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Module ONE. BUSINESS DRIVEN INFORMATION SYSTEMS, 1
Chapter 1. Information Systems in Business, 2
Opening Case Study: Apple—Merging Technology, Business, and Entertainment, 3
INTRODUCTION, 7
Section 1.1 Information Systems in Business, 7
INFORMATION TECHNOLOGY'S ROLE IN BUSINESS, 7
Information Technology's Impact on Business Operations, 7
INFORMATION TECHNOLOGY BASICS, 10
Data, Information, and Business Intelligence, 10
IT Resources, 11
IT Cultures, 13
ROLES AND RESPONSIBILITIES IN INFORMATION TECHNOLOGY, 13
The Gap Between Business Personnel and IT Personnel, 15
MEASURING INFORMATION TECHNOLOGY'S SUCCESS, 16
Efficiency and Effectiveness Metrics, 17
Benchmarking—Baseline Metrics, 17
The Interrelationship Between Efficiency and Effectiveness IT Metrics, 18
Section 1.2 Business Strategy, 20
IDENTIFYING COMPETITIVE ADVANTAGES, 21
THE FIVE FORCES MODEL—EVALUATING BUSINESS SEGMENTS, 21
Buyer Power, 21
Supplier Power, 22
Threat of Substitute Products or Services, 23
Threat of New Entrants, 23
Rivalry among Existing Competitors, 23
THE THREE GENERIC STRATEGIES—CREATING A BUSINESS FOCUS, 24
VALUE CHAIN ANALYSIS—TARGETING BUSINESS PROCESSES, 25
Value Creation, 25
Summary of Key Themes, 28
Key Terms, 28
Closing Case One: Business 2.0: Bad Business Decisions, 29
Closing Case Two: Innovative Business Managers, 31
Closing Case Three: The World Is Flat—Thomas Friedman, 33
Making Business Decisions, 34
Apply Your Knowledge, 35
Business Driven Best Sellers, 39
Chapter 2. Strategic Decision Making, 42
Opening Case Study: Second Life: Succeeding in Virtual Times, 43
INTRODUCTION, 47
Section 2.1 Decision-Making Systems, 47
DECISION MAKING, 47
TRANSACTION PROCESSING SYSTEMS, 49
DECISION SUPPORT SYSTEMS, 50
EXECUTIVE INFORMATION SYSTEMS, 52
Digital Dashboards, 52
ARTIFICIAL INTELLIGENCE, 55
Expert Systems, 56
Neural Networks, 56
Genetic Algorithms, 57
Intelligent Agents, 58
Data Mining, 59
Section 2.2 Business Processes, 59
UNDERSTANDING THE IMPORTANCE OF BUSINESS PROCESSES, 59
BUSINESS PROCESS IMPROVEMENT, 62
BUSINESS PROCESS REENGINEERING, 63
Finding Opportunity Using BPR, 63
Selecting a Process for Reengineering, 64
Pitfalls of BPR, 65
BUSINESS PROCESS MODELING, 65
BUSINESS PROCESS MANAGEMENT, 68
IS BPM for Business or Information Technology?, 68
BPM Risks and Rewards, 69
Business Process Modeling Examples, 69
Summary of Key Themes, 73
Key Terms, 73
Closing Case One: Defense Advanced Research Projects Agency (DARPA) Grand Challenge, 74
Closing Case Two: Revving Up Sales at Harley-Davidson, 75
Closing Case Three: Delta Air Lines Plays Catch-Up, 77
Making Business Decisions, 79
Apply Your Knowledge, 80
Business Driven Best Sellers, 82
Chapter 3. Ebusiness, 84
Opening Case Study: Amazon.com— Not Your Average Bookstore, 85
INTRODUCTION, 87
Section 3.1 Business and the Internet, 87
DISRUPTIVE TECHNOLOGY, 87
Disruptive versus Sustaining Technology, 88
The Internet—Business Disruption, 89
EVOLUTION OF THE INTERNET, 90
Evolution of the World Wide Web, 91
WEB 2.0, 93
Mashups, 94
THE FUTURE—WEB 3.0, 95
Transforming the Web into a Database, 95
An Evolutionary Path to Artificial Intelligence, 96
The Realization of the Semantic Web and SOA, 96
Evolution Toward 3D, 96
ACCESSING INTERNET INFORMATION, 96
Intranet, 96
Extranet, 97
Portal, 97
Kiosk, 97
PROVIDING INTERNET INFORMATION, 98
Internet Service Provider, 98
Online Service Provider, 99
Application Service Provider, 99
Section 3.2 Ebusiness, 101
EBUSINESS BASICS, 101
EBUSINESS MODELS, 102
Business-to-Business (B2B), 103
Business-to-Consumer (B2C), 103
Consumer-to-Business (C2B), 104
Consumer-to-Consumer (C2C), 104
ORGANIZATIONAL STRATEGIES FOR EBUSINESS, 105
Marketing/Sales, 105
Financial Services, 106
Procurement, 107
Customer Service, 108
Intermediaries, 109
MEASURING EBUSINESS SUCCESS, 110
Website Metrics, 111
EBUSINESS BENEFITS AND CHALLENGES, 113
NEW TRENDS IN EBUSINESS: EGOVERNMENT AND MCOMMERCE, 114
Mcommerce, 115
Summary of Key Themes, 117
Key Terms, 117
Closing Case One: eBay—The Ultimate Ebusiness, 118
Closing Case Two: Ebiz, 120
Closing Case Three: How Do You Value Friendster?, 122
Making Business Decisions, 123
Apply Your Knowledge, 124
Business Driven Best Sellers, 127
Module TWO. ESSENTIALS OF INFORMATION SYSTEMS, 128
Chapter 4. Ethics and Information Security, 129
Opening Case Study: Sarbanes-Oxley: Where Information Technology, Finance, and Ethics Meet, 130
INTRODUCTION, 132
Section 4.1 Ethics, 132
ETHICS, 132
INFORMATION ETHICS, 133
Information Has No Ethics, 134
DEVELOPING INFORMATION MANAGEMENT POLICIES, 135
Ethical Computer Use Policy, 135
Information Privacy Policy, 137
Acceptable Use Policy, 138
Email Privacy Policy, 138
Internet Use Policy, 140
Anti-spam Policy, 140
ETHICS IN THE WORKPLACE, 141
Monitoring Technologies, 142
Employee Monitoring Policies, 143
Section 4.2 Information Security, 144
HOW MUCH WILL DOWNTIME COST YOUR BUSINESS?, 144
PROTECTING INTELLECTUAL ASSETS, 146
THE FIRST LINE OF DEFENSE—PEOPLE, 148
THE SECOND LINE OF DEFENSE—TECHNOLOGY, 150
Authentication and Authorization, 151
Prevention and Resistance, 153
Content Filtering, 153
Encryption, 154
Firewalls, 154
Detection and Response, 155
Summary of Key Themes, 157
Key Terms, 157
Closing Case One: Banks Banking on Security, 158
Closing Case Two: Hacker Hunters, 159
Closing Case Three: Executive Dilemmas in the Information Age, 160
Making Business Decisions, 162
Apply Your Knowledge, 163
Business Driven Best Sellers, 165
Chapter 5. Enterprise Architectures, 167
Opening Case Study: Virgin Mobile, 168
INTRODUCTION, 170
Section 5.1 Managing Enterprise Architectures, 170
ENTERPRISE ARCHITECTURES, 170
INFORMATION ARCHITECTURE, 172
Backup and Recovery, 172
Disaster Recovery, 173
Information Security, 175
INFRASTRUCTURE ARCHITECTURE, 176
Flexibility, 177
Scalability, 177
Reliability, 177
Availability, 178
Performance, 178
APPLICATION ARCHITECTURE, 178
Web Services, 179
Open Systems, 180
Section 5.2 Architecture Trends, 181
ARCHITECTURE TRENDS, 181
SERVICE ORIENTED ARCHITECTURE, 182
SOA Business Benefits, 182
Service, 183
Interoperability, 184
Loose Coupling, 185
VIRTUALIZATION, 186
What Are Virtual Machines?, 187
Virtualization Business Benefits, 187
Additional Virtualization Benefits, 189
GRID COMPUTING, 189
Grid Computing Business Benefits, 190
Summary of Key Themes, 192
Key Terms, 193
Closing Case One: Chicago Tribune 's Server Consolidation a Success, 193
Closing Case Two: The U.S. Open Supports SOA, 194
Closing Case Three: eBay's Grid, 195
Making Business Decisions, 196
Apply Your Knowledge, 197
Business Driven Best Sellers, 199
Chapter 6. Databases and Data Warehouses, 200
Opening Case Study: It Takes a Village to Write an Encyclopedia, 201
INTRODUCTION, 204
Section 6.1 Database Fundamentals, 204
ORGANIZATIONAL INFORMATION, 204
The Value of Transactional and Analytical Information, 206
The Value of Timely Information, 206
The Value of Quality Information, 207
STORING ORGANIZATIONAL INFORMATION, 209
RELATIONAL DATABASE FUNDAMENTALS, 210
Entities and Attributes, 210
Keys and Relationships, 210
RELATIONAL DATABASE ADVANTAGES, 212
Increased Flexibility, 212
Increased Scalability and Performance, 212
Reduced Information Redundancy, 213
Increased Information Integrity (Quality), 213
Increased Information Security, 213
DATABASE MANAGEMENT SYSTEMS, 214
Data-Driven Websites, 214
Data-Driven Website Business Advantages, 215
Data-Driven Business Intelligence, 215
INTEGRATING INFORMATION AMONG MULTIPLE DATABASES, 217
Section 6.2 Data Warehouse Fundamentals, 219
ACCESSING ORGANIZATIONAL INFORMATION, 219
HISTORY OF DATA WAREHOUSING, 219
DATA WAREHOUSE FUNDAMENTALS, 220
Multidimensional Analysis, 220
Information Cleansing or Scrubbing, 222
DATA MINING AND BUSINESS INTELLIGENCE, 223
Summary of Key Themes, 224
Key Terms, 225
Closing Case One: Searching for Revenue—Google, 225
Closing Case Two: Mining the Data Warehouse, 228
Closing Case Three: Harrah's—Gambling Big on Technology, 229
Making Business Decisions, 231
Apply Your Knowledge, 232
Business Driven Best Sellers, 235
Chapter 7. Networks, Telecommunications, and Mobile Technology, 236
Opening Case Study: The Ironman, 237
INTRODUCTION, 239
Section 7.1 Networks and Telecommunications, 239
NETWORK BASICS, 239
Using Networks and Telecommunications for Business Advantages, 240
VOICE OVER IP, 240
NETWORKING BUSINESSES, 242
INCREASING THE SPEED OF BUSINESS, 244
SECURING BUSINESS NETWORKS, 245
Data Sharing, 246
Section 7.2 Mobile Technology, 247
BUSINESS DRIVERS FOR A MOBILE WORKFORCE, 247
USING CELLULAR TECHNOLOGIES IN BUSINESS, 249
Personal Data Assistants, 252
Bluetooth, 252
USING SATELLITE TECHNOLOGY IN BUSINESS, 253
Global Positioning System (GPS), 256
USING WIRELESS TECHNOLOGIES IN BUSINESS, 258
WiMAX, 260
Radio Frequency Identification (RFID), 260
MOBILE WORKFORCE TRENDS, 263
Summary of Key Themes, 266
Key Terms, 266
Closing Case One: Public Safety, 266
Closing Case Two: UPS versus FedEx: Head-to-Head on Wireless, 267
Closing Case Three: Improving IT's Bedside Manner at Florida Hospital, 268
Making Business Decisions, 270
Apply Your Knowledge, 271
Business Driven Best Sellers, 274
Module THREE. ENTERPRISE INFORMATION SYSTEMS, 276
Chapter 8. Operations Management and Supply Chain Management, 277
Opening Case Study: Dell's Famous Supply Chain, 278
INTRODUCTION, 280
Section 8.1 Operations Management, 280
OPERATIONS MANAGEMENT FUNDAMENTALS, 280
OM IN BUSINESS, 282
IT'S ROLE IN OM, 283
OM Strategic Business Systems, 283
COMPETITIVE OM STRATEGY, 285
Cost, 285
Quality, 285
Delivery, 286
Flexibility, 286
Service, 287
OM AND THE SUPPLY CHAIN, 287
Section 8.2 Supply Chain Management, 290
SUPPLY CHAIN FUNDAMENTALS, 290
IT'S ROLE IN THE SUPPLY CHAIN, 292
Visibility, 293
Consumer Behavior, 293
Competition, 294
Speed, 295
SUPPLY CHAIN MANAGEMENT SUCCESS FACTORS, 295
SCM Success Metrics, 295
Make the Sale to Suppliers, 297
Wean Employees Off Traditional Business Practices, 297
Ensure the SCM System Supports the Organizational Goals, 297
Deploy in Incremental Phases and Measure and Communicate Success, 297
Be Future Oriented, 297
SUPPLY CHAIN MANAGEMENT SUCCESS STORIES, 297
FUTURE SUPPLY CHAIN TRENDS, 299
Summary of Key Themes, 300
Key Terms, 300
Closing Case One: BudNet, 301
Closing Case Two: Listerine's Journey, 302
Closing Case Three: How Levi's Got Its Jeans into Wal-Mart, 303
Making Business Decisions, 305
Apply Your Knowledge, 306
Business Driven Best Sellers, 310
Chapter 9. Customer Relationship Management and Business Intelligence, 312
Opening Case Study: Customer First Awards, 313
Section 9.1 Customer Relationship Management, 316
CUSTOMER RELATIONSHIP MANAGEMENT FUNDAMENTALS, 316
CRM as a Business Strategy, 318
Business Benefits of CRM, 318
Evolution of CRM, 319
Operational and Analytical CRM, 320
USING IT TO DRIVE OPERATIONAL CRM, 321
Marketing and Operational CRM, 321
Sales and Operational CRM, 322
Customer Service and Operational CRM, 325
Customer Relationship Management (CRM) Metrics, 327
USING IT TO DRIVE ANALYTICAL CRM, 328
CRM TRENDS: SRM, PRM, ERM, 330
Supplier Relationship Management, 330
Partner Relationship Management, 330
Employee Relationship Management, 331
THE UGLY SIDE OF CRM: WHY CRM MATTERS MORE NOW THAN EVER BEFORE, 331
Section 9.2 BUSINESS INTELLIGENCE, 333
BUSINESS INTELLIGENCE, 333
The Problem: Data Rich, Information Poor, 333
The Solution: Business Intelligence, 334
OPERATIONAL, TACTICAL, AND STRATEGIC BI, 336
BI's Operational Value, 337
DATA MINING, 338
Cluster Analysis, 339
Association Detection, 339
Statistical Analysis, 340
BUSINESS BENEFITS OF BI, 342
BI Business Benefits, 343
Summary of Key Themes, 345
Key Terms, 345
Closing Case One: Calling All Canadians, 345
Closing Case Two: Fighting Cancer with Information, 346
Closing Case Three: Intelligent Business: Is It an Oxymoron?, 348
Making Business Decisions, 350
Apply Your Knowledge, 351
Business Driven Best Sellers, 354
Chapter 10. Enterprise Resource Planning and Collaboration Systems, 355
Opening Case Study: Campus ERP, 356
INTRODUCTION, 358
Section 10.1 Enterprise Resource Planning, 358
ENTERPRISE RESOURCE PLANNING, 358
The Heart of ERP, 361
The Evolution of ERP, 362
CORE ERP COMPONENTS, 365
Accounting and Finance ERP Components, 365
Production and Materials Management ERP Components, 365
Human Resources ERP Components, 365
EXTENDED ERP COMPONENTS, 366
Business Intelligence ERP Components, 366
Customer Relationship Management ERP Components, 366
Supply Chain Management ERP Components, 367
Ebusiness ERP Components, 367
INTEGRATING SCM, CRM, AND ERP, 367
Integration Tools, 369
MEASURING ERP SUCCESS, 370
CHOOSING ERP SOFTWARE, 371
Finding the Right ERP Solution, 371
Section 10.2 Collaboration Systems, 373
TEAMS, PARTNERSHIPS, AND ALLIANCES, 373
COLLABORATION SYSTEMS, 374
KNOWLEDGE MANAGEMENT SYSTEMS, 375
KM in Business, 376
Explicit and Tacit Knowledge, 376
KM Technologies, 378
KM and Social Networking, 378
CONTENT MANAGEMENT SYSTEMS, 379
Working Wikis, 379
WORKFLOW MANAGEMENT SYSTEMS, 380
GROUPWARE SYSTEMS, 381
Videoconferencing, 383
Web Conferencing, 383
Instant Messaging, 384
Summary of Key Themes, 385
Key Terms, 385
Closing Case One: Dreamworks Animation Collaboration, 386
Closing Case Two: Enterprise Content Management at Statoil, 387
Closing Case Three: Shell Canada Fuels Productivity with ERP, 389
Making Business Decisions, 390
Apply Your Knowledge, 391
Business Driven Best Sellers, 396
Module FOUR. DEVELOPING INFORMATION SYSTEMS, 397
Chapter 11. Systems Development and Project Management, 398
Opening Case Study: HP's Software Problems, 399
INTRODUCTION, 401
Section 11.1 Developing Enterprise Applications, 401
DEVELOPING SOFTWARE, 401
THE SYSTEMS DEVELOPMENT LIFE CYCLE (SDLC), 402
TRADITIONAL SOFTWARE DEVELOPMENT METHODOLOGY: WATERFALL, 403
Waterfall Methodology, 404
AGILE SOFTWARE DEVELOPMENT METHODOLOGIES, 405
Rapid Application Development (RAD) Methodology, 406
Extreme Programming Methodology, 406
Rational Unified Process (RUP) Methodology, 407
Scrum Methodology, 407
Implementing Agile Methodologies, 408
DEVELOPING SUCCESSFUL SOFTWARE, 408
Slash the Budget, 408
If It Doesn't Work, Kill It, 409
Keep Requirements to a Minimum, 409
Test and Deliver Frequently, 409
Assign Non-IT Executives to Software Projects, 409
Section 11.2 Project Management, 410
INTRODUCTION, 410
MANAGING SOFTWARE DEVELOPMENT PROJECTS, 410
The Triple Constraint, 410
PROJECT MANAGEMENT FUNDAMENTALS, 412
CHOOSING STRATEGIC PROJECTS, 413
UNDERSTANDING PROJECT PLANNING, 414
Project Charter, 415
Project Plan, 415
MANAGING PROJECTS, 417
Managing People, 418
Managing Communications, 418
Managing Change, 418
OUTSOURCING PROJECTS, 419
Outsourcing Benefits, 423
Outsourcing Challenges, 423
Summary of Key Themes, 424
Key Terms, 425
Closing Case One: Disaster at Denver International Airport, 425
Closing Case Two: Reducing Ambiguity in Business Requirements, 426
Closing Case Three: Staying on Track—Toronto Transit, 427
Making Business Decisions, 428
Apply Your Knowledge, 430
Business Driven Best Sellers, 433
Chapter 12. Globalization, Innovation, and 21^st Century Organizational Trends, 435
Opening Case Study: E-Spionage, 436
INTRODUCTION, 439
Section 12.1 GLOBALIZATION, 439
GLOBALIZATION, 439
Cultural Business Challenges, 439
Political Business Challenges, 440
Global Geoeconomic Business Challenges, 440
GLOBAL IT BUSINESS STRATEGIES, 441
Governance and Compliance, 442
GLOBAL ENTERPRISE ARCHITECTURES, 444
GLOBAL INFORMATION ISSUES, 444
Information Privacy, 446
Europe, 447
The United States, 448
Canada, 448
GLOBAL SYSTEMS DEVELOPMENT, 449
Integrating Global Systems, 449
Section 12.2 21^st CENTURY ORGANIZATIONAL TRENDS, 451
21^ST CENTURY ORGANIZATION TRENDS, 451
INNOVATION: FINDING NEW, 452
Find Your Relevant Edge, 453
Assemble Innovation Hothouses, 453
Reward Risk Takers, 453
Celebrate Diversity, 453
Look Around, 453
Mix Practitioners and Developers, 454
SOCIAL ENTREPRENEURSHIP: GOING GREEN, 454
Energy Consumption, 454
Recycle IT Equipment, 456
Greener IT, 457
SOCIAL NETWORKS: WHO'S WHO, 458
Passive Search, 458
Boomerangs, 459
Marketing Networks, 460
VIRTUAL WORLDS: IT'S A WHOLE NEW WORLD, 460
Virtual Worlds, 460
Virtual Workforce, 462
Summary of Key Themes, 464
Key Terms, 464
Closing Case One: Tata's Nano $2,500 Car, 464
Closing Case Two: Collective Innovation, 466
Closing Case Three: Confusing Carbon, 468
Making Business Decisions, 470
Apply Your Knowledge, 471
Business Driven Best Sellers, 473
Appendices, 475
Technology Plug-In Overview, 476
Notes, 480
Glossary, 490
Credits, 505
Index, 507

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