TABLE OF CONTENTS PART ONE Chapter 1
THE INFORMATION AGE
1
Case I: Gardeners+
1
Business Information Systems: An Overview
5
Gardeners+: Business Systems and Information
6
Does Information Technology Matter? The Power of Digital Systems The Purpose of Information Systems
7 7 8
Why You Should Be Well-Versed in Information Systems
9
Data, Information, and Information Systems
9
Data vs. Information 9 Data Manipulation 9 Generating Information 10 Information in Context 11 What Is a System? 11 Information and Managers 13 The Benefits of Human-Computer Synergy 14 Information Systems in Organizations 14 The Four Stages of Processing 16 Computer Equipment for Information Systems 17
From Recording Transactions to Providing Expertise: Types of Information Systems
18
Transaction Processing Systems 18 Supply Chain Management Systems 18 Customer Relationship Management Systems 19 Business Intelligence Systems 20 Decision Support and Expert Systems 20 Geographic Information Systems 21
Information Systems in Business Functions
22
Accounting 22 Finance 22 Marketing 22 Human Resources 23
Web-Empowered Enterprises Careers in Information Systems
23 24
Help Desk Technician 24 Ethical & Societal Issues: The Downside Systems Analyst 26 Database Administrator 26 Network Administrator 28 System Administrator 28 Webmaster 29 Chief Security Officer 29 Chief Information Officer and Chief Technology Officer 29
25
Summary
31
Gardeners+ Revisited
32
Key Terms Review Questions Discussion Questions
33 33 34
TABLE OF CONTENTS
v
TABLE OF CONTENTS Applying Concepts Hands-On Activities Team Activities
Chapter 2
34 35 35
From Ideas to Application: Real Cases
36
Strategic Uses of Information Systems
39
Gardeners+: Using Information Strategically
40
Strategy and Strategic Moves Achieving a Competitive Advantage
42 43
Initiative #1: Reduce Costs 44
Why You Should Understand the Notion of Strategic Information Systems Initiative #2: Raise Barriers to Market Entrants 45 Initiative #3: Establish High Switching Costs 46 Initiative #4: Create New Products or Services 46 Initiative #5: Differentiate Products or Services 48 Initiative #6: Enhance Products or Services 49 Initiative #7: Establish Alliances 50 Initiative #8: Lock in Suppliers or Buyers 53
Creating and Maintaining Strategic Information Systems
45
54
Creating an SIS 54 Reengineering and Organizational Change 55 Competitive Advantage as a Moving Target 56
JetBlue: A Success Story
57
Massive Automation 58 Away from Tradition 59 Enhanced Service 59 Impressive Performance 60 Late Mover Advantage 60
Ethical & Societal Issues: Size Matters
Ford on the Web: A Failure Story
61
62
The Ideas 62 Hitting the Wall 63 The Retreat 63
The Bleeding Edge Summary
Chapter 3
Gardeners+ Revisited
66
Key Terms Review Questions Discussion Questions Applying Concepts Hands-On Activities Team Activities
66 67 67 68 69 69
From Ideas to Application: Real Cases
70
Business Functions and Supply Chains
75
Gardeners+: Continued Growth and Specialization
76
Effectiveness and Efficiency
vi
TABLE OF CONTENTS
63 65
77
TABLE OF CONTENTS Accounting
80
Why You Should Know About Business Functions and Supply Chains
81
Finance
81
Cash Management 81 Investment Analysis and Service 82
Engineering Supply Chain Management
83 85
Material Requirements Planning and Purchasing 86 Manufacturing Resource Planning 87 Monitoring and Control 87 Shipping 88 RFID in SCM 90
Customer Relationship Management
91
Market Research 92 Targeted Marketing 92 Customer Service 95 Salesforce Automation 95
Human Resource Management
96
Employee Record Management 96 Promotion and Recruitment 96 Training 98 Evaluation 98 Compensation and Benefits Management 99 Ethical & Societal Issues: Consumer Privacy
100
Supply Chain Management Systems
101
The Importance of Trust 102 The Musical Chairs of Inventory 103 Collaborative Logistics 104
Enterprise Resource Planning
104
Challenges and Disadvantages of ERP Systems 105 Providing the Missing Reengineering 106
Summary
107
Gardeners+ Revisited
108
Key Terms Review Questions Discussion Questions Applying Concepts Hands-On Activity Team Activities
108 109 109 110 110 111
From Ideas to Application: Real Cases
PART TWO Chapter 4
112
INFORMATION TECHNOLOGY
115
Case II: QuickBiz Messengers
115
Business Hardware
119
QuickBiz Messengers: Hardware Streamlines Processes
120
TABLE OF CONTENTS
vii
TABLE OF CONTENTS Computer Hardware Components
121
Why You Should Understand Information Systems Hardware
123
Classification of Computers
123
Supercomputers 123 Mainframe Computers 124 Midrange Computers 125 Microcomputers 125 Computers on the Go: Notebook, Handheld, and Tablet Computers 125 Converging Technologies 126
A Peek Inside the Computer
127
The Central Processing Unit 128 Computer Power 129
Input Devices
130
Keyboard 130 Mouse, Trackball, and Trackpad 131 Touch Screen 131 Source Data Input Devices 132 Imaging 133 Speech Recognition 134
Output Devices
135
Monitors 135 Printers 136
Storage Media Modes of Access 137 Magnetic Tapes 137 Magnetic Disks 138 Optical Discs 139 Optical Tape 140 Flash Memory 140 DAS, NAS, and SAN 141 Ethical & Societal Issues: Computers May Be Hazardous to Your Health Business Considerations in Evaluating Storage Media 143
Considerations in Purchasing Hardware
136
142
145
Scalability and Updating Hardware 146
Summary QuickBiz Messengers Revisited
Key Terms Review Questions Discussion Questions Applying Concepts Hands-On Activities Team Activities From Ideas to Application: Real Cases
Chapter 5
TABLE OF CONTENTS
149
149 150 150 151 152 153 154
Business Software
157
QuickBiz Messengers: Software Steers a Path to Stability
158
Software: Instructions to the Hardware Programming Languages and Software Development Tools
viii
148
159 160
TABLE OF CONTENTS Why You Should Be Software Savvy Visual Programming 162 Object-Oriented Programming 163
162
Language Translation: Compilers and Interpreters Application Software
165 167
Office Productivity Applications 167 Hypermedia and Multimedia 169 Mashups 170 Web Site Design Tools 171 Groupware 171 Virtual Reality 172 3-D Geographic Software 173
System Software
174
Operating Systems 174 Other System Software 178
Open Source Software Software Licensing Considerations for Packaged Software
178 180 180
Ethical & Societal Issues: Software Piracy
181
Summary
183
QuickBiz Messengers Revisited
184
Key Terms Review Questions Discussion Questions Applying Concepts Hands-On Activities Team Activities From Ideas to Application: Real Cases
Chapter 6
185 185 186 186 187 187 188
Business Networks and Telecommunications
193
QuickBiz Messengers: Communication Is Key
194
Telecommunications in Business Telecommunications in Daily Use
195 197
Cellular Phones 197 Videoconferencing 197 Wireless Payments and Warehousing 198 Why You Should Understand Telecommunications Peer-to-Peer File Sharing 198 Web-Empowered Commerce 199
Bandwidth and Media
198
199
Bandwidth 199 Media 200
Networks
203
Types of Networks 203 PANs 204 Networking Hardware 205 Virtual Private Networks 205 Switching Techniques 206
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ix
TABLE OF CONTENTS Protocols
207
TCP/IP 207 Ethernet 208 Wireless Protocols 208 Generations in Mobile Communications 212
Internet Networking Services
213
Cable 214 Digital Subscriber Line (DSL) 214 T1 and T3 Lines 215 Satellite 215 Fixed Wireless 216 Fiber to the Premises 216 Optical Carrier 216 Broadband Over Power Lines (BPL) 217
The Future of Networking Technologies Broadband Telephony 217 Ethical & Societal Issues: Telecommuting: Pros and Cons Radio Frequency Identification 220 Converging Technologies 222
Summary QuickBiz Messengers Revisited
Chapter 7
217 218
224 225
Key Terms Review Questions Discussion Questions Applying Concepts Hands-On Activities Team Activities From Ideas to Application: Real Cases
225 226 227 227 228 228 229
Databases and Data Warehouses
231
QuickBiz Messengers: The Value and Uses of Databases
232
Managing Digital Data
233
Why You Should Know About Data Management The Traditional File Approach 234 The Database Approach 235
234
Database Models
238
The Relational Model 239 The Object-Oriented Model 241
Relational Operations
242
Structured Query Language 243 The Schema and Metadata 244
Data Modeling Databases on the Web Data Warehousing
245 246 248
Ethical & Societal Issues: Every Move You Make From Database to Data Warehouse 250 Phases in Data Warehousing 251
249
Summary
253
QuickBiz Messengers Revisited
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TABLE OF CONTENTS
254
TABLE OF CONTENTS Key Terms Review Questions Discussion Questions Applying Concepts Hands-On Activities Team Activities
254 255 255 256 257 258
From Ideas to Application: Real Cases
PART THREE Chapter 8
259
WEB-ENABLED COMMERCE
265
Case III: It Fits Outfits
265
The Web-Enabled Enterprise
268
It Fits Outfits: Setting Up Operations on the Internet
269
Web Business: Growing and Changing Web Technologies: A Review
271 271
HTTP 271 Why You Should Know More About Web-Enabled Business HTML and XML 272 File Transfer 273 RSS 273 Blogs 274 Wikis 274 Podcasting 275 Instant Messaging 275 Cookies 276 Proprietary Technologies 278
272
Web-Enabled Business
278
B2B Trading 278 B2C Trading 283 Ethical & Societal Issues: Online Annoyances and Worse
288
Supply Chains on the Web Options in Establishing a Web Site
292 294
Owning and Maintaining a Server 294 Using a Hosting Service 294 Considerations in Selecting a Web Host 296 More than Meets the Eye 299
Rules for Successful Web-Based Business
300
Target the Right Customers 300 Capture the Customer’s Total Experience 300 Personalize the Service 300 Shorten the Business Cycle 300 Let Customers Help Themselves 301 Be Proactive and De-Commoditize 301 E-Commerce Is Every Commerce 301
Summary
302
It Fits Outfits Revisited
303
Key Terms Review Questions
303 304 TABLE OF CONTENTS
xi
TABLE OF CONTENTS Discussion Questions Applying Concepts Hands-On Activities Team Activities From Ideas to Application: Real Cases
Chapter 9
312
It Fits Outfits: Expanding Gloabally
313
Multinational Organizations The Web and International Commerce
314 315
Think Globally, Act Locally 317 Why You Should Learn About Challenges of Global ISs
318
Challenges of Global Information Systems
318
Summary Key Terms Review Questions Discussion Questions Applying Concepts Hands-On Activities Team Activities
331 331 331 332 333 333
DECISION SUPPORT AND BUSINESS INTELLIGENCE
TABLE OF CONTENTS
334
337
Case IV: DeBoer Farms
337
Decision Support and Expert Systems
340
DeBoer Farms: Farming Technology for Information
341 342 342 343
Why You Should Be Familiar with Decision Aids
345
Decision Support Systems
345
The Data Management Module 346 The Model Management Module 347 The Dialog Module 349
330 330
Decision Support The Decision-Making Process Structured and Unstructured Problems
xii
326
It Fits Outfits Revisited
From Ideas to Application: Real Cases
Chapter 10
308
Challenges of Global Information Systems
Technological Challenges 318 Regulations and Tariffs 319 Differences in Payment Mechanisms 320 Language Differences 320 Cultural Differences 321 Conflicting Economic, Scientific, and Security Interests 321 Political Challenges 323 Different Standards 324 Legal Barriers 325 Ethical & Societal Issues: Legal Jurisdictions in Cyberspace Different Time Zones 329
PART FOUR
304 305 306 307
TABLE OF CONTENTS Sensitivity Analysis 350 Decision Support Systems in Action 351 Ethical & Societal Issues: Decisions by Machines
356
Expert Systems
357
Expert Systems in Action 360
Group Decision Support Systems Geographic Information Systems Summary
364 364 367
DeBoer Farms Revisited
368
Key Terms Review Questions Discussion Questions Applying Concepts Hands-On Activities Team Activities
368 369 369 370 371 372
From Ideas to Application: Real Cases
Chapter 11
373
Business Intelligence and Knowledge Management
376
DeBoer Farms: Harvesting Technology’s Benefits
377
Data Mining and Online Analysis
378
Data Mining 379 Why You Should Learn About BI and KM Tools Online Analytical Processing 382 More Customer Intelligence 387 Dashboards 389
379
Knowledge Management
390
Capturing and Sorting Organizational Knowledge 391 Employee Knowledge Networks 392 Ethical & Societal Issues: Knowledge and Globalization Knowledge from the Web 394 Autocategorization 396
393
Summary
397
DeBoer Farms Revisited
398
Key Terms Review Questions Discussion Questions Applying Concepts Hands-On Activities Team Activities
398 398 399 400 400 400
From Ideas to Application: Real Cases
PART FIVE Chapter 12
401
PLANNING, ACQUISITION, AND CONTROLS
405
Case V: Worldwide Host
405
Systems Planning and Development
409
Worldwide Host: A Vision for the Future
410
TABLE OF CONTENTS
xiii
TABLE OF CONTENTS Planning Information Systems
411
Steps in Planning Information Systems 411 Why You Should Understand the Principles of Systems Development The Benefits of Standardization in Planning 414 From Planning to Development 415
414
The Systems Development Life Cycle
415
Analysis 416 Design 420 Implementation 423 Support 425
Agile Methods
426
When to Use Agile Methods 428 When Not to Use Agile Methods 428
Project Planning and Management Tools Systems Integration
429 431
Ethical & Societal Issues: Should IS Professionals Be Certified?
433
Summary
434
Worldwide Host Revisited
Key Terms Review Questions Discussion Questions Applying Concepts Hands-On Activities Team Activities
Chapter 13
435
435 435 436 437 438 438
From Ideas to Application: Real Cases
439
Choices in Systems Acquisition
443
Worldwide Host: Tapping Others’ Expertise
444
Options and Priorities Outsourcing Outsourcing Custom-Designed Applications 446 Why You Should Understand Alternative Avenues for the Acquisition of Information Systems Outsourcing IT Services 448 Advantages of Outsourcing IT Services 451 Risks of Outsourcing IT Services 451
Licensing Applications
445 446 446
453
Software Licensing Benefits 454 Software Licensing Risks 454 Steps in Licensing Ready-Made Software 455
Software as a Service
457
Caveat Emptor 459
User Application Development
463
Summary
465
Worldwide Host Revisited
xiv
TABLE OF CONTENTS
460
Managing User-Developed Applications 460 Advantages and Risks 461 Ethical & Societal Issues: Computer Use Policies for Employees
466
TABLE OF CONTENTS Key Terms Review Questions Discussion Questions Applying Concepts Hands-On Activities Team Activities
466 466 467 468 468 469
From Ideas to Application: Real Cases
Chapter 14
470
Risks, Security, and Disaster Recovery
473
Worldwide Host: Battling Back from Attacks Goals of Information Security
474 475
Why You Should Understand Risks, Security, and Disaster Recovery Planning
476
Risks to Information Systems
476
Risks to Hardware 476 Risks to Data and Applications 477
Risks to Online Operations
483
Denial of Service 484 Computer Hijacking 484
Controls
485
Application Reliability and Data Entry Controls 485 Backup 485 Access Controls 486 Atomic Transactions 488 Audit Trail 489
Security Measures
489
Firewalls and Proxy Servers 490 Authentication and Encryption 491 The Downside of Security Measures 498 Ethical & Societal Issues: Terrorism and PATRIOTism
499
Recovery Measures
500
The Business Recovery Plan 500 Recovery Planning and Hot Site Providers 502
The Economics of Information Security
502
How Much Security Is Enough Security? 503 Calculating Downtime 503
Summary
505
Worldwide Host Revisited
506
Key Terms Review Questions Discussion Questions Applying Concepts Hands-On Activities Team Activities
507 507 508 509 509 510
From Ideas to Application: Real Cases
511
Glossary Subject Index Name & Company Index
515 531 559 TABLE OF CONTENTS
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