Final Exam Study Guide50 questions will come from the lecture30 questions from the book (This means there will be 3 questions from each chapter. We studied the following chapters: 1, 2, 3, 4, 5, 6, 7, 9, 10, and 11)The exam will be completed in the Assessment Lab (Moody 106) using Moodle on Thursday, May 8 at 6 PM. FYI: Organizational strategy: ex= personnel policies about responding to changes in the organization Includes the orgs design as well as the choices it makes to define, set up, coordinate, and control its work processes; is a plan that answers the question--- how will the firm achieve its goals and implement its business strategy Informational strategy: a plan the organization uses to provide information services; allows a company to implement its business strategy; a set of systems to monitor, manage, and abort drilling processes in a crisis Business strategy: a plan articulating where a business seeks to go and how it expects to get there

1. Know the definition of an information system (Lecture 1d) Information System: Interrelated components working together to collect, process, store, and disseminate information to support decision making, coordination, control, analysis, and visualization of an organization The technology (hardware, software, networking, data) people, and processes that an organization uses to manage information 2. What is the study of Management Information Systems? (Social/Technical view) Managers should not rely on experts to analyze all the aspects of IS and to make the best decisions for the organization Managers today need to know about their organizations capabilities and uses of information as much as they need to understand how to obtain and budget financials resources IS managers need a business view to explain how technology will impact the business and what the tradeoffs are Managers must know how to mesh technology and people to create effective work processes Technology facilitates the work that people do and the way they interact with each other IS, MIS, and IT are synonymous. In charge of the information systems within the organization. Digital Natives: individuals who have grown up completely fluent in the use of personal technologies and the Web, also increase the rate of adoption of new technologies beyond the pace of traditional organization ***Failure to consider IS strategy when planning business strategy and organizational strategy leads to 3 business consequences: IS that fail to support business goals IS that fail to support organizational systems Misalignment between business goals and organizational capabilities 3 Managerial Skills: Visionary Information/interpersonal Structural 4 Assumptions about Management: Planning Organizing Leading Controlling 3 Roles: Interpersonal: figurehead, leader, liaison Informational: monitor, disseminator, spokesperson Decisional: entrepreneur, disturbance handler, resource allocator, negotiator3. What is data? Information? Knowledge? (Lecture 1d) Data: Data: Streams of raw facts representing events occurring in organizations or the physical environment before they have been organized and arranged into a form that people can understand and use Information : Data endowed with relevance and purpose, data in a context; data that have been shaped into a form that is meaningful and useful to human beings. Knowledge: information that is synthesized and contextualized to provide value (has most value) Information that has been organized and processed to convey understanding, experiences, accumulated learning, and expertise as it applies to a particular problem or process A central productive and strategic asset; only true form of competitive advantage Mix of contextualized info, values, experiences, and rules Richer and deeper than information and more valuable Information from the human mind (includes reflection, synthesis, context) Hard to structure; Difficult to capture on machines; Often tacit; Hard to transfer Computers work well for managing data, but are less efficient at managing information Example: inventory manager knowing which items need to be reordered in light of daily inventory report, anticipated labor strikes, and a flood in Brazil that affects the supply of a major component Ex: Walmart receipt: diapers and beer: raw data, date and time: info, 2 most common things purchased in early evening: knowledge Wisdom: 4th level in the information hierarchy Wisdom is knowledge, fused with intuition and judgment that facilitates the ability to make decisions Consistent with Aristotles view: ability to balance different and conflicting elements together in ways that are only learned through experience

4. What is the current role of IT within organizations today? **LECTURE 2A** 2 categories of technology: Disruptive: a new way of doing things that initially do not meet the needs of customers; customers must learn to adapt to the new way of doing things; after they learn to adapt theyre appreciative of the new method Internet (5 benefits) Shrinkage of information asymmetry Must focus on unexpected to capitalize on opportunities in disruptive technology Sustaining: produces improved product customers are eager to buy5. What is the difference between e-business and e-commerce? (Lecture 2a) E-business: use of internet and other digital technology for organizational communication and coordination and the management of the firm E-commerce: the process of buying and selling goods and services electronically, involving transactions using the internet, networks, and other digital technologies E-business is focused upon the organization, where e-commerce is about buying and selling of goods 6. What is disintermediation? (Lecture 2a) Disintermediation: The elimination of organization or business process layers responsible for certain intermediary steps in a value chain What is the purpose of disintermediation? Purpose is to reduce the final cost of the product to the consumer And why is Reintermediation occurring? Reintermediation: to provide value as a middleman to avoid disintermediation; shifting intermediary function in a value chain to a new source, such as service hubs Example: trusted parties to bring two parties together (Paypal) Ex. Manufacturer---- Service hub---Consumer7. What is information asymmetry and how has the Internet changed the power dynamic? (Lecture 2a) Information asymmetry: Situation where bargaining power of two parties in a transaction is determined to one party having more information essential to the transaction than the other party Before the internet, it wasnt as easy for consumers to shop around for better prices Now, the consumer has a lot of power right at his fingertips Now with internet can be anywhere to shop and compare prices 2 results from this shift: Consumer has more power now Disintermediation: fewer intermediaries between consumer and manufacturer

8. What is: B2B, B2C, C2C, C2B, and clicks-and-bricks?TypeSelling PartyBuying Party

B2CBusiness (eg. Kmart)Consumer (eg. Me buying a tv)

B2BBusiness Eg. SonyBusinessEg. Kmart-distributor

C2CConsumerConsumer

What are the 3 Different types of E-commerce B2B= business to business Sony selling to its distributor Walmart B2C= Me buying a computer or refrigerator from Conns C2C= Ebay- A person selling a pair of NineWest Shoes on ebay Early days E-commerce focused on B2C relations, but in recent times, focus has shifted towards B2B relationships Benefits of the e-world: Shrinkage of information asymmetry Changing relationships Business conducted 24/7 Extended global reach of corporation Can reduce transaction costs

Clicks and bricks (click and mortar): company integrates both offline (bricks) and online (clicks)presence Pure play- businesses that exist solely on the internet During the early days of e-commerce, predominated by pure-play; now shifting toward clicks and mortar or pure-play aligning with clicks-and-bricks E-firms have made technology the basis of their organization; have shown that technology can help to dramatically change marketplaces and the nature of competition; have made traditional firms change the way they compete for business; have made technology a basis for competition Todays economy characterized by: immediate access -right now; no physical boundaries global economy; IT has changed commerce- the economy; Information moves electronically- digital economy

9. What are the four powerful worldwide changes that have altered the business environment? (Lecture 1a-1c)a. Globalizationb. Rise of information technologyc. Emergence of the digital firmi. Characterized by digitally enabled relationships with customers, suppliers, and employeesii. Core business processes are accomplished via networksiii. Digital management of key corporate assets iv. Rapid sensing and responding to environmental changes d. Transformation of business enterprisei. Characterized by flattening, decentralization, flexibility, location independence; low transaction and coordination costs; empowerment; collaborative work and teamwork

10. What is the difference between richness and reach? (Lecture 2b) Richness: the depth and detail of information that a business can supply to (or can collect from) a customer; eg. The Ritz Carlton chooses richness over reach- each customers stay is personalized to their tastes- not many ppl can afford to stay there though Reach: how much people can a business can connect with and how many products it can offer those people; eg. Walmart chooses reach over richness11. What are Thomas Friedmans 10 forces that flattened the world? (Lecture 1a) The Collapse of the Berlin Wall Netscape: broadened audience IPO Workflow software: machines talking to each other with no human involvement Uploading (Open-Sourcing) Outsourcing Offshoring: Supply-chaining: example - Walmart Insourcing Informing: search engine The Steroids: voice over internet; wireless12. Know the types of power in Porters Five Forces Model: (Pre & Post Internet) high/low degree Porter argued that firms exist within industries Competitive forces are affecting firms, including: Threat of new market entrants Threat from substitute products Threat from suppliers Threat from customers Threat from other competitors

Ex: Barnes & Noble (Pre-internet) threats were from suppliers, customers & other competitors But was not worried about new entrants because high cost to enter market Ex: Barnes & Noble (Post-Internet) Still threats from suppliers, customers, and other competitors Competitive landscape has shifted Amazon shown that it is easy to enter the market, so higher degree of new entrants Also, now there is a threat from substitute product Technology has made it easier for new entrants/ technology influences and facilitates the strategies today13. Know the elements of systems theory **LECTURE 1D** Input: The capture or collection of raw data from within the organization or from its external environment for processing in an information system Processing: The conversion, manipulation, and analysis of raw input into a form that is more meaningful to humans Output: the distribution of processed information to the people who will use it or to the activities for which it will be used Feedback: Output that is returned to the appropriate members of the organization to help them evaluate or correct input14. Know the elements of socio-technical systems theory: finding FIT in organization The technology must be changed and designed in such a way as to fit organizational and individual needs (tech, organization, mgmt) Organizational structure Tasks Technology People15. What is the central and productive asset for firms today? (Lecture 1a) Knowledge is the central and productive asset for firms today16. What are the 4 rules governing the digital economy? (Lecture 1b) Wealth flows from innovation, not optimization Wealth is not gained by perfecting the known, but by imperfectly seizing the unknown. The ideal environment for cultivating the unknown is to nurture the supreme agility and nimbleness of networks. The domestication of the unknown inevitably means abandoning the highly successful known - undoing the perfected. The cycle of "find, nurture, destroy" happens faster and more intensely than ever before.

17. What are Porters four types of organizational strategy? (Lecture 2c)

1

IT helps to achieve all four strategies Cost leadership strategy: products are cheaper and the market is broad Eg. Walmart Cost focus: products are cheaper and the market is narrow Differentiation: Products are unique and the market is broad Differentiation focus: Products are unique and the market is narrow Eg. Ritz Carlton Hotel-uses unique narrow market- differentiation focus to form good relationships with clients

18. What is the difference between primary and support activities? (Lecture 3a) Primary: most directly related to production & distribution of product/service 60% value adding activities Most value added activities of firm are related to production (40.3%) and distribution of the product (6.6%) Support: make delivery of firms primary activities possible; 40% value-adding activities

19. How does technology give firms a competitive advantage? Technology alone does not lead to a competitive advantage Systems can be a differentiator, but not necessarily a competitive advantage By leveraging the power of the network, IT can bring together the resources and leverage capabilities to create distinctive competencies With the competencies in place, these competencies are then combined to generate a cost or differentiation advantage

20. Know the difference between technologies that work in the tactical level, the operational level, and the strategic level. **LECTURE 3B** Operational Level: Deciding how to carry out specific tasks specified by upper and middle management and establishing criteria for completion and resource allocation Monitors elementary activities and transactions of the firm TPS: Transaction Processing Systems computerized systems that perform and record daily routine transactions necessary to conduct the business Input: transactions, events Processing: Sorted, listed, merged, updated Output: Detailed reports, lists, summaries Users: Operations personnel, supervisors Examples: A/P, A/R , Payroll order tracking & processing Tactical Level (Knowledge workers): system supports knowledge and data workers Evaluating new ideas for products, services, ways to communicate new knowledge, and ways to distribute information throughout the organization OAS: Office automated systems Designed to increase the productivity of data workers Work processing (eg. Microsoft Word), desktop publishing (eg. Microsoft Publisher); Document imaging systems KBS: Knowledge based systems Intended to capture knowledge of human beings 2 varieties: (ES) Expert systems-captures the expertise of a human in limited domains of knowledge; similar to a DSS, but is built upon human knowledge Rationale: all individuals contain tacit knowledge knowledge in their heads Components = Knowledge base: stores the rules of the expert system Inference engine: takes the problem facts and searches the knowledge base for rules that fit Explanation module: explains why the system made the decision (KMS)Knowledge management systems Try to use computers to model human (Middle managers): systems support monitoring, controlling, decision making, and administrative activities Monitoring how efficiently or effectively resources are utilized and how well functional units are performing MIS: Manager information systems Records company data Transaction data from TPS are run through MIS producing reports Serve Management level; provide reports and access to company data Input: summary transaction data, high-volume data, simple models Processing: routine reports, simple models, low-level analysis Output: summary and exception reports Users: Middle managers DSS: Decision support system: Combines data and analytic models to support non routine decisions for individuals Use input from TPS data plus external sources Central idea: creating excel spreadsheet to create a model to make decisions Relies on data that is processed and analyzed to produce a report Effectiveness depends on how well you build the tool Users: professionals; staff managers Example: use of several models to determine costs for buying a home GDSS: Group decision support system aka collaboration system an interactive computer-based system to facilitate the solution to unstructured problems by a set of decision-makers working together as a group Example: Blackboard Collaborate where group holds discussions Facilitate interactions between individuals The group uses software tools aka groupware to help it arrive at a decision Differences between DSS and GDSS: DSS= individuals; GDSS = groups Objective of use: DSS= build models using data GDSS = facilitate interaction between individuals Effectiveness: DSS: depends on how well the tool is built by designers GDSS: depends on facilitators, tools selected, and participants Strategic Level System supports long range planning activities Determining the long-term objectives, resources & policies of an organization ESS: Executive support system Systems designed to address non-routine decision making Incorporate data from TPS, MIS, DSS, and other external sources Senior managers use this Examples: forecasting, marketplace trends, personal planning

21. What is the strategic inflection point? (Lecture 3a) Strategic Inflection Point: there will come a point in time when the organization struggles to find new customers and the organizations growth plateaus; over time, an organization grows until it reaches a period where growth plateaus Time where organization struggles to obtain new customers and organization plateaus the company must then either adapt and change to see new levels of growth; without adaptation the company will see failure 22. What is a database? And what are the components of a DBMS (Lecture 4a) Database: maintains information about various objects (inventory), events (transactions), people (employees), and place (warehouse) Located at the center of all Enterprise Resource Planning Systems When a user enters or updates information in one module, it is immediately and automatically updated throughout the entire system DBMS: software that allows users to create and maintain a database and enable individual business applications to extract the data they need 23. What are two examples of data manipulation languages? SQL: Sequel /Structured query language XML: Extendable markup language24. Why do firms implement data administration policies? Organizations create one individual to manage databases A database administrator is usually in charge of this functions Organizations outline an information policy: rules governing the maintenance, distribution, and use of data in an information system Organizations are aware of the serious risks of security issues, so a DBA is put in charge DBA can see everything Making sure information is safe/information security25. What is data mining? And what is the difference between data mining and a data warehouse? (Lecture 4b) Data Warehouse is an aggregation of all of the databases; a logical collection of information, gathered from many different operational databases, used to create business intelligence that supports business analysis activities and decision-making tasks Data Mining: Techniques to find hidden patterns, relationships in large pools of data to infer rules for predicting future trends. If we want to leverage our Warehouse we will use data mining: Data mining are the tools used to analyze the data; drilling down to find relationships between groups of data May include: Query & reporting tools; intelligent agents; multidimensional analysis tools; statistical tools

26. What are the characteristics of high quality information? **LECTURE 4A** Helpful Hint: ACCUT-- Accuracy, Completeness, Consistency, Uniqueness, Timeliness High quality information lead to good decisions; good decisions improves the bottom line27. What is business intelligence? And what are the drivers of BI? Business Intelligence: Information that people use to support their decision-making efforts Principle BI enablers (drivers) include: Right person (people) Right technology Right culture28. What is enterprise architecture? And what are the components of EA? (Lecture 6a) Enterprise Architecture: Plans for how an organization will build, deploy, use, and share its data, processes, and IT assets Three Components of EA: Information Architecture Goal: create a strategy for safeguarding the firms information Focus: How should we safeguard our information? Includes: backup and recovery; disaster recovery; information security A good plan includes: a strong information security plan; managing user access (so wont have a system crash by somebody who doesnt know what theyre doing); up-to-date antivirus software and patches Infrastructure Architecture Infrastructure: specific technology used to enable architecture; Focus: How should information be exchanged? A collection of compatible hardware and software arranged to communicate information from one location to another Includes hubs, routers, switches and all related protocols Protocols = the rules and procedures that govern the transmission between the components in a network; specific language that governs the flow of data Includes: Reliability; Scalability; Flexibility; Availability; Performance Application Architecture How should applications integrate? Includes: Web Services; Open Systems for integration of applications 29. What is the difference between a backup and a recovery? (Lecture 6a) Backup, Recovery, and Information Security are all a part of a companys Information Architecture Backup: An exact copy of a systems information Recovery: The ability to get a system up and running in the event of a system crash or failure and includes restoring the information backup Fault tolerance: The ability of a system to cope with internal hardware problems (eg, a disk drive failure) and still continue to operate with minimal impact Failover: The transfer of operation from a failed component to a redundant component to ensure uninterrupted data flow Disaster recovery plan: detailed process for recovering information or an IT system in the event of a catastrophic disaster (eg. flood, fire, hurricane)30. What are the steps that managers go through when making decisions (according to Simon 1960)? Managers go through 4 stages to make a decision.

Intelligence: Individual collects information to identify problems in the organization Design: Individual conceives of possible alternative solutions to a problem Choice: Individual selects among the various solution alternatives Implementation: Individual puts the decision into effect & reports on progress of solution

31. What is bandwidth? The typical measure used in conversation is the difference between the highest and lowest frequencies that can be transmitted ---- known as the bandwidth The higher the bandwidth, the quicker the transmission (eg. increase the bandwidth, increase the speed of the internet???) Fiber Optic = fastest Microwave = slowest32. What is the difference between LAN and WAN? (Lecture 6b) Local Area Network (LAN): network that encompasses a limited distance, usually one building or several buildings in close proximity (eg. C&Gs internet prob uses LAN) Wide Area Network (WAN): Spans a large geographical distance (eg. network on ULL campus) There are two types of computers on a network Client: the user-point-of-entry for the required function Typically a desktop, workstation, or laptop computer Server: A computer that stores and processes shared data and performs back-end functions not visible to users, such as managing network activities These two devices communicate with one another using communication channels over networks33. What is the difference between infrastructure and architecture? Architecture: Provides the blueprint for translating business strategy into a plan for IS Strategic in nature; there must be a high level technology strategy for sharing data Creation of architecture requires communication between IT and business Infrastructure: Everything that supports the flow and processing of information in an organization, including hardware, software, data and network components Consists of components, chosen and assembled in a manner that best suits the plan and enables the overarching business strategy Refers to specific technology that is used to enable architecture A collection of compatible hardware and software arranged to communicate information from one location to another Specific routers, hubs, servers used to implement architecture Five primary characteristics of a solid infrastructure architecture: Flexibility Scalability Reliability Availability Performance Cannot be all of the above, can only pick one IT creates infrastructure plan after architecture strategy is created

34. What is enterprise application integration? And what are your options for enabling EAI? (Lecture 5b) Enterprise Application Integration (EAI) is software that ties together multiple applications to support enterprise integration; similar to ERPs but EAI is a commercial attempt to do the same Middleware solutions: stand inside of organization or integrate applications through the internet Web services: enable two web based applications to exchange data Set of standards using Internet technology for integrating applications from different sources without coding; used for linking systems within the same organization The social nature of the organization is crucial Power and politics play a role in implementation Users want the innovation to liberate them and set them free from the constraints of their job Upper management support is crucial

35. Describe the different communication channels (Lecture 6b) There are four different communication channels: Twisted pair: twisted copper wires (e.g. telephone) Some refer to this as Category 1 to Category 7 untwisted or shielded twisted pair Aka X-Based T Ethernet Coaxial cable: thickly insulated copper wire (e.g. TV cable) 56kbps to 200 Mbps Fiber-optic: thin strands of clear glass fiber bound into cables (eg. LUS Fiber) Fastest: 500 kbps to 6+ tbps Wireless: sending data without cables (e.g. microwaves or satellites; WiFi)36. How do websites map domain names to IP addresses? (Lecture 6b) DNS server = Domain Name System Server translates URL (Uniform Resource Locater) to IP address If our server knows the address, routes the information to the appropriate location If our server does not know, it routes request to another DNS to figure it out DNS = a hierarchical naming system for computers, services, or any resource connected to the internet (eg. translates human-friendly computer host names to an IP address)37. What is the standard for wireless networks? (Lecture 6b) More and more internet connections are occurring through Wi-Fi connections The standard for wireless networks = 802.11 - the wireless protocol to govern internet connections Standard for networks created by the Institute of Electrical and Electronics Engineers (IEEE) Working group Supported bandwidth of 2 Mbps Has been expanded to 802.11b, 802.11a, 802.11g38. What is the SDLC (Systems Development Life Cycle) methodology? And what are the steps involved? (Lecture 7a) SDLC = Systems Development Life Cycle: a traditional tool for developing information systems, or for implementing software developed by an outsourcing provider or software developer Set of activities used to create an IS; refers to the process of designing and delivering the entire system SDLC can be used in one of two ways: systems analysis or systems development Systems analysis: The analysis of the business problem that the organization will try to solve with an information system The general project plan of all the activities that must take place for the entire system to be put into operation; includes: Planning Analysis Systems development: The activities that go into producing an information systems solution to an organizational problem or opportunity Design Develop Test Implement Maintain Plan- The project is considered, scoped, and carefully planned Document project objectives, scope, benefits, assumptions, constraints, estimated costs, and schedule, and user commitment mechanisms Plan for human resources, communication, risk management, and quality End users should define CSFs (Critical success factors)and be included in the project plan CSF= elements that are critical to the system being successful Project scope: high level system requirements of the project; gives an understanding of the type of system the firm is intending to use (eg. Supply Chain; CRM) Analysis- Goal: end users and IT work together to gather, understand, and document the business requirements for the proposed system Involves: gathering biz requirements: detailed set of requests that the system must need; more specific than CSFs conduct a feasibility study-determination of whether a solution is possible, given the firms resources/constraints; examine technical resources, economic resources, operational resources, strategic resources determine the answer to the need from the feasibility study, determine the list of possible alternatives and decide upon which mix of costs, benefits, features, and impacts is most desirable

Design- Goal: to build a technical blueprint of how the proposed system will work Design the technical architecture required to support the system Design system models Design the technical architecture required to support the system; architecture must be compatible with infrastructure unless the organization builds one for the project Design system models: a graphical representation of the system is built; includes screens, reports, software, and databases Development Goal: transform design documents from the design phase into an actual system Involves: writing and coding the software Creating the databases Deploying the telecom equipment Installing hardware and software Deliverable = finished system Point at which the system is actually built; if the system is acquired, it is here where customization occurs according to the needs of the business environment Development Options: Application software packages: set of prewritten, pre-coded application software packages commercially available for sale or lease Customization: modification of software package to meet the firms unique requirements without destroying the softwares integrity Write from Scratch: writing and coding software using standard programming tools and databases; not the best strategy Software alone does not give a competitive advantage; need a sustainable competitive advantage Test- Goal: verify that the system works and meets all of the business requirements defined in the analysis phase Develop a test plan- what needs to work Implement the test plan If the testing is successful, proceed to implementation Two broad options for testing: Unit testing: test each module in the program individually; aka deep testing; what Cisco did- not the best option when used alone; System testing: test the whole program Implement Goal: to place the proposed system in the organization Activities: Define the distribution approach Carry out the conversion Train the users (can happen during conversion) Provide users with documentation (highlights how to use the system) Deliverable: the system is being used by every user Maintain Goal: monitor and support the new system to ensure that it continues to meet business goals Activities: debugging/solving problems (help desk): 20% Upgrades/changes: 20% Adding new functionality: 60%

39. Why is systems development so challenging? And what are the challenges with implementation?

40. What are the different choices for implementation (e.g. pilot testing, parallel, direct cover, and phased)? Parallel strategy: safe and conservative; both systems are used for a time; the old system may stop running as soon as the new system is installed; the safest way to convert from a new to an old system b/c if the new system fails, users easily can revert to the old system Direct cutover: risky; one system replaces the other on a given day; the new system may be installed in stages across locations or in phases; the riskiest approach b/c there is no backup system to turn to in the event of problems with the new system Pilot testing: system is brought into individual BUs and operates until system is successful Phased: system is brought in one functional unit at a time41. What are the factors that dictate whether an IS project will be successful or not? (Lecture 7b) User involvement and influence Management support Complexity/risk Management of implementation process 42. What is project management? Project manager: makes sure the entire project is executed appropriately and coordinated properly; defines the project scope realistically and then manages the projects so that it can be completed on time and within budget43. What is extreme programming and why is it advantageous? Extreme programming (XP) methodology breaks a project into tiny phases, and developers cannot continue on to the next phase until the first phase is complete Faster than the waterfall method with 7 steps Smaller projects are delivered quickly in steps Users are the drivers of the success of this method Typically allows for delivery of parts every quarter Allows IT to keep the user engaged and involved at each step 44. What are the drawbacks for software customization? Customization: Modification of software package to meet organizations unique requirements without destroying the softwares integrity Software by itself does not provide competitive advantage; it is how you use and leverage IT gives competitive advantage The more customization present, the higher it will cost Most firms try to do ERP without making any changes Uses up capital unnecessarily that can be used to obtain more sustaining competitive advantage Upgrades Software integrity Best practices Cost45. During the maintenance phase of SDLC, where does IT spend most of its time? Monitor and support the new system to ensure that it continues to meet business goals Debugging 20% Upgrades 20% Adding new functionality 60%

46. Why is IT project management so unique? (Lecutre 8a)***IT projects uniquely require more knowledge than other projects More stakeholders present: End users, business owners, and IT Technological challenges: Integration with architecture and pre-existing software Cost issues: Who is paying for the project? And what happens when it is over budget? More knowledge is required: Must interface with all functional areas in the organization and speak their language47. Why do IT projects fail? (Lecture 8a) 2/3 of all IT projects fail (KPMG) Ignorance (eg. ppl dont know how to run a cost-effective, quality project) Bad management (eg. poor control, improper planning) Poor control Not relying upon proper planning Failure to communicate Not understanding sociotechnical view Mythical man-month Man month: the amount of work a person can be expected to complete in a month More people Less time Project managers believe that when the project falls behind, just need more people; WRONG-- 2/3 of all IT projects fail Most IT people dont have project management skills; former programmers or analysts with no formal project training 48. What is the difference between an analyzer, defender, prospector, and reactor corporation? According to the Miles & Snow: Corporate Strategy Taxonomy, there are 4 types of corporate strategies Strategy: an elaborate and systematic plan of action; high level statement of what the firm intends to do; Typically set by the CEO and other top executives; Tool- SWOT analysis Defender Locates and maintains a secure niche in a relatively stable product or service area Offers limited range of products or services Protects domain by offering higher quality, superior service and lower prices Not usually at the forefront of developments in the industry Tends to ignore industry changes that have no direct influence on current areas of operations Concentrates on doing the best job possible in a limited area Not as aggressive; like a soldier that stands its ground and maintains position (eg. a clothing boutique) Has the mentality that it wont move or change; focus is on what it does best Prospector Operates within a broad product-market domain that undergoes periodic redefinition Values first in in new-product and market areas Even if efforts are not highly profitable Organization responds rapidly to early signals concerning areas of productivity Responses often leads to a new round of competitive actions Organization may not maintain market strength in all areas it enters Like a kamikaze soldier on the battlefield- see opportunities and rush in to take it Great firm to work in; will Rush in to establish a niche to create new industry Eg. Amazon Analyzer Attempts to maintain a stable, limited line of products or services Moves out quickly to more promising new developments in the industry Seldom a major competitor in areas compatible with its stable product-market base Is frequently second in with a more cost-efficient product or service Comes in to try to change the nature of competition by using technology to drive down costs Eg. Google after Yahoo established the market for search engines Watches the kamikaze go in first to feel out the scene, then enters the market

Reactor Does not appear to have a consistent product-market orientation Not as aggressive in maintaining established products and markets as some of its competitors Not risk takers Not willing to take as many risks as other competitors Responds in those areas where it is forced to by environmental pressures Reacts based on pressure Not trying to be proactive but Reactive Similar to defender in lack of aggression Eg. Blockbuster when hit by Redbox & Netflix didnt change until these two companies came out Blockbuster wasnt really trying to adjust to new technology

49. What are the different stages in Nolans stages of growth? (Lecture 9b) Initiation: Initial introduction of computers to the organization. Batch processing to automate clerical operations to achieve cost reduction, operational systems focus, lack of management interest, and centralized development Contagion (expansion): Centralized rapid growth as users demand more applications based on high expectations of benefits, move to online systems, trying to satisfy user demands. Little control if any. IT expenses increase rapidly. Control: In response to management concern about cost vs. benefits, systems projects are expected to show a return, plans are produced, and methodologies/standards enforced. Planning controls are introduced. Integration: Considerable expenditure on integrating (via telecommunications and databases) existing systems. User accountability for systems established and IT provides a service to users. At this time, there is a transition to supporting knowledge workers and from data processing Data administration: Information requirements rather than processing drive the applications portfolio and information is shared within the organization. Database capability is exploited as users understand the value of the information and are willing to share it Maturity: The planning and development of IT in the organization is closely coordinated with the business development. Corporate wide systems are in place. The IT department and the users share accountability regarding resources. IT is a strategic partner.

50. What is outsourcing? What are the different choices? And why do firms outsource? IT outsourcing - Describes a process whereas an organization decides to contract-out or sell the firms IT assets, people and/or activities to a third party vendor, who in exchange provides and manages these assets and services for an agreed fee and over an agreed time period. Outsourcing Options Total: Outsource all IT Selective: Outsource some aspect of IT Transitional: Outsource legacy systems while working on new systems Why Firms Outsource Reduced IT costs Improved technology and services Business focus Downsizing and rightsizing Access to knowledge Reduced capital expenditure Vendor value proposition51. How do firms gain a competitive advantage? An advantage gained over competitors by offering consumers value Either by lower price or greater benefits and service that justifies higher service52. Know the model that describes competitive parity versus a temporary/sustainable competitive advantage: 53. Know about the case studies that we discussed in class Cisco CVS Kodak Mrs Fields ZaraTextbook QuestionsThe textbook questions will be pulled from the questions that you have already seen during the four quizzes. Familiarize yourself with the chapters and be prepared for questions similar to what you have previously seen.

FirstGenerationSecondGenerationThirdGenerationFourthGenerationFifthGenerationUser-Written ProgramsMachine LanguagesPackaged ProgramsSymbolic LanguagesOperating SystemsHigh-Level LanguagesDBMS Fourth-Generation LanguagesMicrocomputer PackagesNatural & Object-Oriented LanguagesMultipurpose Graphic- Interface Network-Enabled Expert-Assisted PackagesTrend: Toward Easy-to-Use Multipurpose Network-Enabled ApplicationPackages for Productivity and CollaborationTrend: Toward Visual or Conversational Programming Languages andTools