ISM 50 - Business Information SystemsLecture 9Instructor: Mary Doyle and Geoff RyderUC Santa CruzApril 27, 2009Class announcementsFolio Article 1 due todayAssignment 3 due WednesdayReading for next classMesserschmitt Ch 5, Sun Case Suggestion: Read Messerschmitt Ch5 first. Student Presentation Wednesday.Alex Becker (Sun-N Tier Case)Student Presentations Thomas Rowley (News) Theresa Mennell (News)News Folio PresentationISM 50Thomas RowleyApril 27, 2009EXCLUSIVE: Best Western Pwned, new facts emergingThomas Rowley 27 August 2008 ITWire.comMain Ideas Best Western customer information stolen via online booking system for a Berlin hotel. Best Western has management software that links all hotels to corporate. If someone higher up in Best Western had their login password breached as opposed to an employee at an individual hotel, what would the story look like?Information Stolen On August 21st, a Best Western hotel in Berlin had their online booking system hacked into and robed of customer information including credit card account numbers via login of a compromised employee password. The original article was written by a reporter who individually discovered the hack and stated that the breach affected all European customers in the last year, totaling 8 million. Statements released by Best Western confirm the breach was limited to Berlin and a total of 10 customers.Management Software Since 1997 Best Western has had all a modern hotel management software program linking all of their world-wide locations to corporate headquarters in Arizona. “The hacker did not gain access to Best Westerns central database, where indeed millions of guest data are stored and processed, but to one individual hotels application…. Bookings can be made up to 50 weeks prior to arrival date and are logged by booking date. ” –Stated by BW employee.Alternative Possibility If all it takes is a single password to access consumer information, then Best Western the hacker only obtained the password of a low level employee. With over 4000 hotels worldwide and with customer information stored for as long as a year if they book early, what sort of risk is Best Western, and companies that use similar software, exposing their clients to on a regular basis?Summary of How Article Relates to ISM 50 Concepts Information Systems are used to loosely link personal information of millions of individuals and over countless networks across the world. The damage control arising form IT issues covered by the press can be very troublesome to businesses, especially when their investment in IT is in the order of millions. Perhaps investment in safeguards for information systems are not a large enough and should be evaluated as having a higher share of IT investment cost.Oracle Acquires SUN MicrosystemsISM 50Theresa M. Mennell4/27/2009Main Ideas What is SUN? The Business of the deal The reality of the merger, and what it means for both companiesWhat is SUN? An Industry Developer Came up with Java, Jini, and utility computing Has had an unparalleled vision for identifying industry trends literally “before their time”. However SUN has been suffering for quite some time…The Business of the Deal Oracle purchased for $7.38 billion giving shareholders $9.50 per share. Actual offer is about $5.6 billion. SUN stock rose 37% on Monday to $9.15 per share.What this means for both companies… MySQL users very nervous… Oracle is a software company that just acquired a hardware company. Overall Industry “vibe”Sources Clark, Don, and Ben Worthen. “Oracle Snatches Sun Foiling IBM.”Wallstreet Journal. 21 April 2009. Wallstreet Journal Online. 24 April 2009. <http://online.wsj.com/article/SB124022726514434703.html> King, Rachael. “Is the Sun/Oracle Deal Good for MySQL Customers?”21 April 2009. Business Week. 24 April 2009. <http://www.businessweek.com/technology/technology_at_work/archives/2009/04/is_the_sunoracl.html> Goldman, David. “Sun- Oracle Deal isn’t a Big Loss to IBM”. 20 April 2009. CNN Money.com. 24 April 2009. <http://money.cnn.com/2009/04/20/technology/sun_oracle_ibm/?postversion=2009042013> Montalbeno, Elizabeth. “Where Did Sun Go Wrong?” 10 April 2009. InfoWorld.24 April 2009. <http://www.infoworld.com/t/mergers-and-acquisitions/where-did-sun-go-wrong-102> “Mr. Ellison helps himself”. 23 April 2009. The Economist. http://www.economist.com/business/displaystory.cfm?story_id=13527430Midterm ReviewMidterm exam May 6thIn-class review: 4/27, 4/29, 5/4Tips for how to succeed on the midterm: Sit down in a quiet place and do all the assigned readings, jotting down words you don’t know to go back and review later Attend lecture, to understand what parts of the material will be emphasized. Go to office hours if you need more help. Do the homework assignments (in particular H2), and look at any midterm review supplements we provideMidterm exam covers:149 - 168ReaderSun Case139 - 154TextbookClient-Server Computing107 - 132TextbookIT Architecture137 - 147ReaderAlibris Case83 - 98TextbookElectronic Commerce117 - 135ReaderCisco Case59 - 82TextbookIT Applications38 - 50TextbookInformation Management95 - 115ReaderFrito Lay Case71 - 93Reader, O’Brien IICompeting with IT35 - 70Reader, O’Brien IBus. I.S. Foundationspp. 3 - 33Reader, R. NolanIT HistoryO’Brien cases to know:Lesson or examplePageOrganizationKnowledge management makes an agile company: Denmark – Malaysia teams918 Siemens AGFamous example of Total Quality Management (TQM)877 GE“Clicks and bricks” ecommerce model, all coming together at the cash register816 StaplesExample of an e-procurement ERP system that gave a huge ROI735 WescoDue to complexity, IT projects can fail if rushed or not planned properly694 HersheyIROR for an IT project can be 30% to 40%683 ClariantVirtual manufacturing/SCM exemplar; 70% gross margins532 Cisco CaseIT systems unproductive without leadership or business process co-design501 Royal CarribeanAlphabet Soup (across, then down)IT SIS SCM NPV ROI IRORROR B2B B2CC2C HHC TPSCRM DBMS SAPCEO CIO CRPTQM MIS BPRPOP (1) POP (2) ERPO’Brien (p. 39): framework for information systems knowledge needed by business professionalsManagementChallengesSpecificTypes ofITFound-ationalConceptsDevelop-mentalProcessBusinessApplica-tionsInformationSystemsBPR decisions: streamline or reengineer Calculate NPV and make project decisionsProductivity paradox,