ISM 50 - Business Information SystemsLecture 17Instructors: Mary Doyle, Geoff RyderUC—Santa CruzJune 1, 2009Class announcementsDatabase project due todayFolio #3 due today**Team business paper due Wednesday**From Ch. 13, read 13.1, 13.2, and 13.4 for next timeWed. speakers: Samir Chaudry, Robert CulpiFinal Exam Monday, 6/8, 7:30 – 10:30 PMcontact the teaching staff if you need special accommodations or have a conflictToday’s Class Announcements Complete comments on Chapter 8 Guest Speaker: Mark CiancaChapter 9: Applications and the OrganizationProject Management Tracie Kemmerle Akamai Case Presentation Lecture on Akamai CaseChapter 8 continued…. Last lecture we covered:ExternalitiesNetwork effectsCritical massPositive (and negagive) feedbackLock-in, switching, and standards Today we finish with:Software economiesIntellectual propertyPrivacy policy and regulationConcepts from Chapter 8Externality Network effectsCritical massPositive feedbackStandardizationLock-inSwitching costsPhases in supplying content (create, replicate, distribute)Software economies• Sunk costs• Intellectual property• Copyright• Patent• Privacy policy• Privacy regulationEconomic Properties of Information Phases in supply of contentCreation Author (book, song, music) Produce (movie, performance) Collect (almanac, weather) Some combination (news reporting)Replication (for each user) Distribution (network? Physical means?)Software economies Creation is expensiveSunk costsDevelopment is risky Replication is inexpensive Costs of maintenance and upgrade are SIGNIFICANT!Related to lock-inIntellectual Property “Information or ideas with commercial value for which the government has granted exclusive property rights, including, copyright, patent, trademark, and trade secret” We’ll discuss:Copyrights and PatentsPrivacy PolicyRegulationsCopyrights and Patents Copyright grants an author exclusive control over original works of information content or software A patent is granted by the federal government for the right to make, use or sell an invention for a fixed period of time. More on each of these…..Copyrights Prevents others from appropriating, replicating or displaying a work without permission of the copyright holder. Limitations: fair use - we can copy materials for use in our class Major implications for digital materialsWhat is digital fair use?Digital Millenium Copyright Act (DMCA) used by RIAA and others to make charges of copyright violation called infringement.Copyrighting Software Software license stipulates the terms and conditions under which copyrighted software is usedFreeware - copyright, but is given awayShareware - copyright, but seeks voluntary paymentCopyleft - limits derivative works to those distributed free of charge Infringement - violation of copyright Piracy - selling large volumes of copyrighted materialPatents Encourage research and development due to exclusive rights (for a limited time) Patents in computing and communications may be cross-licensed for mutual benefit (examples include Microsoft and Lexmark, Microsoft and HP) Software patent controversy - when is software an innovation? When not?Privacy Policy The issue of personally identifiable information (PII)What is PII?Name, data of birth, SSN, credit card info, drivers license, medical or health informationIssues:Identity theftFraudDiscrimination Secure transmission (encryption)Concerns when dealing with 3rd party outsourcingSecurity of dataPersistence of dataRegulationsA selection of privacy laws: Federal Wiretap Statute - 1968 amended by Electronic Communication Privacy Act - 1986 FERPA Family Educational Rights and Privacy Act -1974 (updated many times through 2009) HIPAA - Health Insurance Portability and Accountability Act - 1996 Fair Credit Reporting Act (FCRA) - 1997 Gramm-Leach-Bliley Act - 1999Chapter 9Applications and the OrganizationBuild vs. Buy?Purchase off the Shelf+ less time and cost+ benefits of using a “standard” solution+ support available- must mold org to app- no potential for competitive advantageOutsource+ developers not as familiar with org as you+ more opportunity for customizing than off the shelf- contractor may share knowledge with competitors- contractor may have too much bargaining powerMake+ most customizable of 3+ easier iteration between conceptualization and development needed- most risky- org may lack competency to do itApplication Lifecycle It is important to think beyond acquiring an applicationHow do we come with the idea?How do we architect it.How do we implement?How do we extend and maintain it? For this reason, the software engineering community came up with:Application Lifecycle ModelApplication LifecycleStages:1. Conceptualization2. Analysis3. Architecture Design4. Development Evolution5. Testing and Evaluation6. Deployment7. Operations, Maintenance, and Upgrade1) ConceptualizationWhat is the vision?What are the objectives?What is the business case? What problem or opportunity does it address?EXAMPLE: HHC to inform flight attendants which passengers are low and high value.Business Case:Increase repeat business from high value customers.1) Conceptualization -- Example:Application LifecycleStages:1. Conceptualization2.Analysis3. Architecture Design4. Development Evolution5. Testing and Evaluation6. Deployment7. Operations, Maintenance, and Upgrade2) Analysis Describe what the application will do. Enough info to allow “stakeholders” to review idea Don’t make highly detailed specifications Describe scenarios in which it is used(Use Cases)2) Analysis -- ExampleExample: Scenario: REPORTING FUNCTIONFA wants to report that passenger in 13F is bad.FA clicks “report pass.” button followed by 13fHHC finds from its data that Joe Schmoe is in 13fWhen HHC is in radio range of WiFi AP, HHC tells server that Joe Schmoe is bad.Application LifecycleStages:1. Conceptualization2. Analysis3.Architecture Design4. Development Evolution5. Testing and Evaluation6. Deployment7. Operations, Maintenance, and Upgrade3) Architecture Design Decompose the application into subsystemsHardware, softwareTry use commercial off the shelf subsystemsTry to use standard infrastructure