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EssentialsofManagementInformationSystemsFourteenthEditionChapter7Telecommunications,theInternet,andWirelessTechnologyLearningObjectives7.1
Whataretheprincipalcomponentsoftelecommunicationsnetworksandkeynetworkingtechnologies?7.2
Whatarethedifferenttypesofnetworks?7.3
HowdotheInternetandInternettechnologywork,andhowdotheysupportcommunicationande-business?7.4
Whataretheprincipaltechnologiesandstandardsforwirelessnetworking,communication,andInternetaccess?7.5
HowwillMIShelpmycareer?VideoCasesCase1:TelepresenceMovesoutoftheBoardroomandintotheField
Case2:VirtualCollaborationwithI
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MSametimeTourdeFranceWinswithWirelessTechnology(1of2)ProblemVasttopographicallychallenginglocationOpportunitiesfromnewtechnologySolutionsReviseracetrackingprocessesObtainexternaldataTrackingsensorsMobileappCloudcomputingserviceDataanalyticsSocialmediaTourdeFranceWinswithWirelessTechnology(2of2)WirelessRaceTrackingSystemDemonstratessomeofthepowerfulcapabilitiesandopportunitiesprovidedbycontemporarynetworkingtechnologyIllustratestheabilityofITsystemstoenhanceservicestocustomersaswellasparticipantsNetworkingandCommunicationTrendsConvergenceTelephonenetworksandcomputernetworksconvergingintosingledigitalnetworkusingInternetstandardsBroadbandThemajorityofU.S.householdsnowhavebroadbandaccessBroadbandwirelessVoiceanddatacommunicationsnowexclusivelyusebroadbandcableandwirelessplatformsWhatIsaComputerNetwork?TwoormoreconnectedcomputersMajorcomponentsinsimplenetworkClientandservercomputersNetworkinterfaces(NICs)ConnectionmediumNetworkoperatingsystem(NOS)Hubs,switches,routersSoftware-definednetworking(SDN)FunctionsofswitchesandroutersmanagedbycentralprogramFigure7.1ComponentsofaSimpleComputerNetworkNetworksinLargeCompaniesHundredsoflocalareanetworks(LANs)linkedtofirm-widecorporatenetworkVariouspowerfulserversWebsite,corporateintranet,extranetBackendsystemsMobilewirelessLANs(Wi-Finetworks)VideoconferencingsystemTelephonenetwork,wirelesscellphonesFigure7.2CorporateNetworkInfrastructureKeyDigitalNetworkingTechnologies(1of3)Client/servercomputingDistributedcomputingmodelClientslinkedthroughnetworkcontrolledbynetworkservercomputerServersetsrulesofcommunicationfornetworkandprovideseveryclientwithanaddresssootherscanfinditonthenetworkHaslargelyreplacedcentralizedmainframecomputingTheInternet:largestimplementationofclient/servercomputingKeyDigitalNetworkingTechnologies(2of3)PacketswitchingMethodofslicingdigitalmessagesintoparcels(packets),sendingpacketsalongdifferentcommunicationpathsastheybecomeavailable,andthenreassemblingpacketsatdestinationPreviouscircuit-switchednetworksrequiredassemblyofcompletepoint-to-pointcircuitPacketswitchingmoreefficientuseofnetwork’scommunicationscapacityFigure7.3Packet-SwitchedNetworksandPacketCommunicationsKeyDigitalNetworkingTechnologies(3of3)TCP/IPandconnectivityProtocols:rulesthatgoverntransmissionofinformationbetweentwopointsTransmissionControlProtocol/InternetProtocol(TCP
/IP)CommonworldwidestandardthatisbasisfortheInternetDepartmentofDefensereferencemodelforTCP
/IPFourlayersApplicationlayerTransportlayerInternetlayerNetworkinterfacelayerFigure7.4TheTransmissionControlProtocol/InternetProtocol(TCP/IP)ReferenceModelTypesofNetworksSignals:DigitalversusanalogModem:translatesdigitalsignalsintoanalogform(andviceversa)TypesofnetworksLocalareanetworks(LANs)EthernetClient/servervs.peer-to-peerWideareanetworks(WANs)Metropolitanareanetworks(MANs)Campusareanetworks(CANs)Figure7.5FunctionsoftheModemTransmissionMediaandTransmissionSpeedPhysicaltransmissionmediaTwistedpairwire(CAT5)CoaxialcableFiberopticscableWirelesstransmissionmediaanddevicesSatellitesCellularsystemsTransmissionspeedBitspersecond(bps)HertzBandwidthWhatIstheInternet?TheInternetWorld’smostextensivenetworkInternetserviceproviders(ISPs)ProvideconnectionsTypesofInternetconnectionsDial-up:56.6KbpsDigitalsubscriberline(DSL/FIOS):385Kbps–40MbpsCableInternetconnections:1–50MbpsSatelliteT1/T3lines:1.54–45MbpsInternetAddressingandArchitectureEachdeviceonInternetassignedInternetProtocol(IP)address32-bitnumber,e.g.19TheDomainNameSystem(DNS)ConvertsIPaddressestodomainnamesHierarchicalstructureTop-leveldomainsFigure7.6TheDomainNameSystemInternetArchitectureandGovernanceNetworkserviceprovidersOwntrunklines(high-speedbackbonenetworks)RegionaltelephoneandcableTVcompaniesProvideregionalandlocalaccessProfessionalorganizationsandgovernmentbodiesestablishInternetstandardsIABICANNW3CFigure7.7InternetNetworkArchitectureTheFutureInternet:IPv6andInternet2IPv6NewaddressingschemeforIPnumbersWillprovidemorethanaquadrillionnewaddressesNotcompatiblewithcurrentIPv5addressingInternet2AdvancednetworkingconsortiumUniversities,businesses,governmentagencies,otherinstitutionsDevelopedhigh-capacity100GbpstestingnetworkTestingleading-edgenewtechnologiesforInternetInternetServicesandCommunicationTools(1of2)InternetservicesEmailChattingandinstantmessagingNewsgroupsTelnetFileTransferProtocol(FTP)WorldWideWebVoiceoverIP(VoIP)DigitalvoicecommunicationusingIP,packetswitchingFigure7.8Client/ServerComputingontheInternetInternetServicesandCommunicationTools(2of2)UnifiedcommunicationsCommunicationssystemsthatintegratevoice,data,email,conferencingVirtualprivatenetwork(VPN)Secure,encrypted,privatenetworkrunoverInternetPPTPTunnelingFigure7.9HowVoiceoverI
PWorksInteractiveSession–Management:MonitoringEmployeesonNetworks:UnethicalorGoodBusiness?ClassdiscussionShouldmanagersmonitoremployeeemailandInternetusage?Whyorwhynot?Describeaneffectiveemailandweb-usepolicyforacompany.Shouldmanagersinformemployeesthattheirwebbehaviorisbeingmonitored?Orshouldmanagersmonitorsecretly?Whyorwhynot?Figure7.10AVirtualPrivateNetworkUsingtheInternetTheWebHypertextHypertextMarkupLanguage(HTML)HypertextTransferProtocol(HTTP):Uniformresourcelocatorexample(URL):/content/features/082602.htmlWebserversSoftwareforlocatingandmanagingwebpagesSearchingforInformationontheWebMobilesearchSemanticsearchSocialsearchVisualsearchIntelligentagentshoppingbotsSearchenginemarketingSearchengineoptimization(SEO)Figure7.11TopDesktop/LaptopWebSearchEnginesWorldwideFigure7.12HowGoogleWorksSharingInformationontheWebBlogsRSSWikisSocialnetworkingTheFutureWebMoretoolstomakesenseoftrillionsofpagesontheInternetPervasivewebInternetofThings(IoT)InternetofPeopleAppInternetIncreasedcloudcomputingandSaaSUbiquitousmobileconnectivityGreaterseamlessnessofwebasawholeInteractiveSession–Technology:
TheInternetofThingsAidsWasteManagementClassDiscussionIdentifytheproblemdescribedinthiscasestudy.Isitapeopleproblem,anorganizationalproblem,oratechnologyproblem?Explainyouranswer.WhatrolehasinformationtechnologyandtheIoTplayedinhelpingcitiesdealwiththeirwastemanagementproblems?DescribetheITapplicationsthatarebeingusedforthispurpose.HowsuccessfularetheseITapplicationsasasolution?Explainyouranswer.CellularSystems(1of2)CompetingstandardsCDMA:UnitedStatesonlyGSM
:Restofworld,AT&T,T-MobileThird-generation(3G)networks144kbpsSuitableforemailaccess,webbrowsingCellularSystems(2of2)Fourth-generation(4G)networksUpto100MbpsSuitableforemailaccess,webbrowsing,InternetvideoLTEandWiMax5GnetworksGigabitcapacityCurrentlyunderdevelopmentandfieldtestingWirelessComputerNetworksandInternetAccess(1of2)Bluetooth(802.15)Linksupto8devicesina10-mareausinglow-power,radio-basedcommunicationUsefulforpersonalnetworking(PANs)sWi-Fi(802.11)Setofstandards:802.11UsedforwirelessLANandwirelessInternetaccessUseaccesspoints:devicewithradioreceiver/transmitterforconnectingwirelessdevicestoawiredLANWirelessComputerNetworksandInternetAccess(2of2)Wi-Fi(802.11)continuedHotspots:oneormoreaccesspointsinpublicplacetoprovidemaximumwirelesscoverageforaspecificareaWeaksecurityfeaturesWiMax(802.16)Wirelessaccessrangeof31milesRequireWiMaxantennasFigure7.13ABluetoothNetwork(PAN)Figure7.14An802.11WirelessLANRadioFrequencyIdentification
(R
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D)UsetinytagswithmicrochipscontainingdataaboutanitemandlocationTagantennastotransmitradiosignalsovershortdistancestospecialRFIDreadersCommonuses:Automatedtoll-collectionTrackinggoodsinasupplychainReductionincostoftagsmakingRFIDviableformanyfirmsFigure7.15HowR
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DWorksWirelessSensorNetworks(WSNs)NetworksofhundredsorthousandsofinterconnectedwirelessdevicesUsedtomonitorbuildingsecurity,detecthazardoussubstancesinair,monitorenvironmentalchanges,traffic,ormilitaryactivityDeviceshavebuilt-inprocessing,storage,andradiofrequencysensorsandantennasRequirelow-power,long-lastingbatteriesandabilitytoendureinthefieldwithoutmaintenanceMajorsourcesof“BigData”andfueling“InternetofThings”Figure7.16AWirelessSensorNetworkHowWillMISHelpMyCareer?TheCompany:A1WesternCarDealersPositionDescription:AutomotivedigitaladvisorJobRequirementsInterviewQuestionsAuthorTipsCopyrightThisworkisprotectedbyUnitedStatescopyrightlawsandisprovidedsolelyfortheuseofinstructorsinteachingtheircoursesandassessingstudentlearning.Disseminationorsaleofanypartofthiswork(includingontheWorldWideWeb)willdestroytheintegrityoftheworkandisnotpermitted.Theworkandmaterialsfromitshouldneverbemadeavailabletostudentsexceptbyinstructorsusingtheaccompanyingtextintheirclasses.Allrecipientsofthisworkareexpectedtoabidebytheserestrictionsandtohonortheintendedpedagogicalpurposesandtheneedsofotherinstructorswhorelyonthesematerials.EssentialsofManagementInformationSystemsFourteenthEditionChapter8SecuringInformationSystemsCopyright©2021,2019,2017PearsonEducation,Inc.
AllRightsReservedLearningObjectives8.1
Whyareinformationsystemsvulnerabletodestruction,error,andabuse?8.2
Whatisthebusinessvalueofsecurityandcontrol?8.3
Whatarethecomponentsofanorganizationalframeworkforsecurityandcontrol?8.4
Whatarethemostimportanttoolsandtechnologiesforsafeguardinginformationresources?8.5
HowwillMIShelpmycareer?VideoCasesCase1:StuxnetandCyberwarfareCase2:Cyberespionage:TheChineseThreatInstructionalVideo1:SonyPlayStationHacked;DataStolenfrom77MillionUsersInstructionalVideo2:MeettheHackers:AnonymousStatementonHackingSonyTheElectricPowerGridBecomesaCyberwarfareBattleground(1of2)ProblemLargecomplexinfrastructureNumerousaccesspointsUnevensecuritySolutionsMalwaredetectionSocialengineeringeducationMultifactorauthenticationTheElectricPowerGridBecomesaCyberwarfareBattleground(2of2)HackerstookadvantageofunevensecurityandcontrolsandloosemanagementstructuretoattacktheU.S.powergridDemonstratesvulnerabilitiesininformationtechnologysystemsIllustratessomeofthereasonsorganizationsneedtopayspecialattentiontoinformationsystemsecurityWhySystemsAreVulnerable(1of2)SecurityPolicies,procedures,andtechnicalmeasuresusedtopreventunauthorizedaccess,alteration,theft,orphysicaldamagetoinformationsystemsControlsMethods,policies,andorganizationalproceduresthatensuresafetyoforganization’sassets;accuracyandreliabilityofitsaccountingrecords;andoperationaladherencetomanagementstandardsWhySystemsAreVulnerable(2of2)AccessibilityofnetworksHardwareproblems(breakdowns,configurationerrors,damagefromimproperuseorcrime)Softwareproblems(programmingerrors,installationerrors,unauthorizedchanges)DisastersUseofnetworks/computersoutsideoffirm’scontrolLossandtheftofportabledevicesFigure8.1ContemporarySecurityChallengesandVulnerabilitiesInternetVulnerabilitiesNetworkopentoanyoneSizeofInternetmeansabusescanhavewideimpactUseoffixedInternetaddresseswithcable/DSLmodemscreatesfixedtargetsforhackersUnencryptedVOIPEmail,P2P,IMInterceptionAttachmentswithmalicioussoftwareTransmittingtradesecretsWirelessSecurityChallengesRadiofrequencybandseasytoscanSSIDs(servicesetidentifiers)Identifyaccesspoints,broadcastmultipletimes,canbeidentifiedbysnifferprogramsWardrivingEavesdroppersdrivebybuildingsandtrytodetectSSIDandgainaccesstonetworkandresourcesOnceaccesspointisbreached,intrudercangainaccesstonetworkeddrivesandfilesRogueaccesspointsMaliciousSoftware:Viruses,Worms,TrojanHorses,andSpyware(1of2)Malware(malicioussoftware)VirusesWormsWormsandvirusesspreadbyDownloadsanddrive-bydownloadsEmail,IMattachmentsMobiledevicemalwareSocialnetworkmalwareMaliciousSoftware:Viruses,Worms,TrojanHorses,andSpyware(2of2)TrojanhorseSQLinjectionattacksRansomwareSpywareKeyloggersOthertypesResetbrowserhomepageRedirectsearchrequestsSlowcomputerperformancebytakingupmemoryHackersandComputerCrime(1of3)Hackersvs.crackersActivitiesinclude:SystemintrusionSystemdamageCybervandalismIntentionaldisruption,defacement,destructionofwebsiteorcorporateinformationsystemSpoofingandsniffingHackersandComputerCrime(2of3)Denial-of-serviceattacks(DoS)Distributeddenial-of-serviceattacks(DDoS)BotnetsSpamComputercrimeComputermaybetargetofcrimeComputermaybeinstrumentofcrimeHackersandComputerCrime(3of3)IdentitytheftPhishingEviltwinsPharmingClickfraudCyberterrorismCyberwarfareInternalThreats:EmployeesSecuritythreatsoftenoriginateinsideanorganizationInsideknowledgeSloppysecurityproceduresUserlackofknowledgeSocialengineeringBothendusersandinformationsystemsspecialistsaresourcesofriskSoftwareVulnerabilityCommercialsoftwarecontainsflawsthatcreatesecurityvulnerabilitiesBugs(programcodedefects)ZerodefectscannotbeachievedFlawscanopennetworkstointrudersZero-dayvulnerabilitiesPatchesSmallpiecesofsoftwaretorepairflawsPatchmanagementWhatIstheBusinessValueofSecurityandControl?FailedcomputersystemscanleadtosignificantortotallossofbusinessfunctionFirmsnowaremorevulnerablethaneverConfidentialpersonalandfinancialdataTradesecrets,newproducts,strategiesAsecuritybreachmaycutintoafirm’smarketvaluealmostimmediatelyInadequatesecurityandcontrolsalsobringforthissuesofliabilityInteractiveSession–Technology:MeltdownandSpectreHaunttheWorld’sComputersClassdiscussionHowdangerousareSpectreandMeltdown?Explainyouranswer.ComparethethreatsofSpectreandMeltdowntocloudcomputingcenters,corporatedatacenters,andindividualcomputerandsmartphoneusers.HowwouldyouprotectagainstSpectreandMeltdownifyouwererunningapubliccloudcomputingcenter,ifyouranacorporatedatacenter,andifyouwereanindividualcomputeruser?LegalandRegulatoryRequirementsforElectronicRecordsManagementHIPAAMedicalsecurityandprivacyrulesandproceduresGramm-Leach-BlileyActRequiresfinancialinstitutionstoensurethesecurityandconfidentialityofcustomerdataSarbanes-OxleyActImposesresponsibilityoncompaniesandtheirmanagementtosafeguardtheaccuracyandintegrityoffinancialinformationthatisusedinternallyandreleasedexternallyElectronicEvidenceandComputerForensicsElectronicevidenceEvidenceforwhitecollarcrimesoftenindigitalformPropercontrolofdatacansavetimeandmoneywhenrespondingtolegaldiscoveryrequestComputerforensicsScientificcollection,examination,authentication,preservation,andanalysisofdatafromcomputerstoragemediaforuseasevidenceincourtoflawRecoveryofambientdataInformationSystemsControlsMaybeautomatedormanualGeneralcontrolsGoverndesign,security,anduseofcomputerprogramsandsecurityofdatafilesingeneralthroughoutorganizationSoftwarecontrols,hardwarecontrols,computeroperationscontrols,datasecuritycontrols,systemdevelopmentcontrols,administrativecontrols,ApplicationcontrolsControlsuniquetoeachcomputerizedapplicationInputcontrols,processingcontrols,outputcontrolsRiskAssessmentDetermineslevelofrisktofirmifspecificactivityorprocessisnotproperlycontrolledTypesofthreatProbabilityofoccurrenceduringyearPotentiallosses,valueofthreatExpectedannuallossTable8.5OnlineOrderProcessingRiskAssessmentExposureProbabilityofOccurrenceLossRange(Average)($)ExpectedAnnualLoss($)Powerfailure30%$5,000−$200,000($102,500)$30,750Embezzlement5%$1,000−$50,000($25,500)$1,275Usererror98%$200−$40,000($20,100)$19,698SecurityPolicyRanksinformationrisks,identifiessecuritygoalsandmechanismsforachievingthesegoalsDrivesotherpoliciesAcceptableusepolicy(AUP)Definesacceptableusesoffirm’sinformationresourcesandcomputingequipmentIdentitymanagementIdentifyingvalidusersControllingaccessFigure8.2AccessRulesforaPersonnelSystemDisasterRecoveryPlanningandBusinessContinuityPlanningDisasterrecoveryplanningDevisesplansforrestorationofdisruptedservicesBusinesscontinuityplanningFocusesonrestoringbusinessoperationsafterdisasterBothtypesofplansneededtoidentifyfirm’smostcriticalsystemsBusinessimpactanalysistodetermineimpactofanoutageManagementmustdeterminewhichsystemsrestoredfirstTheRoleofAuditingInformationsystemsauditExaminesfirm’soverallsecurityenvironmentaswellascontrolsgoverningindividualinformationsystemsSecurityauditsReviewtechnologies,procedures,documentation,training,andpersonnelMayevensimulatedisastertotestresponsesListandrankcontrolweaknessesandtheprobabilityofoccurrenceAssessfinancialandorganizationalimpactofeachthreatFigure8.3SampleAuditor’sListofControlWeaknessesToolsandTechnologiesforSafeguardingInformationSystems(1of3)IdentitymanagementsoftwareAutomateskeepingtrackofallusersandprivilegesAuthenticatesusers,protectingidentities,controllingaccessAuthenticationPasswordsystemsTokensSmartcardsBiometricauthenticationTwo-factorauthenticationToolsandTechnologiesforSafeguardingInformationSystems(2of3)FirewallCombinationofhardwareandsoftwarethatpreventsunauthorizedusersfromaccessingprivatenetworksPacketfilteringStatefulinspectionNetworkaddresstranslation(NAT)ApplicationproxyfilteringFigure8.4ACorporateFirewallToolsandTechnologiesforSafeguardingInformationSystems(3of3)IntrusiondetectionsystemMonitorshotspotsoncorporatenetworkstodetectanddeterintrudersAntivirusandantispywaresoftwareCheckscomputersforpresenceofmalwareandcanofteneliminateitaswellRequirescontinualupdatingUnifiedthreatmanagement(UTM)systemsSecuringWirelessNetworksWEPsecurityStaticencryptionkeysarerelativelyeasytocrackImprovedifusedinconjunctionwithVPNWPA2specificationReplacesWEPwithstrongerstandardsContinuallychanging,longerencryptionkeysEncryptionandPublicKeyInfrastructure(1of3)EncryptionTransformingtextordataintociphertextthatcannotbereadbyunintendedrecipientsTwomethodsforencryptiononnetworksSecureSocketsLayer(SSL)andsuccessorTransportLayerSecurity(TLS)SecureHypertextTransferProtocol(S-HTTP)EncryptionandPublicKeyInfrastructure(2of3)TwomethodsofencryptionofmessagesSymmetrickeyencryptionSenderandreceiverusesingle,sharedkeyPublickeyencryptionUsestwo,mathematicallyrelatedkeys:publickeyandprivatekeySenderencryptsmessagewithrecipient’spublickeyRecipientdecryptswithprivatekeyFigure8.5PublicKeyEncryptionEncryptionandPublicKeyInfrastructure(3of3)DigitalcertificateDatafileusedtoestablishtheidentityofusersandelectronicassetsforprotectionofonlinetransactionsUsesatrustedthirdparty,certificationauthority(CA),tovalidateauser'sidentityCAverifiesuser’sidentity,storesinformationinCAserver,whichgeneratesencrypteddigitalcertificatecontainingownerIDinformationandcopyofowner’spublickeyPublickeyinfrastructure(PKI)UseofpublickeycryptographyworkingwithcertificateauthorityWidelyusedine-commerceFigure8.6DigitalCertificatesSecuringTransactionswithBlockchainSecuretransactiondatabaseEncryptionusedtoverifyusersandtransactionsDecentralizedRecordscannotbechangedEnsuringSystemAvailabilityOnlinetransactionprocessingrequires100%availabilityFault-tolerantcomputersystemsContainredundanthardware,software,andpowersupplycomponentsthatcreateanenvironmentthatprovidescontinuous,uninterruptedserviceDeeppacketinspectionSecurityoutsourcingManagedsecurityserviceproviders(MSSPs)SecurityIssuesforCloudComputingandtheMobileDigitalPlatform(1of2)SecurityinthecloudResponsibilityforsecurityresideswithcompanyowningthedataFirmsmustensureprovidershaveadequateprotection:WheredataarestoredMeetingcorporaterequirements,legalprivacylawsSegregationofdatafromotherclientsAuditsandsecuritycertificationsServicelevelagreements(SLAs)SecurityIssuesforCloudComputingandtheMobileDigitalPlatform(2of2)SecuringmobileplatformsSecuritypoliciesshouldincludeandcoveranyspecialrequirementsformobiledevicesGuidelinesforuseofplatformsandapplicationsMobiledevicemanagementtoolsAuthorizationInventoryrecordsControlupdatesLockdown/eraselostdevicesEncryptionSoftwareforsegregatingcorporatedataondevicesEnsuringSoftwareQualitySoftwaremetrics:ObjectiveassessmentsofsysteminformofquantifiedmeasurementsNumberoftransactionsOnlineresponsetimePayrollchecksprintedperhourKnownbugsperhundredlinesofcodeEarlyandregulartestingWalkthrough:ReviewofspecificationordesigndocumentbysmallgroupofqualifiedpeopleDebugging:ProcessbywhicherrorsareeliminatedInteractiveSession–Organizations:HowSecureIstheCloud?ClassdiscussionWhatkindsofsecurityproblemsdoescloudcomputingpose?Howseriousarethey?Explainyouranswer.Whatmanagement,organization,andtechnologyfactorsareresponsibleforcloudsecurityproblems?Towhatextentiscloudsecurityamanagementissue?Whatstepscanorganizationstaketomaketheircloud-basedsystemsmoresecure?Shouldcompaniesusethepubliccloudtoruntheirmission-criticalsystems?Whyorwhynot?HowWillM
I
SHelpMyCareer?TheCompany:No.1ValueSupermarketsPositionDescription:Identityaccessandmanagementsupportspecialist,entry-levelJobRequirementsInterviewQuestionsAuthorTipsCopyrightThisworkisprotectedbyUnitedStatescopyrightlawsandisprovidedsolelyfortheuseofinstructorsinteachingtheircoursesandassessingstudentlearning.Disseminationorsaleofanypartofthiswork(includingontheWorldWideWeb)willdestroytheintegrityoftheworkandisnotpermitted.Theworkandmaterialsfromitshouldneverbemadeavailabletostudentsexceptbyinstructorsusingtheaccompanyingtextintheirclasses.Allrecipientsofthisworkareexpectedtoabidebytheserestrictionsandtohonortheintendedpedagogicalpurposesandtheneedsofotherinstructorswhorelyonthesematerials.EssentialsofManagementInformationSystemsFourteenthEditionChapter9AchievingOperationalExcellenceandCustomerIntimacy:EnterpriseApplicationsCopyright©2021,2019,2017PearsonEducation,Inc.
AllRightsReservedLearningObjectives9.1
Howdoenterprisesystemshelpbusinessesachieveoperationalexcellence?9.2
Howdosupplychainmanagementsystemscoordinateplanning,production,andlogisticswithsuppliers?9.3
Howdocustomerrelationshipmanagementsystemshelpfirmsachievecustomerintimacy?9.4
Whatarethechallengesthatenterpriseapplicationspose,andhowareenterpriseapplicationstakingadvantageofnewtechnologies?9.5
HowwillMIShelpmycareer?VideoCasesCase1:MaerskDevelopsaGlobalShippingManagementSystemInstructionalVideo:GSMSProtectsPatientsbySerializingEveryBottleofDrugsAvonBeautifiesItsSupplyChain(1of2)Problem
VolatiledemandGlobaloperationsComplexsupplychainManualprocessesSolutionsRevisesupplychainprocessesDeployJDAManufacturingIntelligentfulfillmentAvonBeautifiesItsSupplyChain(2of2)AvonusesJDA’sManufacturingandIntelligentFulfillmentsystemtogaincontroloveritssupplychainandinventory,andestimatefutureneedstointegratebusinessprocessesanddecisionmakingDemonstrateswhycompaniesneedenterpriseapplicationsIllustratestheabilityofERPsystemstodramaticallyimproveoperationaleffectivenessanddecisionmakingonaglobalscaleEnterpriseSystemsEnterpriseresourceplanning(ERP)systemsSuiteofintegratedsoftwaremodulesandacommoncentraldatabaseCollectsdatafrommanydivisionsoffirmforuseinnearlyalloffirm’sinternalbusinessactivitiesInformationenteredinoneprocessisimmediatelyavailableforotherprocessesFigure9.1HowEnterpriseSystemsWorkEnterpriseSoftwareBuiltaroundthousandsofpredefinedbusinessprocessesthatreflectbestpracticesF
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