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Critical infrastructures

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  • Unit 5 - Operations Mgt/
  • 5.9 Management Information Systems (HL)/
  • Critical infrastructures

Critical infrastructures (AO2)

This section of the syllabus requires HL students to understand critical infrastructures, including (i) artificial neural networks (ANN), (ii) data centres, and (iii) cloud computing.

Critical infrastructures are the crucial computer systems, structures, networks, and facilities required for the effective functioning of an organization in the modern and digital corporate world. They consist of both physical infrastructures within an organization's management information systems (such as artificial neural networks and data centres) as well as non-physical infrastructures (such as cloud computing) that power modern business operations.

Examples of the applications of critical infrastructures include:

  • Emergency services (including police, fire, and healthcare) rely on critical infrastructures for upholding public safety and welfare.

  • Energy systems (such as as power plants and biomass energy systems) use critical infrastructures to power homes and businesses.

  • Financial services (such as commercial banks and stock markets) use critical infrastructures for financial stability and economic growth.

  • Social media platforms and other digital platforms rely on critical infrastructures for connecting people and sharing information in a safe and secure online environment.

  • Supply chain systems and distribution networks use critical infrastructures for the efficient movement of raw materials, components, and finished goods.

  • The Internet of Things (IoT) devices, which require critical infrastructures for monitoring and controlling connectivity and data processing.

  • Transportation systems (such as smart motorways, airports, and sea ports) depend on critical infrastructures  for the methodical and orderly movement of people, raw materials, semi-finished goods (components), and finished goods.

Artificial neural networks (ANN) (AO2)

Artificial neural networks (ANN) are a feature of critical infrastructure and refer to advanced computing systems that are designed to simulate how the human brain processes and analyses data and information. ANN relies on the use of learning algorithms that can acquire knowledge, solve problems, and make decisions independently by processing new data as these are received.

ANNs can be used for a variety of applications, such as chatbots or virtual assistants that offer 24/7 customer service. Chatbots maintain an online discussion with a customer in an automatic and autonomous manner. The software simulates a real conversation, as if it were with a real human being. These are commonly and increasingly used by businesses in the tertiary sector, including commercial banks, hotels, restaurants, and airlines to deal with customer queries in real time.

Chatbots offer 24/7 customer service to customers

Data centres (AO2)

Data centres refer to the physical facilities or the locations of computer systems with networks and structures that support organizations in accommodating their telecommunications and data storage and processing systems. They are designed for the secure storage, management, and dissemination of large amounts of data.

Services provided by data centres include, but are not limited to, the following:

  • Data backup and archiving

  • Email and file sharing

  • Virtual communications and collaboration systems

Data centres allow organizations to have easy access to data quickly and securely, allowing them to provide improved services to their customers. Hence, data centres have an important role in the modern corporate world and are critical for businesses to stay competitive.

Cloud computing (AO2)

Rather than using a local server in a physical location (such as data centres) or a personal computer, businesses can use cloud computing. Cloud computing (sometimes referred to as cloud services) is a virtual, computer generated online space that enables users to store, organize, manage, process, and retrieve data in safe and efficient ways.

Cloud services do not require any external storage equipment. This disruptive technology represents great advantages for companies because it allows users to enjoy management information tools from any location in the world by just connecting to the Internet from their mobile device.

Table 1 - Differences between data centres and cloud computing

Data CentresCloud computing

A physical resource

A virtual resource
Requires significant set-up and investment costs

Relatively insignificant investment costs

High costs of maintenance

Relatively low maintenance costs

Does not rely on Internet or Wi-Fi connections

Requires stable Internet or Wi-Fi connections

Key terms

  • Artificial neural networks (ANN) are a feature of critical infrastructure and refer to the use of learning algorithms that can learn things, solve problems, and make decisions independently by processing new data as these are received.

  • Cloud computing is a virtual, computer generated online space that enables businesses to store, organize, manage, process, and retrieve data in safe and efficient ways.

  • Critical infrastructures are the crucial computer systems, structures, networks, and facilities required for the effective functioning of an organization in the modern and digital corporate world.

  • Data centres are the physical facilities or the locations of computer systems with networks and structures that support organizations in accommodating their telecommunications and data storage systems.

Critical infrastructures - True or False Quiz

To test your understanding of this topic (Critical infrastructures), have a go at the following true or false questions.

No.StatementTrue or False?
1.Critical infrastructures are physical infrastructures that are part of an organization's management information systems.

True

2.Social media platforms rely on critical infrastructures to connect people and share information in a safe and secure online environment.

True

3.The Internet of Things (IoT) devices require critical infrastructures for monitoring and controlling connectivity and data processing.

True

4.Smart transportation systems depend on critical infrastructures for the efficient movement of people, raw materials, semi-finished goods (components), and finished goods.

True

5.Cloud computing services require on the use of external storage equipment.

False

6.Cloud computing allows users to enjoy management information tools from any location in the world.

True

7.Chatbots are a commonly and increasingly used technology by businesses operating in the secondary sector.

False - they are used in the tertiary sector

8.Artificial neural networks are designed for the secure storage, management, and dissemination of large amounts of data.

False - this refers to data centres

9.Data centres have relatively low maintenance costs.

False

10.Data centres are designed for the secure storage and management of large amounts of data.

True

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