Information Systems in

Business Today
 The Role of Information Systems in Business Today

• How information systems are transforming

business
– Emerging mobile digital platform
– Growing business use of “big data”
– Growth in cloud computing
• Globalization opportunities
– Internet has drastically reduced costs of operating
on global scale
– Increases in foreign trade, outsourcing
– Presents both challenges and opportunities
 Interactive Session: Management

MEET THE NEW MOBILE WORKERS

Read the Interactive Session and discuss the following questions

• What kinds of applications are described in the case? What

business functions do they support? How do they improve
operational efficiency and decision making?
• Identify the problems that businesses in this case study
solved by using mobile digital devices.
• What kinds of businesses are most likely to benefit from
equipping their employees with mobile devices?
• Discuss the implications of this statement: “The iPhone is
not a game changer, it’s an industry changer.”
 The Role of Information Systems in Business Today

• In the emerging, fully digital firm:

– Significant business relationships are digitally
enabled and mediated.
– Core business processes are accomplished through
digital networks.
– Key corporate assets are managed digitally.
• Digital firms offer greater flexibility in
organization and management.
– Time shifting, space shifting
 The Role of Information Systems in Business Today

• Growing interdependence
between:
– Ability to use information technology
and
– Ability to implement corporate
strategies and achieve corporate goals
 The Role of Information Systems in Business Today

• Firms invest heavily in information

systems to achieve six strategic business
objectives:
1. Operational excellence
2. New products, services, and business models
3. Customer and supplier intimacy
4. Improved decision making
5. Competitive advantage
6. Survival
 The Interdependence Between Organizations and Information Technology

iness8trat
Objectives
iness Proces Softwan

Business Information
Firm System

Figure 1.2 In contemporary systems there is a growing interdependence between a firm’s information systems and its
business capabilities. Changes in strategy, rules, and business processes increasingly require changes in
hardware, software, databases, and telecommunications. Often, what the organization would like to do depends
on what its systems will permit it to do.
 The Role of Information Systems in Business Today

• Operational excellence:
– Improvement of efficiency to attain higher
profitability
– Information systems, technology an important
tool in achieving greater efficiency and
productivity
– Walmart’s Retail Link system links suppliers to
stores for superior replenishment system
 The Role of Information Systems in Business Today

• New products, services, and business models:

– Business model: describes how company
produces, delivers, and sells product or service to
create wealth
– Information systems and technology a major
enabling tool for new products, services,
business models
• Examples: Apple’s iPad, Google’s Android OS,
and Netflix
 The Role of Information Systems in Business Today

• Customer and supplier intimacy:

– Serving customers well leads to customers returning,
which raises revenues and profits.
• Example: High-end hotels that use computers to track
customer preferences and used to monitor and
customize environment
– Intimacy with suppliers allows them to provide vital
inputs, which lowers costs.
• Example: JCPenney’s information system which links
sales records to contract manufacturer
 The Role of Information Systems in Business Today

• Improved decision making

– Without accurate information:
• Managers must use forecasts, best guesses, luck
• Results in:
– Overproduction, underproduction
– Misallocation of resources
– Poor response times
• Poor outcomes raise costs, lose customers
– Example: Verizon’s Web-based digital dashboard to
provide managers with real-time data on customer
complaints, network performance, line outages, and
so on
 The Role of Information Systems in Business Today

• Competitive advantage
– Delivering better performance
– Charging less for superior products
– Responding to customers and suppliers in
real time
– Examples: Apple, Walmart, UPS
 The Role of Information Systems in Business Today

• Survival
– Information technologies as necessity of business
– Industry-level changes
• Example: Citibank’s introduction of ATMs
– Governmental regulations requiring record-
keeping
• Examples: Toxic Substances Control Act,
Sarbanes-Oxley Act
• GDPR Act
 What Is an Information System?

• Information system:
– Set of interrelated components
– Collect, process, store, and distribute
information
– Support decision making, coordination, and
control
• Information vs. data
– Data are streams of raw facts.
– Information is data shaped into meaningful form.
 Data and Information

' ·........, . ,,,......../

................. ..
,....., ,.,.,.··
, .,
..........
·-----,., oq.,. .,;\o(\
'a>" /'..,
.,.,,.,.,,--
--.. . . ~..... 'ii .1.0~~ ___....---
................ . . .
...........
'(\'
'.,.,,.,,..,...-·
/
, ../

...... . . ............. /
.,,.,,.......<
331 Brite Dish Soap 1.29 ..,......... Sales Reg ion : Northwest
863 BL Hill Coffee 4 .69 , ....---·,.... Store : Superstore #122
173 Meow Cat .79 _,,.
331 Brite Dish Soap 1.29 Information ITEM NO. DESCRIPTION UNITS SOLD
663 Country Ham 3.29 System 331 Brite Dish Soap 7, 156
524 Fiery Mustard 1.49
113 Ginger Root .85 YTD SALES
331 Brite Dish Soap 1.29
$9,231.24

Figure 1.3 Raw data from a supermarket checkout counter can be processed and organized to produce meaningful
information, such as the total unit sales of dish detergent or the total sales revenue from dish detergent for a
specific store or sales territory.
 What Is an Information System?

• Three activities of information systems

produce information organizations need
– Input: Captures raw data from organization or
external environment
– Processing: Converts raw data into meaningful
form
– Output: Transfers processed information to
people or activities that use it
 What Is an Information System?

• Feedback:
– Output is returned to appropriate members of
organization to help evaluate or correct input stage.
• Computer/computer program vs.
information system
– Computers and software are technical foundation
and tools, similar to the material and tools used to
build a house.
 Functions of an Information System

An information system
contains information about an ENVIRONMENT
organization and its Suppliers Custom ers
surrounding environment.
Three basic activities—input,
processing, and output—
\
'' ORGANIZATION ,'I
I

produce the information

organizations need. Feedback
'
' /
INFORMATION SYSTEM
is output returned to
appropriate people or activities
in the organization to evaluate Processing
and refine the input.
Input
I ... Classify -- 1 ·

Output
Environmental actors, such as A rrange
customers, suppliers,
competitors, stockholders, and
I Calculate .

regulatory agencies, interact ' Feedback

with the organization and its
information systems.

Figure 1.4
V

,' I
I
•I
I
'
Regulatory
Agencies '
Stockho lders Competito rs
 Information Systems Are More Than Computers

Using information systems

effectively requires an
understanding of the
organization, management, and
information technology
shaping the systems. An
information system creates
value for the firm as an
organizational and
management solution to
challenges posed by the
environment.

Figure 1.5
 What Is an Information System?

• Organizational dimension of information

systems
– Hierarchy of authority, responsibility
• Senior management
• Middle management
• Operational management
• Knowledge workers
• Data workers
• Production or service workers
 Levels in a Firm

Business organizations are

hierarchies consisting of three
principal levels: senior
management, middle
management, and operational
management. Information
systems serve each of these
levels. Scientists and Senior
knowledge workers often work Management
with middle management.

Middle Management
Scientists and knowledge workers

Figure 1.6
Operational Management
Production and service workers
Data workers
 What Is an Information System?

• Organizational dimension of information

systems (cont.)
– Separation of business functions
• Sales and marketing
• Human resources
• Finance and accounting
• Manufacturing and production
– Unique business processes
– Unique business culture
– Organizational politics
 What Is an Information System?

• Management dimension of information

systems
– Managers set organizational strategy for
responding to business challenges
– In addition, managers must act creatively:
• Creation of new products and services
• Occasionally re-creating the organization
 What Is an Information System?

• Technology dimension of information

systems
– Computer hardware and software
– Data management technology
– Networking and telecommunications technology
• Networks, the Internet, intranets and
extranets, World Wide Web
– IT infrastructure: provides platform that system
is built on
 What Is an Information System?

• Business perspective on information

systems:
– Information system is instrument for creating
value
– Investments in information technology will result
in superior returns:
• Productivity increases
• Revenue increases
• Superior long-term strategic positioning
 What Is an Information System?

• Business information value chain

– Raw data acquired and transformed through stages
that add value to that information
– Value of information system determined in part by
extent to which it leads to better decisions, greater
efficiency, and higher profits
• Business perspective:
– Calls attention to organizational and managerial
nature of information systems
 The Business Information Value Chain

Business Processes

Supply Enterprise Customer Knowledge

Chain Management Management Management
Management
Firm
Profitability
and
Strategic
Data Transfor- Dissemination Position
Collection mation
and into Business
Storage Systems

Planning Coordinating Controlling Modeling and

Decision
Making
Information Processing Activities Management Activities

Business Value

Figure 1-7 From a business perspective, information systems are part of a series of value-adding activities for acquiring,
transforming, and distributing information that managers can use to improve decision making, enhance
organizational performance, and, ultimately, increase firm profitability.
 What Is an Information System?

• Investing in information technology does not

guarantee good returns.
• There is considerable variation in the returns
firms receive from systems investments.
• Factors:
– Adopting the right business model
– Investing in complementary assets (organizational
and management capital)
 What Is an Information System?

• Complementary assets:
– Assets required to derive value from a primary
investment
– Firms supporting technology investments with
investment in complementary assets receive
superior returns
– Example: Invest in technology and the people to
make it work properly
 What Is an Information System?

• Complementary assets include:

– Organizational assets, for example:
• Appropriate business model
• Efficient business processes
– Managerial assets, for example:
• Incentives for management innovation
• Teamwork and collaborative work environments
– Social assets, for example:
• The Internet and telecommunications infrastructure
• Technology standards
 Contemporary Approaches to Information Systems

The study of information

systems deals with issues and
insights contributed from
technical and behavioral
Technical
disciplines. Approaches

Behavioral
Figure 1.9 Approaches
 Studying Information Systems

• Technical approach
– Emphasizes mathematically based models
– Computer science, management science, operations
research
• Behavioral approach
– Behavioral issues (strategic business integration,
implementation, etc.)
– Psychology, economics, sociology
 Studying Information Systems

• Management Information Systems

– Combines computer science, management science,
operations research, and practical orientation with
behavioral issues
• Four main actors
– Suppliers of hardware and software
– Business firms
– Managers and employees
– Firm’s environment (legal, social, cultural context)
 Studying Information Systems

• Sociotechnical view
– Optimal organizational performance achieved by
jointly optimizing both social and technical systems
used in production
– Helps avoid purely technological approach
 A Sociotechnical Perspective on Information Systems

TECHNOLOGY ORGANIZATION

Alternative
1

Alternative
2

Alternative
3

Final
Design of
Organ ization

Figure 1-10 In a sociotechnical perspective, the performance of a system is optimized when both the technology and the
organization mutually adjust to each other until a satisfactory fit is obtained.
 What is Business Analytics?

Analytics is the use of:

data,
information technology,
statistical analysis,
quantitative methods, and
mathematical or computer-based models
to help managers gain improved insight about their
business operations and
make better, fact-based decisions.
1-1
 What is Business Analytics?

Business Analytics Applications

Management of customer relationships
Financial and marketing activities
Supply chain management
Human resource planning
Pricing decisions
Sport team game strategies
1-2
 What is Business Analytics?

Importance of Business Analytics

There is a strong relationship of BA with:
- profitability of businesses
- revenue of businesses
- shareholder return
BA enhances understanding of data
BA is vital for businesses to remain
competitive 1-3
 Evolution of Business Analytics

• Operations research
• Management science
• Business intelligence
• Decision support systems
• Personal computer software

1-4
 Scope of Business Analytics

Descriptive analytics
- uses data to understand past and
present
Predictive analytics
- analyzes past performance
Prescriptive analytics
- uses optimization techniques
1-5
 Data for Business Analytics

Categorical (nominal) Data

Data placed in categories according to a
specified characteristic
Categories bear no quantitative relationship
to one another
Examples:
- customer’s location (India,America,
Europe, Asia)
1-6
- employee classificationEducation,
(manager,
Copyright © 2013 Pearson
Inc. publishing as
 Data for Business Analytics

Ordinal Data
Data that is ranked or ordered according to
some relationship with one another
No fixed units of measurement
Examples:
- college football rankings
- survey responses
(poor, average, good,
1-7 very good,
 Data for Business Analytics

Interval Data
Ordinal data but with constant differences
between observations
No true zero point
Ratios are not meaningful
Examples:
- temperature readings
- GMAT scores 1-8
 Data for Business Analytics

Ratio Data
Continuous values and have a natural zero
point
Ratios are meaningful
Examples:
- monthly sales
- delivery times
1-9
 Decision Models

Model:
An abstraction or representation of a real
system, idea, or object
Captures the most important features
Can be a written or verbal description, a
visual display, a mathematical formula, or a
spreadsheet representation

1-10
 Key Purpose of Using IT in
Business
• Office Productivity
• Departmental IT Applications
• Online Transaction Processing System
• Business Process / Model Innovation
• Decision Support Systems
Classification of IT Applications
• Mainframe System, Client-Server Systems,
Web-based Systems
• Application Users
– Customer-facing Applications, Supplier-facing
Applications, Employee facing Applications
• Bespoke Application Development vs.
Enterprise Application (ERP, CRM, etc.)
Implementation
 Types of Digital Data
• Unstructured Data
– Memos, chats, presentation slides, images,
videos, white papers, etc.
• Semi-structured Data
– XML, emails, etc.
• Structured Data
– Data stored in databases
 Structured Data
• Conforms to a data model
• Typically stored in RDBMS
• Easy to store, secure, update and delete.
• Easy to search.
 Unstructured Data
• Does not conform to any data model.
• Includes bitmap objects such as image,
video or audio and textual objects such as
Word docs, Excel sheets, web pages, etc.
• Semantic search is evolving.
 Semi-structured Data
• Same as structured data with one exception:
semi-structured data requires looking at the
data itself to determine structure.
 Multi-dimensional Data
• Sales data of T-shirts
– Time (year, quarter, month, day)
– Region (nation, state, district)
– Product Category (and sub-categories)
– Market Segment (and sub-segments)
Unstructured Data
 What is Unstructured Data?

Does not
conform to Cannot be
any data stored in
Has no model form of
easily rows and
identifiable columns as
structure in a
database
Unstructured
data
Not in any
Does not particular
follow any format or
rule or sequence
semantics Not easily
usable by a
program
 Where does Unstructured Data Come from?

Web pages
Memos
Videos (MPEG,
etc.)
Images (JPEG,
GIF, etc.)
Body of an e-mail
Unstructured data Word document
PowerPoint
presentations
Chats

Reports

Whitepapers
Surveys
How to Store Unstructured Data?

Sheer volume of unstructured data and its unprecedented

Storage growth makes it difficult to store. Audios, videos, images,
Space etc. acquire huge amount of storage space

Scalabili Scalability becomes an issue with increase

ty in unstructured data

Retrieve Retrieving and recovering unstructured

informati data are cumbersome

Challenges faced on
Ensuring security is difficult due to
Security varied sources of data (e.g. e-mail, web
pages)

Update
and Updating, deleting, etc. are not easy due to
delete the unstructured form
Indexing
and Indexing becomes difficult with increase in data.
searching Searching is difficult for non-text data
 How to Store Unstructured Data?

Change Unstructured data may be be converted to formats which are easily

managed, stored and searched. For example, IBM is working on
formats providing a solution which converts audio , video, etc. to text

New Create hardware which support unstructured data

hardwa either compliment the existing storage devices or be a
stand alone for unstructured data
re

RDBM Store in relational databases which support

Possible solutions S/ BLOBs which is Binary Large Objects
BLOBs

XML Store in XML which tries to give some structure to

unstructured data by using tags and elements

CAS Organize files based on their metadata

“
 How to Extract Information from Unstructured
Data?
Interpretati Unstructured data is not easily interpreted by conventional
on search algorithms

As the data grows it is not possible to put tags

Tags manually

Designing algorithms to understand the meaning

Indexing of the document and then tag or index them
accordingly is difficult
Challenges faced
Deriving Computer programs cannot automatically
meaning derive meaning/structure from unstructured
data

File
Increasing number of file formats make it difficult
formats to interpret data

Classificati
Different naming conventions followed across the
on/ organization make it difficult to classify data.
Taxonomy
 How to Extract Information from Unstructured
Data?
Unstructured data can be stored in a virtual repository and be
Tags automatically tagged. For example, Documentum provides this
type of solution

Text Text mining tools help in grouping and classifying

unstructured data and analyze by considering
mining grammar, context, synonyms ,etc.

Application platforms like XOLAP help

Application extract information from e-mail and XML
Possible solutions platforms based documents

Classificatio Taxonomies within the organization can be

n/ managed automatically to organize data in
Taxonomy hierarchical structures

Naming Following naming conventions or standards

conventions/ across an organization can greatly improve
standards storage and retrieval
Semi-structured Data
What is Semi-structured Data?
Does not
conform to
a data
model but
contains Cannot be
tags & stored in
Similar elements form of
entities are (metadata) rows and
grouped columns as
Semi- in a
database
structured
data The tags
Attributes and
in a group elements
may not be describe
the same how data is
Not stored
sufficient
Metadata
 How to Manage Semi-structured Data?

Some ways in which semi-structured data is managed and stored

Graph-based
Schemas XML
data models
• Describe the • Contain data • Models the
structure and on the leaves data using
content of of the graph. tags and
data to some Also known elements
extent as ‘schema
less’
• Assign • Schemas are
meaning to • Used for not tightly
data hence data coupled to
allowing exchange data
automatic among
search and heterogeneo
indexing us sources
 How to Store Semi-structured Data?

Storage cost Storing data with their schemas increases cost

Semi-structured data cannot be stored in

RDBMS existing RDBMS as data cannot be mapped
into tables directly

Irregular and
partial Some data elements may have extra
information while others none at all
structure
Challenges faced
Implicit In many cases the structure is implicit.
Interpreting relationships and
structure correlations is very difficult

Evolving Schemas keep changing with

schemas requirements making it difficult to
Distinction capture it in a database

between Vague distinction between schema and data exists at

schema and times making it difficult to capture data
data
 How to Store Semi-structured Data?

XML allows to define tags and attributes to store data.

Data can be stored in a hierarchical/nested structure
XML

Semi-structured data can be stored in a relational

database by mapping the data to a relational
RDBMS schema which is then mapped to a table

Possible solutions
Special Databases which are specifically designed to store
purpos semi-structured data
e DBMS

OEM Data can be stored and exchanged in the form of graph

where entities are represented as objects which are the
vertices in a graph
 How to Extract Information from Semi-structured Data?

Semi-structured is usually stored in flat

files which are difficult to index and
Flat files search

Data comes from varied sources which is

Heterogene difficult to tag and search
Challenges faced
ous sources

Incomplete/ Extracting structure when there is none and

irregular interpreting the relations existing in the structure
structure which is present is a difficult task
How to Extract Information from Semi-structured Data?

Indexing data in a graph-based model

Indexing enables quick search

Allows data to be stored in a graph-based data

OEM model which is easier to index and search

Possible solutions

XML Allows data to be arranged in a hierarchical or

tree-like structure which enables indexing and
searching

Mining Various mining tools are available which search

tools data based on graphs, schemas, structure, etc.
Structured Data
 What Is Structured Data?

Conforms to
a data model Data is
stored in
form of rows
Similar and columns
entities are
grouped (e.g.,
relational
Structured database)
data
Attributes in Data resides
a group are in fixed fields
the same Definition, within a
format & record or file
meaning of
data is
explicitly
known
 Where does Structured Data Come from?

Databases (e.g.,
Access)

Spreadsheets

Structured Data
SQL

OLTP systems
 Structured Data: Everything in its Place
r

Fully described datasets

\.
r 'I

Clearly defined categories and sub-categories

\.. ~
r 'I

Data neatly placed in rows and columns

\.. ~

r
""
Data that goes into the records is regulated by a well-
defined structure
\. ~

Indexing can be easily done either by the DBMS itself or

manually
\. ~
 Structured Data

Semi-structured Structured

Name E-mail First Name Last Name E-mail Id Alternate

E-mail Id

Patrick Wood ptw@dcs.abc.ac.uk, Patrick Wood ptw@dcs.ab p.wood@y

p.wood@ymail.uk c.ac.uk mail.uk

First name: Mark MarkT@dcs.ymail.ac.uk Mark Taylor MarkT@dcs

Last name: Taylor .ymail.ac.uk

Alex Bourdoo AlexBourdoo@dcs.ymail Alex Bourdoo AlexBourdo

.ac.uk o@dcs.ymai
l.ac.uk
 Ease with Structured Data-Storage

Data types – both defined and user defined help

Storage with the storage of structured data

Scalability is not generally an issue with

Scalability increase in data

Ease with structured

data
Security

Update and Updating, deleting, etc. is easy due to

delete structured form
 Ease with Structured Data-
Retrieval

Retrieve A well-defined structure helps in easy

information retrieval of data

Indexing Data can be indexed based not only on a

and text string but other attributes as well. This
enables streamlined search
searching
Ease with structured
data
Mining Structured data can be easily mined and
data knowledge can be extracted from it

BI BI works extremely well with structured data.

operations Hence data mining, warehousing, etc. can be
easily undertaken
 OLTP vs. OLAP
• Operational data • Multi-dimensional data
• Used for managing • ETLed into data
and executing business warehouse
tasks • Used for planning,
• Very frequent updates budgeting, forecasting and
and inserts decision making
• Star or snowflake model
• ER model
• Periodic updates for
• Regular backups
refresh of data
needed
 OLAP Architectures
• Multidimensional OLAP
• Relational OLAP
• Hybrid OLAP
 OLAP Operations
• Slice – filtering/selecting data using one dimension of the
cube.
• Dice – filtering data using two or more dimensions.
• Roll-up or Drill-up – viewing data at a higher level of
hierarchy of a dimension.
• Drill-down – viewing data at a lower level of hierarchy of
a dimension.
• Pivot – rotating data axes in view.
• Drill-across – viewing data across two or more fact tables.
• Drill-through – tracing data back to the operational data
source
 SMART KPIs
• Name – Average training days per employee
• Description – Total number of full-time days equivalent
spent in training by all confirmed employees (on-contract
and trainees are excluded). Training could be delivered
online or in classroom or using both means.
• Unit of Measure – number of days
• Frequency – annual
• Data values – target of 5 days; minimum 2 days; maximum
10 days
• Formula – Number of total full-days days equivalent
divided by number of confirmed employees
 SOCIAL MEDIA
Social media is defined as a group of Internet-based
applications that allow the creation and exchanges of user-
generated content.

Social media gives users an easy-to-use way to

communicate and network with each other on an
unprecedented scale.

Facebook, the social networking site, recorded more

than 845 million active users as of December 2011.
 Classification of social media
9 different types of social media:

 Online social networking

 Blogging
 Micro-blogging
 Wikis
 Social news
 Social bookmarking
 Media sharing
 Opinion, reviews, and ratings
 Answers
 What is social media mining?
Social media mining is extracting information from social
media.

Primary objectives of the data mining process are to

effectively handle large-scale data, extract actionable
patterns, and gain insightful knowledge.

Users on Twitter generate over 400 million Tweets

everyday
 The reasons for growth of social
media mining
Social media growth is driven by these:
(1) How can a user be heard?
(2) Which source of information should a user use?
(3) How can user experience be improved?

Answers to these questions are hidden in the social media data.

 The amount of data!
For example, Facebook and Twitter report Web data from
approximately 149 million and 90 million unique U.S. visitors per
month, respectively.
According to the video sharing site YouTube,5 more than 4 billion
videos are viewed per day, and 60 hours of videos are uploaded
every minute.
The picture sharing site Flickr, as of August 2011, hosts more than 6
billion photo images.
Web-based, collaborative, and multilingual Wikipedia hosts over 20
million articles attracting over 365 million readers.
 Challenges in social media mining
Social media data are
vast,
noisy,
distributed,
unstructured,
dynamic.

These characteristics pose challenges to data mining tasks to invent

new efficient techniques and algorithms.
Tools used for social media mining

Ne't"i'
Business.
Select I
1 etail1!.:D"~~

T a g!Xooa - - a. g;
C.Jcl°ud w ith Na-0,e ·· L:
Styles N et • ■.. ork
Ov-e.r i iew,
· Sy.so mos,·I _ _ r,n is:oo.v er ...

0
Business;·
lnfeJlig.en ce . · Promising
f \f" Soc ial M· 1a. .C.ur,aUon
... c HemyAP - o ls, hat
. 1- .. ata Help r~ ake ...
;-r a nsfor Mihifl.Q!,
Scout

0
mingi - e!Xt ... T ext
La.osr r1in in'gi .. . .

e ~te
Big
fling:·
Cant,ent. ...
 Applications of social media mining

Personalization
Targeted marketing
Suggesting choices

Community Analysis
Sentiment Analysis and Opinion Mining
Social Recommendation
Influence Modeling
Research Issues in social media mining
• Community Analysis
• Sentiment Analysis and Opinion Mining
• Social Recommendation
• Influence Modeling
• Information Diffusion and Provenance
• Privacy, Security and Trust
 Facebook assignment questions
1. Why do people use Facebook and what do they do when they are
there?
2. Evaluate the success of advertising on Facebook.
3. Evaluate the success of Facebook fan pages
4. Evaluate Facebook Platform and Facebook for websites.
5. Which of the three options should Facebook emphasize as it seeks
to monetize.
What do people do on on-line social networks
Add or delete
friends
Add content E-mail
8% View profiles
to profiles 5%
8% and pictures of
friends
View own
35%
profile
9%

View profiles
and pictures of
stangers
35%

Percentages of all unique action clicks

excluding navigation, platform and IM
Who is viewing whom?
Men Women

They They They They

Know Don't Know Know Don't Know
Men
8% 8% 19% 22%
Viewing
Women
10% 8% 17% 10%
Viewing
\.__ _ _ _ _ _ _ _A__ _ _ _ _ _ _ _)
y y
1/3 2/3
Adding Content
To Own Profile 2/3 1/3
Profile is Private 1/3 2/3
 Here‘s why. Sample
questions:
In what ways are my fans like my other customers?

What do I actually know about my fans and followers on top of

their age?

Can I group my followers into segments?

Can I target my followers based on what they (are) like ?

Which ones are creating the most activity?

What on earth are all the other ones doing?

How similar/different is my competitors fanbase?

IZ]
Company pages
Best Buy I % Become a Fan I
»

~
Wall Info Shop+ Share Idea Giftr My Store Twelpforce

Q Filters Create an Ad
Brandon Phipps Absolute ly AWFUL Customer Service at Best Buy
store #448 in Plymouth Meeting , PA today. Store management would not Facebook Pages
even resolve issue. Do NOT shop there!!
Buyer be happy."' 12 hours ago • View Post

Mika Lynne Salchow worst experience ever at the spring fi eld , mo

store tonight. you better step up your game or i'm giving up my
premiere silver to shop elsewhere .
13 hours ago • Like Comment Facebook Pages help you
discover new artists,
George Frederic Werner *cookie cutter comp laint with no
businesses, and brands as
detail s so we're all left guess ing as to what happened* Care to well as connect with those
you already love ,
elaborate?
13 hours ago · Li ke • Flag
More Ads
Mika Lynne Salchow Bought a computer had to take it bac k.
Then take it back again they wouldn't help me. They d idn't t ry At
al l and now I'm stuck with a broken one unt il I the other one I
want comes in Tuesday night. Because i can't get it on line and
they won't let me pay for it unti l then . And it's on ly a m ight I
m ight get it. But I need th is computer th is week. This can't wait a
week fo r one from on line or anythin g.
13 hours ago • Li ke • Flag

Write a comment ...

Kellie Gruntz I wi ll never shop at your store again . I waited for over
an hour to receive help, w hich i d id not get. I wasn't even greeted as i
entered the store tonight. While waiting i couldn't help but notice about
Add to My Page's Favorites 4 or 5 employees walk by me without even offering assistance as i tried
to grab their attention but was just ignored ...
Suggest to Friends
See More

Welcome to Best Buy's official fan

page.

Fans
6 of I, 108,879 fans See All
Strategy: digital strategy
Digital Strategy
vs. social strategy
Social Strategy
creates electronic platforms to reduce creates platforms to help people improve
marketing or customer acquisition and existing relationships or
service costs build new ones

Company
Company

/
i
o+-<

o+-<
o+-<
~I
o+-< o+-<

o+-<

facebool<. t,.dvertising

o-+-<
o+-<
CLOUD COMPUTING

A style of computing where scalable and elastic IT

enabled capabilities are provided as a service to
customers using Internet technologies .
 Do0 you
0 Use the Cloud?

Dropbox
ove~tock.com'

flickr'·
G
SkyDrive BJ
iCloud
G .. D photobucket
L EARNING O BJECTIVES

• Understand cloud computing

• Know the rationale for cloud computing

• Know about the different types of cloud infrastructure and services

• Understand the challenges of migrating to the cloud

• Get an understanding of the economics of cloud computing

• Understand Internet-of-Things (IoT)

• Know about sensors and actuators

• Understand the architecture of IoT

3
C LOUD C OMPUTING

Advantages and Features of Cloud Computing

 Scalability
 Elasticity
 Measured Use
 Usage-Based Pricing
 Managed Services
 Service Levels
 Ubiquitous Access
 Heterogeneity
 Reduced Setup Time
 Resource Pooling

Cloud services pricing can be based on usage and needs of the client.

4
C LOUD C OMPUTING

Types of Cloud Infrastructure

• Private Cloud: A private cloud is meant for a single client whereas a public cloud is
shared by many clients.

• Public Cloud
 Hybrid Cloud
 Community Cloud

Cloud Service Models

• Infrastructure-as-a-Service (IaaS): IaaS provides data centre facilities, PaaS provides

a software development facility, and SaaS provides applications over the internet.

• Platform-as-a-Service (PaaS)

• Software-as-a-Service (SaaS)

5
1.Infrastructure
l. Infrastructure as
as aa Service
Servic,e (IaaS)
(IaaS)

2.
2. Platform
Platform as
as aa Service
Service (PaaS)
(PaaS)

3.
3. Software
Software as
as aa Service
Service (SaaS)
(SaaS)
 Infrastructure
Infrastructur,e as
as aa Service
Service (IaaS)
(IaaS)

IaaS is the delivery of technology infrastructure as an on

demand scalable service.
IaaS provides access to fundamental resources such as
physical machines, virtual machines, virtual storage, etc.

• Usually billed based on usage

• Usually multi tenant virtualized environment
• Can be coupled with Managed Services for OS and
application support
 IaaS Examples

QpSource

GO
GRID
a
terremark"

ENTERTAINMENT
 Platform
Platform as
as aa Service
Service (PaaS)
(PaaS)

PaaS provides the runtime environment for applications,

development & deployment tools, etc.

PaaS provides all of the facilities required to support the

complete life cycle of building and delivering web
applications and services entirely from the Internet.

Typically applications must be developed with a particular

platform in mind

• Multi tenant environments

• Highly scalable multi tier architecture
 P LATFORM AS A S ERVICE (PAA S)
Now you don't need to invest millions of SSS to get that development
foundation ready for your developers. The PaaS provider will deliver the
platform on the web, and in most of the cases you can consume the
platform using your browser, i.e. no need to download any software.

PaaS Layers
•Cloud OS
•Cloud Middleware

PaaS Examples

Google App Engine and Windows Azure are examples of Cloud OS.
OrangesScape & Wolf PaaS are cloud middleware.
 PaaS
a Examples
p

am,azon
·wei services-

Azure
t-Joyent
0
rackspace.
 S OFTWARE AS A S ERVICE (S AA S)
This is the Top most layer of the cloud computing stack - directly
consumed by end user – i.e. SaaS (Software as a Service).

• Next generation Saas promises everything as a service over the internet.

• Cloud computing started with a similar premise.

•A computing paradigm where there exists a flexible set of computing resources

across the internet.

•
 SaaS
aa Examples
pl

~
e
~
Go ole~ Apps C,
~ postini ~
~~ \_:JI
ca.
~--
._

Microsoft Online Services:: Bu$iness Producuvity Online Suite

I
facebook
• Reduce spending on technology

• Globalize your work force

BENEFITS OF CLOUD
on the cloud

• Reduce capital cost

• Improve accessibility

• Improve flexibility

• Less personal training is needed

• Monitor project more effectively

• Achieve economic of scale

 CLOUD SECURITY
• SECURITY AND PRIVACY-
• Identify management
• Physical and personal
• security
• Availability
• Application security
• Privacy
• Legal issues
C LOUD C OMPUTING

Challenges of Migrating to the Cloud

• Tight coupling between hardware and software

• Applications that do not scale

• The cost is not justified

• IT staff may not have the relevant skills

• Security is a key concern

16
C LOUD C OMPUTING

5 Major Reasons for Adopting the Cloud

• Applications that have volatile demand

• Low business risk and commodity applications

• Applications that require collaboration

• Big Data storage and analysis

• Capital available for infrastructure is low

17
I NTERNET - OF -T HINGS

Examples of IoT

• Logistics Management with IoT

• Healthcare with IoT

Managing IoT Systems

• Massive data flows

• Massive volume of data
• Variety in data

18
I NTERNET - OF -T HINGS

Sensors

A sensor is a device that detects events or changes is its physical environment and provides an
electronic output.

Actuators

Actuators are tools or mechanisms that can change their own state or the state of other devices
and machines.

19
I NTERNET - OF -T HINGS

CHALLENGES OF CLOUD COMPUTING AND IoT

• Security

• Privacy

• Internet access

20
Multidimensionality
• Multidimensionality
The ability to organize, present, and analyze data by
several dimensions, such as sales by region, by
product, by salesperson, and by time (four dimensions)
• Multidimensional presentation
• Dimensions
• Measures
• Time
Multidimensionality
• Multidimensional database
A database in which the data are organized specifically
to support easy and quick multidimensional analysis
• Data cube
A two-dimensional, three-dimensional, or higher-
dimensional object in which each dimension of the
data represents a measure of interest
Multidimensionality
• Cube
A subset of highly interrelated data that is organized
to allow users to combine any attributes in a cube
(e.g., stores, products, customers, suppliers) with any
metrics in the cube (e.g., sales, profit, units, age) to
create various two-dimensional views, or slices, that
can be displayed on a computer screen
Multidimensionality
(y) :;2006

/ / 7 / /
East 70 1160 1110 14!0
Locations (IL) /
(L) West 80 90 1140 mo I/
120 1100 1160
I/

/
INluts Screws Bolits Waslhe1rs
le ast 50 40
West 60 / / 7 / /
70 1120 2006
1-----1--=-=-----1---=-=-=----1-----,:
1-=-
o ---V
Ce11tirall 1100 30 2005 IEast 60 50 100 30
80 140
._______,.____._______,._______J/ 2004 ~ (IL) . /
51
70 130 20
INluts Screws Bol~s Waslhers \ We /
Products (P) . Central 1110 90 150 4l0 /
Nuts Screws Bolts Waslhers

(y):;200 4
/ / 7 / /
East 50 40 20
I/
(l)
West 60 70 1.20 0
/
Central mo 80 140 30
/
Nuts Screws Bolits Waslhers

(P)

Cube Anal~ is and Views

Multidimensionality

Multidimensional tools and vendors

• Tools with multidimensional capabilities often work in
conjunction with database query systems and other OLAP
tools
Multidimensionality

I
I
I I I

...Iioe ai. Di~e . ie

SIice-and-Dice Cu bes
Data Visualization
• Data visualization
A graphical, animation, or video presentation of data
and the results of data analysis
• The ability to quickly identify important trends in corporate
and market data can provide competitive advantage
• Check their magnitude of trends by using predictive models
that provide significant business advantages in applications
that drive content, transactions, or processes
Data Visualization
• New directions in data visualization
• In the 1990s data visualization has moved into:
• Mainstream computing, where it is integrated with decision
support tools and applications
• Intelligent visualization, which includes data (information)
interpretation
Data Visualization

V'1su al Spreadsheet of R'1sk Anal ysis

Data Visualization
__ .... _
...

Visua l Spreadsheet of Credit Modeling

Data Visualization

• New directions in data visualization

• Dashboards and scorecards
• Visual analysis
• Financial data visualization
Mobile Web Trends
• Handset browsing • Proliferation, new
• Multiple platforms habits will grow device categories
• Technical slowly
• Increasing technical
fragmentation
sophistication means
• Limited midlife Users mobile devices are
updates better Web citizens
Mobile
Platforms and • Falling prices
Devices
Technology

• Web providers will Content and

lead mobile Business
innovation Services Infrastructure
• Content adaptation Operators and • M-payment disappointments
will be important
Networks • Location services will be key
• Ecosystem battles • Personalization will be more
• The mobile Web will be
important than searching
broadly affordable
• Capacity will be
adequate
 Mobile Carriers:
Searching for Blue Oceans
New Traditional Innovative
Businesses Businesses Businesses

Competition
Competition TV M2M
Internet
Wireless e-mail Advertising-funded
players
services
Cable TV Payments ■
■
■

Banks ■

Media sales Mobile Voice New roles for cellular?

Device and Data
manufacturers Corporate apps. Blue Oceans
Music portals ■ Redefine the market
■

Red Oceans
■

Network ■
■
Fierce competition
operators
■

Web 2.0 Pink Oceans

..... Strong competition
The Business Value of Mobility
Other
Shorter time to market
Increased competitiveness
Improved electronic data management
Improved customer satisfaction
Improved quality of service
Business efficiency — shorter lead times
External communications with clients & partners
Business efficiency — cost savings
Improvements in team collaboration
Quicker response to clients
Internal communications — executive level
Internal communications across the organisation
Increase in staff productivity

0 20 40 60 80 100 120 140

N = 212 mobile professionals, Source: U.K. survey, 2H17

 Key Influencing Factors Driving EMM Adoption

Preventing
shadow IT risks
Service providers should
align their value proposition
along these influencing Addressing increasing
factors while designing their complexity
product suite to address
these key aspects of their Embracing the cloud
business processes.

Preparing for a scalable and flexible enterprise

Combating the influx of BYOD

Evolving to address the app-centric future of enterprises

 K e y t a k e aw a y t e x t
Preventing data leakage and security infarctions

Source: Frost & Sullivan