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Application of Information Technology - Coggle Diagram

- - - - Create barriers to entry
      - Break down barriers
      - Compete on cost
      - Collaborate to change competition
    - - Cost leadership:
        
        Reduce inventory costs
        
        Improve forecasting and planning
      - Differentiation:
        
        Provide easy ordering platforms
        
        Enable customization
      - Focus:
        
        Provide customer insights
        
        Exclude competitors from niche markets
        
        Example:
        
        • Respond to competitive threats by enabling differentiation
        
        provide differentiated services that competitors lacked, namely:
        
        • Virtual design tools using CAD that let customers redesign properties digitally
        
        • Providing a better customer experience through information and visualization
        
        • Implement a focused niche strategy by providing customized capabilities
        
        • Align IT investments with strategic goals to improve performance
    - - Process redesign
      - Resource planning and scheduling
      - Supply chain management
- - - - smart technology ranges from:
      - • Automated devices lacking connectivity
      - • Devices connectable within a limited range network
      - • Fully connected "things" that interact within the Internet of Things
    - - Smart devices - automated devices that are programmable but do not require network connectivity.
        Example: Programmable thermostats
      - Smart connected devices - remotely controllable using networks like WiFi or Bluetooth.
        Example: Google Nest thermostat controlled via smartphone
      - Internet of Things (IoT) devices - have full internet connectivity enabling interactions with many other devices and remote control.
        The Internet of Things connects physical devices through the internet, enabling data sharing and interaction.
        
        Internet-of-Things Development
        
        Concerns:
        
        • Committing to particular markets may be risky
        
        • Would require investment without guaranteed success
        
        • Would need enhanced data storage and processing capacity
        
        • Early technology may be unreliable
        
        • Would require recruiting staff with IoT expertise, adding costs
        
        • But could bring valuable expertise
        
        • Limited applicability to existing clients
        
        • May damage standing and profitability
        
        • Higher risks of security breaches and privacy violations, threatening reputation
        
        However, businesses must determine where and how IoT can add value to their specific strategies, operations and customer propositions.
        Effective adoption depends on identifying and assessing relevant opportunities based on organizational goals.
        
        • Security - IoT applications have not kept pace with security development, creating risks
        • Security risks from connected devices
        
        • Privacy - Data collection raises concerns about individual monitoring and behavior prediction
        • Ethical issues around privacy and data protection
        
        • Technical - Platform fragmentation, device obsolescence, data costs and complexity
        • Technical challenges of integrating diverse systems and technologies
        
        • Implementation challenges - Many pilots do not scale, lack of clear business case, long time horizons, legacy infrastructure limitations
        • Barriers to successfully implementing and scaling IoT initiatives
        
        As a strategic business leader, you should be able to evaluate potential IoT applications, develop an implementation roadmap and optimize IoT initiatives to achieve intended benefits.
        
        • Assess the opportunities and risks specific to your organization's industry and operations
        
        • Develop strategies to mitigate threats, ensure compliance and optimize IoT initiatives
        
        • Consider the organizational changes needed to support widescale IoT adoption
        
        • Guide how IoT can create new business models or transform existing ones
        
        Advantages:
        
        • Potential for rapid growth through market expansion
        
        • Opportunity to innovate and build reputation
        
        • Ability to match business needs to technology, a core competence
        
        Helping with tasks through better data, like oil exploration
        
        Generating efficiencies in energy, resources and supply chains
        
        Monitoring for problems through warning systems and predictive analytics
        
        Informing strategic development like customizing products
        
        the Internet of Things has the potential to transform businesses by:
        
        Providing vast amounts of data for analysis
        
        -Automating routine tasks
        
        Improving efficiency and productivity
        
        Enabling customized products and services
        
        Government Work
        
        Advantages:
        • Potential for steady cash flows to fund investment in other areas
        
        Concerns:
        • Lower risk but also likely lower returns
        
        Conclusion:
        
        • Options are not mutually exclusive
        
        • Represent different growth and risk profiles:
        
        IoT:
        • High risk
        • High potential returns
        
        Government:
        • Lower risk
        • Steadier returns
        
        • Combining both could:
        
        • Improve diversification
        
        • Fund riskier IoT investment with government work cash flows
        
        While IoT offers more transformational growth potential, government work provides a safer source of funding.
        A balanced portfolio combining both could generate a mix of steady and higher-growth revenues to sustain investment.
        Thoroughly evaluating risks, opportunities, needed capabilities and fit with strategy is key for each option.
        
        Professional Judgement:
        The evaluation demonstrates objectivity by:
        
        • Identifying both advantages and concerns for each option proportionately
        
        • Assessing quantitative factors like costs, investment needs and expected returns
        
        • Considering qualitative factors like risks, capabilities and strategic fit
        
        • Proposing a balanced combination that weighs different risk-return tradeoffs
        
        Example: Amazon Echo which can play music, make calls, answer questions, control lights, etc.
        It involves:
        • Connected sensors, processors and transmitters
        • Smart devices that can collect data and control the physical world
        
        Businesses should consider:
        • How IoT can be part of their business model
        • Strategic and operational uses across sectors
        
        Examples:
        
        Smart home devices
        
        Traffic alerts for commuters
        
        Crop sensors for farmers
        
        Predictive maintenance for manufacturers
        
        3D printing for automakers
        
        sector examples:
        
        Medical sector:
        
        Smart home devices alert to medical emergencies
        
        Continuous remote monitoring of vitals
        
        Remote monitoring and support for treatment compliance
        
        Transport sector:
        • Smart devices like traffic cameras and sensors warn of traffic issues
        • Collect data to identify routes for simplification and optimization
    - - • Increased convenience through automation
        
        • Convenience - Automation frees up time and increases ease of use
      - • Potential sustainability and efficiency gains through data insights
        
        • Sustainability - Can reduce energy use and carbon footprint
        
        • Efficiency - IoT sensors detect issues early, enabling improvements
      - • More timely information through sensors and connectivity
        
        • Information - Real-time data alerts users to take prompt action
    - - • Security of connected devices and data collected: hacking and data theft
      - • Privacy concerns around data inputs required: exposed over the internet
      - • Reliability issues if technology fails: Disruption
      - • Regulatory gaps due to rapid development
      - • Risks throughout the technology ecosystem
      - While benefits can be substantial, managing risks through security, privacy protections, regulatory frameworks and ecosystem governance is critical to realizing the full value of smart technology for users.
  - - - • Laptops
      - • Tablets
      - • Smartphones
      - • GPS devices
    - - • WiFi connectivity
      - • Bluetooth
      - • 4G networks
    - - • Refers to portable devices with internet connectivity
      - • Enables information access and interactions anywhere, anytime
        
        For members:
        • Feedback - Instant messaging facility allows members to communicate needs
        
        • Convenience - Access fitness info and club updates anytime, anywhere
        • Sense of community - Constant presence in members' lives engages members
        
        For Optima:
        • Interaction - Mobile should complement, not replace, other forms of contact
        • Marketing - Instantly contact members with offers, updates and tailored messages
        • Customer insights - Collect continuous feedback and data to better understand and serve members
      - • Offers convenience through features like payments
        
        For Optima:
        • Engagement - Interesting and relevant content will be seen directly by target audience
        • Older members - Must ensure technology does not disengage these members; usage will vary by demographics
        • Data analytics - Evaluate app usage to identify needs of different customer segments and deliver information in multiple ways
      - Scepticism:
        
        • The director's claim that members only want to exercise and socialize is an oversimplification
        
        • Mobile technology likely engages people of all ages when accessible; usage will vary but under-estimating potential risks disengagement
        
        • Understanding members' varied needs across demographics is key to effective use of technology
      - • Provide convenience and communication for members
        • Enable targeted marketing, customer insights and engagement for Optima
    - - • Higher device costs
      - • Rapid obsolescence
      - • Increased security risks
      - • Requirement for robust data protection: Firewalls. Passwords, Training
      - While mobile technology provides flexibility and accessibility, organizations must adopt security measures to mitigate risks and maximize benefits. The appropriate balance of risk and value will vary by organization.
      - But Optima must:
        
        • Ensure technology complements other interactions
        
        • Cater for varied usage across demographics
        
        • Evaluate use to identify needs of different segments
      - Used effectively with an inclusive approach, mobile technology has significant potential to enhance member experience and business performance for Optima.
        However,a narrow view risks disengagement of some members.
  - - - offers benefits of:
        
        • Expertise: Cloud providers have specialist skills
        
        • Support: Cloud providers monitor systems continuously
        
        • SLAs: Cloud providers are responsible for restoring systems and may pay penalties for downtime
        
        • Cloud provides on-demand, scalable IT resources
        
        • Lower costs, flexibility and speed
        
        the benefits of outsourcing IT:
        
        For the city authority:
        
        • Improved responsiveness, flexibility and access to expertise
        
        • Elimination of management conflicts
        
        • Focus on strategic priorities
        
        For IT staff:
        • More opportunities for growth and motivation within an IT specialist firm: learning, skill development, new technologies
        
        the benefits of using the advertising agency's services:
        
        • Timing is opportune given marketing director vacancy
        
        • Agency expertise can overhaul marketing approach to fit strategy
        
        Website:
        
        • Current site focuses on reliability, not core messages for target market
        
        • Review could identify key promotional messages
        
        • SEO and banner ads can attract more traffic
        
        Social media:
        
        • Greater visibility can promote products and provide up-to-date image
        
        • Engage loyal customers and facilitate two-way dialogue for feedback
        
        • Competitors are not using social media effectively
        
        Personalization:
        
        • Consistent with Yexmarine's strength of customer relationships
        
        • Can systematically build targeted online relationships and reach
        
        Event marketing:
        
        • Lacks experience for upcoming major product launch
        
        • Agency can ensure marketing is effective and costs are known to assess investment viability
        
        • Provides greater certainty around marketing expenditure
        
        Commercial acumen:
        
        • Agency expertise can strengthen Yexmarine's marketing and image to compete more effectively
        
        • Improved website, social media and personalization can enhance customer loyalty, experience and feedback
        
        • Targeted launch marketing can maximize chances of international sales success for new investments
        
        • Competitive advantage may be gained over rivals with weak online presence
        
        By upgrading its marketing, Yexmarine can strengthen its brand, relationships and launch execution to improve its competitive position and chances of growth. The agency's services offer a structured approach to achieve these benefits.
        
        the key potential gains are stronger marketing capabilities, brands and customer relationships - all crucial factors for competitive advantage. The agency offers expertise and experience to realize these gains systematically.
        
        the arguments for outsourcing SE's call handling:
        
        • Improve outsourced call center's performance in the short term
        • Focus on core business - Letting an expert call center focus on support frees SE to focus on retailing
        
        • Consider insourcing over the longer term for cost competitiveness and greater control of customer experience
        • Financial - Outsourced costs are $600/day vs $1,500/day to provide in-house
        • Reducing call volume and resolution times could make outsourced costs competitive
        
        • Publicize insourcing decision for potential marketing and ethical benefits
      - But has disadvantages of:
        
        • Customization: Limited customization options compared to in-house
        
        • But risks center around loss of control, security and compliance
        
        • Regulatory risks arise from using providers in different jurisdictions
        
        • Reliance on provider performance and continuity
        
        Risks of outsourcing IT: job security, cultural adjustment and potential cost savings pressures.
        
        Outsourcing IT:
        • Careful management of the transition and selection of an outsourcing partner that shares the authority's objectives will be critical to maximizing benefits
        • while mitigating potential downsides for both the authority and its IT employees.
        
        the arguments against outsourcing SE's call handling:
        
        • Cost savings could be achieved in-house through online support, FAQs and process improvements
        • Cost gap could narrow with in-house efficiencies
        
        • Support is not SE's core competency but a critical part of the customer experience
        
        • Outsourcing non-core activities like IT may be a better strategic fit
        • given the specialized skill needs, more predictable costs, flexibility for strategic planning, lower need for direct oversight, and potential for innovation.
        
        Skill requirements:
        
        IT activities typically require specialized technical skills that can be hard for a company to maintain in-house. IT outsourcing providers specialize in these skills and can leverage economies of scale.
        
        Call handling, on the other hand, requires more general communication and customer service skills that are easier for companies to find and retain.
        
        Cost structure:
        
        IT costs tend to be more fixed and predictable, making them easier to outsource effectively.
        
        Call volume and duration can fluctuate more, making call handling costs harder to manage when outsourced.
        
        Flexibility:
        
        IT outsourcing contracts tend to be longer term and specify fixed deliverables. This allows for more strategic planning.
        
        Call handling outsourcing often requires more flexibility to adjust to changing call volumes and priorities.
        
        Control:
        
        Companies tend to want more direct oversight and control over customer interactions like call handling.
        
        IT outsourcing can often operate more independently once requirements are specified.
        
        Innovation:
        
        IT outsourcing providers can often bring new ideas and technologies that the company itself may not have access to.
        
        Call handling tends to involve more routine tasks where providers offer mainly cost savings.
        
        • Customer dissatisfaction - Difficulty understanding offshore agents and long wait times
        
        • Negative publicity - Offshoring seen as job export, potential reputational damage
        
        • Loss of control - Outsourcing a critical customer touchpoint risks service quality
        
        • Ethical considerations - Bringing jobs in-house could boost sales through perceived social responsibility
        
        While outsourcing currently provides clear cost benefits, factors like customer satisfaction, reputation and control increasingly favor bringing call handling in-house - especially as improvements reduce the cost gap.
        
        A phased transition - first improving outsourced performance, then insourcing over time - offers a compromise that balances costs with strategic opportunities around customer experience, corporate reputation and publicly demonstrated social responsibility.
        
        • Short term: Improve outsourced call center's performance
        
        • Longer term: Transition to in-house over time
        
        • Publicize insourcing for potential benefits
        
        Insourcing calls offers strategic benefits:
        
        • Improves customer satisfaction
        
        • Avoids negative publicity from offshoring
        
        • Allows full control over customer experience
        
        • Potential marketing benefits from perceived social responsibility
        
        the disadvantages and risks of outsourcing the legal department
        
        Disadvantages:
        • Higher costs - Outsourcing providers need to make a profit
        
        Risks:
        • Costs are a key disadvantage and risk
        
        • Increased costs over time - Supplier power if locked into single provider
        
        • Choosing wrong provider - May not meet all future legal service needs
        
        • Leak of confidential information - Especially for unpublished articles
        
        • Loss of expertise - May require making legal staff redundant
        
        • Loss of control over quality
        But:
        • Specialist legal firm likely to deliver higher quality service than in-house legal department
        
        Risk management:
        maximize the benefits of outsourcing
        while managing potential disadvantages and risks.
        
        • Detailed service level agreement to specify all included fees and additional charges
        • Ensure detailed SLAs (cover all needed legal services)
        
        • Signed confidentiality agreement
        • Careful selection and agreements with multiple providers can mitigate risks around expertise, confidentiality and control
        
        • Outsource to multiple law firms, not a single supplier
        
        • Using multiple suppliers prevents lock-in and maintains competitiveness over time
      - Cloud computing is a model for:
        
        • On-demand access to configurable IT resources
        
        • Shared pool of resources accessed via the internet
    - - has benefits of:
        
        • Customization: Systems can be tailored exactly to organizational needs
        
        • Support: In-house staff provide support
      - But has disadvantages of:
        
        • Expertise: Expensive to employ specialists
        
        • Support: Expensive to maintain 24/7 monitoring and support
        
        • SLAs: Own responsibility to restore systems in case of outages
    - - • Expertise and cost of skilled staff
      - • Level of monitoring and support required
      - • Flexibility and customization needs
      - • Responsibility and guarantees around system availability
    - - • Compatibility with business needs
      - • Expertise and resources available
      - • Complexity of data and compliance requirements
      - While cloud offers lower costs and on-demand scalability, owned solutions provide more customization and control. A hybrid approach combining the two may be best for some organizations.
        The right choice varies case-by-case based on weighing benefits, drawbacks and specific organizational requirements for IT solutions.
      - • Loss of control and security risks
      - • Cost savings and flexibility
- - - - Programs/machines that mimic human cognitive abilities like reasoning, learning and problem solving, learning from data to make decisions with little human input.
      - AI powers technologies like chatbots, image recognition, and smart recommendations.
      - It involves algorithms that adapt based on input data.
      - AI is suitable for complex cognitive tasks, unlike robotic process automation (RPA) which is for repetitive rule-based tasks.
      - Artificial intelligence refers to intelligence demonstrated by machines, such as:
        
        Learning and problem solving abilities
        
        Ability to perceive environment and take actions to achieve objectives
        
        Making active decisions using data analysis
        
        Ability to learn and adapt over time
        
        Artificial Intelligence:
        
        Demonstrates intelligence through tasks such as learning, problem-solving, perceiving and deciding
        
        Uses algorithms, machine learning, data analysis and adaptation
        
        Applications include personalized services, automating tasks, optimizing processes and faster decision making
      - Algorithms are vital for artificial intelligence. They are step-by-step processes for solving problems or accomplishing tasks.
      - Machine Learning:
        
        Uses algorithms to gain experience from data and learn without being programmed
        
        Can predict and provide guidance based on historical data and new inputs
        
        Types are supervised, unsupervised and reinforcement learning
        
        Deep learning uses neural networks to analyze unstructured data
        
        Self-learning computes decisions based on programmed 'emotions'
      - Robotics:
        
        Builds machines that can replicate human actions
        
        Used where accuracy, repeatability and hazardous conditions are important
        
        Reduces costs and increases precision, reliability in manufacturing
        
        Perform welding, quality control and surgery through machine vision and telemanipulators
        
        Home robots assist with everyday tasks
        
        Robot learning algorithms acquire skills through self-exploration and human interaction
    - - Identify complex data patterns
      - Make consistent decisions
      - Quickly analyze large data volumes
      - Enable better strategic planning
      - Enhance customer experience
      - Personalize products and services
      - Automate routine tasks
      - Analyze large amounts of data
      - Make faster and more accurate decisions
    - - Reliability depends on quality of input data
        AI bias from training data that reflects human bias
      - Lack flexibility; cannot match human thinking
      - AI-generated decisions require human oversight
        Security issues if AI is misused
        Unintended consequences from AI solutions
      - May replace some human labor.
        Unemployment from AI replacing certain jobs
      - While AI offers huge potential,
        To address risks, organizations must:
        
        Ensure high-quality data for reliable outcomes, to avoid AI bias
        
        Prepare for changes in workforce roles to leverage AI
        
        Closely monitor AI systems to avoid bias in decisions, for potential issues
        
        AI can improve customer experience through targeted insights but must be implemented responsibly to avoid negative outcomes.
      - AI augments human intelligence and abilities rather than aiming to replace humans. It is an integral part of digital transformation by enabling insights and decisions at scale
      - Increased wealth inequality
      - determining legal liability
        for the Tesla accident is complex:
        
        Drivers are responsible for being vigilant while autopilot is engaged, but the technology can reduce vigilance.
        
        Autopilot technology is designed to avoid accidents, but may have failed in this case.
        
        While the pedestrian had right of way, he was in an area with fast-moving traffic.
        
        Ethical AI and autonomous
        vehicle technologies will require:
        
        Systems that can reliably perform as intended to protect all road users
        
        Drivers trained to understand technology limitations and maintain supervision
        
        Rules and infrastructure that properly allocate liability in complex situations
        
        Overall, this tragic accident highlights the need for a holistic, human-centered approach involving technology developers, policymakers, road users and the public to ensure ethical deployment of autonomous systems.
        No single party alone can be considered fully responsible.
        
        key ethical issues related to artificial intelligence and machine learning:
        
        • Mistakes - AI may make different types of mistakes than humans.
        
        • Bias - AI may reflect the biases of its creators or have unintentional programmed bias.
        
        • Security - As AI capabilities increase, effective cybersecurity is critical.
        
        • Unintended consequences - AI may achieve intended solutions but have unforeseen negative impacts.
        
        • Control - There are concerns about AI ultimately surpassing human control.
        
        Other issues:
        
        • Unemployment - AI and robotics may displace human jobs with few alternatives.
        
        • Income distribution - Benefits of AI may concentrate in hands of owners, not workers.
        
        • Behavior influence - AI interactions may inadvertently influence human behavior.
        
        • Treatment of AI - There are debates about ethics of "negative reinforcement" of AI systems.
        
        An ethics framework should include:
        
        • Defining AI ethics aligned with business values
        
        • Integrating ethics into AI product design
        
        • Obtaining stakeholder feedback during development
        
        • Continuously monitoring for bias
        
        • Ensuring transparency about data use
        
        key ethical considerations for AI include:
        
        • Potential negative impacts and risks
        
        • Economic and social consequences
        
        • Responsible design and use of the technology
        
        While exam exhibits will focus on business context, answers should demonstrate an understanding of:
        • Ethical issues specific to the organization's use of AI
        • The organization's approach to addressing those issues in a responsible manner
      - Challenges:
        
        High initial investments
        
        Training costs for human workers
        
        Health and safety concerns with human interactions
        
        In summary, artificial intelligence relies on algorithms, machine learning and big data. It is being used across industries to improve processes, optimize operations and gain competitive advantages. However, the rapid development of AI also raises ethical concerns about its impact on jobs, privacy and accountability. Regulatory frameworks may be needed to govern emerging AI technologies.
    - - Autonomous vehicles
      - Personalized recommendations
      - Healthcare diagnostics and treatment
      - Fraud detection
      - Cybersecurity threat monitoring
      - Retail:
        
        Creating adaptive environments
        
        Building customer profiles and relationships
        
        Guiding purchasing decisions
        
        Improving supply chain and pricing strategies
        
        Informing product development
      - Other sectors:
        
        Medical diagnosis and treatment personalization
        
        Self-driving cars and route optimization
        
        Crop monitoring and yield prediction in agriculture
        
        Cybersecurity threat detection
        
        Job matching and talent assessment in HR
        
        Autonomous investment practices and high-speed trading in finance
    - - The algorithms recommend content based on:
        • Explicit data like past selections, reviews and social media
        • Implicit data like binge watching behavior and viewing time
      - Netflix programs analyze every minute of content to identify key themes and details about shows. This data is fed to machine learning models that:
        • Assign a weighting to factors that influence viewer choices
        • Place viewers in "taste communities" to tailor recommendations
      - The more data Netflix collects, the more accurate recommendations become, helping build subscriber loyalty.
- - - - Gather data from many new sources
      - Extract actionable insights from that data
      - Inform and implement strategies based on data and customere needs
    - - Understand their environments to identify opportunities and threats
      - Develop new customer insights and understand needs
      - Inform and implement strategy based on data-driven insights
    - - refers to extracting insights from large or unstructured/raw data.
      - Provides information to answer business questions and make better decisions
      - data analytics techniques progress from:
        
        Describing what happened (descriptive)
        
        Examines trends and patterns in the data
        
        Classifies data in different ways to gain insight
        
        Uses visualizations like graphs, charts and pivot tables
        
        Purposes:
        
        Inform strategies
        
        Improve decision-making
        
        Identify risks and opportunities
        
        To predicting what will happen (predictive)
        
        Applies statistical models, machine learning and AI to the data
        
        Makes predictions based on past and present data
        
        Forecasts future outcomes and trends
        
        Purposes:
        
        Predict customer behavior
        
        Forecast sales, demand and costs
        
        Identify potential threats
        
        Uses statistical models, AI and machine learning to predict future outcomes based on past and present data
        
        Allows businesses to evaluate strategies and foresee different scenarios
        
        Tools like Excel's Scenario Manager and Data Analysis pack can be used
        
        Risks:
        Correlations are not always causations
        Predictions may not be 100% accurate
        
        To recommending what should be done (prescriptive)
        
        Goes beyond prediction to recommend courses of action
        Optimizes decisions based on complexity, constraints and trade-offs
        
        Purposes:
        
        Recommend the best option from multiple choices
        
        Generate heuristics to improve performance
        
        Determine the most cost-effective or profitable actions
        
        All techniques provide insights to support better business decisions. But prescriptive analytics has the greatest potential to transform business performance by recommending optimal (best) actions based on data.
        
        Goes beyond prediction to recommend optimal courses of action
        
        Optimizes decisions based on constraints, trade-offs and complexity
        
        Tools like Excel's Goal Seek and Solver can generate optimal solutions
        
        Example:
        Minimizing transportation costs by optimally allocating TV deliveries from depots to stores
        
        As a strategic leader, you should
        
        • Revise strategies
        
        • Improve operational efficiency
        
        • Enhance customer experience
        
        • Create competitive advantage
        
        Selecting and implementing the right analytics technique for the right purpose is critical for extracting maximum value from data.
        
        determine which technique is most appropriate for a given business problem and apply insights to:
        
        interpret findings skeptically and question assumptions
        
        Data should be used ethically and responsibly
  - - - More individualized risk assessment
      - Lower premiums for safe drivers
      - A more responsive strategy to customer concerns
    - - • Driver behavior through GPS and driving data
      - • Provide tips to improve driving skills
- - - - Volume:
        Larger amounts of customer data can improve understanding of:
        • Purchasing patterns
        • Product demand
        • Potential new store locations
        Volume: More data over a longer time period could provide a better understanding of customer requirements and purchasing patterns to develop strategies that capitalize on trends.
        Volume
        Large amounts of data improve reliability of analysis and conclusions.
        Organizations need adequate storage and processing capabilities.
    - - Velocity:
        Processing data in real time allows RW to:
        • Quickly respond to product trends
        • Make real-time recommendations to online customers
        Velocity: Analyzing real-time data from transactions and social media could allow RW to continually update strategies for competitive advantage, such as quickly marketing trending products.
        Velocity:
        Data is generated and accessed in real time from transactions and interactions.
        Information is available immediately to inform decisions.
    - - Variety:
        Data from diverse sources can provide a deeper understanding of:
        • Competitors
        • Industry trends
        • Customer segments
        Variety: Tapping different data sources beyond RW's control could provide the deepest understanding of customers to develop effective strategies. This includes competitor and industry data from online keywords and social media.
        Variety:
        Data comes from many types of sources and in different formats.
        Both structured and unstructured data provide richer insights.
    - - Veracity:
        Accurate data is critical for RW's store expansion strategy due to its fast growth.
        Veracity:
        Data must be accurate and reliable to be useful.
        Ensuring data quality is critical for effective analytics.
    - - The finance director is right to consider big data, otherwise RW risks falling behind competitors. However, RW must consider the costs and benefits before implementation.
      - In summary, all 3 'Vs' could enhance RW's strategic development through deeper customer insights, faster strategies and potential new revenue sources, if implemented appropriately.
    - - • Identifying patterns and trends
      - • Asking the right business questions
      - • Making informed assumptions
      - • Accurately predicting behavior
      - • Finding relevant solutions
    - - volume, velocity and variety of data provide opportunities for deeper insights.
      - However, veracity and value determine whether those insights are trustworthy and actionable for businesses.
      - As a strategic leader:
        play a key role in realizing actual value from big data.
        
        • Evaluate how much and what types of data are relevant for your needs
        
        • Ensure data quality and governance frameworks
        
        • Guide analysts to ask the right questions of the data
        
        • Challenge conclusions and verify insights for accuracy
        
        • Translate insights into strategic recommendations and value creation
  - - - Gain deeper customer insights
      - Identify new products and markets
      - Provide more targeted and relevant experiences
      - Improve competitive advantage
    - - Potential to identify new trends and patterns to gain insights and understanding not previously known.
      - Ability to analyze large data sets in real time allows faster response to changing conditions.
      - Access to more diverse types of data including unstructured data sources.
      - Potential to gain more accurate and detailed performance data in real time.
    - - Greater risk of data breaches and hacker attacks due to larger data stores.
      - Challenge of keeping data safe from viruses and other threats.
      - Risk of legal issues if data is stolen or corrupted.
      - Risk of focusing too much effort on analyzing data rather than running the business.
      - Correlations identified in data may not indicate actual causation.
      - Cost and challenges of upgrading IT infrastructure to capture and store larger data sets.
      - Issues of data reliability and truthfulness impacting decision making.
    - - Determine how big data can transform your business model and strategies
      - Evaluate potential use cases based on organizational goals
      - Design governance and risk management frameworks
      - Define success metrics for big data initiatives
      - Guide ethical and secure use of customer and employee data
      - Leaders play a vital role in articulating a clear vision, setting the right "tone from the top" and designing governance systems to maximize benefits and manage threats.
      - while big data and analytics offer great opportunities, organizations must balance opportunities with risks.
      - Their ability to assess and evaluate potential applications based on organizational needs will determine the value realized from big data and analytics.
  - - - Identify optimal new store locations
      - Track emerging product trends
      - Gain insight into customer preferences
      - Generate revenue by selling customer data
      - Optimizing new store locations based on customer shopping habits data
      - Discovering previously unknown trends to capitalize on before competitors
      - Generating new revenue streams by selling customer data to manufacturers
  - - - Morgan Stanley analyzes vast investment and client data using Hadoop.
        This allows them to identify the best investments for clients.
    - - UPS uses sensors in delivery vehicles to monitor data on:
        
        Speed
        
        Braking performance
        
        Vehicle condition
      - This data is combined with customer and GPS data to:
        Optimize maintenance schedules
        Improve delivery routes
      - Benefits include:
        15 million less minutes of idling time, saving 103,000 gallons of fuel
        1.7 million fewer miles driven, saving 183,000 gallons of fuel
    - - Walmart tracks data from:
        
        Purchase history
        
        Social media interactions
        
        Weather
        
        Events
      - This data enables a personalized customer experience. But critics argue Walmart makes judgements about customers' personal lives.
    - - Time Warner uses data to:
        • Track and optimize bandwidth for customer experience
        • Target advertising for clients based on viewer demographics and data
      - Netflix analyzes viewing data from 44 million subscribers watching 2 billion hours of content monthly. This data helps them decide:
        • Which shows to invest in
        • Estimated viewership before a show airs
    - - Identify the best investments
      - Optimize operations
      - Personalize customer experience
      - Target advertising
      - Predict viewership
      - However, organizations must manage privacy and ethical use of data responsibly to gain customer trust.
        • To implement big data responsibly and gain customer trust.
        • This holistic strategy would aim to:
        
        Improve customer experience
        
        Strengthen competitive position
        
        Drive sales growth
    - - is facing challenges:
        
        Declining sales due to competition
        
        Rising customer complaints
        
        High customer churn rate
      - Using big data can drive MC's strategy by:
        Analysing large volumes of structured and unstructured customer data from:
        
        Transactions
        
        Call history
        
        Social media
        
        This data can provide insights into:
        
        In-demand handset models to bundle with tariffs
        
        Main causes of customer complaints to resolve weaknesses
        
        Popular communication types (data, calls, texts) to design optimal tariffs
        
        Usage patterns of prepaid customers to inform offers
        
        Competitor offerings to improve MC's value proposition
      - Big data can help MC:
        
        Improve tariff design to match customer needs
        
        Reduce customer complaints
        
        Make competitive offers
        
        Retain more customers
      - However, MC must address risks like:
        
        Data security
        
        Data privacy
        
        Algorithmic bias in data
      - In summary, analysing and leveraging customer data through big data management can form the basis of an effective strategy to address MC's challenges.
        But MC must balance data-driven opportunities with risks through responsible data governance.
    - - Around 25% of fish caught globally is illegally caught, so Sainsbury's partnered with Satellite Catapult to track fishing vessels in real time via satellite data.
      - Satellites photograph fishing vessels, including data on:
        
        Vessel location signal
        
        Home port
        
        License and quota
        
        Fishing method
      - Using algorithms, Sainsbury's can determine if a vessel is behaving as expected based on this data.
        This enables Sainsbury's to:
        Detect illegal, unreported and unregulated fishing
        Protect ocean life and fulfill sustainability commitments
      - In summary, big data and satellite technologies are giving Sainsbury's unprecedented visibility into its supply chain to combat illegal fishing and source sustainable wild fish for its customers.
- - - - They need data to answer questions like:
        
        • What are the potential costs/benefits of new products?
        
        • Which customers are most profitable?
        
        • How will customers respond to different prices?
        
        • How does the proposed price compare to competitors?
      - Data comes from:
        
        Primary research:
        
        Questionnaires
        
        Focus groups
        
        Customer interviews
        
        Secondary research:
        
        Competitor reports
        
        Finance records
        
        Customer complaints
        
        Loyalty schemes
        
        Organizations are also capturing more data from:
        • Social media channels
        • Technologies like IoT devices
        
        This data helps organizations:
        
        • Determine if new products will achieve objectives
        
        • Decide how to promote and deliver products/services
        
        • Update processes to sell products effectively
        
        • Gauge how competitors will respond
        
        • Identify which customers are most important and profitable
      - In summary, various types of primary and secondary data help senior management with vital decision-making regarding new products, marketing and pricing strategies.
- - - - Information is a competitive advantage:
        Well-managed information can give organizations an edge over competitors.
      - Information systems involve high costs High costs of information systems:
        Controlling information systems is important due to the high costs of technology.
      - Information affects all levels and external stakeholders
        Wide impact of information:
        Information affects internal stakeholders at all levels and external stakeholders.
      - Information needs may require structural changes
        Structural changes:
        Information needs may require changes to organizational structure.
      - Information quality impacts customer service
        Customer service:
        The quality of information flows impact customer service.
      - Information is critical to organizational success
      - Critical to success:
        Reliable information is critical for organizational success.
      - In summary, information systems controls are important from a strategic perspective because information provides competitive advantages, involves high costs, impacts stakeholders widely, drives organizational changes, affects customers and is critical to success. Therefore, organizations need to control their information systems to maximize the benefits and minimize the risks of information.
    - - For example, if pursuing product differentiation based on quality, information on product quality is needed.
        Managing information effectively could become a source of competitive advantage through:
        Responding quickly to market trends based on gathered information
- - - - Specific control examples:
        
        Personnel controls for competence
        
        Logical access controls like passwords
        
        Audit trails to record system access
        
        Physical access controls to limit access to areas
        
        Facility controls to protect hardware and data
      - Application controls ensure:
        • Accurate and complete data input
        • Authorized distribution of data
    - - mitigate risks of:
        •Unauthorized access to network data
        • Compromised data integrity
      - Network controls include:
        
        Firewalls
        
        Data encryption
        
        Virus protection
    - - Physical access controls - Prevent unauthorized access to IT assets.
      - Logical access controls - Ensure only authorized users access IT systems (e.g. passwords).
      - Operational controls - Ensure day-to-day activities run effectively:
        Segregation of duties - Separate roles to prevent abuse of power
        Audit trails - Records of system access and operations
      - Input controls - Ensure accuracy, validity and completeness of input data through:
        
        Data verification
        
        Data validation
        
        Checks like:
        
        Check digits
        
        Control totals
        
        Range checks
        
        Limit checks
        
        Compatibility checks
        
        Format checks
      - In summary, organizations should implement a range of physical, logical, operational and input controls to adequately secure their IT systems and information. Different control types target different threats and risks. Together they form a comprehensive control framework.
        
        In summary, organizations must implement general controls, application controls, personnel controls, logical access controls, physical access controls and facility controls to adequately secure information systems and mitigate risks. No single control is sufficient, a combination is needed.
    - - Reduce risk of incorrect decisions from incorrect data
      - Improve performance measurement
      - Ensure customer satisfaction
      - Avoid reputational damage
      - Minimize business disruption
    - - Users may share passwords
      - Passwords can be guessed
      - Passwords written down can be found
      - Controls to address issues:
        
        Require regular password changes
        
        Use memorable but not obvious passwords
        
        Prohibit writing down passwords
        
        Monitor failed login attempts
    - - Computerised accounting systems can:
        • Reduce human error through standardized rules
        • Ensure entries are complete with debits and credits
      - Setting up a chart of accounts is important to:
        
        Segregate assets, liabilities, revenue and expenses
        
        Define how transactions will be treated
        
        Meet reporting requirements
      - Controls over the chart of accounts are needed to:
        • Prevent unauthorized additions or deletions of accounts
        • Ensure it still meets needs through regular reviews
      - Testing the accounting software
        
        helps ensure:
        Posting rules are working correctly
        
        Test data
        
        Test data involves:
        • Entering sample transactions
        • Comparing results to expected outcomes
        
        Test data can check controls that:
        
        Prevent invalid data
        
        Reject non-existent codes
        
        Flag unrealistic amounts
        
        Enforce credit limits
      - In summary, while computerised accounting systems can reduce human error, organizations must implement controls to ensure transactions are properly processed and reported. This includes controls over the chart of accounts, testing of accounting software and the use of test data to verify processing controls work as intended. Proper controls help ensure the reliability of computerised accounting information.
  - - - For hacking:
        • Usernames and passwords
        • Firewalls
      - For viruses:
        • Anti-virus software
        • Warnings about file downloads
      - For input errors:
        • Staff training on accurate data entry
        • Validation checks on input data
      - Other security controls include:
        
        • Physical access controls to prevent unauthorized access
        
        • Logical access controls like passwords
        
        • Operational controls like segregation of duties and audit trails
        
        • Input controls to ensure accuracy, validity and completeness of data
  - - - Protection from fire, flood, smoke, dust, drinks and power failure
      - Suitable environmental conditions
      - Ensuring business continuity
    - - planning involves:
        • Risk assessment
        • Developing contingency plans to address risks
      - plans should include:
        • Backup copies of data files stored securely offsite
        • Alternative IT systems that can be activated if main system fails
      - System backups:
        • Copies data to protect against data loss or corruption
        • Should be done regularly to limit amount of lost data
        Backup copies should be:
        • Stored securely in a safe, offsite location
- - - - Different countries
      - Growing number of devices and applications
      - Security failures
    - - • Increasing frequency of cyber attacks
      - • Data security now involves external threats in addition to internal controls
      - Cybersecurity protects technology and data from unauthorized access or attacks
      - NCCP relies on technology for its operations and is therefore at risk of cyber attacks
      - NCCP currently only has controls around staff passwords which is not robust enough
      - Hackers could alter NCCP's website, impersonate the organization, infect hardware
      - The increased value of data from growing volumes, value-adding analysis and AI applications
      - Lack of public awareness of how personal data could be misused, as shown by the Facebook/Cambridge Analytica scandal
      - Exposure created by storing and sharing data in the cloud
      - The inevitability of software flaws due to complexity
      - Cyber attacks are increasing in frequency and cost, targeting large companies in particular. The average cost of an attack rose 61% in 2019.
        Cybersecurity should be part of an overall risk management program, but requires leadership focus due to the threats outlined above.
  - - - Make cybersecurity a priority and include it on board meeting agendas
      - Seek expert advice due to lack of technical expertise
      - Establish and communicate a clear cybersecurity policy to all stakeholders
      - Have contingency plans in place for rapid response in case of a breach
      - Regularly review cybersecurity risks as they change rapidly
    - - Provides good corporate governance
      - Project sponsor sets overall direction
      - Project manager manages actual delivery
      - Sponsor can represent project at senior levels and provide oversight
      - Sponsor ensures necessary resources are allocated
      - Manager decides how to utilize resources for delivery
      - Sponsor may lack expertise to manage operational activities
    - - Prioritize cybersecurity at the board level
      - Obtain external advice due to lack of in-house expertise
      - Develop and communicate a clear cybersecurity policy
      - Implement response and contingency plans
      - Regularly monitor cybersecurity risks
      - Separate project sponsor and manager roles for effective oversight and delivery
    - - Understand the value of your company's data and potential consequences of data loss or misuse
      - Ensure employees are aware of data security policies and risks
        ensure your finance team:
        
        Understands potential financial consequences of data loss or network downtime
        
        Helps quantify cyber risks and implements appropriate controls
        
        Develops and funds effective recovery plans
        
        Audits suppliers for adequate cybersecurity
        
        Investigates options for cyber insurance coverage
      - Implement appropriate technical, physical and administrative controls to protect data
      - Oversee contingency plans in the event of an attack
      - Continuously monitor threats and your organization's vulnerabilities
      - Allocate sufficient resources for effective cybersecurity efforts
    - - Establish a risk management regime that explicitly addresses cybersecurity risk
      - Secure the network perimeter to prevent unauthorized access
      - Educate and raise awareness among users of how they could be exploited
      - Use up-to-date anti-malware software to screen for viruses and malware threats
      - Strictly regulate the use of removable media like USB sticks
      - Configure all hardware and software securely before connecting to the network
      - Separate user privileges and restrict access based on job function
      - Have an incident response plan to minimize immediate threats and learn lessons
      - Monitor network activity to spot and prevent unsuccessful cyberattacks
      - Implement effective controls for remote and mobile working like VPNs and device configurations
    - - Technical measures - like firewalls, encryption, malware protection
      - Organizational measures - such as user policies, separation of duties, monitoring
      - Human factors - including security awareness training and incident response plans
      - And all of it needs oversight and buy-in from senior leadership who set the right "tone from the top."
      - The most critical initial step is establishing an explicit risk management regime that assigns clear roles and responsibilities for cybersecurity. This will help embed it as a strategic, enterprise-wide priority.
    - - Cyber risk is highly relevant to CFOs and finance teams due to potential financial impacts.
      - They should take a broader view of cybersecurity as a business-wide risk, not just a technical issue.
      - Redefining risk and resilience, improving recovery plans, securing the supply chain and insuring against losses are key actions for CFOs.
        
        Adopt a "zero trust" model that verifies all users and equipment before network access. Question if current risk and resilience measures are sufficient.
        
        Develop robust recovery plans for dealing with attacks and restoring systems afterwards. Prevention is impossible, so focus on minimizing impact.
        
        Audit suppliers' cybersecurity protocols, as the supply chain is often the weakest link. Require adequate controls from connected third parties.
        
        Invest in cyber insurance after quantifying potential financial losses from an attack. However, paying ransomware attackers may only encourage further attacks.
      - Organizations should not wait for an attack to occur before improving their cybersecurity posture.
- - - - Implement suitable recruitment processes
      - Provide adequate training on using IT systems
      - Provide regular training to keep skills up-to-date
    - - Implementing continuity plans
      - Maintaining up-to-date systems and software
      - Applying personnel security and training
      - Assigning asset owners
      - Enforcing compliance policies