Michael Porter’s 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.
Business intelligence (BI) provides historical, current, and predictive views of business operations and environments and gives
organizations a competitive advantage in the marketplace.
Transaction-processing systems (TPSs) focus on data collection and processing; the major reason for using them is cost
reduction.
A management information system (MIS) is 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.
The 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.
Information consists of facts that have been analyzed by the process component and is an output of an information system.
An operating system (OS) is a set of programs for controlling and managing computer hardware and software. It provides an
interface between a computer and the user and increases computer efficiency by helping users share computer resources and
by performing repetitive tasks for users.
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. 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. 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. 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.Fifth-generation languages 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.
The data dictionary stores definitions, such as data types for fields, default values, and validation rules for data in each field.
A primary key uniquely identifies every record in a relational database. Examples include student ID numbers, account
numbers, Social Security numbers, and invoice numbers. A foreign key is a field in a relational table that matches the primary
key column of another table. It can be used to cross-reference tables. Normalization improves database efficiency by
eliminating redundant data and ensuring that only related data is stored in a table.
Extraction, transformation, and loading (ETL) refers to the processes used in a data warehouse. It includes extracting data
from outside sources, transforming it to fit operational needs, and loading it into the end target (database or data warehouse).
Online transaction processing (OLTP) is used to facilitate and manage transaction-oriented applications, such as point-of–
sale, data entry, and retrieval transaction processing. It generally uses internal data and responds in real time.
Online analytical processing (OLAP) generates business intelligence. It uses multiple sources of information and provides
multidimensional analysis, such as viewing data based on time, product, and location.
An acceptable use policy is a set of rules specifying the legal and ethical use of a system and the consequences of
noncompliance.
Phishing is sending fraudulent e-mails that seem to come from legitimate sources, such as a bank or university.
Similar to phishing, pharming is directing Internet users to fraudulent Web sites with the intention of stealing their personal
information, such as Social Security numbers, passwords, bank account numbers, and credit card numbers. The difference is
that pharmers usually hijack an official Web site address, then alter its IP address so that users who enter the correct Web
address are directed to the pharmers’s fraudulent Web site. Sniffing is capturing and recording network traffic. Spoofing is an
attempt to gain access to a network by posing as an authorized user in order to find sensitive information, such as passwords
and credit card information.
A PKI (public key infrastructure) enables users of a public network such as the Internet to securely and privately exchange
data through the use of a pair of keys—a public one and a private one—that is obtained from a trusted authority and shared
through that authority.
Asymmetric encryption uses two keys: a public key known to everyone and a private or secret key known only to the recipient.
A message encrypted with a public key can be decrypted only with the same algorithm used by the public key and requires the
recipient’s private key, too. Anyone intercepting the message cannot decrypt it because he or she does not have the private key.
In symmetric encryption (also called secret key encryption), the same key is used to encrypt and decrypt the message. The
sender and receiver must agree on the key and keep it secret.
To improve the efficiency and quality of digital communications, Time Division Multiple Access (TDMA) divides each channel
into six time slots. Each user is allocated two slots: one for transmission and one for reception. This method increases efficiency
by 300 percent, as it allows carrying three calls on one channel.
To improve the efficiency and quality of digital communications, Code Division Multiple Access (CDMA) transmits multiple
encoded messages over a wide frequency and then decodes them at the receiving end.
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
