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Copyright, ii
About the Author, iii
Preface, xvii
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
Key Terms, 34
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
Key Terms, 76
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
Key Terms, 119
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
Netflix, 123
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
Key Terms, 167
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
Key Terms, 222
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
Key Terms, 258
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
Key Terms, 303
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
Key Terms, 353
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
Key Terms, 399
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
Cyberwar, 434
Cyberterrorism, 435
Industry Analysis: Cybercops Track Cybercriminals, 438
Key Points Review, 439
Key Terms, 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
Key Terms, 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
Key Terms, 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
Key Terms, 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
Protocols, 534
Connectivity Hardware, 536
Networking Hardware, 537
Key Points Review, 537
Key Terms, 538
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
Key Terms, 555
Review Questions, 556
Self-Study Questions, 556
Problems and Exercises, 557
Answers to the Self-Study Questions, 558
Glossary, 559
References, 581
Name Index, 585
Organization Index, 587
Subject Index, 589
Credits, 597

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