Information Systems and Data Analytics
Information Systems in Business
Understand the role of information systems in supporting business processes, decision-making, and competitive advantage. Types of systems: transaction processing systems (TPS), management information systems (MIS), decision support systems (DSS), executive information systems (EIS). Traps: confusing TPS (operational) with MIS (tactical) and EIS (strategic).
Internal Controls in IT
General IT controls (access security, change management, backup and recovery) and application controls (input, processing, output). Understand the risks of cybersecurity, cloud computing, and bring your own device (BYOD). Traps: relying solely on IT controls without manual controls; ignoring segregation of duties in IT.
Data Analytics
Data analytics types: descriptive, diagnostic, predictive, prescriptive. Techniques: regression analysis, trend analysis, ratio analysis, data mining. Use of software tools (Excel, Tableau, Power BI). Traps: confusing correlation with causation; overfitting models; data quality issues (completeness, accuracy, validity).
Worked Example
A company wants to predict customer churn. It uses historical data on customer usage, demographics, and service calls to build a logistic regression model. The model outputs a probability of churn. The company can then target high-risk customers with retention offers. This is predictive analytics.
Rule of thumb: Always validate data quality before analysis; ensure analytics supports business objectives.