Chapter 3: Ethics and Security

1. Provide an IT example that relates to the ethical issues for the ideas of privacy, accuracy, property, and accessibility.
Privacy Issues: involves collectin, storing and disseminating information about individuals. E.g Electronic surveillance.
Accuracy Issues: involves the authenticity, fidelity, and accuracy of information that is collected and processed.
Property Issues: involvet he ownership and value of infomration.
Accessibility Issues: who should have access to the information and whether they should have to pay for the access.

2. What are the 5 general types of IT threats? Provide an example for each one.
· Unintentional Acts: those with no malicious intent, are of three types: human errors (most serious), deviations in the quality of service by service providers, and environmental hazards. E.g. Higher-level employees have access to corporate data, HR have access to sensitive personal information about employees.
· Natural Disasters: Floods, earthquakes, hurricanes, lightening and fire can cause loss of systems and data.
· Technical Failure: include problems with hardware and software. E.g. crash of a hard disk drive. Software errors are bugs – in computer programs.
· Management Failures: a lack of funding for information and security efforts and lack of interest in those efforts. Will cause the information security of the organisation to suffer.
· Deliberate Acts: trespass, software attacks, theft of equipment or information, sabotage or vandalism, cyber terrorism.

3. Describe/discuss three types of software attack and a problem that may result from them.
· Virus: segment of computer code that performs malicious actions by attaching to another computer program.
· Worm: segment of computer a=code that performs malicious actions that will replicate, or spread by itself (without requiring another computer program).
·Password/ Dictionary Attack: attacks that try combinations of letters and numbers that are most likely to succeed, such as all words from a dictionary.

4. Describe the four major types of security controls in relation to protecting information systems.
· Physical Controls: prevent unauthorized individuals from gaining access to a company’s facilities. E.g. walls, fencing, locks, badges, guards and alarm systems.
· Access Controls: restrict unauthorized individuals from using information resources. These controls involve two major functions: authentication (determines the identity of the person requiring access) and authorization (which actions, rights or privileges the person has, based on verified identity). Organisation use many methods to identify authorized personnel: something the user is, something the user has, something the user does, and something the user knows.
· Communication controls: secure the movement of data across networks. Communication controls consist of firewalls (prevents specific info from moving between un-trusted networks), intrusion-detection systems (detect all types of malicious network traffic and computer usage that cannot be detected by firewall), encryption (converting a original message into a form that cannot be read by anyone except the intended receiver), and virtual private networking (VPN – a private network that uses the internet (public network) to connect users).
· Application Controls: security counter-measures that protect specific applications. Categories: input (edit input data for errors before it I processed), processing (match employee time cards with a master payroll file and report missing or duplicate time cards. Also balance the total number of transactions processed with the total number of transactions input or output) and output controls (documentation specifying that authorized recipients have received their reports, paychecks or other critical documents).

5. What is information system auditing?
An examination of information systems, their inputs, outputs and processing. Installing controls is necessary but not sufficient to provide adequate security.

6. What is the difference between authentication and authorization and why are they important to e-Commerce/give an example of their relevance to e-Commerce.
· Authentication is a process that determines the identity of the person requiring access.
· Authorization is a process that determines which actions, rights or privileges the person has, based on verified identity.
They are important because they are a form of security to protect the organisation.

Technology Guide 2: Comupter Software

1. What are main differences/distinction between system software and application software?
Systems software: is a set of instructions that serves primarily as a intermediary between computer hardware and application programs. Systems software provides important sef regulatory functions for computers, such as loading itself when the computer is first turned on and providing commonly used sets of instructions for all applications. Systems programming refers to both the creation and maintenance of systems software.
Application software: is a set of computer instructions that provide more specific functionality to a user. That functionality may be broad, such as general word processing, or narrow, such as an organisation’s payroll program. Essentially, an application program applies a computer to a certain need. Application programming refers to both the creation and modification and improvement of application software. Application software may be propriety or off-the-shelf.

2. What are the two main types of system software?
System Control Programs: control use of the hardware, software and data resources if a computer system. The main system control program is a operating system (OS). The OS supervises the overall operation of the computer. THE OS manages the program/s (also called jobs or tasks) running on the processor at a given time. OS systems provide various types of program management, such as multitasking, multithreading, and multiprocessing.
System Support Programs: support the operations, management, and users of a computer system by providing a variety of support services. E.g. system utility programs, performance monitors and security monitors.

3. What is the difference between proprietary and open source software? What considerations should be made when a business selects either software?
Propriety application software addresses a company’s specific or unique business need. This type of software may be developed in-house by the organisation’s information systems personnel, or it may be commissioned from a software vendor.
Open source software is software whose source code is available at no cost to developers or users.

4. What are some of the legal issues involved in acquiring and using software in most businesses/organizations?
-Software licensing is an issue for organisations. Copying software is illegal. As the number of desktop computers continues to increase and businesses continue to decentralise, it becomes more and more difficult for IS managers to supervise their software assets.

5. What is meant by SaaS? Name some examples of this software.
Software-as-a-Service (SaaS): is a method of delivering software in which a vendor hosts the applications. Customers access these applications over a network, typically the internet. Customers don’t own the software but pay for using it. E.g. Google Apps Premier Edition, which icludes Desktop, Docs and Speraadsheets, Base and Calander, is competing with Microsft Office in office productivity applications.

Technology Guide 1: Computer Hardware

1. What is computer hardware and what are the major hardware components?
· A set of devices (for example, processor, monitor, keyboard, printer) that together accept data and information, process them, and display them.
· It can be described as the physical equipment used for the input, processing, output and storage activities of a computer system. E.g. mouse, monitor, printer, PC’s servers.

2. What is Moore's Law/what does it mean in relation to computers?
Innovations in chip designs are coming at a faster and faster rate as described by Moore’s Law. Moore predicted that microprocessor complexity would double approximately every two years.
Moore’s Law is a result of:
· Increasing miniaturization of transistors
· Making the physical layout of the c hip’s components as compact and efficient as possible
· Using materials for the chip that improve conductivity (flow) of electricity
· Targeting the amount of basic instructions programmed into the chip.
· From a business perspective this means that over time – price comes down but PC capability and speed goes up.

3. In basic terms, describe how a microprocessor functions.
The CPU performs the actual computation or “number crunching” inside any computer. The CPU is a microprocessor (commonly referred to as chips) is made up of millions of microscopic transistors embedded in a circuit on a silicon wafer chip.

Microprocessor has different parts which perform different functions:
· The control unit sequentially accesses program instructions, decodes them, and controls the flow of data to and from the ALU, registers the caches, primary storage, secondary storage, and various output devices.
· The Arithmetic-logic unit (ALU) performs the mathematic calculations and makes logical comparisons.
· The registers are high-speed storage areas that store very small amounts of data and instructions for short periods of time.

How the CPU works:
In the CPU, inputs enter and are stored until needed. When needed they re retrieved and processed, and the output is stored and then delivered somewhere.
· The inputs consist of data and brief instructions about what to do with the data. These instructions come from software in other parts of the computer (keyboard). The inputs are stored in registers until they are sent to the next step in the processing.
· The control units directs the flow of data and instructions within the chip
· The ALU receives the data and instructions from the registers and makes the desired computation. These data and instructions have been translated into binary form, which is only 0’s and 1’s. The CPU can process the binary data.
· The data in their original form and the instructions are sent back to storage registers and they are sent back to a storage place outside the chip such as the computer’s hard drive. Meanwhile, the transformed data go to another register and then on to other parts of the computer (to the monitor for display or to storage).
What factors determine the speed of the microprocessor?

4. What factors determine the speed of the microprocessor?

Processing Speed depends on:

-Clock Speed - the present speed of the clock taht times all chip activities, measured in MHZ (million sof cycles per second) or GHz (billions of cycles pers second).

-Word Length- the number of binary units or bits (o and 1's) that the CPU can process in one machine cycle.

-Bus Width- the wider the bus, the more the data can be moved and the faster the processing.

5. What are the four main types of primary storage?
Primary storage, or main memory, stores three types of information for brief periods of time;
1. Data processed by the CPU,
2. Instructions for the CPU as to how to process the data and
3. Operating system programs that manage various aspects of the computers operation.
Registers: are part of the CPU. They have the least capacity, storing extremely limited amounts of instructions and data only immediately before and after processing.
Random Access Memory (RAM): is the part of primary storage that holds a software program and small amounts of data for processing.
Cache Memory: is a type of high-speed memory that enables the computer to temporarily store blocks of data that are used more often and that a processor can access more rapidly than main memory (RAM).
Read-only memory: most of us have lost data due to a computer crash or power failure. What is lost is whatever is in RAM, cache or the registers at the time, because these types of memory are volatile. Therefore, we need greater security when we are storing some types of critical data or instructions. ROM is type of chip and is the place where certain critical instructions are safeguarded. ROM is nonvolatile, so it retains these instructions when the power to the computer is turned off.

6.What are the main types of secondary storage?
Secondary storage is designed to store very large amounts of data for extenede periods of time.
· Magnetic media: magnetic tape is kept on a large open reel or in a smaller cartridge or cassette. Magnetic disks (hard drives) are a form of secondary storage on magnetized disk that is divided into tracks and sectors that provide addresses for various pieces of data. More rapid access to data than magnetic tape.
· Optical Storage Devices: do not store data via magnetism. Rather, a laser reads the surface of a reflective plastic platter. Slower than magnetic hard drives. E.g. CD-ROM (compact disk read-only memory), DVD (digital video disk).
· Flash memory devices: is non volatile computer memory that can be electronically erased and reprogrammed. The technology can be built into a system or installed on a personal computer card. It is a electronic storage device that contain no moving parts and use 30 times less battery power than hard drives. Flash devices are also smaller and more durable than hard drives.

7. How does primary storage differ from secondary storage in terms of speed cost and capacity?
Secondary storage
· is cheaper than primary storage
· It can take place on a variety of media, each with its own technology.
· The overall trends in secondary storage are toward more direct access methods, higher capacity with lower costs, and increased portability

Primary Storage:
· Cost: more expensive
· Size: smaller
· Speed faster

8.What are enterprise storage systems?
· Is an independent, external system that includes two or more storage devices.
· Provide large amounts of storage, high performance data transfer, a high degree of availability, protection against loss and sophisticated management tools.

9. Distinguish between human data input devices and source data automation.
- Human Data Entry- devuces such as keyboard, mouse, touch screen and voice recognition.

- Source Data Automation - minimal human intervention (barcode reader). Is transaction based and has greater speed and errors are reduced.

10. What is one new technology that will change how we do things?

Advanced mobile 'Presence Technology'
'Presence' technology allows you to be found on the 'network' - computer, mobile phone, etc. In its current form, presence technology refers simply to instant messaging applications. In 5 years mobile devices will have the ability to continually learn about, and adapt to, your preferences and needs as you commute, work, and travel. For example, your mobile phone will use new IM technology that will ping you about special sales at your favorite department store as you're driving by the store or strolling through the mall. In a work setting, if you enter a meeting room with several people, the mobile phone will automatically divert to voice mail.

Dias, D. (2007). Five Innovations that will Change our Lives. http://www.cxotoday.com/India/Future_Technology/Five_innovations_that_will_change_our_lives/551-83432-907.html. Accessed 20th August 2008.

Rainer, R. & Turban, E. (2009). Introduction to Information Systems: Supporting and Transforming Business. 2 Ed. John Wiley & Sons

Chapter 2: Information Systems

1. What is the difference between an 'application' and computer-based information systems?
A computer-based information systems (CBIS) is an information system that uses computer technology to perform some or all of its intended tasks. Although not all information systems are computerized, today most are.
An Application is a computer program designed to support a specific task or business process. Each functional area or department within a business organization uses dozens of application programs. E.g. the HR department sometimes uses one application for screening job applicants and another for monitoring employee turnover.

2. What are strategic information systems?
A Strategic Information System (SIS) provides a competitive advantage by helping an organisation implement its strategic goals and increase its performance and productivity. Any information system that helps an organisation gain a competitive advantage, or reduce
Strategic information system is different from other systems as: -
- they change the way the firm competes.
- they have an external (outward looking) focus.
- they are associated with higher project risk.
- they are innovative (and not easily copied).

3. According to Porter, what are the five forces that could endanger/enhance a firm’s position in its industry or marketplaces?
- The threat of entry of new competitor’s. Threat is high when easy to enter your market and low when significant barriers exist.
- The bargaining power of suppliers. Supplier power is high when buyers have few choices of whom to buy and low when buyers have many choices. Therefore, organizations would rather have more potential suppliers to be able to better negotiate price, quality, and delivery terms.
- The bargaining power of customers (buyers). Buyer power is high when buyers have many choices from whom to buy and low when few choices.
- The threat of substitute products or services. If there are many substitutes, then the threat of substitutes is high. Today technologies create substitute products very rapidly.
- The rivalry among existing firms in the industry. Threat from rivalry high when intense competition among firms in an industry.

4. In relation to Porter's value chain model, what is meant by primary activities and support activities, and how does IT support these activities?

Primary activities are those business activities that relate to the production and and distribution of the firm’s products and services, thus creating value for which customers are willing to pay. Involve purchasing materials, processing materials into products, and delivering products to customers.

There are 5 primary activities:
1. Inbound logistics (inputs)
2. Operations (manufacturing and testing)
3. Outbound logistics (storage and distribution)
4. Marketing and sales
5. Services

Support activities don’t add value directly to the firms products or services. Rather, they contribute to the firm’s competitive advantage by supporting the primary activities.

Support activities consist of:
1. The firms infrastructure (accounting, finance, management)
2. Human resources management
3. product and technology development (R&D)
4. Procurement

5. Discuss the logic of building information systems in accordance with the organizational hierarchical structure.
The Mckinsey Strategy
- Strategy - what are we going to do?
- Structure - who is going to do it?
- Systems - whats systems will be used?
- Skills - what core knowledge is required?
- Staff - what people will we hire, what money will be spent on training?

6. How has the Internet affected each of the five forces in Porter’s competitive forces model.
- The threat of new competitors. Reduce traditional barriers to entry, such as the need for sales force or a physical storefront to sell goods and services. Today, competitors need only to set up a Web site.
- Bargaining power of suppliers. Buyers can find alternative suppliers and compare prices more easily, reducing the suppliers bargaining power. Companies also use the internet to integrate their supply chains, and prosper by locking in customers.
- The threat of substitute products or services. Any industry in which digitalized information can replace material goods (books, music, software) must view the internet as a threat because the internet can convey this information efficiently at a low cost.
- The rivalry among existing firms in the industry. Competition is affected by the low variable cost of digital products. The costs in physical (CD, DVD) distribution channel are much higher than the costs involved in delivering the songs over the internet in digital form.

The internet has changed the nature of competition. Porter concludes that the overall impact of the internet is to increase competition, which has a negative impact on profitability.

Rainer, R. & Turban, E. (2009). Introduction to Information Systems: Supporting and Transforming Business. 2 Ed. John Wiley & Sons

Chapter 1: The Modern Organisation

1. What are the characteristics of the modern business environment?
- 24/7 open anytime, anywhere.

2. What is meant by a web-based, global platform, what does it provide, and how has it affected business?
- Spans the world and is best represented by the internet and the functionality of the World Wide Web. - The platform enables individuals to connect, compute, communicate, collaborate, and compete everywhere and anywhere, anytime and all the time; to access limitless amounts of information, services and entertainment; to exchange knowledge; and to produce and sell goods and services
- Operates without regard to geography, time distance, and even language barriers.
This platform enables globalization (the integration and interdependence of economic, social, cultural, and ecological facets of life, enables by rapid advances in information technology).

3. What are the main pressures that characterize the modern global business environment?
Business pressures. The business environment is the combination of social, legal, economic, physical, and political factors that affect business activities.

3 types of business pressures:
Market Pressures. Generated by the global economy and strong competition, the changing nature of the workforce, and powerful customers.
- global economy and strong competition
- the changing nature of the workforce
- powerful customers
Technology pressures. Two major technology-related pressures are technological innovation and information overload.
- technological innovation and obsolescence
- information overload
Societal/Political/Legal Pressures. Social responsibility, government regulation,/deregulation, spending for social programs, spending to protect against terrorism, and ethics.
- social responsibility
- compliance with government regulations and deregulation

4. What are the common IT oriented organizational responses to these pressures?
- Strategic Systems. Provide organizations with advantages that enable them to increase their market share and/or profits, to better negotiate with suppliers, or to prevent competitors from entering their markets.
- Customer focus. Organisational attempts to provide superb customer service can make the difference between attracting and keeping customers on the one hand and losing them to competitors on the other hand. E.g. Amazon.
- Make-to-order and mass Customisation. Make-to-Order is a strategy of produving customized products and services. The business problem is how to manufacture customized goods efficiently and at a reasonably low cost. In mass production, a company produces a large quantity of identical items. In mass customization, it also produces a large quantity of items, but it customuizes themt o fit the desires of each customer.
- E-Business and E-Commerce. Doing business electronically is essential strategy for companies competing in today’s business environment.

5. How are IT architecture and IT infrastructure are interrelated.
IT Architecture is a high level map or plan of the information assets in an organization. It is both a guide for current operations and a blueprint for future directions.
IT Infrastructure consists of the physical facilities, IT components, IT service, and IT personnel that support the entire organization.
The IT architecture integrates the entire organization’s business needs for information, the IT infrastructure, and all applications.
They provide the basis for all information systems in the organization.

6. Is the Internet an infrastructure, an architecture, or an application program? or something else. Why?
- The Internet is an infrastructure because it provides connectivity between resources or services and the users of such facilities.
- It is architecture becasue it is a general plan of how IT will be used within the organisation.
- It is an application program becasue it has computer programs that support a specific task e.g MYOB, MS Office.

Rainer, R. & Turban, E. (2009). Introduction to Information Systems: Supporting and Transforming Business. 2 Ed. John Wiley & Sons