School of Business

BMIS300 Management Information Systems

Final Revision Sheet
Fall 2023 – 2024

Chapter 5

Defining IT Infrastructure
IT infrastructure is the shared technology resources playing a major role in the business today. It is
a set of physical devices and software required to operate an enterprise. But IT infrastructure is also
a set of firm-wide services including the following:

- Computing platforms: provide computing services that connect employees, customers, and
suppliers into a coherent digital environment, including large mainframes, midrange computers,
desktop and laptop computers, and mobile handheld devices.
- Telecommunications services: provide data, voice, and video connectivity to employees,
customers, and suppliers.
- Data management services: store and manage corporate data and provide capabilities for
analyzing the data.
- Application software services: including online software services, that provide enterprise-wide
capabilities such as enterprise resource planning, customer relationship management, supply
chain management, and knowledge management systems that are shared by all business units.
- IT management services: plan and develop the infrastructure, coordinate with the business units
for IT services, manage accounting for the IT expenditure, and provide management services.
- IT education services: provide training in system use to employees.
- IT standard services: provide the firm with IT policies and standards.

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 Current Trends in Computer Hardware
The main current hardware trends are the following:

- Emerging mobile digital platform: the new mobile digital computing platforms have emerged as
alternatives to PCs and larger computers. Smartphones have taken on many functions of
handheld computers, including transmission of data, surfing the Web, transmitting e-mail and
IM, displaying digital content, and exchanging data with internal corporate systems. They also
include: smartphones, netbooks, tablet computers, digital e-books, and wearable devices.
- Consumerization of IT & BYOD: the availability and ease of use of mobile devices (phones,
pads, etc.) helped employees to work from any location, leading to the concept of BYOD.
Consumerization of IT: Any new technology in the market spreads automatically to business
organizations. Forces businesses and IT departments to rethink how IT equipment and services
are acquired and managed.
- Virtualization: allows a single physical resource to act as multiple resources (i.e., run multiple
instances of OS). Allows access to resources without any restriction to physical configuration or
geographical location. Reduces hardware and power expenditures. Facilitates hardware
centralization. Server virtualization is an example to host multiple systems on a single machine.

- Cloud computing: model in which computer processing, storage, and software are provided as a
pool of virtualized resources over the Internet. Main characteristics: on demand self-service,
ubiquitous network access, location independent, rapid elasticity and measured service.
Cloud computing consists of 3 main types: Infrastructure as a service (IaaS) - Software as a
service (SaaS) - Platform as a service (PaaS). Clouds can be public or private. Allows companies
to minimize IT investments.
- Edge computing: is a method of optimizing cloud computing systems by performing some data
processing on a set of linked servers at the edge of the network, near the source of data. This
reduces the amount of data flowing back and forth between local computers and other devices
and the central cloud data center.
- High performance processors: another way to reduce power requirements, is the use of more
efficient power saving processors. Multicore processor: circuit where two or more processor
cores attached for better performance and reduce power consumption. Working on minimized
power consumption processors to extend battery life on mobile devices.

Current Trends in Computer Software

- Linux and open source software: an open source software is produced by community of
programmers working online. Free and could be modified by users. Examples: Apache web
server, Mozilla Firefox browser, OpenOffice, Linux.
Linux: The most well-known open source software. It is an Operating system related to the
powerful Unix. Linux applications embedded in cell phones and other devices. Available in free
versions downloadable from the Internet.

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- Java & HTML: Java is an operating system independent, processor independent programming
language designed to run on any computer or device. Java is used in Web browsers. A Web
browser: tool for displaying Web pages and other Internet resources (Ex: Google Chrome,
Mozilla Firefox, Internet explorer….).
HTML: Hyper Text Markup Language. It is a Web page description language to display text,
graphics, video, sound and links to other Web pages creating dynamic pages with multimedia.
- Software packages: prewritten commercially available set of software applications. Main
vendors include SAP and Oracle. Powerful software packages to support the firm’s primary
business processes. Example: Payroll system, Accounting system, Invoicing system.
- Cloud-based software: software hosted on powerful servers that could be reached with an
Internet connection. Access to cloud software through Web browsers from any location and any
hardware device.

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 Chapter 6

File Organization Terms and Concepts

A database is a group of related files. A File is a group of records of same type. A Record is a group
of related fields. A Field is a group of characters as word(s).

Problems with the Traditional File Environment

- Data redundancy: presence of duplicate data in multiple data files stored in more than one place.
Example: the same client name exits in the clients file, the invoices file, the accounting file etc.
- Data inconsistency: where the same attribute may have different values. Example: same client
with different addresses in the clients file and in the invoices file.
- Program-data dependence: data stored in files and programs required to update and maintain
those files such that changes in programs require changes to the data.
- Poor security: weak ability to control or manage data access. Too many separated files make the
data backup more difficult, time consuming, and difficult to control.
- Lack of data sharing: information cannot be freely shared across functional areas. Example: we
cannot benefit from the client’s information from the client’s file when using the invoices file
for the same client.

Database Management System (DBMS)

A database serves many applications by centralizing data and controlling redundant data. Rather
than storing data in separate files for each application, data appear to users as being stored in only
one location. Example: Sales database. A DBMS solves problems of traditional file environment:
Controls redundancy, eliminates inconsistency, and uncouples programs and data.
A Relational database represents data in two dimensional tables. Each table must have a primary
key (unique key identifying all data), and a relation links two tables (primary key with a foreign
key).

Business Intelligence Infrastructure

- Challenge of Big Data: usually transactional data collected by organizations could easily fit in
relational databases. But today we are witnessing an explosion of useful data from many different
sources. Big Data: massive sets of unstructured/semi-structured data from Web traffic, email
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 messages, social media, sensors, and so on… With big data, volumes are too great beyond the
ability for typical DBMS.
Big data doesn’t refer any specific quantity, but usually refers to data in the size of Petabyte and
Exabyte range (billions and trillions of records). Businesses are more interested in big data
because they can reveal more patterns, relationships and anomalies. To get the most out of this
big data, it requires new tools and technologies to manage and analyze.
- Data Warehouse: stores current and historical data of potential interest to decision makers
throughout the company. The data originate from many core operational transaction systems
(sales, accounting, manufacturing…). These data are combined with data from external sources
and transformed to fit with internal data. Consolidates and standardizes information for use
across the enterprise, but data cannot be altered. Provides analysis and special reporting tools.
- Data Marts: A data mart is a subset of a large data warehouse. Focuses on a single subject only.
Example: a clients’ data mart.

Analytical Tools: Relationships, Patterns, Trends

- OLAP: if your company sells many products, and you wanted to ask a straightforward question,
such as how many items are sold during the past quarter, you could easily find the answer by
querying your sales database. But what if you wanted to know how many items are sold in each
of your sales regions and compare actual results with projected sales? Then you need OLAP
which supports multidimensional data analysis and helps viewing data using multiple
dimensions. Each aspect of information (product, pricing, cost, region, time period) is a different
dimension.
Cube analysis: a graphical representation for data analysis using OLAP that shows products sales
versus regions in a cube view.
- Data mining: with OLAP and queries, users need to have a good idea about the information for
which they are looking. Data mining is more discovery driven. It provides insights into corporate
data. It finds hidden patterns and relationships in large datasets. Example: customer buying
patterns.
Infers rules to predict future behavior. The main types of information obtainable from data
mining: associations, sequences, classification, clustering, and forecasting.
- Text & Web mining: unstructured data, most in the form of text files, may account for more than
80% of organizational information (emails, memos, call center transcripts, survey responses...).
Text mining: tools used to extract key elements from large unstructured data sets, discover
patterns and relations, and summarize the information. Sentiment analysis software is able to
mine text in email messages, blogs, websites, social media, etc.
Web mining: discovery and analysis of useful patterns and information from the Web. The 3
main types of Web mining are: web content mining, web structure mining, web usage mining.

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 Chapter 7

What is a Computer Network?

In its simplest form a network consists of two or more connected computers. The major components
in a simple network:
- Client and server computers: clients are the computers connected in the network, and the
server is the computer controlling the network.
- Network interfaces (NICs): device to link computers to the network.
- Connection medium: linking the devices within the network by cable or wireless.
- Network operating system (NOS): coordinates and manages network resources. It usually
resides on a dedicated server computer.
- Hub: simple device that connects network devices by sending data from 1 computer to all
others.
- Switch: has more intelligence than a hub. It can filter and forward data directly to a computer.
- Router: a specific communication processor to connect different networks.

Types of Networks
There are many kinds of networks and many ways of classifying them. One way for classifying the
different types of networks is in term of their geographic scope.

- Local Area Network (LAN): designed to connect personal computers and other digital
devices within an office, or a building (around 500-meter scope). LANs are also used to link
to long distance wide area networks around the world, using the Internet. Usually, one of
the computers in a LAN is a dedicated server to control all the devices on the network
(client/server architecture). The server determines who gets access to what and how. The
router is used to connect a LAN to another network. LANs may use a peer-to-peer
architecture without the use of a server.
- Metropolitan Area Network (MAN): a network that spans a metropolitan area, usually a city
and its major suburbs. Its geographical scope falls between a LAN and a WAN.
The basic idea is to start with a LAN, then connecting many LANs in large area forms a
MAN.
- Wide Area Network (WAN): a network that spans a broad geographical distances (states,
regions, countries, or the entire globe). The most universal and powerful WAN example is
the Internet. Computers connect to a WAN through public networks, such as the telephone
system, or through private cable systems and leased lines…

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 Wireless Computer Networks and Internet
Access
- Bluetooth: popular name for the 802.15 wireless networking standard. Useful for personal
area networks (PAN) linking up to 8 devices maximum in a very short range (10 meters).
Widely used for smart devices (earphones, sensors…).
- Wi-Fi: popular name for the 802.11 wireless technology standard. Can connect many
devices at longer distances (50 to 100 meters) and at higher communication speed. In most
Wi-Fi networks, wireless devices communicate using a device called an access point.
- WiMAX: popular name for the 802.16 wireless standard known as Worldwide
Interoperability for Microwave Access. Has a very long access range (30 to 50 miles) with
high transmission speeds. Requires powerful antennas to transmit high speed Internet
connections to rooftop antennas of homes and businesses.

Radio Frequency Identification (RFID)

RFID systems provide a powerful technology for tracking the movement of goods throughout the
supply chain. RFID systems use tiny tags with embedded microchips containing data about an item
and its location to transmit radio signals to RFID readers. The readers then pass the data over a
network to a computer for processing.

In inventory control and supply chain management, RFID systems capture and manage more detailed
information about items in warehouses or in production much more than a traditional barcode system.

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 Chapter 8

Why Systems are Vulnerable

If you operate a business today, you need to make security and control a top priority. Security refers
to the policies, procedures, and technical measures used to prevent unauthorized access, alteration,
theft, or physical damage to information systems. Controls are methods, policies, and
organizational procedures that ensure safety of the organization’s assets, the reliability of its data,
and operational adherence to management standards.

- Internet vulnerabilities: Large public networks such as the Internet, are more vulnerable than
internal networks because they are virtually open for everyone. When the Internet links to the
corporate network, the organization’s systems are even more vulnerable to actions from
outsiders. Vulnerability has also increased from widespread use of email, instant messaging, and
file sharing programs.

- Wireless security challenges: Both Bluetooth and Wi-Fi networks are subject to hacking by
eavesdroppers. Networks are easily penetrated by outsiders armed with laptops, wireless cards,
and hacking software. Hackers use these tools to detect unprotected networks, monitor network
traffic, and gain access to corporate networks.

Malicious Software: Viruses, Worms, Trojan

Horses, and Spyware
Malicious software programs are referred to as malware and include a variety of threats.

- Viruses: A computer virus is a rogue software program that attaches itself to other software
programs or data files to be executed, usually without the knowledge or permission of the user.
Most computer viruses deliver a payload. The payload may be relatively benign (not harmful),
such as displaying unwanted messages or images, or it may be highly destructive (destroying
programs and data). Viruses typically spread from one computer to another when users take
actions like exchanging data (sending emails, copying files, etc…).

- Worms: Worms are independent programs that copy themselves from one computer to another
on the network without being attached to other programs and thus they less depend on user
actions. Worms destroy data and programs as well as disrupt or even halt the operations of
computer networks.

- Trojan Horses: Many malware infections are Trojan Horses. A Trojan Horse is a software
program that appears to be benign but then it starts to do something other than expected. It is
not itself a virus because it does not replicate, but it is often a way for viruses to be introduced
into a computer.

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- Spyware: Some types of spyware also act as malicious software. These small programs install
themselves on computers to monitor user web surfing activities and serve up advertising.
Thousands of forms of spyware exist and many users find them annoying and invading their
privacy. Keyloggers record every keystroke made on a computer to steal vital information
(passwords, credit card numbers, etc.).

Hackers and Computer Crimes

A hacker is an individual who intends to gain unauthorized access to a computer system. The term
cracker is used to denote hackers with criminal intent.

- Spoofing and sniffing: Hackers attempting to hide their true identities often spoof, or
misrepresent, themselves by using fake email addresses or masquerading as someone else.
Spoofing may also involve redirecting a web link to a different address. A sniffer is a type of
eavesdropping program that monitors information travelling over a network.

- Denial of service attacks: When hackers flood a network server with many thousands of false
communications or requests for services to crash the network.

- Computer crime: Most hacker activities are criminal offenses, and the vulnerabilities of systems
we just described makes them targets for other types of computer crimes. A computer crime is
defined as any violations of criminal law that involve a knowledge of computer technology for
their prosecution.

- Identity theft: With the growth of the Internet and e-commerce, identity theft has become a major
concern. Identity theft is a crime in which an imposter obtains key pieces of personal information
(social security number, credit card number, etc.) to impersonate someone else. The information
is mostly used to obtain credit, merchandise, or services in the name of the victim.

Internal Threats: Employees

We tend to think the security threats to a business originate outside the organization. In fact,
company insiders pose serious security problems. Studies have found that user lack of knowledge
is the single greatest cause of network security breaches. Many employees forget their passwords
to access computer systems or allow coworkers to use them, which compromises the system.
Insiders bent on harm have also exploited their knowledge of the company to break into corporate
systems, including those running in the cloud.

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 Chapter 10
Why E-commerce is Different
E-commerce has many unique features including the following:
- Ubiquity: in traditional commerce, the market place is physical (you have to visit to buy).
E-commerce is ubiquitous, meaning that it is available online everywhere and at all times.
- Global reach: e-commerce technology permits commercial transaction to cross cultural and
national boundaries. The potential market size is almost equal to the size of the world.
- Universal standards: the standards of the Internet used in e-commerce are universal
standards. Any computer or software in any place in the world can communicate with any
other one.
- Richness: refers to the complexity and content of a message. The web permits to deliver
rich commercial messages with text, audio, video, and animation.
- Interactivity: e-commerce technologies are interactive, they allow for two-way
communication between merchant and consumer like face-to-face communication.
- Information density: the Internet and the Web increase the information density, total amount
and quality of information available. Price and cost transparency refers to the ease with
which consumers can find a variety of prices in the market with their related costs.

- Personalization/Customization: merchants can target their marketing messages to specific

target customers by adjusting the message according to the target behavior and preferences.
E-commerce also allow customization where customers can change the delivered product
or service to their convenience.

Types of E-commerce

The three major electronic commerce categories are business-to-consumer (B2C) e-commerce,
business-to-business (B2B) e-commerce, and consumer-to-consumer (C2C) e-commerce.

- Business-to-consumer (B2C) electronic commerce involves retailing products and services

to individual shoppers. Amazon, Walmart, and Apple Music are examples of B2C e-
commerce.

- Business-to-business (B2B) electronic commerce involves sales of goods and services

among businesses. Elemica’s website for buying and selling chemicals and energy is an
example of B2B e-commerce.

- Consumer-to-consumer (C2C) electronic commerce involves consumers selling directly to

consumers. For example, eBay, the giant web auction site, enables people to sell their goods
to other consumers by auctioning their merchandise off to the highest bidder or for a fixed
price.
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 E-commerce Business Models
- Portal: gateways to the web and often defined as those sites that users set as their home
pages. It also can be defined as a search engine such as Google. Portals offer Web search
tools as well as integrated content and services (mail, news, instant messaging…).

- E-tailer: Online retail stores in all sizes (like Amazon, Ali express…). Customers connect
to e-tailers online through the Internet. They provide low-cost shopping 24 hours over 7
days.
- Content provider: content is defined as to include all forms of intellectual properties
(tangible and intangible products of the mind for which the creator claims property rights).

- Transaction broker: sites that process transactions for consumers normally handled in person
are called transaction brokers (mostly for financial services).

- Market creator: sites that build a digital environment in which buyers and sellers can meet
for business transactions (Airbnb).

- Service Provider: offer services online like data backup, photo sharing, etc. Software is no
longer a physical product but rather it became a service that can be shared online.

- Community provider: sites that create a digital online environment where people with
similar interests can transact (buy and sell), share ideas, interests, photos, videos…

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