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Integrating Business with Technology, IFC-1
Copyright, ii
About the Authors, iii
Preface, xxi
Part One. Organizations, Management, and the Networked Enterprise, 1
Chapter 1. Information Systems in Global Business Today, 2
Opening Case: NBA Teams Make a Slam Dunk With Information Technology, 3
1.1. The Role of Information Systems in Business Today, 5
How Information Systems Are Transforming Business, 5
What’s New In Management Information Systems?, 6
Globalization Challenges and Opportunities: A Flattened World, 8
The Emerging Digital Firm, 9
Interactive Session: Management: Virtual Meetings: Smart Management, 10
Strategic Business Objectives of Information Systems, 12
1.2. Perspectives on Information Systems, 15
What is an Information System?, 16
Dimensions of Information Systems, 18
Interactive Session: Technology: UPS Competes Globally with Information Technology, 23
It Isn’t Just Technology: A Business Perspective on Information Systems, 24
Complementary Assets: Organizational Capital and the Right Business Model, 26
1.3. Contemporary Approaches to Information Systems, 28
Technical Approach, 28
Behavioral Approach, 29
Approach of This Text: Sociotechnical Systems, 30
1.4. Hands-on MIS Projects, 31
Management Decision Problems, 31
Improving Decision Making: Using Databases to Analyze Sales Trends, 32
Achieving Operational Excellence: Using Internet Software to Budget for Shipping Costs, 33
Learning Track Modules, 33
Review Summary, 34
Key Terms, 35
Review Questions, 35
Discussion Questions, 36
Video Cases, 36
Collaboration and Teamwork: Creating a Web Site for Team Collaboration, 36
Case Study: Is Second Life Ready for Business?, 37
Chapter 2. Global E-Business: How Businesses Use Information Systems, 40
Opening Case: The Tata Nano Makes History Using Digital Manufacturing, 41
2.1. Business Processes and Information Systems, 43
Business Processes, 43
How Information Technology Enhances Business Processes, 44
2.2. Types of Business Information Systems, 45
Transaction Processing Systems, 45
Management Information Systems and Decision-Support Systems, 47
Interactive Session: Technology: Air Canada Takes Off With Maintenix, 50
Executive Support Systems For Senior Management, 51
2.3. Systems That Span the Enterprise, 52
Interactive Session: Organizations: “Fresh, Hot, Fast”—Can Information Systems Help Johnny’s Lunch Go National?, 53
Enterprise Applications, 59
Intranets and Extranets, 59
Collaboration and Communication Systems: “Interaction” Jobs in a Global Economy, 60
E-Business, E-Commerce, and E-Government, 62
2.4. The Information Systems Function in Business, 63
The Information Systems Department, 63
Organizing the Information Systems Function, 64
2.5. Hands–on MIS Projects, 66
Management Decision Problems, 66
Improving Decision Making: Using a Spreadsheet to Select Suppliers, 67
Achieving Operational Excellence: Using Internet Software to Plan Efficient Transportation Routes, 67
Learning Track Modules, 68
Review Summary, 69
Key Terms, 70
Review Questions, 70
Discussion Questions, 71
Video Cases, 71
Collaboration and Teamwork: Identifying Management Decisions and Systems, 71
Case Study: JetBlue Hits Turbulence, 72
Chapter 3. Information Systems, Organizations, and Strategy, 76
Opening Case: EBay Fine–tunes Its Strategy, 77
3.1. Organizations and Information Systems, 79
What Is an Organization?, 79
Features of Organizations, 81
3.2. How Information Systems Impact Organizations and Business Firms, 86
Economic Impacts, 87
Organizational and Behavioral Impacts, 89
The Internet and Organizations, 91
Implications for the Design and Understanding of Information Systems, 91
3.3. Using Information Systems to Achieve Competitive Advantage, 92
Porter’s Competitive Forces Model, 92
Interactive Session: Management: Can Technology Save Soldiers’ Lives in Iraq?, 93
Information System Strategies for Dealing with Competitive Forces, 96
The Internet’s Impact on Competitive Advantage, 99
Interactive Session: Organizations: Can Detroit Make the Cars Customers Want?, 100
The Business Value Chain Model, 102
Synergies, Core Competencies, and Network–Based Strategies, 104
3.4. Using Systems for Competitive Advantage: Management Issues, 109
Sustaining Competitive Advantage, 109
Aligning IT with Business Objectives, 110
Managing Strategic Transitions, 111
3.5. Hands–on MIS Projects, 111
Management Decision Problems, 111
Improving Decision Making: Using a Database to Clarify Business Strategy, 112
Improving Decision Making: Using Web Tools to Configure and Price an Automobile, 113
Review Summary, 114
Key Terms, 115
Review Questions, 115
Discussion Questions, 116
Video Case, 116
Collaboration and Teamwork: Identifying Opportunities for Strategic Information Systems, 116
Learning Track Module, 117
Case Study: YouTube, the Internet, and the Future of Movies, 117
Chapter 4. Ethical and Social Issues in Information Systems, 120
Opening Case: Is Your Student Loan Data on Loan?, 121
4.1. Understanding Ethical and Social Issues Related to Systems, 123
A Model for Thinking About Ethical, Social, and Political Issues, 124
Five Moral Dimensions of the Information Age, 124
Key Technology Trends That Raise Ethical Issues, 125
4.2. Ethics in an Information Society, 128
Basic Concepts: Responsibility, Accountability, and Liability, 129
Ethical Analysis, 129
Candidate Ethical Principles, 130
Professional Codes of Conduct, 130
Some Real–World Ethical Dilemmas, 131
4.3. The Moral Dimensions of Information Systems, 131
Information Rights: Privacy and Freedom in the Internet Age, 131
Property Rights: Intellectual Property, 138
Accountability, Liability, and Control, 140
System Quality: Data Quality and System Errors, 141
Quality of Life: Equity, Access, and Boundaries, 142
Interactive Session: Organizations: What Should We Do About Cyberbullying?, 144
Interactive Session: Management: Flexible Scheduling at Wal–Mart: Good or Bad for Employees?, 148
4.4. Hands–on MIS Projects, 151
Management Decision Problems, 151
Achieving Operational Excellence: Creating a Simple Blog, 152
Improving Decision Making: Using Internet Newsgroups for Online Market Research, 152
Learning Track Modules, 153
Review Summary, 153
Key Terms, 154
Review Questions, 154
Discussion Questions, 155
Video Cases, 155
Collaboration and Teamwork: Developing a Corporate Ethics Code, 155
Case Study: Should Google Organize Your Medical Records?, 156
Part Two. Information Technology Infrastructure, 159
Chapter 5. IT Infrastructure and Emerging Technologies, 160
Opening Case: Cars.com’s IT Infrastructure Drives Rapid Business Growth, 161
5.1. IT Infrastructure, 163
Defining IT Infrastructure, 163
Evolution of IT Infrastructure, 164
Technology Drivers of Infrastructure Evolution, 168
5.2. Infrastructure Components, 175
Computer Hardware Platforms, 176
Operating System Platforms, 176
Enterprise Software Applications, 177
Data Management and Storage, 177
Networking/Telecommunications Platforms, 178
Internet Platforms, 178
Consulting and System Integration Services, 178
5.3. Contemporary Hardware Platform Trends, 179
The Emerging Mobile Digital Platform, 179
Grid Computing, 179
Cloud Computing and the Computing Utility, 180
Autonomic Computing, 181
Interactive Session: Technology: Computing Goes Green, 182
Virtualization and Multicore Processors, 183
5.4. Contemporary Software Platform Trends, 184
Software for the Web: Java and Ajax, 185
Web Services and Service-Oriented Architecture, 186
Mashups and Widgets, 188
Software Outsourcing, 189
Interactive Session: Organizations: Salesforce.com: Software–as–a–Service Goes Mainstream, 192
5.5. Management Issues, 193
Dealing with Platform and Infrastructure Change, 193
Management and Governance, 194
Making Wise Infrastructure Investments, 194
5.6. Hands–on MIS Projects, 197
Management Decision Problems, 197
Improving Decision Making: Using a Spreadsheet to Evaluate Hardware and Software Options, 197
Improving Decision Making: Using Web Research to Budget for a Sales Conference, 198
Learning Track Modules, 199
Review Summary, 199
Key Terms, 200
Review Questions, 201
Discussion Questions, 201
Video Cases, 201
Collaboration and Teamwork: Evaluating Server Operating Systems, 201
Case Study: Amazon’s New Store: Utility Computing, 202
Chapter 6. Foundations of Business Intelligence: Databases and Information Management, 206
Opening Case: Can HP Mine Success from an Enterprise Data Warehouse?, 207
6.1. Organizing Data in a Traditional File Environment, 209
File Organization Concepts, 209
Problems with the Traditional File Environment, 210
6.2. The Database Approach to Data Management, 212
Database Management Systems, 212
Capabilities of Database Management Systems, 215
Designing Databases, 219
6.3. Using Databases to Improve Business Performance and Decision Making, 222
Data Warehouses, 222
Interactive Session: Organizations: The Internal Revenue Service Uncovers Tax Fraud with a Data Warehouse, 224
Business Intelligence, Multidimensional Data Analysis, and Data Mining, 226
Databases and the Web, 230
6.4. Managing Data Resources, 231
Establishing an Information Policy, 231
Interactive Session: Management: The Databases Behind MySpace, 232
Ensuring Data Quality, 233
6.5. Hands–on MIS Projects, 235
Management Decision Problems, 235
Achieving Operational Excellence: Building a Relational Database for Inventory Management, 236
Improving Decision Making: Searching Online Databases for Overseas Business Resources, 237
Learning Track Modules, 237
Review Summary, 238
Key Terms, 239
Review Questions, 240
Discussion Questions, 240
Video Cases, 240
Collaboration and Teamwork: Identifying Entities and Attributes in an Online Database, 240
Case Study: Trouble with the Terrorist Watch List Database, 241
Chapter 7. Telecommunications, the Internet, and Wireless Technology, 246
Opening Case: Virgin Megastores Keeps Spinning with Unified Communications, 247
7.1. Telecommunications and Networking in Today’s Business World, 249
Networking and Communication Trends, 249
What Is a Computer Network?, 249
Key Digital Networking Technologies, 252
7.2. Communications Networks, 254
Signals: Digital vs. Analog, 254
Types of Networks, 255
Physical Transmission Media, 257
7.3. The Global Internet, 259
Internet Addressing and Architecture, 260
Interactive Session: Organizations: Should Network Neutrality Continue?, 263
Internet Services and Communication Tools, 265
Interactive Session: Management: Monitoring Employees on Networks: Unethical or Good Business?, 268
The World Wide Web, 270
Intranets and Extranets, 276
7.4. The Wireless Revolution, 277
Cellular Systems, 277
Wireless Computer Networks and Internet Access, 278
RFID and Wireless Sensor Networks, 282
7.5. Hands–on MIS Projects, 284
Management Decision Problems, 284
Improving Decision Making: Using Spreadsheet Software to Evaluate Wireless Services, 285
Achieving Operational Excellence: Using Web Search Engines for Business Research, 285
Learning Track Modules, 285
Review Summary, 286
Key Terms, 287
Review Questions, 288
Discussion Questions, 288
Video Cases, 288
Collaboration and Teamwork: Evaluating Smartphones, 288
Case Study: Google Versus Microsoft: Clash of the Technology Titans, 289
Chapter 8. Securing Information Systems, 292
Opening Case: Boston Celtics Score Big Points Against Spyware, 293
8.1. System Vulnerability and Abuse, 295
Why Systems Are Vulnerable, 295
Interactive Session: Organizations: The Worst Data Theft Ever?, 297
Malicious Software: Viruses, Worms, Trojan Horses, and Spyware, 300
Hackers and Computer Crime, 302
Internal Threats: Employees, 306
Software Vulnerability, 307
8.2. Business Value of Security and Control, 307
Legal and Regulatory Requirements for Electronic Records Management, 308
Electronic Evidence and Computer Forensics, 309
8.3. Establishing a Framework for Security and Control, 310
Information Systems Controls, 310
Risk Assessment, 311
Security Policy, 312
Disaster Recovery Planning and Business Continuity Planning, 314
The Role of Auditing, 314
8.4. Technologies and Tools for Protecting Information Resources, 315
Access Control, 315
Firewalls, Intrusion Detection Systems, and Antivirus Software, 317
Securing Wireless Networks, 319
Encryption and Public Key Infrastructure, 319
Ensuring System Availability, 321
Interactive Session: Technology: Can Salesforce.com On–Demand Remain In Demand?, 323
Ensuring Software Quality, 325
8.5. Hands–on MIS Projects, 325
Management Decision Problems, 325
Improving Decision Making: Using Spreadsheet Software to Perform a Security Risk Assessment, 326
Improving Decision Making: Evaluating Security Outsourcing Services, 327
Learning Track Modules, 327
Review Summary, 328
Key Terms, 328
Review Questions, 329
Discussion Questions, 330
Video Cases, 330
Collaboration and Teamwork: Evaluating Security Software Tools, 330
Case Study: A Rogue Trader at Societe Generale Roils the World Financial System, 331
Part Three. Key System Applications for the Digital Age, 335
Chapter 9. Achieving Operational Excellence and Customer Intimacy: Enterprise Applications, 336
Opening Case: Tasty Baking Company: An Enterprise System Transforms an Old Favorite, 337
9.1. Enterprise Systems, 339
What Are Enterprise Systems?, 339
Enterprise Software, 340
Business Value of Enterprise Systems, 341
9.2. Supply Chain Management Systems, 342
The Supply Chain, 342
Information and Supply Chain Management, 344
Supply Chain Management Software, 346
Interactive Session: Technology: Procter & Gamble Tries to Optimize Inventory, 347
Global Supply Chains and the Internet, 348
Business Value of Supply Chain Management Systems, 351
9.3. Customer Relationship Management Systems, 352
What Is Customer Relationship Management?, 352
CRM Software, 354
Interactive Session: Organizations: Customer Relationship Management Helps Chase Card Services Manage Customer Calls, 356
Operational and Analytical CRM, 359
Business Value of Customer Relationship Management Systems, 360
9.4. Enterprise Applications: New Opportunities and Challenges, 360
Enterprise Application Challenges, 360
Next Generation Enterprise Applications, 361
9.5. Hands–on MIS Projects, 363
Management Decision Problems, 363
Improving Decision Making: Using Database Software to Manage Customer Service Requests, 364
Achieving Operational Excellence: Evaluating Supply Chain Management Services, 365
Learning Track Modules, 365
Review Summary, 366
Key Terms, 367
Review Questions, 367
Discussion Questions, 367
Video Cases, 367
Collaboration and Teamwork: Analyzing Enterprise Application Vendors, 368
Case Study: Symantec’s ERP Turmoil, 369
Chapter 10. E–Commerce: Digital Markets, Digital Goods, 372
Opening Case: Nexon Games: E–Commerce Goes Social, 373
10.1. Electronic Commerce and the Internet, 375
E–Commerce Today, 375
Why E-Commerce Is Different, 376
Key Concepts in E–Commerce: Digital Markets and Digital Goods in a Global Marketplace, 380
Interactive Session: Organizations: Turner Sports New Media Marries TV and the Internet, 381
Internet Business Models, 384
10.2. Electronic Commerce, 388
Types of Electronic Commerce, 388
Interactive Session: Technology: Can J&R Electronics Grow with E–Commerce?, 389
Achieving Customer Intimacy: Interactive Marketing, Personalization, and Self–Service, 391
Business–to–Business E-Commerce: New Efficiencies and Relationships, 394
10.3. M–Commerce, 397
M–Commerce Services and Applications, 398
Accessing Information from the Wireless Web, 399
10.4. Electronic Commerce Payment Systems, 399
Types of Electronic Payment Systems, 399
Digital Payment Systems for M–Commerce, 400
10.5. Hands–on MIS, 401
Management Decision Problems, 401
Improving Decision Making: Using Spreadsheet Software to Analyze a Dot–Com Business, 401
Achieving Operational Excellence: Evaluating E–Commerce Hosting Services, 402
Learning Track Modules, 402
Review Summary, 403
Key Terms, 404
Review Questions, 404
Discussion Questions, 405
Video Cases, 405
Collaboration and Teamwork: Performing a Competitive Analysis of E–Commerce Sites, 405
Case Study: Facebook’s Dilemma, 406
Chapter 11. Managing Knowledge and Collaboration, 410
Opening Case: P&G Moves from Paper to Pixels for Knowledge Management, 411
11.1. The Knowledge Management Landscape, 413
Important Dimensions of Knowledge, 414
The Knowledge Management Value Chain, 415
Types of Knowledge Management Systems, 418
11.2. Enterprise–Wide Knowledge Management Systems, 419
Enterprise Content Management Systems, 419
Knowledge Network Systems, 420
Collaboration Tools and Learning Management Systems, 421
Interactive Session: Management: Managing with Web 2.0, 423
11.3. Knowledge Work Systems, 424
Knowledge Workers and Knowledge Work, 424
Requirements of Knowledge Work Systems, 425
Examples of Knowledge Work Systems, 426
11.4. Intelligent Techniques, 427
Capturing Knowledge: Expert Systems, 428
Organizational Intelligence: Case–Based Reasoning, 431
Fuzzy Logic Systems, 431
Neural Networks, 433
Interactive Session: Technology: Reality Mining, 435
Genetic Algorithms, 436
Hybrid AI Systems, 437
Intelligent Agents, 437
11.5. Hands–on MIS Projects, 439
Management Decision Problems, 439
Improving Decision Making: Building a Simple Expert System for Retirement Planning, 439
Improving Decision Making: Using Intelligent Agents for Comparison Shopping, 440
Learning Track Module, 440
Review Summary, 441
Key Terms, 442
Review Questions, 442
Discussion Questions, 443
Video Cases, 443
Collaboration and Teamwork: Rating Knowledge Network Systems, 443
Case Study: Innovation and Collaboration at Coca–Cola: It’s the Real Thing, 444
Chapter 12. Enhancing Decision Making, 448
Opening Case: Eastern Mountain Sports Forges a Trail to Better Decisions, 449
12.1. Decision Making and Information Systems, 451
Business Value of Improved Decision Making, 451
Types of Decisions, 451
The Decision–Making Process, 453
Managers and Decision Making in the Real World, 454
12.2. Systems for Decision Support, 457
Management Information Systems (MIS), 457
Decision–Support Systems (DSS), 457
Interactive Session: Management: Too Many Bumped Fliers: Why?, 459
Interactive Session: Technology: Business Intelligence Turns Dick’s Sporting Goods into a Winner, 461
Data Visualization and Geographic Information Systems, 465
Web–Based Customer Decision–Support Systems, 466
Group Decision–Support Systems (GDSS), 467
12.3. Executive Support Systems (ESS) and the Balanced Scorecard Framework, 468
The Role of Executive Support Systems in the Firm, 469
Business Value of Executive Support Systems, 470
12.4. Hands–on MIS Projects, 472
Management Decision Problems, 472
Improving Decision Making: Using PivotTables to Analyze Sales Data, 472
Improving Decision Making: Using a Web–Based DSS for Retirement Planning, 473
Learning Track Module, 473
Review Summary, 473
Key Terms, 474
Review Questions, 475
Discussion Questions, 475
Video Cases, 475
Collaboration and Teamwork: Designing a University GDSS, 475
Case Study: HSBC’s Lending Decisions and the Subprime Mortgage Crisis: What Went Wrong?, 476
Part Four. Building and Managing Systems, 479
Chapter 13. Building Information Systems, 480
Opening Case: PC Connection Finds Multi-Tiered Fulfillment, 481
13.1. Systems as Planned Organizational Change, 483
Systems Development and Organizational Change, 483
Business Process Reengineering, 484
Process Improvement: Business Process Management, Total Quality Management, and Six Sigma, 487
13.2. Overview of Systems Development, 489
Systems Analysis, 489
Systems Design, 491
Completing the Systems Development Process, 492
Interactive Session: Organizations: Dorfman Pacific Rolls Out a New Wireless Warehouse, 493
Modeling and Designing Systems: Structured and Object–Oriented Methodologies, 496
13.3. Alternative Systems–Building Approaches, 501
Traditional Systems Life Cycle, 501
Prototyping, 502
End–User Development, 503
Application Software Packages and Outsourcing, 505
13.4. Application Development for the Digital Firm, 507
Rapid Application Development (RAD), 507
Interactive Session: Management: Did Chrysler Make the Right Outsourcing Decision?, 508
Component–Based Development and Web Services, 509
13.5. Hands–on MIS Projects, 510
Management Decision Problems, 510
Improving Decision Making: Using Database Software to Design a Customer System for Auto Sales, 511
Achieving Operational Excellence: Redesigning Business Processes for Web Procurement, 512
Learning Track Modules, 513
Review Summary, 514
Key Terms, 515
Review Questions, 515
Discussion Questions, 516
Video Case, 516
Collaboration and Teamwork: Preparing Web Site Design Specifications, 516
Case Study: Citizens National bank Searches for a System Solution, 517
Chapter 14. Managing Projects, 520
Opening Case: McKesson’s Prescription for Project Management, 521
14.1. The Importance of Project Management, 523
Runaway Projects and System Failure, 523
Project Management Objectives, 524
Interactive Session: Management: Kaiser Permanente Botches Its Kidney Transplant Center Project, 525
14.2. Selecting Projects, 526
Management Structure for Information Systems Projects, 527
Linking Systems Projects to the Business Plan, 528
Critical Success Factors, 528
Portfolio Analysis, 530
Scoring Models, 531
14.3. Establishing the Business Value of Information Systems, 532
Information System Cost and Benefits, 533
Real Options Pricing Models, 534
Limitations of Financial Models, 535
14.4. Managing Project Risk, 535
Dimensions of Project Risk, 535
Change Management and the Concept of Implementation, 536
Controlling Risk Factors, 538
Designing for the Organization, 542
Interactive Session: Organizations: Why Can’t Biosense Take Off?, 543
Project Management Software Tools, 544
14.5. Hands–on MIS, 545
Management Decision Problems, 545
Improving Decision Making: Using Spreadsheet Software for Capital Budgeting for a New CAD System, 546
Improving Decision Making: Using Web Tools for Buying and Financing a Home, 546
Learning Track Modules, 547
Review Summary, 547
Key Terms, 548
Review Questions, 548
Discussion Questions, 549
Video Cases, 549
Collaboration and Teamwork: Identifying Implementation Problems, 549
Case Study: The U.S. Census Bureau Field Data Collection Project: Don’t Count On It, 550
Chapter 15. Managing Global Systems, 552
Opening Case: Severstal Creates an IT Infrastructure for Global Steelmaking, 553
15.1. The Growth of International Information Systems, 555
Developing an International Information Systems Architecture, 555
The Global Environment: Business Drivers and Challenges, 557
State of the Art, 560
15.2. Organizing International Information Systems, 560
Global Strategies and Business Organization, 560
Global Systems to Fit the Strategy, 562
Reorganizing the Business, 563
15.3. Managing Global Systems, 563
A Typical Scenario: Disorganization on a Global Scale, 564
Global Systems Strategy, 565
The Management Solution, 567
Interactive Session: Management: Colgate–Palmolive Keeps the World Smiling, 568
15.4. Technology Issues and Opportunities for Global Value Chains, 570
Computing Platforms and Systems Integration, 570
Connectivity, 571
Software Localization, 572
Interactive Session: Organizations: Can Cell Phone Close the Global Digital Divide?, 573
15.5. Hands–on MIS, 575
Management Decision Problems, 576
Achieving Operational Excellence: Building a Job Database and Web Page for an International Consulting Firm, 576
Improving Decision Making: Conducting International Marketing and Pricing Research, 576
Review Summary, 577
Key Terms, 578
Review Questions, 578
Discussion Questions, 579
Video Cases, 579
Collaboration and Teamwork: Identifying Technologies for Global Business Strategies, 579
Case Study: Will a Global Strategy Save GM?, 580
References, R1
Glossary, G1
Photo and Screen Shot Credits, P1
Index, I1
Reviewers and Consultants, IBC-1

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