Unit 1 Key Terms: Business intelligence (BI) provides historical, current, and predictive views of business operations and environments and gives organizations a competitive advantage in the marketplace. Computer literacy: skill in using productivity software, such as word processors, spreadsheets, database management systems, and presentation software, as well as having a basic knowledge of hardware and software, the Internet, and collaboration tools and technologie Data: consists of raw facts and is a component of an information system. Database: a collection of all relevant data organized in a series of integrated files. Five Forces Model: analyzes an organization, its position in the marketplace, and how information systems could be used to make it more competitive. The five forces include buyer power, supplier power, threat of substitute products or services, threat of new entrants, and rivalry among existing competitors. Information: consists of facts that have been analyzed by the process component and is an output of an information system. Information literacy: understanding the role of information in generating and using business intelligence. Information technologies: support information systems and use the Internet, computer networks, database systems, POS systems, and RFID tags. Management information system (MIS) an organized integration of hardware and software technologies, data, processes, and human elements designed to produce timely, integrated, relevant, accurate, and useful information for decision-making purposes. Process: component of an information system generates the most useful type of information for decision making, including transaction-processing reports and models for decision analysis. Transaction-processing systems (TPSs) focus on data collection and processing; the major reason for using them is cost reduction. Unit 1 Summary Notes: Discuss common applications of computers and information systems. These include tasks such as using computers and office suite software to do homework or using computers to grade exam answers and generate detailed reports comparing the performance of each student in a class. 1-2Explain the differences between computer literacy and information literacy. Computer literacy is skill in using productivity software, such as word processors and spreadsheets. Information literacy is understanding the role of information in generating and using business intelligence. 1-3Define transaction-processing systems (TPSs). They focus on data collection and processing; the major reason for using them is cost reduction. This may include payroll processing or ATMs in a bank. 1-4Define management information systems. MISs are organized integration of hardware and software technologies, data, processes, and human elements designed to produce timely, integrated, relevant, accurate, and useful information for decision-making purposes. 1-5Describe the four major components of an information system. They include data, database, process, and information. 1-6Discuss the differences between data and information. Data consists of raw facts and information consists of facts that have been analyzed by the process component and are used for effective decision making. 1-7Explain the importance and applications of information systems in functional areas of a business. Information is the second most important resource (after the human element) in any organization. Timely, relevant, and accurate information is a critical tool for enhancing a company’s competitive position in the marketplace and managing the four Ms of resources: manpower, machinery, materials, and money. 1-8Analyze how information technologies are used to gain a competitive advantage. They are used to analyze and apply Porter’s three strategies and the Five Forces Model for successfully competing in the marketplace. 1-9Apply the Five Forces Model and strategies for gaining a competitive advantage. The Five Forces Model and strategies could be used by both new businesses as well as established businesses. If buyer power is high, then the business should deploy information technology in order to make it difficult for customers to switch. If supplier power is high, then the business should continue to use information technology in order to maintain this power. The same approach could be applied to the other forces in the model. 1-10Review the IT job market. Broadly speaking, IT jobs fall into the following categories: operations and help desk, programming, systems design, Web design and Web hosting, network design and maintenance, database design and maintenance, robotics and artificial intelligence, and so forth. 1-11Summarize the future outlook of information systems. The future outlook examines several different factors that impact design and utilization of information systems such as cost of hardware and software, artificial intelligence, computer literacy, and information privacy and security. Unit 2 Key Terms: Application software: can be commercial software or software developed in-house and is used to perform a variety of tasks on a personal computer. Arithmetic logic unit (ALU): performs arithmetic operations (+, −, ∗, /) as well as comparison or relational operations (<, >, =); the latter are used to compare numbers. Assembly language: the second generation of computer languages, is a higher-level language than machine language but is also machine dependent. It uses a series of short codes, or mnemonics, to represent data or instructions. Bus: is a link between devices connected to the computer. It can be parallel or serial, internal (local) or external. Cache RAM: resides on the processor. Because memory access from main RAM storage takes several clock cycles (a few nanoseconds), cache RAM stores recently accessed memory so the processor is not waiting for the memory transfer. Central processing unit (CPU): is the heart of a computer. It is divided into two components: the arithmetic logic unit (ALU) and the control unit. Class: defines the format of the object and the action that it performs. Cloud storage: Used for online storage and backup, cloud storage involves multiple virtual servers that are usually hosted by third parties. Customers buy or lease storage space from third parties based on their current or future needs. Computer: is a machine that accepts data as input, processes data without human intervention by using stored instructions, and outputs information. Control unit: tells the computer what to do, such as instructing the computer which device to read or send output to. CPU case: is also known as a computer chassis or tower. It is the enclosure containing the computer’s main components. Disk drive: is a peripheral device for recording, storing, and retrieving information. Fifth-generation languages (5GLs) use some of the artificial intelligence technologies, such as knowledge-based systems, natural language processing (NLP), visual programming, and a graphical approach to programming. These languages are designed to facilitate natural conversations between you and the computer. Fourth-generation languages (4GLs): use macro codes that can take the place of several lines of programming. The commands are powerful and easy to learn, even for people with little computer training. High-level languages: are machine independent and part of the third generation of computer languages. Many languages are available, and each is designed for a specific purpose. Input devices: send data and information to the computer. Examples include a keyboard and mouse. machine language: the first generation of computer languages, consists of a series of 0s and 1s representing data or instructions. It is dependent on the machine, so code written for one type of computer does not work on another type of computer. magnetic disk: made of Mylar or metal, is used for random-access processing. In other Magnetic tape: is made of a plastic material and stores data sequentially. Main memory: stores data and information and is usually volatile; its contents are lost when electrical power is turned off. It plays a major role in a computer’s performance. Motherboard: is the main circuit board containing connectors for attaching additional boards. It usually contains the CPU, basic input/output system (BIOS), memory, storage, interfaces, serial and parallel ports, expansion slots, and all the controllers for standard peripheral devices, such as the display monitor, disk drive, and keyboard. Network-attached storage (NAS): is essentially a network-connected computer dedicated to providing file-based data storage services to other network devices. Object: an item that contains both data and the procedures that read and manipulate it. object-oriented programming (OOP): language is organized around a system of objects that represent the real world as opposed to a series of computational steps used in traditional languages. output devices: is capable of representing information from a computer. The form of this output might be visual, audio, or digital; examples include printers, display monitors, and plotters. random access memory (RAM): is volatile memory, in which data can be read from and written to; it is also called read-write memory. read-only memory (ROM): is nonvolatile; data cannot be written to ROM. redundant array of independent disks (RAID): system is a collection of disk drives used for fault tolerance and improved performance and is typically found in large network systems. Secondary memory: which is nonvolatile, holds data when the computer is off or during the course of a program’s operation. It also serves as archival storage. Server: a computer and all the software for managing network resources and offering services to a network. storage area network (SAN): a dedicated high-speed network consisting of both hardware and software used to connect and manage shared storage devices, such as disk arrays, tape libraries, and optical storage devices. Module 2 Summary: 2-1: Define a computer system and describe its components. A computer is a machine that accepts data as input, processes data without human intervention by using stored instructions, and outputs information. A computer system consists of hardware and software. 2-2: Discuss the history of computer hardware and software. Computer hardware has gone through five generations: vacuum tube, transistors, integrated circuits, miniaturization, and parallel processing. Computer software has gone through five generations as well: machine language, assembly language, high-level language, fourthgeneration language, and natural language processing. 2-3: Analyze the impact of the three factors distinguishing the computing power of computers. Computers draw their power from three factors that far exceed human capacities: speed, accuracy, and storage and retrieval capabilities. 2-4: Summarize the three basic computer operations. Computers can perform three basic tasks: arithmetic operations, logical operations, and storage and retrieval operations. All other tasks are performed using one or a combination of these operations. 2-5: Discuss the types of input, output, and memory devices. To use a computer and process data, three major components are needed: input (keyboard), output (printer), and memory devices (main memory and secondary memory). 2-6: Explain how computers are classified and their business applications. Usually, computers are classified based on cost, amount of memory, speed, and sophistication. Using these criteria, computers are classified as subnotebooks, notebooks, personal computers, minicomputers, mainframes, or supercomputers. 2-7: Apply knowledge of two major types of software and their use in a business setting. It can be classified broadly as system software and application software. For example, Microsoft Windows is the OS for most PCs and is system software. Application software is used to perform specialized tasks. Microsoft Excel, for example, is used for spreadsheet analyses and number-crunching tasks and it is an example of application software. 2-8: List the five generations of computer languages. These are machine language, assembly language, high-level language, fourth-generation language, and natural language processing. 2-9: Define object-oriented programming. An object-oriented programming (OOP) language is organized around a system of objects that represent the real world as opposed to a series of computational steps used in traditional languages. Simplicity and adaptability are among the key features of OOP. Two main parts of an OOP include objects and classes. Unit 3 Key Terms: Allocation- approach to a distributed DBMS combines fragmentation and replication, with each site storing the data it uses most often. Big data- is data so voluminous that conventional computing methods are not able to efficiently process and manage it. Business analytics (BA) uses data and statistical methods to gain insight into the data and provide decision makers with information they can act on. create, read, update, and delete (CRUD) refers to the range of functions that data administrators determine who has permission to perform certain functions. data dictionary- stores definitions, such as data types for fields, default values, and validation rules for data in each field. data-driven Web site- acts as an interface to a database, retrieving data for users and allowing users to enter data in the database. data hierarchy- the structure and organization of data, which involves fields, records, and files. data mart- usually a smaller version of a data warehouse, used by a single department or function. data model- determines how data is created, represented, organized, and maintained. It usually contains data structure, operations, and integrity rules. data warehouse- a collection of data from a variety of sources used to support decisionmaking applications and generate business intelligence. Database- a collection of related data that is stored in a central location or in multiple locations./ a collection of all relevant data organized in a series of integrated files. database administrator (DBA)- found in large organizations, design and set up databases, establish security measures, develop recovery procedures, evaluate database performance, and add and fine-tune database functions. database management system (DBMS)- software for creating, storing, maintaining, and accessing database files. A DBMS makes using databases more efficient. Unit 4 Key Terms: acceptable use policies- a set of rules specifying the legal and ethical use of a system and the consequences of noncompliance. Accountability- refers to issues involving both the user’s and the organization’s responsibilities and liabilities. Business networking ethics- advocates that in order to maintain a business network, not only should the organization provide open and fair access to all authorized users, it should also consider three types of networking, including utilitarian, emotional, and virtuous. Cookies- are small text files with unique ID tags that are embedded in a Web browser and saved on the user’s hard drive. Cybersquatting- is registering, selling, or using a domain name to profit from someone else’s trademark. Deepfakes- fake videos or audio recordings that look and sound just like the real thing. digital divide- Information technology and the Internet have created a digital divide. Computers are still not affordable for many people. The digital divide has implications for education. Fake news- news, stories, or hoaxes created to intentionally misinform or deceive readers. General Data Protection Regulation (GDPR)- covers a series of laws in order to protect European Union (EU) citizens’ personal data including genetic data, health, racial or ethnic origin, and religious beliefs. Green computing- involves the design, manufacture, use, and disposal of computers, servers, and computing devices (such as monitors, printers, storage devices, and networking and communications equipment) in such a way that there is minimal impact on the environment. Intellectual property- is a legal umbrella covering protections that involve copyrights, trademarks, trade secrets, and patents for “creations of the mind” developed by people or businesses. Log files- which are generated by Web server software, record a user’s actions on a Web site. Unit 4 Summary: Discuss information privacy and methods for improving the privacy of information. Defining privacy is difficult, however, most people believe they should be able to keep their personal affairs to themselves and should be told how information about them is being used. One method for improving the privacy of information is to conduct business only with Web sites with privacy policies that are easy to find, read, and understand. 4-2 Explain the general data protection regulation. General data protection regulation (GDPR) covers a series of laws in order to protect EU citizens’ personal data including genetic, health, racial or ethnic origin, and religious beliefs. The GDPR contains 11 modules and 91 articles. 4-3 Explain the privacy issues of e-mail and data collection in a business setting. User education and enforcing the organization’s e-mail policy can significantly reduce the risk of invading privacy and maintaining the confidentiality of e-mail. 4-4 Examine the ethical issues and censorship of information technology. In essence, ethics means doing the right thing, but what is “right” can vary from one culture to another and even from one person to another. As a future knowledge worker, watch your own actions, and make sure you behave both legally and ethically. Be careful about decisions you make that might affect coworkers so you can help maintain an ethical working environment. 4-5 Discuss the principles of intellectual property and issues related to the infringement of intellectual property. Intellectual property is a legal umbrella covering protections that involve copyrights, trademarks, trade secrets, and patents for “creations of the mind” developed by people or businesses. 4-6 Discuss information system issues that affect organizations, including the digital divide, electronic publishing, and the connection between the workplace and employees’ health. Information technology and the Internet have created a digital divide between the information rich and the information poor. Although prices have been decreasing steadily, computers are still not affordable for many people. One common health issue is repetitive typing with thumbs or navigating through various pages and apps, which is causing health issues for many smartphone users called “smartphone thumb.” 4-7 Describe green computing and the ways it can improve the quality of the environment. Green computing involves the design, manufacture, use, and disposal of computers, servers, and computing devices (such as monitors, printers, storage devices, and networking and communications equipment) in such a way that there is minimal impact on the environment. Unit 5 Summary Notes: Understand cybercrime and its impact on the global economy. According to research from Accenture published in 2019, cybercrime could cost companies globally $5.2 trillion over the next five years. The costs will include loss of revenue, stolen identities, intellectual property, and trade secrets as well as the damage done to companies’ and individuals’ reputations. A recent survey indicates that 19 percent of shoppers would abandon a retailer that has been hacked. 5-2 Describe information technologies that could be used in computer crimes. Information technologies can be misused to invade users’ privacy and commit computer crimes. Spyware, adware, phishing, pharming, keystroke loggers, and baiting are just a few examples of information technologies that could be used for this purpose. 5-3 Describe basic safeguards in computer and network security. There are three important aspects of computer and network security: confidentiality, integrity, and availability, collectively referred to as the CIA triangle. In addition, a comprehensive security system must provide three levels of security: Level 1—Front-end servers, Level 2—Back-end systems, and Level 3—The corporate network. 5-4 Identify the nine most common intentional security threats. Intentional computer and network threats include viruses, worms, trojan programs, logic bombs, backdoors, blended threats (e.g., a worm launched by trojan), rootkits, denial-of-service attacks, social engineering. and cryptojacking. 5-5 Describe the nine security measures and enforcement that a comprehensive security system should include. They include biometric security measures, nonbiometric security measures, physical security measures, access controls, virtual private networks, data encryption, e-commerce transaction security measures, computer emergency response team (CERT), and zero trust security. 5-6 Summarize the guidelines for a comprehensive security system including business continuity planning. An organization’s employees are an essential part of the success of any security system, so training employees about security awareness and security measures is important. It should also include business continuity planning, which outlines procedures for keeping an organization operational in the event of a natural disaster or network attack. Chapter 6 Attenuation Bandwidth Bluetooth Broadband Bus topology Centralized processing Centralized routing Client/server model Code Division Multiple Access (CDMA) Communication media Conducted media Controller Convergence Data communication Decentralized processing Digital subscriber line (DSL) Distributed processing Distributed routing Dynamic router Hierarchical topology Local area network (LAN) Mesh topology Metropolitan area network (MAN) Mobile network Modem Multiplexer Narrowband Network interface card (NIC) Network topology N-tier architecture Open Systems Interconnection (OSI) model Packet Protocols Radiated media Ring topology Router Routing Routing table Star topology Static router Throughput Time Division Multiple Access (TDMA) Transmission Control Protocol/Internet Protocol (TCP/IP) Two-tier architecture Wide area network (WAN) Wireless Fidelity (Wi-Fi) Wireless network Worldwide Interoperability for Microwave Access (WiMAX) Describe the major applications of a data communication system. Data communication is the electronic transfer of data from one location to another. An information system’s effectiveness is measured in part by how efficiently it delivers information, and a data communication system is what enables an information system to carry out this function. In addition, because most organizations collect and transfer data across large geographic distances, an efficient data communication system is critical. 6-2Explain the three major components of a data communication system. A typical data communication system includes the following components: sender and receiver devices, modems or routers, and communication medium (channel). 6-3Describe the three major types of processing configurations. During the past 60 years, three types of processing configurations have emerged: centralized, decentralized, and distributed. 6-4Explain the three types of networks. There are three major types of networks: local area networks, wide area networks, and metropolitan area networks. In all these networks, computers are usually connected to the network via a network interface card (NIC), a hardware component that enables computers to communicate over a network. 6-5Describe the five main network topologies. A network topology represents a network’s physical layout, including the arrangement of computers and cables. Five common topologies are star, ring, bus, hierarchical, and mesh. 6-6Explain important networking concepts, including protocols, TCP/IP, routing, routers, and the client/server model. Transmission Control Protocol/Internet Protocol (TCP/IP) is an industry-standard suite of communication protocols. TCP/IP’s main advantage is that it enables interoperability—in other words, it allows the linking of devices running on many different platforms. In the client/server model, software runs on the local computer (the client) and communicates with the remote server to request information or services. 6-7Examine wireless and mobile technologies and networks in a business setting. A wireless network is a network that uses wireless instead of wired technology. A mobile network (also called a “cellular network”) is a network operating on a radio frequency (RF), consisting of radio cells, each served by a fixed transmitter, known as a “cell site” or “base station.” 6-8Describe networking trends such as Wi-Fi, WiMAX, and Bluetooth. Wireless Fidelity (Wi-Fi) is a broadband wireless technology. Information can be transmitted over short distances—typically 120 feet indoors and 300 feet outdoors—in the form of radio waves. Worldwide Interoperability for Microwave Access (WiMAX) is a broadband wireless technology based on the IEEE 802.16 standards. It is designed for wireless metropolitan area networks and usually has a range of about 30 miles for fixed stations and 3–10 miles for mobile stations. Bluetooth, which can be used to create a personal area network (PAN), is a wireless technology for transferring data over short distances (usually within 30 feet) for fixed and mobile devices. 6-9Discuss the importance of wireless security and the five techniques used. There are several techniques for improving the security of a wireless network including SSID (Service Set Identifier), WEP (Wired Equivalent Privacy), EAP (Extensible Authentication Protocol), WPA (Wi-Fi Protected Access), and WPA2 or 802.11i. 6-10Summarize the convergence phenomenon and its applications for business and personal use. In data communication, convergence refers to integrating voice, video, and data so that multimedia information can be used for decision making. In the past, separate networks were used to transmit voice, video, and data, but as the demand for integrated services has increased, technology has developed to meet this demand. Common applications of convergence include e-commerce, entertainment, and video and computer conferencing. Chapter 7 A Connected World Advanced Research Projects Agency Network (ARPANET) Blog Directories Discussion groups Domain Name System (DNS) Extranet Hypermedia Hypertext Hypertext Markup Language (HTML) Industrial IoT (IIoT) Instant messaging (IM) Internet Internet backbone Internet of Everything (IoE) Internet of Me (IoM) Internet of Things (IoT) Internet telephony Intranet Navigational tools Newsgroups Podcast RSS (Really Simple Syndication) feeds Search engines Smart home Social networking Uniform resource locators (URLs) Voice over Internet Protocol (VoIP) Wiki Module Summary 7-1: Describe the makeup of the Internet and the Web. The Internet is a worldwide collection of millions of computers and networks of all sizes. The term Internet is derived from the term internetworking, which means connecting networks. Simply put, the Internet is a network of networks. 7-2: Discuss navigational tools, search engines, and directories. Navigational tools are used to travel from Web site to Web site (i.e., “surf” the Internet). Search engines allow you to look up information on the Internet by entering keywords related to your topic of interest. Directories are indexes of information, based on keywords embedded in documents, that allow search engines to find what you are looking for. Some Web sites (such as Yahoo!, a part of Verizon now) also use directories to organize content into categories. 7-3: Describe four common Internet services and how they are used in a business environment. Popular services include e-mail; newsgroups and discussion groups; instant messaging; and Internet telephony. 7-4: Explain business applications of the Internet. Popular Web applications include tourism and travel, publishing, higher education, real estate, employment, financial institutions, software distribution, health care, and politics. 7-5: Describe the role of intranets in various business functions. An intranet is a network within an organization that uses Internet protocols and technologies (e.g., TCP/IP, which includes File Transfer Protocol [FTP], SMTP, and others) for collecting, storing, and disseminating useful information that supports business activities, such as sales, customer service, human resources, and marketing. Intranets are also called corporate portals. 7-6 Describe the role of extranets in various business functions. An extranet is a secure network that uses the Internet and Web technologies to connect intranets of business partners so communication between organizations or between consumers is possible. Extranets are considered a type of interorganizational system (IOS). These systems facilitate information exchange among business partners. 7-7 Analyze Web trends and their impact on business. We have seen three generations of Web applications: Web 1.0 (static content), Web 2.0 (dynamic content), and Web 3.0 (Semantic Web). Key features of Web 3.0 include Semantic Web, artificial intelligence, 3D graphics, connectivity, and ubiquity. The Semantic Web provides personalization that allows users to access the Web more intelligently. 7-8 Analyze the Internet of Everything and its business applications. The Internet of Everything (IoE) refers to a Web-based development in which people, processes, data, and things are interconnected via the Internet using various means, such as RFID devices, barcodes, wireless systems (using Bluetooth and Wi-Fi), and QR codes. The Internet of Things (IoT) refers to the physical objects that are connected to the Internet and, therefore, to all the other physical objects. The Internet of Me refers to a subset and personalized Internet that gathers and processes personalized information for a given user from the entire Internet, including IoT devices. Define e-commerce and describe its advantages, disadvantages, and business models. E-commerce is buying and selling goods and services over the Internet. E-business encompasses all the activities a company performs in selling and buying products and services using computers and communication technologies. Some of the advantages of e-commerce include creating better relationships with suppliers, customers, and business partners and creating “price transparency.” 8-2Explain the major categories of e-commerce. They include C2C, C2B, C2G, B2C, B2B, B2G, G2C, G2B, and G2G. 8-3Describe the five major activities of the business-to-consumer e-commerce cycle. They include information sharing, ordering, payment, fulfillment, and service and support. 8-4Summarize the four major models of business-to-business e-commerce. They include seller-side marketplace, buyer-side marketplace, third-party exchange marketplace, and trading partner agreements. 8-5Describe mobile-based and voice-based e-commerce. Mobile commerce (mcommerce) is using handheld devices, such as smartphones or wireless devices, to conduct business transactions. Voice-based e-commerce relies on voice recognition and text-to-speech technologies. 8-6Explain four supporting technologies for e-commerce. They include electronic payment systems, Web marketing, mobile marketing, and search engine optimization. 8-7Explain social commerce and the reasons for its popularity. Social commerce is a subset of e-commerce that is influenced by social networks and other online media. The reason for its popularity are because more than two billion consumers are using social networks such as Facebook, Instagram, Twitter, Pinterest, and Tumblr, and this number increases daily. 8-8Explain hypersocial organizations and their growing popularity. Hypersocial organizations are companies that leverage social media in order to turn the business into a social process and, as a result, are better able to connect with their customers and sell more products and services. Hypersocial organizations share information through many different avenues. The most popular is direct social media interaction, such as Facebook posts, Twitter pages, and Instagram. 8-9Explain social media information systems. A social media information system (SMIS) is an information system that includes all the components like other information systems (discussed in Module 1) such as hardware, software, people, and procedures that support content sharing among its members or users. Three additional components of a SMIS include application (app), user communities, and sponsors. Key Terms Advertising model Brokerage model Business-to-business (B2B) Business-to-consumer (B2C) Buyer-side marketplace Click-and-brick e-commerce Consumer-to-business (C2B) Consumer-to-consumer (C2C) Cross-channel Digital wallet E-business E-cash E-check E-commerce E-government (or just “e-gov”) Electronic payment E-procurement Horizontal market Hypersocial organizations Infomediary model Merchant model Micropayments Mixed model Mobile commerce (m-commerce) Multi-channel Omnichannel Organizational (intrabusiness) e-commerce PayPal Search engine optimization (SEO) Seller-side marketplace Smart card Social commerce Social media information system (SMIS) Subscription model Third-party exchange marketplace Trading partner agreements Value chain Venmo Vertical market Voice-based e-commerce Web marketing