1. PRELIM TOPICS

2. IS operations management is concerned with the use of hardware, software, network, and personnel resources in data centers Operational activities that must be managed  Computer system operations  Network management  Production control  Production support MANAGING IS OPERATIONS 14-2

3. Recruiting, training and retaining qualified IS personnel Evaluating employee job performance and rewarding outstanding performance with salary increases and promotions Setting salary and wage levels Designing career paths IT STAFF PLANNING 14-3

4. Chief Information Officer (CIO)  Oversees all uses of information technology in many companies, and brings them into alignment with strategic business goals Chief Technology Officer (CTO)  In charge of all information technology planning and deployment  Manages the IT platform  Second in command IT EXECUTIVES 14-4

5. MIDTERM TOPICS

6. GLOBAL BUSINESS DRIVERS Business requirements caused by the nature of the industry and its competitive or environmental forces Examples of global drivers:  Customers  Products  Operations  Resources  Collaboration 14-6

7. GLOBAL IT PLATFORMS Hardware Difficulties  High prices  High tariffs  Import restrictions  Long lead times for government approvals  Lack of local service or spare parts  Lack of documentation tailored to local conditions 14-7

8. GLOBAL IT PLATFORMS Software Difficulties  Packages developed in Europe may be incompatible with American or Asian versions  The software publisher may refuse to supply markets that disregard software licensing and copyright agreements 14-8

9. FINAL TERM TOPICS

10. IT SECURITY, ETHICS, AND SOCIETY Information technology has both beneficial and detrimental effects on society and people  Manage work activities to minimize the detrimental effects of information technology  Optimize the beneficial effects 13-10

11. BUSINESS ETHICS Ethics questions that managers confront as part of their daily business decision making include  Equity  Rights  Honesty  Exercise of corporate power 13-11

12. CATEGORIES OF ETHICAL BUSINESS ISSUES 13-12

13. CORPORATE SOCIAL RESPONSIBILITY THEORIES Stockholder Theory  Managers are agents of the stockholders  Their only ethical responsibility is to increase the profits of the business without violating the law or engaging in fraudulent practices Social Contract Theory  Companies have ethical responsibilities to all members of society, who allow corporations to exist Stakeholder Theory  Managers have an ethical responsibility to manage a firm for the benefit of all its stakeholders  Stakeholders are all individuals and groups that have a stake in, or claim on, a company 13-13

14. PRINCIPLES OF TECHNOLOGY ETHICS Proportionality - The good achieved by the technology must outweigh the harm or risk; there must be no alternative that achieves the same or comparable benefits with less harm or risk Informed Consent - Those affected by the technology should understand and accept the risks Justice  The benefits and burdens of the technology should be distributed fairly  Those who benefit should bear their fair share of the risks, and those who do not benefit should not suffer a significant increase in risk Minimized Risk - Even if judged acceptable by the other three guidelines, the technology must be implemented so as to avoid all unnecessary risk 13-14

15. AITP STANDARDS OF PROFESSIONAL CONDUCT 13-15

16. RESPONSIBLE PROFESSIONAL GUIDELINES A responsible professional  Acts with integrity  Increases personal competence  Sets high standards of personal performance  Accepts responsibility for his/her work  Advances the health, privacy, and general welfare of the public 13-16

17. COMPUTER CRIME Computer crime includes  Unauthorized use, access, modification, or destruction of hardware, software, data, or network resources  The unauthorized release of information  The unauthorized copying of software  Denying an end user access to his/her own hardware, software, data, or network resources  Using or conspiring to use computer or network resources illegally to obtain information or tangible property 13-17

18. HACKING Hacking is  The obsessive use of computers  The unauthorized access and use of networked computer systems Electronic Breaking and Entering  Hacking into a computer system and reading files, but neither stealing nor damaging anything Cracker  A malicious or criminal hacker who maintains knowledge of the vulnerabilities found for private advantage 13-18

19. COMMON HACKING TACTICS Denial of Service  Hammering a website’s equipment with too many requests for information  Clogging the system, slowing performance, or crashing the site Scans  Widespread probes of the Internet to determine types of computers, services, and connections  Looking for weaknesses Sniffer  Programs that search individual packets of data as they pass through the Internet  Capturing passwords or entire contents 13-19

20. COMMON HACKING TACTICS Spoofing - Faking an e-mail address or Web page to trick users into passing along critical information like passwords or credit card numbers Trojan House - A program that, unknown to the user, contains instructions that exploit a known vulnerability in some software Back Doors - A hidden point of entry to be used in case the original entry point is detected or blocked Malicious Applets - Tiny Java programs that misuse your computer’s resources, modify files on the hard disk, send fake email, or steal passwords 13-20

21. COMMON HACKING TACTICS War Dialing - Programs that automatically dial thousands of telephone numbers in search of a way in through a modem connection Logic Bombs - An instruction in a computer program that triggers a malicious act Buffer Overflow - Crashing or gaining control of a computer by sending too much data to buffer memory Password Crackers - Software that can guess passwords Social Engineering - Gaining access to computer systems by talking unsuspecting company employees out of valuable information, such as passwords Dumpster Diving - Sifting through a company’s garbage to find information to help break into their computers 13-21

22. UNAUTHORIZED USE AT WORK Unauthorized use of computer systems and networks is time and resource theft  Doing private consulting  Doing personal finances  Playing video games  Unauthorized use of the Internet or company networks Sniffers  Used to monitor network traffic or capacity  Find evidence of improper use 13-22

23. INTERNET ABUSES IN THE WORKPLACE  General email abuses  Unauthorized usage and access  Copyright infringement/plagiarism  Newsgroup postings  Transmission of confidential data  Pornography  Hacking  Non-work-related download/upload  Leisure use of the Internet  Use of external ISPs  Moonlighting 13-23

24. SOFTWARE PIRACY Software Piracy  Unauthorized copying of computer programs Licensing  Purchasing software is really a payment for a license for fair use  Site license allows a certain number of copies A third of the software industry’s revenues are lost to piracy 13-24

25. THEFT OF INTELLECTUAL PROPERTY Intellectual Property  Copyrighted material  Includes such things as music, videos, images, articles, books, and software Copyright Infringement is Illegal  Peer-to-peer networking techniques have made it easy to trade pirated intellectual property Publishers Offer Inexpensive Online Music  Illegal downloading of music and video is down and continues to drop 13-25

26. VIRUSES AND WORMS A virus is a program that cannot work without being inserted into another program  A worm can run unaided These programs copy annoying or destructive routines into networked computers  Copy routines spread the virus Commonly transmitted through  The Internet and online services  Email and file attachments  Disks from contaminated computers  Shareware 13-26

27. ADWARE AND SPYWARE Adware  Software that purports to serve a useful purpose, and often does  Allows advertisers to display pop-up and banner ads without the consent of the computer users Spyware  Adware that uses an Internet connection in the background, without the user’s permission or knowledge  Captures information about the user and sends it over the Internet 13-27

28. SPYWARE PROBLEMS Spyware can steal private information and also  Add advertising links to Web pages  Redirect affiliate payments  Change a users home page and search settings  Make a modem randomly call premium-rate phone numbers  Leave security holes that let Trojans in  Degrade system performance Removal programs are often not completely successful in eliminating spyware 13-28

29. PRIVACY ISSUES The power of information technology to store and retrieve information can have a negative effect on every individual’s right to privacy  Personal information is collected with every visit to a Web site  Confidential information stored by credit bureaus, credit card companies, and the government has been stolen or misused 13-29

30. PRIVACY ISSUES Violation of Privacy  Accessing individuals’ private email conversations and computer records  Collecting and sharing information about individuals gained from their visits to Internet websites Computer Monitoring  Always knowing where a person is Mobile and paging services are becoming more closely associated with people than with places Computer Matching  Using customer information gained from many sources to market additional business services Unauthorized Access of Personal Files  Collecting telephone numbers, email addresses, credit card numbers, and other information to build customer profiles 13-30

31. PROTECTING YOUR PRIVACY ON THE INTERNET There are multiple ways to protect your privacy  Encrypt e-mail  Send newsgroup postings through anonymous remailers  Ask your ISP not to sell your name and information to mailing list providers and other marketers  Don’t reveal personal data and interests on online service and website user profiles 13-31

32. ERGONOMICS Designing healthy work environments  Safe, comfortable, and pleasant for people to work in  Increases employee morale and productivity  Also called human factors engineering 13-32

33. ERGONOMICS FACTORS 13-33

34. SOCIETAL SOLUTIONS Using information technologies to solve human and social problems  Medical diagnosis  Computer-assisted instruction  Governmental program planning  Environmental quality control  Law enforcement  Job placement 13-34

35. SECURITY MANAGEMENT OF IT The Internet was developed for inter-operability, not impenetrability  Business managers and professionals alike are responsible for the security, quality, and performance of business information systems  Hardware, software, networks, and data resources must be protected by a variety of security measures 13-35

36. INTERNETWORKED SECURITY DEFENSES Encryption  Data is transmitted in scrambled form  It is unscrambled by computer systems for authorized users only  The most widely used method uses a pair of public and private keys unique to each individual 13-36

37. PUBLIC/PRIVATE KEY ENCRYPTION 13-37

38. INTERNETWORKED SECURITY DEFENSES Firewalls  A gatekeeper system that protects a company’s intranets and other computer networks from intrusion  Provides a filter and safe transfer point for access to/from the Internet and other networks  Important for individuals who connect to the Internet with DSL or cable modems  Can deter hacking, but cannot prevent it 13-38

39. INTERNET AND INTRANET FIREWALLS 13-39

40. INTERNETWORKED SECURITY DEFENSES Email Monitoring  Use of content monitoring software that scans for troublesome words that might compromise corporate security Virus Defenses  Centralize the updating and distribution of antivirus software  Use a security suite that integrates virus protection with firewalls, Web security, and content blocking features 13-40

41. OTHER SECURITY MEASURES Security Codes  Multilevel password system  Encrypted passwords  Smart cards with microprocessors Backup Files  Duplicate files of data or programs Security Monitors  Monitor the use of computers and networks  Protects them from unauthorized use, fraud, and destruction 13-41

42. OTHER SECURITY MEASURES Biometrics  Computer devices measure physical traits that make each individual unique  Voice recognition, fingerprints, retina scan Computer Failure Controls  Prevents computer failures or minimizes its effects  Preventive maintenance  Arrange backups with a disaster recovery organization 13-42

43. OTHER SECURITY MEASURES In the event of a system failure, fault-tolerant systems have redundant processors, peripherals, and software that provide  Fail-over capability: shifts to back up components  Fail-save capability: the system continues to operate at the same level  Fail-soft capability: the system continues to operate at a reduced but acceptable level 13-43

44. OTHER SECURITY MEASURES A disaster recovery plan contains formalized procedures to follow in the event of a disaster  Which employees will participate  What their duties will be  What hardware, software, and facilities will be used  Priority of applications that will be processed  Use of alternative facilities  Offsite storage of databases 13-44

45. PROTECTING YOURSELF FROM CYBERCRIME 13-45

46. MARKS DISTRIBUTION Prelim Period5 Marks Midterm Period5 Marks Final Term Period40 Marks Total50 Marks