PREPARED BY
Kathleen Gaillot
BT1213 Business Information
Management
RSM Erasmus University
2020 - 2021
IBA Y1 & Pre-Master IBA
Notes/imagery based on lectures.
Literature:
Business Information Management by Tobias Brandt &
Els van de Kar ISBN: 9781800061835 (print) or
9781800061842 (eBook)
Coordinator: Dr. Tobias Brandt
Literature compilation based on:
(Information Systems) Management
Information Systems: Managing the Digital
Firm (6th ed.) by Kenneth & Jane Laudon
(R) Programming Skills for Data Science
by Michael Freeman & Joel Ross
(SQL) Database Systems: A Practical
Approach to Design, Implementation, and
Management (6th ed.) by Thomas
Connolly & Carolyn Begg
Summary & Notes
BIM 1
, Table of Contents
Module 1: A Digital World ....................................................... 1 5.3 Business Process Model & Notation (BPMN) .............16
1.1 What is an Information System? .................................. 1 5.3.1 Events & Activities .............................................16
1.2 What is Digitalization? ................................................. 1 5.3.2 BPMN: Branching & Merging .............................16
1.2.1 IT Transformations .............................................. 2 5.3.3 BPMN: Exclusive Decisions ................................17
1.3 An Algorithmic World ................................................... 2 5.3.4 BPMN: Parallel Execution ..................................17
1.3.1 Algorithmic Accountability .................................. 2 5.3.5 BPMN: Resources ..............................................17
1.3.2 Big Tech ............................................................... 3 5.3.6 BPMN: Pools & Lanes ........................................18
Module 2: Algorithmic Thinking .............................................. 3 Module 6: Data Management, Modelling, & Manipulation ..19
2.1 Introduction ................................................................. 3 6.1 Relational Databases ..................................................19
2.2 Data Types .................................................................... 3 6.1.1 Data, Information & Knowledge ........................19
2.2.1 Mathematical Operators ..................................... 4 6.1.2 DNA of a Tweet ..................................................19
2.3 Data Structures ............................................................ 4 6.1.3 Relational Database Model ...............................19
2.3.1 Vectors ................................................................. 4 6.2 SQL & Data Manipulation ...........................................20
2.3.2 Lists ...................................................................... 4 6.2.1 DDL: Creating Tables..........................................20
2.3.3 Data Frames ......................................................... 4 6.2.2 DDL: Data Types .................................................20
2.3.4 Indexing ............................................................... 5 6.2.3 DML: Manipulating Table Structures & Rows ....21
2.4 Conditional Execution .................................................. 5 6.2.4 DML: Reading Table Rows .................................21
2.4.1 Control Structures: IF-ELSE .................................. 5 6.2.5 DML: Joining Tables ...........................................22
2.4.2 Logical Operators ................................................. 6 6.3 Normalization .............................................................22
2.5 Loops ............................................................................ 6 6.3.1 First Normal Form ..............................................22
2.5.1 Control Structures: WHILE ................................... 6 6.3.2 Second Normal Form .........................................23
2.5.2 Control Structures: FOR ....................................... 6 6.3.3 Third Normal Form ............................................24
2.6 Functions ...................................................................... 7 6.4 Data Modelling ...........................................................25
2.6.1 Customized Functions ......................................... 7 6.4.1 Entity-Relationship Model .................................25
2.6.2 Recursive Functions ............................................. 7 6.4.2 Sets & Keys ..............................................................26
2.7 Fibonacci example ........................................................ 7 6.4.3 In Practice ................................................................26
Module 3: Organizations in the Digital Age ............................. 8 6.4.5 Food for Thought ....................................................27
3.1 What is an Organization? ............................................. 8 Module 7: Enterprise Systems &
3.2 Collaboration Technology ............................................ 8 Data-Driven Decision-Making ................................................29
3.2.1 Leveraging Technology for Collaboration ............ 8 7.1 Generating & Processing Data ...................................29
3.2.2 Insights from Geospin: Process from the Start .... 9 7.1.1 Types of Transaction Processing Systems (TPS) 29
3.3 Digitalizations & IS: How it Changes Organizations ..... 9 7.2 Enterprise Systems .....................................................29
3.3.1 Flattening Organizations...................................... 9 7.2.1 Enterprise Resource Planning (ERP) ..................29
3.3.2 Organizational Politics ....................................... 10 7.2.2 Supply Chain Management (SCM) Systems .......29
3.3.3 Strengthening Competitive Position of an Org. . 10 7.2.3 Customer Relationship Management
3.3.4 Spotlight Examples ............................................ 10 (CRM) Systems ............................................................30
Module 4: Technological Foundations & 7.2.4 Supporting Decision-Making .............................30
Modern IT Infrastructure ....................................................... 11 7.3 Integrating the Data Asset: Data Warehousing ..........30
4.1 Moore’s Law ............................................................... 11 7.4 Business Intelligence ..................................................31
4.1.1 Chips & Transistors ............................................ 11 7.5 Online Analytical Processing (OLAP) ..........................31
4.1.2 Data Transmission ............................................. 11 7.5.1 Data Mining .......................................................31
4.2 Evolution of IT Hardware ........................................... 11 7.6 Association Rules........................................................31
4.3 The Internet ............................................................... 12 7.7 Big Data ......................................................................32
4.3.1 Internet Resources ............................................ 12 7.7.1 Analytics ............................................................32
4.3.2 IP Addresses ...................................................... 12 Module 8: Digital Markets & Platform Ecosystems ...............33
4.3.3 DNS .................................................................... 12 8.1 E-Commerce ...............................................................33
4.3.4 TCP/IP ................................................................ 13 8.1.1 M-Commerce .....................................................33
4.4 Cloud Computing ........................................................ 13 8.1.2 Business Models vs Revenue Models ................34
4.4.1 Types of Computing Services ............................. 13 8.2 The Network Effects ...................................................34
4.5 Mobile Technology ..................................................... 14 8.2.1 Value Sources in Networks ................................34
4.6 Net Neutrality............................................................. 14 8.2.2 A Market-perspective on Networks ..................34
Module 5: Business Process Modelling ................................. 15 8.2.3 Network Effects & Competition .........................35
5.1 Business Processes ..................................................... 15 8.3 Platforms, Collaborative Consumptions &
5.2 Business Process Management .................................. 15 Servitization .....................................................................36
5.2.1 Business Process Management Lifecycle........... 15 Examination Information .......................................................36
ii
, Learning Objectives
Discuss & Reflect Model & Structure Apply & Create
(1) Discuss the evolution of digital (3) Apply BPMN techniques to derive a (5) Formulate SQL queries that manipulate
technologies & current technological business process model for a given databases to achieve a given outcome.
trends. business process. (6) Develop basic algorithms in R that achieve
(2) Evaluate the impact of established & (4) Organize a database model in a systematic a given objective.
emerging digital technologies on business, way using Entity-Relationship-Modelling.
society, and your personal lives.
Module 1: A Digital World
Chapters 1 & 4
1.1 What is an Information System?
Technical perspective: the Information
System (IS) artefact. An Information System
can be defined technically as a set of
interrelated components that collect (or
retrieve), process, store, and distribute
information to support decision-making and
control in an organization
The organizational perspective on
information systems goes beyond the IS
artefact, understanding an information
system to include not just hardware and
software, but also the data, the
organizational processes, and the people
involved in its use. The organizational
perspective analyses information systems as
sociotechnical systems at the intersection of
technology, organizations, and management.
1.2 What is Digitalization?
Information systems as a management discipline emerged in the 80s/90s both in the US (more organizational
tradition) and Europe (more technical tradition). IS researchers analysed how information technology and systems
can support business operations, organizational processes, and value creation.
Reflected in the creation of IT departments as cross-functional support units
Strategic relevance of IT support and process redesign, leading to creation of executive positions (Chief
Information Officer and similar)
The concepts of digitalization and digital transformation shift the role of digital technologies from support to being the
core value proposition. The job description of a Chief Digital Officer (or similar) is very different from a CIO, as s/he is hired to
fundamentally transform the core of a company’s business, products and services.
1
, 1.2.1 IT Transformations
Information Technology is at the intersection of, and transforms all sectors:
Accounting Finance Marketing Operations HR
Virtually all accounting Cryptocurrency Technology fundamentally Supply chain Social media channels
data is handled High-frequency trading changed the marketing management Freelancing,
electronically Tech companies landscape Process outsourcing &
Leaks represent vast share of Social media channels, engineering changing nature of
Data security & recent M&As ubiquitous IT (cf. minority Automation, work
veracity (Mergers & Acquisitions) report) internet-of-things Lifelong learning
Data, data, data (IoT)
Example of a fintech unicorn (=startup, privately held company valued at >1bn$): Adyen, focused on
building modern infrastructures directly connected to card networks and local payment methods across
the world, allowing for unified commerce and providing shopper data insights to merchants. They
enabled revenue growth online.
In terms of payment platforms, there is growing competition for payment integration & facilitation… PayPal, Alipay,
Amazon Payments, Klarna, iDeal, Strip, Visa/MasterCards, Classical banks…
1.3 An Algorithmic World
Algorithm: a procedure for solving a mathematical problem
(as of finding the greatest common divisor) in a finite number
of steps that frequently involves repetition of an operation.
Broadly: A systematic procedure for solving a problem or
accomplishing some end.
Modern life is fundamentally governed and influenced by
algorithms, including:
• Advertisements you are exposed to (Facebook, Google, Netflix)
• People we elect for office (Cambridge Analytica scandal)
• How the economy is run (algorithmic trading, automated
supply chains)
1.3.1 Algorithmic Accountability
Algorithmic systems are increasingly used as part of decision-making processes, with potentially significant
consequences for individuals, organizations and societies as a whole. Increasing concerns that many of these systems
are opaque to the people affected by their use and lack clear explanations for the decisions they make. This lack of
transparency risks undermining meaningful scrutiny & accountability:
Significant concern when these systems are applied as part of decision-making processes that can have a
considerable impact on people's human rights. Examples include critical safety decisions in autonomous vehicles;
allocation of health and social service resources, etc.
Algorithms in social media influence politics & the formation of public opinion…
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