Core Business Systems, IT Development, and Security Concepts

Business Functions and Logistics

• Core Functions: Administration, Human Resources (HR), Technology, Procurement
• Logistics & Operations: Inbound Logistics, Operations, Sales, Service, Outbound Logistics

Key Information Systems

Enterprise Resource Planning (ERP)

• Integrated system covering: Sales, Production, Finance, HR
• Characteristics: Complex, Costly

Supply Chain Management (SCM)

• Manages: Supply, Production, Distribution
• Covers: Inbound Logistics, Manufacturing, Outbound Logistics
• Focus: Inventory Cost reduction
• Related Concepts: Key Performance Indicators (KPI) for efficiency, Just-In-Time (JIT)

Customer Relationship Management (CRM)

• Types: Operational, Analytical, Collaborative
• Process: Capture customer data, Analysis, Change business processes
• Goals: Widen customer base, Lengthen customer satisfaction, Deepen profitability (minimum 2 products/customer)

Other System Types

• TPS (Transaction Processing System): Handles routine transactions.
• MIS (Management Information System): Supports control and performance monitoring.
• DSS (Decision Support System): Aids non-routine decision-making.
• ESS (Executive Support System): Supports unstructured, strategic decisions.
• OSS (Open Source Software): Free to use, modify, redistribute; subject to licensing.

Information Systems Categories (ISca)

TPS, MIS, DSS, ESS, SCM, CRM, Systems supporting Customer Intimacy.

Business Strategy and Competition

Porter's Five Forces Model

1. Threat of New Entrants
2. Bargaining Power of Buyers
3. Bargaining Power of Suppliers
4. Threat of Substitute Products or Services
5. Rivalry Among Existing Competitors

Strategic Use of Information Systems (SI)

• Achieve Cost Leadership
• Create, Differentiate, or Enhance Products/Services
• Focus on Market Niche
• Improve Customer and Supplier Intimacy
• Implement Customer Lock-in / Increase Switching Costs

Data Management and Analysis

Data Warehousing (DW)

Data (External, Internal) -> Data Warehouse -> Data Serving Layer

Business Intelligence Tools

• OLAP (Online Analytical Processing): Multidimensional analysis, rapid, ad hoc queries.
• DM (Data Mining): Discovering patterns in large datasets.

E-commerce Models

Pure Play (Online Only)

• Advantages: Lower Cost, 24/7 Availability, Global Reach
• Challenges: Privacy Concerns, Security Risks, Shipping Logistics
• Cost Considerations: DIY (Do It Yourself) setup, Customization costs, Transaction costs, Advertising costs, Information costs

System Development Life Cycle (SDLC)

Requirements Gathering

• Identify Stakeholders
• State Requirements Clearly
• Conduct Interviews
• Develop Use Cases
• Create Prototypes

Prototyping Process

Identify Requirements -> Develop Initial Prototype -> User Interaction -> Revise Prototype -> Update Specifications -> Leads to GUI (Graphical User Interface)

System Analysis

• Investigation Phase
• Feasibility Studies: Technical, Economic, Operational
• Requirements Definition

System Development Process (SDP) Stages

1. Analysis
2. Design
3. Programming
4. Testing
5. Conversion
6. Production and Maintenance (Deployment)

System Design

• Logical Design
• Physical Design
• Data Design
• Acquiring Hardware/Software

Testing Types

• Unit Testing: Individual components.
• System Testing: Integrated system.
• Acceptance Testing: User validation.
• Platform Testing: Different environments.

Conversion Strategies

• Parallel: Old and new systems run together.
• Phased: Introduce new system in stages.
• Cut-over (Direct): Immediate switch.
• Pilot: Introduce to a small group first.

Waterfall Model

Sequential phases: Requirements -> Design -> Implementation -> Verification -> Maintenance

Decision Support Systems (DSS)

DSS Process

1. Intelligence (Problem discovery)
2. Design (Finding solutions)
3. Choice (Selecting a solution)

DSS Components

• Data Management
• Model Management
• Dialog Management (User Interface)

Project Management

Project Activities

• Planning
• Risk Assessment
• Estimating Resources
• Organizing Team
• Assigning Tasks
• Executing Plan
• Reporting Progress
• Evaluating Results

Project Variables (Constraints)

• Scope
• Time
• Cost
• Quality
• Risk

Project Risk Factors

• Project Size
• Project Structure Complexity
• Team's Experience with Technology

IT Planning and Governance

Management Levels

• Senior Management
• Middle Management
• Operational Management

Planning Structures

• Corporate Strategic Planning
• IS Steering Committee
• Project Management Office (PMO)
• Project Team (PT)

Information Systems (IS) Plan Components

• Purpose and Rationale
• Current Systems Assessment
• New Developments
• Management Strategy
• Implementation Plan
• Budget

Critical Success Factors (CSF)

Key areas where success is vital (e.g., Prototyping effectiveness, DSS usage, Database integrity, IS alignment).

IT Security and Threats

Common Threats

• Accidents and Errors
• Internal Threats (Employees)
• External Threats (Hackers, Malware)
• DDoS (Distributed Denial of Service): Flood attacks overwhelming servers.
• Malware: Viruses, Trojans, Worms, Adware, Spyware

Technical Safeguards

• Physical Security
• Firewalls
• Encryption
• Monitoring and Auditing Tools
• Dedicated Secure Facilities
• Access Control
• Secure WiFi (WPA2/3)
• VPN (Virtual Private Network)
• High Availability Measures

Facilities Security

• Regular Backups / Offsite Backup Storage
• Redundant Data Centers
• CCTV Surveillance
• UPS (Uninterruptible Power Supply)

Security Planning

1. Risk Assessment
2. Define Security Policies
3. Implementation Plan
4. User Training
5. Regular Auditing

Disaster Planning

• Business Continuity Plan: How business continues during disruption.
• Disaster Recovery Plan: How IT systems are recovered after disaster.
• Key Objectives: Recovery Time Objective (RTO), Recovery Point Objective (RPO).

Ethics and Societal Issues in IT

Ethical Dimensions (PAPA Framework - Mason)

• Privacy: Information about individuals.
• Accuracy: Authenticity and correctness of information.
• Property: Ownership of information and intellectual property.
• Accessibility: Right to access information and systems.

Key Relationships and Concerns

• Information Rights vs. Property Rights
• System Quality Impacts
• Quality of Life Considerations
• Accountability and Control
• Concerns driven by: Increasing Computing Power, Decreasing Storage Costs, Advanced Data Analysis Techniques, Pervasive Networking.