Management Information Systems: Solving Business Problems with Information Technology Part One: Business Operations

1. Management Information Systems: Solving Business Problems with Information Technology Part One: Business Operations Chapter Four: Security, Privacy, and Anonymity Prof. Gerald V. Post Prof. David L. Anderson

2. The Growth of Electronic Commerce • Business-to-Business • Includes up and down stream transactions that can enhance channel coordination and customer relationships • Business-to-Consumer • Encompasses all interaction between the customer and the organization • Open Marketspace • Connects business, partner, and consumer

3. Web-Based Commerce Model Manufacturer/ Supplier Customers Direct Marketspace Business-to-Business Business-to-Consumer Intermediary

4. Operating Effectively in the Business-to-Consumer Boundary • Leverage Firm’s Logistical System • Price and Manage Online Transactions • Optimize Communication to Key Consumer Markets • Achieve Excellence through Service

5. Develop Business Partnerships • Establish Business-to-Business Relationships to Sell Competitively to Customers • Strengthen the Value Chain • Provide Value through Communication • Optimize Business-to-Business Service

6. Virtual Interconnectivity • Sell in a Virtual World • Stay Real or Become Virtual • Communicate with a Community • Provide Value-Add Services in the Marketspace

7. Opportunities and Threats of End-Run Strategies • Odd Person Out • Establish Place in Value Chain • Compare Information in a Virtual World • Optimize the Service Offering Across Partner Organizations

8. Managerial Issues for Security • Technical • Societal • Economic • Legal • Behavioral • Organizational/Managerial

9. Managerial Issues for Security • Technical • How will Security be Implemented? • What protocols will be the standards of future electronic commerce? • What are the future technologies used to “wire” people and households?

10. Managerial Issues for Security • Societal • How will the privacy of individuals be protected? • How will consumer data be used? • Will consumer data be misused? • How do user perceptions of issues reflect reality?

11. Managerial Issues for Security • Economic • How will electronic and physical markets differ? • Will economic theories succeed as instantaneous access to information emerges? • What will be the price of information?

12. Managerial Issues for Security • Legal • Should governments continue to subsidize the internet? • How will real world laws apply to the legality of virtual sites? • Who is liable for information accuracy?

13. Managerial Issues for Security • Behavioral • How satisfied will users be with virtual experiences compared to those in the real world? • How will a sense of community and social needs be represented through E-Commerce? • What are the characteristics of early adopters of E-Commerce?

14. Managerial Issues for Security • Organizational/Managerial • What are the differences between managing an E-commerce business and a more traditional one? • How will the organization of the firm change as E-commerce becomes more prevalent? • What products lend themselves to success with E-Commerce?

15. Managerial Issues for Security • Technical • Societal • Economic • Legal • Behavioral • Organizational/Managerial

16. Strategic SecurityLeverage Paradigm Change the Game Change the Game Competitive Position Competitive Position Nature of Conflict; Terms of Competition Strategic Leverage Objectives Strategies Tactics

17. Systems DevelopmentLifecycle Obsolete Solution Problem to be Solved Planning New, Related Problem or Requirement Analysis Support New implementation Alternative or Requirement Implementation Error (bug) Problem Understanding and Solution Requirements Implemented Solution Design Implementation Acceptable Solution Statement

18. Systems Planning Elements • People • Users, Management, Information Specialists • Data • How it is captured, used, and stored • Activities • Automated and Manual • Business and Information Applications • Networks • Where data is stored and processed • How data is exchanged between different locations • Technology • hardware and software used

19. Electronic CommerceBuilding Block Systems Owners Systems Users Systems Designers Systems Builders

20. Differentiation versus Cost Leadership T1 Cost Differentiated Player Sustainable Premium Technology Curve Cost Leader Minimum or Market-Required Quality Quality

21. Is Cost Leadership Sustainable? T1 T2 Cost Differentiated Player Sustainable Premium New Technology Curve Old Technology Curve Cost Leader Minimum or Market-Required Quality Quality

22. Industry/Company Relationships Industry Structure & Competitive Position Freedom of Maneuver Long-term Objectives, Strategic Direction Detailed Strategies and Tactics

23. Break-Even Point Total Revenue Revenue and Costs Profit Profit Total Costs Fixed Costs Fixed Costs Sales Break-Even Volume

24. Decision Trees Probability Decision Point

25. Efforts to Categorizethe Unknown Uncertainty Complexity Instability

26. Variables Cost Time Risk

27. Barriers to Information Security Sources • Economies of Scale • Economies of Scope • Product Differentiation • Capital Requirements • Cost Disadvantages • Independent of Size • Distribution Channel Access • Government Policy

28. Four Generic Approaches Lose Win Win/Win Win/Lose or Cooperative Equilibrium Win Lose Win/Lose or Cooperative Equilibrium Lose/Lose

29. Structure Defines the Industry War Lose/Lose • Total Industry Profits are Very Low, Zero, or Negative • Industry Revenues are Declining, or, at best, steady • Product Technology is at or past its peak

30. Win/Win • Total Industry Revenues and Profits are Growing Rapidly • Numerous Players of All Sizes • Products and Services are not Standardized

31. Win/Lose • Total Industry Revenues and/or Profits are Constant or are Growing very Slowly • Significant Economies of Scale in Production, Distribution, and/or Promotion • Number of Firms Participating in the Industry is Limited and Stable • Individual Participants have, or can obtain, Information Regarding the Relative Positions of the Players

32. Structure Defines the Terms of Competition • Wasting Resources • generic advertising rather than focusing on specific market segments • Precipitating Unwanted Warfare • Causing a full-scale price war when only brand repositioning was necessary • Failing to Anticipate and Adapt to Changes • Following historical patterns • Underspending on Advertising

33. Structure Defines Maneuver • Standard or Dominant Product Emerges • Distribution Channels Limit Firm’s Ability to Determine which Channels to Select • Target and Market Niches Become More Difficult to Defend • Substitutes Limit Price Increases which Requires Increase in Advertising Expenditure

34. Two Levels of Planning • Systems Planning • Gives Managers, Users, and Information Systems Personnel Projects • Establishes what should be done • Sets a budget for the total cost of these projects • Systems Project Planning • Setting a plan for the development of each specific systems project

35. Systems Professional Skills • Systems Planning • Form project team after proposed systems project is cleared for development • Systems Analysis • Business Systems Analysts knowledgeable in business • General Systems Design • Business Systems Analysts • Systems Evaluation and Selection • Business Systems Analysts • Detailed Systems Design • Wide Range of Systems and Technical Designers • Systems Implementation • Systems analysts, programmers, and special technicians

36. Effective Leadership Style • Autocratic Style • Crisis-Style Management • Used to Correct Major Problem, such as Schedule Slippage • Democratic Style • Team-oriented Leadership • Gives each team member the freedom to achieve goals which he/she helped set • Laissez-Faire Style • Highly-motivated, Highly-Skilled Team Members • People who work best alone

37. Project Management Skills • Planning • States what should be done • Estimates how long it will take • Estimates what it will cost • Leading • Adapts to dynamics of enterprise and deals with setbacks • Guides and induces people to perform at maximum abilities • Controlling • Monitors Progress Reports and Documented Deliverables • Compares Plans with Actuals • Organizing • Staffs a Systems Project Team • Brings together users, managers, and team members

38. CASE/Frameworks • Computer-Aided Systems and Software Engineering • Increase Productivity of Systems Professionals • Improve the Quality of Systems Produced • Improve Software Maintenance Issue

39. CASE/Frameworks • Includes: • workstations • central repository • numerous modeling tools • project management • Systems Development Life Cycle Support • Prototyping Applications • Software Design Features

40. Central Repository for Models • Models Derived from Modeling Tools • Project Management Elements • Documented Deliverables • Screen Prototypes and Report Designs • Software Code from Automatic Code Generator • Module and Object Libraries of Reusable Code • Reverse Engineering, Reengineering, and Restructuring Features

41. Software Maintenance • Reverse Engineering • Extract original design from spaghetti-like, undocumented code to make maintenance change request • Abstract meaningful design specifications that can be used by maintenance programmers to perform maintenance tasks • Reengineering • Examination and changing of a system to reconstitute it in form and functionality • Reimplementation • Restructuring • Restructures code into standard control constructs • sequence, selection, repetition

42. Data Design • Define all the entities to be dealt with and the relationships between them • Transform the conceptual design into logical design wherein all the views are combined and all the resulting data elements are defined and the data structure is syntactically and semantically determined • Normalize this logical design for mathematically minimized redundancy and maximized integrity • Transform this logical design to a physical design where the underlying RDBMS, hardware, and use patterns are taken into account • Develop the SQL DDL code specific to each RDBMS vendor’s product is generated

43. Business Rules For Data • Basic selection of what data elements are of interest, what are their characteristics (data type and acceptable range - also called syntactic structure) • How they are related to, or dependent on, each other in a business sense (key, foreign key and referential constraint rule - also called the semantic structure) • Data Integrity Rules

44. Advantages of Data Analysis • “slice and dice” dynamic query support • standard high-level access language (SQL) • minimum data redundancy • self-protecting data integrity • no insert, delete and update anomalies

45. Relational Model • The Relational Model for data design is the foundation of the relational database and the industry that produces the “engines” that run them. • It puts data design (and data modeling) on a formal, mathematical footing.

46. Relationship Types a). One-to-one (1:1): means that an occurrence if one OT uniquely determines an occurrence of other OT - and vice-versa b). One-to-many (1:n): means that an occurrence of one OT determines an occurrence of the other OT - but not vice-versa c). Many-to-many (n:m):means that an occurrence of one OT can be related to many occurrences of other OT - and vice-versa

47. Data Rationalization • Identification of data synonyms and homonyms across multiple and disparate data sources and the creation of a map that points back to their original sources.

48. Data Access Gateway • sits between end users (usually in PC networks) and a legacy database • accepts data read requests (expressed as SQL statements) • converts the requests to legacy access method instructions • provides the resulting data to the users • data flow is one-way read-only.

49. Structured Data Analysis • the functions or activities which are to be handled by the system • the external entities which interact with the system • the logical data stores, and • the data flows among all the the above • Data flow diagrams (DFD) are used to diagrammatically describe the elements.

50. Entity Relationship Diagrams (ERDs) • A method of documenting and visualizing a conceptual data model.