Chapter 14 Strategies for information Flashcards
1.1 the benefits of a proposed information system
Benefits of proposed information system should be evaluated against the cost. The following should be considered:
- increased revenue: improved marketing and use of data analytics can help organisations achieve a competitive advantage
- cost reduction: automated production, computer aided manufacturing and improved stock control may improve profitability
- enhanced service: computerised systems may improve reliability and CRM systems can help to manage customer relationships
- improve decision making accurate and up-to-date information can aid forecasting and scenario planning
1.2 Development and implementation of a new information system
The stages to follow when developing a new information system are analysis (identify the needs of the new system), design (design a system that needs those needs), programming (outline specifications to programmers), testing (ensure that requirements have not been met), conversion (existing data is migrated to the system) and implementation (user training and on-going maintenance).
2.1 Digital disruption
Refers to the rapid change that is happening in many industries as companies move to digital transformation. This is through the use of technological advances to challenge the status quo and create value in new ways.
2.2 Data analytics
This is the process of collecting, organising and analysing large sets of data to discover patterns and other information which an organisation can use for future decisions.
- Collection of data: companies have access to greater quantities of data available from a number of internal and external sources
- Organisation of data: once data has been captured it needs to be organised and stored for future use, often using data warehousing facilities
- Analysis of data: data mining software uses statistical algorithms to discover correlations and patterns to create useful information
2.3 Big data
Big data describes large volume of data that inundate a business on a day-to-day basis. Key features of big data are:
- Volume (considers the amount of data): does company have the resources available to store and manage the data, or does it have the financial resources required to invest in or upgrade IT
- Velocity (considers speed the data is fed into the company): are the systems able to capture and process real time data. Does the organisation have skills to provide timey analysis of the data
- Variety (considers various formats of data received): are systems compatible and capable of accepting various forms of data. Legally, is the data owned by organisation or by the third party
- Veracity (considers reliability of the data being received): can the company challenge data received from third parties. Is the data received fully representative of the whole data population
Limitations of big data include data overload, ability to verify the data, representative data, shortage of talent to analyse the data, fear of cyber-attack and legal and regulatory compliance.
2.4 Cognitive technologies
Artificial intelligence: increasing use of computers to perform tasks thought to require human intelligence such as learning and reasoning.
Machine learning: subset of AI that applies algorithms or other techniques to data to give computers the ability to learn without being explicitly programmed to do so. Performance can be improved with experience of repeating processes. This can reduce costs, improve efficiency and reduce dependence on human intervention.
Automation: creation of technology and its application to control and monitor activities without human interference. Benefits include more productivity, accuracy, consistency and availability. Challenges include the investment required, lack of operating skills and potential redundancies.
Internet of things describes inter-connection via the interest of computing devices embedded in everyday objects, enabling them to send and receive data.
2.5 Digital assets
Digital asset is any text or data file that is formatted into a binary source which includes the right to use it, digital files that do not carry this right are not considered digital assets. Two common types of assets are media assets (images) and textual content (documents and PDF files). Businesses must protect and manage digital assets similarly to tangible assets. Businesses use encoding, encryption and watermarks to protect digital assets.
Implementing a digital asset management strategy requires consideration of:
- Infrastructure capabilities and storage needs: may need to be outsourced to a digital management company if the business does not have the capability
- Management support: new strategy would be disruptive and expensive and will need management support
- Selection of supplier needs to be able to retrieve the assets on a timely basis and provide the necessary support
2.6 Blockchain technology
Blockchain is decentralised, distributed and public digital ledger that is used to record transactions across many computers so the record cannot be altered without the consensus of all involved parties. As transactions take place, they form a block which gets added to the chain, this is permanently recorded and cannot be altered retrospectively.
Cryptocurrency is a form of digital currency designed to facilitate the virtual exchange of transactions. Cryptocurrencies are not controlled by a central banking mechanism, leading to fluctuating values, companies need to consider the following when taking cryptocurrency as a payment:
- Impact on reputation: all cryptocurrencies can be sent anonymously, they have been used by criminals to transfer proceeds of crime, leading to negative reputation associated with it
- Capabilities required: infrastructure to collect cryptocurrency needs to be in place. Intermediaries exist to collect currency and exchange for sterling. There is a charge for this service due to fluctuations in value
3.1 Knowledge management
Knowledge is the potential for action based on data, information, intuition and experience. Explicit knowledge is knowledge that the company knows it has. Tacit knowledge is personal knowledge held by people within the organisation that has not been formally documented.
Knowledge management is a range of strategies and tools that capture all knowledge and deliver it to people in such a way that can be acted on quickly, to the competitive advantage of the business. Knowledge management considers the process of collecting, storing and using the knowledge held within an organisation. This includes
- Designing and installing techniques and processes to create, protect and use explicit knowledge
- Designing and creating environments and activities to discover and release tacit knowledge
3.3 Knowledge management strategy
Stages to follow when implementing a knowledge management strategy include identifying the knowledge that exists within the organisation, capturing and documenting existing knowledge, disseminate knowledge to appropriate people, determine ways that knowledge can be developed and tracked and ensure that key strategic knowledge is kept secure and confidential.
4.1 Cyber security risks
Is the protection of systems, networks and data in cyberspace. Cyber risk is any risk of financial loss, disruption or damage to the reputation of an organisations from some sort of failure of its IT systems.
- Human threats: hackers may be able to get into the company’s internal network, either to steal data or damage the system
- Fraud: the theft of funds by dishonest use of a computer system
- Deliberate sabotage: commercial espionage or malicious damage or industrial action
- Viruses and other corruptions: these can spread through the network to all of the company’s computers
- Denial of service: an attempt by hackers to prevent legitimate use of a service. This is likely to result in frustrated customers and lost sales
Risk management procedures include:
- Ensuring appropriate systems development and maintenance takes place
- Have back-up servers
- Have access controls, data encryption, firewalls in place for payments and data
- Quality controls in place for other companies in the systems chain, that share information
- Hire individuals with the specialist skills and expertise
