic Computing
Green Computing
19

Contemporary Hardware Platform Trends

Grid computing
Connects geographically remote computers into a
single network to combine processing power and
create virtual supercomputer
Provides cost savings, speed, agility

Virtualization
Allows single physical resource to act as multiple
resources (i.e., run multiple instances of OS)
Reduces hardware and power expenditures
Facilitates hardware centralization
20

CLOUD COMPUTING PLATFORM

In cloud computing,
hardware and software
capabilities are a pool
of virtualized resources
provided over a
network, often the
Internet.
Businesses and
employees have access
to applications and IT
infrastructure
anywhere, at any time,
and on any device.

21

Characteristics of Cloud Computing

On-demand Self-service
Ubiquitous network access
Location-independent resource pooling
Rapid elasticity
Measured services

22

Research on the Internet to get an Overview

of
Open-Source-Software
Software for the Web: Java, Ajax, HTML 5
Software-Outsourcing
Web Services and Serviceoriented
Architecture (SOA)
Mashups and Apps

23

Contemporary Hardware/ Software Platform Trends

Green computing
High performance, power-saving processors
Autonomic computing
Open-source software
Examples: Apache web server, Mozilla Firefox browser

Open Source OS => Linux

Used in mobile devices, local area networks, Web
servers, high-performance computing
24

Contemporary Software Platform Trends

Software for the Web

Java:
HTML/HTML5

Web Services
XML: Extensible Markup Language
More powerful and flexible than HTML
Tagging allows computers to process data automatically

SOA: Service-oriented architecture

25

HOW DOLLAR RENT A CAR USES WEB SERVICES

FIGURE 5-11

Dollar Rent A Car uses Web services to provide a standard intermediate layer of software to talk to other
companies information systems. Dollar Rent A Car can use this set of Web services to link to other
companies information systems without having to build a separate link to each firms systems.

26

Contemporary Software Platform Trends

Three external sources for software:
Software packages and enterprise software
Software outsourcing
Contracting outside firms to develop software

Cloud-based software services

Software as a service (SaaS)
Accessed with Web browser over Internet

Service Level Agreements (SLAs): formal agreement

with service providers
Mashups
Apps
27

Changing Sources Of Firm Software

In 2012, U.S. firms will spend more than $279 billion on software. About 35 percent of that ($98
billion) will originate outside the firm, either from enterprise software vendors selling firmwide
applications or individual application service providers leasing or selling software modules. Another
4 percent ($11 billion) will be provided by SaaS vendors as an online cloud-based service.
28

Management Issues

Management and IT governance

Who controls IT infrastructure?
How should IT department be organized?
Centralized
Central IT department makes decisions

Decentralized
Business unit IT departments make own decisions

How are costs allocated between

divisions, departments?
30

Total Cost of Ownership

31

COMPETITIVE FORCES MODEL FOR IT INFRASTRUCTURE

There are six factors you can use to answer the question, How much should our firm spend on IT
infrastructure?

32

Learning Objectives Data Management

Describe how the problems of managing data resources in a
traditional file environment are solved by a database
management system.
Describe the capabilities and value of a database
management system.
Apply important database design principles.
Evaluate tools and technologies for accessing information
from databases to improve business performance and
decision making.
Assess the role of information policy, data administration, and
data quality assurance in the management of firms data
resources.
33

Banco de Credito Del Peru Banks on Better Data

Management

Problem: Multiple outdated systems, duplicate, inconsistent

data
Solutions: Replace disparate legacy systems with single
repository for business information
SAP integrated software suite included modules for
enterprise resource planning, and a data warehouse to
support enterprise-wide tracking, reporting, and analysis
Demonstrates ITs role in successful data management
Illustrates digital technologys ability to lower costs while
improving performance
34

The Data Hierarchy

A computer system organizes
data in a hierarchy that starts
with the bit, which represents
either a 0 or a 1.
Bits can be grouped to form a
byte to represent one
character, number, or symbol.
Bytes can be grouped to form
a field, and related fields can
be grouped to form a record.
Related records can be
collected to form a file, and
related files can be organized
into a database.
35

Organizing Data in a Traditional File Environment

Problems with the traditional file environment,

different Applications:
Data redundancy:
Presence of duplicate data in multiple files
Data inconsistency:
Same attribute has different values

Program-data dependence:
When changes in program requires changes to data
accessed by program

Lack of flexibility
Poor security
Lack of data sharing and availability

36

Human Resources Database With Multiple VIEWS

37

Relational Database Tables

A relational database
organizes data in the
form of two-dimensional
tables.
Illustrated here are
tables for the entities
SUPPLIER and PART
showing how they
represent each entity
and its attributes.
Supplier Number is a
primary key for the
SUPPLIER table and a
foreign key for the PART
table.

Entity Supplier

Entity Part

38

The Three Basic Operations Of a Relational DBMS

SELECT: Creates subset of data of all

records that meet stated criteria
Part Nr. = 137, 150

JOIN: Combines relational tables to provide

user with more information than available in
individual tables, Foreign Key _Supplier Nr.

PROJECT: Creates subset of columns in

table, creating tables with only the
information specified

39

The Database Approach to Data Management

Capabilities of database management systems

Data definition capability:
Specifies structure of database content, used to create tables and define
characteristics of fields
Data dictionary:
Automated or manual file storing definitions of data elements and their
characteristics
Data manipulation language:
Used to add, change, delete, retrieve data from database
Structured Query Language (SQL)
Microsoft Access user tools for generating SQL
Many DBMS have report generation capabilities for creating polished reports
(Crystal Reports)

40

Using Databases to Improve Business

Performance and Decision Making

Big data
Massive sets of unstructured/semi-structured data from
Web traffic, social media, sensors, and so on
Petabytes, exabytes of data
Volumes too great for typical DBMS
Can reveal more patterns and anomalies

41

Using Databases to Improve Business Performance

and Decision Making

Business intelligence infrastructure

Today includes an array of tools for separate systems,
and big data

Contemporary tools:

Data warehouses
Data marts
Hadoop
In-memory computing
Analytical platforms
42

Using Databases to Improve Business

Performance and Decision Making

Data warehouse:

Stores current and historical data from many core

operational transaction systems
Consolidates and standardizes information for use across
enterprise, but data cannot be altered
Provides analysis and reporting tools

Data marts:
Subset of data warehouse
Summarized or focused portion of data for use by specific
population of users
Typically focuses on single subject or line of business
43

Using Databases to Improve Business Performance

and Decision Making

Hadoop

Enables distributed parallel processing of big data

across inexpensive computers
Key services
Hadoop Distributed File System (HDFS): data storage
MapReduce: breaks data into clusters for work
Hbase: NoSQL database

Used by Facebook, Yahoo, NextBio

44

Using Databases to Improve Business Performance and

Decision Making
In-memory computing
Used in big data analysis
Use computers main memory (RAM) for data storage to avoid delays in
retrieving data from disk storage
Can reduce hours/days of processing to seconds
Requires optimized hardware

Analytic platforms
High-speed platforms using both relational and non-relational tools optimized
for large datasets

45

Using Databases to Improve Business Performance and Decision Making

Analytical tools: Relationships, patterns,

trends
Tools for consolidating, analyzing, and providing
access to vast amounts of data to help users make
better business decisions

Multidimensional data analysis (OLAP)

Data mining
Text mining
Web mining

46

A contemporary business
intelligence infrastructure
features capabilities and
tools to manage and
analyze large quantities
and different types of
data from multiple
sources.

Components Of A Data Warehouse

Easy-to-use query and

reporting tools for casual
business users and more
sophisticated analytical
toolsets for power users
are included.

47

MULTIDIMENSIONAL DATA MODEL

The view that is showing
is product versus region.
If you rotate the cube 90
degrees, the face that
will show 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.

48

Using Databases to Improve Business Performance and

Decision Making

Data mining:
Finds hidden patterns, relationships in datasets
Example: customer buying patterns

Infers rules to predict future behavior

Types of information obtainable from data mining:

Associations
Sequences
Classification
Clustering
Forecasting
49

Linking Internal Databases To The Web

50

Managing Data Resources

Establishing an information policy

Firms rules, procedures, roles for sharing, managing,
standardizing data
Data administration
Establishes policies and procedures to manage data

Data governance
Deals with policies and processes for managing availability,
usability, integrity, and security of data, especially regarding
government regulations

Database administration
Creating and maintaining database
51

Managing Data Resources

Ensuring data quality

More than 25% of critical data in Fortune 1000
company databases are inaccurate or incomplete
Redundant data
Inconsistent data
Faulty input

Before new database in place, need to:

Identify and correct faulty data
Establish better routines for editing data once
database in operation
52

Managing Data Resources

Data quality audit:

Structured survey of the accuracy and level of
completeness of the data in an information system
Survey samples from data files, or
Survey end users for perceptions of quality

Data cleansing
Software to detect and correct data that are incorrect,
incomplete, improperly formatted, or redundant
Enforces consistency among different sets of data from
separate information systems
53

Telecommunications, the Internet, and

Wireless Technology

Video cases:
Case 1: Telepresence Moves Out of the Boardrooom and Into the Field
Case 2: Unified Communications Systems: Virtual Collaboration with Lotus
Sametime

Learning Objectives

Identify the principal components of telecommunications

networks and key networking technologies.
Identify the different types of networks.
Describe how the Internet and Internet technology work and
how they support communication and e-business.
Describe the principal technologies and standards for wireless
networking, communication, and Internet access.

Describe radio frequency identification and wireless sensor

networks and identify why these are valuable business
technologies.
55

RFID and Wireless Technology Speed Up Production at

Continental Tires
Case
Problem: Inefficient manual processes; large
study
production environment

Solutions: Track components in real time, optimize

transportation, and expedite communication

Wi-Fi networks
RFID technologies
Mobile handhelds
Material inventory tracking software

Demonstrates use of technology in production and

supply chain to increase efficiency and lower costs
56

Telecommunications and Networking in Todays Business

World

Networking and Communication Trends

Convergence:
Telephone networks and computer networks
converging into single digital network using Internet
standards

Broadband:
More than 68% U.S. Internet users have broadband
access

Broadband wireless:
Voice, data communication are increasingly taking place
over broadband wireless platforms
57

Simple Computer Network

NOS: Network Operating System

NIC: Network Interface Card
58

Corporate Network Infrastructure

Todays corporate network infrastructure is

a collection of many different networks
from
- the public switched telephone network,
- to the Internet,
- to corporate local area networks linking
workgroups, departments, or office
floors.

59

Telecommunications and Networking in Todays

Business World

Client/server computing
Distributed computing model
Clients linked through network controlled by network
server computer
Server sets rules of communication for network and
provides every client with an address so others can find
it on the network
Has largely replaced centralized mainframe computing
The Internet: largest implementation of client/server
computing

60

Telecommunications and Networking in Todays Business World

Packet switching
Method of slicing digital messages into parcels (packets), sending packets along
different communication paths as they become available, and then reassembling
packets at destination
Previous circuit-switched networks required assembly of complete point-to-point
circuit
Packet switching means more efficient use of networks communications capacity
61

Telecommunications and Networking in Todays Business World

TCP/IP and connectivity
Protocols: rules that govern transmission
of information between two points
Transmission Control Protocol/Internet
Protocol (TCP/IP)
Common worldwide standard that is
basis for Internet
Department of Defense reference model
for TCP/IP
Four layers
Application layer
Transport layer
Internet layer
Network interface layer
62

The Global Internet

Internet addressing and architecture

IP addresses

The Domain name system (DNS)

Converts IP addresses to domain names
Hierarchical structure
Top-level domains

Internet architecture and governance

No formal management: IAB, ICANN, W3C
The future Internet: IPv6 and Internet2
63

The Domain Name System

The Domain Name
System is a hierarchical
system with a
root domain,
top-level domains,
second-level
domains,
and host computers at
the third level.

64

Internet Network Architecture

The Internet backbone
connects to regional
networks, which in turn
provide access to Internet
service providers, large
firms, and government
institutions.
Network access points
(NAPs) and metropolitan
area exchanges (MAEs) are
hubs where the backbone
intersects regional and local
networks and where
backbone owners connect
with one another.

65

Client/Server Computing on the Internet

Figure 7-8

Client computers running Web browser and other software can access an array of services on servers over the
Internet. These services may all run on a single server or on multiple specialized servers.

66

A Virtual Private Network Using the Internet

Figure 7-10

This VPN is a private network of computers linked using a secure tunnel connection over the Internet. It
protects data transmitted over the public Internet by encoding the data and wrapping them within the
Internet Protocol (IP). By adding a wrapper around a network message to hide its content, organizations can
create a private connection that travels through the public Internet.

67

Interactive Session: Management

Monitoring Employees on NetworksUnethical or Good Business?
Read the Interactive Session and discuss the following questions

Should managers monitor employee e-mail and

Internet usage? Why or why not?
Describe an effective e-mail and Web use policy
for a company.
Should managers inform employees that their
Web behavior is being monitored? Or should
managers monitor secretly? Why or why not?
68

The Global Internet

The Web
Hypertext Markup Language (HTML)
Hypertext Transfer Protocol (HTTP):
Communications standard used for transferring Web
pages

Uniform resource locators (URLs):

Addresses of Web pages
http://www.megacorp.com/content/features/082602.html

Web servers
Software for locating and managing Web pages
69

The Global Internet

Web 2.0
Second-generation services
Enabling collaboration, sharing information, and
creating new services online
Features

Interactivity
Real-time user control
Social participation (sharing)
User-generated content

70

The Global Internet

Web 2.0 services and tools

Blogs: chronological, informal Web sites created by
individuals
RSS (Really Simple Syndication): syndicates Web content so
aggregator software can pull content for use in another
setting or viewing later
Blogosphere
Microblogging

Wikis: collaborative Web sites where visitors can add,

delete, or modify content on the site
Social networking sites: enable users to build
communities of friends and share information
71

The Global Internet

Web 3.0: The Semantic Web

A collaborative effort led by W3C to add layer of
meaning to the existing Web
Goal is to reduce human effort in searching for and
processing information
Making Web more intelligent and intuitive
Increased communication and synchronization with
computing devices, communities
Web of things
Increased cloud computing, mobile computing
72

The Wireless Revolution

Wireless computer networks and Internet

access
Bluetooth (802.15)
Links up to 8 devices in 10-m area using low-power, radio-based
communication
Useful for personal networking (PANs)

Wi-Fi (802.11)
Set of standards: 802.11
Used for wireless LAN and wireless Internet access
Use access points: device with radio receiver/transmitter for
connecting wireless devices to a wired LAN
73

An 802.11 Wireless LAN

Mobile laptop computers
equipped with wireless
network interface cards link to
the wired LAN by
communicating with the access
point. The access point uses
radio waves to transmit
network signals from the wired
network to the client adapters,
which convert them into data
that the mobile device can
understand. The client adapter
then transmits the data from
the mobile device back to the
access point, which forward
the data to the wired network.
Figure 7-14

74

How RFID Works

75