1 REVIEW FOR EXAM 3 BUS3500 - Abdou Illia, Fall 2006

1

REVIEW FOR

EXAM 3

BUS3500 - Abdou Illia, Fall 2006

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Information Systems For E-

Business

Part 1

3

What technologies would helpimplement your E-Business model?

What technologies would take care of my concerns?

What kind of issues/concernsyou have to deal with?

Who are you? How far you can go digital?- What products/services?

- How customers find, purchase, pay prod./services?- How products/services are delivered?

Who are your customers?

E-BusinessTriangle

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E-Business TechnologiesWeb design

TCP/IPJava

FirewallsElectronic Payments,

Online BillingEncryption

E-Business IssuesCopyright

PrivacySecurity

Intellectual PropertyTaxation

TrustJurisdiction

E-Business modelsB2BB2CC2C

E-Government: G2B, G2C

E-BusinessTriangle

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Components of E-Business Each component could be Physical or Digital. The extent to which a Business is an e-Business depends on

the extent to which the components are digital.

Processes: Process of finding the product, purchasing and paying.

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E-Business Models Business-to-Consumer – B2C

Business sells products directly to the consumer. Business-to-Business – B2B

Businesses sell to other businesses. Consumer-to-Consumer – C2C

Consumers sell directly to other consumers. E-Government

Government provides services to businesses-G2B Government provides services to citizens -G2C

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B2C Models Subscription

Consumers pay to have regular access to site. Consumersreports.com

Online storefront Web site acts as intermediary between

manufacturer and consumer. Amazon.com

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B2C Models (continued)

Bricks-and-clicks Combines a traditional retail outlet with an

online storefront CircuitCity.com

Advertising Sell advertising space on web site to other

companies Sports.yahoo.com

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B2C Models (continued)

Internet presence Use web presence to provide information about

products and services Exxon.com

Intermediary New types of intermediaries connect buyers

and sellers E-Trade.com

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B2B Models B2B is much larger than B2C

Size estimates range from $543 Billion to $6.8 Trillion Increase 50% per year

Information exchanges Exchange business documents over the Internet EDI via the Internet

Direct sellers Direct sales model, direct to other businesses

Dell Premier pages Cisco

New intermediaries Virtual hubs match buyers and sellers

E-Hospitality

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C2C Models Online garage sales Online auctions

Allows consumers to buy and sell goods with other consumers

EBay.com

C2C services Sell expertise directly to other customers Keen.com

Online communities Allow people with similar interests to come together Chat rooms Discussion boards

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E-Government Business Models Government-to-citizen (G2C)

Provide government services to citizens over the Internet

Vehicle registration renewal Online voting

Government-to-business (G2B) Helps government and business work together more

efficiently Reduces paperwork and costs for business and

government

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E-Business Issues E-Business raises a number of difficult legal,

social, and ethical issues Protection of intellectual property Taxation of e-business transactions Jurisdiction – whose laws apply when a transaction

crosses many international boundaries Trust (personal info., possible financial loss)

TRUSTe Digital divide

Security

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Security Hackers: who attempts to gain unauthorized

access to a computer system Spoofing (spoof attacks)

Replacing a legitimate web site by another web site Denial of service attacks

Type of security threats that could shut down a company's e-business site. Example of Denial of service attacks:

Teardrop attacks (overloading a target by sending a lot of messages or requests)

Ping of Death attacks (oversized packets)

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Summary Questions

Malaga Notes

1) What are the three elements of the e-business triangle?

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2) (a) Which business model do online auction sites use? (b) Which ones governments use?

(a) 17(b) 18

3) (a) What is a Denial of service attack? What is a spoof attack? What is a Ping of Death attack?

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4) Does Public/Private Key encryption protect the data stored on a server computer? 25

Note: the numbers refer to the slide numbers in the Powerpoint class notes, NOT in these review notes.

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Information Systems For

Decision-Making

Part 2

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The Decision-Making Process

Simon’s model of the decision-making process Intelligence Design Choice

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Intelligence Phase Scan the environment

for a problem.

Determine if decision-maker can solve the problem. Within scope of

influence

Fully define the problem by gathering more information about the problem.

Scan Environment forproblem to be solved

or decision to be made

Data source

MIS

Problem ? END

Problem within scope of influence?

No

Yes

ENDNo

Gather more informationabout the problem

Internal & External data

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Design Phase Develop a model of

the problem. Determine type of

model. Verify model. Develop and

analyze potential solutions.

Develop a model ofproblem to be solved

Verify that the model is accurate

Develop potentialsolutions

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Choice Phase Select the solution to implement.

More detailed analysis of selected solutions might be needed.

Verify initial conditions. Analyze proposed solution against real-world

constraints.

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Decision Support Systems Designed to help individual

managers make decisions Major components

Data management subsystem Internal and external data sources

Model management subsystem Typically mathematical in nature

User interface How the people interact with the DSS Data visualization is the key

Text Graphs Charts

UserInterface

Model Management- Sensitivity Analysis -> What-if Analysis -> Goal-seeking Analysis

Data Management

- Transactional Data- Data warehouse- Business partners data- Economic data

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Modeling Tools and Techniques Simulation

Used to examine proposed solutions and their impact Sensitivity analysis

Determine how changes in one part of the model influence other parts of the model

What-if analysis Manipulate variables to see what would happen in given

scenarios Goal-seeking analysis

Work backward from desired outcome

Determine monthly payment given various interest rates.

Works backward from a given monthly payment to determine various loans that would give that payment.

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Groups Decision Support Systems

DSS designed to help groups make decisions with the help of a Group Facilitator

GDSS Tools: Brainstorming tools: Allow users enter ideas simultaneously & anonymously

Commenter tools: Allow users to anonymously comment on others’ ideas

Categorizing tools: Groups ideas into categories

Idea-ranking tools: Ranks ideas. Identify the best ones.

Electronic-voting tools: Allow users to vote for their favorite ideas.

GDSS tools

Front Screen

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Executive Information Systems Computer-based tool that specifically

helps top-level management make strategic decisions Processes both internal and external data Presents data in summary form Drill-down is a key feature – gives the

manager the ability to see more details when needed

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KWS. Expert Systems AI systems that codify human expertise in a

computer system Main goal is to transfer knowledge from one person to

another Wide range of subject areas

Medical diagnosis Computer purchasing

Knowledge engineer elicits the expertise from the expert and encodes it in the expert system

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Expert Systems Components Knowledge base: database of the expertise, often in IF THEN rules. Inference engine: derives recommendations from knowledge base and

problem-specific data User interface: controls the dialog between the user and the system Explanation system: Explain the how and why of recommendations

Knowledgebase

Domain Expert

Knowledge Engineer

Expertise

ExplanationSystem

InferenceEngine

UserInterface

User

System Engineer

Encoded expertise

IFfamily is albatross ANDcolor is whiteTHENbird is laysan albatross.

IFfamily is albatross ANDcolor is darkTHENbird is black footed albatross

Example of rules

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Summary QuestionsMalaga Notes

1) What are the steps of a decision making process according to the Simon’s model? Explain each step.

6-9

2) (a) What are the major components in a DSS? (b) What is the function of each?

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3) (a) What is the difference between a DSS and a GDSS? What is a Group facilitator? What are the main tools used in a GDSS to help users reach a decision?

10,12

4) What is an EIS? What is the difference between a DSS and an EIS?

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5) What is an Expert System? What are the main components of an Expert system? What is a knowledge engineer?

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Note: the numbers refer to the slide numbers in the Powerpoint class notes, NOT in these review notes.

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Business Integration

Part 3

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Business Integration?

SalesDepartment

LogisticsDepartment

ProductionDepartment

HorizontalIntegration

Vertical

Integration

Suppliers

Customers

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Systems for Horizontal Integration Enterprise Resource Planning (ERP) systems

integrate all the internal processes through a common information system

ERP system

SalesDepartment

LogisticsDepartment

ProductionDepartment Warehousing

MarketingDepartment

AccountingDepartment

CommonDatabase

Process1 Process2Process1 Process2

Process1 Process2 Process1 Process2

Process1 Process2Process1 Process2

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Integrating Internal Processeswith ERP

ERP systems integrate all the functions and departments within an organization through a common information system

Most common modules for an ERP system Finance Manufacturing: helps from product development to production Human resources: Handles all HR functions Procurement: helps manage the purchase of office supply & raw

material Marketing: manage relationship with customers

ERP mainly used by medium and large businesses Average lifetime cost: $15 Million (in 2003) Implementation process: up to 5 years

Up to 50% ERP implementation projects fail

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Vertical Integration with suppliers

Possible problems: Raw material shortage Receiving more raw material than needed Etc.

Suppliers

Company’s Internal processes

Lack of good integration

Q: What kind of solution can provide business integration in this specific case?

SalesDepartment

Process1 Process2

DeliveryDepartment

Process1 Process2


Process1 Process2

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Systems for Vertical Integration Electronic Data Interchange (EDI):

Direct computer-to-computer transfer of business documents in electronic form

Suppliers


SalesDepartment

Process1 Process2

DeliveryDepartment

Process1 Process2


Process1 Process2

EDI System

Value Added Network (VAN)or

Private network connection

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Electronic Data Interchange (EDI)

Allows automatic transfer of electronic order forms and their automatic processing

EDI relies on a pair of message standards ANSI X12 – used in North America EDIFACT – international, but widely used in Europe

Advantages: Eliminates paperwork Reduces errors Speeds supply process

Disadvantages: Provides connection only between two companies Limits freedom of comparing prices.

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Systems for Vertical Integration Supply chain management (SCM) system

provide a direct electronic connection with suppliers


SalesDepartment

Process1 Process2

DeliveryDepartment

Process1 Process2


Process1 Process2

SCM System

Network connection

Suppliers

- Forecast demand- Handle purchase of supply- Manage storage + shipping

Three main functions

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Vertical Integration with customers

Possible problems: Out of product Poor customer support Etc.

Customers

Lack of good integration

Q: What kind of solution can provide business integration in this specific case?


SalesDepartment

Process1 Process2

DeliveryDepartment

Process1 Process2


Process1 Process2

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Systems for Vertical Integration Customer Relationship Management (CRM)

information system to manage all the functions that deal with customers

Goal of CRM is to increase sales and repeat business by learning the customer Remember the customer’s needs and preferences Determine the customer’s satisfaction with service Determine which customers are in the magic 20 percent

(or have the potential to become part of it)

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CRM software CRM software modules include

Personalization Marketing automation Sales force automation Service and support

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1) What is the difference between Horizontal integration and Vertical integration?

2) (a) What king of IS could be used for horizontal integration of business processes? (b) What kind of IS could be used for vertical integration of business processes?

3) (a) What are the common modules found in ERP systems? (b) Name few ERP software vendors. (c) What are the success factors of ERP implementation?

4) What is EDI? What kind of network connections are usually used in EDI? What is the EDI message standard used in the U.S.?

5) What is a SCM system? What is the main goal of an SCM system? What are the stages of SCM?

5) What is a CRM software used for? What is their goal?

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Strategic Advantage

Part 4

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All of the questions for this part are be based on the questions included in the Information Systems For Strategic Advantage (Part 2) Powerpoint class notes

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Managing the Development and

Purchase of IS

Part 5

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Traditional Systems Development Life Cycle (SDLC)

Seven phases 1) Planning 5) Testing2) Systems Analysis 6) Implementation3) Systems Design 7) Maintenance4) Development

Typically one phase needs to be completed before beginning the next

Problem in later phase may require return to previous phase

Planning

Analysis

Design

Development

Testing

Implementation

Maintenance

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SDLC: RecapSteps Key actors Tools/Techniques

1. Planning Project Manager

2. System Analysis System Analyst, Users. Interviews, observing users at work, DFD

3. System Design System analyst (or system designer)

System Flowchart, Structure chart

4. Development Programmers, database developers, network engineers

Program Flowchart, Pseudo code, programming languages, DBMS

5. Testing Development team, Users

6. Implementation Development team, Users Direct cutover, parallel conversion,pilot testing, staged conversion

7. Maintenance internal IS staff, external consultant

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1) What is a System Development Methodology? What is it used for?

2) What are the 7 phases of the SDLC methodology?

3) What are kind of Feasibility analyses need to be performed during the Planning phase? Why is the system development schedule important?

4) What are the two steps in the Systems Analysis phase? What techniques and tools are used during the Systems Analysis phase?

5) What tools do programmers usually use during the Development phase?

6) What is the difference between the Verification and the Validation tests performed during systems testing?

+ Make sure you check the Chapter 11 Exercises (1) available in the Notes’ section of the course web site.

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Problems with Traditional SDLC SDLC is time consuming SDLC is inflexible (sequential process) SDLC gets users’ inputs ONLY during

Systems analysis. Design is frozen at end of System Design

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Prototyping Actors

Development team, Users

System analyst, programmer

Users

System analyst, programmer

Identify basicrequirements

Develop aprototype

Is Usersatisfied?

Use theprototype

Revise theprototype

Operationalprototype

Develop final system(improved prototype)

YES

NO

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Prototyping Advantages

Working model ready quickly Works in situation where requirements are

changing Works in situations where users cannot

explicitly express their requirements Disadvantage

Only a limited number of users involved. So, subject to potential implementation problem.

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Joint Application Development (JAD)

A SDM that addresses: The limited scale of users involvement problem of Prototyping Potential implementation problem due to limited user involvement

A SDM that brings together the Development team and a significant number of users to define system requirements and develop a prototype.

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Joint Application Development (JAD)

Identify a validsample of users

Set a JAD team(Users, IS professionals, scribe)

Run the 1st JAD session(JAD team + Facilitator)

Develop system prototype(based on agreed requirements)

Run the 2nd JAD session(JAD team + Facilitator)

Improve system prototype(based on JAD session results)

Objectives

Identify agreed systems requirements

Test the system and identify agreed changes

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Question Which of the following is true about a JAD

facilitator? (Choose all that apply)a) Could be an outside consultantb) Is the scribe who takes notesc) Is responsible for coordinating the JAD

sessionsd) Is responsible for developing the system

based on the agreed upon requirementse) All of the above

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Joint Application Development (JAD) Advantages:

Helps alleviate conflicting requirements Greater user involvement leads to greater user

acceptance of final system Disadvantages

Could be expensive and time consuming

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Rapid Application Development (RAD)

Combines JAD, Prototyping, and integrated CASE (ICASE) tools to decrease the time for systems development

ICASE tools provide code generating capability ICASE tools can produce a completed program

based on the diagrams developed by systems analysts

ICASE tools can generate table for a database based on detailed system specifications

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Object-Oriented Analysis and Design (OOAD)

Uses same phases as SDLC System Analysis and Design phases view system

In terms of objects (e.g. customers, employees, products) NOT in terms of processes

OOAD identifies each object in the system along with its properties (e.g. SSN, Name, address, etc. for Student) its procedures (e.g. Register for a class, Apply for graduation)

Advantages Reduces time to develop system (objects’ reuse) Can lead to high-quality systems (reuse of tested objects and

procedures)

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1) What are the main problems associated with SDLC?

2) What is Prototyping? What are the steps of Prototyping? In what kind of situations Prototyping might be the best SDM to use?

3) What is JAD? Typically, who could be a member of a JAD team? Usually, what is the main objective of the 1st JAD session? What is the main problem associated with JAD?

4) What is RAD? What is an ICASE tool

5) What is the difference between OOAD and SDLC? What is an object’s property? What is a procedure? What are the main advantages of OOAD?

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Purchasing Software Commercial off-the-shelf (COTS) software

Less expensive May not contain all the needed features

Phases in COTS purchase procedure System planning Systems analysis Request for proposals Proposal evaluation Implementation Maintenance

}here is the difference

compared to SDLC

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Request for Proposals (RFP) Details the requirements for the new

systems and invites interested parties to submit a proposal for the system

Sections in an RFP Summary of existing systems Specific description of the features of the new

system Proposal evaluation criteria Budget constraints Timetable for deliverables Details of other miscellaneous information

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Request for Proposals (RFP) Summary of existing systems

Internal business processes Type of computers used etc.

Description of the features of the new system Requirements for hardware Requirements for software Requirements databases Requirements for network How many transactions per minutes? etc

Proposal evaluation criteria Features, reliability, speed, etc.

Budget constraints Maximum budget vs. No budget information

Details of other miscellaneous information Vendor’s past projects, client references, etc.

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Evaluating Proposals Usually using a point-system

Number of points for each requirement More points to more important requirements

Evaluation approaches Specific requirements

Eliminate proposals that don’t meet requirements Compare remaining proposals

Demonstrations At vendor’s location vs. At client site

Benchmarks Running system with sample data to see how it

performs

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1) What is a COTS software? How does the Traditional SDLC SDM differ from COTS SDLC? In what kind of situations Prototyping might be the best SDM to use?

2) What are the common sections found in a Request For Proposals? What is a point-system for evaluating proposals? What are the common proposal evaluation approaches?

Documents

1 REVIEW FOR EXAM 3 BUS3500 - Abdou Illia, Fall 2006