INSTRUCTOR SOLUTION MANUAL For Using MIS Eleventh Edition David Kroenke Randall Boyle

Kroenke & Boyle - Using MIS 11th Ed - Instructor’s Manual

Application Exercises Chapter 1 AE1-1

The spreadsheet in Microsoft Excel file Ch01Ex01_U11e.xlsx contains records of employee activity on special projects. Open this workbook and examine the data that you find in the three spreadsheets it contains. Assess the accuracy, relevancy, and sufficiency of this data to the following people and problems.

a. You manage the Denver plant, and you want to know how much time your employees are spending on special projects.

The answer to this question is given directly on the Denver worksheet, so this data is accurate, relevant, and sufficient for the purposes of the Denver plant manager.

(LO: 6, Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: Information Technology) b. You manage the Reno plant, and you want to know how much time your employees are spending on special projects.

The answer to this question is given directly on the Reno worksheet, so this data is accurate, relevant, and sufficient for the purposes of the Reno plant manager. (L O: 6, Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: Information Technology) c. You manage the Quota Computation project in Chicago, and you want to know how much time your employees have spent on that project.

The project manager will have to manipulate the data on the Chicago worksheet to produce the answer of interest. The worksheet rows could be sorted by project, and then a sum computed of the hours worked for the Quota Computation rows.

The data is sufficient, but must be manipulated to produce the relevant result, and because of that manipulation, the accuracy of the result might be questionable. (L O: 6, Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: Information Technology) d. You manage the Quota Computation project for all three plants, and you want to know the total time employees have spent on your project.

This project manager will have considerable work to do to find the result needed.

On each sheet, the worksheet rows will have to be sorted by project, a sum will have to be computed for the Quota Computation project, and then this sum will have to be added to a total for all three plants. The data provided is sufficient to

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produce the desired result, but its relevancy is questionable because of the amount of effort required to find the answer of interest to the manager, and there is a significant risk of inaccuracy resulting from all the manipulations that are required. (LO: 6, Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: Information Technology) e. You manage the Quota Computation project for all three plants, and you want to know the total labor cost for all employees on your project.

This information is not available at all, because there is no data regarding labor cost in the workbook. Therefore, although the data provided may be accurate and somewhat relevant, it is not sufficient to produce the desired result. (LO: 6, Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: Information Technology) f. You manage the Quota Computation project for all three plants, and you want to know how the labor-hour total for that project compares to the labor-hour totals for the other special projects.

This result can be found with some effort. If the manager produced the answer in part d above, then this can be subtracted from the total hours worked on all projects for all three plants to find the total hours worked on all other special projects. The data provided is sufficient to produce the desired result, but its relevancy is questionable because of the amount of effort required to find the answer of interest to the manager, and there is a significant risk of inaccuracy resulting from all the manipulations that are required. (LO: 6, Learning Outcome: Explain how information systems can be used to assist in decision making, AACS B: Information Technology) g. What conclusions can you make from this exercise?

The data in the workbook do provide us with the ability to answer questions about labor hours worked on special projects, so the data is sufficient. As the data is grouped on individual sheets by plant, it becomes more difficult to answer questions that span more than one plant. So, the data’s relevance decreases because we can’t find answers without some work. As more manipulation has to be done to find answers to questions, there is more of a chance of introducing errors in the answers, thus lowering the accuracy of the data. (LO: 6, Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: Information Technology)

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AE1-2

The database in the Microsoft Access file Ch01Ex02_U11e.accdb contains the same records of employee activity on special projects as in Application Exercise 1-1. Before proceeding, open that database and view the records in the Employee Hours table. a. Eight queries have been created that process this data in different ways. Using the criteria of accuracy, relevancy, and sufficiency select the single query that is most appropriate for the information requirements in Application Exercise 1-1, parts a through f. If no query meets the need, explain why not.

▪

You manage the Denver plant, and you want to know how much time your employees are spending on special projects.

The Denver Sum query provides a direct answer to this question. It is accurate, relevant, and sufficient. The Plant Sum query also contains the answer to this question along with answers for the other two plants. (LO: 6, Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: Information Technology)

▪

You manage the Reno plant, and you want to know how much time your employees are spending on special projects.

There is no query that answers this question directly. However, the Plant Sum query includes the answer to this question. It is accurate and sufficient, but adds some information that is not relevant (sums for the Denver and Chicago plants). (LO: 6, Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: Information Technology)

▪

You manage the Quota Computation project in Chicago, and you want to know how much time your employees have spent on that project.

The Sorted Query 1 query can be used to find the answer to this question. This query lists the hours worked by employees in the Chicago plant on the Quota Computation project. These hours can be manually added to find the total hours spent on the Quota Computation project by Chicago plant employees.

The data is sufficient, but must be manipulated to produce the relevant result—and because of that manipulation, the accuracy of the result might be questionable. Because there is information in the query that is not really needed, the data is more than sufficient to answer the question. (LO: 6, Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: Information Technology)

▪

You manage the Quota Computation project for all three plants, and you want to know the total time your employees have spent on your project.

None of the queries provide a direct answer for this question. Sorted Query 1, Sorted Query 2, or Sorted Query 3 can be used to compute the answer, but the

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manager must add specific individual rows in the query to compute the result.

The data is sufficient, but must be manipulated to produce the relevant result, and because of that manipulation, the accuracy of the result might be questionable. Because there is information in the query that is not really needed, the data is more than sufficient to answer the question. (LO: 6, Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: Information Technology) ▪

You manage the Quota Computation project for all three plants, and you want to know the total labor cost for all employees on your project.

This information is not available at all, as there is no data regarding labor cost in the database. Therefore, although the data provided may be accurate and somewhat relevant, it is not sufficient to produce the desired result. (LO: 6, Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: Information Technology)

▪

You manage the Quota Computation project for all three plants, and you want to know how the labor-hour total for that project compares to the labor-hour totals for the other special projects.

This result can be found with some effort. If the manager produced the total hours worked in all plants on the Quota Computation project, then this can be subtracted from the total hours worked on all projects for all three plants to find the total hours worked on all other special projects (found by adding the three rows in the Plant Sum query). The data provided is sufficient to produce the desired result, but its relevancy is questionable because of the amount of effort required to find the answer of interest to the manager, and there is a significant risk of inaccuracy resulting from all the manipulations that are required. (LO: 6, Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: Information Technology)

b. What conclusions can you draw from this exercise?

Queries can be formulated to answer specific questions quickly and easily, but should be constructed to produce the exact answer to the question, rather than expecting the user to do additional manual computations to find the necessary answer. In addition, queries should be given meaningful names so that the user can easily determine which to use to answer questions. (LO: 6, Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: Information Technology) c. Comparing your experiences on these two projects, what are the advantages and disadvantages of spreadsheets and databases?

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Queries in databases can be constructed to produce specific answers, and are easy to use. When a query does not exist to give a needed result, finding the result through manual computation is harder than when using a spreadsheet because you don’t have access to the spreadsheet’s computational capabilities. (LO: 6, Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: Information Technology) AE1-3

In this project, you will look at statistics related to information systems jobs.

For several years, the demand for IT workers has been increasing. So have average annual wages for IT workers. Projections for future job demand and salary growth are also well above average.

The sites in this exercise allow you to search by job code (e.g., 15-1071) or by job title. The data is aggregated by state, but you can look up statistics for your individual city through the Department of Labor’s (DOL’s) Web site (www.dol.gov/dol/location.htm). The DOL site links to your local state government’s Web page.

(1) Go to O*NET at http://online.onetcenter.org/.

(2) Type “network administrator” into the Occupation Quick Search in the top right of the screen.

(3) Press Enter.

(4) Click on the first link.

(5) Click on Wages & Employment.

(6) Take a screenshot. (You can take a screenshot by pressing Alt-Print Screen.)

(7) Select your state from the State Wages dropdown box.

(8) Click Go. (9) Click on the Yearly Wage Chart.

(10) Take a screenshot.

(11) Go to the U.S. Bureau of Labor Statistics at www.bls.gov/OES/.

(12) Click on Subjects and then Pay & Benefits.

(13) Click Wages by Area and Occupation.

(14) Click the link labeled By State under the State Wage Data section.

(15) Click on a state. (Choose the state you want to work in after you graduate.)

(16) Click on the link labeled 15-0000 Computer and Mathematical Science Occupations.

(17) Take a screenshot.

(18) Click on the link labeled Network and Computer Systems Administrators. (Note the mean annual wage.)

(19) Click on the link labeled Geographic profile for this occupation. (This will show you the states with the highest concentration of workers in this job category. It will also show you the states that have the highest annual salaries for this job category.)

(20) Take a screenshot. a. Could you find statistics for employment by city within your state? (Hint: Visit the U.S. Department of Labor at www.dol.gov/dol/location.htm.)

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Student results will vary depending on the state they chose. Statistics are available for each state. (LO: 6, Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: Information Technology) b. Is the demand for IT jobs (network administrators) projected to increase more than the national average? Why or why not?

Yes, the demand for IT jobs in network administration is projected to increase more than the national average in some states but not in others. There is a wide variation, ranging from a high of 33% in Utah to a low of 0% in Ohio. Depending on location by state, the demand for IT workers is higher than that of the average worker, or alternatively the supply of IT workers is lower than that of the average worker. (LO: 6, Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: Information Technology) c. Is the average salary for IT workers (network administrators) projected to increase more than the national average? Why or why not?

The average salary for network administrators is projected to increase at about the same rate as the national average. This also varies quite a bit by location, reflecting on the fact that demand for these skills varies widely by location.

Overall, the growth in demand for network administrators may be reduced by the increasing use of cloud computing by many organizations. (LO: 6, Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: Information Technology) d. Why do you think the projections for job demand and salary increase for I T workers are so high?

Student responses to this question may vary. In general, the increasing dependence of organizations on IT will likely increase the demand for IT workers and their salaries. (LO: 6, Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: Information Technology)

Chapter 2 AE2-1.

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Figure AE-1 shows an Excel spreadsheet that the resort bicycle rental business uses to value and analyze its bicycle inventory. Examine this figure to understand the meaning of the data. Now use Excel to create the spreadsheet.

Note the following: The top heading is in 20-point Calibri font. It is centered in the spreadsheet. Cells A1 through H1 all have been merged.

The second heading, Bicycle Inventory Valuation, is in Calibri 18, italics. It is centered in Cells A2 through H2, which have been merged.

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The column headings are set in 11-point Calibri, bold. They are centered in their cells, and the text wraps in the cells.

a. Make the first two rows of your spreadsheet similar to that in Figure AE-1.

Choose your own colors for background and type. b. Place the current date centered in cells C3, C4, and C5, which must be merged. c. Outline the cells as shown in Figure AE-1. d. Figure AE-1 uses the following formulas: Cost of Current Inventory = Bike Cost  Number on Hand Revenue per Bike = Rental Revenue / Number on Hand Revenue as a percent of Cost of Inventory = Total Rental Revenue / Cost of Current Inventory Use these formulas in your spreadsheet, as shown in Figure AE-1.

e. Format the cells in the columns as shown.

See example in part a above. (LO: 6, Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: Information Technology) f. Give three examples of decisions that management of the bike rental agency might make from this data.

A spreadsheet such as this can help identify underutilized bikes based on the number of rentals. The LiteLift Pro and the WonderBike II have a relatively low number of rentals compared to the other models. The manager should evaluate

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why these models are not rented as often as others. Is it the rental price or something about the models themselves that have limited appeal?

The revenue per bike can identify models that are very productive (e.g., LiteLift Racer). Management might want to purchase more highly productive models.

Revenue as a percent of cost of inventory shows management which models are good investments. The LiteLift Ladies and LiteLift Racer were expensive models, but are generating a good return. Buying more of these models might be worth considering. (LO: 6, Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: Information Technology) g. What other calculation could you make from this data that would be useful to the bike rental management? Create a second version of this spreadsheet in your worksheet document that has this calculation.

The modified spreadsheet below has added a column for the number of rentals per bike. This information shows the popularity of the models. Management should consider buying more of the popular models and investigate why some models don’t seem to be popular.

(LO: 6, Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: Information Technology) AE2-2.

In this exercise, you will learn how to create a query based on data that a user enters and how to use that query to create a data entry form.

a. Download the Microsoft Access file Ch02Ex02_U11e.accdb. Open the file and familiarize yourself with the data in the Customer table. b. Click Create in the Access ribbon. Click on the icon labeled Query Design. Select the Customer table as the basis for the query by double-clicking on Customer.

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Close the Show Table dialog. Drag CustomerName, CustomerEmail, DateOfLastRental, BikeLastRented, TotalNumberOfRentals, and TotalRentalRevenue into the columns of the query results pane (the table at the bottom of the query design window). c. In the CustomerName column, in the row labeled Criteria, place the following text: [Enter Name of Customer:] Type this entry exactly as shown, including the square brackets. This notation tells Access to ask you for a customer name to query.

d. In the ribbon, click the red exclamation mark labeled Run. Access will display a dialog box with the text “Enter Name of Customer:” (the text you entered in the query Criteria row). Enter the value Maple, Rex and click OK.

e. Save your query with the name Parameter Query. f. Click the Home tab on the ribbon and click the Design View (upper left-hand button on the Home ribbon). Replace the text in the Criteria column of the CustomerName column with the following text. Type it exactly as shown: Like “*” & [Enter part of Customer Name to search by:] & “*”

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g. Run the query by clicking Run in the ribbon. Enter Maple when prompted. Enter part of Customer Name to search by. Notice that the two customers who have the name are displayed. If you have any problems, ensure that you have typed the phrase above exactly as shown into the Criteria row of the CustomerName column of your query.

h. Save your query again under the name Parameter Query. Close the query window. i. Click Create in the Access ribbon. Under the Forms group, choose Form Wizard.

In the dialog that opens, in the Table/Queries box, click on the down arrow.

Select Query: Parameter Query. Click the double chevron (>>) symbol and all of the columns in the query will move to the Selected Fields area. j. Click Next two times. In the box under What title do you want for your form? enter Customer Query Form and click Finish. k. Enter Maple in the dialog box that appears. Access will open a form with the values for Maple, Rex. At the bottom of the form, click the right facing arrow and the data for the second customer named Maple will appear. What is that customer's first name?

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l. Close the form. Select Object Type and Forms in the Access Navigation Pane.

Double-click Customer Query Form and enter the value Amanda. Access will display data for all three customers having the value Amanda in their name.

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The user can scroll through the other two records to view customers with ‘Amanda’ in their names (Amanda Lane and Amanda T. Dixon).

(LO: 6, Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: Information Technology)

Chapter 3 AE3-1.

OLAP cubes are very similar to Microsoft Excel pivot tables. For this exercise, assume that in your organization purchasing agents rate vendors on a scale from 1 to 5, with 5 being the best.

a. Open the Excel file Ch03Ex01_U11e.xlsx. The spreadsheet has the following column headings: VendorName, EmployeeName, Date, Year, and Rating.

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(LO: 4, Learning Outcome: Discuss the role of information systems in supporting business processes, AAC SB: Information Technology) b. Under the INSERT ribbon in Excel, click Pivot Table. c. When asked to provide a data range, drag your mouse over the column names and data values so as to select all of the data. Excel will fill in the range values in the open dialog box. Place your pivot table in a new worksheet. Click OK. d. Excel will create a field list on the right-hand side of your spreadsheet.

Underneath it, a grid labeled Drag fields between areas below: should appear.

Drag and drop the field named VendorName into the area named ROWS. Observe what happens in the pivot table to the left (in column A). Now drag and drop EmployeeName on to COLUMNS and Rating on to VALUES. Again observe the effect of these actions in the pivot table to the left. Voilà! You have a pivot table.

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(LO: 4, Learning Outcome: Discuss the role of information systems in supporting business processes, AAC SB: Information Technology) e. To see how the pivot table works, drag and drop more fields onto the grid in the bottom right-hand side of your screen. For example, drop Year just underneath Employee. Then move Year above Employee. Now move Year below Vendor. All of this action is just like an OLAP cube, and in fact, OLAP cubes are readily displayed in Excel pivot tables. The major difference is that OLAP cubes are usually based on thousands or more rows of data.

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(LO: 4, Learning Outcome: Discuss the role of information systems in supporting business processes, AAC SB: Information Technology)

AE3-2.

Suppose you work for the bicycle parts distributor mentioned in Q3-2 of Chapter 3. The team was investigating the possibility of selling 3D printable plans for bike parts rather than the parts themselves. The team needs to identify qualifying parts and compute how much revenue potential those parts represent.

Download the Access file Ch03Ex02_U11e.accdb, which contains the data extract the team used.

a. Suppose Desert Gear Supply decides not to release its 3D design files at any price. Remove parts provided by it from consideration and repeat the data analysis in Chapter 3.

Modified Figure 3-5 – Orders and Parts View without Desert Gear Supply

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Modified Figure 3-8 Customer Summary without Desert Gear Supply

Selection of Big Customers without Desert Gear Supply

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Modified Figure 3-10 Qualifying Parts without Desert Gear Supply

Modified Figure 3-11 Revenue Potential without Desert Gear Supply

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(LO: 2, Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: Information Technology) b. The team decides, in light of the absence of Desert Gear Supply’s part designs, to repeat their analysis with different criteria as follows: • Large customers are those who have ordered more than 900 parts.

• Frequent purchases occur at least 25 times per year.

• Small quantities have an average order size of 3 or less.

• Inexpensive parts cost less than $75.

• Shipping weight is less than 4 pounds.

• Repeat the data analysis in Chapter 3.

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(LO: 2, Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: Information Technology) c. How does the second set of criteria change the results?

The revenue potential is reduced. Part Number 200-211 is excluded from the results under these assumptions. This part number has a revenue potential of $30,912.19, so the potential value of the sale of 3D parts designed is diminished even more than under the original assumptions.

(LO: 2, Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: Information Technology) d. What recommendations would you make in light of your analysis?

Based on these analyses, it does not appear that the sale of 3D printing part designs will be a venture worth pursuing. The revenue potential is too small.

(LO: 2, Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: Information Technology) AE3-3.

Microsoft Fetch! is an AI application that is designed to automatically identify dog breeds. Identifying dog breeds is difficult because there are many dog breeds with similar traits. Fetch! analyzes numerous facial traits to try to identify the correct dog breed. It turns out to be amazingly accurate. The fun part is when you upload a picture of yourself and see which dog breed you most closely match.

Another AI-driven Microsoft application (www.how-old.net) guesses how old you look based on your picture. We will consider both of these applications in this exercise.

a. b. c. d.

Go to www.what-dog.net. (Microsoft Fetch! runs the application on this site.)

Click Use your own photo.

Select a picture of yourself from your computer.

Take a screenshot of the results. (One of the authors, Boyle, was identified as an Irish Setter. The other author, Kroenke, was identified as a Boerboel.) e. Go to www.how-old.net. f. Click Use your own photo.

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g. Select a picture of yourself from your computer. h. Take a screenshot of the results.

All tasks to be performed by students. (LO: 6, Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: Information Technology) i. Explain how AI applications like these could be useful beyond identifying dog breeds and ages.

Student responses to this question may vary. In general, these examples demonstrate the pattern recognition process used in AI computer vision applications for things such as facial recognition. (LO: 6, Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: Information Technology) j

How could this type of AI-driven vision system be commercialized (i.e., be used to make money)?

Student responses to this question may vary. A current application of this technology is the use of facial recognition as a biometric access control for smartphones. (LO: 6, Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: Information Technology)

Chapter 4 AE4-1.

Sometimes you will have data in one Office application and want to move it to another Office application without rekeying it. Often this occurs when data was created for one purpose but then is used for a second purpose. For example, Figure AE-2 presents a portion of an Excel spreadsheet that shows the assignment of computers to employees.

Suppose that you want to use this data to help you assess how to upgrade computers.

Let’s say, for example, that you want to upgrade all of the computers’ operating systems to Windows 10. Furthermore, you want to first upgrade the computers that most need upgrading, but suppose you have a limited budget. To address this situation, you would like to query the data in Figure AE-2, find all computers that do not have Windows 10, and then select those with slower C PUs or smaller memory as candidates for upgrading. To do this, you need to move the data from Excel into Access.

Once you have analyzed the data and determined the computers to upgrade, you want to produce a report. In that case, you may want to move the data from Access and back to Excel, or perhaps into Word. In this exercise, you will learn how to perform these tasks.

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a. To begin, download the Excel file Ch04Ex01_U11e.xlsx into one of your directories. We will import the data in this file into Access, but before we do so, familiarize yourself with the data by opening it in Excel. Notice that there are three worksheets in this workbook. Close the Excel file. b. Create a blank Access database. Name the database Ch04Ex01_Answer. Place it in some directory; it may be the same directory into which you have placed the Excel file, but it need not be. Close the default table Access creates and delete it. c. Now, we will import the data from the three worksheets in the Excel file Ch04Ex01_U11e.xlsx into a single table in your Access database. In the ribbon, select External Data and in the Import & Link section, click Excel. Start the import. For the first worksheet (Denver), you should select Import the source data into a new table in the current database. Ignore the warning about the first row by clicking OK. Be sure to click First Row Contains Column Headings when Access presents your data. You can use the default Field types and let Access add the primary key. Name your table Employees and click Finish. There is no need to save your import script.

For the Miami and Boston worksheets, again click External Data, Import Excel, but this time select Append a copy of the records to the table Employees.

Select the Miami worksheet and click Finish. Repeat to import the Boston office employees.

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d. Open the Employee table and examine the data. Notice that Access has erroneously imported a blank line and the Primary Contact data into rows at the end of each data set. This data is not part of the employee records, and you should delete it (in three places—once for each worksheet). The Employee table should have a total of 40 records.

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e. Create a parameterized query on this data. Place all of the columns except ID into the query. In the OS column, set the criteria to select rows for which the value is not Windows 10. In the CPU (GHz) column, enter the criterion: <=[Enter cutoff value for CPU] and in the Memory (GB) column, enter the criterion: <=[Enter cutoff value for Memory]. Test your query. For example, run your query and enter a value of 4 for both CPU and memory. Verify that the correct rows are produced.

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f. Use your query to find values of CPU and memory that give you as close to a maximum of 15 computers to upgrade as possible.

CPU of 4 and memory of 4 produces a result of 16 computers shown in part e. g. When you have found values of CPU and memory that give you 15, or nearly 15, computers to upgrade, leave your query open. Now, click External data, Word, and create a Word document that contains the results of your query. Adjust the column widths of the created table so that it fits on the page. Write a memo around this table explaining that these are the computers that you believe should be upgraded.

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(LO: 6, Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: Information Technology) AE4-2.

Assume you have been asked to create a spreadsheet to help make a buyversus-lease decision about the servers for your organization. Assume that you are considering the servers for a 5-year period, but you do not know exactly how many servers you will need. Initially, you know you will need five servers, but you might need as many as 50, depending on the success of your organization’s ecommerce activity. (By the way, many organizations are still making these calculations. However, those that have moved to the cloud no longer need to do so!)

a. For the buy-alternative calculations, set up your spreadsheet so that you can enter the base price of the server hardware, the price of all software, and a maintenance expense that is some percentage of the hardware price. Assume that the percent you enter covers both hardware and software maintenance. Also assume that each server has a 3-year life, after which it has no value. Assume straight-line depreciation for computers used less than 3 years, and that at the end of the 5 years, you can sell the computers you have used for less than 3 years for their depreciated value. Also assume that your organization pays 2 percent interest on capital expenses. Assume the servers cost $2,500 each, and the needed software costs $1,250. Assume that the maintenance expense varies from 2 to 7 percent.

See spreadsheet under part b that incorporates both the buy and lease options. b. For the lease-alternative calculations, assume that the leasing vendor will lease the same computer hardware as you can purchase. The lease includes all the

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software you need as well as all maintenance. Set up your spreadsheet so that you can enter various lease costs, which vary according to the number of years of the lease (1, 2, or 3). Assume the cost of a 3-year lease is $285 per machine per month, of a 2-year lease is $335 per machine per month, and of a 1-year lease is $415 per machine per month. Also, the lessor offers a 5 percent discount if you lease from 20 to 30 computers and a 10 percent discount if you lease from 31 to 50 computers.

c. Using your spreadsheet, compare the costs of buy versus lease under the following situations. (Assume you either buy or lease. You cannot lease some and buy some.) Make assumptions as necessary and state those assumptions.

(1) Your organization requires 20 servers for 5 years.

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Note that the buy option assumes the 20 servers purchased in the first year are viable for the entire 5-year period. The lease option assumes 20 servers leased for a 3-year lease followed by a 2-year lease.

(2) Your organization requires 20 servers for the first 2 years and 40 servers for the next 3 years.

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Note that the buy option assumes 20 servers purchased in year 1, followed by an additional 20 servers purchased in year 3. The first 20 servers are assumed to be workable for the entire 5 years. The lease option includes 20 servers on a 2-year lease followed by 40 servers on a 3-year lease.

(3) Your organization requires 20 servers for the first 2 years, 40 servers for the next 2 years, and 50 servers for the last year.

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Note that the buy option assumes 20 servers purchased in year 1, followed by an additional 20 servers purchased in year 3, followed by an additional 10 servers purchased in year 5. The first 20 servers are assumed to be workable for the entire 5 years. The lease option includes 20 servers on a 2-year lease followed by 40 servers on a 2-year lease, followed by 50 servers on a 1-year lease.

(4) Your organization requires 10 servers the first year, 20 servers the second year, 30 servers the third year, 40 servers the fourth year, and 50 servers the last year.

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Note that the buy option assumes 10 servers purchased in each year of the 5-year period. The lease option includes 10 servers on a 3-year lease acquired in the first year, 10 additional servers on a 3-year lease acquired in the second year, 10 additional servers on a 3-year lease acquired in the third year, 20 additional servers on a 2-year lease acquired in the fourth year, followed by 20 additional servers acquired in the fifth year on a 1-year lease.

(5) For the previous case, does the cheaper alternative change if the cost of the servers is $4,000? If it is $8,000?

It does not change, as shown in these spreadsheets:

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(LO: 1, Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: Information Technology)

AE4-3.

As you read in Chapter 4, open source software is popular because it’s stable, customizable, and free. But you may not have used open source software before. In this project, you will download an alternate to the Microsoft Office suite called LibreOffice. It has applications for making documents (Writer), spreadsheets (Calc), presentations (Impress), databases (Base), and graphics (Draw) similar to those in Microsoft Office.

If you’re used to Microsoft Office, it will take some time to become familiar with the LibreOffice interface. LibreOffice can do just about everything Microsoft Office can do, but it does it in a slightly different way. The main benefit of using LibreOffice is that it’s totally free. You can install it as many times as you’d like on as many computers as you’d like.

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a. Browse to www.libreoffice.org. b. Click on the Download menu and select LibreOffice Fresh. c. Download and install the latest version of LibreOffice. (There are LibreOffice versions for Windows, Mac OS X, and Linux.) d. Open LibreOffice Calc. (There will be a shortcut on your desktop.) e. Enter your name, date, and time into the new spreadsheet in cells A1, A2, and A3, respectively.

f. Click Tools and Options. g. Expand the Load/Save menu and click on General. h. Change the “Always save as” dropdown from ODF Spreadsheet to Microsoft Excel 2007-2013 X ML and click OK. (You can do the same thing for documents and presentations.) i. Click File, Save, and Save. j. Take a screenshot with your name showing and paste it into your document. (You can take a screenshot by pressing Alt + Print Screen.)

All of the above are tasks to be performed. k. Explain why more people don’t use LibreOffice if it’s free.

The pervasiveness of Office may make people reluctant to change, especially if there is any concern about file compatibility between the two products. l. Explain why a systems administrator, who manages hundreds of servers (with Linux and Windows operating systems), might like using LibreOffice.

The open-source form of LibreOffice means that the systems administrator does not have to be worried about the number of user licenses for the product. m. Explain why LibreOffice might be an important application for users or organizations in developing countries.

In developing countries with scarce resources, this application is freely available and can enable users to become proficient with these personal productivity tools without any application software expenditures.

(LO: 1, Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: Information Technology)

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Chapter 5 AE5-1.

In some cases, users want to use Access and Excel together. They process relational data with Access, import some of the data into Excel, and use Excel’s tools for creating professional-looking charts and graphs. You will do exactly that in this exercise.

Download the Access File Ch05Ex01_U11e.accdb. Open the database and select DATABASE TOOLS/Relationships. As you can see, there are three tables, Product, VendorProductInventory, and Vendor. Open each table individually to familiarize yourself with the data.

For this problem, we will define InventoryCost as the product of IndustryStandardCost and QuantityOnHand. The query InventoryCost computes these values for every item in inventory for every vendor. Open that query and view the data to be certain you understand this computation. Open the other queries as well so that you understand the data they produce. a. Sum this data by vendor and display it as a pie chart like that shown in Figure AE-3 (your totals will be different from those shown). Proceed as follows: (1) Open Excel and create a new spreadsheet.

(2) Click DATA on the ribbon and select From Access in the Get External Data ribbon category.

(3) Navigate to the location in which you have stored the Access File Ch05Ex01_U11e.accdb.

(4) Select the query that contains the data you need for this pie chart.

(5) Import the data into a worksheet.

(6) Format the appropriate data as currency.

(7) Select the range that contains the data, press the Function key, and proceed from there to create the pie chart. Name the Data and Pie chart worksheets appropriately.

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Sum of Inventory Cost by Vendor

Webster Distribution, 158,908.50

Copper River Manufacturing, 331,696.36

Team Supplies, 103,238.90

Illumination, Inc, 145,204.38

Grant Sales, 206,036.91

b. Follow a similar procedure to create a bar chart shown in Figure AE-4. Place the data and chart in separate worksheets and name them appropriately.

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(LO: 1, Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: Information Technology) AE5-2.

Read Case Study 5 on pages 195–199. A copy of Dean’s database is stored in the Access file Ch05Ex02_U11e.accdb. Download a copy of this file and create queries to provide the following data:

a. Sort the pianos from high quality to low.

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b. Sort the pianos from high quality to low, and, within each quality, sort by Building and then by Location within that building.

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c. List the pianos in the shed and sort the results by manufacturer.

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d.

List all of the pianos with a Type of Spinet.

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e.

Count the pianos for each value of quality (ranging from 1 to 5).

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Get complete Order files download link below

htps://www.mediafire.com/fil e/dy43qd62vnf7g0n/IM+Using +MIS,+11e+David+Kroenke,+R andall+Boyle.zip/file If this link does not work with a click, then copy the complete Download link and paste link in internet explorer/firefox/google chrome and get all files download successfully.

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f.

Write a query to produce the report in Figure 5-35 on page 199.

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(LO: 1, Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: Information Technology)

AE5-3.

In this exercise, you will create a two-table database, define relationships, create a form and a report, and use them to enter data and view

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results. a. Download the Excel file named Ch05Ex03_U11e.xlsx. Open the spreadsheet and review the data in the Employee and Computer worksheets. b. Create a new Access database with the name Ch05Ex03_Solution. Close the table that Access automatically creates and delete it. c. Import the data from the Excel spreadsheet into your database. Import the Employee worksheet into a table named Employee. Be sure to check First Row Contains Column Headings. Select Choose my own primary key and use the ID field as that key. d. Import the Computer worksheet into a table named Computer. Check First Row Contains Column Headings, but let Access create the primary key. e. Open the relationships window and add both Employee and Computer to the design space. Drag ID from Employee and drop it on EmployeeID in Computer.

Check Enforce Referential Integrity and the two checkmarks below. Ensure you know what these actions mean.

These actions are establishing the relationship between an employee instance in the Employee table and instances of computers in the Computer table and ensuring that the DBMS applies referential integrity rules to this relationship. f. Open the Form Wizard dialog box (under Create, More Forms) and add all of the columns for each of your tables to your form. Select View your data by Employee.

Title your form Employee and your subform Computer. g. Open the Computer subform and delete EmployeeID and ComputerID. These values are maintained by Access, and it is just a distraction to keep them. Your form should appear like the one shown in Figure AE-5 (Your data will be different). h. Use your form to add two new computers to Michael Murphy. Both computers are Dells, and both use Windows 8; one costs $750, and the second costs $1,400.

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i. Delete the Lenovo computer for Stan Larsen. j. Use the Report Wizard (under Create) to create a report having all data from both the Employee and Computer tables. Adjust the report design until you find a design you like. Correct label alignment if you need to.

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(LO: 1, Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: Information Technology)

Chapter 6 AE6-1.

Numerous Web sites are available that will test your Internet data communications speed. You can find a good example at www.measurementlab.net/tests/ndt/. (If that site is no longer active, Google or Bing “What is my Internet speed?” to find another speed-testing site. Use it.)

a. While connected to your university’s network, go to www.measurementlab.net/tests/ndt/ and click Start Test. Record your average upload speed, download speed, network latency, and jitter.

Student answers will vary, depending on the specific data communication configuration in use. (LO: 3, Learning Outcome: Compare and contrast different ways of connecting to the Internet, AACSB: Information Technology) b. Go home, or to a public wireless site, and run the

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www.measurementlab.net/tests/ndt/ test again. Compute your average upload and download speeds. If you are performing this test at home, are you getting the performance you are paying for?

Student answers will vary, depending on the specific data communication configuration in use. (LO: 3, Learning Outcome: Compare and contrast different ways of connecting to the Internet, AACSB: Information Technology) c. Contact a friend or relative in another state. Ask him or her to run the www.measurementlab.net/tests/ndt/ test. Report the upload and download speeds.

Student answers will vary, depending on the specific data communication configuration in use. (LO: 3, Learning Outcome: Compare and contrast different ways of connecting to the Internet, AACSB: Information Technology) d. Compare the results in parts a-c. What conclusion, if any, can you make from these tests?

Student answers will vary, depending on the specific data communication configuration in use. (LO: 3, Learning Outcome: Compare and contrast different ways of connecting to the Internet, AACSB: Information Technology) AE6-2.

Assume you have been asked to create an Office application to estimate cloud computing costs. You decide to create a spreadsheet into which your customers can provide their cloud computing needs and which you can then import into an Access database and use queries to compute cloud computing costs.

Figure AE-6 shows the structure of the spreadsheet into which your customers will input their requirements. You can download this spreadsheet in the Excel file Ch06Ex02_U11e.xlsx. Figure AE-7 shows an Access table that has costs corresponding to the requirements in Figure AE-6. You can download this database in the Access file Ch06Ex02_U11e.accdb. a. Import the spreadsheet data into the Access database.

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b. Write queries to compute the cost of each resource.

(LO: 5, Learning Outcome: Compare and contrast different ways of connecting to the Internet, AACSB: Information Technology) c. Create a report that shows the cost for each type of resource for each month.

Show the total costs for the 6-month period for each resource as well. Include a grand total of all the costs.

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(LO: 5, Learning Outcome: Compare and contrast different ways of connecting to the Internet, AACSB: Information Technology) d. Create a pie chart that breaks out the total costs by resource. Hint: You can import the query data back into Excel.

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(LO: 5, Learning Outcome: Compare and contrast different ways of connecting to the Internet, AACSB: Information Technology) e. Create a pie chart that breaks out the total costs by month. Hint: You can import the query data back into Excel.

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(LO: 5, Learning Outcome: Compare and contrast different ways of connecting to the Internet, AACSB: Information Technology) f. Assume that processing costs increase by 10 percent across the board. Repeat parts c, d, and e for the changed costs.

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(LO: 5, Learning Outcome: Compare and contrast different ways of connecting to the Internet, AACSB: Information Technology) AE6-3.

There are a few problems with cloud-based storage. First, it seems like there’s never enough of it. This is especially true if it’s free. Second, you always wonder if it’s really secure. Yes, your storage provider says your data is secure.

But is it really? Is there some way to be sure?

In this project, you will learn how to use 7-Zip to solve both of these problems.

You’ll learn how to compress and encrypt important files and directories. If you are storing confidential data in the cloud, it’s important to make sure it’s encrypted—by you. Using a third-party encryption tool like 7-Zip means only you can access your data. Trusting your cloud providers isn’t necessary. 7-Zip is also a very efficient file archiver that will save you a lot of space. a. Browse to www.7-zip.org. b. Click on Download and install the latest version of 7-Zip for your operating system. (There are 7-Zip versions for Windows, Mac OS X, Linux, BSD, and UNIX.) c. Go to your Downloads folder. (You can go to any folder that contains large files.) d. Right-click on a large file. e. Click 7-Zip and Add to archive. f. Rename the file YourName.7z. (Replace “YourName” with your first and last names. g. If your name was John Doe, the file would be named JohnDoe.7z.)

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h. In the Encryption section, enter a password—twice. (Choose a simple password you can remember.) i. Take a screenshot and paste it into your document. (You can take a screenshot by pressing Alt + Print Screen.) j. Click OK. (Notice that your original file remains unchanged.) k. After your new YourName.7z file is compressed, right-click it and select 7-Zip and Extract to “YourName\”. l. Enter the password you set, and click OK. (Your file should start extracting.)

All of the above are tasks to be performed. m. Explain why third-party encryption is important for highly confidential files.

This method of encrypting a file before placing the file in cloud storage ensures that if the cloud vendor’s security fails, the file still cannot be understood if it is accessed by an unauthorized person. One of the disadvantages of cloud storage is the lack of visibility into the cloud vendor’s actual security procedures. Taking this action provides an additional layer of security for sensitive documents. n. Explain why compressing large files is important when using cloud-based storage.

File compression helps to utilize a minimal amount of cloud storage space. Even with the low costs of cloud storage, it is not wise to pay for more space than is absolutely necessary.

(LO: 5, Learning Outcome: Compare and contrast different ways of connecting to the Internet, AACSB: Information Technology) AE6-4.

In this exercise, you will learn to use two of the most commonly used networking commands—ping and ipconfig. Both of these commands are commonly used to troubleshoot network problems.

Ping is a command that will tell you if a computer (host) is reachable and alive. It works just like pings in submarines (think back to the movie The Hunt for Red October). It sends out a packet that asks the target computer to send it back a message saying it’s actually there. It also tells you how long it took the message to get back from the target computer and if any of the packets were lost. This is very useful when you need to see if a server/computer is running. You can also use it to diagnose latency and/or packet loss issues.

This example pings www.weber.edu. Feel free to ping your own university or Web site of your choice. Instead of using www.weber.edu, please use www.[YourUniversity].edu. Time stamps will also be included at the end of each example.

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(the computer that connects you to the Internet). Network administrators use ipconfig to diagnose a variety of issues like network outages, faulty hardware, and misconfigured computers. a. Click Start. b. In the search box, type cmd c. Press Enter. d. Type ping www.weber.edu e. Press Enter. (This will ping www.weber.edu%20 with four packets.) f. Type time g. Press Enter twice. h. Take a screenshot. i. Type ipconfig j. Press Enter. (This will display basic network configuration information for adapters on your computer.) k. Type ipconfig /all l. Press Enter. (This will display extended network configuration information for all adapters on your computer.) m. Take a screenshot.

All of the above are tasks to be performed.

(LO: 5, Learning Outcome: Compare and contrast different ways of connecting to the Internet, A ACSB: Information Technology) n. What is the Default Gateway?

Student answers will vary. (LO: 5, Learning Outcome: Compare and contrast different ways of connecting to the Internet, AAC SB: Information Technology) o. What do DNS servers do?

The purpose of DNS servers is to maintain a directory of domain names and translate them to Internet Protocol (IP) addresses. (LO: 5, Learning Outcome: Compare and contrast different ways of connecting to the Internet, AACSB: Information Technology) p. Why would you experience packet loss?

Packet loss is either caused by errors in data transmission, typically across wireless networks or network congestion. (LO: 5, Learning Outcome: Compare and contrast different ways of connecting to the Internet, AACSB: Information Technology)

Chapter 7 AE7-1.

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how much to increase pay in the next year. Assume you are given a list of the departments in your company, along with the average salary for employees in that department for major companies in your industry. Additionally, you are given the names and salaries of 10 people in each of three departments in your company.

Assume you have been asked to create a spreadsheet that shows the names of the 10 employees in each department, their current salary, the difference between their current salary and the industry average salary for their department, and the percent their salary would need to be increased to meet the industry average. Your spreadsheet should also compute the average increase needed to meet the industry average for each department and the average increase, company-wide, to meet industry averages. a. Use the data in the file Ch07Ex01_U11e.docx and create the spreadsheet.

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(LO: 3, Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: Information Technology) b. How can you use this analysis to contribute to the employee salary decision?

Based on this data, what conclusions can you make?

It may be valuable to know how our employee salaries compare with the average salaries in similar settings in our industry. Presumably, if our employee salaries are considerably lower than those across the industry, then we will be at risk of losing those employees to our competitors and we might experience high employee turnover. On the other hand, if our salaries are higher than industry averages for similar positions, then we should not expect high turnover and perhaps could lure some top candidates away from our competitors to join our organization.

The above spreadsheet shows that in the Accounting Department, five employees are earning salaries below the industry average; in Marketing, eight employees are earning salaries below the industry average; and in IS, eight employees are below the industry average.

Some care should be taken not to put too much weight on these averages, however. Averages can be distorted easily with just a few outlier values. A better comparison might be to median industry salaries. In addition, we should be sure that these comparisons are for similar firms of similar size in similar regions of the country. It is not meaningful to compare companies that are very different in terms of size or that are based in very different geographical settings, even though they are in the same industry. In addition, we have people within departments that are quite different in terms of skill, managerial level, experience, seniority, etc.

Therefore, departmental industry averages cannot be meaningfully applied to every position within the department.

The industry average information provided in this problem illustrates information that may be accurate, has some relevance to the salary decision, but is not sufficient to fully inform the salary decision. (LO: 3, Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: Information Technology) c. Suppose other team members want to use your spreadsheet. Name three ways you can share it with them and describe the advantages and disadvantages of each.

The spreadsheet could be sent to each team member via email. This is simple and convenient, but there is no assurance that the attachment will actually be opened and read. In addition, there is no control over changes that might be made by the other team members. The spreadsheet could be sent to a shared file server so that all team members could access the file. This option is nice because there is a

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known location where the file is stored. However, there is no control over the content of the file and the changes that might be made by the team members.

Another option is to use Google Drive or Windows One Drive to make the file available to the team members. These systems provide version management, so that changes made by team members are tracked and coordinated. (L O: 6, Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: Information Technology) AE7-2.

Suppose you have been asked to assist in the managerial decision about how much to increase pay in the next year. Specifically, you are tasked to determine if there are significant salary differences among departments in your company.

You are given an Access database with a table of employee data with the following structure: EMPLOYEE (Name, Department, Specialty, Salary) where Name is the name of an employee who works in a department, Department is the department name, Specialty is the name of the employee’s primary skill, and Salary is the employee’s current salary. Assume that no two employees have the same name. You have been asked to answer the following queries: (1) List the names, department and salary of all employees earning more than $100,000.

(2) List the names and specialties of all employees in the Marketing department.

(3) Compute the average, maximum, and minimum salary of employees in your company.

(4) Compute the average, minimum, and maximum salary of employees in the Marketing department.

(5) Compute the average, minimum, and maximum salary of employees in the Information Systems department.

(6) Extra Credit: Compute the average salary for employees in every department. Use Group By.

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a. Design and run Access queries to obtain the answers to these questions, using the data in Ch07Ex02_U11e.accdb.

Question 1:

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Question 2:

Question 3:

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Question 4:

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Question 5:

Question 6 (Extra Credit):

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(LO: 3, Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: Information Technology) b. Explain how the data in your answer contributes to the salary increase decision.

The query-based reports shown above give a little more insight into salaries within the three departments. IS and Marketing have the highest average salaries.

The range within each of these two departments is also shown. It is difficult, however, to assess whether these salaries are appropriate for our company without knowing more facts, such as average or median salary for similar job categories in our region. (LO: 3, Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: Information Technology) c. Suppose other team members want to use your Access application. Name three other ways you can share it with them, and describe the advantages and disadvantages of each.

The database could be uploaded to a shared file server using ftp. With the database stored in a known, accessible location, all team members could use it.

The problem with this approach is that if the team members wanted to modify the database, it is possible for them to interfere with each other’s work because there will be no version control. Additional options are Windows One Drive and Google Drive. The team members can be invited to a workspace where the database is stored, use it, and modify it with version management. Another option is to use Microsoft SharePoint. SharePoint can be used to give all team members access to the database, but can set access control so that only authorized users can make changes. SharePoint can also set a workflow with reminders to users to review the database in a timely way. The disadvantage of SharePoint is that it is a sophisticated software product that needs to be professionally administered. (LO: 6, Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: Information Technology)

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Chapter 8 AE8-1.

Suppose your manager asks you to create a spreadsheet to compute a production schedule. Your schedule should stipulate a production quantity for seven products that is based on sales projections made by three regional managers at your company’s three sales regions.

a. Create a separate worksheet for each sales region. Use the data in the Word file Ch08Ex01_U11e.docx. This file contains each manager’s monthly sales projections for the past year, actual sales results for those same months, and projections for sales for each month in the coming quarter.

(LO: 2, Learning Outcome: Discuss the role of information systems in supporting business processes, AAC SB: Information Technology) b. Create a separate worksheet for each manager’s data. Import the data from Word into Excel.

(Similar worksheets are created for Regions 2 and 3.)

(LO: 2, Learning Outcome: Discuss the role of information systems in supporting business processes, AAC SB: Information Technology) c. On each of the worksheets, use the data from the prior four quarters to compute

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the discrepancy between the actual sales and the sale projections. This discrepancy can be computed in several ways: You could calculate an overall average, or you could calculate an average per quarter or per month. You could also weight recent discrepancies more heavily than earlier ones. Choose a method that you think is most appropriate. Explain why you chose the method you did.

The worksheet above used an average discrepancy for the previous quarter. This assumption was used because the previous quarter’s results were considered to be the best predictor of the current quarter’s performance. (LO: 2, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Information Technology) d. Modify your worksheets to use the discrepancy factors to compute an adjusted forecast for the coming quarter. Thus, each of your spreadsheets will show the raw forecast and the adjusted forecast for each month in the coming quarter.

This information is shown in the right-most three columns in the part b spreadsheet. (LO: 2, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Information Technology) e. Create a fourth worksheet that totals sales projections for all of the regions. Show both the unadjusted forecast and the adjusted forecast for each region and for the company overall. Show month and quarter totals.

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(LO: 2, Learning Outcome: Discuss the role of information systems in supporting business processes, AAC SB: Information Technology) f. Create a bar graph showing total monthly production. Display the unadjusted and adjusted forecasts using different colored bars.

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Total Forecast Sales Adj Sales Forecast

Jan- Feb- Mar- Jan- Feb- Mar- Jan- Feb- Mar19 19 18 19 19 19 19 19 19 Region 1

Region 2

Region 3

(LO: 2, Learning Outcome: Discuss the role of information systems in supporting business processes, AAC SB: Information Technology)

AE8-2.

Figure AE-8 is a sample bill of materials, a form that shows the components and parts used to construct a product. In this example, the product is a child’s wagon. Such bills of materials are an essential part of manufacturing functional applications as well as ERP applications.

This particular example is a form produced using Microsoft Access. Producing such a form is a bit tricky, so this exercise will guide you through the steps required. You can then apply what you learn to produce a similar report. You can also use Access to experiment on extensions of this form.

a. Create a table named PART with columns PartNumber, Level, Description, QuantityRequired, and PartOf. Description and Level should be text, PartNumber should be AutoNumber, and QuantityRequired and PartOf should be numeric, long integer. Add the PART data in Figure AE-8 to your table.

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(LO: 5, Learning Outcome: Discuss the role of information systems in supporting business processes, AAC SB: Information Technology) b. Create a query that has all columns of PART. Restrict the view to rows having a value of 1 for Level. Name your query Level1.

(LO: 5, Learning Outcome: Discuss the role of information systems in supporting business processes, AAC SB: Information Technology) c. Create two more queries that are restricted to rows having values of 2 or 3 for Level. Name your queries Level2 and Level3, respectively.

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(LO: 5, Learning Outcome: Discuss the role of information systems in supporting business processes, AAC SB: Information Technology) d. Create a form that contains PartNumber, Level, and Description from Level1.

You can use a wizard for this if you want. Name the form Bill of Materials.

(LO: 5, Learning Outcome: Discuss the role of information systems in supporting business processes, AAC SB: Information Technology) e. Select the Subform/Subreport tool in the Controls section of the DESIGN ribbon and create a subform in your form in part d. Set the data on this form to be all of the columns of Level2. After you have created the subform, ensure that the Link Child Fields property is set to PartOf and that the Link Master Fields property is set to PartNumber. Close the Bill of Materials form.

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(LO: 5, Learning Outcome: Discuss the role of information systems in supporting business processes, AAC SB: Information Technology) f. Open the subform created in part e and create a subform on it using the SubformSubreport control. Set the data on this subform to be all of the columns of Level3. After you have created the subform, ensure that the Link Child Fields property is set to PartOf and that the Link Master Fields property is set to PartNumber. Close the Bill of Materials form.

(LO: 5, Learning Outcome: Discuss the role of information systems in supporting business processes, AAC SB: Information Technology) g. Open the Bill of Materials form. It should appear as in Figure AE-8. Open and close the form and add new data. Using this form, add sample BOM data for a product of your own choosing.

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(LO: 5, Learning Outcome: Discuss the role of information systems in supporting business processes, AAC SB: Information Technology) h. Following the process similar to that just described, create a Bill of Materials Report that lists the data for all of your products.

(Partial report) (LO: 5, Learning Outcome: Discuss the role of information systems in supporting business processes, AAC SB: Information Technology) i. (Optional, challenging extension) Each part in the BOM in Figure AE-8 can be Copyright © 2020 Pearson Education, Inc.

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used in at most one assembly (there is space to show just one PartOf value). You can change your design to allow a part to be used in more than one assembly as follows. First, remove PartOf from PART. Next, create a second table that has two columns: AssemblyPartNumber and ComponentPartNumber. The first contains a part number of an assembly and the second a part number of a component. Every component of a part will have a row in this table. Extend the views described above to use this second table and to produce a display similar to Figure AE-8.

The trick is setting up the queries at each level to include the proper keys, and then using those keys in the link master and link child properties of the subform controls. The tables, queries, and form for this version follow.

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(LO: 5, Learning Outcome: Discuss the role of information systems in supporting business processes, AAC SB: Information Technology)

Chapter 9 AE9-1.

Suppose you are the manager of social media policy for an organization having 1,000 employees with seven different offices throughout North America. Further suppose that the CEO has requested a report showing a list of all of the employees’ blogs, the employees’ job titles and departments, and the purpose and URL of each blog. She doesn’t want to control employees; she just wants to know where they are.

a. Explain the conditions under which using a spreadsheet to track this data would be appropriate.

A spreadsheet would be appropriate if the data was expected to remain very stable. Employees would not change job titles or departments and the blogs that are tracked for each employee do not change. Since these conditions are unlikely, the spreadsheet is not the best choice for this purpose. (LO: 2, Learning Outcome: Discuss the role of information systems in supporting business processes, AACS B: Information Technology) b. Suppose that employees can have more than one blog, but that a blog is only supported by a single employee. Further suppose that you decide that you need to

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track the dates on which a blog was first created and the date of the last posting if the blog is no longer active. Design a database for these requirements.

(LO: 2, Learning Outcome: Discuss the role of information systems in supporting business processes, AAC SB: Information Technology) c. Fill your database with the sample data in the Word document Ch09Ex01_U11e.docx. EmployeeID is a unique identifier; a null value for EndDate means the blog is still active. Do not retype this data; import it instead.

You can either import it several times, each time to a different table, or you can import it once and use queries to fill the tables.

(LO: 2, Learning Outcome: Discuss the role of information systems in supporting business processes, AAC SB: Information Technology)

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d. Create a report that you believe is suitable for the C EO’s needs. Justify the content and structure of your report.

The report example above organizes the blogs by department and by date started within department. This organization will give the CEO a quick view of how each department is using blogs, the blog purposes, and the dates the blogs were created (and ended, if relevant). (LO: 2, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Information Technology) AE9-2.

Assume you have been given the task of compiling evaluations that your company’s purchasing agents make of their vendors. Each month, every purchasing agent evaluates all of the vendors that it has worked with in the past month on three factors: price, quality, and responsiveness. Assume the ratings are from 1 to 5, with 5 being the best. Because your company has hundreds of vendors and dozens of purchasing agents, you decide to use Access to compile the results. a. Create a database with three tables: VENDOR (VendorNumber, Name, Contact), PURCHASER (EmpNumber, Name, Email), and RATING (EmpNumber, VendorNumber, Month, Year, PriceRating, QualityRating, ResponsivenessRating). Assume that VendorNumber and EmpNumber are the keys of VENDOR and PURCHASER, respectively. Decide what you think is the appropriate key for RATING.

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(LO: 2, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Information Technology) b. Create appropriate relationships.

(LO: 2, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Information Technology) c. Import the data in the Excel file Ch09Ex02_U11e.xlsx. Note that data for Vendor, Purchaser, and Rating are stored in three separate worksheets.

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(LO: 2, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Information Technology) d. Create a query that shows the names of all vendors and their average scores.

(LO: 2, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Information Technology) e. Create a query that shows the names of all employees and their averages scores.

Hint: In this and in part f, you will need to use the Group By function in your query.

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(LO: 2, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Information Technology) f. Create a parameterized query that you can use to obtain the minimum, maximum, and average ratings on each criterion for a particular vendor. Assume you will enter VendorName as the parameter.

(LO: 2, Learning Outcome: Discuss the role of information systems in supporting business processes, AAC SB: Information Technology) g. Using the information created by your queries, what conclusions can you make about vendors or purchasers?

Cape George Trading received an average rating of 5 on all three dimensions, indicating that our purchasing agents think this vendor is superior on price, quality, and responsiveness. Where Is It? Shipping is considered very good on price and responsiveness, but has a rather low average quality rating. The poorest vendor appears to be Club Mambo. The other vendors received a mix of high and moderate ratings from the purchasing agents. The information about the purchasing agents does not lend itself to many conclusions, other than Amber Adams gave the highest average rating on price, but the lowest average rating on quality and responsiveness. (LO: 2, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Information Technology)

Chapter 10 Adblock Plus® is a Web browser add-on that can block advertisements. It can also block trackers and domains that are known sources of malware. In addition, it allows you to create custom filters that can block specific Web content. Adblock Plus can make Web surfing safer and more enjoyable by eliminating annoying ads.

AE10-1.

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In this project, you will compare the same Web site in two browsers. You will install Adblock Plus in Firefox. You’ll then compare the filtered Web site to an unfiltered version in Google Chrome.

(1) Open Google Chrome and browse to www.amazon.com.

(2) Fill the right-hand side of your screen with your Google Chrome browser by pressing the Window key and right arrow ( + →).

(3) Open Firefox and browse to www.amazon.com.

(4) Fill the left-hand side of your screen with your Firefox browser by pressing the Window key and left arrow ( + ). You should now have two browsers displaying side by side.

(5) In your Firefox browser, type your name into the Amazon search box, but don’t press Enter.

(6) Take a screenshot. (You can take a screenshot of your entire desktop by pressing Ctrl + Print Screen.)

(7) Click the Firefox menu, then click Add-ons.

(8) Click Get Add-ons.

(9) In the search box, enter Adblock Plus.

(10) Press Enter.

(11) Click Install for the latest version of Adblock Plus.

(12) Click Restart now.

(13) Refresh the Amazon Web page in your Firefox browser. (You can press F5 or the Refresh button.)

(14) Enter your name in the Amazon search bar in your Firefox browser, but don’t press Enter. (Note the reduced number of trackers and ads along the righthand side when compared to the exact same page in your Google Chrome browser.)

(15) Take a screenshot of your entire desktop.

(16) Select another Web site that you know has advertising and visit it in both browsers. (Major news Web sites typically have lots of ads and trackers.)

(17) Take another screenshot of your entire desktop, showing the difference in browsers. a. Would online retailers dislike Adblock Plus? Why? Online retailers would dislike Adblock Plus because their ads would be blocked.

Also, the ads they place on their Web sites would not be seen by customers. (LO: 6, Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: Information Technology) b. Some Web sites pay for their operations through ad revenue. Could Adblock Plus put them out of business?

Companies can earn money from their web sites by receiving revenue when web site visitors click on ads. Adblock prevents users from seeing, and clicking on, ads placed within Web pages. If enough Web site users employ Adblock to block ads,

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then companies depending on revenue from ads could find it difficult to survive.

(LO: 6, Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: Information Technology) c. Can you make exceptions (i.e., not block content) for specific Web sites?

Yes, you can make exceptions for specific Web sites. There is a “whitelist” function in all of the major adblocking applications that permits ads to be seen on designated Web sites. (LO: 6, Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: Information Technology)

AE10-2.

Most users want an easy way to identify which Web sites are trustworthy and which Web sites they should avoid. Web of Trust® (WOT) provides a “scorecard” for each Web site you visit. This scorecard gives you a summary of four ratings: trustworthiness, vendor reliability, privacy, and child safety. The values shown on the scorecard are based on ratings from members of the W OT community who have contributed their evaluations of that Web site.

After installing WO T, you will notice a slight addition to the search results from major search engines (e.g., Google, Bing, and Yahoo!). You will see a WOT evaluation at the end of each search result. This evaluation provides a scorecard for each Web site displayed in the search results. The WOT evaluation can serve as a quick visual indicator of Web sites to avoid. a. Open Firefox, click the Firefox menu, and click Add-ons. b. Search for WOT. c. Click Install (WOT) and Restart now. (You should see a small flag in the navigation bar.) d. Browse to www.google.com, and search for your full name. e. Take a screenshot of the results. (You can take a screenshot by pressing Alt + Print Screen. Notice the WOT icons next to each of the search results.) f. Click on the WOT icon for one of the search results. (This will show you the W OT scorecard for that specific Web site.) g. Using Google.com, search for warez keygen. (You should get a few Web sites with red circles, meaning they have a poor reputation.) h. Click on the WOT icon for one of the Web site’s WOT scorecard. i. Take a screenshot.

All of the above are tasks to be performed. j. Describe how WOT gets the values for their Web site scorecards.

Ratings come from the user community, who provide ratings for sites based on their own experiences with the site. (LO: 5, Learning Outcome: Describe different methods of managing IS security, AACSB: Information Technology) Copyright © 2020 Pearson Education, Inc.

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k. Describe how you can evaluate Web sites using W OT. The colored icon indicates the site’s reputation based on the user community’s ratings. (LO: 5, Learning Outcome: Describe different methods of managing IS security, AACSB: Information Technology) l. Explain how WOT can protect users when surfing the Internet.

If a user browses to a Web site and the rating symbol indicates a questionable reputation, the user has the option of leaving the site rather than blindly going in without knowledge of the site’s reputation. (LO: 5, Learning Outcome: Describe different methods of managing IS security, AACS B: Information Technology) m. Uninstall WOT from your web browser.

A task to be performed.

AE10-3. Recuva® is a program by Piriform® that recovers previously deleted files.

Recuva scans the entire empty memory space for possible files to recover. Most users erroneously believe that data is gone forever when they empty it from the Recycle Bin. This is incorrect. It merely marks the space as available to be written over if another file needs to be stored. Your operating system writes over these available spaces and subsequently “damages” the previously deleted file.

Recovery software can easily recover the undamaged part of the file if it knows how the file is structured.

In this project you will recover a file you delete from your USB drive. You can also run Recuva on your main hard drive if you accidently lose an important file. a. Download and install Recuva from www.recuva.com/download. b. If the program doesn’t automatically open, you can click on the newly created desktop icon or click Start and search for Recuva. c. Insert a USB drive into your computer. d. Select your USB drive as the drive from which you want to recover files. (You can always scan your C: drive. Your USB will finish much quicker than your C: drive.) e. Click Scan. f. After the scan completes, click on any of the recovered files listed with a graphic extension (e.g., .jpg or .bmp) until you see a picture on the right-hand side of the screen. (If you don’t see an image file, you can put a file on your U SB, delete it, and then run the scan again. Remember the name of the file you delete so you can easily find it after you recover it.) g. Click on the Info tab to see the details for the file and take a screenshot. h. Check one of the recoverable graphic files. (Even some of the “unrecoverable” files are actually recoverable.) i. Click Recover and save it to your desktop. j. Open the picture you recovered, and take a screenshot.

All of the above are tasks to be performed.

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k. Would Recuva work on your cell phone if it were connected to your computer?

Recuva can recover files from memory cards used in cell phones. l. What effect does the condition of the file have on its ability to be recovered?

The operating system may have overwritten parts of the file. If much of the file has been overwritten then the file will not be recoverable.

(LO: 5, Learning Outcome: Describe different methods of managing IS security, AA CSB: Information Technology)

Chapter 11 AE11-1.

Suppose you have just been appointed manager of a help desk with an IS department. You have been there for just a week, and you are amazed to find only limited information to help you manage your employees. In fact, the only data kept concerns the processing of particular issues, called Tickets. The following data are kept: Ticket#, Date_Submitted, Date_Opened, Date_Closed, Type (new or repeat), Reporting_Employee_Name, Reporting_Employee_Division, Technician_Name, Problem_System, and Problem_Description. You can find sample Ticket data in the Excel file Ch11Ex01_U11e.xlsx.

As a manager, you need information that will help you manage. Specifically, you need information that will help you learn who are your best- and worstperforming technicians, how different systems compare in terms of number of problems reported and the time required to fix those problems, how different divisions compare in terms of problems reported and the time required to fix them, which technicians are the best and worst at solving problems with particular systems, and which technicians are best and worst at solving problems from particular divisions. a. Use either Access or Excel, or a combination of the two, to produce the information you need using the data in the Excel file Ch11Ex01_U11e.xlsx. In your answer, you may use queries, formulas, reports, forms, graphs, pivot tables, pivot charts, or any other type of Access or Excel display. Choose the best display for the type of information you are producing.

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The above sample report shows the type of information that can be developed if the raw data is inserted into a database. This report has been grouped by technician and sorted by problem type. A count of the number of problems handled per technician was inserted in the report. In addition, the duration of each problem ticket was computed and the average problem duration was computed.

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Similar reports could be created grouped by problem system, by problem description, and problem type. (LO: 1, Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: Information Technology) b. Explain how you would use these different types of information to manage your department.

The sample report included above would help the manager look for differences that make a difference. For example, the report shows that Anita Jenkins has handled the fewest number of problems during the month and has the longest average duration. Is this fact attributable to skills that need upgrading, or due to the fact that these problems are more complex than those assigned, say, to Rob Owens? (LO: 1, Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: Information Technology) c. Specify any additional information that you would like to have produced from this data to help you manage your department.

Students’ ideas will vary. One item that would have been helpful would have been the technician’s entry of what was done to resolve the problem, so that fixes that were ineffective could be identified and more effective fixes could be developed.

(LO: 1, Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: Information Technology) d. Use either Access or Excel or a combination to produce the information in part c.

Student answers will vary depending on the answer to part c. (LO: 1, Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: Information Technology)

Chapter 12 AE12-1. In this exercise, you will use Visio to create process diagrams in BPMN notation. a. Download the Visio File Ch12Ex01_U11e.vsd from this text’s support site. Open the file and familiarize yourself with this diagram, which is a copy of Figure 12-7. b. Notice that Visio includes the BPMN shapes. Go to the Shape organizer to see other types of flowchart shapes that Visio supports. c. Create a new Visio diagram. Add BPMN shapes that you may want to use. d. Model the customer process “Respond to Quotation.” Make sure your process accepts the inputs shown in Ch12Ex01_U11e.vsd and produces the outputs shown in that figure. Create your process so that your company checks prices and

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delivery dates and requests changes, if appropriate. Include other logic, if necessary.

(LO: 3, Learning Outcome: Discuss the role of information systems in supporting business processes, AAC SB: Information Technology) e. Show your work by saving your document as a PDF file.

No specific answer—a task to be performed.

AE12-2.

Suppose you are given the task of comparing the labor costs of meetings for systems development projects to budgets. Download the Word file Ch12Ex02_U11e.docx and the Excel file with the same name. The Word file has records of meeting dates, times, and attendees. The document was created from informal notes taken at the meetings. The Excel file has the project budgets as well as labor costs for different categories of employees.

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Assume your company uses the traditional systems-first process illustrated in Figure 12-12. Further assume that each SDLC step requires two types of meetings: Working meetings involve users, systems analysts, programmers, and PQA test engineers. Review meetings involve all of those people, plus level-1 and level-2 managers of both user departments and the IS department. a. Using either Access or Excel, whichever you think is better suited to the task, import the Word data to a work file and compute the total labor for each type of employee for each meeting.

(LO: 5, Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: Information Technology) b. Using the file you created in part a, compute the total labor for each type of employee for each phase of the project.

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(LO: 5, Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: Information Technology) c. Combine your answer in part b with the data in the Excel file Ch12Ex02_U11e.xlsx to compute the total cost of meetings of each phase of the project.

(LO: 5, Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: Information Technology) d. Use a graphic chart of the type you think best to show the differences from meeting cost and budget.

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(LO: 5, Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: Information Technology) e. Comment on your choice of Excel or Access for your work file. If you were to do this exercise over, would you use that same tool again? Why or why not?

I chose to use Excel for this problem. It is ideally suited to calculation-oriented situations such as this. I would use it again rather than use Access because of the ease of setting up the necessary calculations and the graphing capability. (LO: 5, Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: Information Technology)

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1. The Importance of MIS LEARNING OBJECTIVES Q1-1 Explain why the Introduction to MIS class is the most important class in the business school.

Q1-2 Explain how M IS will affect you.

Q1-3 Define what is meant by “M IS.” Q1-4 Explain how to use the five-component model.

Q1-5 Explain what is meant by “information.”

Q1-6 Describe necessary data characteristics.

Q1-7 Anticipate the technology of the year 2029.

CHAPTER OUTLINE Q1-1 • • • • • • Q1-2 • •

Why is Introduction to MIS the most important class in the business school?

The Digital Revolution Evolving capabilities Moore’s Law Metcalfe’s Law Other forces pushing digital change This is the most important class in the school of business How will MIS affect me?

How can I attain job security?

How can Intro to M IS help you learn nonroutine skills? o Abstract Reasoning o Systems Thinking o Collaboration o Ability to Experiment o Jobs • What is the bottom line?

Q1-3 What is M IS? • Components of an information system • Management and use of information systems • Achieving strategies Q1-4 How can you use the five-component model?

• The most important component—You • All components must work • High-tech versus low-tech information systems • Understanding the scope of new information systems • Components ordered by difficulty and disruption Q1-5 What is information?

• Definitions vary • Where is information?

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What are necessary data characteristics?

Accurate Timely Relevant Just barely sufficient Worth its cost 2029?

Learning Catalytics is a “bring your own device” student engagement, assessment, and classroom intelligence system. It allows instructors to engage students in class with realtime diagnostics. Students can use any modern, web-enabled device (smartphone, tablet, or laptop) to access it. For more information on using Learning Catalytics in your course, contact your Pearson Representative.

SECURITY GUIDE Passwords and Password Etiquette 1. Here is a line from Shakespeare’s Macbeth: “Tomorrow and tomorrow and tomorrow, creeps in its petty pace.” Explain how to use these lines to create a password. How could you add numbers and special characters to the password in a way that you will be able to remember?

There are several correct ways to create a password from this line. One way might be to take the first letters from each word. The password would then be “tatatciipp.” You could then capitalize a couple of the letters and add in a special character or numbers.

The resulting password could be “T&2morrow&tciiPP.” This would be a very secure password.

2. List two different phrases that you can use to create a strong password. Show the password created by each.

There will be many correct answers to this question. Using a passphrase to create a password is done by using the first letters in the phrase, then changing some of the letters by substituting in special characters, numbers, or changes of case. For example, the phrase, “I never count my chickens before the eggs have hatched!” could create the password “iNcmCHKNSb4t3ggsHH!” This would be a great password.

3. One of the problems of life in the cyberworld is that we all are required to have multiple passwords—one for work or school, one for bank accounts, another for eBay or other auction sites, and so forth. Of course, it is better to use different passwords for each. But in that case, you have to remember three or four different passwords.

Think of different phrases you can use to create a memorable, strong password for each of these different accounts. Relate the phrase to the purpose of the account.

Show the passwords for each.

There will be many correct answers to this question. For example, a passphrase for a university account may look something like, “I will graduate from state university

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before 2020 or bust!” This could yield a password that would look like “IwgfSUb42020ORB!” 4. Explain proper behavior when you are using your computer and you need to enter, for some valid reason, another person’s password.

In this case, say to the other person, “We need your password,” and then get out of your chair, offer your keyboard to the other person, and look away while she enters the password. Among professionals working in organizations that take security seriously, this little “do-si-do” move—one person getting out of the way so another person can enter her password—is common and accepted.

5. Explain proper behavior when someone else is using her computer and that person needs to enter, for some valid reason, your password.

If someone asks for your password, do not give it out. Instead, get up, go over to that person’s machine, and enter your own password yourself. Stay present while your password is in use, and ensure that your account is logged out at the end of the activity. No one should mind or be offended in any way when you do this. It is the mark of a professional.

SO WHAT? A is for Alphabet 1. The feature identifies the Internet as being a catalyst for the Information Age. What other innovations have contributed to this era of unprecedented access to information via computers?

Other innovations that have contributed to the information age include: increasing Internet speeds, the ubiquity of Internet access, advances in technology such as smartphones, tablets and other mobile devices, increases in computing power allowing different types of processor-intensive functions to be carried out by basic systems, etc.

2. Think about your daily use of phones, tablets, and traditional desktop/laptop computers. How many searches do you perform a day? What types of things do you search for on the Internet? Do you use Google for these searches? If not, what search engine do you use? Why do you use this search engine?

Students’ search activities will vary but the vast majority will report that they use Google as their default search engine. Students who do not use Google may report that they simply use the default search engine selected by their browser (e.g., Firefox defaults to using Yahoo’s search engine). It will be interesting to learn about the reasons some students may actively choose to not use Google (some privacy-minded individuals avoid using Google services in light of claims that Google regularly commits invasions of privacy).

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3. Conduct an Internet search to find a project or product offered by Alphabet which you had not heard about before reading this article. Are you surprised at the diversity of the company and its projects/research initiatives?

Students will find a variety of examples as a result of their respective searches.

Instructors should carry out a brief search of their own prior to having a discussion as the products and services offered by Alphabet are dynamic and will change over time.

4. What new technological innovation do you think will drive the next great era in humanity? What do you think the defining elements of this era will be?

Many technology experts predict that the future of computers will center on machineto-machine interaction. The Internet of Things promises to change how we make decisions as more and more sensors are deployed and data analytics tools improve.

Automation will also likely play a prominent role in many industries, especially manufacturing. Recent statistics have identified that roughly 10% of the jobs that can be automated have been automated, and that this percentage will increase over time as technology costs drop and various industries learn how to deploy new technologies more effectively.

COLLABORATION EXERCISE 1 This chapter discussed why collaboration is a key skill for maintaining job security. In this exercise, you will build a collaboration IS and then use that IS to answer the questions below in a collaborative fashion. You might want to read the four questions below before you build your IS. Until you answer question 1-4, you’ll have to make do with email or face-to-face meeting. Once you’ve answered that question, use your communication method to answer question 1-5. Once you’ve answered question 1-5, use your communication method and your content-sharing method to answer question 1-6. Then use the full IS to answer questions 1-7 and 1-8.

1-4 Build a communication method: a. Meet with your team and decide how you want to meet in the future.

Student decisions will vary. (LO: 2, Learning Outcome: Explain how I S can enhance systems of collaboration and teamwork, AACSB: Interpersonal Relations and Teamwork) b. From the discussion in step a, list the requirements for your communication system.

Student answers will vary. Expect students to include requirements in terms of ease of use, availability, and features that support the way the team wants to work.

(LO: 2, Learning Outcome: Explain how IS can enhance systems of collaboration and teamwork, AACSB: Interpersonal Relations and Teamwork) c. Select and implement a communication tool. It could be Skype, Google Hangouts, or Skype for Business.

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Student choices will vary depending on decision from step b above. (LO: 2, Learning Outcome: Explain how IS can enhance systems of collaboration and teamwork, AACSB: Interpersonal Relations and Teamwork) d. Write procedures for the team to use when utilizing your new communication tool.

Student answers will vary. Look for students to include procedures regarding meeting notifications, tardiness and missing meetings, and designating a team member to send out reminders. (LO: 2, Learning Outcome: Explain how I S can enhance systems of collaboration and teamwork, AACSB: Interpersonal Relations and Teamwork) 1-5 Build a content sharing method: a. Meet with your team and decide the types of content that you will be creating.

Student answers will vary. (LO: 2, Learning Outcome: Explain how IS can enhance systems of collaboration and teamwork, AACSB: Interpersonal Relations and Teamwork) b. Decide as a team whether you want to process your content using desktop applications or cloud-based applications. Choose the applications you want to use.

Student answers will vary. (LO: 2, Learning Outcome: Explain how IS can enhance systems of collaboration and teamwork, AACSB: Interpersonal Relations and Teamwork) c. Decide as a team the server you will use to share your content. You can use Google Drive, Microsoft OneDrive, Microsoft SharePoint, or some other server.

Student answers will vary. Student decision will depend in part on the availability of tools, such as SharePoint, in their environment. (LO: 2, Learning Outcome: Explain how IS can enhance systems of collaboration and teamwork, AACSB: Interpersonal Relations and Teamwork) d. Implement your content-sharing server.

No specific answer; a task to be performed by students. (LO: 2, Learning Outcome: Explain how I S can enhance systems of collaboration and teamwork, A ACSB: Interpersonal Relations and Teamwork) e. Write procedures for the team to use when sharing content.

Student answers will vary. Look for students to include procedures regarding responding to requests to edit, timeliness of responses, and expectations for participating in content review. (LO: 2, Learning Outcome: Explain how I S can enhance systems of collaboration and teamwork, AACSB: Interpersonal Relations and Teamwork) 1-6 Build a task management system: a. Meet with your team and decide how you want to manage tasks. Determine the

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task data that you want to store on your task list.

Student answers will vary. Check to see that the task data listed by the team is complete, and includes at least: a task name, task description, task assignment, task due date, task check-out and check-in, and priority. (LO: 2, Learning Outcome: Explain how I S can enhance systems of collaboration and teamwork, A ACSB: Interpersonal Relations and Teamwork) b. Decide as a team the tool and server you will use for sharing your tasks. You can use Google Drive, Microsoft OneDrive, Microsoft SharePoint, or some other facility . i. Student decision will depend in part on the availability of tools, such as SharePoint, in their environment. (LO: 2, Learning Outcome: Explain how I S can enhance systems of collaboration and teamwork, AACSB: Interpersonal Relations and Teamwork) c. Implement the tool and server in step a.

No specific answer; a task to be performed by students. (LO: 2, Learning Outcome: Explain how I S can enhance systems of collaboration and teamwork, A ACSB: Interpersonal Relations and Teamwork) d. Write procedures for the team to use managing tasks.

Student answers will vary. Look for students to include procedures regarding task creation, task assignment, priority setting, check-out and check-in, and meeting deadlines. (LO: 2, Learning Outcome: Explain how IS can enhance systems of collaboration and teamwork, AACSB: Interpersonal Relations and Teamwork) 1-7 Nonroutine skills: a. Define abstract reasoning and explain why it is an important skill for business professionals. Give three other examples of abstractions commonly used in business.

Abstract reasoning is the ability to construct and use a model or representation.

Being able to construct a model or representation of a complex situation through abstract reasoning is an important skill for business professionals, who frequently must make decisions under uncertain and highly complex situations. This is a highly marketable skill. Student answers will vary, but some examples of abstractions used in business include a list of items in inventory and their quantity on hand, project plans, budgets, and business process models. (LO: 2, Learning Outcome: Describe the components of an information system (IS), AACSB: Reflective Thinking) b. Define systems thinking and explain why it is an important skill for business professionals. Give three other examples of the use of systems thinking with regard to the consequences of Bell’s Law, Moore’s Law, or Metcalf’s Law. Systems thinking involves identifying and modeling the components of a system and connecting the inputs and outputs among those components into a sensible

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whole, one that explains the phenomenon observed. This is an important skill because business people must be able to identify and understand the relationships among the elements involved in a complex situation. Regarding examples, student answers will vary. Bell’s Law, for example, states that digital devices will evolve so quickly that they will enable new platforms, programming environments, industries, networks, and information systems every 10 years. Right now, smartphones and tablet devices are predominant platforms for consumers, but how will that evolve and what does that mean for current smartphone/tablet providers? Will smart watches finally catch on, or some other “wearable” product? (LO: 2, Learning Outcome: Describe the components of an information system (I S), AACSB: Reflective Thinking) c. Define collaboration and explain why it is an important skill for business professionals. Is the work product of your team better than any one of you could have done separately? If not, your collaboration is ineffective. If that is the case, explain why.

Collaboration is the ability to work productively with others when developing ideas and plans. A good collaboration results in a final work product that is superior to one that would be developed by a person working alone. Regarding student teams, the students answers will vary. It is likely that students have not spent enough time and effort reviewing and evaluating each other’s ideas and improving the work product. Often student groups are satisfied with whatever is contributed and little attention is paid to critique and refinement. (LO: 2, Learning Outcome: Explain how I S can enhance systems of collaboration and teamwork, A ACSB: Interpersonal Relations and Teamwork) d. Define experimentation and explain why it is an important skill for business professionals. How does the fear of failure influence your willingness to engage in experimentation?

Experimentation involves creating and testing promising new alternatives, consistent with available resources. In today’s demanding business environment, new ideas will be essential to success, and business people must overcome their fear of failure and pursue new approaches rationally. If any of the group members respond to a suggested process with the comment, “that will never work,” he may be reflecting his fear of failure. Unwillingness to try a new way of doing things may be an accurate assessment that the approach is unworkable, but it could also be an unwillingness to work in a new way. (LO: 2, Learning Outcome: Describe the components of an information system (I S), AACSB: Reflective Thinking) 1-8 Job security: a. State the text’s definition of job security.

The text defines job security as “a marketable skill and the courage to use it.” The text also argues that marketable skills are no longer specific task-related skills, but rather “strong nonroutine cognitive skills.” (LO: 2, Learning Outcome: Describe the components of an information system (I S), AACSB: Reflective Thinking)

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b. Evaluate the text’s definition of job security. Is it effective? If you think not, offer a better definition of job security.

It is likely that students will be dismayed that the more traditional task-oriented skills they are learning (e.g., computer programming, accounting) will not provide them with job security. That is probably contrary to the message they receive from their parents and grandparents. However, this definition of job security should cause the students to think critically about what they are getting from their college education and may cause them to think differently about their experiences in college. (LO: 2, Learning Outcome: Describe the components of an information system (IS), AACSB: Reflective Thinking) c. As a team, do you agree that improving your skills on the four dimensions in Collaboration Exercises will increase your job security?

Student answers will vary, but we hope that thinking about these dimensions will change their attitudes about what comprises marketable skills and how to work to develop them. (LO: 2, Learning Outcome: Describe the components of an information system (IS), AACSB: Reflective Thinking) d. Do you think technical skills (accounting proficiency, financial analysis proficiency, etc.) provide job security? Why or why not? Do you think you would have answered this question differently in 2000? Why or why not?

Technical skills are not irrelevant to job security, but they are not sufficient to guarantee job security. This circumstance is very different than in 2000, when technical skills probably were sufficient to get and keep a decent job. (LO: 2, Learning Outcome: Describe the components of an information system (IS), AAC SB: Reflective Thinking)

CASE STUDY 1 Pluralsight 1-9.

Go to http://pluralsight.com and search for a course you might be interested in taking. What is attractive to you about online versus traditional training?

Student answers will vary in terms of the course that is interesting. Attractive features of online training versus traditional classroom training include the convenience and flexibility of taking a lesson/course when time allows. (LO: 1, Learning Outcome: Describe the effects of e-commerce on the modern business world, AACSB: Analytic Skills)

1-10. What advice would you give executives at Pluralsight if they wanted to grow their

business? How could they increase revenues?

Pluralsight has traditionally focused on corporate training. Students might be more familiar with an academic environment and might suggest that Pluralsight establish programs with universities so that students could take courses to supplement their traditional coursework at a reduced rate. Possibly some companies could be lined up

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to help pay the subscription rate, since the students should be more able to provide needed skills to those companies when they graduate. (LO: 1, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Analytic Skills) 1-11. Why would corporate clients be interested in online technology training for their

internal employees? How would they benefit from paying Pluralsight for training?

Technical skill requirements are constantly changing and employee skills constantly need to be updated. Paying for skills training from Pluralsight is probably much more cost effective for a company than trying to provide the training in-house.

Pluralsight is a training outsourcer and if their training quality is good, the company is much better off obtaining the training this way. (LO: 1, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Analytic Skills) 1-12. Why is there a technology skills gap? Why do employers have the need for highly

skilled workers, and why do too few workers have these skills?

It is difficult for a traditional college or university to include every type of technology skill in its curriculum, so graduates will not necessarily know every type of technology an employer requires. In addition, skills required evolve quickly and employees need to be updated and retrained on new technologies. (LO: 2, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Analytic Skills) 1-13. How might a traditional university benefit from a partnership with Pluralsight? Why

might some universities see such a partnership as a threat to their existence while others might see it as a great opportunity?

Universities could benefit from a partnership with Pluralsight in several ways. One, a university’s IT staff would undoubtedly benefit from access to these training courses. Two, faculty members in certain fields might like to enhance their own knowledge and skills. Finally, students might like to supplement their more traditional classes with training that is more skills-focused, such as those offered in Pluralsight courses. Many universities would not fear this partnership because their courses are not focused only on technical skills but more on conceptual knowledge.

Colleges and universities that do offer focused skills training might find this partnership a little threatening if students preferred the Pluralsight online courses to the traditional university offerings. (LO: 1, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Reflective Thinking) 1-14. Suppose you were considering buying stock in Pluralsight. What types of threats

might Pluralsight face in the future? Could a large tech company mimic its business model and threaten its profitability? How could Pluralsight defend against this type of competition?

Like any company today, there are constant competitive threats. An example of a threat that could disrupt Pluralsight is the rapid growth of cloud computing. A major cloud computing provider, such as Amazon, could launch a skills training business

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geared toward all its cloud computing environments and tools that would be far superior to Pluralsight’s. Pluralsight could defend against this by establishing a partnership with Amazon to provide Amazon’s cloud computing skills training. (L O: 1, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Reflective Thinking) For an example illustrating the concepts found in this chapter, view the videos in mymislab.com.

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Strategy and Information Systems

LEARNING OBJECTIVES Q2-1 Describe how organizational strategy determines information systems structure.

Q2-2 Explain the five forces that determine industry structure.

Q2-3 Describe how analysis of industry structure determines competitive strategy.

Q2-4 Describe how competitive strategy determines value chain structure.

Q2-5 Explain how business processes generate value.

Q2-6 Describe how competitive strategy determines business processes and the structure of information systems.

Q2-7 Explain how information systems provide competitive advantages.

Q2-8 Explain how businesses may use information systems for competitive advantage in 2029.

CHAPTER OUTLINE Q2-1 How does organizational strategy determine information systems structure?

Q2-2 What five forces determine industry structure?

Q2-3 How does analysis of industry structure determine competitive strategy?

Q2-4 How does competitive strategy determine value chain structure?

• Primary activities in the value chain • Support activities in the value chain • Value chain linkages Q2-5 How do business processes generate value?

Q2-6 How does competitive strategy determine business processes and the structure of information systems?

Q2-7 How do information systems provide competitive advantages?

• Competitive advantage via products o First mover advantage • Competitive advantage via business processes • How does an actual company use IS to create competitive advantages?

• How does this system create a competitive advantage?

Q2-8 2029?

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Learning Catalytics is a “bring your own device” student engagement, assessment, and classroom intelligence system. It allows instructors to engage students in class with realtime diagnostics. Students can use any modern, web-enabled device (smartphone, tablet, or laptop) to access it. For more information on using Learning Catalytics in your course, contact your Pearson Representative.

SECURITY GUIDE Hacking Smart Things 1. How many devices in your home are connected to the Internet? How much time do you spend daily, weekly, or monthly trying to ensure that these devices have the latest software and/or are secure? What are the implications of maintaining dozens of smart devices?

Managing the information systems infrastructure at a large business or government agency takes a tremendous amount of time and effort. It can be equally inconvenient for a homeowner to ensure that the operating system and software on a few home computers are up to date and patched. Managing a household of dozens of Internetconnected devices could prove to be the biggest hurdle inhibiting people from protecting themselves from any number of threats that could occur with a home filled with Internet-connected devices.

2. The guide discusses the potential threat of a hacker accessing a vehicle and downloading data about the car’s performance and operations. Aside from a malicious hacker acting alone, are there any businesses or government agencies that could benefit from accessing these data? How? A number of government agencies have been found to be collecting data and spying on American citizens without the proper authority. It is possible that as more and more devices have Internet access, intelligence agencies could take advantage of these devices and raise their intelligence-gathering operations to an even more pervasive level. On the business side, car insurance companies could be tempted to illegally access the data stored in vehicles to learn more about how the drivers they are covering are operating their vehicles, and potentially change insurance premiums for drivers who are operating their vehicle in a manner that introduces higher risk and thus higher likelihood of a claim.

3. Has this guide changed your perception of the Internet of Things? Do the benefits of smart devices outweigh the risk of data loss or your personal privacy? Why or why not?

This is a subjective question; student responses will vary.

4. The Internet of Things is not solely focused on home automation or private consumer products. Businesses are using the Internet of Things to manage supply chains and streamline various business processes. What benefits or risks are associated with businesses adopting new Internet-connected devices?

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As businesses have access to more and more data about supply chains and other important processes they can mitigate demand-forecasting risks like the bullwhip effect by more accurately managing the flow of resources in the supply chain. In the age of the Internet of Things, shipping containers and even individual products can be tracked around the globe in real time. However, as any device with an Internet connection can be compromised, competing firms could access shipping and other supply chain information to learn more about competitors’ business processes and raw material flows to anticipate the supply of competing products. This concern is not far-fetched as companies regularly hack into the information systems of competitors to steal intellectual property.

SO WHAT? Amazon Eats Whole Foods 1. The feature begins with a description of the Sears, Roebuck and Company business model and then makes a comparison between that company and Amazon. Can you think of any other businesses that successfully sold goods to consumers located in more remote parts of the United States on a large scale? How and why did these companies succeed?

Students may identify very early examples, such as Montgomery Ward, that originated around the same time as Sears, Roebuck and Co. Another example that is more current is Dell, a company that pioneered the make-to-order personal computer sales model. In the case of companies like Dell and Gateway Computers, computer buyers were no longer limited to the computers available on the shelf at computer and electronics stores; buyers could custom order a PC and have it shipped right to the buyer’s door. This sales model completely disrupted the build-to-stock model that computer manufacturers used at that time. Another example is Netflix, that changed the way we rent videos and disrupted that industry as well.

2. It has been stated that even the suggestion that Amazon will enter an industry causes fear in the existing companies operating in that market. Do you think other grocery chains are concerned about this move by Amazon?

Other grocery store chains are undoubtedly concerned about this move by Amazon.

The disruption that Amazon caused in the bookselling retail market is well known.

There is no reason to think the same thing can’t happen in the grocery industry, as well as many other industries.

3. The Amazon Go convenience store presents yet another example of using technology to increase efficiency. However, do you see any downsides of the Amazon Go model?

The downsides of the Amazon Go model may be related to trading-off convenience with the full customer service that some customers may prefer, particularly if the Go model was expanded to a more full-line store versus a limited-selection, convenience store.

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4. Based on Amazon’s strategic decision to compete in the grocery market, can you identify any other industries that Amazon may choose to enter in the next five years?

Student answers will vary, but it seems probable that nearly any industry could be susceptible to threats from Amazon.

COLLABORATION EXERCISE 2 Your team’s task is to develop two innovative ideas for solving Singing Valley’s problem.

At the minimum, include the following in your response: a. An analysis of the five forces of the Singing Valley market. Make and justify any necessary assumptions about their market.

Student answers will vary, but look for the following: • Rivalry (strong force) – Upscale resorts will compete strongly for a relatively small market.

• Bargaining power of customer (strong force) – Upscale customers will have many choices.

• Threat of substitutions (strong force) – Many other options are available besides Colorado mountain resorts, for example, cruises or island resorts.

• Bargaining power of suppliers (fairly weak force) – Singing Valley will have ample supplier options.

• Threat of new entrants (fairly weak force) – The cost of developing similar new resorts will be steep, but remember that Singing Valley’s customers are the type of customers who are always looking for the newest new thing. (LO: 2, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Analytic Skills) b. A statement of Singing Valley’s competitive strategy.

Singing Valley follows a differentiation focus strategy. (LO: 3, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Analytic Skills) c. A statement of the problem. If the members of your group have different perceptions of the problem, all the better. Use a collaborative process to obtain the best possible problem description on which all can agree.

Singing Valley management believes that customers can provide a larger revenue stream than they are currently producing. (LO: 3, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Analytic Skills) d. Document in a general way (like the top row of Figure 2-10) the process of up-selling an activity.

Customer contact recognizes interest areas

Determine interest in activity,

Register customer for activity and arrange for

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and/or previous experience with activity.

making suggestions.

reminder, transportation, etc.

2-5

Record interest in future similar activities.

(LO: 4, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Analytic Skills) e. Develop two innovative ideas for solving the Singing Valley problem. For each idea, provide: • A brief description of the idea.

• A process diagram (like Figure 2-11) of the idea. Figure 2-11 was produced using Microsoft Visio; if you have access to that product, you’ll save time and have a better result if you also use it.

• A description of the information system needed to implement the idea.

Student answers will vary. A good classroom exercise is to have each group present their two ideas and have the class vote to determine the most innovative idea and the idea most likely to be successful in producing more revenue (not necessarily the most innovative). (LO: 5, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Analytic Skills) f. Compare the advantages and disadvantages of your alternatives in part e and recommend one of them for implementation.

When discussing implementation, have your students think carefully about Neil Miyamoto’s statement: “Every business owner needs to determine the performance indicators that drive his or her business and then wrap technology around those indicators.” Ask your students to identify the information that will be needed to measure the success of their recommended alternative. (LO: 6, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Analytic Skills)

CASE STUDY 2 The Amazon of Innovation 2-4. Based on the facts presented in this case, what do you think is Amazon’s competitive

strategy? Justify your answer.

Amazon seeks to differentiate itself by providing a huge array of goods at very good prices. (LO: 3, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Analytic Skills) 2-5. Jeff Bezos, CEO of Amazon, has stated that the best customer support is none. What

does that mean?

There are several interpretations of this comment. First, Amazon may strive to do such an excellent job serving its customers that no customer support is needed.

Second, Amazon seeks to provide its customers with excellent self-service. This

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means that a customer rarely has to utilize customer support directly with a human customer support representative; rather, its information systems enable customers to perform virtually any customer service task by themselves. (LO: 6, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Analytic Skills) 2-6. Suppose you work for Amazon or a company that takes innovation as seriously as

Amazon does. What do you suppose is the likely reaction to an employee who says to his or her boss, “But, I don’t know how to do that!”?

A company that is serious about innovation would not tolerate employees who are fearful of taking risks and experimenting. Employees in these types of companies will be expected to do things they don’t know how to do all the time! A boss is likely to tell the employee that he/she was hired not for what they already know how to do, but for the new things they can figure out how to do. It is that willingness to push into the unknown that is valued. Employees who can’t tolerate this expectation will not stay employed at that company for long. (LO: 1, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Reflective Thinking Skills) 2-7. Using your own words and your own experience, what skills and abilities do you

think you need to have to thrive at an organization like Amazon?

Student answers will vary, depending upon their personal experiences. We hope that they will mention several things at a minimum, including abstract reasoning, critical thinking, ability to engage fully in collaborative endeavors, willingness to experiment, and continuous engagement in process improvement. (LO: 1, Learning Outcome: Describe the components of an information system (IS), AACSB: Reflective Thinking Skills) 2-8. What should UPS and FedEx be doing in response to Amazon’s interest in drone

delivery via Amazon Prime Air? Certainly, this interest in drone delivery will have an effect on Amazon’s delivery partners like UPS and FedEx. Rather than resisting the exploration of this innovation, companies like FedEx and UPS should be discussing ways that they can partner with Amazon in this venture (form an alliance). (LO: 2, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Analytic Skills) 2-9. Summarize the advantages and disadvantages for brick-and-mortar retailers of

selling items via Amazon. Would you recommend that they do so?

Brick-and-mortar retailers can sell items via Amazon.com and gain access to the huge number of shoppers that use that site. They would have to do business following Amazon’s rules, however. Retailers might want to keep customers coming to their own web sites rather than lose the customers to Amazon’s site. (LO: 6, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Analytic Skills)

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If a brick-and-mortar retailer were to use FBA, what business processes would it not need to develop? What costs would it save?

Brick-and-mortar retailers would not need to develop business processes for receiving, repackaging, and shipping. They would save on the labor costs associated with these processes, plus they would no longer need warehouse space for these processes. (LO: 5, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Analytic Skills)

2-10.

If a brick-and-mortar retailer were to use FBA, what information systems would it not need to develop? What costs would it save?

Brick-and-mortar retailers could use FBA’s systems for placing orders with its vendors and paying its vendors for these orders; they would also not need to develop systems that interface with the shippers. Brick-and-mortar retailers would save the costs of developing and supporting these systems. (LO: 6, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Analytic Skills)

2-11.

If a brick-and-mortar retailer were to use FBA, how would it integrate its information systems with Amazon’s? (To add depth to your answer, Google the term Amazon MWS.) Amazon’s integrated Web service API (Application Programming Interface) helps Amazon sellers to programmatically exchange data on listings, orders, payments, reports, and more. XML data integration with Amazon enables higher levels of selling automation, which helps sellers grow their business. (LO: 6, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Analytic Skills)

2-12.

For an example illustrating the concepts found in this chapter, view the videos in mymislab.com.

Copyright © 2020 Pearson Education, Inc.

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Business Intelligence Systems

LEARNING OBJECTIVES Q3-1 Explain how organizations use business intelligence (BI) systems.

Q3-2 Describe how organizations use data warehouses and data marts to acquire data.

Q3-3 Describe the three primary techniques for processing BI data.

Q3-4 Explain the alternatives for publishing BI. Q3-5 Explain why artificial intelligence (AI) is important.

Q3-6 Explain how AI and automation affect organizations.

Q3-7 Describe the goal of AI. Q3-8 Explain how AI works.

Q3-9 Discuss the future of business intelligence systems in 2029.

CHAPTER OUTLINE Q3-1 How do organizations use business intelligence (BI) systems?

• How do organizations use BI? • What are the three primary activities in the BI process?

• Using business intelligence to find candidate parts o Acquire data o Analyze data o Publish results Q3-2 How do organizations use data warehouses and data marts to acquire data?

• Problems with operational data • Data warehouses versus data marts Q3-3 What are three techniques for processing BI data?

• Reporting analysis o RFM analysis o Online analytical processing (OLAP) • Data mining analysis o Unsupervised data mining o Supervised data mining o Identifying changes in purchasing patterns • Big Data o MapReduce o Hadoop

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Q3-4 What are the alternatives for publishing BI? • Characteristics of BI publishing alternatives • What are the two functions of a BI server?

• What is the role of knowledge management systems?

• Resistance to knowledge sharing • What are content management systems?

• What are the challenges of content management?

Q3-5 Why is artificial intelligence important?

• Advances in AI Q3-6 How will artificial intelligence and automation affect organizations?

• Benefits of automated labor • How will AI affect me?

• Unwanted dirty jobs • Retraining and retooling • Surviving a shifting workplace Q3-7 What is the goal of AI? • Integrated enabler of other technology o Saying No to AI Q3-8 How does AI work?

• Machine learning o Using machine learning to automatically detect spam • IBM’s Watson o How does Watson work? o The future for Watson Q3-9 2029?

Learning Catalytics is a “bring your own device” student engagement, assessment, and classroom intelligence system. It allows instructors to engage students in class with realtime diagnostics. Students can use any modern, web-enabled device (smartphone, tablet, or laptop) to access it. For more information on using Learning Catalytics in your course, contact your Pearson Representative.

SECURITY GUIDE Equihax 1. Have you or someone you know been the victim of any kind of theft (either personal possessions or identify theft)? How did you or this other person respond? What course of action was taken to remedy the situation? How long did it take for this incident to be resolved?

Individual answers will vary depending on the specific experience. Often, when a company admits to a data breach, its remedy is to offer “free” credit monitoring for a period such as a year. Individuals may or may not know for sure if their data has been

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breached. Placing a freeze with the three credit reporting agencies can stop thieves from opening accounts but many people have not bothered to take the steps to do this.

2. What do you think should happen to Equifax as a result of this breach? Should consumers have the option/right to have their data deleted by a company at any time upon request? Should the government step in and become the clearinghouse for consumer credit reporting in an effort to provide more robust security?

Since this is an opinion question, student responses will vary.

3. The article mentions Equifax’s use of a centralized structure for storing data, which results in a very appealing target for hackers. Can you think of other companies/ contexts in which a centralized structure is used? Do you think this should be avoided in light of the Equifax breach?

A centralized structure for storing data may be used in many places, such as a company’s employee data and customer data. Conceivably, very large government agencies such as the IRS might use such centralized structures as well. The Equifax breach clearly demonstrates the vulnerability of such an approach to data storage.

4. Equifax employees made the mistake of tweeting out a URL for a site that was not actually associated with the company’s response efforts. How can you verify that a site is legitimate?

When hovering over a link in the browser window, make certain that the URL that is referenced in the link is the link you desire. Also, if you are uncertain if the link is legitimate, call the company to verify. Although in this case, the Equifax employees did not know which URLs were legitimate and which were not.

SO WHAT? Geofencing for Businesses?

1. The Internet of Things (IoT) and consumer products for smart homes have become extremely popular. How could geofencing be integrated with these products to create an even more efficient home ecosystem?

Student’s ideas for integration with geofencing will vary. If geofencing was integrated in a home ecosystem, various devices in the home, such as exterior or interior lights, could be triggered once a family member enters the geofenced area.

2. Develop a use case proposal that you could pitch to a company about how it could improve its marketing and increase its sales by using geofencing.

Student answers will vary depending on the company selected. Assuming the student uses an example such as the shopping mall, the pitch could stress the success rates achieved by other companies who have used data about a customer’s shopping habits in a department store to send a promo message and “lure” the customer into their store. Data is collected about the location of the customer in a department store. The types of goods sold in each part of the store are determined, the customer receives

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recommendations about other stores that sell those same types of products after the consumer leaves the department store. Studies show that more than half of shoppers would visit a store after receiving this type of alert.

3. How would you feel about receiving alert messages from a store or potential employer that is using geofencing? Would you consider it an annoyance and/or a privacy concern?

Since this is an opinion question, student responses will vary. Most likely, students today find this a convenience and not annoying, nor are they typically too concerned with privacy. If you do find students on both sides of the fence (no pun intended) then you will likely be able to lead a lively discussion.

4. How could a university leverage the benefits of geofencing on campus to improve student life and safety?

Many uses of geofencing on campus come to mind. A few examples include sending students a reminder of an event that is occurring in a building on campus as they pass nearby. Shops in the student union could lure students in with coupons. Alerts could be sent out to on-campus students in the event that campus is closed due to severe weather or some other type of threat. Messages could be sent to campus visitors who are there for sporting events or fine arts events.

USING YOUR KNOWLEDGE 3-4. Given the results from the Sales History for Selected Parts query, list three actions

that the company can take. Recommend one of these actions and justify your recommendation.

Several possible actions are: abandon the idea of selling 3D part designs; sell the 3D part designs; give the 3D part designs away for free; do nothing now. Students may pick any of these outcomes but should provide a reason for their choice. (LO: 3, Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: Analytic skills) 3-5. Describe a use for RFM analysis for Costco. Explain what you would do for

customers that have the following scores: [5,5,5], [3,5,5], [5,2,5], [3,3,5], and [5,5,3]. Is this analysis useful to Costco? Explain your answer.

RFM analysis can help Costco understand its customers better and identify situations or trends that need attention.

[5,5,5] – A customer with this rating is in the highest group on Recent, Frequent, and Money. This is a good regular customer and deserves the highest level of service to reward his loyalty.

[3,5,5] – A customer with this rating is in the middle on Recent; high on Frequent and Money. This customer is a valuable customer so some effort needs to be expended on finding out why he has not been a recent customer. Was there any type of problem that needs to be resolved so that the customer returns?

[5,2,5] – A customer with this rating is lower on Frequent; high on Recent and

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Money. This customer is a valuable customer so some effort needs to be expended to try and induce the customer to be a more frequent customer. A survey could help pinpoint the issues.

[3,3,5] – This customer is in the middle on Recent and Frequent but is high on Money. This customer needs to be induced to return since he spends a lot when he is a customer. Possibly a “we’ve missed you” campaign along with a free shipping coupon could entice the customer to return.

[5,5,3] – This is a Recent, Frequent, but lower-value customer. This customer is an obvious target for upselling—try to entice him to buy higher value items.

(LO: 3, Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: Analytic skills) 3-6. Define the characteristics of Big Data. Identify and describe three student-related

applications at your university that meet Big Data characteristics. Describe patterns and relationships that might be found within that data.

Big Data is characterized by data collections that have huge volume, have rapid velocity, and contain a great variety of data components. Students will think of various student-related Big Data applications at their universities. One example is the data that is associated with the university Learning Management System (LMS), such as BlackBoard or Canvas. There is a wealth of data of various types that describe student usage of the LMS. Exploration of this data could reveal insights into student usage patterns of various types and could help course designers evaluate the use and value of instructional media options and perhaps how they contribute to student performance. (LO: 3, Learning Outcome: Compare and contrast different business intelligence systems, AACSB: Analytic skills) 3-7. CogniToys uses IBM’s Watson to power its Dino toy. Dino answers questions

children (or grown-ups) ask it but in a customized way. It remembers the age of the person asking the questions and gives more complex answers to older children. It also plays games, tells jokes, and keeps track of the child’s progress in a variety of subjects. Parents can access online reports to see how well their child is progressing.

Describe how IBM’s Watson could change formal education. How might Watson be used to help educate children in developing countries?

The Dino toy provides one-on-one tutoring for children. Formal education today by necessity must provide generalized education for children that does not necessarily match each child’s abilities and needs. The personalized attention provided by the Dino toy could be a wonderful supplement to formal education. Students who may be struggling in a subject could have a dedicated assistant and coach, while advanced students could receive enrichment material from Dino while the classroom teacher works with others. In developing countries, where trained teachers may be in short supply, the Dino toy could provide children who do not have access to formal education an opportunity to learn basic skills. (LO: 7, Learning Outcome: Compare and contrast different business intelligence systems, AACSB: Analytic skills) 3-8. Thought leaders like Bill Gates, Elon Musk, and the late Stephen Hawking have

expressed concerns about the potential harm that could come from AI. For example,

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Stephen Hawking warned that AI could evolve beyond the control of humans and cause the end of mankind. Describe some of the potential harmful effects that could come from advanced AI (superintelligence). If AI-powered robots could do 95 percent of current human jobs, what will humans do?

This question provides an opportunity to explore the consequences of superintelligence and will challenge students to imagine a future in which machines are “in charge.” Will humans serve in slave-type roles? Is there any role for humans at all? Can computers become greedy and self-serving as some humans do? Will compassion, empathy, and other human emotions disappear? There are many interesting issues to explore. What was once the subject of science fiction stories now has a tinge of reality. (LO: 7, Learning Outcome: Compare and contrast different business intelligence systems, AACSB: Ethical Understanding and Reasoning Abilities)

COLLABORATION EXERCISE 9 3-9. Summarize the ways that third-party cookies are created and processed. Even though

cookies are not supposed to contain personally identifying data, explain how such data can readily be obtained. (See question 3-19.)

When a person visits a Web site that contains content (usually ads) from other organizations, those other organizations can instruct your browser to place a cookie on your computer. So, you end up with a cookie from the site you visited plus cookies from all other organizations that had content (ads) on that site. This addition of thirdparty cookies is done without your knowledge or permission. The first-party site you visited may know quite a bit about you because you may have an account, be a member, or have a subscription to that site. If the first-party site reveals to the adserver company who you are, you are now personally known to the adserver company and potentially to all of its client companies as well. (LO: 3, Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: Analytic skills) Numerous browser features, add-ins, and other tools exist for blocking third-party cookies. Search the Web for block third-party cookies for xxx, and fill in the xxx with the name and version of your browser. Read the instructions, and summarize the procedures that you need to take to view the cookies issued from a given site.

A direct tracker-thwarting approach is to block third-party cookies in the first place.

3-10.

To do so in IE, click Tools > Internet Options > Privacy > Advanced. Select Override automatic cookie handling and select Block next to Third-party Cookies.

Firefox’s cookie settings are found under Tools > Options > Privacy. Uncheck “Accept third-party cookies” and click OK. In Google Chrome, click the Chrome menu in the top-right corner of the browser, choose Settings, then select Advanced Settings. In Privacy click Content Settings and

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check “Block third-party cookies and site data.” (LO: 1, Learning Outcome: Compare and contrast different business intelligence systems, AACSB: Information Technology) In large measure, ads pay for the free use of Web content and even Web sites themselves. If, because of a fear of privacy, many people block third-party cookies, substantial ad revenue will be lost. Discuss with your group how such a movement would affect the valuation of Facebook and other ad-revenue-dependent companies.

Discuss how it would affect the delivery of free online content such as that supplied

by Forbes or other providers.

Students may have different opinions on the consequences of this. However, if blocking of third-party cookies became the norm, it could definitely affect ad-revenue dependent Web sites. (LO: 1, Learning Outcome: Compare and contrast different business intelligence systems, AACSB: Analytic skills)

3-11.

Many companies have a conflict of interest with regard to third-party cookies. On the one hand, such cookies help generate revenue and pay for Internet content. On the other hand, trespassing on users’ privacy could turn out to be a PR disaster. As you learned in your answer to question 3-10, browsers include options to block thirdparty cookies. However, in most cases, those options are turned off in the default browser installation. Discuss why that might be so. If sites were required to obtain your permission before installing third-party cookies, how would you determine whether or not to grant it? List criteria that your team thinks would actually be used (as opposed to what the team thinks should be used). Assess the effectiveness of such a policy.

The third-party cookie blocking settings are not the default in browsers because currently a great deal of the value proposition of commerce on the Internet depends on these cookies being created. If an opt-in model was used (as is currently done in European Union countries), the users would be confronted with making a decision about every third-party cookie request. Most users would not want to bother and would find a way to accept all cookies automatically. For those users who do care about potential privacy losses, a selection rule would have to be created that judges the potential value of the cookie to me personally (is it from a site that I am intensely interested in?). (LO: 1, Learning Outcome: Compare and contrast different business intelligence systems, AACSB: Analytic skills)

3-12.

The processing of third-party cookies is hidden; we don’t know what is being done behind the scenes with the data about our own behavior. Because there is so much of it and so many parties involved, the possibilities are difficult to comprehend, even if the descriptions were available. And if your privacy is compromised by the interaction of seven different companies working independently, which is to be held accountable? Summarize the consequences of these facts on consumers.

A small number of consumers are concerned enough about loss of privacy that they will take active steps to block ads and delete cookies from their browsers. Many consumers are concerned about privacy issues but very quickly become overwhelmed at the complexity of the Internet environment. It is so hard for the average consumer

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to comprehend everything that is going on or could be going on behind the scenes.

Just understanding a company’s stated privacy policy can be difficult. As a result, many consumers just have a “whatever happens, happens” kind of attitude. It is not that privacy doesn’t matter to these people; rather, many people don’t feel there are simple and effective ways to protect their privacy. They therefore trust the companies they interact with to preserve their privacy on their behalf. This trust has not always been justified, which then causes consumers to be angry and frustrated. (LO: 1, Learning Outcome: Compare and contrast different business intelligence systems, AACSB: Ethical Understanding and Reasoning Abilities) Summarize the benefits of third-party cookies to consumers.

Most Web users realize that the ads they see on sites are targeted specifically to them based on the knowledge the sites and their advertising partners have collected about them. The companies claim they don’t collect personally identifiable information—or at least most of them state so. The success of their ads finances the “free” services on the Web. (LO: 1, Learning Outcome: Compare and contrast different business intelligence systems, AACSB: Analytic skills)

3-14.

Given all you have learned about third-party cookies, what does your team think should be done about them? Possible answers are a) nothing; b) require Web sites to ask users before installing third-party cookies; c) require browsers to block thirdparty cookies; d) require browsers to block third-party cookies by default, but enable them at the users’ option; e) something else. Discuss these alternatives among your team and recommend one. Justify your recommendation.

Student answers will vary. This question should generate some lively discussion.

(LO: 1, Learning Outcome: Compare and contrast different business intelligence systems, AACSB: Ethical Understanding and Reasoning Abilities)

3-15.

CASE STUDY 3 Hadoop the Cookie Cutter Using your own words, explain how third-party cookies are created.

When a person visits a Web site that contains content (usually ads) from other organizations, those other organizations can instruct your browser to place a cookie on your computer. So, you end up with a cookie from the site you visited plus cookies from all other organizations that had content (ads) on that site. This addition of thirdparty cookies is done without your knowledge or permission. (LO: 1, Learning Outcome: Compare and contrast different business intelligence systems, AACSB: Analytic skills)

3-16.

Suppose you are an ad-serving company, and you maintain a log of cookie data for ads you serve to Web pages for a particular vendor (say, Amazon).

3-17.

a. How can you use this data to determine which are the best ads?

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The best ads are those that result in clicks, so I would want to know the click rate of the ads that have been served. (LO: 3, Learning Outcome: Compare and contrast different business intelligence systems, AACSB: Analytic skills) b. How can you use this data to determine which are the best ad formats?

I would compare the click rate of ads that have been displayed in various formats to determine which ad format resulted in the most clicks. (LO: 3, Learning Outcome: Compare and contrast different business intelligence systems, AACSB: Analytic skills) c. How could you use records of past ads and ad clicks to determine which ads to send to a given IP address?

Summarize the ads delivered and clicked by IP address. (LO: 3, Learning Outcome: Compare and contrast different business intelligence systems, AACSB: Analytic skills) d. How could you use this data to determine how well the technique you used in your answer to question c was working?

Evaluate the ads delivered and clicked on by that IP address over time and see if there has been any pattern change. (LO: 3, Learning Outcome: Compare and contrast different business intelligence systems, AACSB: Analytic skills) e. How could you use this data to determine that a given IP address is used by more than one person?

Evaluate the click rate on ads by ad type. If there is a cluster of ads for hunting/fishing; a cluster for recipes; and a cluster for a teenage heart-throb, there are probably two parents with a teenage daughter in the household. (LO: 3, Learning Outcome: Compare and contrast different business intelligence systems, AACSB: Analytic skills) f. How does having this data give you a competitive advantage vis-à-vis other adserving companies?

If I can demonstrate my success at placing ads that are clicked on my customers’ pages, I should be able to get more customers for my ad-placement services and command a higher rate for my services than my competitors who have not shown these results. (LO: 3, Learning Outcome: Compare and contrast different business intelligence systems, AACSB: Analytic skills) Suppose you are an ad-serving company, and you have a log of cookie data for ads served to Web pages of all your customers (Amazon, Facebook, etc.).

3-18.

a. Describe, in general terms, how you can process the cookie data to associate log entries for a particular IP address.

I could summarize my log entries by IP address across all my ad sites rather than just by a single ad site. (LO: 3, Learning Outcome: Compare and contrast different business intelligence systems, AACSB: Analytic skills)

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b. Explain how your answers to question 3-10 change, given that you have this additional data.

By having the data for all ad sites I not only can look at the items described in question 3-10, but can also compare across the ad sites and look for differences.

Does a particular ad format have a different click rate when displayed on an Amazon page as compared to a Facebook page, for example? (LO: 3, Learning Outcome: Compare and contrast different business intelligence systems, AACSB: Analytic skills) c. Describe how you can use this log data to determine users who consistently seek the lowest price.

Since I can summarize my ad clicks by IP address, I can evaluate ad clicks for similar products from different competing vendors. For example, if a particular IP address clicks on an HP laptop ad, a Dell laptop ad, and a NewEgg.com ad, that pattern suggests a user who is price-shopping for a laptop. (LO: 3, Learning Outcome: Compare and contrast different business intelligence systems, AACSB: Analytic skills) d. Describe how you can use this log data to determine users who consistently seek the latest fashion.

Since I can summarize my ad clicks by IP address, I can evaluate ad clicks for ads grouped by type. When an IP address is clicking on a number of ads that are part of my high fashion ad group, the pattern suggests a user who is interested in the latest fashions. (LO: 3, Learning Outcome: Compare and contrast different business intelligence systems, AACSB: Analytic skills) e. Explain why uses like those in c and d above are only possible with MapReduce or a similar technique.

The massive quantity of data that must be analyzed to produce results for parts c and d are really only computationally possible with MapReduce type parallel processing techniques. (LO: 3, Learning Outcome: Compare and contrast different business intelligence systems, AACSB: Analytic skills) As stated, third-party cookies usually do not contain, in themselves, data that identifies you as a particular person. However, Amazon, Facebook, and other firstparty cookie vendors know who you are because you signed in. Only one of them needs to reveal your identity to the ad-server and your identity can then be correlated with your IP address. At that point, the ad server and potentially all of its clients know who you are. Are you concerned about the invasion of your privacy that thirdparty cookies enable? Explain your answer.

Student opinions will vary on this question. In general, I have found that students are not particularly concerned about loss of privacy. To generate discussion about this topic, ask your students what information could be revealed about their private lives once a name is actually linked to ad-clicking behavior. Would their behavior on the computer change once they knew their name was known? (LO: 3, Learning Outcome:

3-19.

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Compare and contrast different business intelligence systems, AACSB: Ethical Understanding and Reasoning Abilities)

For an example illustrating the concepts found in this chapter, view the videos in mymislab.com.

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Hardware, Software, and Mobile Systems

LEARNING OBJECTIVES Q4-1 Describe what business professionals need to know about computer hardware.

Q4-2 Describe how new hardware can affect competitive strategies.

Q4-3 Describe what business professionals need to know about software.

Q4-4 Determine if open source software is a viable alternative.

Q4-5 Explain the differences between native and Web applications.

Q4-6 Explain why mobile systems are increasingly important.

Q4-7 Describe the challenges of personal mobile devices at work.

Q4-8 Speculate on the state of hardware, software, and mobile systems in 2029.

CHAPTER OUTLINE Q4-1 What do business professionals need to know about computer hardware?

• Hardware components • Types of hardware • Computer data o Computer data sizes o Specifying hardware with computer data sizes Q4-2 How can new hardware affect competitive strategies?

• Internet of Things o Impact of the Internet of Things • Digital reality devices o Impact of digital reality devices • Self-driving cars o Self-driving cars make things easier o Self-driving cars make things cheaper o Self-driving cars will make things safer o Self-driving cars will disrupt businesses • 3D printing • Cryptocurrencies o Benefits of cryptocurrencies o Risks of cryptocurrencies o The future of cryptocurrencies Q4-3 What do business professionals need to know about software?

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•

What are the major operating systems? o Nonmobile client operating systems o Mobile client operating systems o Server operating systems • Virtualization • Own versus license • What types of applications exist, and how do organizations obtain them?

• What is firmware?

Q4-4 Is open source software a viable alternative?

• Why do programmers volunteer their services?

• How does open source work?

• So, is open source viable?

Q4-5 What are the differences between native and Web applications?

• Developing native applications • Developing Web applications • Which is better?

Q4-6 Why are mobile systems increasingly important?

• Hardware • Software • Data • Procedures • People Q4-7 What are the challenges of personal mobile devices at work?

• Advantages and disadvantages of employee use of mobile systems at work • Survey of organizational BYOD policy Q4-8 2029?

Learning Catalytics is a “bring your own device” student engagement, assessment, and classroom intelligence system. It allows instructors to engage students in class with realtime diagnostics. Students can use any modern, web-enabled device (smartphone, tablet, or laptop) to access it. For more information on using Learning Catalytics in your course, contact your Pearson Representative.

SECURITY GUIDE Poisoned App-les 1. Think about your use of various phone and computer apps and your interactions on social media. Have you ever experienced a breach of your privacy or personal data?

What was the impact of this breach? Were you able to resolve it or were you forced to live with the consequences?

The response to this question clearly depends on the previous experiences of students in the class. While it is likely that a handful of students will have had some sort of

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privacy violation, be sure to call on students who are clearly comfortable sharing their experience.

2. Try to identify three different strategies that any smartphone user could follow in an attempt to minimize the risk of installing and using dangerous/risky apps.

(1) Users can avoid downloading apps with poor reviews and complaints about the functionality; these apps may be designed specifically for the purposes of accessing data and sharing it with third parties. (2) Pay close attention to usage agreements when downloading new software/apps. (3) Avoid free apps as there are usually hidden costs. (4) Remove any apps on your phone that you are no longer using; there is no reason to jeopardize your data and privacy for an app that is providing no benefit to the user. (5) Carefully manage app settings on the device. (6) Monitor tech news or Twitter feeds to stay on top of announcements concerning compromised or dangerous pieces of software.

3. Reflect on the tradeoff between free apps and the potential privacy risks that these apps may introduce. Has this article changed your perception of free apps? If so, how?

The response to this question is clearly subjective in nature but can be used to generate a discussion in class. Some students will likely express their concern and will be more hesitant when downloading apps while others will not alter their behavior. Use these varying opinions as an opportunity to demonstrate how differently people think about and approach securing their data/systems.

4. Conduct an Internet search to identify if there have been any recent security vulnerabilities introduced through an app store (e.g., the App Store, Google Play, or Windows Phone Store). If so, conduct a brief investigation to see which apps are involved, how many people have been impacted, and whether the vulnerability has been resolved.

The outcomes of these searches will depend on current events. If there have not been any recent incidents, this can be used as an indication of how hard Apple and other companies are working to avoid tarnishing their brand and reputation.

SO WHAT? New from CES 2018 1. What impact do you think Toyota’s e-Palette will have on traditional brick-andmortar businesses?

Since this is an opinion question, student answers will vary. It seems likely that an innovation like e-Palette will be another blow to traditional brick and mortar businesses.

2. How could Toyota’s e-Palette affect e-commerce?

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Some of the disadvantages of e-commerce include being unable to physically touch and/or try on the item prior to purchasing, waiting for the item to be delivered, and the nuisance of having to send back an item that is unsatisfactory. E-Palette will overcome many of these issues but still provides to your door convenience and allows the customer to avoid the crowds and parking hassles at shopping centers.

3. Why would consumers prefer Peloton Tread over a traditional treadmill or running outside?

Convenience and flexible scheduling are two very important considerations. The Peloton enables the consumer to gain some of the features of an exercise class without the need to go out to a gym. Treadmills without the coaching/class aspect of Peloton Tread can be boring; running outside has the disadvantages of inclement weather and potential safety concerns.

4. Peloton has transformed traditional treadmills and stationary bikes into IoT devices.

Which other workout devices would benefit from being smart IoT devices?

Other types of equipment could be similarly linked, such as rowing machines. ellipticals and weight training machines.

5. What are the benefits of a robot dog over a biological dog? What might be some of the drawbacks of a robot dog? Why? A robotic dog provides some measure of companionship to humans but eliminates all the care requirements of a real dog (feeding, training, walking, clean-up, vet appointments, etc.). It also would not get sick and die as real dogs do. The drawbacks come from the fact that it is not actually a dog; it is uncertain whether or not a real bond could form between a human and robotic dog.

USING YOUR KNOWLEDGE 4-4. Describe how the class enrollment application at your university could benefit from a mobile application that uses the cloud.

The class enrollment application could enable students to view course offerings, register for classes, view class waiting lists, change class registration, and view class schedules. Being able to do all of these things would be highly valued by students who can be anywhere and perform these registration-related tasks at any time. (LO: 5, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Reflective Thinking Skills) 4-5. Judging from your personal experience, describe the BYOD policy that appears to be

in place at your university. Explain the advantages and disadvantages of the policy to you as a student and to the organization as a whole. How do you think that BYOD policy will change in the next five years? Explain your answer.

Students’ answers will vary widely depending on each institution’s approach to BYOD. As an example, this writer’s university has had in recent years a very restrictive policy on laptops—any laptop in use on campus that wanted access to the

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campus WiFi services had to be physically registered with the central Information Technology Services organization. Although this policy has been relaxed, it had the advantage of “forcing” each user to have certain malware protection installed. I believe that BYOD policies will have to continue to relax and accommodate a wide array of devices and respond to user demands. (LO: 7, Learning Outcome: Describe the major types of computer hardware and software used by companies, AACSB: Reflective Thinking Skills) 4-6. Read Q4-2, if you have not already done so. Critically evaluate the opinions of the

author. Do you agree that advances in the IoT and self-driving cars will make life easier? Better? If so, say why. If not, explain what you think will happen when more smart devices and self-driving cars are adopted. Explain how you could prepare for a future high-tech job market.

Student answers will vary widely depending on each student’s opinion on these issues. Although this is primarily an opinion question, challenge your students to support their opinion with reasoning and judgment. (LO: 7, Learning Outcome: Describe the major types of computer hardware and software used by companies, AACSB: Reflective Thinking Skills)

COLLABORATION EXERCISE 4 Microsoft HoloLens Using the collaboration IS you built in Chapter 1 (page 32), collaborate with a group of students to answer the following questions.

4-7. Consider uses for HoloLens at your university. How might HoloLens be used in

architecture, chemistry, law, medicine, business, geography, political science, art, music, or any other discipline in which your team has interest? Describe one potential application for HoloLens in five different disciplines.

Student answers will vary. The use of collaboration should aid the teams to develop a set of creative ideas. (LO: 1, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Use of Information Technology) 4-8. List specific features and benefits for each of the five applications you selected in

question 4-7.

Student answers will vary. (LO: 1, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Use of Information Technology) 4-9. Describe, in general terms, the work that needs to be accomplished to create the

applications you identified in question 4-7.

Student answers will vary. (LO: 1, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Use of Information Technology)

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Some people buy gaming consoles like Sony PlayStation and Microsoft Xbox because of exclusive games. Not all video games are available on all consoles. How important might applications be in the success of digital reality devices like HoloLens, Meta 2, and Oculus Rift?

Applications will be one of the key factors determining adoption of digital reality devices. Without applications, hardware devices become little more than expensive paperweights. The more applications a device can use, the more successful a hardware platform will become. Users want devices to be useful, fun, and productive.

Applications make this possible. (LO: 1, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Reflective Thinking Skills)

4-10.

You will sometimes hear the expression “Emerging technology is constantly leveling the playing field.” In other words, technology eliminates competitive advantages of existing companies and enables opportunities for new companies. How does this statement pertain to HoloLens, iPad, Windows 10, Apple, and Google?

An emerging technology may result in the complete transformation of industries and/or the creation of new business models. (LO: 5, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Reflective Thinking Skills)

4-11.

CASE STUDY 4 The Apple of Your i Which of Porter’s four competitive strategies does Apple engage in? Explain.

Apple is pursuing a focused differentiation strategy. It is focused primarily on the mobile computing device market and is differentiating itself through its incredible engineering and huge array of applications for its devices. (LO: 1, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Reflective Thinking Skills)

4-12.

What do you think are the three most important factors in Apple’s past success?

Justify your answer.

Student opinions on this will vary, but Apple has demonstrated a capability of creating innovative new products successfully. Apple has also been able to keep that stream of innovations going and to enable the innovations to play off of each other.

A culture that encourages and supports these engineering successes is obvious. Apple also has developed an ability to sell and market its new products successfully. (LO: 6, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Reflective Thinking Skills)

4-13.

Steve Jobs passed away in October 2011. Until his death, he had been the heart and soul of Apple’s innovation. Today, 123,000 Apple employees continue onward in his absence with Tim Cook as the new CEO. A huge question facing many investors is

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whether the company can be successful without Steve Jobs. What do you think? Has Tim Cook been innovative enough since taking over Apple? Will he be a bold innovator like Steve Jobs? Would you be willing to invest in Apple with Tim Cook at the helm? Why or why not?

Jobs had a very hands-on involvement in the business. He was the company’s chief innovator. Of course he didn’t do it all alone, but he seemed to set the direction for the business in a very effective way. He had the ability to be visionary and send his company’s engineers out to conquer challenges that paid off in big ways. The company then also had the ability to develop support systems for the new innovations. Another capability was to recover and move on from product failures, which Apple had its share of as well. Can this company continue its progress without Jobs? Obviously, only time will tell. Some students may feel that Apple will be unable to sustain its success without the unique vision and leadership style of Jobs and would therefore be unwilling to invest in Apple. Other students may feel that Apple’s executives have been hand-picked and mentored by Jobs and are therefore capable of continuing to lead Apple effectively. Professional managers may not have the same passion and commitment as the founders and may not have quite the same authority and influence in the organization. There is no question that Apple will be a different place without Jobs’ influence, but it is not necessarily doomed. (LO: 5, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Reflective Thinking Skills) Microsoft took an early lead in the development of slate devices (like the iPad), and it had the world’s leading operating system and applications for more than 20 years. Provide five reasons why Microsoft was not able to achieve the same success that Apple has. Most industry analysts would agree that the skills and abilities of Microsoft’s 124,000 employees are as good, on average, as Apple’s.

Students will have different opinions on this. Here is a list of a few ideas to get the discussion rolling: • Lack of a visionary leader since Gates has departed.

• Very diffused focus—many market niches pursued simultaneously.

• Emphasis on acquiring new technologies rather than in-house development.

• Strategy of maintaining edge through strategic manipulation rather than product enhancement.

• Few products that are truly amazing, must-have products.

(LO: 6, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Reflective Thinking Skills)

4-15.

Considering your answers to the four questions above, if you had a spare $5,000 in your portfolio and wanted to buy an equity stock with it, would you buy AAPL (Apple)? Why or why not?

Students will have different opinions on this. I would be sure to ask those who want to jump on board the Apple bandwagon several questions, including: • Is it the best strategy to buy a stock with the price at record highs?

• Are you concerned about the loss of Steve Jobs on Apple’s future?

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You seem to believe in the company’s ability to keep producing technical winners. On what do you base this opinion?

(LO: 5, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Reflective Thinking Skills)

For an example illustrating the concepts found in this chapter, view the videos in mymislab.com.

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5. Database Processing LEARNING OBJECTIVES Q5-1 Q5-2 Q5-3 Q5-4 Q5-5 Q5-6 Q5-7 Q5-8

Explain the purpose of a database.

Define what a database is.

Define what a database management system (DB MS) is.

Explain how database applications make databases more useful.

Describe how data models are used for database development.

Explain how a data model is transformed into a database design.

Discuss how eHermes can benefit from a database system.

Describe the prospects for data management in 2029.

CHAPTER OUTLINE Q5-1 Q5-2 • • Q5-3 • • • Q5-4 • • • Q5-5 •

What is the purpose of a database?

What is a database?

Relationships among rows Metadata se management system (DBMS)?

Creating the database and its structures Processing the database Administering the database How do database applications make databases more useful?

Traditional forms, queries, reports, and applications Browser forms, reports, queries, and applications Multi-user processing How are data models used for database development?

What is the entity-relationship data model? o Entities o Relationships Q5-6 How is a data model transformed into a database design?

• Normalization o Data integrity problems o Normalizing for data integrity o Summary of normalization • Representing relationships • Users’ role in the development of databases Q5-7 How can eHermes benefit from a database system?

Q5-8 2029?

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Learning Catalytics is a “bring your own device” student engagement, assessment, and classroom intelligence system. It allows instructors to engage students in class with realtime diagnostics. Students can use any modern, web-enabled device (smartphone, tablet, or laptop) to access it. For more information on using Learning Catalytics in your course, contact your Pearson Representative.

SECURITY GUIDE Big Data… Losses 1. Think about how the trend of capturing and storing data has affected you. What types of data have been generated about you, and where are these data located? What data have you generated yourself? Can you do anything to manage access to or the security of these data?

The bulk of data generated by a college student will be in social media. This is a great opportunity to point out that comments, photos, and videos uploaded by students to social media platforms will likely remain on the Internet forever. Other data points will include articles about sports or fine arts accomplishments in high school, medical data kept by doctors and hospitals, etc. The reality is that system/social media platform users can often do very little to manage the security of and access to their own data; we simply have to trust the personnel managing those systems to ensure that our data are protected.

2. Search the Web to identify a new data-driven application being used by IBM’s Watson. Describe how this new application might provide a competitive advantage for the adopting organization.

Even a casual search will reveal that Watson is being used or considered for countless applications. Students will find examples of everything from health and business applications to fantasy football and even cooking. This question should generate some interesting discussions on the power of big data and how technology and the big data movement can impact virtually every industry.

3. The feature mentions the continuing technological tension between security and convenience. How has this tension affected your own interactions with computers?

Do you err on the side of security or convenience when creating and managing your own security “policies”?

The best example of how this tension plays out in the life of students will be the security policies of their university. Students have to create a password to access registration, tuition, and course content systems. They will also have to change these passwords somewhat regularly. These are basic security measures and are likely not very demanding. Regarding their own security “policies,” each student has to decide whether or not to password-lock their phone, if they use security on the WiFi in their apartment (and if so, what type of security), and what privacy settings they will choose to use on social media sites.

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4. Have you or anyone you know purchased home automation devices? Based on a lack of security found in many of these devices, are you willing to accept the risk that comes with these devices in exchange for the convenience they provide?

Students will respond to this question differently depending on their interest in technology and their aversion to risk. Some students who are excited about technology, data, and automation will risk the security vulnerabilities of these devices for the sake of the “cool” factor or the convenience it provides. Other students may simply not care about gadgets or having access to data about household devices. An important point to make here is that there is a difference in how people perceive technology and that there will always be even a small subset of people who are willing to sacrifice security for the convenience or value technology can provide.

SO WHAT? Slick Analytics 1. Have you chosen to store any of your personal data in the cloud? If so, do you store all of your data or only certain types of data? If not, what factors have inhibited you from trusting your data in the hands of cloud providers? Furthermore, if not, how do you back up your data?

As mentioned in the article, some students may be selective in what they store in the cloud, like photos and financial documents. However, other students may be confident in the protection of their privacy with cloud service providers and store everything in the cloud. A class discussion based on this question should seek to identify students who have opted not to store anything in the cloud. Try to encourage some of these students to share their concerns about cloud storage and identify how they are working to back up their data (if they are doing so at all).

2. The article discussed the specific example of a petroleum company using cloud-based data analytics to improve decision making. What other industries can you identify that would benefit from the ability to capture large quantities of data in real time, analyze the data, and use the results of those analyses to make better decisions?

The airline industry is a great example of an industry in which large quantities of data are captured and stored for a variety of decision-making functions. Everything from ticket pricing, resource management (e.g., fuel, aircraft, and food/beverages), staffing, and gate assignments to equipment maintenance require the storage and interpretation of vast quantities of data. Furthermore, there are sizeable fluctuations in passenger traffic based on holidays, vacation times, and peak business travel periods. The scalability of cloud services can help airlines be both nimble and effective in managing variations in the data and analysis requirements needed due to these fluctuations.

3. The article mentions that some users may decide to manage their data “in house” rather than use cloud-based services and risk losing access to their data in the event of a denial-of-service (DoS) attack. Take a few minutes to research what a DoS

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attack is and how it could prevent users from accessing their data. Be prepared to explain this concept to another classmate or the class.

A denial-of-service attack is an effort made by a malicious actor who is attempting to limit or eliminate the accessibility of a network resource. This can be accomplished using a number of approaches, but the most commonly used approach is based on sending a flood of connection requests to a remote server which is ultimately “overwhelmed” with these requests and crashes. Once the system crashes, legitimate attempts to access the resources or information provided by the target system will fail.

4. In a business setting, what types of organizations would place greater value on security rather than convenience? What types of organizations would prioritize convenience over security?

Organizations providing health care services are especially focused on securing patient data. Law enforcement agencies also must ensure that data they have stored for the purposes of criminal investigations are not tampered with or compromised in any way to ensure a proper chain of custody. On the other hand, companies dealing with marketing services or sports analytics surely want to have some sort of security to protect their data assets and proprietary algorithms; however, these types of industries are less sensitive to security breaches than the initial examples that were provided (and typically do not deal with the federal regulations that govern many security-focused industries like the healthcare industry).

USING YOUR KNOWLEDGE 5-4. a.

Visit www.acxiom.com. Navigate the site to answer the following questions.

According to the Web site, what is Acxiom’s privacy policy? Are you reassured by its policy? Why or why not?

There is a section on the Acxiom web site focused on ethical data use. Within this section, Acxiom provides an e-book and several videos devoted to principles for ethical data use and consumer privacy. Acxiom takes a strong position that companies need to build trust with their customers through ethical practices for data collection and use.

Students in general today do not seem too concerned about privacy issues. It might be instructive to have students brainstorm a list of all the pieces of personal information they leave scattered about as they visit various Web sites in their daily lives. This activity might help illuminate how critical it is for companies such as Acxiom to treat privacy concerns seriously. (LO: 3, Learning Outcome: Discuss best practices for using and managing databases, AACSB: Reflective Thinking Skills)

b. Make a list of 10 different products that Acxiom provides.

Data Audience Cloud Audience Propensities

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Data Packages Data Quality Global Solutions InfoBase Personicx Services Audience Monetization Digital Tramsofrmation Services Digital Marketing Platform Solutions Identity Solutions Analytics Solutions Audience Solutions Collaboration Solutions (LO: 3, Learning Outcome: Discuss best practices for using and managing databases, AACSB: Analytic Skills) c. Describe Acxiom’s top customers.

Acxiom offers solutions that are tailored to the following industries: o Automotive o Credit Card o Education o Government o Health Care o High Tech o Insurance o Investments o Media and Communications o Retail and Consumer Markets o Retail Banking o Travel and Entertainment (LO: 3, Learning Outcome: Discuss best practices for using and managing databases, AACSB: Analytic Skills) d. Examine your answers in parts b and c and describe, in general terms, the kinds of data that Acxiom must be collecting to be able to provide those products to those customers.

It appears that Acxiom is collecting consumer purchase transaction data, investment transaction data, health-related data, travel-related data, and a large variety of demographic data. (LO: 3, Learning Outcome: Discuss best practices for using and managing databases, AACSB: Analytic Skills) e. What is the function of InfoBase?

Infobase is the largest repository of timely, up-to-date customer intelligence, including buying activity, health-related data, and travel-related data. (LO: 3, Learning Outcome: Discuss best practices for using and managing databases, AA

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CSB: Analytic Skills) f. What is the function of PersonicX? PersonicX is a household-level segmentation and visualization suite that offers multiple segmentation systems, reporting, analytic and mapping tools to help implement segmentation best practices. (LO: 3, Learning Outcome: Discuss best practices for using and managing databases, AAC SB: Analytic Skills) g. In what ways might companies like Acxiom need to limit their marketing so as to avoid a privacy outcry from the public?

Many consumers would be shocked to see the comprehensive data that is maintained about them by companies like Acxiom. It is probably in Acxiom’s best interests to stay “under the radar” rather than draw attention to the data they have collected. (LO: 3, Learning Outcome: Discuss best practices for using and managing databases, AACSB: Reflective Thinking Skills) h. Should there be laws that govern companies like Acxiom? Why or why not?

Student answers may vary on this issue. Some may take the position that collecting data like Acxiom has done is perfectly fine in the name of free enterprise. Others may feel some concern about all of this data being aggregated with a high potential for misuse. (LO: 3, Learning Outcome: Discuss best practices for using and managing databases, AAC SB: Reflective Thinking Skills) i. Should there be laws that govern the types of data services that governmental agencies can buy from companies like Acxiom? Why or why not?

This question could produce some interesting discussion in class. Does a government agency have any less right to purchase this data than a company who wants to use it to “know their customers” better? On the other hand, do you really want the government having access to all this personal data about you? (LO: 3, Learning Outcome: Discuss best practices for using and managing databases, AA CSB: Reflective Thinking Skills)

COLLABORATION EXERCISE 5 5-5.

• • • • •

Study Figure 5-27 to understand the entities and their relationships. Justify each of the cardinalities in this model.

Customer / Item: a Customer may sell many Items; an Item is sold by one Customer.

An Item instance is optional for a Customer; a Customer instance is required for an Item.

A MobileStore may contain many Items; an Item is contained in one MobileStore.

An Item instance is optional for a MobileStore; a MobileStore instance is required for an Item.

An Item may be the basis of many ClassifiedProducts; a ClassifiedProduct is based on one Item.

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•

A ClassifiedProduct instance is optional for an Item; an Item instance is required for a ClassifiedProduct instance.

(LO: 1, Learning Outcome: Discuss best practices for using and managing databases, AACSB: Analytic Skills)

5-6.

Working with your team, develop a list of seven queries that together use all of the entities in Figure 5-27.

Student answers will vary; here is a sample list of queries.

1. List the items offered for sale by each customer for a particular month.

2. List all the items in a particular mobile store.

3. List all the items in a particular mobile store at or below a list price.

4. List all the items offered by customer X at a specific mobile store.

5. List all the classified product items for a specific mobile store.

6. List all the items in a particular mobile store for a specific seller type.

7. List the items at a mobile store grouped by condition.

(LO: 6, Learning Outcome: Discuss best practices for using and managing databases, AACSB: Analytic Skills)

5-7.

Modify the E-R model in Figure 5-27 to include a Manufacturer entity that is related to the ClassifiedProducts entity. Create the relationship, and specify and justify the relationship’s cardinalities.

In the above model, we assume that each classified product is produced by one and only one manufacturer, and each manufacturer produces zero or possibly more classified products. An instance of a manufacturer is required for an instance of a classified product; an instance of a classified product is optional for an instance of a manufacturer.

(LO: 5, Learning Outcome: Discuss best practices for using and managing databases, AACSB: Analytic Skills) 5-8.

Discuss the advantages and disadvantages of the model you created in your answer to question 5-7 and the model in Figure 5-27.

It will be much easier to keep the data up to date in the new model since we can change the contact information for a manufacturer in one place rather than have to search through all classified product records to change the contact information.

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The disadvantage is a slightly slower search process because of the added entity.

(LO: 6, Learning Outcome: Discuss best practices for using and managing databases, AACSB: Analytic Skills) 5-9.

Transform the data model in Figure 5-27 into a relational database design. Hint: Create a table for each entity and relate those tables as shown in 5-6.

(LO: 6, Learning Outcome: Discuss best practices for using and managing databases, AACSB: Analytic Skills) 5-10. Create an Access database for your design in question 5-9.

No specific answer provided. An activity to be performed by the team.

(LO: 6, Learning Outcome: Discuss best practices for using and managing databases, AACSB: Analytic Skills) 5-11. Fill your database with sample data. Because you do not have files on a server, leave the URL column blank.

No specific answer provided. An activity to be performed by the team.

(LO: 6, Learning Outcome: Discuss best practices for using and managing databases, AACSB: Analytic Skills) 5-12. Using the Access query facility, process each of the seven queries that you created in your answer to question 5-6.

Student answers will vary. A sample of results is shown below for the queries posed in 5-6: 1. List the items offered for sale by each customer for a particular month (in this example, November 2018).

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2. List all the items in a particular mobile store (in this example, Mobile Store #2).

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3. List all the items in a particular mobile store at or below a list price (in this example, Items in Mobile Store #1 below $100).

4. List all the items offered by customer X at a specific mobile store (in this example, Carol Williams at Mobile Store #1).

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5. List all the classified product items for a specific mobile store (in this case, for Mobile Store #2).

6. List all the items in a particular mobile store for a specific seller type (in this case, Regular customers at Mobile store #1).

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7. List the all the items listed by date received for all mobile stores.

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CASE STUDY 5 5-13. Explain why a one-table database could be stored just as readily in Excel as in Access.

Since Dean is tracking data on just one theme (pianos) he could use a spreadsheet and adequately manage his piano inventory. (LO: 1, Learning Outcome: Discuss best practices for using and managing databases, AACSB: Use of Information Technology) 5-14. Justify the decision to use Access to store the piano database.

Planning ahead and recognizing some of the questions he will want to answer in the future leads to the conclusion that being able to query a database will very useful. If a spreadsheet was used, the answers could only be produced through sorting methods and would not be very satisfactory. (LO: 1, Learning Outcome: Discuss best practices for using and managing databases, AACSB: Use of Information Technology) 5-15. Examine the columns in Figure 5-32. Name three characteristics of pianos that are not represented in this table.

Several items come to mind that are not included. Date acquired, price paid, repairs/renovations needed, repairs/renovations made; when the sound quality or other condition features were last assessed. (LO: 5, Learning Outcome: Discuss best practices for using and managing databases, AACSB: Analytic Skills) a. If you were a consultant advising Dean, what criteria should you and he use in deciding whether to include that additional data?

Any time changes are being considered to an information system; the costs and benefits must be weighed. Dean should consider whether having the additional facts about his inventory available will be worth the cost of adding these fields and filling them in for his existing inventory records. (LO: 5, Learning Outcome: Discuss best practices for using and managing databases, AACSB: Analytic Skills) b. Is this database a model of an inventory of pianos, or is it a model of Dean’s model of an inventory of pianos? Explain the difference.

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particular situation precisely. (LO: 5, Learning Outcome: Discuss best practices for using and managing databases, AACSB: Analytic Skills) 5-16. Suppose, in addition to the data about pianos, Dean wants to store data about the manufacturer such as its address (or last known address), its years of operation, and general comments about that manufacturer. a. Design a Manufacturer table.

ManufacturerID (autonumber) (primary key) Name (text) Street Address (text) City (text) State (text) Zipcode (text) Years of operation (text) Comments (LO: 6, Learning Outcome: Discuss best practices for using and managing databases, AACSB: Use of Information Technology) b. Alter the design of the Piano table (Figure 5-32) to represent the relationship between Piano and Manufacturer. State and justify any assumptions.

Add the ManufacturerID field to the Piano table as a foreign key and create a oneto-many relationship between Manufacturer and Piano. Assumption is that one manufacturer produced many pianos; a particular piano is made by one and only one manufacturer. (LO: 6, Learning Outcome: Discuss best practices for using and managing databases, AACSB: Use of Information Technology) 5-17. Using the data in Figure 5-35, draw conclusions about the effect of location on piano sound quality. Justify your statements using this data.

It appears that there are more poor sound quality pianos in the north tent, but there are a couple of caveats: there are far fewer pianos stored in the south tent; we don’t know how long any piano has been in the tent; we don’t know when the sound quality was assessed; we don’t know the sound quality when the piano was first stored to know if it has changed during storage. (LO: 4, Learning Outcome: Discuss best practices for using and managing databases, AACSB: Analytic Skills) 5-18. Explain the statement, “A database is an abstraction of some aspect of a business.” Using this example, explain the ways that processing an abstraction is more effective than examining pianos. Generalize your observation to databases for business in general.

The database is an abstraction of the actual inventory of pianos. It is far more convenient and probably more accurate to process the database than to attempt to process the actual pianos spread all over Dean’s property. This is also true of databases in business in general. For example, if we have a database that tells us our inventory levels in three warehouses, it is far easier to answer questions about

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what is in stock by querying the database than going out and looking in all three warehouses themselves. (LO: 2, Learning Outcome: Discuss best practices for using and managing databases, AACSB: Analytic Skills) 5-19. This database will soon become useless if it is not kept up to date. List procedures that Dean needs to create and follow to keep his database current.

Dean should have a form he uses to remind him of all the facts he needs about new pianos he acquires. He must record every fact he can when a piano arrives and enter it into the database completely and accurately. When he repairs a piano, the repairs must be recorded for the correct piano. If a piano is sold or disposed of, it must be deleted or moved into an archive table. (LO: 7, Learning Outcome: Discuss best practices for using and managing databases, AACSB: Analytic Skills)

For an example illustrating the concepts found in this chapter, view the videos in mymislab.com.

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The Cloud

LEARNING OBJECTIVES Q6-1 Explain why organizations are moving to the cloud.

Q6-2 Describe how organizations use the cloud.

Q6-3 Explain the network technology supporting the cloud.

Q6-4 Describe how the Internet works.

Q6-5 Explain how Web servers support the cloud.

Q6-6 Discuss how eHermes can use the cloud.

Q6-7 Describe how organizations can use cloud services securely.

Q6-8 Discuss the prospects for use of the cloud in 2027.

CHAPTER OUTLINE Q6-1 Why are organizations moving to the cloud?

• Cloud computing o Elastic o Pooled o Over the Internet • Why do organizations prefer the cloud?

• When does the cloud not make sense?

Q6-2 How do organizations use the cloud?

• Resource elasticity • Pooling resources • Over the Internet • Cloud services from cloud vendors o Transportation as a service o Types of cloud service offerings • Content delivery networks • Using Web services internally Q6-3 What network technology supports the cloud?

• What are the components of a LAN? • Connecting your LAN to the Internet o Digital subscriber line (DSL) o Cable line o WAN wireless connection

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Q6-4 How does the Internet work?

• The Internet and the U.S. postal system • Step 1: Assemble package (packets) • Step 2: Put name on package (domain names) • Step 3: Look up address (IP address) o IP addresses o DNS • Step 4: Put address on package (IP address on packet) • Step 5: Put registered mail sticker on package (TCP) • Step 6: Ship package (packets transported by carriers) o Carriers o Net neutrality Q6-5 How do web servers support the cloud?

• Three-tier architecture • Watch the three tiers in action!

• Service-oriented architecture (SOA) • A SOA analogy • SOA for three-tier architecture • Internet protocols • TCP/IP protocol architecture o Internet Protocols: http, https, smtp, and ftp o WSDL, SOAP, XML, and JSON Q6-6 How can eHermes use the cloud?

• SaaS services at eHermes • PaaS services at eHermes • IaaS services at eHermes Q6-7 How can organizations use cloud services securely?

• Virtual private networks (VPN) o A typical VPN • Using a private cloud • Using a virtual private cloud Q6-8 2029?

Learning Catalytics is a “bring your own device” student engagement, assessment, and classroom intelligence system. It allows instructors to engage students in class with realtime diagnostics. Students can use any modern, web-enabled device (smartphone, tablet, or laptop) to access it. For more information on using Learning Catalytics in your course, contact your Pearson Representative.

SECURITY GUIDE

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“IRS Systems Overtaxed” 1. Is it time for you to upgrade either your phone or your laptop? If so, what are the indicators that you look for to determine whether your device is beginning to become unstable or fail? What other types of legacy systems have you encountered?

Students answers will vary depending on their individual experiences.

2. The IRS system crash of 2018 is the most recent example of a high-profile ITinfrastructure debacle with the U.S. government. Can you think of any other recent examples of government-related IT problems?

Although the furor has died down, the Web sites providing access to health exchanges associated with the Affordable Care Act had numerous flaws and issues and received considerable attention in the media.

3. From a security perspective, what are the pros and cons of the government using such outdated IT systems for handling tax filings?

On one hand, legacy systems build on older, mainframe technology are considered very secure, based on the architecture such systems employ. The problem described in the article on the 2018 Tax Day illustrates the other side of the coin. These older systems can be unstable and need to utilize modern equipment and methods.

4. What types of interactions do you have with the cloud? Do you back up personal documents, like photos and music, on the cloud? Do you use it strictly for productivity-related files and collaboration? What are the benefits and drawbacks of the cloud for you relative to storing files locally on your devices?

Student responses to this question will vary. Unless a student has experienced a loss of important data personally, they may not be diligent about backup procedures. This is a great opportunity to coach them about the potential consequences of not being diligent about data and file management practices.

SO WHAT? Quantum Learning 1. Think about the last time that you learned something new. How long did it take for you to master it? What types of learning mechanisms did you use and how varied were your approaches to learning? Think about the inherent limitations of computers in learning new operations – what would a computer have to do to master this same skill?

Students will come up with various examples of things that they have recently learned; obvious answers will likely be related to things that students may have recently learned for class (e.g., for an exam or quiz). Computers can manage raw facts relatively easily, but more complex behaviors can be extremely difficult or impossible for a computer to master (e.g., mastering language). The point of this question is to further illustrate the divide between human learning and computer learning.

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2. The feature provides the example of a company using social media analysis to evaluate customer sentiment and then customize advertising based on consumers’ tweets. Why would this type of analysis require a machine learning approach?

It is very difficult for computers to understand language. If students happened to see IBM’s Watson compete on Jeopardy, they will have seen examples of how even very powerful computers can misinterpret language. Using computers to analyze social media is challenging because it is based on interpreting speech and language.

Machine learning is appropriate for this application because computers can use this approach to work to identify trends and patterns in language in order to improve the accuracy of interpreting language. Using more of a rigid, algorithmic approach would not be appropriate and would yield noisy and inaccurate results.

3. Conduct a search on the Internet to find the binary codes for ASCII keyboard characters. A common first task that programmers use to test their code is to have the system print “Hello World” on the screen. Use the binary codes for these characters to write “Hello World” as a computer would see it.

“Hello World” in Binary Code: 0100100001100101011011000110110001101111 0101011101101111011100100110110001100100 4. The article mentions that quantum computers will have tremendous processing power and revolutionize a number of computer applications. Conduct an Internet search to identify specific examples of how quantum computers may be used in the future.

A Time magazine article (http://time.com/5035/9-ways-quantum-computing-willchange-everything/) identified the following nine areas that could benefit from quantum computing: safer airplanes due to enhanced software; discovering new celestial bodies with more robust analyses of data collected by telescopes; optimized election campaigns due to the ability to conduct more rigorous marketing analyses; boosted GDP through more complex and targeted advertising; enhanced cancer detection due to more robust diagnostic models for understanding diseases; improved autonomous vehicles; more precise weather forecasts; optimized traffic patterns for different types of travel; and more impactful pharmaceuticals.

USING YOUR KNOWLEDGE 6-4. Go to http://aws.amazon.com and search for AWS database offerings. Explain the differences among Amazon’s RDS, DynamoDB, ElastiCache, Redshift services, and Neptune. Which of these would you recommend for storing eHermes’ data? (By the way, whenever you query the Internet for any AWS product, be sure to include the keyword AWS in your search. Otherwise, your search will result in Amazon’s lists of books about the item you’re searching for.)

These four products are part of Amazon’s Platform as a Service EC2 DBMS offering.

Customers can obtain DBMS software as a part of the platform it obtains from Amazon. Amazon RDS includes several relational database options, including MySQL (open-source), Postgres, Oracle, SQL Server, and Amazon Aurora.

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DynamoDB is a NoSQL DBMS product that stores objects in JSON format. Elasticache is an in-memory caching service. Redshift is a petabyte-scale data warehouse service. Amazon Neptune is a fast, reliable, fully-managed graph database service that makes it easy to build and run applications that work with highly connected datasets. Since DynamoDB is designed to be a document-storage database, it may be the most appropriate for storing eHermes’ image files. (LO: 6, Learning Outcome: Discuss best practices for using and managing databases, AACSB: Analytic Skills) 6-5. Suppose Seth wants eHermes to set up a private internet, and he justifies this request on the basis of better security. Explain why that is not a good decision and rebut his claim about security by suggesting that eHermes use a VPC. Justify your suggestion.

The major cloud service vendors employ thousands of highly trained, skilled specialists to create, manage, administer, and improve their cloud services. It is nearly impossible to imagine that the security they provide could be done better in a private internet managed by the IT department at eHermes. If security is paramount, eHermes should consider a Virtual Private Cloud, which is a subset of a public cloud with highly restricted, secure access. (LO: 6, Learning Outcome: Describe the major types of computer hardware and software used by companies, AACSB: Analytic Skills) 6-6. In five sentences or fewer, explain how the cloud will affect job prospects for you between now and 2029.

There will be fewer small companies providing information systems services to their local communities. The number of employees involved in managing the computing infrastructures associated with the cloud is relatively small. Because of the availability of cheap computing infrastructure, there may be more startup businesses that can quickly and cheaply acquire the computing infrastructure they need. The demand for people who know how to create, use, and manage information systems will continue to be strong. (LO: 7, Learning Outcome: Describe the effects of ecommerce on the modern business world, AACSB: Reflective Thinking Skills)

COLLABORATION EXERCISE 6 6-7. Using the knowledge of this chapter and the intuition of the members of your team, summarize threats that cloud services present to such ISVs. If our business has been focused on creating and maintaining an IT infrastructure for other businesses, it is likely that we will experience difficult times as existing customers and new businesses choose to utilize cloud-based computing resources.

The cloud is a viable, inexpensive alternative to owning and managing computing resources, hence, our traditional business services will no longer be needed. (LO: 4, Learning Outcome: Learning Outcome: Describe the effects of e-commerce on the modern business world, AACSB: Reflective Thinking Skills)

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6-8. Suppose your team owns and manages one of these ISVs. You learn that more and more of your clients are choosing SaaS cloud services like Google for email, rather than setting up local email servers. a. What, if anything, can you do to prevent the encroachment of SaaS on your business?

There is probably very little we can do to prevent the encroachment of SaaS on our business. The economics are overwhelmingly in favor of the SaaS providers.

Perhaps we could try and keep our customers in the dark about their options that now include the cloud, but eventually they will become aware of it and they might resent that we were not forthcoming about the most cost effective ways for them to obtain their computing resources. (LO: 4, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Reflective Thinking Skills) b. Given your answer to question 6-8a, identify three alternative ways you can respond.

One option is to just abandon the work we have always done completely and find something else to do. However, companies will still need our technological expertise, only now they require help in dealing with the cloud environment. So, a second option is to modify our business model to provide consulting services to our previous customers. They will need help selecting the right cloud-based computing options and in building their databases on the cloud. A third option involves a training focus in which we offer training programs for small businesspeople in learning to use cloud-based resources in general and learning to use the specific systems obtained from the cloud vendors. (LO: 4, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Reflective Thinking Skills) c. Which of the three responses identified in your answer to question 6-8b would you choose? Justify your choice.

Student responses will vary. There will be a significant change in the ISV’s business. Under existing conditions, the business emphasizes technical expertise.

Now the ISV business will need to emphasize detailed understanding of their customers’ needs for the cloud-based environment. The focus will be on what you can DO with cloud-based offerings to make the business more efficient and effective, not just providing the technical expertise to create the infrastructure.

Services will be very people-oriented and will be much less technically-oriented.

It is not likely that everyone on the ISV’s staff can adapt to the more peoplecentered focus of the business. Some highly technical folks are not well suited to providing training and support to business people. Some students may feel the outlook is too pessimistic, but others will most likely focus on new opportunities associated with helping small businesses take advantage of the cloud successfully.

(LO: 4, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Reflective Thinking Skills)

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6-9. Even if SaaS eliminates the need for email and other local servers, there will still remain viable services that you can provide. Name and describe those services.

Students’ ideas for services that could be provided for each of these components will vary, but will most likely include training and support to help organizations fully utilize these resources. (LO: 5, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Reflective Thinking Skills) 6-10. Suppose instead of attempting to adapt an existing ISV to the threat of cloud services, you and your teammates decide to set up an entirely new business, one that will succeed in the presence of SaaS and other cloud services. Looking at businesses in and around your campus, identify and describe the IS needs those businesses will have in the cloud services world.

Students’ ideas are likely to cover a wide range of options. For example, if your university has a medical school, they may identify ways to create and support telemedicine-related businesses. (LO: 4, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Reflective Thinking Skills) 6-11. Describe the IS services that your new business could provide for the business needs you identified in your answer to question 6-10.

The purpose of telemedicine is to extend the expertise of medical specialists to underserved locations. If we specialized in this field, we could help attract medical talent interested in this practice, train them on how to utilize the telemedicine capabilities, and recruit and train medical personnel in remote areas to participate in the telemedicine initiatives. (LO: 4, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Reflective Thinking Skills) 6-12. Given your answers to questions 6-7 through 6-11, would you rather be an existing ISV attempting to adapt to this new world or an entirely new company?

Compare and contrast the advantages and disadvantages of each alternative.

Student responses to this question will vary. Clearly, an existing ISV will face challenges in “reinventing” itself, especially adapting to new training roles rather than more technical roles. A business making a fresh start doesn’t have that baggage, but also doesn’t have the established client base as a foundation for the business. (LO: 4, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Reflective Thinking Skills) 6-13. Changing technology has, for centuries, eliminated the need for certain products and services and created the need for new products and services. What is new, today, however, is the rapid pace at which new technology is created and adapted. Using cloud services as an example, create a statement of the posture that business professionals should take with regard to technology in order to thrive in this fastchanging environment. Notice the verb in this assignment is thrive, and not just survive.

The most important lesson to be learned here is that technological change is constant.

While the changes can be confusing and even frightening, business professionals should welcome the opportunities provided by new technological options and look to the future instead of trying to cling to the past. The information technology world is Copyright © 2020 Pearson Education, Inc.

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one of constant change and evolution. No company can assume their market will remain constant over time, no matter how large it is. (LO: 4, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Reflective Thinking Skills)

CASE STUDY 6 Saleforce.com NEW 6-14. Go to www.salesforce.com, and click on the “Try for Free” button. Fill in the required fields and start your free trial. This will take you to a test site full of data for a company named Acme. Click on the “Take a Tour of Salesforce.com” link on the upper left-hand side of the screen. Walk through the automated tour labeled “Manage Your Pipeline (13 steps).”

No specific answer; a task to be performed. a. Why would these dashboards be useful to a marketing or sales manager?

The dashboards enable sales or marketing managers to keep the current value of Key Performance Indicators at their fingertips and identify positive and negative trends quickly. (LO: 2, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Reflective Thinking Skills) b. How could Salesforce.com help a sales manager increase sales?

The sales manager will be more fully informed about the activities and performance of the sales staff. Problems and opportunities will be easier to identify and address quickly. (LO: 2, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Reflective Thinking Skills) c. How long do you think it would take you to learn the basics of Salesforce.com?

Student opinions will vary. (LO: 2, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Reflective Thinking Skills) 6-15. Explain why a company like Salesforce.com requires so much money to become successful. Once the software is built, what are the incremental costs of adding additional customers? How does this affect profitability?

Creating a complex software product such as Salesforce requires a tremendous amount of initial capital. The software has to be conceived, built, tested, and a production environment created. The software must be sold to customers and those customers require support. The software must be continually enhanced with new features. All customers require stellar performance, so resources are continually needed to expand the infrastructure as customers are added. While the incremental costs of adding a customer is low, as more and more customers are added the system must scale up. Since the CRM software market is very competitive, Salesforce must

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keep its pricing attractive, although switching costs will make it less likely to lose customers once they have become SalesForce customers. (LO: 6, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Analytic Skills) 6-16. Why was it critical to choose the right team of people to get Salesforce.com off the ground? What types of skills would be necessary to create a CRM like Salesforce.com?

Any new venture that involves creating a new product (CRM software) delivered in a new way (SaaS) will need an array of talent in order to succeed. From product visionaries and designers, development experts, infrastructure and operations experts, to marketers, accountants, financial managers, etc., many types of talents and skills are needed to be successful in this endeavor. (LO: 6, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Analytic Skills) 6-17. Why did tech giants like SAP, Oracle, Microsoft, and IBM miss the opportunity to produce a SaaS CRM like Salesforce.com? What might keep large tech companies from identifying potential opportunities like Salesforce.com?

The tech giants operated at the time on a business model that involved selling licenses to software. It probably took a new business with a fresh point of view to demonstrate the potential of the SaaS model. (LO: 6, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Analytic Skills) 6-18. What could be driving the tremendous growth in Salesforce.com’s stock price and revenue growth? Why do you think investors put such a high premium on Salesforce.com’s stock?

Salesforce has continually offered superior products and is engaged in extending its product line and cloud computing expertise. Clearly the market is impressed with its progress and prospects for the future. (LO: 6, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Reflective Thinking Skills) 6-19. Why do you think Salesforce.com chose trust, growth, innovation, and equality as its four pillars of success? Why are these important for a company that provides CRM software?

The founder of Salesforce left his previous position with Oracle because he wanted to do something different. The pillars of success reflect his values in terms of the business he wanted to create, and also provide a very positive message to customers using Salesforce products. (LO: 6, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Reflective Thinking Skills) 6-20. CRM software is just one type of software service. Companies might be open to trying additional types of SaaS after having a great experience with Salesforce.com.

What other types of software might be good candidates for future expansion for Salesforce.com? Why?

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Students’ ideas about this will vary. Reasonable candidates might be employee relationship management systems and contractor relationship management systems.

(LO: 6, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Reflective Thinking Skills) For an example illustrating the concepts found in this chapter, view the videos in mymislab.com.

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Collaboration Information Systems

LEARNING OBJECTIVES Q7-1 Describe the two key characteristics of collaboration.

Q7-2 Describe three criteria for successful collaboration.

Q7-3 Explain the four primary purposes of collaboration.

Q7-4 Describe the requirements for a collaboration information system.

Q7-5 Explain how to use collaboration tools to improve team communication.

Q7-6 Explain how to use collaboration tools to manage shared content.

Q7-7 Explain how you can use collaboration tools to manage tasks.

Q7-8 Discuss which collaboration IS is right for your team.

Q7-9 Discuss your ideas on how we may collaborate in 2029.

CHAPTER OUTLINE Q7-1 What are the two key characteristics of collaboration?

• Importance of constructive criticism • Guidelines for giving and receiving constructive criticism • Warning!

Q7-2 What are three criteria for successful collaboration?

• Successful outcome • Growth in team capability • Meaningful and satisfying experience Q7-3 What are the four primary purposes of collaboration?

• Becoming informed • Making decisions o Operational decisions o Managerial decisions o Strategic decisions o The decision process o The relationship between decision type and decision process o Decision making and collaboration systems • Solving problems • Managing projects o Starting phase o Planning phase

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o Doing phase o Finalizing phase Q7-4 What are the requirements for a collaboration information system?

• The five components of an IS for collaboration • Primary functions: communication and content sharing Q7-5 How can you use collaboration tools to improve team communication?

Q7-6 How can you use collaboration tools to manage shared content?

• Shared content with no control • Shared content with version management on Google Drive • Shared content with version control o Permission-limited activity o Document checkout o Version history o Workflow control Q7-7 How can you use collaboration tools to manage tasks?

• Sharing a task list on Google Drive • Sharing a task list using Microsoft SharePoint Q7-8 Which collaboration IS right for your team?

• Three sets of collaboration tools o The minimal collaboration tool set o The good collaboration tool set o The comprehensive collaboration tool set • Choosing the set for your team • Don’t forget procedures and people!

Q2-9 2029?

Learning Catalytics is a “bring your own device” student engagement, assessment, and classroom intelligence system. It allows instructors to engage students in class with realtime diagnostics. Students can use any modern, web-enabled device (smartphone, tablet, or laptop) to access it. For more information on using Learning Catalytics in your course, contact your Pearson Representative.

SECURITY GUIDE Security in the Sharing Economy 1. Take a minute to consider this hypothetical scenario: You open up your laptop to find that your university email account and your social media accounts have been compromised. The attackers indicate that they are going to post your stolen data on the Web. After digging around, you are able to figure out some details about how they were able to access your system. The exploited vulnerability is one that most students at your school also have. Would you want to stand up at the beginning of each of your

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classes and share information about your breach to help other students avoid being compromised?

This is an opinion question, so student answers will vary. Some students might be uncomfortable and unwilling to publicly talk about the breach; however, others may be motivated to share their experience so that others can take steps to avoid the problem.

2. The article makes a comparison between cyberattacks and traditional warfare. Can you think of any ways in which cyberwar is actually different from traditional warfare?

Student answers will vary. One significant way that cyberwar is different from traditional war is that traditional war is usually intended to result in the attacker taking control of the target. In cyberwar, the attacker usually wants to take control of resources owned by the target but doesn’t not necessarily want to take complete control.

3. Do you think that the SEC, state governments, and the federal government should articulate clearer regulations about disclosing cyberattack information? Why wouldn’t the initial policies put in place be more clear or effective?

This is an opinion question, so student answers will vary. There is no clear right way to respond to an attack, so it is difficult to craft regulations that are right for every situation.

4. The article identifies some arguments against information sharing. Can you think of any other reasons why mandating cyberattack information sharing could be ineffective or harmful?

The main concern is that when information is shared, little benefit occurs to the organizations in terms of preventing future attacks. If strong benefits of sharing could be demonstrated then the rationale for mandating cyberattack information sharing would be stronger.

SO WHAT? Future of the Gig Economy 1. What are some of the downsides of being a worker in the gig economy? In spite of these downsides, it is likely that you will find yourself participating in the gig economy at some point in the future. Does this type of working arrangement interest you, and if so, what type of work would you do and for what type of organization?

The downsides are many, including lack of benefits, uncertainty about the future, stress, and isolation. Students will vary as to whether they are interested in this arrangement and in what way.

2. Are there any technologies that may help gig workers feel more integrated with the clients for which they work?

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The use of video chats and web-enabled meetings can help gig workers feel more connected to their clients.

3. The article references a Harvard Business Review piece that enumerates four factors to help gig workers be successful (namely, place, routines, purpose, and people). Can you think of any other elements that could help gig workers be more productive or satisfied?

Organizations using gig employees could make more deliberate efforts to include these workers in meetings, keeping them informed and soliciting their opinions when appropriate.

4. A legal precedent is being set that continues to isolate gig workers from many of the benefits that traditional employees receive. Do you agree with this legal precedent?

How has this precedent contributed to the growth of companies employing gig workers? How may it be harmful?

Since this is an opinion question, student responses will vary.

USING YOUR KNOWLEDGE 7-4. This exercise requires you to experiment with OneDrive. You will need two Office IDs

to complete this exercise. The easiest way to do it is to work with a classmate. If that is not possible, set up two Office accounts, using two different Outlook.com addresses. a. Go to www.onedrive.com and sign in with one of your accounts. Create a memo about collaboration tools using the Word Online. Save your memo. Share your document with the email in your second Office account. Sign out of your first account.

(If you have access to two computers situated close to each other, use both of them for this exercise. If you have two computers, do not sign out of your Office account. Perform step b and all actions for the second account on that second computer. If you are using two computers, ignore the instructions in the following steps to sign out of the Office accounts.)

No answer required; a task to be performed by the student. (LO: 6, Learning Outcome: Explain how IS can enhance systems of collaboration and teamwork, AACSB: Information Technology) b. Open a new window in your browser. Access www.onedrive.com from that second window and sign in using your second Office account. Open the document that you shared in step a.

No answer required; a task to be performed by the student. (LO: 6, Learning Outcome: Explain how IS can enhance systems of collaboration and teamwork, AACSB: Information Technology) c. Change the memo by adding a brief description of content management. Do not

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save the document yet. If you are using just one computer, sign out from your second account.

No answer required; a task to be performed by the student. (LO: 6, Learning Outcome: Explain how IS can enhance systems of collaboration and teamwork, AACSB: Information Technology) d. Sign in on your first account. Attempt to open the memo and note what occurs.

Sign out of your first account and sign back in with your second account. Save the document. Now, sign out of your second account and sign back in with the first account. Now attempt to open the memo. (If you are using two computers, perform these same actions on the two different computers.)

No answer required; a task to be performed by the student. (LO: 6, Learning Outcome: Explain how IS can enhance systems of collaboration and teamwork, AACSB: Information Technology) e. Sign in on your second account. Re-open the shared document. From the File menu save the document as a Word Document. Describe how OneDrive processed the changes to your document.

No answer required; a task to be performed by the student. (LO: 6, Learning Outcome: Explain how IS can enhance systems of collaboration and teamwork, AACSB: Information Technology)

COLLABORATION EXERCISE 7 7-5. Collaboration:

a. What is collaboration? Reread Q7-1 in this chapter, but do not confine yourselves to that discussion. Consider your own experience working in collaborative teams, and search the Web to identify other ideas about collaboration.

Student answers will vary based on individual experiences with teams. Their ideas on collaboration should focus on people working together to achieve a common goal, result, or work product. Feedback and iteration are involved so that the results of the collaborative effort are greater than could be produced by any of the individuals working alone. (LO: 1, Learning Outcome: Explain how IS can enhance systems of collaboration and teamwork, AACSB: Reflective Thinking) b. What characteristics make for an effective team member? Review the survey of effective collaboration skills in Figure 7-1 and the guidelines for giving and receiving critical feedback and discuss them as a group. Do you agree with them?

Student answers will vary, depending on their team experiences. (LO: 1, Learning Outcome: Explain how IS can enhance systems of collaboration and teamwork, AACSB: Reflective Thinking) c. What skills or feedback techniques would you add to this list? What conclusions can you, as a team, take from this survey? Would you change the rankings in Figure 7-1?

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Student answers will vary, depending on their team experiences. (LO: 1, Learning Outcome: Explain how IS can enhance systems of collaboration and teamwork, AACSB: Reflective Thinking) 7-6. Ineffective Collaboration:

a. What would you do with an ineffective team member? First, define an ineffective team member. Specify five or so characteristics of an ineffective team member.

Student answers will vary. The characteristics of an ineffective team member will include lack of interest and commitment, unwillingness to give or take criticism, unwillingness to listen, and indifference. (LO: 1, Learning Outcome: Explain how IS can enhance systems of collaboration and teamwork, AACSB: Reflective Thinking) b. If your group has such a member, what action do you, as a group, believe should be taken?

Student answers will vary, depending on their team experiences. Students are typically not too tolerant of ineffective team members. However, due to the shortterm nature of most student teams, students are not always willing to boot ineffective team members off the team, preferring instead to just work around them. (LO: 1, Learning Outcome: Explain how IS can enhance systems of collaboration and teamwork, AACSB: Reflective Thinking) c. In the business world, an ineffective team member can be fired. But in most academic environments, students can’t fail other students for being an ineffective team member. Explain how differences or similarities in business and academic environments may affect how you deal with an ineffective team member.

In general, student groups decide to work around an ineffective team member, realizing that the grade is the most important outcome and preferring to avoid conflict for the length of time the team exists. In business, teams may exist for long periods of time so teams are more likely to confront ineffective team members with the goal of getting them to change their behaviors. (LO: 1, Learning Outcome: Explain how IS can enhance systems of collaboration and teamwork, AACSB: Reflective Thinking) 7-7. Effective Collaboration:

a. How do you know you are collaborating well with your group?

Student answers will vary. Characteristics of collaborative success center on the output of the group being superior to the output that could have been created by an individual working alone, including such things as being more productive, more creative, and generating more and better ideas. (LO: 1, Learning Outcome: Explain how IS can enhance systems of collaboration and teamwork, AACSB: Reflective Thinking)

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b. When working with a group, how do you know whether you are effectively giving or receiving constructive criticism?

The best way is to assess whether the final outcome of the project has improved as a result of the exchange of constructive criticism. (LO: 1, Learning Outcome: Explain how IS can enhance systems of collaboration and teamwork, AACSB: Reflective Thinking) c. Specify five or so characteristics that indicate collaborative success. How can you measure those characteristics?

There are a number of elements that indicate collaborative success. Depending on the purpose, we can verify that a decision was made, the problem was solved, or the project work product was produced. Closely tied to those verifiable outcomes, we can check to see that our time limits were met and the budget constraints were met. These are also measurable elements. Some teams want to work very efficiently and feel success if they produced an acceptable outcome while minimizing effort. In a student setting, the grade earned on the project is a measurable element that indicates collaborative success. Business teams are more long-lived than student teams, so business teams may also look at growth in team capabilities. Following the completion of a project, the team may self-assess progress made in developing more effective and efficient work processes. Finally, teams may self-assess whether the project experience has been meaningful and satisfying. Team members can be asked their opinions as to whether they felt the tasks performed were viewed to be important by the team, whether they felt they had been given the recognition they deserved for their work, and whether they felt a sense of belonging to the group. By reviewing the results of such a survey, the team can identify strengths and weaknesses of the team processes and potentially make changes to create a more satisfying and meaningful team experience. (LO: 2, Learning Outcome: Explain how IS can enhance systems of collaboration and teamwork, AACSB: Relective Thinking) d. Briefly explain what your team likes and dislikes about using your new collaboration system.

Student answers will vary depending on the work done in parts 1-3 of this exercise. (LO: 1, Learning Outcome: Explain how IS can enhance systems of collaboration and teamwork, AACSB: Information Technology) 7-8. Types of communication:

a. What types of communication (synchronous or asynchronous) does your team use most often?

Student answers will vary depending on individual team experience. (LO: 1, Learning Outcome: Explain how IS can enhance systems of collaboration and teamwork, AACSB: Relective Thinking) b. Why do you choose to use that type of communication?

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Student answers will vary depending on individual team experience. (LO: 1, Learning Outcome: Explain how IS can enhance systems of collaboration and teamwork, AACSB: Relective Thinking) c. What factors influence your choice of collaboration tools?

Student answers will vary depending on individual team experience. (LO: 1, Learning Outcome: Explain how IS can enhance systems of collaboration and teamwork, AACSB: Relective Thinking) d. Which tools do you use most often?

Student answers will vary depending on individual team experience. (LO: 1, Learning Outcome: Explain how IS can enhance systems of collaboration and teamwork, AACSB: Relective Thinking) e. From your team experience, have virtual or face-to face tools proved to be more effective? Give an example of when a face-to-face meeting was more effective.

Give an example when a virtual meeting was more effective.

Student answers will vary depending on individual team experience. (LO: 1, Learning Outcome: Explain how IS can enhance systems of collaboration and teamwork, AACSB: Relective Thinking)

CASE STUDY 7 Airbnb 7-9. Airbnb launched its Web site and started renting rooms in 2008. But the Internet had

been widely used since 1995. Why did it take 13 years for someone to start a company like Airbnb? Were there technological, social, or economic factors that kept this concept from becoming successful before 2008? Why didn’t any of the existing large technology companies like Google, Apple, Microsoft, Amazon, or Facebook start a company like Airbnb?

The success of Airbnb’s launch in 2008 was enhanced by the economic downturn that was occurring at the time, especially in the real estate market. Many people who owned real estate were finding themselves “upside down,” owing more than their properties were worth, and frequently were struggling to meet their loan obligations.

The opportunity to bring in some much needed revenue through renting out space to travelers was immediately appealing. Also, due to the economic downturn, travelers were looking for budget-friendly places to stay. This convergence helped explain why the market was open to the Airbnb concept in 2008. Why the tech giants didn’t start a company such as Airbnb is explained by the fact that those companies were in completely different lines of business and were not in a position to recognize this trend. (LO: 4, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Reflective Thinking) 7-10.

Many successful companies are started to fulfill a need. What need did Airbnb

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fill? Why weren’t hotels fulfilling this need? Are hotels and Airbnb fulfilling the same need, or are they offering different products for different needs? Would consumers use both traditional hotels and Airbnb for different purposes? Why? The need filled by Airbnb is based on homeowners who were cash-strapped and needing to generate revenue in order to keep their properties, and travelers who were looking for budget-friendly housing options. Hotels provide a predictable experience for a cost. Airbnb appealed to travelers with a sense of adventure and the potential for housing with more amenities (e.g., kitchens). Consumers definitely might use both types of housing options for different purposes. Airbnb is very popular for vacationers who want to stay in a more authentic local place, while hotels will always appeal to business travelers. (LO: 4, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Reflective Thinking) Suppose you work for a large investing firm. Your boss asks you to determine the value of Airbnb as a company because he plans on buying stock in its upcoming initial public offering (IPO). a. How would you determine its value?

The market valuation of any new venture is a very difficult proposition. The valuation must be based on a careful analysis of the venture’s business model (ways to make money), the expected demand for the new venture’s products/services, and a cleareyed assessment of the quality of the venture’s management. (LO: 4, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Analytical Skills)

7-11.

b. Would you value Airbnb like a hotel chain, a tech startup, or another type of company?

Since Airbnb is based on an entirely new business model (collaborative consumption) it does not seem appropriate to slot it into an existing company category for valuation purposes. It involves aspects of the hotel industry, tech industry, and social media.

(LO: 4, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Analytical Skills) c. How would you determine Airbnb’s future growth potential? Could it expand into other markets? Which ones?

Since this is an opinion question, student answers will vary. By the time of Airbnb’s initial public offering, the company had already demonstrated the viability of its business model. Future growth estimates would be based on assessing sales projections in the initial venture (short-term housing) and prospects for expansion, such as short-term rental of vehicles. (LO: 4, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Analytical Skills) Describe some of the economic impacts of collaborative consumption. Do companies like Airbnb and Uber help economies or hurt them? Why? Since this is an opinion question, student answers will vary. Owners of property are benefitted by generating revenue from their properties. Travelers receive a satisfying housing experience and directly compensate the property owners. Hotels do lose out

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on the revenue that could have been derived from these travelers. In some cases, travelers may take trips that otherwise would not have occurred because of the experience and value offered through Airbnb (larger properties can accommodate larger groups/families at a much more affordable cost). (LO: 4, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Reflective Thinking) What are some other markets that could benefit from collaborative consumption?

What might hinder these new markets from being profitable?

Since this is an opinion question, student answers will vary. As mentioned in 7-11 c., short-term vehicle rental could be an extension of collaborative consumption. A vehicle owner is not using a vehicle and offers it to another consumer for short-term use. One of the restraining factors in this new market is the complications of insurance and liability involved with the use of a vehicle. (LO: 4, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Reflective Thinking)

7-13.

Why are customer reviews and ratings so important to hosts offering rooms on Airbnb? Why would reviews be more important to a smaller host compared to a large 200-room hotel? Would feedback be important to all collaborative consumption industries? Why? Since this is an opinion question, student answers will vary. Reviews and feedback are critical for hosts to market their properties. While photos of the property are important, potential guests will value more subjective insights from people who have stayed in the property and can speak to more subtle aspects of its features and location. These types of reviews are an essential aspect of collaborative consumption industries because trust needs to be established between the parties involved, and reviews help strengthen the chance for trust to develop. Hotels do not require this person-to-person trust as they provide a predictable experience. (LO: 4, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Reflective Thinking)

7-14.

Collaborative consumption utilizes idle resources. Could this same principle be applied to the human labor market? How? What impact might this have on the workforce? Airbnb doesn’t own any hotels, yet it is the largest accommodation provider in the world. Could the largest organizations in the world have no employees? How? In a sense, any time an organization hires an independent third party to perform work, it is using collaborative consumption. There are examples of this model in segments of the labor market, such as Angie’s List that helps homeowners find people to perform home repair and maintenance work, or Wag that helps dog owners find dog walkers. So far, in labor markets, we have more narrow niches rather than one huge comprehensive marketplace. If these narrow niches were brought together under one umbrella, then we could have enormous organizations with no employees. Companies could organize themselves to consist of only contracted workers for all roles and not have any “permanent” employees. (LO: 4, Learning Outcome: Explain how IS can be

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used to gain and sustain competitive advantage, AACSB: Reflective Thinking)

For an example illustrating the concepts found in this chapter, view the videos in mymislab.com.

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Kroenke & Boyle - Using MIS 11th Ed. - Instructor’s Manual

8 Processes, Organizations, and Information Systems LEARNING OBJECTIVES Q8-1 Q8-2 Q8-3 Q8-4 Q8-5 Q8-6

Describe the basic types of processes.

Explain how information systems can improve process quality.

Explain how information systems eliminate the problems of information silos.

Describe how CRM, ERP, and EAI support enterprise processes.

List the elements of an ERP system.

Explain the challenges of implementing and upgrading enterprise information systems.

Q8-7 Describe how inter-enterprise IS solve the problems of enterprise silos.

Q8-8 Discuss prospects and challenges for enterprise systems in 2029.

CHAPTER OUTLINE Q8-1 What are the basic types of processes?

• How do structured processes differ from dynamic processes?

• How do processes vary by organizational scope? o Workgroup processes o Enterprise processes o Inter-enterprise processes Q8-2 How can information systems improve process quality?

• How can processes be improved? o Change the process structure o Change process resources o Change both process structure and process resources • How can information systems improve process quality? o Performing an activity o Augmenting a human performing an activity o Controlling data quality process flow Q8-3 How do information systems eliminate the problems of information silos?

• What are the problems of information silos?

• How do organizations solve the problems of information silos?

• An enterprise system for patient discharge Q8-4 How do CRM, ERP, and EAI support enterprise processes?

• The need for business process engineering • Emergence of enterprise application solutions • Customer relationship management (CRM) • Enterprise resource planning (ERP) • Enterprise application integration (EAI)

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Q8-5 • • • • • • • Q8-6 • • • • • Q8-7 Q8-8

8-2

What are the elements of an ERP system?

Hardware ERP application programs ERP databases Business process procedures Training and consulting Industry-specific solutions Which companies are the major ERP vendors?

What are the challenges of implementing and upgrading enterprise information systems?

Collaborative management Requirements gaps Transition problems Employee resistance New technology How do inter-enterprise IS solve the problems of enterprise silos?

2029?

Learning Catalytics is a “bring your own device” student engagement, assessment, and classroom intelligence system. It allows instructors to engage students in class with realtime diagnostics. Students can use any modern, web-enabled device (smartphone, tablet, or laptop) to access it. For more information on using Learning Catalytics in your course, contact your Pearson Representative.

SECURITY GUIDE It’s not me… it’s you.

1. Have you ever witnessed someone stealing something at work? If so, it was probably very apparent to both you and the perpetrator that they were doing something wrong.

Why do you think employees are so willing to steal data when they would be unlikely to steal tangible items like cash, laptops, or other expensive organizational assets?

Based on the discussion in the article of the white-collar crime triangle, many people cannot rationalize stealing tangible property from a company (e.g., a laptop) as it is clearly a crime. However, the value of data can be very difficult to quantify and in many cases certain types of data may appear to have no inherent value at all (or a person can rationalize that the data have no value). Furthermore, the information age continues to be plagued from a legal standpoint in that there is a lack of legal precedent for so many different types of “digital” activities. For example, it is very difficult to prosecute someone for threatening someone on social media as laws have not been created yet for many types of behaviors that would be considered crimes if not committed in a digital context.

2. Take a moment to search the Internet for cases of white-collar crime. Find a specific example and see if you can identify the three elements of the fraud triangle as being factors that contributed to that crime being committed.

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Students will likely identify a variety of white-collar incidents which have occurred and been reported in the popular press. It should be fairly easy to identify the pressure (the person felt a desperate need for the money), rationalization (they developed the IP for a product or everyone else in the department got a bonus but the perpetrator did not and felt he/she deserved one) and the opportunity (the password into the system was right there on a sticky note attached to the monitor).

3. How do you feel about the fact that many companies are investing in tools to monitor employee behavior? Would you want to work for a company that audits your emails and analyzes your activity on the company’s network?

Students will have different opinions on this question based on their personal feelings about privacy and employee monitoring. This is yet another example of the tension that occurs between those who want more security for the greater good and are willing to sacrifice individual privacy versus those who feel that personal privacy should not be infringed upon for any reason.

4. The article mentions that encryption can be a tactic used to thwart employees from

taking data with them. Explain how encryption can be used effectively in this context.

Encryption can be used to render data inaccessible if it is taken off a given machine and accessed elsewhere (e.g., refer to the encryption tools offered in the Windows operating systems). In this context, data can be encrypted on company servers so that it is accessible to employees but not accessible if it is removed from those systems.

Setting up this type of encryption could reduce the motivation and likelihood that an employee would try to steal data and use it to secure a job elsewhere.

SO WHAT? Digital Dining 1. Take a few minutes to reflect on the nature of the work your friends do for a living.

How many of those jobs could be outsourced to robots? What jobs wouldn’t be outsourced?

Student responses will vary. Generally, students will recognize that jobs requiring routine, physical tasks are more vulnerable to automation, while jobs requiring person to person interactions, judgment, and knowledge are less vulnerable to automation.

2. When was the last time you interacted with a process that had been automated? What role did human workers previously fill? What roles are now carried out by machines?

Is this automated process more efficient/effective now that it is automated? Are there ways in which humans were actually better at executing this process?

Students will identify many different examples of automated processes. In some cases, the automated process works as well as or better than the human-based process, but in some cases, the automated process is less effective due to its rigidity and the time it takes to complete.

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3. Flippy the burger-flipping robot has undergone rigorous testing before being deployed in restaurants. However, would you have any reservations about eating food prepared by a robot? Are there other applications of robots in which you would be uncomfortable with them replacing human workers?

Since this is an opinion question, student responses will vary. Robotic applications that are more personal in nature are likely to provide examples in which students are uncomfortable with human replacements (e.g., dental hygienists).

4. The debate over promoting innovation/automation versus endangering jobs is a common theme in the news. Do you agree that workers and the overall economy will be able to adapt over time and replace as many jobs as are taken via automation?

This is an opinion question; students’ responses will vary.

USING YOUR KNOWLEDGE 8-4. Google or Bing each of the top five ERP vendors discussed in Q8-5. In what ways

have their product offerings changed since this text was written? Do those vendors have new products? Have they made important acquisitions? Have they been acquired? Have any new companies made important inroads into their market share?

Student answers will vary depending on when this exercise is performed. A review of ERP trends at the end of 2018 found several notable items: • An increasing interest in ERP SaaS and cloud-based ERP continues eroding the market share of Tier I ERP vendors such as SAP and Oracle, especially among small and mid-size customers.

• Best-of-breed solutions will continue to chip away at single-system ERP software. With more companies moving away from big, single-system ERP deployments, there will be a continuing opportunity for niche and best-of-breed E RP systems to capture market share. Larger ERP vendors will continue to provide more niche solutions to counter the advent of these smaller cloud providers.

Vendors like Oracle and Infor, with their best-of-breed solution focus, will be better positioned to respond to customer demand of this type. In addition, look for this trend to continue driving merger and acquisition activity as more ERP vendors look for industry solutions to augment their core ERP systems.

• ERP vendors continue to expand analytics capabilities as an essential component of their product offerings.

(LO: 8, Learning Outcome: Describe the uses of enterprise systems and enterprise resource planning, AAC SB: Analytical skills) 8-5. Using your own knowledge gained from Chapters 4 and 6, how do you think mobile

systems and the cloud will affect ERP solutions? Explain how mobile ERP might benefit the types of personnel discussed in the bicycle manufacturing example from Q8-4.

There is no doubt that ERP solutions will be affected by mobile systems and the cloud. ERP vendors are challenged at this time because their systems are built on very complex, non-cloud-based architectures. These systems will not be easy to

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change, but ERP customers are going to start demanding some of the benefits of cloud systems and access to ERP systems via mobile devices. Any of the roles discussed in Q8-4 could benefit from mobile ERP, especially the salesperson role. ER P vendors are currently investing billions of dollars in acquiring companies with knowledge/solutions in mobile and cloud-based computing. (LO: 8, Learning Outcome: Describe the uses of enterprise systems and enterprise resource planning, A ACSB: Analytical skills)

COLLABORATION EXERCISE 7 The County Planning Office 8-6. Explain why the processes in Figures 8-21 and 8-22 are classified as enterprise

processes rather than as departmental processes. Why are these processes not interorganizational processes?

These processes span the entire enterprise including several different departments, but do not span separate organizations. Therefore they are considered enterprise systems, not departmental and not interorganizational. (LO: 1, Learning Outcome: Describe the uses of enterprise systems and enterprise resource planning, AACSB: Analytical skills) 8-7. Using Figure 8-8 as an example, redraw Figure 8-21 using an enterprise information

system that processes a shared database. Explain the advantages of this system over the paper-based system in Figure 8-21.

The process is sequential and each stage can take quite a bit of time. With the old system, there is no way to know where an application id in the process, and finding an application sitting in someone’s inbox could be difficult. With the new system, it will be easy to track the application and know its status, plus it can be routed to the correct next step immediately. (LO: 5, Learning Outcome: Describe the uses of enterprise systems and enterprise resource planning, AACSB:

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Analytical skills) 8-8. Using Figure 8-10 as an example, redraw Figure 8-22 using an enterprise

information system that processes a shared database. Explain the advantages of this system over the paper-based system in Figure 7-22.

The advantage of this system over the paper-based system is that there is no expense to copy the application and send copies to each department for review. The departments can work simultaneously and can also see the results of the other departments’ analyses that are recorded in the centralized database. (LO: 5, Learning Outcome: Describe the uses of enterprise systems and enterprise resource planning, A ACSB: Analytical skills) 8-9. Assuming that the county has just changed from the system in Figure 8-21 to the one

in Figure 8-22, which of your answers in questions 8-7 and 8-8 do you think is better? Justify your answer.

The ability to work simultaneously and also to have access to the results of the other department’s work tips the balance in favor of the solution in question 3. This workflow should be more efficient and effective than that shown in question 2. (LO: 5, Learning Outcome: Describe the uses of enterprise systems and enterprise resource planning, AACSB: Analytical skills) Assume your team is in charge of the implementation of the system you recommend in your answer to question 8-9. Describe how each of the five challenges discussed in Q8-6 pertain to this implementation. Explain how your team will deal with those challenges.

• Collaborative management – There is no single manager of the process so all of the departments have to coordinate to complete the process. Disputes will have to be resolved with a collaborative process, which probably does not currently exist.

• Requirements gaps – An enterprise software solution will probably not fit the

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needs of this system exactly, so the organization usually must adapt to the software’s processes.

• Transition problems – Changing to the new system will be challenging to the organization and will cause some disruption in productivity.

• Employee resistance – The employee’s natural resistance to change and fear of change must be overcome through leadership and training.

• New technology—the solution will be affected by new technologies as they evolve, particularly the use of the cloud and mobile technology.

(LO: 6, Learning Outcome: Describe the uses of enterprise systems and enterprise resource planning, AAC SB: Analytical skills)

CASE STUDY 8 A Tale of Two Interorganizational IS 8-11.

Summarize the purpose and intended benefits of a healthcare exchange.

A healthcare exchange is a mechanism that enables people to shop for and obtain health insurance coverage. Exchanges are intended to help people determine the best coverage based on each person’s specific situation. (LO: 7, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Analytical skills)

8-12.

Explain why a health care exchange requires an interorganizational information system.

The exchanges are interorganizational because the exchange takes a person’s personal data and contacts a variety of governmental agencies to determine eligibility for government programs; then insurance programs are evaluated to find the best fit for that person’s situation. The exchange links individuals, multiple government agencies, and insurance companies which clearly makes it an interorganizational information system. (LO: 7, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Analytical skills)

8-13.

Using knowledge from this chapter, summarize the difficulties and challenges of developing interorganizational information systems.

Interorganizational systems increase the complexity of a development process significantly. Each organization has its own goals and objectives for the project, which may be very different. Each organization has different ways of developing and managing the project. Communication between the organizations may be lacking. There is typically not a single leader for the project and each organization’s managers may have different views of the project. The lack of a common goal and a single vision for the project plus potentially different levels of management oversight can make these projects very difficult to complete successfully. (LO: 7, Learning Outcome: Discuss best practices for selecting, evaluating, and managing information systems projects, AACSB: Analytical skills)

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8-14.

Healthcare exchanges must utilize personal and confidential data about their users. Write a one-paragraph policy that stipulates responsible processing and storage of this data.

Student responses will vary. Look for students to recognize and include statements stressing the importance of this data. Security of this data is paramount and users must have confidence that their information is safe or they will be unwilling to trust and use the system. Because of the sensitivity of health data, the policy statements might establish that all data be stored in encrypted form and all data transmissions also be encrypted. (LO: 7, Learning Outcome: Describe different methods of managing IS security, AACS B: Analytical skills)

8-15.

Explain what you believe are the reasons for the Access C T success.

The managerial structure for the project helped provide a single vision for the project. The leadership did not allow the teams involved in the project to work at cross purposes. People with an excellent background and skills were hired for the project, so clearly the project was funded appropriately to hire the best possible talent, not just the cheapest. (LO: 7, Learning Outcome: Discuss best practices for selecting, evaluating, and managing information systems projects, AACSB: Analytical skills)

8-16.

Read the Executive Summary of the First Data report located at: http://www.oregon.gov/DAS/docs/co_assessment.pdf. Summarize the report’s findings.

The Executive Summary provides a good overview of challenges and difficulties encountered on this project. One of the strongest messages conveyed in this material was the lack of a single point of authority for the project. There were numerous examples of contradictory decisions and teams working at cross purposes. Many good project management practices were ignored. Budget limitations prevented some of the needed contributors from participating (e.g., a systems integrator). The lack of management oversight is also a strong theme that emerged. (LO: 7, Learning Outcome: Discuss best practices for selecting, evaluating, and managing information systems projects, AACSB: Analytical skills)

8-17.

Using the facts described in this case and your answer to question 8-16, list five key learnings you can take from the Access C T and Cover Oregon projects.

Students’ lists may vary, but will most likely include the following items: • Strong and visible top management support and involvement • Single point of authority • Team members with appropriate background and skills • Follow best practices for management of complex IT projects • Ensure accountability from all team contributors (LO: 7, Learning Outcome: Discuss best practices for selecting, evaluating, and managing information systems projects, AACSB: Analytical skills)

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For an example illustrating the concepts found in this chapter, view the videos in mymislab.com.

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Social Media Information Systems

LEARNING OBJECTIVES Q9-1 Define a social media information system (SMIS).

Q9-2 Explain how SMIS advance organizational strategy.

Q9-3 Explain how SMIS increase social capital.

Q9-4 Describe how (some) companies earn revenue from social media.

Q9-5 Explain how organizations develop an effective SMIS. Q9-6 Describe an enterprise social network (ESN).

Q9-7 Explain how organizations can address SMIS security concerns.

Q9-8 Discuss social media issues in 2029.

CHAPTER OUTLINE Q9-1 What is a social media information system (SMIS)?

• Three SMIS roles o Social media providers o Users o Communities • SMIS components o Hardware o Software o Data o Procedures o People Q9-2 How do SMIS advance organizational strategy?

• Social media and the sales and marketing activity • Social media and customer service • Social media and inbound and outbound logistics • Social media and manufacturing and operations • Social media and human resources Q9-3 How do SMIS increase social capital?

• What is the value of social capital?

• How do social networks add value to businesses?

• Using social networking to increase the number of relationships • Using social networks to increase the strength of relationships • Using social networks to connect to those with more resources

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Q9-4 How do (some) companies earn revenue from social media?

• You are the product • Revenue models for social media o Advertising o Freemium • Does mobility reduce online ad revenue? o Geofencing Q9-5 How do organizations develop an effective SMIS? • Step 1: Define your goals • Step 2: Identify success metrics • Step 3: Identify the target audience • Step 4: Define your value • Step 5: Make personal connections • Step 6: Gather and analyze data Q9-6 What is an enterprise social network (ESN)?

• Enterprise 2.0 • Changing communication • Deploying successful enterprise social networks Q9-7 How can organizations address SMIS security concerns?

• Managing the risk of employee communication • Managing the risk of inappropriate content o Problems from external sources o Responding to social networking problems o Internal risks from social media Q8-8 2029?

Learning Catalytics is a “bring your own device” student engagement, assessment, and classroom intelligence system. It allows instructors to engage students in class with realtime diagnostics. Students can use any modern, web-enabled device (smartphone, tablet, or laptop) to access it. For more information on using Learning Catalytics in your course, contact your Pearson Representative.

SECURITY GUIDE Social Engineering Bitcoin 1. Why might an insider pose a greater threat to an internal secure system than an outside attacker? How could an insider be a weak link?

Insiders can pose threats in two ways. They may have intentional malice and wish to do damage, or they may have no malicious intent, but make a careless or inadvertent mistake. Because of their insider status, they may be in a position to do significant damage, either maliciously or unintentionally, and therefore can be a weak link. A specific example of this weakness is through an inadvertent mistake caused by a

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social engineering attack directed at an insider. The attack causes the insider to fall for a scam and reveal confidential information to the attacker.

2. What is social engineering? How could attackers use social engineering to compromise a secure internal system?

Social engineering is an effect to convince someone to reveal confidential information while trying to be polite, friendly, and helpful. An attacker could contact someone and pose as an auditor for a bank who is trying to follow up on some “discrepancies” discovered in the target’s accounts. The attacker could try to convince the target to reveal account numbers and usernames and passwords so that the problems can be corrected. If the target falls for the scam the attacker has an entry point into the user’s accounts and possibly more of the bank’s systems.

3. What is cryptocurrency mining? How does it generate money?

Cryptocurrency mining is the process of validating recent cryptocurrency transactions and distributing the updated “ledger” to all of the devices associated with that cryptocurrency’s network. In return for performing this function, miners can receive a payment in that cryptocurrency or a percentage of the transaction’s value.

4. How would attackers use social engineering to scam users into mining? If so, what could the end result of this behavior be?

Social engineers have begun scamming people into investing in mining equipment that does not exist, convincing victims to contribute the idle computing power of their systems to mine cryptocurrencies but never paying them for their contribution, soliciting would-be miners to buy fraudulent hardware (that is not as powerful as advertised) for use in mining, and selling people cryptocurrencies that do not actually exist. The end result could be that no one is willing to participate in this market if the risks become too high.

SO WHAT? Enhanced Golf Fan 1. Sports aren’t the only type of television programming that has benefitted from advances in technology. Think about how other types of programming have changed in light of new innovations in hardware, software, mobile devices, and Big Data.

Almost everything that we see on TV today has been improved over the last decade due to advances in technology. News broadcasts now feature drone flyovers of disaster zones and otherwise unreachable locations. Political shows feature real-time polling of viewers on Twitter and through other voting mediums. Reality shows leverage sophisticated voting tools and social media integration to allow the audience to comment on the show in real time and help decide who goes on to the next round and who will get cut. Nature shows benefit from drones and other advanced photography devices to capture images of rare animals and extreme environments.

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2. Golf and football are two examples of sports that are working to incorporate data analytics into broadcasts. How could other sports use data analytics to enhance the viewing experience?

Other sports can work to integrate the data and analytics that golf and football have been testing. RFID tags have the potential to be used in virtually every sport, especially in arena-based sports as the setup and use of tracking devices is especially feasible. The use of these tags will permit precise and insightful information regarding player movements which can make viewing more interesting and coaching more effective.

3. Analytics in sports can clearly enhance sports broadcasts and help coaches. How can access to this type of analysis help current or aspiring athletes?

Aspiring athletes can now capture many forms of data that they can use to improve training. For example, cyclists can now map their routes on GPS and track variations in heart rate, pedaling cadence, speed, power (in watts), etc., in response to various conditions (elevation, temperature, grade, distance). Mining these data to find the most effective training tools/approaches can result in higher levels of performance over time. New wearable devices are also being developed which will allow athletes to track perspiration and the chemical compounds lost through the skin via sweat; these data can be used to govern optimal hydration and sport nutrition.

4. What do you think the next great innovation will be in the paradigm of watching sports on television? Will it be based on advances in hardware, software, data, or some other factor?

Student responses to this question will vary. The sky is the limit on what these innovations will be, and hardware, software, data analytics will all likely play a role in these technological advancements.

USING YOUR KNOWLEDGE 9-4. Visit www.intel.com/content/www/us/en/legal/intel-social-media-guidelines.html.

Explain why Intel’s social media guidelines might accomplish one or more of the common social media strategic goals listed in Figure 9-10.

The guideline on Disclosure will support the social media goals of brand awareness and user engagement. Intel employees are asked to disclose and be transparent about their affiliation with Intel. Such disclosure can be very positive since Intel affiliations are clear and readers will value such transparency. The guideline on Protect Intel also supports the social media goals of brand awareness and user engagement. By not slamming Intel or Intel’s competitors, readers will appreciate the high standards followed by Intel employees and will value their posts and contributions.

(LO: 6, Learning Outcome: Discuss the ethical and social issues raised by the use of information systems, AACSB: Ethical Understanding and Reasoning Abilities) 9-5. Visit www.socialmediatoday.com/content/social-media-employee-policy-examples-

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over-100-organizations. Find an organization with a very restricted employee SM policy. Name the organization and explain why you find that policy restrictive. Does that policy cause you to feel positive, negative, or neutral about that company?

Explain.

Student responses will vary depending upon the company selected. A good example of an SM policy that is full of “don’t” messages is that of Baker & Daniels. Baker & Daniels is a law firm and is therefore very careful to define appropriate and inappropriate use of SM communications. This policy is a good example of “what not to do” with social media. (LO: 6, Learning Outcome: Discuss the ethical and social issues raised by the use of information systems, AACSB: Ethical Understanding and Reasoning Abilities)

COLLABORATION EXERCISE 8 9-6. Compare the tech companies’ P/E ratios to the traditional companies’ P/E ratios.

Note that some of the tech companies have very high P/E ratios. (A low P/E is good; a high P/E is bad.) Some don’t even have a P/E ratio because they didn’t turn a profit. As a group, list the reasons why the tech companies have such high P/E ratios.

Are the prices of these companies’ stocks justified given the earnings? Why? Student responses will vary – a task to be performed. Generally, tech companies plow earnings back into the company to build the technical infrastructure that is the foundation for future growth. These investments are depreciated over time and therefore reduce earnings. The high prices of the tech companies’ stocks are based on the market’s perceptions that future earnings will be very positive. (LO: 2, Learning Outcome: Explain how IS can enhance systems of collaboration and teamwork, AACSB: Analytic Skills) 9-7. Identify public tech stocks you believe are undervalued (not limited to this list).

Design an investment portfolio consisting solely of tech stocks that you believe will be profitable. Justify your decision with regard to risk and return on those stocks.

Student responses will vary – a task to be performed. (LO: 2, Learning Outcome: Explain how IS can enhance systems of collaboration and teamwork, AACSB: Analytic Skills) 9-8. Create a free online portfolio of these stocks (i.e., via Yahoo! Finance) and track its

progress. Report on its performance.

Student responses will vary – a task to be performed. (LO: 3, Learning Outcome: Explain how IS can enhance systems of collaboration and teamwork, AACSB: Analytic Skills) 9-9. Could overvalued tech stocks lead to a dot-com 2.0 crash like the original dot-com

crash in 1999–2001? Discuss why this may or may not happen. Summarize your discussion in a couple of paragraphs.

Student opinions may vary. Point out that the first dot-com crash occurred because so much capital had gone in to new business ventures that did not have a well-thought-

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out business model. The ideas were fresh and exciting but in many cases there was a lot of trouble converting the ideas into a real cash flow. Hopefully those same mistakes will not be made again. (LO: 3, Learning Outcome: Explain how IS can enhance systems of collaboration and teamwork, AACSB: Analytic Skills)

CASE STUDY 9 Why is growing the number of users such an important metric for social media companies? How does Metcalfe’s Law relate to the profitability of social media companies?

The number of users of a social media site directly contributes to the value of that social media site. Metcalf’s Law states that the social network’s value is directly related to the number of connected users. Therefore, the more users the higher the value of the social network. (LO: 2, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Analytic Skills)

9-10.

Most social media companies rely on ad revenue as their main source of income.

What are other ways that LinkedIn generates income? Why is it important for a company to have multiple ways of generating income?

LinkedIn offers specialized accounts dedicated to job recruiting as an additional revenue stream. It is important to have a diverse set of revenue streams so that if one stream “dries up” due to competitive pressure, others will still exist. (LO: 4, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Analytic Skills)

9-11.

Why do recruiters and job seekers like LinkedIn? Explain why an employer may dislike LinkedIn. Is there a strategic disadvantage to having your employees list detailed profiles on LinkedIn? Recruiters and job seekers like LinkedIn because of the extensive number of connections that are found. Employers may dislike LinkedIn because it makes it too easy for its employees to look for new opportunities. There is a strategic disadvantage to having your employees list detailed profiles on LinkedIn because those employees may find themselves receiving very desirable job offers. (LO: 3, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Analytic Skills)

9-12.

LinkedIn targets a specific demographic: working professionals. They tend to be older and better educated. Why might advertisers be more interested in this group over others?

Advertisers are attracted to audiences who have the resources to purchase the advertised goods and services. An older and more educated audience presumably controls more resources than a young, uneducated audience. (LO: 4, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Analytic Skills)

9-13.

Microsoft creates software focused on supporting businesses. LinkedIn focuses on creating a platform for business professionals. Does the acquisition of LinkedIn make

9-14.

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sense? What type of synergies could come from integrating products from these two companies?

The synergies discussed in the article involve more seamless integration of the two company’s products, which will add value to LinkedIn and to Microsoft.

(LO: 2, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Analytic Skills) How would the integration of LinkedIn into the Microsoft Office Suite be beneficial?

If LinkedIn is successfully integrated across the Office Suite, LinkedIn will have greater reach and more frequent contact with end users. Consequently, that could lead to rapid growth of its userbase and its profitability.(LO: 2, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Analytic Skills)

9-15.

How would enabling draft résumés in Microsoft Word to update connected LinkedIn profiles be beneficial?

Simplifying the process makes it easier for users to create and keep their profiles updated and makes it more likely users will post profiles in the first place. (LO: 2, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Analytic Skills)

9-16.

Suppose you are advising Microsoft about future acquisitions. Which company would you recommend as a good acquisition? Why? Student answers will vary. Look for students to recognize the variety of uses of social media sites and to link the organization’s particular value chain activities to its social media presences. (LO: 2, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Analytic Skills)

9-17.

For an example illustrating the concepts found in this chapter, view the videos in mymislab.com.

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Information Systems Security

LEARNING OBJECTIVES Q10-1 Describe the goal of information systems security.

Q10-2 Explain the size of the computer security problem.

Q10-3 Explain how individuals should respond to security threats.

Q10-4 Describe how organizations should respond to security threats.

Q10-5 Describe how technical safeguards protect against security threats.

Q10-6 Describe how data safeguards protect against security threats.

Q10-7 Describe how human safeguards protect against security threats.

Q10-8 Discuss how organizations should respond to security incidents.

Q10-9 Discuss information security concerns in 2029.

CHAPTER OUTLINE Q10-1 What is the goal of information systems security?

• The IS security threat/loss scenario • What are the sources of threats? o Human error o Computer crime o Natural events and disasters • What types of security loss exist? o Unauthorized data disclosure o Incorrect data modification o Faulty service o Denial of service o Loss of infrastructure • Goal of information systems security Q10-2 How big is the computer security problem?

Q10-3 How should you respond to security threats?

Q10-4 How should organizations respond to security threats?

Q10-5 How can technical safeguards protect against security threats?

• Identification and authentication o Smart cards o Biometric authentication • Single sign-on for multiple systems • Encryption

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• •

Firewalls Malware protection o Malware safeguards • Design for secure applications Q10-6 How can data safeguards protect against security threats?

• Legal safeguards for data Q10-7 How can human safeguards protect against security threats?

• Human safeguards for employees o Position definitions o Hiring and screening o Dissemination and enforcement o Termination • Human safeguards for nonemployee personnel • Account administration o Account management o Password management o Help-desk policies • Systems procedures • Security monitoring Q10-8 How should organizations respond to security incidents?

Q10-9 2029?

Learning Catalytics is a “bring your own device” student engagement, assessment, and classroom intelligence system. It allows instructors to engage students in class with realtime diagnostics. Students can use any modern, web-enabled device (smartphone, tablet, or laptop) to access it. For more information on using Learning Catalytics in your course, contact your Pearson Representative.

SECURITY GUIDE Largest! Data! Breach! Ever!

1. Most data breaches are found within a few days or weeks. Why did the Yahoo! data breach take so long to be discovered? Would the disclosure of the data breach have been harmful to Yahoo!’s efforts to sell their company?

It is unclear exactly when the data breach was discovered, but it did take over three years for the breach to be disclosed to the public. There is no doubt that disclosure of the breach would negatively impact the company valuation; therefore, the company had an incentive to hide the breach as they tried to find a buyer.

2. Have you been a victim of one of the large security breaches over the past several years? If so, what was the impact of your data being compromised? Did you have to take any actions to try to secure your data or your identity? Have you continued

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being a customer (or using the site) of the company that was compromised? (If you have not been a victim, think about how you would likely respond in this situation.)

Students’ answers will vary, depending on their experience with data breaches. The question about continuing to do business with the company should trigger some interesting classroom discussion.

3. The article reports that several years transpired between the time when the breach occurred and the time when the breach was acknowledged and made public. Why is there so much latency between the incident and the response?

The internal discussions taking place at the time are hard to know as an outsider.

Companies that choose to delay announcing a breach publicly are usually trying to get their response plans in order so that they can mitigate the negative impact of the breach announcement.

4. Compare this breach to the Equifax data breach that also happened recently. (If you are not familiar with the Equifax breach, take a few minutes to conduct an online search and read about it). Was the Equifax breach or the Yahoo! breach worse? Be prepared to defend your opinion.

Students’ opinions on the comparative severity of the two breaches will vary.

Students may feel the Equifax breach is worse than Yahoo because of the nature of the personal financial data compromised. However, in both cases, valuable personal information was stolen.

SO WHAT? New from Black Hat 2017 1. Why would Alex Stamos want security researchers to focus on fixing vulnerabilities rather than finding them?

It is clear that Mr. Stamos wants the security researchers to direct their efforts to fixing real, known threats rather than focusing on more esoteric problems that have little likelihood of occurring. Researchers want to demonstrate their skills at doing more “sexy” research but this distracts from doing work that is really valuable to users.

2. Why would nation-states be interested in developing malware like Industroyer?

This type of malware would likely be most valuable in a cyberwar. Knocking out power and communication systems is a top priority in a cyberwar. It effectively blinds the opposing country and makes counterattacks difficult. Industroyer could give organized nation-state actors the tools to launch an initial salvo in a cyberwar and knock out power for a couple of days.

3. What type of consequences might follow if Industroyer was able to knock out power for more than a week?

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In developed countries like the United States, uninterrupted power is vital for daily operations at hospitals, online retailers, telecom providers, and many others.

Prolonged power losses would be catastrophic.

4. Besides power grids, what other types of infrastructure might nation-states target in a cyberwar? Why would they target these types of infrastructure?

Answers to this question will vary, but might include other essential resources such as the water supply, air traffic control, and other aspects of the transportation system.

5. Suppose Broadpwn malware was released into the wild and was able to immediately propagate between all access points and wireless clients (i.e., smartphones, laptops, and tablets). How long do you think it would take for most systems to be infected?

What might affect the rate of infections?

An exact prediction of the time it would take for most systems to be infected is unclear, but with the prevalence of vulnerable devices today, the propagation process would be very swift.

COLLABORATION EXERCISE 10 10-4.Search the Web for the term computer crime and any related terms. Identify what you and your teammates think are the five most serious recent examples. Consider no crime that occurred more than 6 months ago. For each crime, summarize the loss that occurred and the circumstances surrounding the loss, and identify safeguards that were not in place or were ineffective in preventing the crime.

Students will find various examples of computer crimes that will change over time. A good source of current examples is the US Department of Justice’s Computer Crime and Intellectual Property section’s Web site. A page with current press releases is available. Two current examples include: • “Chinese Intelligence Officers and Their Recruited Hackers and Insiders Conspired to Steal Sensitive Commercial Aviation and Technological Data for Years,” Chinese intelligence officers and those working under their direction, which included hackers and co-opted company insiders, conducted or otherwise enabled repeated intrusions into private companies’ computer systems in the United States and abroad for over five years. The conspirators’ ultimate goal was to steal, among other data, intellectual property and confidential business information, including information related to a turbofan engine used in commercial airliners.. October 30, 2018.

• “Former Genentech Employees Charged with Theft of Trade Secrets,” A federal grand jury indicted Xanthe Lam, Allen Lam, John Chan, and James Quach for stealing trade secrets from Genentech and related charges, announced United States Attorney Alex G. Tse and FBI Special Agent in Charge John F. Bennett.

The indictment, handed down on October 25, 2018, and unsealed today, alleges that the defendants stole confidential Genentech information to help a company in

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Taiwan create and sell drugs similar to those that were created by Genentech.

October 29, 2018.

LO: 2, Learning Outcome: Describe different methods of managing IS security, AACSB: Analytic Skills) 10-5.Search the Web for the term computer crime statistics and find two sources other than the Ponemon surveys cited in Q10-2. a. For each source, explain the methodology used and explain the strengths and weaknesses of that methodology.

Students will find various sources of computer crime statistics that will change over time. Two current examples include: • A number of statistical reports on cybercrime can be found at: https://www.statista.com/markets/424/topic/1065/cyber-crime/ • The Internet Crime Complaint Center Web site provides annual reports (https://www.ic3.gov/media/annualreports.aspx) that detail a variety of Internet crime statistics. The iC3 is a partnership between the FBI and the National White Collar Crime Center which is supported through the Bureau of Justice Assistance. These statistics are based on complaints filed with the iC3 and therefore only reflect actual complaints of cybercrime. (LO: 2, Learning Outcome: Describe different methods of managing IS security, AACSB: Analytic Skills) b. Compare the data in the two new sources to that in Q10-2 and describe differences.

Student responses will vary depending upon the sources found by each team. (LO: 2, Learning Outcome: Describe different methods of managing IS security, AACSB: Analytic Skills) c. Using your knowledge and intuition, describe why you think those differences occurred.

Student responses will vary depending upon the sources found by each team. (LO: 2, Learning Outcome: Describe different methods of managing IS security, AACSB: Analytic Skills) 10-6.Go to http://www.ponemon.org/library and download the 2017 report (or a more recent report if one is available). a. Summarize the survey with regard to safeguards and other measures that organizations use.

The 2017 report finds that investments in security technologies must be assessed and potentially reallocated to higher-value security technologies (LO: 2, Learning Outcome: Describe different methods of managing IS security, AACSB: Analytic Skills) b. Summarize the study’s conclusions with regard to the efficacy of organizational security measures.

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The 2017 report encourages organizations to undertake extreme pressure testing rather than reliance on compliance alone. Also organizations are encouraged to invest in breakthrough innovation, where the highest returns on investment are being generated. (LO: 2, Learning Outcome: Describe different methods of managing IS security, AACSB: Analytic Skills) c. Does your team agree with the conclusions in the study? Explain your answer.

Student responses may vary. (LO: 2, Learning Outcome: Describe different methods of managing IS security, AACSB: Analytic Skills) 10-7.Suppose that you are asked by your boss for a summary of what your organization should do with regard to computer security. Using the knowledge gained in this chapter and your answer to the questions 10-4 through 10-6 above, create a PowerPoint presentation for your summary. Your presentation should include, but not be limited to: a. Definition of key terms b. Summary of threats c. Summary of safeguards d. Current trends in computer crime e. What senior managers should do about computer security f. What managers at all levels should do about computer security Student responses will vary. Look for the following important takeaway messages from this exercise: • The median average cost of computer crime is increasing.

• Malicious insiders are an increasingly serious security threat.

• Data loss is the principal cost of computer crime.

• Survey respondents believe mobile device data is a significant security vulnerability.

• Security safeguards work.

(LO: 2, Learning Outcome: Describe different methods of managing IS security, AACSB: Analytic Skills)

CASE STUDY 10 Hitting the Target …

10-8.Why did the attackers spear-phish a contractor to Target?

Attackers look for any vulnerability they can find. Spear-phishing a contractor worked and gave them an entry point that was less noticeable than a direct attack on Target. (LO: 5, Learning Outcome: Describe different methods of managing IS security, AACSB: Analytic Skills) 10-9.Explain how a third-party contractor could weaken an organization’s overall security.

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As this example demonstrates, the contractor was vulnerable to spear-phishing and opened the door to these attackers on Target. Any third-party contractor can increase our vulnerability – so it is necessary to include them in our security programs. (LO: 5, Learning Outcome: Describe different methods of managing IS security, AACSB: Analytic Skills) 10-10. Describe how data was stolen from Target.

Credentials were stolen from the contractor and used to break into a vendor server on Target’s network. Malware was introduced that found its way to the POS system, which then stole data from the POS terminals and directed the stolen data back to the criminals. (LO: 5, Learning Outcome: Describe different methods of managing IS security, AACSB: Analytic Skills) 10-11. How might a data loss at one organization affect other organizations?

Many other organizations are affected; for example, banks often must issue new bank cards after such an event. (LO: 5, Learning Outcome: Describe different methods of managing IS security, AACSB: Analytic Skills) 10-12. Explain why large organizations are attractive targets for attackers.

Large organizations are obvious targets because if the attack is successful, the odds of substantial gain are greater. (LO: 5, Learning Outcome: Describe different methods of managing IS security, AACSB: Analytic Skills) 10-13. Why might chip-and-pin cards reduce this type of theft?

Chip-and-Pin cards prevent the cloning of credit/debit cards from stolen data. (LO: 5, Learning Outcome: Describe different methods of managing IS security, AACSB: Analytic Skills) 10-14. Why didn’t Target have a CISO before the data breach?

Most organizations believe their security is being managed effectively until a breach occurs, then a security specialist such as a CISO is hired to place even more emphasis on the issue. In some cases, this may just be window-dressing for PR purposes, but could also be a sincere effort to make security measures more rigorous. (LO: 5, Learning Outcome: Describe different methods of managing IS security, AACSB: Analytic Skills)

For an example illustrating the concepts found in this chapter, view the videos in mymislab.com.

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Kroenke & Boyle - Using MIS 11th Ed - Instructor’s Manual

11 Information Systems Management LEARNING OBJECTIVES Q11-1 Describe the functions and organization of the IS department.

Q11-2 Explain how organizations plan the use of IS. Q11-3 Explain the advantages and disadvantages of outsourcing.

Q11-4 Describe your users’ rights and responsibilities regarding the IS organization.

Q11-5 Discuss the future of information systems management in 2029.

CHAPTER OUTLINE Q11-1 What are the functions and organization of the IS department?

• How is the IS department organized?

• Security officers • What IS-related job positions exist?

Q11-2 How do organizations plan the use of IS? • Align information systems with organizational strategy • Communicate IS issues to the executive group • Develop priorities and enforce them within the IS department • Sponsor the steering committee Q11-3 What are the advantages and disadvantages of outsourcing?

• Outsourcing information systems o Management advantages o Cost reduction o Risk reduction • International outsourcing • What are the outsourcing alternatives?

• What are the risks of outsourcing? o Loss of control o Benefits outweighed by long-term costs o No easy exit Q11-4 What are your user rights and responsibilities?

• Your user rights • Your user responsibilities Q11-5 2029?

Learning Catalytics is a “bring your own device” student engagement, assessment, and classroom intelligence system. It allows instructors to engage students in class with realtime diagnostics. Students can use any modern, Web-enabled device (smartphone, tablet, or laptop) to access it. For more information on using Learning Catalytics in your course, contact your Pearson Representative.

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SECURITY GUIDE Watching the Watchers 1. The article discusses the use of security audits to ensure that employees are not doing anything that they should not be doing on their employer’s systems. In what other contexts are audits conducted?

Audits can be used in virtually every industry. Students will likely identify accounting as the most common application of audits as accounting auditors work to make sure that a company’s financial records are accurate. These audits can be further categorized into specialized audits, including financial, compliance, operations, investigative, and information systems. However, any type of organization can conduct an audit to ensure that the subject matter is free of misstatement. Even research can be audited to ensure that data reported in a journal paper are not fabricated or tampered with.

2. Define what a rootkit is and conduct a search online for examples of how rootkits have been used.

Rootkits are malicious pieces of software that are used to gain unauthorized access to another system or piece of software. Rootkits are often the basis for security breaches—a quick search of the Internet will likely identify numerous breaches in which rootkits were used to gain access to a corporate server or other type of system.

3. One strategy for preventing IT employees from violating their extensive system access is “separation of duties.” Can you think of any other examples of how a function or task is split into multiple pieces or assigned to multiple individuals to prevent abuse of that function?

We can look to the military for numerous examples of separation of duties. Weapon systems are often broken into numerous components with various operators controlling the disparate modules of the system. For example, on a nuclear submarine, launch codes to deploy weapons require authorization from numerous individuals. This serves as a safety mechanism to prevent one individual from initializing a weapon without proper authorization.

4. Take a moment to think about all of the different types of devices that you use on a daily basis. How could these devices be compromised to invade your privacy? Is this risk of privacy invasion enough to make you stop using these devices?

Looking around a random house or apartment would probably reveal numerous technologies that could be used to invade privacy. Web cameras or baby monitors designed to keep an eye on members of the family can be hacked or more easily accessed if the user does not change the default security settings. New gaming consoles have built in microphones that are in standby mode continuously waiting for the voice prompt of a user to activate the system; if accessed by a nefarious actor these microphones could be used for other purposes. Cellphones can also be compromised and people carry these devices with them everywhere; as cameras and microphones are ubiquitous on these devices they present a potential attack vector for

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invading privacy. The question students will have to consider is: are they willing to forego the benefits these devices provide to ensure the protection of their privacy?

Responses will vary.

SO WHAT? Poor Data Management at Facebook 1. To what extent are social media platforms an important part of your daily interactions? Do you use a certain social media platform because your family or friends use it? Why do you think this is the case?

Student responses will vary depending upon their own social media usage patterns.

The network effect is well known, however, meaning that people chose to use Web sites with more users who will provide them value.

2. Are you one of the 87 million Facebook users who had their data shared with Cambridge Analytica? If so, did this situation bother you? Why or why not?

Student responses will vary depending on their involvement with Facebook, the Cambridge Analytica scandal, and general attitude toward privacy.

3. During Mark Zuckerberg’s hearings on Capitol Hill, it became clear that many politicians have minimal knowledge about how Facebook operates as a business.

How does this present challenges for the creation of regulations that may be put in place to ensure that Facebook and other tech companies properly manage user data?

Lack of knowledge about the tech industry on the part of legislators is a serious issue.

We cannot expect appropriate, useful legislation from legislators who do not understand the environment, and we certainly don’t want legislation to be passed that does not correctly understand that environment.

4. Why would Facebook offer a pay option? Would it be worth it to you to pay a monthly fee to access Facebook and know that your personal data would be protected? Why or why not?

Student answers will vary since this is an opinion question. It may be worth pointing out that a $7 monthly fee is a small price to pay for personal data privacy protection, even for cash-strapped students.

COLLABORATION EXERCISE 11 11-4. Search the Internet to determine the power requirements for typical computing and office equipment. Consider laptop computers, desktop computers, CRT monitors, LCD monitors, and printers. For this exercise, ignore server computers. As you search, be aware that a watt is a measure of electrical power.

It is watts that the green computing movement wants to reduce.

A Google or Bing search for “computer energy usage calculator” will find a number of useful tools. A good link is: http://www.cosn.org/GreenComputing,

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where you can find a Web-based energy calculator and a downloadable Excel spreadsheet.

The calculator shown here was originally obtained from the Columbia University Web site, but is no longer available from that source. This spreadsheet is available on request from this textbook’s publisher.

(LO: 1, Learning Outcome: Discuss best practices for selecting, evaluating, and managing information systems projects, AACSB: Analytic Skills) 11-5. Estimate the number of each type of device in use at your campus. Use your university’s Web site to determine the number of colleges, departments, faculty, staff, and students. Make assumptions about the number of computers, copiers, servers, and other types of equipment used by each.

Student answers will vary—for example, we can assume that a small school has: • 350 desktops with LCD monitors • 150 desktops with CRT monitors • 100 laptops • 300 inkjet printers

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• 100 desktop laser printers • 75 workgroup laser printers • 25 workgroup printer/copier/fax combo (LO: 1, Learning Outcome: Discuss best practices for selecting, evaluating, and managing information systems projects, AACSB: Analytic Skills) 11-6. Using the data from items 11-4 and 11-5, estimate the total power used by computing and related devices on your campus.

This spreadsheet uses the energy consumption estimates from the Columbia University Energy Usage spreadsheet in question 11-4. The number of each type of device has been inserted and the total energy consumption for each type of device is computed. The total kWh, cost, pounds of CO 2 , and miles driven are computed.

(LO: 1, Learning Outcome: Discuss best practices for selecting, evaluating, and managing information systems projects, AACSB: Analytic Skills)

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11-7. A computer that is in screensaver mode uses the same amount of power as one in regular mode. Computers that are in sleep mode, however, use much less power, say, 6 watts per hour. Reflect on computer use on your campus and estimate the amount of time that computing devices are in sleep versus screen saver or use mode. Compute the savings in power that result from sleep mode.

The following spreadsheet compares the assumed inventory of computing devices in three scenarios—(A) on 24/7 with no power management (sleep mode); (B) on only during work hours with no power management; and (C) on only during work hours with power management. The savings between A and C range from 70 to 80 percent.

(LO: 1, Learning Outcome: Discuss best practices for selecting, evaluating, and managing information systems projects, AACSB: Analytic Skills) 11-8. Computers that are automatically updated by the IS Department with software upgrades and patches, etc., cannot be allowed to go into sleep mode because if they are sleeping they will not be able to receive the upgrade. Hence, some universities prohibit sleep mode on university computers (sleep mode is never used on servers, by the way). Determine the cost, in watts, of such a policy.

Student answers will vary depending on the assumptions made for each university. For the assumptions made in question 11-7, the cost of no sleep mode allowed (in watts) is 341,056 (see Scenario A in spreadsheet above). This value is the total watts consumed by desktop and laptop computers on campus; printers were not included. (LO: 1, Learning Outcome: Discuss best practices for selecting,

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evaluating, and managing information systems projects, AACSB: Analytic Skills) 11-9. Calculate the monthly cost, in watts, if: a. All user computers run full time night and day Monthly cost in watts: 341,056 / 12 = 28421.3 (Scenario A above) (LO: 1, Learning Outcome: Discuss best practices for selecting, evaluating, and managing information systems projects, AACSB: Analytic Skills) b. All user computers run full time during work hours and in sleep mode during offhours.

Monthly cost in watts: 137,426 / 12 = 11,452.1 (Scenario B above) (LO: 1, Learning Outcome: Discuss best practices for selecting, evaluating, and managing information systems projects, AACSB: Analytic Skills) c. All user computers are shut off during non-work hours.

Monthly cost in watts: 109,585 / 12 = 9,132 (Scenario C above) (LO: 1, Learning Outcome: Discuss best practices for selecting, evaluating, and managing information systems projects, AACSB: Analytic Skills) 11-10. Given your answers to items 11-4 through 11-9, is computer power management during off-hours a significant concern? In comparison to the other costs of running a university, does this issue really matter? Discuss this question among your group and explain your answer.

The analysis shown in the previous sections of this exercise clearly suggests that there are considerable cost savings to be gained from proper power management.

In today’s environment of tight budgets, the cost savings arguments should be compelling. In addition, the spreadsheets in items 11-4, 11-6, and 11-7 show clear reductions in CO 2 emissions with careful power management practices. Those who are concerned about the state of our environment will be impressed with those figures. If nothing else, the public relations value of those savings could work to benefit the university’s image. (LO: 1, Learning Outcome: Discuss best practices for selecting, evaluating, and managing information systems projects, A ACSB: Analytic Skills)

CASE STUDY 11 Automating Labor 11-11. How might the automation of labor provide a competitive advantage for forwardlooking companies? How would this new competitive advantage be affected if all competitors in an industry adopted automated workforces?

Forward-looking companies may decide to adopt automated labor more quickly than typical companies. This could lower their labor costs dramatically giving them a competitive advantage. This competitive advantage may be temporary if

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other companies adopt similar automated labor. If an entire industry adopted automated labor, the relative competitive advantage would be eliminated.

(LO: 2, Learning Outcome: Discuss best practices for selecting, evaluating, and managing information systems projects, AACSB: Analytic Skills) 11-12. Automated workforces may replace certain types of jobs entirely. List three implications of an automated workforce for someone seeking a university education. Name three majors that might benefit from an automated workforce.

Why might a university need to become nimbler in an era of automated labor?

Student answers may vary. Some answers may include 1) many manual labor jobs will be automated, 2) a portion of their current jobs may be automated, 3) their future job may be partially or fully automated, and 4) current employees may be forced to retrain in different jobs thereby increasing competition for remaining non-automated jobs. The majors that might benefit from an automated workforce include all jobs that have a manual or highly repetitive component. Some of these may include jobs in operations, manufacturing, accounting, maintenance, programming, services, etc.

A university might need to become nimbler in an era of automated labor because many of its functions may become automated. Operationally the university may become much more automated. Academically it may need to rethink existing curricula and programs to account for increasing physical and cyber automation.

(LO: 3, Learning Outcome: Discuss best practices for selecting, evaluating, and managing information systems projects, AACSB: Analytic Skills) 11-13. List three new types of companies that might be created from an automated workforce. (e.g., Uber without drivers). Why might these new companies put existing companies out of business?

Student responses to this question will vary. Examples may include automated farms, automated car repair, automated physical security, automated accounting, automated home building, etc. These new companies could put existing companies out of business because their labor costs will be lowered dramatically.

The new automated labor may be more productive, precise, and more reliable.

This could lead to a competitive advantage over non-automated companies.

(LO: 3, Learning Outcome: Discuss best practices for selecting, evaluating, and managing information systems projects, AACSB: Analytic Skills) 11-14. Government regulations such as higher minimum wage rates, mandatory health insurance, and complex labor laws might make robots more attractive than human workers because they don’t come with these additional costs. Describe how government regulations could be altered to support human workers.

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Government regulations could be altered to support human workers by removing barriers that push employers toward automation. Companies will automate labor if it is less costly or provides greater benefits. Regulations could lower costs of human labor by eliminating minimum wage laws, or other mandatory laws that force additional costs due to using human labor. It may be tempting to pass laws forcing companies to employ humans at higher costs, but this could lead to a competitive disadvantage in a hyper-competitive international marketplace.

(LO: 3, Learning Outcome: Discuss best practices for selecting, evaluating, and managing information systems projects, AACSB: Analytic Skills) 11-15. Robots can be trained to do dangerous, stinky, and monotonous work that humans may not want to do. Name a job for which you think robots would be better suited than humans. Describe why you think humans would prefer to turn this job over to a robotic worker.

Student responses to this question will vary. Examples may include cleaning toilets, operating a metal smelting operation, filling bags of dog food, or cleaning roadsides. Humans may prefer to turn over this type of work to a robotic worker because they don’t like doing it, or because it would be safer to do so.

(LO: 3, Learning Outcome: Discuss best practices for selecting, evaluating, and managing information systems projects, AACSB: Analytic Skills) 11-16. A personal robot could be purchased for your own use—to reduce your individual costs. It could do all your gardening, cooking, cleaning, home repairs, and so on.

Explain why your personal income needs might change with an automated worker in your home. Can your personal robot meet all your needs?

Student responses to this question will vary. Examples may include using a robotic worker to grow all your own food. This could dramatically reduce your grocery bills. The robotic worker could also do home repairs, remodeling, or even build an entirely new home. This would greatly reduce home expenses. A robot might also be able to clean dirty dishes more effectively than you can. A robot might not be able to provide you with a “cool” haircut (subjective judgement), but other objective tasks may be easily negotiated. Personal robots can eliminate the need to perform mundane household tasks but are unlikely to be able to meet all needs, particularly needs for creative tasks or social interactions.

(LO: 3, Learning Outcome: Discuss best practices for selecting, evaluating, and managing information systems projects, AACSB: Analytic Skills) 11-17. Robots don’t have the desire to stay alive, the desire to procreate, or the desire to improve their positions. How might the lack of these human characteristics prevent automatons from becoming our cybernetic overlords?

If robots don’t care if they die, they may not care if we turn them off. Removing

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the desire to stay alive (which all humans have), will likely make robots benign.

They’ll be similar to any tool, like a hammer. They’ll just do what their human owner tells them to do. This same principle applies to procreation and general improvement of one’s position. Robots don’t want to be our overlords. They just do what we tell them to do. They also don’t understand how critical replication is to their future survival. Without replication they’ll eventually wear out and become disabled.

(LO: 3, Learning Outcome: Discuss best practices for selecting, evaluating, and managing information systems projects, AACSB: Analytic Skills) For an example illustrating the concepts found in this chapter, view the videos in mymislab.com.

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12 Information Systems Development LEARNING OBJECTIVES Q12-1 Explain how business processes, IS, and applications are developed.

Q12-2 Describe how organizations use business process management (B PM).

Q12-3 Describe how business process modeling notation (BPMN) is used to model processes.

Q12-4 Describe the phases in the systems development life cycle (S DLC).

Q12-5 Explain the keys for successful SDLC projects.

Q12-6 Explain how scrum can overcome the problems of the SDLC. Q12-7 Describe the state of process and systems development in 2029.

CHAPTER OUTLINE Q12-1 How are business processes, IS, and applications developed?

• How do business processes, information systems, and applications differ and relate?

• Which development processes are used for which?

Q12-2 How do organizations use business process management (BPM)?

• Why do processes need management? o Improve process quality o Change in technology o Change in business fundamentals • What are BPM activities?

Q12-3 How is business process modeling notation (BPMN) used to model processes?

• Need for standard business processing notation • Documenting the as-is business order process Q12-4 What are the phases in the systems development life cycle (SDLC)?

• Define the system o Define system goals and scope o Assess feasibility o Form a project team • Determine requirements o Sources of requirements o Role of a prototype o Approve requirements • Design system components • System implementation o Testing o System conversion • Maintain system Q12-5 What are the keys for successful SDLC projects?

• Create a work breakdown structure

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• Estimate time and costs • Create a project plan • Adjust plan via trade-offs • Manage development challenges Q12-6 How can scrum overcome the problems of the SDLC? • What are the principles of agile development methodologies?

• What is the scrum process? o Scrum essentials o When are we done?

• How do requirements drive the scrum process? o Creating requirements tasks o Scheduling tasks o Committing to finish tasks o Hocus-pocus?

Q12-7 2029?

Learning Catalytics is a “bring your own device” student engagement, assessment, and classroom intelligence system. It allows instructors to engage students in class with realtime diagnostics. Students can use any modern, web-enabled device (smartphone, tablet, or laptop) to access it. For more information on using Learning Catalytics in your course, contact your Pearson Representative.

SECURITY GUIDE IoT and Mirai 1. Take a few minutes to think about your home network and your connected devices.

How many IoT devices do you have? Have you created new credentials for each of them to ensure that they are not vulnerable? How might attackers gain access to these devices?

It’s very unlikely that a student would notice if a file was copied from their computer.

It’s possible that they could have turned on security logging for computer access.

Some operating systems (like Windows) do have this feature. Others may not. Then the student would have to check the logs regularly for unauthorized access. It’s possible that the student may remember the exact time he was out of the dorm and notice the intrusion. That, of course, assumes that the student locks his or her computer each time they walk away from it. Many people don’t lock their computers when they walk away from them because they assume they are in a safe place.

2. Think about your daily interactions with technology. Think of three other examples demonstrating the tradeoff between security and convenience (besides the use of a long password as described in the article).

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prevention (DLP) system running to catch these types of unauthorized actions, but this is very unlikely.

3. Why would IoT devices make good targets for attackers?

The only overt security feature of many IoT devices is the username and password needed to access/manage the settings for the device. However, users often neglect to create new credentials when setting up devices, which can create serious vulnerabilities. In fact, because owners often neglect to create new passwords for their devices, hackers have identified IoT devices as prime targets.

4. The hackers were able to avoid jail time for their actions. Do you think their direct disruption of numerous sites and companies’ digital operations should have resulted in more serious penalties? How should the legal system apply penalties for the creation of malware that will continue to live on in spite of the hackers being caught and maybe even feeling sorry for their actions?

This is an opinion question so student responses will vary. This is another example of a situation in which the legal system needs to catch up with the technological environment we have today.

SO WHAT? Banking on IoT 1. Sports are one area in which the collection and analysis of data has had a tremendous impact on how teams manage personnel from season to season and strategize during games. Take a minute to list or brainstorm all of the different applications of data collection and analysis that could be useful in sports. If you have seen the movie Moneyball, you have seen sports analytics at play. In the movie, an analyst uses commonly ignored metrics (e.g., on base percentage) as a metric for guiding the development of a team’s roster; much to the surprise of old-school recruiters, the strategy is successful. Baseball teams are also collecting stats about the location on the field to which batters most frequently hit the ball so that coaches can adjust their defense accordingly. In football, shoulder pads are now featuring embedded sensors which relay data in real time about the speed and direction of players. All of these examples demonstrate how the collection and analysis of data can improve performance.

2. The article looked at the enhanced functionality that could come from a smart refrigerator with Internet connectivity. Can you identify any potential drawbacks or complications that may arise from this connectivity?

While the thought of never running out of milk probably sounds convenient, consider the necessary integrations that would be required to ensure that this type of functionality is indeed beneficial. For example, would a consumer want a new order of produce or milk right before leaving on a weeklong business trip? Or, if you buy something for the first time and don’t like it, do you want the refrigerator to reorder

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that item automatically? In other words, students should recognize that new innovations and ideas often seem simple or easy to execute, but to provide sustained value over time requires a tremendous level of refinement and customization.

3. Take a minute to think about your home or apartment. What types of things would you like to see connect to the Internet? How would this connectivity make your life better or more efficient?

Responses will vary by student; other examples of possible innovations in the home include: automated lawn mowers connected to sensors in the grass that use sunshine and rainfall measurements to identify when the grass likely needs to be mowed; a dog bowl that measures by weight how much dog food has been consumed and automatically orders a new delivery of food when the supply is low; mini sensor chips in diapers that inform parents via an app when the baby should be changed, or in conjunction with a wastebasket with a sensor, diapers can be tracked as they are discarded and be replenished before the supply runs out.

4. What are the potential pitfalls of drastically increasing the number of financial transactions you or a company is responsible for in a given period of time (e.g., buying groceries or raw materials in very small quantities)?

Perpetrators of white-collar crimes often rely on heavy volumes of financial transactions to hide fraudulent use of bank accounts or credit cards. As it currently stands, cardholders have to sift through dozens and dozens of transactions each month to ensure that there have been no fraudulent charges. If shopping for groceries, which typically constitutes a handful of charges a month, is suddenly disaggregated into hundreds of charges as groceries are purchased individually or in small groups, the “noise” created by this environment could make the identification of fraudulent activity more difficult.

USING YOUR KNOWLEDGE 12-4. Choose an important project type in a business discipline of interest to you. In accounting it could be an audit; in marketing it could be a plan for using social media; in operations, it could be a project of opening a new warehouse. Choose a major activity that is important and that you find interesting. Compare and contrast the use of a process such as the SDLC to using a process such as scrum for your project. Which process would you recommend? Justify your recommendation.

Student answers will vary depending on the activity selected. Look for the comparisons to show that the SDLC is more rigidly planned and is expected to proceed in a fairly structured way through the phases, with each phase producing output that is input into the next phase. In the scrum approach, the project would be approached more incrementally, with small chunks of the project being selected and completed in a work cycle. Work cycles will repeat until the project is complete or out of time/money. You will probably find that the more structured the activity is that the student selected (such as an audit), the more comfortably

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the SDLC could be used, but the more unstructured (and new) the project, such as a social media plan, the better the fit with scrum. (LO: 6, Learning Outcome: Compare and contrast different methods for developing information systems, AA CSB: Analytic Skills) 12-5. Reread the opening vignette in Chapter 11. Explain how Henri and Raj could use a scrum process for managing Sandeep. Describe how doing so would reduce the risk of failure.

The issue that arises in Chapter 11 is the lack of experience Henri and Raj have with using Sandeep as the outsourced developer for the full-blown version of ARES. The use of scrum with its short work cycles and emphasis on completing a working product in each cycle could help reduce Henri’s and Raj’s uncertainty in the overall process. At the end of each cycle, they would have a product that captures at least some of the overall project requirements, so they would see project progress clearly. Henri would feel more comfortable in paying Sandeep’s firm for the progress that has been made. The long-distance relationship will be more manageable with an incremental approach as used with scrum. (LO: 6, Learning Outcome: Compare and contrast different methods for developing information systems, AACSB: Analytic Skills)

COLLABORATION EXERCISE 12 In your answers to 12-6 and 12-7, use Microsoft Visio and BPMN templates to construct your diagram. If you don’t have those templates, use the cross-functional and basic flowchart templates. If you do not have access to Visio, use PowerPoint instead.

12-6. Create a process diagram for alternative a, using Figure 12-8 as a guide. Each company will need to have a role for determining its available properties and sending emails to the other companies that describe them. They will also need to have a role for receiving emails and a role for renting properties to customers.

Assume the companies have from three to five agents who can fulfill these roles.

Create a role for the email system if you think it is appropriate. Specify roles, activities, repositories, and data flows.

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(LO: 3, Learning Outcome: Discuss the role of information systems in supporting business processes, A AC SB: Analytic Skills) 12-7. Create a process diagram for alternative b, using Figure 12-8 as a guide. Each company will need to have a role for determining its available properties and adding them to the reservation database. They will also need a role for renting properties that accesses the shared database. Assume the companies have from three to five agents who can fulfill these roles. Create a role for the property database application. Specify roles, activities, repositories, and data flows.

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(LO: 3, Learning Outcome: Discuss the role of information systems in supporting business processes, A AC SB: Analytic Skills) 12-8. Compare and contrast your answers in questions 12-6 and 12-7. Which is likely to be more effective in generating rental income? Which is likely to be more expensive to develop? Which is likely to be more expensive to operate?

Option 1 will be relatively simple to create. The main emphasis will be agreeing on the business processes that will be used to facilitate the inter-enterprise communication that will accomplish the goals of the alliance. Because this process relies on email, there is much inefficiency, including the fact that emails are easily ignored or response to them is delayed.

Option 2 will be more complex to create and will require an investment by the partners to fund both its development and on-going operation. It will be far more efficient and should provide more rental revenue due to the improved quality of information and the speed in which it is available. This system will be more expensive to operate because the database needs to be maintained and data backed up. (LO: 3, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Analytic Skills) 12-9. If you were a consultant to Baker, Barker, and Bickel, which alternative would you recommend? Justify your recommendation.

The partners need to determine if the value generated by Option 2 will justify its cost. I recommend that they obtain proposals on developing Option 2. Once an approximate cost is determined, they can evaluate whether this cost appears to be justified or whether they should just go slow at the beginning and develop the simple email-based system. They should bear in mind, however, that the email Copyright © 2020 Pearson Education, Inc.

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system, due to its inefficiencies, may not generate the same level of revenue as the shared-database system probably would. (LO: 3, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Analytic Skills)

CASE STUDY 12 When Will We Learn?

12-10. Describe three reasons why cases like this will remain relevant 40 years from now. Describe three developments that could make these cases obsolete. Which will pertain? Will such cases be relevant 40 years from now? Justify your opinion.

Three reasons why this case will be relevant 40 years from now: Failure to learn from past mistakes; assuming advances in technology will eliminate the need to understand what we need; failure to understand the complexity of developing ISs. Three developments that could make the case obsolete: Models of success (like AccessCT) are used to guide projects so that success becomes the standard outcome, not the exception; businesspeople take an active role in IS and apply best practices to IS development rather than letting IS development be “someone else’s problem”; businesspeople recognize that we must know and understand requirements clearly before attempting to build anything, particularly something as nebulous as an IS. Student opinions will vary as to which scenario will play out. (LO: 5, Learning Outcome: Discuss best practices for selecting, evaluating, and managing information systems projects, AAC SB: Analytic Skills) 12-11. Read the Executive Summary of the First Data report located at http://portlandtribune.com/documents/artdocs/00003481205618.pdf. Applying your knowledge about the SDLC, describe what you think are the three major reasons that Cover Oregon failed.

The Executive Summary provides a good overview of challenges and difficulties encountered on this project. One of the strongest messages found in this material was the lack of a single point of authority for the project. There were numerous examples of contradictory decisions and teams working at cross purposes. Many good project management practices were ignored. Budget limitations prevented some of the needed contributors from participating (e.g., a systems integrator).

The lack of management oversight is also a strong theme that emerged. (LO: 5, Learning Outcome: Discuss best practices for selecting, evaluating, and managing information systems projects, AACSB: Analytic Skills) 12-12. In Case Study 8 (pages 330–332), you learned that three vendors had been considered as outside contractors, but two of them bowed out of the competition.

Describe three reasons that they may have done so.

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The conflicts between the user agency (Cover Oregon) and the developer agency (Oregon Health Administration) may have been obvious. The shifting requirements could have been troublesome. The warnings from the QA organization were undoubtedly red flags. The lack of funding could have made them turn and run. (LO: 5, Learning Outcome: Discuss best practices for selecting, evaluating, and managing information systems projects, AACSB: Analytic Skills) 12-13. The project was known to be in trouble, but it seemed to have a life of its own.

Ying Kwong, a technology analyst at Oregon’s Department of Administrative Services, said in May 2013 that the Cover Oregon project reminded him of the science fiction movie The Blob: “You simply don't know how to shoot this beast, because it does not have a known anatomy with the normal vital organs that make it tick.” Had you been a senior manager at Cover Oregon, what would you have done when the problems became apparent?

In a highly political environment like this, it is perhaps understandable that no one was able to stop this project. For many people employed in government agencies, it is better to stay out of the limelight and hope the blame falls somewhere else when the hatchet finally falls. Potentially, a senior manager could have joined forces with a reputable journalist who could have “blown the whistle” on the project and gotten the public’s attention before the disaster (and waste of resources) was fully realized. (LO: 5, Learning Outcome: Discuss best practices for selecting, evaluating, and managing information systems projects, AAC SB: Reflective Thinking Skills) 12-14. In a June 2014 survey, a majority of Oregonians held Governor Kitzhaber responsible. But in 2015 Kitzhaber was reelected to a historic fourth term.

Unfortunately, a month later he resigned amid an unrelated influence-peddling scandal. Bruce Goldberg, former head of OHA and acting head of Cover Oregon, was fired on March 18, 2014, but continued to draw a full salary until July 18.

Given these results, does it seem likely that anyone will bear the consequences for these mistakes? Consider who that might be.

It does not sound like anyone has learned any lessons from this debacle. The people bearing the consequences are the citizens of Oregon for the wasted resources and a healthcare exchange that (possibly) is of lower quality than they deserve.

(LO: 5, Learning Outcome: Discuss best practices for selecting, evaluating, and managing information systems projects, AACSB: Reflective Thinking Skills) For an example illustrating the concepts found in this chapter, view the videos in mymislab.com.

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ID

.. .. .. .. .. ..

International MIS

LEARNING OBJECTIVES QID-1 Explain how the global economy affects organizations and processes.

QID-2 Describe the characteristics of international IS components.

QID-3 Describe how inter-enterprise IS facilitate global supply chain management.

QID-4 Describe the security challenges of international IS. QID-5 Explain the challenges of international IS management.

CHAPTER OUTLINE QID-1 How does the global economy affect organizations and processes?

• How does the global economy change the competitive environment?

• How does the emerging global economy change competitive strategy?

• How does the global economy change value chains and business processes?

QID-2 What are the characteristics of international IS components?

• What’s required to localize software?

• IBM’s Watson learns Korean • What are the problems and issues of global databases?

• Challenges of international enterprise applications?

• Advantages of functional systems • Problems of inherent processes QID-3 How do inter-enterprise IS facilitate global supply chain management?

• The importance of information in the supply chain • How can information relieve the bullwhip effect?

QID-4 What are the security challenges of international IS? • Legal environment o Encryption o Distribution of content o Personal privacy • Physical security • Cultural norms QID-5 What are the challenges of international IS management?

• Why is international IS development more challenging?

• What are the challenges of international project management?

• What are the challenges of international IS management?

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Kroenke & Boyle - Using MIS 11th Ed - Instructor’s Manual

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ID-2

Setting up information systems in foreign offices

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USING YOUR KNOWLEDGE ID-4. Suppose you are the CISO for a Fortune 500 company with offices in 15 different countries. Your company has substantial intellectual property to protect, and the CEO has suggested that the company move part of its R&D offshore to reduce costs.

Using the information from QID-4, describe the potential threats that might arise from moving R&D to an offshore site.

Legal environment: Can encryption be used to safeguard our R&D? Encryption is not allowed in some countries. Would that leave our R&D too vulnerable if it was not encrypted?

Physical security: Assess the threats to our infrastructure for that specific location, including natural disasters, geopolitical risks, civil unrest, and terrorist attacks.

Cultural norms: Can intellectual property be protected in an environment where bribery and graft are standard ways of doing business? Cultural norms regarding acceptable business practices are very different from the US and must be considered when evaluating operations in other locations.

(LO: 4, Learning Outcome: Describe different methods of managing IS security, AACSB: Dynamics of the Global Economy)

For an example illustrating the concepts found in this chapter, view the videos in mymislab.com.

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