Note for chap 5 and 6 Môn Management information technology | Trường Đại học Quốc tế, Đại học Quốc gia Thành phố Hồ Chí Minh

lOMoAR cPSD| 58504431 MIS FINAL CHAPTER 5: A. Question:
5-1. What is IT infrastructure and what are the stages and drivers of IT infrastructure evolution?
Define IT infrastructure from both a technology and a services perspective. - Technical
perspective is defined as the shared technology resources that provide the platform for the firm's
specific information system applications. It consists of a set of physical devices and software
applications that are required to operate the entire enterprise.
- Service perspective is defined as providing the foundation for serving customers, working with
vendors, and managing internal firm business processes. In this sense, IT infrastructure focuses on
the services provided by all the hardware and software. IT infrastructure is a set of firm-wide
services budgeted by management and comprising both human and technical capabilities.
List each of the eras in IT infrastructure evolution and describe its distinguishing characteristics.
Evolution of IT infrastructure such as:
– General-purpose mainframe & minicomputer era: 1959 to present 1958 IBM first mainframes
introduced 1965 less expensive DEC minicomputers introduced.
– Personal computer era: 1981 to present
• 1981 Introduction of IBM PC.
• Proliferation in the 80s, 90s resulted in growth of personal software.
– Client/server era: 1983 to present
• Desktop clients networked to servers, with processing work split between clients andservers.
• Network may be two-tiered or multitier (N-tiered).
• Various types of servers (network, application, Web).
– Enterprise computing era: 1992 to present
• Move toward integrating disparate networks, applications using Internet standards and enterprise applications.
– Cloud Computing: 2000 to present
• Refers to a model of computing where firms and individuals obtain computing powerand
software applications over the Internet or other network.
• Fastest growing form of computing.
Define and describe the following: Web server, application server, multitiered
client/server architecture.
- Web server: software that manages requests for Web pages on the computer where they are stored
and that delivers the page to the user’s computer. lOMoAR cPSD| 58504431
- Application server: software that handles all application operations between browser-based
computers and a company’s back-end business applications or databases.
- Multitiered client/server architecture: client/server network in which the work of the entire
network is balanced over several different levels of servers.
Describe Moore’s Law and the Law of Mass Digital Storage.
- Moore's Law: The number of components on a chip with the smallest manufacturing costs per
component (generally transistors) had doubled each year.
- Law of Mass Digital Storage: The amount of digital information is roughly doubling every year.
The cost of storing digital information is falling at an exponential rate of 100 percent a year.
Describe how network economics, declining communications costs, and technology
standards affect IT infrastructure.
- Network economics: Metcalfe's Law helps explain the mushrooming use of computers by
showing that a network's value to participants grows exponentially as the network takes on more members.
- Declining communication costs: Rapid decline in communication costs and the exponential
growth in the size of the Internet is a driving force that affects the IT infrastructure.
- Technology standards: Growing agreement in the technology industry to use computing and
communication standards that define specifications that establish the compatibility of products
and the ability to communicate in a network.
5-2 What are the components of IT infrastructure?
List and describe the components of IT infrastructure that firms need to manage.
IT infrastructure includes hardware, software, and services: 1.
Computing platforms: Includes mainframes, midrange computers, desktop and
laptop computers, and mobile handheld devices 2.
Telecommunications services: Data, voice, and video connectivity between
employees, customers, and suppliers. 3.
Data management: Store, manage and analyze data. 4.
Application software: Includes enterprise resource planning, customer relationship
management, supply chain management, and knowledge management systems. 5.
Physical facilities management: Develop and manage the physical installations for
computing, telecommunications, and data management. 6.
IT management: Planning and developing the infrastructure, coordinating IT
services among business units, managing accounting for IT expenditures, and providing project management.
5-3 What are the current trends in computer hardware platforms? ●
Describe the evolving mobile platform, consumerization of IT, and cloud computing. lOMoAR cPSD| 58504431
- Mobile platform: more business computing is moving from PCs and desktop machines to mobile
devices like cell phones and smartphones.
- Grid computing: Connects geographically remote computers into a single network to create a
"virtual supercomputer" by combining the computational power of all computers on the grid. -
Cloud computing: the model of computing where firms and individuals obtain computing
capacity, data storage, and so ftware applications over the Internet, rather than purchasing.
● Explain how businesses can benefit from virtualization, green computing, and multicore processors. - Virtualization:
1. Run more than one operating system at the same time on a single machine.
2. Increase server utilization rates to 70 percent or higher.
3. Reduce hardware expenditures. Higher utilization rates translate into fewer
computersrequired to process the same amount of work.
4. Mask server resources from server users. 5. Reduce power expenditures.
6. Run legacy applications on older versions of an operating system on the same server asnewer applications.
7. Facilitates centralization of hardware administration. - Green computing: 1.
Businesses can minimize their impact on the environment by adopting better
practicesand technologies for designing, manufacturing, using, and disposing of
computers, servers, and other computing devices. 2.
Reducing power consumption in data server centers is the leading practice in the greencomputing movement.
- Multicore processors:
1. Cost savings by reducing power requirements and hardware sprawl.
2. Less costly to maintain as fewer systems need to be monitored.
3. Performance and productivity benefits beyond the capabilities of today's single- coreprocessors.
4. Run applications more efficiently than single-core processors – giving users the abilityto
keep working even while running the most processor intensive task in the background.
5-4 What are the current computer software platforms and trends? •
Define and describe open-source software and Linux and explain their business benefits.
Open-source software provides all computer users with free access to the program code so they
can modify the code, fix errors in it, or to make improvements. Open-source software is not owned by any company or individual. lOMoAR cPSD| 58504431
Linux is the most well-known open-source software. It's a UNIX-like operating system that can
be downloaded from the Internet, free of charge, or purchased for a small fee from companies that
provide additional tools for the software. Businesses can choose from a range of open-source
software including operating systems, office suites, Web browsers and games. Open source
software allows businesses to reduce the total 1-25 browsers, games. Open-cost of ownership. It
provides more robust software that's often more secure than proprietary software. •
Define Java and HTML5 and explain why they are important.
- Java: is a programming language that delivers only the software functionality needed for
aparticular task. With Java, the programmer writes small programs called applets that can run on
another machine on a network. With Java, programmers write programs that can execute on a
variety of operating systems and environments. It is important because of the dramatic growth of
Web applications. Also it is an operating system-independent, processor-independent,
objectoriented programming language that can run on multiple hardware platforms. It provides a
standard format for data exchange on Web sites.
- HTML5 is the latest version of Hypertext Markup Language, which is the code behind thescenes
that describes the web pages. 3 kinds of code make up HTML5 - HTML provides the
structure/architecture of your website; CSS is for the presentation (layout, colours and fonts) and
JavaScript makes things happen. HTML5 is one element that will allow you to do almost
everything you want online without needing extra software. Not only that, HTML5 is also free,
works across all devices and all modern browsers support it. HTML5 is responsible for reducing
the use of Flash for web design due to HTML5 being faster and Flash not being supported by
Apple devices. But it is important to know that HTML5 is here to stay. •
Define and describe web services and the role played by XML.
Web services offer a standardized alternative for dealing with integration across various computer
platforms. Web services are loosely coupled software components based on XML and open Web
standards that are not product specific and can work with any application software and operating
system. They can be used as components of Web-based applications linking the systems of two
different organizations or to link disparate systems of a single company. Web services are not tied
to a particular operating system or programming language. Different applications can use them to
communicate with each other in a standard way without timeconsuming custom coding.
XML provides a standard format for data exchange, enabling Web services to pass data from one process to another
Businesses use Web services to tie their Web sites with external Web sites creating an apparently
seamless experience for users. The benefit derives from not having to re-create applications for
each business partner or specific functions within a single company. •
Name and describe the three external sources for software.
- Software packages from a commercial software vendor: prewritten commercially available set of
software programs that eliminates the need for a firm to write its own software program for
certain functions, such as payroll processing or order handling. lOMoAR cPSD| 58504431
- Software-as-a-service: a business that delivers and manages applications and computer services
from remote computer centers to multiple users using the Internet or a private network. Instead
of buying and installing software programs, subscribing companies can rent the same functions
from these services. Users pay for the use of this software either on a subscription or a
pertransaction basis. The business must carefully assess the costs and benefits of the service,
weighing all people, organizational, and technology issues. It must ensure it can integrate the
software with its existing systems and deliver a level of service and performance that is acceptable for the business.
- Outsourcing custom application development: an organization contracts its custom software
development or maintenance of existing legacy programs to outside firms, frequently firms that
operate offshore in low-wage areas of the world An outsourcer often has the technical and
management skills to do the job better, faster, and more efficiently. to outsource the maintenance
of an IT infrastructure and the development of new systems to external vendors, a business must
weigh the pros and cons carefully. Service level agreements are formal contracts between
customers and service providers that define the specific responsibilities of the service provider
and the level of service expected by the customer.
Define and describe software mashups and apps.
- Mashups are new software applications and services based on combining different
onlinesoftware applications using high-speed data networks, universal communication standards,
and open-source code. Entrepreneurs are able to create new software applications and services
based on combining different online software applications. The idea is to take different sources
and produce a new work that is "greater than" the sum of its parts. Web mashups combine the
capabilities of two or more online applications to create a kind of hybrid that provides more
customer value than the original sources alone.
- Apps are small pieces of software that run on the Internet, on your computer, or on your cellphone
and are generally delivered over the Internet. Google refers to its online services as apps,
including the Google Apps suite of desktop productivity tools. But when we talk about apps
today, most of the attention goes to the apps that have been developed for the mobile digital
Platform. It is these apps that turn smartphones and other mobile handheld devices into
generalpurpose computing tools. Most of these apps are for the iPhone, Android, and BlackBerry
operating system platforms. Many are free or purchased for a small charge, much less than
conventional software. Mashups let a business combine previously developed Web applications
into new ones with new purposes. They don't have to re-invent the previous applications from
scratch-merely use them in the new processes.
5-5 What are the challenges of managing IT infrastructure and management solutions?
Name and describe the management challenges posed by IT infrastructure.
- Creating and maintaining a coherent IT infrastructure raises multiple challenges including: -
Making wise infrastructure investments: IT infrastructure is a major capital investment for the
firm. If too much is spent on infrastructure, it lies idle and constitutes a drag on firm financial lOMoAR cPSD| 58504431
performance. If too little is spent, important business services cannot be delivered and the firm’s
competitors will outperform the underinvesting firm - Coordinating infrastructure components: firms create IT infrastructures by
choosingcombinations of vendors, people, and technology services and fitting them together so
they function as a coherent whole.
- Dealing with scalability and technology change: as firms grow, they can quickly outgrow
theirinfrastructure. As firms shrink, they can get stuck with excessive infrastructure purchased in
better times. Scalability refers to the ability of a computer, product, or system to expand to serve
a larger number of users without breaking down.
- Management and governance: involves who will control and manage the firm’s ITinfrastructure.
Explain how using a competitive forces model and calculating the TCO of technology
assets helps firms make good infrastructure investments.
The competitive forces model can be used to determine how much to spend on IT infrastructure
and where to make strategic infrastructure investments, starting out new infrastructure initiatives
with small experimental pilot projects and establishing the total cost of ownership of information technology assets.
The total cost of owning technology resources includes not only the original cost of acquiring and
installing hardware and software, but it also includes the ongoing administration costs for hardware
and upgrades, maintenance, technical support, training, and even utility and real estate costs for
running and housing the technology. The TCO model can be used to analyze these direct and
indirect costs to help firms determine the actual cost of specific technology implementations.
B. Case study: Is BYOD Good for Business?
5-14 What are the advantages and disadvantages of allowing employees to use their personal smartphones for work? ADVANTAGE:
· Employees can use their own smartphones and would allow companies to enjoy all of the
same benefits of a mobile workforce without spending their own money on these devices.
· In addition, the companies are easier to keep track of each mobile device and to roll out
software upgrades or fixes because all employees were using similar devices.
· Besides that, a number of software products have emerged to help companies manage
diverse mobile platforms. These software products have capabilities for configuring
devices remotely, enforcing different sets of policies for different users and devices, and
managing applications running on all of them. DISADVANTAGE: lOMoAR cPSD| 58504431
· Because the employee works with more than one type of mobile device and operating
system, the company will need to quickly and flexibly confirm that their employees are
still able to remain performance.
· Moreover, companies providing adequate technical support for every employee could be
difficult with the variety of phones and operating systems available. ·
On the other hand, mobility puts assets and data at greater risk compared to if they
were only located within the company wall on company machines.
5-15 What management, organization, and technology factors should be addressed when
deciding whether to allow employees to use their personal smartphones for work? PEOPLE •
If employees are allowed to work with more than one type of mobile device and operating
system, companies need an effective way to keep track of all the devices employees are using. •
When employees make changes to their personal phones, such as switching cellular
carriers, changing their phone number or buying new mobile devices together. Companies will
need to quickly and flexibly ensure that their employees are still able to remain productive. •
Firms need an efficient inventory management system that keeps track of which devices
employees are using, where the device is located. Whether it is being used, and what software it is required. •
Software development teams need to have one professional focused on mobile
applications. Mobile apps need to connect to existing IT platforms and company-wide CRM, SCM,
and ERP systems. Companies need to ensure that sensitive or confidential information is secured. ORGANIZATION •
Integrate mobile devices to corporate and it strategy company needs to carefully examine
their business process and determine whether or not mobility makes sense for them •
The security, inventory management, support, integrating mobile devices into preexisting
IT functions and systems, and measuring return on investment should be addressed when deciding
whether to allow employees to use their personal smartphones for work. •
Firms need an efficient inventory management system for their employees' mobile devices.
Companies need to provide adequate technical support for every employee who is using a variety
of phones. When employees are not able to access critical data or encounter other problems, they
will need assistance from the information systems department. TECHNOLOGY •
With the variety of phones and operating system available, providing adequate technical
support for every employee could be difficult lOMoAR cPSD| 58504431 •
A firm software development teams can benefits from having one person specifically
focused on ensuring that new application will be easily usable and useful on smartphone •
The corporate IT resources are important for managing and maintaining a large number of
devices in an organization. The company’s networks must be configured to receive connections
from the employees’ mobile devices and operating systems to access the company’s information.
5-16 Evaluate how the companies described in this case study dealt with the challenges of BYOD.
Companies mentioned in this case dealing with the challenges associated with BYOD in a very
professional manner. The companies would evaluate the potential problem and determine
contingency plans for certain scenarios. Intel is an example of a company that has successfully
implemented an enterprise wide policy covering over 30000 employees devices. Their success
comes from the clear cut guidelines that they provided to their employees regarding information
that can and cannot be seen. They are allowed employees to select from many different levels of
mobile access, with increasing levels of security. SAP is another tech company that has
successfully implemented BYOD. The company develop a mobile platform made for work
application, allowing employees to work from anywhere.
5-16 Allowing employees to use their own smartphones for work will save the company
money. Do you agree? Why or why not?
I agree, using your own smartphone does save the company money. Devices are not cheap as
companies do not get them for free, with BYOD the company will not have to purchase a device
for you as you will already have access to your own smartphone. Spending time on training your
employees how to use the company devices also wastes time, the more time being wasted equals
less work being done which leads to less money being made. With your own smartphone you won’t
need the training for how to use the company's device and that will be cost effective for the company. CHAPTER 6: A. Question:
6-1 What are the problems of managing data resources in a traditional file environment? ●
List and describe each of the components in the data hierarchy.
- The data hierarchy includes bits, bytes, fields, records, and databases. Data are organized in a
hierarchy that starts with the bit, which is represented by either a 0 (off) or a 1 (on). Bits can be
grouped to form a byte to represent one character, number, or symbol. Bytes can be grouped to
form a field, such as a name or a date, and related fields can be grouped to form a record. Related
records can be collected to form files, and related files can be organized into a database. lOMoAR cPSD| 58504431 ●
Define and explain the significance of entities, attributes, and key fields. •
The entity is a person, place, thing, or event on which information can be obtained. •
The attribute is a piece of information describing a particular entity. •
The key field is a field in a record that uniquely identifies instances of that unique record
so that it can be retrieved, updated, or sorted ●
List and describe the problems of the traditional file environment.
Problems with the traditional file environment include:
1. data redundancy and inconsistency. Data redundancy is the presence of duplicate data in
multiple data files. In this situation, inconsistencies arise because the data can have
different meanings in different files.
2. program-data dependence. Program-data dependence is the tight relationship between data
stored in files and the specific programs required to update and maintain those files. This
dependency is very inefficient, resulting in the need to make changes in many programs
when a common piece of data, such as the postal code structure, changes.
3. lack of flexibility. Lack of flexibility refers to the fact that it is very difficult to create new
reports from data when needed. Ad-hoc reports are impossible to generate; a new report
could require several weeks of work by more than one programmer and the creation of
intermediate files to combine data from disparate files.
4. poor security. Poor security results from the lack of control over the data because the data are so widespread.
5. lack of data sharing and availability. Data sharing can be virtually impossible if data is
distributed in so many different files around the organization.
6-2 What are the major capabilities of database management systems (DBMS) and why is a
relational DBMS so powerful? ●
Define a database and a database management system. •
Database services many applications by centralizing data and controlling redundant data.
It is an electronic system that allows data to be stored easily accessed, manipulated, and updated. •
Database management system (DBMS) is software used to perform different operations,
like addition, access, updating, and electronics of the data. DBMS generally manipulates
the data to set the data format files names, record structure, and file structure. ●
Name and briefly describe the capabilities of a DBMS.
1. The data definition language is the formal language used by programmers to specify the
content and structure of the database.
2. The data manipulation language is the language used to manipulate data in the database. It
contains commands that permit end users and programming specialists to extract data from
the database to satisfy information requests and develop applications. lOMoAR cPSD| 58504431
3. The data dictionary is an automated or manual file that stores definitions of data elements
and data characteristics such as usage, physical representation, ownership, authorization, and security. ●
Define a relational DBMS and explain how it organizes data.
A relational DBMS is a DBMS designed specifically for relational databases. A relational database
refers to data that stores data in a structured format, using rows and columns. This makes it easy
to locate and access specific values within the database. Based on the relational database model
and relational present data sets as a collection of tables and provide relational operations to
manipulate the data in tabular form. Relational DBMS is a collection of programs and capabilities
that enable. It teams and others to create and update, administer, and otherwise interact with a
relational… The relational model of the relation database separates logical data structure from
physical storage structure, enabling database administrators to manage physical; data storage
without affecting access to the data as a logical structure. The distinction also applies to database
operations- logical operations allow an application to specify the content in needs and physical
operations determine how that data should be accessed then carried out the task. ●
List and describe the three operations of a relational DBMS. •
Select: creates a subset consisting of all records in the file that meet stated criteria •
Join: combines relational tables to provide the user with more information than is available in individual tables •
Project: creates a subset consisting of columns in a table, permitting the user to create new
tables that contain only the information required ●
Explain why non-relational databases are useful.
Using non-relational data can unlock patterns and value even within masses of variegated data: •
Massive data set organization: In the age of big data, non-relational data can not only store
massive quantities of information, but they also query these datasets with the case. Scale
and speed are crucial to the advantages of non-relational databases •
Flexible database expansion: data is not static. As more information is, collect a
nonrelational database can absorb these new data points, enriching the existing database
with new levels of granular value even if they don’t fit the data types of previously existing information. •
Multiple data structures: the data now collected from users takes on a myriad of forms,
from numbers and string to photo and video content, to message history. A database needs
the ability to store these various information formats, understand the relationship between
them and perform detailed queries. No matter what format your information is in, the non-
relational database can collate different information types together in the same document. •
Built for the cloud: a non-relational database can be massive. And as they can in some cases
grow exponentially, they need a hosting environment that can grow and expand them. The
cloud’s inherent scalability makes it an ideal home for the non-relational database. lOMoAR cPSD| 58504431
● Define and describe normalization and referential integrity and explain how they
contribute to a well-designed relational database. •
Normalization is the process of creating a small stable data structure from complex groups
of data when designing a relational database. Normalization streamlines relation database
design by removing redundant data such as repeating data groups. A Well designed
relational database will be organized around the information needs of business and will
probably be in some normalized form. A database that is not normalized will have problems
with insertion, deletion, and modification. •
Referential integrity rules ensure that relationships between coupled tables remain
consistent. When 1 table has a design key that points to another table, you may not add a
record to the table with the foreign key unless there is a responding record in the linked table.
● Define and describe an entity-relationship diagram and explain its role in database design.
An entity-relationship diagram is a data modeling technique that graphically illustrates an
information system’s entities and the relationships between those entities. An entity-relationship
diagram is a conceptual and representational model of data used to represent the entity framework
infrastructure role. Entity-relationship diagrams are used to model and design relational databases,
in terms of the specific tech to be implemented (in a physical data model). In software engineering,
an entity-relationship diagram is often an initial step in determining requirements for an
information system project. It’s also later used to model a particular database or database. A
relational database has an equivalent relational table and can potentially be expressed that way as needed.
6-3 What are the principal tools and technologies for accessing information from databases
to improve business performance and decision making? ●
Define big data and describe the technologies for managing and analyzing it. •
Big data: Data sets with volumes so huge that they are beyond the ability of typical
relational DBMS to capture, store, and analyze. The data are often unstructured or semistructured. •
New technologies are needed to manage and analyze non-traditional data and existing typical data. ●
List and describe the components of a contemporary business intelligence infrastructure. •
Data Warehouses and Data Marts: databases that store current and historical data of
potential interest to decision-makers throughout the company. •
Hadoop: an open-source software, framework managed by the Apache •
Software Foundation that enables distributed parallel processing of huge amounts of data across inexpensive computers. lOMoAR cPSD| 58504431 •
In-memory computing: replies primarily on a computer’s main memory. •
Analytic platforms: use both relational and non-relational tech that are optimized for analyzing large data sets. ●
Describe the capabilities of online analytical processing (OLAP).
Data warehouses support multidimensional data analysis, also known as online analytical
processing (OLAP), which enables users to view the same data in different ways using multiple
dimensions. Online analytical processing and data mining enable the manipulation and analysis of
large volumes of data from many perspectives. OLAP represents relationships among data as a
multidimensional structure, which can be visualized as cubes of data and cubes within cubes of
data, enabling more sophisticated data analysis. ●
Define data mining, describing how it differs from OLAP and the types of information it provides.
Data Mining: more discovery-driven, provides insights into corporate data that cannot be obtained
with OLAP by finding hidden patterns and relationships in large databases and inferring rules from
them to predict future behavior. The types of data that can be obtained include associations,
sequences, classification, clustering, and forecasts. ●
Explain how text mining and web mining differ from conventional data mining. •
Text mining helps businesses analyze this data by extracting key elements from big data
sets to summarize the information. •
Web mining: the discovery and analysis of usage patterns and information from the world wide web •
These are different from traditional data mining because they allow you to find more
specific, concise information.
● Describe how users can access information from a company’s internal databases through the web.
Using Web browser software on a client PC, a user can access a corporate Website over the Internet.
The web browser software requests data from the organization’s databases using HTML comments
to communicate with the Webserver. Because many back-end databases cannot interpret
commands written in HTML, the web servers pass these requests for data to special middleware
software that then translate HTML commands into SQL so that they can be processed by the
DBMS working with the database. The DBMS receives the SQL requests and provides the required
data. The middleware transfers information from the organization's internal database back to the
Web server for delivery in the form of a Web page to the user. The software working between the
web server and the DBMS can be an application server, a customer program, or a server of software scripts.
6-4 Why are information policy, data administration, and data quality assurance essential
for managing the firm’s data resources? lOMoAR cPSD| 58504431
● Describe the roles of information policy and data administration in information management. •
An information policy specifies the organization's rules for sharing, disseminating,
acquiring, standardizing, classifying, and inventorying information. Information policy
lays out specific procedures and accountabilities, identifying which users and
organizational units can share information, where information can be distributed, and who
is responsible for updating and maintaining the information. •
Data administration is responsible for the specific policies and procedures through which
data can be managed as an organizational resource. These responsibilities include
developing an information policy, planning for data, overseeing logical database design
and data dictionary development, and monitoring how information systems specialists and end-user groups use data. ●
Explain why data quality audits and data cleansing are essential.
Data residing in any database that is not accurate or timely or that does not contain relevant
information adds little if any value to an organization. Data that does not contain these essential
elements would more than likely do more harm to the organization than good. For example, the
firm would not be able to provide their customers with good customer service, which would result
in losing their business. Organizations need to identify and correct faulty data and establish
routines to edit/update data once a database becomes operational. Analysis of the quality of the
data involves doing a data quality audit. This consists of a structured survey of the accuracy and
level of completeness of the data in the information system. Data cleansing consists of activities
for detecting and correcting data in a database or file that are incorrect, incomplete, improperly
formatted, or redundant. Data cleansing not only corrects data but also enforces consistency among
different sets of data that originated in separate information systems. B. Case study: How reliable is Big Data.
6-13 What business benefits did the organizations described in this case achieved by
analyzing and using big data.
The business benefits realized by various companies using big data as mentioned in the case study can be summarized as below: •
Spotify: Offer highly personalized, curated music streaming services for enhancing their
user experience based on their tastes, likings, and behavior (both past and current). •
Skyscanner: Offer best deals available for airline bookings by analyzing data from different
travel agents, websites, airlines and applying predictive algorithms •
Healthcare companies: Combine data from clinical trials, insurance companies, and smart
devices to find effective and cost-efficient treatment methods. To predict the emergence and spread of diseases • Legal firms: Law enforcement •
Bank of New York Mellon: To identify glitches in trading systems •
Boston’s Street Bump: To map the road conditions using phones’ accelerometer and
provide real-time alerts to authorities for attention and also long term planning /investment lOMoAR cPSD| 58504431
6-14 Identify two decisions at the organizations described in this case that was improved by
using big data and two decisions that were not improved by using big data.
Examples of decisions improved by the use of big data:
1. Spotify: They successfully used big data to provide highly personalized and curated services
to the customers by using big data to analyze and identify their behavioral patterns, tastes, likings, disliking, etc.
2. US healthcare system could save $300 billion by integrating and analyzing healthcare data
ranging from clinical trials to insurance transaction data and data from smart devices
Examples of the decision not improved by the use of big data:
1. Boston‘s Street Bump mobile app used big data to map and plot the road conditions and
identify potholes but the results had a systematic bias.
2. US center for disease control and prevention used Google’s prediction for flu rates which
were almost overestimated by 2 times because Google’s prediction was simply based on
web searches and did not take into consideration the context for the search.
6-15 List and describe the limitations to using big data.
The important limitations of big data can be listed as follows:
1. Lack of clear objective and intent: Most of the organizations are so swayed by the charm
and glitter of big data that they accumulate zillions of data at a huge cost without knowing
what to do with the data or how to generate meaningful insights from the accumulated and processed data
2. Lack of resources and capabilities to leverage big data: Facilitating the processing of big
data needs the deployment of assets to process the data effectively and at a fast pace which
demands capital investments upfront. Also, highly skilled resources are required to
understand the data and to generate meaningful insights from the processed data. Apart
from this systems should be robust enough and controls should be in place to prevent and
abuse data or breach of the user's privacy and security.
6-16 Should all organizations try to analyze big data? Why or why not? What management,
organization, and technology issues should be addressed before a company decides to work with big data?
All organizations are properly equipped to utilize big data. Organizations should, first of all,
identify the intent/objective of using big data. Secondly, organizations should have the buffer to
invest in assets(big data analysis tools) that can process big data efficiently. They should be smart
enough to identify the subtle correlations. Thirdly, organizations should have sufficiently skilled
human resources who can enable the optimum processing of big data and can understand patterns
and generate meaningful insights for decision support. Finally, organizations must acquire the
capability to ensure data security and prevent and breach privacy.