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Information Systems Today, Managing in the Digital World, Third Edition

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Information Systems Today, Managing in the Digital World, Third Edition

by Leonard M. Jessup; Joseph S. Valacich

Publisher: Prentice Hall

Copyright Year: 2008

Publishing Date: 2007/03/29

eText ISBN-10: 0-13-233507-7

eText ISBN-13: 978-0-13-233507-2

Print ISBN-10: 0-13-233506-9

Print ISBN-13: 978-0-13-233506-5

Course: Advanced MIS, Introduction to Information Systems

Pages: 624

eTextbook $92.67

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Table of Contents | Description

Instructor Resources | Student Resources

ABOUT THIS TITLE - TABLE OF CONTENTS

About the Author, iii

Chapter 1. Managing in the Digital World, 2

Managing In The Digital World: Apple Computer, 3

What You Will Find in This Book, 5

Information Systems Today, 6

Characteristics of the Digital World, 7

Ethical Dilemma: Online Rights Not Always Universal, 9

Information Systems Defined, 10

Data: The Root and Purpose of Information Systems, 10

Information Technology: The Components of Information Systems, 12

Key Enabler: Spintronics, 13

People: The Builders and Managers of Information Systems, 13

Organizations: The Context of Information Systems, 20

Change Agents: Steve Jobs, Cofounder and CEO, Apple Computer, 21

Net Stats: Worldwide Internet Usage, 27

The Dual Nature of Information Systems, 28

Case in Point: An Information System Gone Awry: ERP Implementation at the U.S. Navy, 28

Case in Point: An Information System That Works: FedEx, 28

Information Systems for Competitive Advantage, 28

When Things Go Wrong: ChoicePoint Inc., 29

Brief Case: MTV Europe, 30

Why Information Systems Matter, 31

Industry Analysis: Business Career Outlook, 31

Key Points Review, 33

Review Questions, 34

Self-Study Questions, 34

Problems and Exercises, 35

Application Exercises, 36

Team Work Exercise: How to Find Out What Is Current in IS, 37

Answers to the Self-Study Questions, 37

Click Clique: Facebook.com, 37

E-Enabling the Air Transport Industry: Managing in the Digital World, 38

Chapter 2. Fueling Globalization through Information Systems, 40

Managing in the Digital World: Casino Gaming, 41

Evolution of Globalization, 43

Globalization 1.0, 43

Globalization 2.0, 44

Globalization 3.0, 44

Key Enabler: Detecting Intermittent Electrical Faults, 45

Net Stats: Online Searching, 47

Change Agents: Niklas Zennström, Cofounder and Chief Executive Officer of Skype, 55

Opportunities of Operating in the Digital World, 57

Opportunities of Reaching New Markets, 58

Opportunities of a Global Workforce, 58

Challenges of Operating in the Digital World, 59

Governmental Challenges, 59

Geoeconomic Challenges, 62

Demographic Challenges, 63

Cultural Challenges, 64

Ethical Dilemma: Underground Gaming Economy, 65

Going Global: International Business Strategies in the Digital World, 68

When Things Go Wrong: e-Waste, 69

Multidomestic Business Strategy, 70

Global Business Strategy, 71

Transnational Business Strategy, 71

Brief Case: Transnational Development, 73

Operating in the Digital World Using Information Systems, 73

Multinational Information Systems Strategy, 74

Global Information Systems Strategy, 74

Transnational Information Systems Strategy, 74

Industry Analysis: The Automobile Industry, 74

Key Points Review, 75

Review Questions, 77

Self-Study Questions, 77

Problems and Exercises, 78

Application Exercises, 79

Team Work Exercise: Becoming a Global Leader, 79

Answers to the Self-Study Questions, 79

Global Picture Sharing with Flickr, 79

E-Enabling the Air Transport Industry: Globalization of the Airline Industry, 80

Chapter 3. Valuing Information Systems Investments, 82

Managing in the Digital World: TiVo, 83

Valuing Information Systems, 85

Information Systems for Automating: Doing Things Faster, 85

Information Systems for Organizational Learning: Doing Things Better, 85

Information Systems for Supporting Strategy: Doing Things Smarter, 87

Sources of Competitive Advantage, 88

Ethical Dilemma: Protect Company Profits or Employees?, 88

Information Systems and Value Chain Analysis, 89

The Role of Information Systems in Value Chain Analysis, 90

The Technology/Strategy Fit, 90

Making the Business Case for an Information System, 91

Business Case Objectives, 91

When Things Go Wrong: Sony’s Secret, 91

The Productivity Paradox, 92

Change Agents: Michael Dell, Founder and Chairman, Dell, Inc., 95

Making a Successful Business Case, 96

Presenting the Business Case, 102

Net Stats: Valuing IT Investments: File Sharing, 102

Assessing Value for the Information Systems Infrastructure, 105

Changing Mind-Sets about Information Systems, 106

Valuing Innovations, 106

Brief Case: For Sale by Owner: Your Company’s Name.com, 107

The Need for Constant IS Innovation, 108

Successful Innovation Is Difficult, 108

Organizational Requirements for Innovation, 110

Predicting the Next New Thing, 111

Key Enabler: Organic Light-Emitting Diodes, 111

Industry Analysis: Photo Industry, 117

Key Points Review, 118

Review Questions, 120

Self-Study Questions, 120

Problems and Exercises, 121

Application Exercises, 122

Team Work Exercise: Pizza, Anyone?, 122

Answers to the Self-Study Questions, 122

E-Enabling the Air Transport Industry: Valuing Information Systems, 124

Chapter 4. Managing the Information Systems Infrastructure, 126

Managing in the Digital World: “I Googled You!”, 127

The Information Systems Infrastructure, 129

The Need for an Information Systems Infrastructure, 130

Ethical Dilemma: Who Owns Company Data?, 135

Designing the Information Systems Infrastructure, 137

Managing the Hardware Infrastructure, 137

Managing the Software Infrastructure, 141

Managing the Communication and Collaboration Infrastructure, 145

Net Stats: Broadband Access Increases, 145

Key Enabler: Cognitive Radio, 149

Managing the Data and Knowledge Infrastructure, 150

Managing the Facilities Infrastructure, 155

Change Agents: Larry Page and Sergey Brin, Cofounders of Google, 156

Managing the Human Resource Infrastructure, 158

Managing the Services Infrastructure, 159

Brief Case: Toyota’s Savvy Chief Information Officer, 159

Ensuring a Reliable and Secure Infrastructure, 160

Disaster Planning, 161

Designing the Recovery Plan, 161

Information Systems Controls, Auditing, and the Sarbanes-Oxley Act, 162

When Things Go Wrong: BlackBerry, 162

Industry Analysis: Radio, 166

Key Points Review, 166

Review Questions, 168

Self-Study Questions, 168

Problems and Exercises, 169

Application Exercises, 170

Team Work Exercise: Your Personal Communication Infrastructure Assessment, 171

Answers to the Self-Study Questions, 171

Films Go Digital at the Sundance Film Festival, 171

E-Enabling the Air Transport Industry: Managing the Information Systems Infrastructure, 172

Chapter 5. Enabling Commerce Using the Internet, 174

Managing in the Digital World: eBay Under Attack, 175

Electronic Commerce Defined, 177

Internet and World Wide Web Capabilities, 177

Ethical Dilemma: Monitoring Productive Employees, 182

Electronic Commerce Business Strategies, 183

Business-to-Business Electronic Commerce: Extranets, 186

The Need for Organizations to Exchange Data, 186

How EDI Works, 187

Exchanging Organizational Data Using Extranets, 188

Benefits of Extranets, 188

Extranet System Architecture, 189

Extranet Applications, 190

Business-to-Employee Electronic Commerce: Intranets, 190

Intranet System Architecture, 190

When Things Go Wrong: Employees Using Company Networks Can Affect Liability, 191

Intranet Applications, 191

Brief Case: IM at Work, 194

Business-to-Consumer Electronic Commerce, 195

Stages of Business-to-Consumer Electronic Commerce, 196

E-tailing: Selling Goods and Services in the Digital World, 196

E-Commerce Web Sites: Attracting and Retaining Online Customers, 198

Net Stats: E-Business Is BIG Business, 199

Key Enabler: Photonic Crystal Fibers, 201

Search Engine Marketing, 202

Securing Payments in the Digital World, 203

Managing Financial Transactions in the Digital World, 206

Consumer-to-Consumer E-Commerce, 206

E-Auctions, 206

Change Agents: Meg Whitman, President and Chief Executive Officer, eBay, Inc., 208

Social Online Communities, 209

Self-Publishing, 210

Emerging Topics in Electronic Commerce, 211

The Rise in M-Commerce, 211

Crowdsourcing, 214

Online Entertainment Industry, 215

E-Government, 216

Threats to E-Commerce, 217

Industry Analysis: Online Travel, 220

Key Points Review, 221

Review Questions, 223

Self-Study Questions, 223

Problems and Exercises, 224

Application Exercises, 225

Team Work Exercise: So Many Books, So Little Time . . ., 226

Answers to the Self-Study Questions, 226

IBM’s Intranet: One of the World’s Top 10, 226

E-Enabling the Air Transport Industry: Enabling Commerce Using the Internet, 227

Chapter 6. Securing Information Systems, 230

Managing in the Digital World: Drive-by-Hacking, 231

Information Systems Security, 232

Primary Threats to Information Systems Security, 232

Net Stats: Spyware Lurks on Most PCs, 236

Ethical Dilemma: To Cookie or Not to Cookie, 239

Change Agents: Anne Mulcahy, Chief Executive Officer and Chairman of the Xerox Corporation, 240

Safeguarding Information Systems Resources, 240

Technological Safeguards, 241

Key Enabler: Voiceprint, 243

Human Safeguards, 251

Brief Case: Is Big Brother Watching You?, 252

Managing Information Systems Security, 252

Developing an Information Systems Security Plan, 253

Responding to a Security Breach, 254

When Things Go Wrong: Backhoe Cyber Threat, 255

The State of Systems Security Management, 256

Industry Analysis: Banking Industry, 257

Key Points Review, 257

Review Questions, 258

Self-Study Questions, 259

Problems and Exercises, 259

Application Exercises, 261

Team Work Exercise: Should Security Upgrades Be Made Available for Pirated Software?, 261

Answers to the Self-Study Questions, 261

Under Attack, 262

E-Enabling the Air Transport Industry: Securing Information Systems, 262

Chapter 7. Enhancing Business Intelligence Using Information Systems, 264

Managing in the Digital World: Amazon.com—They Wrote the Book on Gaining Business Intelligence from Information Systems, 265

Decision-Making Levels of an Organization, 267

Operational Level, 267

Managerial Level, 267

Executive Level, 268

Net Stats: The Growing Blogosphere, 269

General Types of Information Systems, 269

Transaction Processing Systems, 270

When Things Go Wrong: Information Systems Problems at the Tokyo Stock Exchange, 272

Management Information Systems, 273

Executive Information Systems, 274

Brief Case: Ministry of Sound, 275

Key Enabler: Nanotubes, 277

Information Systems That Span Organizational Boundaries, 280

Decision Support Systems, 280

Intelligent Systems, 283

Data-Mining and Visualization Systems, 287

Office Automation Systems, 288

Collaboration Technologies, 289

Knowledge Management Systems, 294

Ethical Dilemma: Too Much Intelligence? RFID and Privacy, 295

Functional Area Information Systems, 298

Change Agents: Jeff Bezos, Founder and Chief Executive Officer of Amazon.com, 300

Industry Analysis: Internet Protocol Television, 301

Key Points Review, 302

Review Questions, 303

Self-Study Questions, 303

Problems and Exercises, 304

Application Exercises, 306

Team Work Exercise: What’s the Hot Topic?, 306

Answers to the Self-Study Questions, 307

Home Depot’s Quandary, 307

E-Enabling the Air Transport Industry: Enhancing Business Intelligence Using Information Systems, 308

Chapter 8. Building Organizational Partnerships Using Enterprise Information Systems, 310

Managing in the Digital World: Customer Relationship Management and Major League Baseball, 311

Enterprise Systems, 313

Supporting Business Activities, 314

Internally Focused Applications, 315

Brief Case: Outsourcing Your McDonald’s Order, 318

Change Agents: Larry Ellison, Founder and Chief Executive Officer, Oracle Corporation, 319

Externally Focused Applications, 320

The Rise of Enterprise Systems, 321

Enterprise Resource Planning, 326

Integrating Data to Integrate Applications, 326

Choosing an ERP System, 327

ERP Limitations, 328

Customer Relationship Management, 329

Developing a CRM Strategy, 330

When Things Go Wrong: Misusing CRM Data, 331

Architecture of a CRM, 332

Ethical Concerns with CRM, 338

Ethical Dilemma: Targeting or Discriminating? Ethical Pitfalls of Customer Relationship Management, 338

Supply Chain Management, 339

What Is Supply Chain Management?, 339

SCM Architecture, 340

Developing an SCM Strategy, 342

Key Enabler: Three-Dimensional Fabrication, 343

Emerging SCM Trends, 344

Trading Exchanges, 346

Net Stats: RFID on the Rise, 348

The Formula for Enterprise System Success, 349

Secure Executive Sponsorship, 349

Get Help from Outside Experts, 350

Thoroughly Train Users, 350

Take a Multidisciplinary Approach to Implementations, 350

Industry Analysis: The Comics Industry: Digital Distribution to the Rescue, 351

Key Points Review, 352

Review Questions, 353

Self-Study Questions, 353

Problems and Exercises, 354

Application Exercises, 355

Team Work Exercise: ERP, CRM, and SCM, 356

Answers to the Self-Study Questions, 356

Using the Internet to Improve Upstream and Downstream Information Flow, 356

E-Enabling the Air Transport Industry: Building Organizational Partnerships Using Enterprise Information Systems, 357

Chapter 9. Developing Information Systems, 360

Managing in the Digital World: Online Gaming, 361

The Need for Structured Systems Development, 363

The Evolution of Information Systems Development, 363

Options for Obtaining Information Systems, 363

Information Systems Development in Action, 364

The Role of Users in the Systems Development Process, 365

When Things Go Wrong: Conquering Computer Contagion, 365

Steps in the Systems Development Process, 366

Phase 1. System Identification, Selection, and Planning, 366

Phase 2. System Analysis, 367

Net Stats: Personalities of Broadband Users, 368

Phase 3. System Design, 372

Key Enabler: The Brain-Wave Interface, 376

Phase 4. System Implementation, 377

Change Agents: William (Bill) Henry Gates III, Chairman and Chief Software Architect, Microsoft Corporation, 378

Phase 5. System Maintenance, 380

Brief Case: Hackers, Patches, and Reverse Engineering, 381

Other Approaches to Designing and Building Systems, 382

Prototyping, 382

Rapid Application Development, 383

Object-Oriented Analysis and Design, 384

Need for Alternatives to Building Systems Yourself, 385

Situation 1: Limited IS Staff, 385

Situation 2: IS Staff Has Limited Skill Set, 385

Situation 3: IS Staff Is Overworked, 386

Situation 4: Problems with Performance of IS Staff, 386

Common Alternatives to In-House Systems Development, 386

External Acquisition, 386

Outsourcing, 390

Ethical Dilemma: Software Vendors and Clients, 390

Why Outsourcing?, 391

End-User Development, 392

Industry Analysis: The “New” Web, 396

Key Points Review, 398

Review Questions, 399

Self-Study Questions, 400

Problems and Exercises, 400

Application Exercises, 402

Team Work Exercise: Determining a Development Approach, 402

Answers to the Self-Study Questions, 402

The Emergence of Open Source Software, 403

E-Enabling the Air Transport Industry: Information Systems Development and Acquisition, 404

Chapter 10. Managing Information Systems Ethics and Crime, 406

Managing in the Digital World: BitTorrent, 407

Information Systems Ethics, 409

The Information Age Arrives, 409

Computer Literacy and the Digital Divide, 409

Information Privacy, 411

Change Agents: Judy McGrath, Chairman and Chief Executive Officer of MTV Networks, 412

Information Accuracy, 414

When Things Go Wrong: Wikipedia, 416

Information Property, 417

Information Accessibility, 419

Net Stats: Bundled Services, 421

The Need for a Code of Ethical Conduct, 421

Computer Crime, 422

The Computer Access Debate, 423

Unauthorized Computer Access, 424

Federal and State Laws, 424

Computer Forensics, 426

Hacking and Cracking, 426

Types of Computer Criminals and Crimes, 426

Brief Case: Attacks on the Net, 427

Ethical Dilemma: Ethical Hacking, 428

Software Piracy, 429

Computer Viruses and Other Destructive Code, 431

Internet Hoaxes, 433

Key Enabler: The Liquid Lens, 433

Cyberwar and Cyberterrorism, 434

Cyberterrorism, 435

Industry Analysis: Cybercops Track Cybercriminals, 438

Key Points Review, 439

Review Questions, 440

Self-Study Questions, 440

Problems and Exercises, 441

Application Exercises, 442

Team Work Exercise: Making Copies of Programs, Games, Music, and Videos, 443

Answers to the Self-Study Questions, 443

Digital Data on Government Computers a Security Concern, 443

E-Enabling the Air Transport Industry: Managing Information Systems Ethics and Crime, 444

Technology Briefing 1. Information Systems Hardware, 447

Key Elements of Information Systems Hardware, 448

Input Devices, 448

Processing: Transforming Inputs into Outputs, 453

Output Devices, 465

Types of Computers, 467

Supercomputers, 468

Mainframes, 469

Midrange Computers, 469

Microcomputers, 469

Key Points Review, 473

Review Questions, 474

Self-Study Questions, 474

Problems and Exercises, 475

Answers to the Self-Study Questions, 476

Technology Briefing 2. Information Systems Software, 477

Key Information Systems Software Components, 478

Systems Software/Operating System, 478

Application Software, 481

Open-Source Software, 483

Programming Languages and Development Environments, 484

Compilers and Interpreters, 484

Programming Languages, 486

Object-Oriented Languages, 487

Visual Programming Languages, 487

Web Development Languages, 487

Automated Development Environments, 491

Key Points Review, 493

Review Questions, 494

Self-Study Questions, 494

Problems and Exercises, 495

Answers to the Self-Study Questions, 496

Technology Briefing 3. Database Management, 497

Database Management for Strategic Advantage, 498

The Database Approach: Foundation Concepts, 498

Advantages of the Database Approach, 498

Effective Management of Databases, 500

Key Database Activities, 501

Entering and Querying Data, 501

Creating Database Reports, 503

Database Design, 504

Associations, 505

Entity-Relationship Diagramming, 506

The Relational Model, 507

Normalization, 507

Data Dictionary, 508

How Organizations Get the Most from Their Data, 509

Linking Web Site Applications to Organizational Databases, 509

Key Points Review, 510

Review Questions, 510

Self-Study Questions, 511

Problems and Exercises, 511

Answers to the Self-Study Questions, 512

Technology Briefing 4. Networking, 513

Evolution of Computer Networking, 514

Messages, Senders, and Receivers, 514

Computer Networks, 514

Centralized Computing, 516

Distributed Computing, 516

Collaborative Computing, 517

Types of Networks, 518

Private Branch Exchange, 519

Local Area Network, 519

Wide Area Network, 520

Personal Area Networks, 521

Networking Fundamentals, 521

Servers, Clients, and Peers, 521

Network Services, 522

Transmission Media, 524

Cable Media, 525

Wireless Media, 526

Network Software and Hardware, 531

Media Access Control, 531

Network Topologies, 532

Connectivity Hardware, 536

Networking Hardware, 537

Key Points Review, 537

Review Questions, 539

Self-Study Questions, 539

Problems and Exercises, 540

Answers to the Self-Study Questions, 541

Technology Briefing 5. The Internet and the World Wide Web, 543

The Internet, 544

How Did the Internet Get Started?, 544

The Internet Uses Packet-Switching Technology, 544

Transmission Control Protocol/Internet Protocol, 545

Connecting Independent Networks, 545

Web Domain Names and Addresses, 546

Who Manages the Internet?, 547

How to Connect to the Internet, 548

Home Internet Connectivity, 549

Business Internet Connectivity, 551

The Future of Connectivity, 552

The Current State of Internet Usage, 552

What Are People Doing on the Internet?, 553

World Wide Web, 553

History of the World Wide Web, 553

World Wide Web Architecture, 554

World Wide Web Applications, 555

Key Points Review, 555

Review Questions, 556

Self-Study Questions, 556

Problems and Exercises, 557

Answers to the Self-Study Questions, 558

References, 581

Name Index, 585

Organization Index, 587

Subject Index, 589

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ABOUT THIS TITLE - DESCRIPTION

For the undergraduate/graduate introductory information systems course required of all business students. Information Systems Today, 3e, speaks directly to WHY IS MATTERS today by focusing on what every business student needs to know about IS including its leading role in the globalization of business.

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