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Key Highlights

• Sustainability and ESG: This edition features new coverage of how information systems promote sustainability and environmental, social, and governance (ESG) goals. Chapter 1 now includes ESG leadership as a major objective of information systems, while many of the case studies discuss sustainability issues.

• Impact of the coronavirus pandemic: This edition examines the impact of the coronavirus pandemic on business uses of information systems through up-to-date coverage of topics such as working remotely, supply chain disruptions, and global supply chains.

Available separately for purchase is MyLab MIS for Essentials of Management Information Systems, the teaching and learning platform that empowers instructors to personalize learning for every student.

When combined with Pearson’s trusted educational content, this optional suite helps deliver the desired learning outcomes.

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Laudon • Laudon • Traver

• Updated and expanded coverage of AI: Chapter 11 has been rewritten to include expanded coverage of machine learning, deep learning, natural language systems, computer vision systems, and robotics, reflecting the surging interest in business uses of AI and “intelligent” techniques.

FIFTEENTH EDITION

• Cloud computing, Big Data, and the Internet of Things: The coverage of these topics now includes more details on cloud services, private and public clouds, hybrid clouds, and managing cloud services.

GLOBAL EDITION

Essentials of MIS

Over the past two decades, mass adoption of information technology and systems has revolutionized the way business is conducted across the world. Essentials of MIS takes an in-depth look at how companies use the latest technologies to achieve their objectives and solve key business challenges.

Its rich coverage includes up-to-date case studies from familiar names, such as Uber, Facebook, and Amazon, and the Career Opportunities section in every chapter illustrates how the skills discussed are relevant to employers.

Covering the most current and essential topics in MIS, the fifteenth edition features cases, figures, and tables that have been revised and updated to offer a cohesive and comprehensive view of this rapidly changing field.

GLOB AL EDITION

GLOBAL EDITION

This is a special edition of an established title widely used by colleges and universities throughout the world. Pearson published this exclusive edition for the benefit of students outside the United States and Canada. If you purchased this book within the United States or Canada, you should be aware that it has been imported without the approval of the Publisher or Author.

Essentials of MIS FIFTEENTH EDITION

Kenneth C. Laudon Jane P. Laudon Carol G. Traver

06/03/23 11:05 AM

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Dynamic Study Modules help students study chapter topics and the language of MIS on their own by continuously assessing their knowledge application and performance in real time. These are available as graded assignments prior to class, and are accessible on smartphones, tablets, and computers.

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Learning Catalytics™ is a student response tool that helps you generate class discussion, customize your lecture, and promote peer-to-peer learning based on real-time analytics. Learning Catalytics uses students’ smartphones, tablets, or laptops to engage them in more interactive tasks.

The Gradebook offers an easy way for you and your students to see their performance in your course.

Item Analysis lets you quickly see trends by analyzing details like the number of students who answered correctly/incorrectly, time on task, and more.

And because it's correlated with the AACSB Standards, you can track students' progress toward outcomes that the organization has deemed important in preparing students to be leaders.

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Integrating Business with Technology By completing the projects in this text, students will be able to demonstrate business knowledge, application software proficiency, and Internet skills. These projects can be used by instructors as learning assessment tools and by students as demonstrations of business, software, and problem-solving skills to future employers. Here are some of the skills and competencies students using this text will be able to demonstrate: Business Application skills: Use of both business and software skills in real-world business applications.

Demonstrates both business knowledge and proficiency in spreadsheet, database, and web page/blog creation tools.

Internet skills: Ability to use Internet tools to access information, conduct research, or perform online calculations and analysis.

Analytical, writing and presentation skills: Ability to research a specific topic, analyze a problem, think creatively, suggest a solution, and prepare a clear written or oral presentation of the solution, working either individually or with others in a group. * Dirt Bikes Running Case in MyLab MIS

Business Application Skills Business Skills

Software Skills

Chapter

Payroll accounting

Spreadsheet formulas SUM, AVERAGE functions Absolute and relative addressing

Chapter 1

Financial statement analysis

Spreadsheet formulas Spreadsheet charts

Chapter 2*

Budgeting

Spreadsheet formulas Spreadsheet charts

Chapter 2

Pricing hardware and software

Spreadsheet formulas

Chapter 5

Technology Rent vs. Buy Decision

Spreadsheet formulas

Chapter 5*

Total Cost of Ownership (TCO) analysis

SUM, VLOOKUP

Finance and Accounting

Analyzing wireless services and costs

Spreadsheet formulas

Chapter 7

Financial statement analysis

Spreadsheet formulas Spreadsheet downloading and formatting

Chapter 10

Human Resources Analyzing security events

Spreadsheet sorting, data filtering

Chapter 8

Employee training and skills tracking

Database design Database querying and reporting

Chapter 12*

Inventory management

Database design, querying, and reporting

Chapter 6

Analyzing supplier performance and pricing

Spreadsheet date functions Data filtering, AVERAGE function

Chapter 9

Bill of materials cost sensitivity analysis

Spreadsheet data tables Spreadsheet formulas

Chapter 11*

Manufacturing and Production

Sales and Marketing Sales trend analysis

Database querying and reporting

Chapter 3

Blog creation and design

Blog creation tool

Chapter 4

Marketing decisions

Spreadsheet pivot tables

Chapter 11

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Customer reservation system

Database querying and reporting

Chapter 12

Customer profiling

Database design Database querying and reporting

Chapter 6*

Internet Skills Using online software tools for job hunting and career development

Chapter 1

Using online interactive mapping software to plan efficient transportation routes

Chapter 2

Researching product information Evaluating websites for auto sales

Chapter 3

Analyzing web browser privacy protection

Chapter 4

Researching travel costs using online travel sites

Chapter 5

Searching online databases for products and services

Chapter 6

Using web search engines for business research

Chapter 7

Researching and evaluating business outsourcing services

Chapter 8

Researching and evaluating supply chain management services

Chapter 9

Evaluating e-commerce hosting services

Chapter 10

Using shopping bots to compare product price, features, and availability

Chapter 11

Analyzing websites design

Chapter 12

Analytical, Writing, and Presentation Skills* Business Problem

Chapter

Management analysis of a business

Chapter 1

Value chain and competitive forces analysis Business strategy formulation

Chapter 3

Formulating a corporate privacy policy

Chapter 4

Employee productivity analysis

Chapter 7

Disaster recovery planning

Chapter 8

Locating and evaluating suppliers Developing an e-commerce strategy

Chapter 9 Chapter 10

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­Fifteenth Edition

Global Edition

Essentials of Management Information Systems Kenneth C. Laudon New York University

Jane P. Laudon Azimuth Information Systems

Carol Guercio Traver Azimuth Interactive, Inc.

Harlow, England • London • New York • Boston • San Francisco • Toronto • Sydney • Dubai • Singapore • Hong Kong Tokyo • Seoul • Taipei • New Delhi • Cape Town • São Paulo • Mexico City • Madrid • Amsterdam • Munich • Paris • Milan

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Pearson Education Limited KAO Two KAO Park Hockham Way Harlow Essex CM17 9SR United Kingdom and Associated Companies throughout the world Visit us on the World Wide Web at: www.pearson.com © Pearson Education Limited, 2024 The rights of Kenneth C. Laudon, Jane P. Laudon, and Carol Guercio Traver to be identified as the authors of this work have been asserted by them in accordance with the Copyright, Designs and Patents Act 1988.

Authorized adaptation from the United States edition, entitled Essentials of Management Information Systems, 15th Edition, ISBN 978-0-13-794679-2 by Kenneth C. Laudon, Jane P. Laudon, and Carol Guercio Traver, published by Pearson Education © 2024.

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­Brief Contents Preface

I

18

Information Systems in the Digital Age

31

1

Business Information Systems in Your Career

2

Global E-business and Collaboration

3

Achieving Competitive Advantage with Information Systems 110

4

Ethical and Social Issues in Information Systems

32

70 146

II Information Technology Infrastructure

185

5

IT Infrastructure: Hardware and Software

6

Foundations of Business Intelligence: Databases and Information Management 224

7

Telecommunications, the Internet, and Wireless Technology

8

Securing Information Systems

186 260

302

III Key System Applications for the Digital Age 345 9

Achieving Operational Excellence and Customer Intimacy: Enterprise Applications 346

10

E-commerce: Digital Markets, Digital Goods 378

11

Improving Decision Making and Managing Artificial Intelligence

420

IV Building and Managing Systems 461 12

Making the Business Case for Information Systems and Managing Projects

462

Glossary 500 Index

515

8

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­Contents Preface

18

I

Information Systems in the Digital Age 31

1

Business Information Systems in Your Career 32

Chapter-Opening Case Smart Shelves Reinvent the Retail Space 33 1-1 Understand why information systems are essential for running and managing a business. 35 How Information Systems are Transforming Business 35 • Key Challenges in Management Information Systems 36 • Globalization Challenges and Opportunities: A Flattened World 36 • Business Drivers of Information Systems 38

1-2 Define an information system, explain how it works, and identify its people, organizational, and technology components. 41 What is An Information System? 41 • It Isn’t Simply Technology: The Role of People and Organizations 43 • Dimensions of Information Systems 44

Spotlight On: Technology UPS Competes Globally with Information Technology 48 1-3 Apply a four-step method for business problem solving to solve information system-related problems. 49

The Problem-Solving Approach 50 • A Model of the Problem-Solving Process 50 • The Role of Critical Thinking in Problem Solving 53 • The Connections among Business Objectives, Problems, and Solutions 53

1-4 Describe the information systems skills and knowledge that are essential for business careers. 54

How Information Systems Will Affect Business Careers 54 • Information Systems and Business Careers: Wrap-Up 57 • How This Book Prepares You for the Future 57

Spotlight On: People Will a Robot Steal Your Job? 58 1-5 Understand how MIS can help your career. 61

The Company 61 • Position Description 61 • Job Requirements 61 • Interview Questions 61 • Author Tips 62

Review Summary 62 • Key Terms 63 • Review Questions 63 • Discussion Questions 64 • Hands-On MIS Projects 64 Management Decision Problem 64 • Achieving Operational Excellence: Creating an Executive Payroll Register with Spreadsheet Software 65 • Improving Decision Making: Using the Internet to Locate Jobs Requiring Information Systems Knowledge 65 • Collaboration and Teamwork Project 65

Business Problem-Solving Case Adyen and Fintech: Driving Change in the Financial Services Industry 66 Chapter 1 References 68

2

Global E-business and Collaboration 70

Chapter-Opening Case Microsoft Teams Helps Toyota Motor North America (TMNA) Do Even Better 71 ­2-1 Identify the major features of a business that are important for understanding the role of information systems. 73

Organizing a Business: Basic Business Functions 73 • Business Processes 74 • Managing a Business and Firm Hierarchies 76 • The Business Environment 77 • The Role of Information Systems in a Business 78

2-2 Explain how information systems serve different management groups in a business, and how systems that link the enterprise improve organizational performance. 78 Systems for Different Management Groups 79

Spotlight On: Organizations Carbon Lighthouse Lights Up with the Internet of Things (IoT), Big Data, and Cloud Computing 83 Systems for Linking the Enterprise 85 • E-business, E-commerce, and E-government 87

2-3 Understand why systems for collaboration, social business, and knowledge management are so important and the technologies they use. 88 What is Collaboration? 88 • What is Social Business?

89 • Business Benefits of Collaboration and Social Business 90 • Building a Collaborative Culture and Business Processes 90 • Tools and Technologies for Collaboration and Social Business 92

9

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Spotlight On: Technology Zoom: Quality Videoconferencing for Every Budget 94 Systems for Knowledge Management 97

2-4 Describe the role of the information systems function in a business. 98 The Information Systems Department 98 • Information Systems Services 99

2-5 Understand how MIS can help your career. 100

The Company 100 • Position Description 100 • Job Requirements 100 • Interview Questions 101 • Author Tips 101

Review Summary 101 • Key Terms 102 • Review Questions 103 • Discussion Questions 103 • Hands-On MIS Projects 104 Management Decision Problem 104 • Improving Decision Making: Using a Spreadsheet to Create a Town Budget 104 • Achieving Operational Excellence: Using Internet Software to Plan Efficient Transportation Routes 105 • Collaboration and Teamwork Project 105

Business Problem-Solving Case How Much Does Technology Help Collaboration? 106 Chapter 2 References 108

3

Achieving Competitive Advantage with Information Systems 110

Chapter-Opening Case N26: A Bank Without Branches 111 3-1 Demonstrate how Porter’s competitive forces model, the value chain model, synergies, core competencies, and network-based strategies help companies use information systems for competitive advantage. 113 Porter’s Competitive Forces Model 113 • Information System Strategies for Dealing with Competitive Forces 114

Spotlight On: People Customer Experience Management: A New Strategic Weapon 117 The Internet’s Impact on Competitive Advantage 119 • The Business Value Chain Model 120 • Synergies, Core Competencies, and Network-Based Strategies 123 • Disruptive Technologies: Riding the Wave 125

­3-2 Describe how information systems help businesses compete globally. 126 10

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The Internet and Globalization 127 • Global Business and System Strategies 127 • Global System Configuration 128

3-3 Describe how information systems help businesses compete using quality and design. 129

What is Quality? 129 • How Information Systems Improve Quality 130

3-4 Explain the role of business process management (BPM) in enhancing competitiveness. 132

What is Business Process Management? 132

Spotlight On: Organizations GCB Bank: A Digital Transformation 135 3-5 Understand how MIS can help your career. 136

The Company 136 • Position Description 136 • Job Requirements 137 • Interview Questions 137 • Author Tips 137

Review Summary 137 • Key Terms 138 • Review Questions 139 • Discussion Questions 139 • Hands-On MIS Projects 140 Management Decision Problem 140 • Improving Decision Making: Using a Database to Analyze Sales Performance 140 • Improving Decision Making: Using Web Tools to Configure and Price an Automobile 141 • Collaboration and Teamwork Project 141

Business Problem-Solving Case Offline, Online, and Back: The Evolution of the UK Grocery Market 142 Chapter 3 References 144

4

Ethical and Social Issues in Information Systems 146

Chapter-Opening Case Apps That Track: A Double-Edged Sword 147 4-1 Identify the ethical, social, and political issues raised by information systems. 149 A Model for Thinking about Ethical, Social, and Political Issues 150 • Five Moral Dimensions of the Information Age 151 • Key Technology Trends that Raise Ethical Issues 152

4-2 Describe principles for conduct that can be used to guide ethical decisions. 154

Basic Concepts: Responsibility, Accountability, Liability, and Due Process 154 • Ethical Analysis 155 • Ethical Principles 155 • Professional Codes of Conduct 156 • Some ­Real-World Ethical Dilemmas 156

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4-3 Explain how contemporary information systems technologies and the Internet pose challenges to the protection of individual privacy and intellectual property. 157 Information Rights: Privacy and Freedom in the Internet Age 157 • Property Rights: Intellectual Property 163

4-4 Discuss the issues that contemporary information systems raise with respect to system quality, accountability and control, and the quality of everyday life. 166 System Quality: Data Quality and System Errors 166 • Accountability and Control: Software and Internet Liability Issues 167

Spotlight On: Organizations Section 230: Should the Law That “Created” Today’s Internet Be Repealed or Revised? 168 Quality of Life: Equity, Access, Boundaries, and Health 170

4-5 Understand how MIS can help your career. 174

IT Infrastructure Components 189

5-2 Describe the major computer hardware, data storage, input, and output technologies used in business and major hardware trends. 191

Types of Computers 191 • Storage, Input, and Output Technology 193 • Contemporary Hardware Trends 193

Spotlight On: People The Mobile Platform Visits Disney Theme Parks

Spotlight On: Technology “Smart” Cities Become Smarter with Edge Computing 201 5-3 Describe the major types of computer software used in business and major software trends. 204

Operating System Software 204 • Application Software and Desktop Productivity Tools 206 • HTML and HTML5 207 • Web Services 208 • Software Trends 209

5-4 Identify the principal issues in managing hardware and software technology. 211

Capacity Planning and Scalability 211 • Total Cost of Ownership (TCO) of Technology Assets 211 • Using Technology Service Providers 212 • Managing Mobile Platforms 213 • Managing Software Localization for Global Business 214

The Company 174

­ potlight On: Technology S Immersed in the Metaverse: What Will It Mean for the Future? 175 Position Description 176 • Job Requirements 177 • Interview Questions 177 • Author Tips 177

Review Summary 177 • Key Terms 178 • Review Questions 178 • Discussion Questions 179 • Hands-On MIS Projects 179 Management Decision Problem 179 • Achieving Operational Excellence: Creating a Simple Blog 179 • Improving Decision Making: Analyzing Web Browser Privacy 180 • Collaboration and Teamwork Project 180

5-5 Understand how MIS can help your career. 214

The Company 214 • Position Description 214 • Job Requirements 214 • Interview Questions 215 • Author Tips 215

Review Summary 215 • Key Terms 217 • Review Questions 217 • Discussion Questions 218 • Hands-On MIS Projects 218 Management Decision Problem 218 • Improving Decision Making: Using a Spreadsheet to Evaluate Total Cost of Ownership (TCO) for PC Desktop Systems 218 • Improving Decision Making: Using Web Research to Budget for a Sales Conference 219 • Collaboration and Teamwork Project 219

Business Problem-Solving Case Facebook’s Many Ethical Challenges 181 Chapter 4 References

183

II Information Technology Infrastructure 185 5

IT Infrastructure: Hardware and Software 186

Chapter-Opening Case Southeast Asia’s Grab Leverages Information Technology to Enhance Its Services 187 5-1 Identify the components of IT infrastructure. 188

195

Business Problem-Solving Case How Green Is the Cloud? 220 Chapter 5 References 222

­6

Foundations of Business Intelligence: Databases and Information Management 224

Chapter-Opening Case Data Insights Send Envision Virgin Racing to the Finish Line 225 11

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6-1 Define a database and explain how a relational database organizes data. 227 Entities and Attributes 228 • Organizing Data in a Relational Database 228 • Establishing Relationships 230

6-2 Describe the principles of a database management system. 233

Operations of a Relational DBMS 234 • Capabilities of Database Management Systems 234 • Nonrelational Databases, Cloud Databases, and Blockchain 236

Spotlight On: Technology New Cloud Database Tools Help Vodafone Fiji Make Better Decisions 238 6-3 Identify the principal tools and technologies for accessing information from databases to improve business performance and decision making. 240 The Challenge of Big Data 241 • Business Intelligence Technology Infrastructure 241 • Analytical Tools: Relationships, Patterns, Trends 244 • Databases and the Web 247

6-4 Explain why data governance and data quality assurance are essential for managing a firm’s data resources. 248 Ensuring Data Quality 248

6-5 Understand how MIS can help your career. 249 The Company 249 • Position Description 249

Spotlight On: Organizations Higher Data Quality Helps Vyaire Save Lives

250

Job Requirements 251 • Interview Questions 251 • Author Tips 251

Review Summary 252 • Key Terms 253 • Review Questions 253 • Discussion Questions 254 • Hands-On MIS Projects 254 Management Decision Problem 254 • Achieving Operational Excellence: Building a Relational Database for Inventory Management 254 • Improving Decision Making: Searching Online Databases for Overseas Business Resources 255 • Collabora­tion and Teamwork Project 255

Business Problem-Solving Case Pursuing Sustainability with Blockchain Chapter 6 References

7

256

258

Telecommunications, the Internet, and Wireless Technology 260

Chapter-Opening Case Digital Twin Helps Doosan Optimize Its Wind Farms 261

7-1 Identify the principal components of telecommunications networks and key networking technologies. 263

Networking and Communication Trends 263 • What is a Computer Network? 264 • Key Digital Networking Technologies 266

7-2 Compare the different types of networks. 268 Signals: Digital Versus Analog 268 • Types of Networks 269 • Transmission Media and Transmission Speed 270

7-3 Explain how the Internet and Internet technology work, and how they support communication and e-business. 270

What is the Internet? 271 • Internet Addressing and Architecture 271

­ potlight On: Technology S Can Low Earth Orbit (LEO) Satellite Internet Systems Solve the Digital Divide? 274 Internet Services and Communication Tools 275

Spotlight On: People Monitoring Employees on Networks: Unethical or Good Business? 278 The Web 281

7-4 Identify the principal technologies and standards for wireless networking, communication, and Internet access. 287

Cellular Systems 287 • Wireless Computer Networks and Internet Access 288 • RFID and Wireless Sensor Networks 290

7-5 Understand how MIS can help your career. 292

The Company 292 • Position Description 292 • Job Requirements 293 • Interview Questions 293 • Author Tips 293

Review Summary 294 • Key Terms 295 • Review Questions 296 • Discussion Questions 296 • Hands-On MIS Projects 296 Management Decision Problem 296 • Improving Decision Making: Using Spreadsheet Software to Evaluate Wireless Services 297 • Achieving Operational Excellence: Using Search Engines for Business Research 297 • Collaboration and Teamwork Project 297

Business Problem-Solving Case Google, Apple, and Meta Battle for Your Internet Experience 298 Chapter 7 References 300

12

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8

Analyze Security Events 338 • Improving Decision Making: Evaluating Security Outsourcing Services 339 • Collaboration and Teamwork Project 339

Securing Information Systems 302

Chapter-Opening Case Ransomware Everywhere: Cyberattacks in the AsiaPacific 303 8-1 Explain why information systems are vulnerable to destruction, error, and abuse. 304 Why Systems Are Vulnerable 305 • Malicious Software (Malware) 307 • Hackers and Computer Crime 309 • Internal Threats: Employees 314 • Software Vulnerability 314

Spotlight On: Technology Race Against Time: The Scramble to Fix the Log4Shell Zero-Day Vulnerability 315 8-2 Describe the business value of security and control. 317

Legal and Regulatory Requirements for Electronic Records Management 317 • Electronic Evidence and Computer Forensics 318

8-3 Identify the components of an organizational framework for security and control. 319 Information Systems Controls 319 • Risk Assessment 320 • Security Policy 321 • Disaster Recovery Planning and Business Continuity Planning 322 • The Role of Auditing 322

8-4 Identify the most important tools and technologies for safeguarding information resources. 323

Identity and Access Management and Authentication 323 • Firewalls, Intrusion Detection and Prevention Systems, and Anti-Malware Software 324 • Securing Wireless Networks 326 • Encryption and Public Key Infrastructure 327 • Securing Tran­ sactions with Blockchain 328 • Ensuring System Availability 329 • Achieving Digit­al Resiliency 329 • Internet of Things, Cloud Computing, and Mobile Platform Security Issues 330

Spotlight On: Organizations DHL: Digital Resilience Strategy 331 ­Ensuring Software Quality 334

8-5 Understand how MIS can help your career. 334 The Company 334 • Position Description 334 • Job Requirements 335 • Interview Questions 335 • Author Tips 335

Review Summary 335 • Key Terms 336 • Review Questions 337 • Discussion Questions 338 • Hands-On MIS Projects 338 Management Decision Problem 338 • Improving Decision Making: Using Spreadsheet Software to

Business Problem-Solving Case Solarwinds Shines a Light on Software Supply Chain Attacks 340 Chapter 8 References 342

III Key System Applications for the Digital Age 345 9

Achieving Operational Excellence and Customer Intimacy: Enterprise Applications 346

Chapter-Opening Case Lenzing Sustainably Balances Supply and Demand 347 9-1 Explain how enterprise systems help businesses achieve operational excellence. 348 What are Enterprise Systems? 349 • Enterprise Software 350 • Business Value of Enterprise Systems 351

9-2 Describe how supply chain management systems coordinate planning, production, and logistics with suppliers. 352

The Supply Chain 352 • Information Systems and Supply Chain Management 353 • Supply Chain Management Software 355 • Global Supply Chains and the Internet 355 • Business Value of Supply Chain Management Systems 357

9-3 Explain how customer relationship management systems help firms achieve customer intimacy. 357

What is Customer Relationship Management? 358 • Customer Relationship Management Software 358 • Operational and Analytical CRM 362 • Business Value of Customer Relationship Management Systems 362

Spotlight On: Organizations MillerKnoll Uses Salesforce.com to Transform Its Business Strategy 363 9-4 Describe the challenges that enterprise applications pose and how enterprise applications are taking advantage of new technologies. 364 Enterprise Application Challenges 364 • Next-Generation Enterprise Applications 365

Spotlight On: Technology Versum’s ERP Transformation 367 9-5 Understand how MIS can help your career. 368

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The Company 368 • Position Description 369 • Job Requirements 369 • Interview Questions 369 • Author Tips 369

Review Summary 370 • Key Terms 371 • Review Questions 371 • Discussion Questions 371 • Hands-On MIS Projects 372 Management Decision Problem 372 • Improving Decision Making: Using Spreadheet Software to Select Suppliers 372 • Achieving Operational Excellence: Evaluating Supply Chain Management Services 373 • Collaboration and Teamwork Project 373

Business Problem-Solving Case ­The Coronavirus Pandemic Disrupts Supply Chains Around the World 374 Chapter 9 References

376

10 E-commerce: Digital Markets, Digital Goods 378

10-6 Identify the issues that must be addressed when building an e-commerce presence. 408 Develop an E-commerce Presence Map a Timeline: Milestones 410

409 • Develop

10-7 Understand how MIS can help your career. 410 The Company 410 • Position Description 410 • Job Requirements 411 • Interview Questions 411 • Author Tips 411

Review Summary 411 • Key Terms 412 • Review Questions 413 • Discussion Questions 413 • Hands-On MIS Projects 414 Management Decision Problem 414 • Improving Decision Making: Using Spreadsheet Software to Analyze an E-commerce Business 414 • Achieving Operational Excellence: Evaluating E-commerce Hosting Services 415 • Collaboration and Teamwork Project 415

Business Problem-Solving Case Uber Discovers That Becoming the Uber of Everything Is Not So Easy 416

Chapter-Opening Case: Chewy Blends B2C and B2B E-commerce 379 10-1 Identify the unique features of e-commerce, digital markets, and digital goods. 380

E-commerce Today: Social, Local, Mobile 381 • Why E-commerce is Different 383 • Key Concepts in E-commerce: Digital Markets and Digital Goods in a Global Marketplace 386 • Digital Markets 387 • Digital Goods 388

10-2 Compare the principal e-commerce business and revenue models. 389 Types of E-commerce 389 • E-commerce Business Models 389

Chapter 10 References 418

11 Improving Decision Making and Managing Artificial Intelligence 420 Chapter-Opening Case Big Data Analytics: A New Way to Fight Wildfires 421 11-1 Identify the different types of decisions and explain how the decision-making process works. 423 Business Value of Improved Decision Making 423 • Types of Decisions 423 • The Decision-Making Process 425 • High-Velocity Automated Decision Making 426 • Quality of Decisions and Decision Making 426

Spotlight On: Technology Lemonade Disrupts the Insurance Industry with “Insurtech” 392 E-commerce Revenue Models 394

10-3 Explain how e-commerce has transformed marketing. 395

Behavioral Targeting 396 • Social Network Marketing and Social E-commerce 399

Spotlight On: Organizations Engaging “Socially” with Customers on TikTok 10-4 Describe how e-commerce has affected business-to-business transactions. 403

Location-Based Services and Applications 407 • Mobile App Payment Systems 407

401

Electronic Data Interchange (EDI) 403 • New Ways of B2B Buying and Selling 404

10-5 Describe the role m-commerce has in business and the most important m-commerce applications. 406

­11-2 Describe how business intelligence and business analytics support decision making. 426 What is Business Intelligence? 427 • The Business Intelligence Environment 427 • Business Intelligence and Analytics Capabilities 430 • Business Intelligence Users 433

11-3 Define artificial intelligence (AI) and explain how it differs from human intelligence. 437 Evolution of AI 437

11-4 Identify the major types of AI techniques and show how they benefit organizations. 437 Expert Systems 438 • Machine Learning 439 • Neural Networks 442 • Genetic Algorithms 445

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• Natural Language Processing, Computer Vision Systems, and Robotics 446

Spotlight On: Technology What Happened to Watson Health? 447 Spotlight On: People Do You Know Who Is Using Your Face? 449

12-3 Compare the alternative methods for building information systems. 475

Intelligent Agents 450

11-5 Understand how MIS can help your career. 451 The Company 451 • Position Description 451 • Job Requirements 451 • Interview Questions 452 • Author Tips 452

Review Summary 452 • Key Terms 453 • Review Questions 454 • Discussion Questions 454 • Hands-On MIS Projects 455 Management Decision Problem 455 • Improving Decision Making: Using Pivot Tables to Analyze Sales Data 455 • Improving Decision Making: Using Intelligent Agents for Comparison Shopping 455 • Collaboration and Teamwork Project 456

Business Problem-Solving Case Should an Algorithm Make Our Decisions?

Chapter 11 References

457

459

Traditional Systems Development Life Cycle 476 • Prototyping 476 • E ­ nd-User Development 477 • Application Software Packages, Software Services, and Outsourcing 478 • Mobile Application Development: Designing for a Multiscreen World 480 • Rapid Application Development for E-business 481

Spotlight On: Technology McAfee Turns to Automated Software Testing 482 ­12-4 Describe how information systems projects should be managed. 483 Project Management Objectives 484 • Managing Project Risk and System-Related Change 484

12-5 Understand how MIS can help your career 488

The Company 488 • Position Description 488 • Job Requirements 488

Spotlight On: Organizations Sauder Woodworking Gets ERP Implementation Right 489 Interview Questions

490 • Author Tips

490

Review Summary 491 • Key Terms 492 • Review Questions 492 • Discussion Questions 493 • Hands-On MIS Projects 493

IV Building and Managing Systems 461 12 Making the Business Case for Information Systems and Managing Projects 462 Chapter-Opening Case: Al-Asasyah Implements a Modern ERP Solution 463 12-1 Explain how managers should build a business case for the acquisition and development of a new information system. 465

The Information Systems Plan 466 • Portfolio Analysis and Scoring Models 467 • Determining Solution Costs and Benefits 468

12-2 Identify the core problem-solving steps for developing a new information system.

Defining and Understanding the Problem 471 • Developing Alternative Solutions 472 • Evaluating and Choosing Solutions 473 • Implementing the Solution 473

471

Management Decision Problem 493 • Improving Decision Making: Using a Database to Clarify Business Strategy 494 • Achieving Operational Excellence: Analyzing Website Design and Information Requirements 494 • Collaboration and Teamwork Project 494

Business Problem-Solving Case Can Blockchain Digitize the Global Supply Chain? 495 Chapter 12 References 498 Glossary 500 Index

515

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­Business Cases Here are some of the business firms described in the cases in this book:

Chapter 1: Business Information Systems in Your Career Smart Shelves Reinvent the Retail Space UPS Competes Globally with Information Technology Will a Robot Steal Your Job? Adyen and Fintech: Driving Change in the Financial Services Industry

Chapter 2: Global E-business and Collaboration Microsoft Teams Helps Toyota Motor North America (TMNA) Do Even Better Carbon Lighthouse Lights Up with the Internet of Things (IoT), Big Data, and Cloud Computing Zoom: Quality Videoconferencing for Every Budget How Much Does Technology Help Collaboration?

Chapter 3: Achieving Competitive Advantage with Information Systems N26: A Bank Without Branches Customer Experience Management: A New Strategic Weapon GCB Bank: A Digital Transformation Offline, Online, and Back: The Evolution of the UK Grocery Market

Chapter 4: Ethical and Social Issues in Information Systems Apps That Track: A Double-Edged Sword Section 230: Should the Law That “Created” Today’s Internet Be Repealed or Revised?

Immersed in the Metaverse: What Will It Mean for the Future?

Facebook’s Many Ethical Challenges

Chapter 5: IT Infrastructure: Hardware and Software Southeast Asia’s Grab Leverages Information Technology to Enhance Its Services The Mobile Platform Visits Disney Theme Parks “Smart” Cities Become Smarter with Edge Computing How Green Is the Cloud?

Chapter 6: Foundations of Business Intelligence: Databases and Information Management Data Insights Send Envision Virgin Racing to the Finish Line New Cloud Database Tools Help Vodafone Fiji Make Better Decisions Higher Data Quality Helps Vyaire Save Lives Pursuing Sustainability with Blockchain

Chapter 7: Telecommunications, the Internet, and Wireless Technology Digital Twin Helps Doosan Optimize Its Wind Farms Can Low Earth Orbit (LEO) Satellite Internet Systems Solve the Digital Divide?

Monitoring Employees on Networks: Unethical or Good Business?

Google, Apple, and Meta Battle for Your Internet Experience

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Chapter 8: Securing Information Systems Ransomware Everywhere: Cyberattacks in the Asia-Pacific Race Against Time: The Scramble to Fix the Log4Shell Zero-Day Vulnerability DHL: Digital Resilience Strategy SolarWinds Shines a Light on Software Supply Chain Attacks

­ hapter 9: Achieving Operational Excellence and Customer Intimacy: C Enterprise Applications Lenzing Sustainably Balances Supply and Demand MillerKnoll Uses Salesforce.com to Transform Its Business Strategy Versum’s ERP Transformation The Coronavirus Pandemic Disrupts Supply Chains Around the World

Chapter 10: E-commerce: Digital Markets, Digital Goods Chewy Blends B2C and B2B E-commerce Lemonade Disrupts the Insurance Industry with “Insurtech” Engaging “Socially” with Customers on TikTok Uber Discovers That Becoming the Uber of Everything Is Not So Easy

Chapter 11: Improving Decision Making and Managing Artificial Intelligence Big Data Analytics: A New Way to Fight Wildfires What Happened to Watson Health?

Do You Know Who Is Using Your Face?

Should an Algorithm Make Our Decisions?

Chapter 12: Making the Business Case for Information Systems and Managing Projects Al-Asasyah Implements a Modern ERP Solution McAfee Turns to Automated Software Testing Sauder Woodworking Gets ERP Implementation Right Can Blockchain Digitize the Global Supply Chain?

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Preface New to This Edition Essentials of Management Information Systems, 15th edition, has been thoroughly updated to cover the latest industry and technology changes that impact the course and to provide new interactive learning opportunities.

MyLab MIS

The goal of Essentials of Management Information Systems is to provide students and instructors with an authoritative, up-to-date, interactive, and engaging introduction to the MIS field. MyLab MIS for Essentials of Management Information Systems is an extension of this goal in an interactive digital environment.

MyLab is the teaching and learning platform that empowers you to reach every student. By combining trusted author content with digital tools and a flexible platform, MyLab personalizes the learning experience and improves results for each student.

MyLab MIS features videos, animations, and interactive quizzes to foster student comprehension of concepts, theories, and issues. The MyLab MIS environment reflects the new learning styles of students, which are more social, interactive, and usable on digital devices such as smartphones and tablets.

­WHAT’S INCLUDED • Pearson eTextbook – Enhances learning both in and out of the classroom. Students can highlight, take notes, and review key vocabulary all in one place, even when offline. Seamlessly integrated interactivities and Figure Videos bring concepts to life via MyLab or the app.

• Figure Videos – Have author Ken Laudon walk students through important concepts in each chapter (23 total) using a contemporary animation platform.

• New Video Cases – A brand new collection of video cases (one per chapter) draws from Pearson’s extensive library of business and technology video clips. The cases cover key concepts and experiences in the MIS world, illustrating how real-world businesses and managers are using information technology and systems. Video cases are listed at the beginning of each chapter.

• MIS Simulations – Foster critical decision making skills with these interactive exercises that allow students to play the role of a manager and make business decisions.

• Chapter Warm Ups, Chapter Quizzes – These objective-based quizzes evaluate comprehension.

• Excel & Access Activities provided inside MyLab MIS support classes covering Office tools. In addition, Hands-On MIS Projects from the book are available.

• Running Case on Dirt Bikes USA provides additional hands-on projects for each chapter.

• Dynamic Study Modules help students study chapter topics and the language of MIS on their own by continuously assessing their knowledge application and performance in real time. These are available as graded assignments prior to class, and are accessible on smartphones, tablets, and computers.

• Learning Catalytics is a student response tool that helps you generate class discussion, customize your lecture, and promote peer-to-peer learning based on ­real-time analytics.

Learning Catalytics uses students’ devices to engage them in more interactive tasks.

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PEARSON eTEXTBOOK Essentials of Management Information Systems is also available as a stand-alone ­eTextbook which extends the learning experience, anytime and anywhere: The mobile app lets students use their eTextbook whenever they have a moment in their day, on Android and iPhone mobile phones and tablets. Students can also take notes and highlight or bookmark important content. Both the MyLab MIS and eTextbook platforms provide an affordable, simple-to-use mobile reading experience that lets instructors and students extend learning beyond class time.

­NEW AND UPDATED TOPICS The 15th edition features all new opening, closing, and “Spotlight on” cases as well as new in-text examples of organizations using IT applications. There are 4 cases per chapter. The text, figures, tables, and cases have been updated through July 2022 with the latest sources from industry and MIS research. New topics and coverage include: • Cloud computing, Big Data, and the Internet of Things (IoT): We have added more coverage of these topics throughout the text and learning package because of their importance in the MIS world. Chapter 1 now contains an introduction to these topics, followed by in-depth coverage in Chapters 2, 5, 6, 7, and 11. Case studies on Big Data can be found in Chapters 1, 4, 6, 7, and 11. There are case studies on IoT in Chapters 1, 2, 5, 6, and 7.

We have updated and expanded coverage of cloud computing in Chapter 5 (IT Infrastructure) with more detail on types of cloud services, private and public clouds, hybrid clouds, and managing cloud services. Cloud computing is also covered in Chapter 6 (databases in the cloud), Chapter 8 (cloud security), Chapter 9 (cloudbased CRM and ERP), Chapter 10 (e-commerce), and Chapter 12 (cloud software services). There are case studies on cloud computing in Chapters 2, 5, 6, and 12.

• Sustainability and ESG: We have added new coverage of how information systems promote sustainability and Environmental, Social, and Governance (ESG) goals.

Chapter 1 now includes ESG leadership as a major objective of information systems. Case studies on sustainability can be found in Chapters 2, 5, 6, 9, and 11.

• Updated and expanded coverage of artificial intelligence (AI): Chapter 11 has been rewritten to include new expanded coverage of machine learning, “deep learning,” natural language systems, computer vision systems, and robotics, reflecting the surging interest in business uses of AI and “intelligent” techniques.

• System impacts of the coronavirus pandemic: Up-to-date coverage of the impact of the coronavirus pandemic on business uses of information systems. Two “Spotlight on” cases (Chapters 2 and 6) and the Chapters 9 and 12 ending cases cover topics such as working remotely, supply chain disruptions, and rethinking global supply chains.

• Expanded coverage of blockchain, including a new Chapter 6 case study on blockchain and sustainability. New and/or expanded coverage of the following topics: • Digital resiliency • Cryptocurrencies • Metaverse • Customer experience management • Low-code and no-code development • Automated testing • Windows 11 • JavaScript • Zero trust The Laudon text, MyLab MIS, and eTextbook provide the most up-to-date and comprehensive overview of information systems used by business firms today. After using this learning package, we expect students will be able to participate in, and even lead, management discussions of information systems for their firms and under-

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stand how to use information technology in their jobs to achieve bottom-line business results. Regardless of whether students are accounting, finance, management, operations management, marketing, or information systems majors, the knowledge and information in this book will be valuable throughout their business careers.

NEW VIDEO CASES The Video Cases are all new to this edition and based on Pearson’s collection of business and technology video clips. They are available in MyLab MIS.

Chapter

Video

1. Business Information Systems in Your Career

The New HQ Is in the Cloud: Salesforce President

2. Global E-business and Collaboration

How Slack Is Preparing for the Future of Work

3. Achieving Competitive Advantage with Information Systems

Celonis Tops $11 Billion Valuation with New Round of Funding

4. Ethical and Social Issues in Information Systems

Australia Passes Law Forcing Tech Giants to Pay for News

5. IT Infrastructure: Hardware and Software

IBM Expands Cloud to Daimler

6. Foundations of Business Intelligence: Databases and Information Management

Stitch Fix CEO Sees Business of Personalization as Key to Success; Stitch Fix President on Booming Growth Amid Pandemic

7. Telecommunications, the Internet, and Wireless Technology

Nokia CEO Suri Sees 5G Market Maturity in 2021

8. Securing Information Systems

Fastly Internet Outage Exposes Vulnerability of Major Websites; Ransomware Is a Worldwide Problem: Palo Alto Networks

9. Achieving Operational Excellence and Customer Intimacy: Enterprise Applications

Software Startup Freshworks Not in a Rush to Raise Capital

10. E-commerce: Digital Markets, Digital Goods

Shopify Earnings Soar Even as Economies Reopen; Shopify is Writing the Future of Commerce, Says President

11. Improving Decision Making and Managing Artificial Intelligence

Predictive Tech Can Save $3B-$4B A Year: Tom Siebel

12. M aking the Business Case for Information Systems and Managing Projects

Software Design Is “Really on a Tear,” Figma CEO Says

­Solving Teaching and Learning Challenges

MyLab MIS is the teaching and learning platform that empowers you to reach every student. By combining trusted authors’ content with digital tools and a flexible platform, MyLab MIS personalizes the learning experience and improves results for each student.

And with MIS Sims and Excel and Access Activities, students understand how MIS concepts will help them succeed in their future careers.

MyLab MIS and the Pearson eTextbook offer unique digital interactive features that hold student attention spans longer and make learning more effective, including 23 Figure Videos that walk students through key concepts in each chapter, a collection of online video cases, and interactive quizzes. All of this is available anytime, anywhere, on any digital device. The result is a comprehensive learning environment that will heighten student engagement and learning in the MIS course.

The Laudon learning package is more current, real-world, and authoritative than ­competitors’. Essentials of MIS, 15e; MyLab MIS; and Pearson eTextbook help ­students 20

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understand MIS concepts and issues through extensive use of real-world company examples, a wide variety of text and video cases based on real-world organizations, and numerous line art illustrations, interactive animations, and hands-on software projects.

The Laudons are known for their outstanding real-world case studies, which describe how well-known business firms are using IT to solve problems and achieve objectives. Students are often asked to analyze the business problem and propose alternative solutions.

The Laudons also provide hands-on MIS software and management decision-making problems in each chapter that are based on real-world companies and business scenarios.

The Laudon text and learning package now has a very strong career focus, which incentivizes students to learn by showing exactly how each chapter will help them prepare for future jobs. In addition to Career Opportunities, MyLab MIS features Career Resources, including how to incorporate MIS knowledge into resumes, cover letters, and job interviews.

THE CORE TEXT The Core text provides an overview of fundamental MIS concepts using an integrated framework for describing and analyzing information systems. This framework shows information systems composed of people, organization, and technology elements and is reinforced in student projects and case studies. The Core text consists of 12 chapters with hands-on projects covering the most essential topics in MIS. An important part of the Core text are the Video Cases, a case study for each chapter built around one or two videos available on the Pearson Clips platform. Videos are keyed to the topics of each chapter.

Chapter Organization

Each chapter contains the following elements: • A list of Learning Objectives • Lists of the Case Studies and Video Cases for each chapter • A chapter-opening case describing a real-world organization to establish the theme and importance of the chapter • A diagram analyzing the opening case in terms of the people, organization, and technology model used throughout the text • Two “Spotlight on” case studies with Case Study Questions

Business Challenges • Devise technology strategy • Select technologies

• Revise job functions • Revise business processes

• Smartphones • Object-recognition technology • HD cameras • Sensors

People

Organization

Technology

• Mounting competition from online retailers • Opportunities from new technology

Information System

Business Solutions

AWM Smart Shelf • View and track products in real time • Personalize shopper experiences

• Increase sales • Improve service • Improve operations

A diagram accompanying each chapter-opening case graphically illustrates how people, organization, and technology elements work together to create an information system solution to the business challenges discussed in the case.

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• ­A Career Opportunities section showing students how to use the text for job hunting and career preparation • A Review Summary keyed to the Student Learning Objectives • A list of Key Terms that students can use to review concepts • Review questions for students to test their comprehension of chapter material • Discussion questions raised by the broader themes of the chapter • A series of Hands-on MIS Projects consisting of one Management Decision Problem, a hands-on application software project, and a project to develop Internet skills • A Collaboration and Teamwork Project to develop teamwork and presentation skills with options for using open source collaboration tools • A chapter-ending case study for students to apply chapter concepts • Chapter references

Student Learning-Focused

Student Learning Objectives are organized to focus student attention. Each major chapter section is based on a Learning Objective and each chapter concludes with a Review Summary and Review Questions organized around these Learning Objectives.

KEY FEATURES We have enhanced the text to make it more interactive, leading edge, and appealing to both students and instructors. The features and learning tools are described in the following sections.

Business-Driven with Real-World Business Cases and Examples

The text helps students see the direct connection between information systems and business performance. It describes the main business objectives driving the use of information systems and technologies in corporations all over the world: operational excellence, new products and services, customer and supplier intimacy, improved decision making, competitive advantage, survival and promoting ESG leadership. Intext examples and case studies show students how specific companies use information systems to achieve these objectives.

We use current (2022) examples from business and public organizations throughout the text to illustrate the important concepts in each chapter. Most of the case studies describe companies or organizations that are familiar to students, such as Uber, Facebook, Tesco, Amazon, PayPal, Coca Cola, Disney, DHL, and Zoom.

Hands-On Text Activities

Real-world business scenarios and data help students to learn firsthand what MIS is all about. These projects heighten student involvement in this exciting subject.

• “Spotlight on” Cases. Two short cases in each chapter can be used to stimulate student interest and active learning. Each case concludes with case study questions.

The case study questions provide topics for discussion or written assignments.

• Hands-On MIS Projects. Every chapter concludes with a Hands-On MIS Projects section containing three types of projects: one Management Decision Problem; a hands-on application software exercise using Microsoft Excel, Access, or web page and blog creation tools; and a project that develops Internet business skills. Files for these projects are available in MyLab MIS. As mentioned, the Dirt Bikes USA running case in MyLab MIS provides additional hands-on projects for each chapter.

• Collaboration and Teamwork Projects. Each chapter features a collaborative project that encourages students working in teams to use Google Drive, Google Docs, or other open source collaboration tools. The first team project in Chapter 1 asks students to build a collaborative Google site.

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SPOTLIGHT ON: ORGANIZATIONS

Carbon Lighthouse Lights Up with the Internet of Things (IoT), Big Data, and Cloud Computing

According to the US Environmental Protection Agency (EPA), more carbon emissions come from operating commercial, residential, and commercial properties than from transportation. Emissions from cars, trucks, and aircraft account for only

Each chapter contains two Spotlight on cases on People, Organizations, or Technology, using real-world companies to illustrate chapter concepts and issues.

comes from generation of electric power, (manufacturing) industry, commercial and residential property, and agriculture.

San Francisco–based Carbon Lighthouse is tackling this problem head-on by focusing on reducing carbon emissions produced by commercial and industrial buildings. The company offers energy savings services that make it profitable for building owners to reduce their energy consumption using their existing equipment. Carbon Lighthouse has reduced more than 260,000 metric tons of emissions, equivalent to the energy produced by 18 power plants, while providing How is this possible? Many businesses complain that it costs more money to be environmentally responsible. This does not have to be so.

Acting on findings from advanced data analytics, commercial and building owners can reduce carbon emissions while producing cost savings.

Carbon Lighthouse uses a software platform called Carbon Lighthouse Unified Engineering square feet of clients’ commercial and industrial real estate and 5 billion data points. CLUES collects the building data in real time as it is generated. It then develops models that lead to insights about how to reduce the client’s carbon emissions and how much money will be saved. Carbon Lighthouse uses Amazon’s cloud services to run its computers and store data such as building addresses and square footage, along with time-series data such as the data collected on-site at buildings.

When a new client contracts for Carbon Lighthouse services, the company sends a sensor kit to start new data streaming from the cli-

Case Study Questions encourage students to apply chapter concepts to real-world companies in class discussions, student presentations, or writing assignments.

better. Internet of Things (IoT) sensors, Big Data, cloud computing, and powerful data analysis software rather than expensive capital upgrades allow Carbon Lighthouse to unlock hidden returns in existing building mechanical systems and translate energy efficiency into tangible long-term savings.

One of Carbon Lighthouse’s clients is L&B Realty Advisors, a Dallas-based real estate investment advisor with $9 billion under management.

L&B has over 50 years’ experience acquiring, managing, and selling real estate for its clients.

For L&B, sustainability is a key consideration when evaluating and managing investments.

L&B worked with Carbon Lighthouse on its One Biscayne Tower property. The building was already rated as highly energy-efficient, with engineering staff using a dashboard to track overall utility consumption.

Carbon Lighthouse first established a data stream that fed detailed heating, ventilation, and air conditioning (HVAC); lighting; and occupancy data into the CLUES platform. The company then worked with the L&B property and engineering teams to assess One Biscayne Tower’s existing building systems and look for energy savings and operational improvements. CLUES analysis of the data stream identified and quantified new HVAC control optimizations as well as lighting retrofits that property and building engineering teams had long sought to implement. (A lighting retrofit is an upgrade to light fixtures or lamps, increasing energy efficiency.)

The annual expense savings from these energy conservation measures for One Biscayne Tower are financially guaranteed by Carbon Lighthouse.

And as CLUES collects more data, its algorithms become more accurate and provide additional zone isolation and central plant measures for One Biscayne Tower, generating more energy efficiency and cost savings than projected.

The building engineering and property manager knew what lighting fixtures and aesthetic output they wanted, but they did not have the

CASE STUDY QUESTIONS 1. Identify the problem described in this case study. Is it a people problem, an organizational problem, or a technology problem? Explain your answer.

3. Describe Carbon Lighthouse’s problemsolving methodology for reducing both carbon emissions and costs.

2. What role have the IoT, Big Data analytics, and cloud computing played in developing a solution for this problem?

Students can practice using software in realworld settings for achieving operational excellence and enhancing decision making.

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Chapter

111

IMPROVING DECISION MAKING: USING WEB TOOLS TO CONFIGURE AND PRICE AN AUTOMOBILE

Each chapter features a project to develop Internet skills for accessing information, conducting research, and performing online calculations and analysis.

Software skills: Internet-based software Business skills: Researching product information and pricing

3-10 In this exercise, you will use software at car-selling websites to find product information about a car of your choice and then use that information to make an important purchase decision. You will also evaluate two of these sites as selling tools.

You are interested in purchasing a lightly used, low-mileage Honda CR-V (or some other car of your choice). Go to the Carsdirect.com website, and begin your investigation. Research the various used Honda CR-V models for sale; choose one you prefer in terms of price, features, and safety ratings. Then visit the Carvana.com website. Compare the information on pricing and available inventory at Carvana’s website with that of Carsdirect for the Honda CR-V. Try to locate the lowest price for the car you want in inventory along with financing and vehicle pickup or delivery. Compare the buying experience at both websites.

Which website do you prefer for this type of purchase? Explain your answer.

Developing Career Skills For students to succeed in a rapidly changing job market, they should be aware of their career options and how to go about developing a variety of skills. With MyLab MIS and Essentials of Management Information Systems 15e, we focus on these skills in the following ways.

CAREER OPPORTUNITIES AND RESOURCES

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Every student who reads this text wants to know: How will this book help my career?

The Career Opportunities feature shows how to use this book and MyLab MIS as tools for job-hunting and career-building. Job interviewers will typically ask about why you want the job, along with your ability to communicate, multitask, work in a team, show leadership, solve problems, and meet goals. These are general skills and behaviors you’ll need to succeed in any job, and you should be prepared to provide examples from your course work and job experiences that demonstrate these skills. But there are also business knowledge and professional skills that employers will ask you about. Career Opportunities will show you how to use what you have learned in this text to demonstrate these skills.

The Career Opportunities section, identified by this icon is the last major section of each chapter under the heading “Understand how MIS can help your career”.

There you will find a description of an entry-level job for a recent college graduate based on a real-world job description from major online job sites related to the topics covered in that chapter. The name of the company offering the job and its location have been changed. Each chapter’s job posting describes the required educational background and specific job skills, and suggests some of the business-related questions that might arise during the job interview. The authors provide tips for answering the questions and preparing for the interview. Career Opportunities also show where students can find out more information about the technical and business knowledge required for the job in this text and on the web and social media.

Below are the job descriptions covered by the Career Opportunities sections. They are based on real-world job postings from both large and small businesses. Many are new to this edition. A few of these jobs call for an MIS major, others for MIS course work, but many postings are not that specific. Some require some previous internship or job experience, but many are entry-level positions suitable for new college graduates, and some of these positions provide on-the-job training. However, all require knowledge of business information systems and applications and the ability to work in a digital environment.

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Chapter

Career Opportunity Job Description

1. Business Information Systems in Your Career

Client Support Assistant

2. Global E-business and Collaboration

Customer Success Analyst

3. Achieving Competitive Advantage with Information Systems

Entry Level Business Development Representative

4. Ethical and Social Issues in Information Systems

Junior Privacy Analyst

5. IT Infrastructure: Hardware and Software

Coordinating Product Manager

6. Foundations of Business Intelligence: Databases and Information Management

Entry Level Data Analyst

7. Telecommunications, the Internet, and Wireless Technology

Web Developer

8. Securing Information Systems

Identity and Access Management Support Specialist

9. Achieving Operational Excellence and Customer Intimacy: Enterprise Applications

Supply Chain Analyst

10. E-commerce: Digital Markets, Digital Goods

Junior E-Commerce Associate

11. Improving Decision Making and Managing Artificial Intelligence

Sales Coordinator

12. M aking the Business Case for Information Systems and Managing Projects

Junior Business Systems Analyst

Students can use Career Opportunities to shape their resumes and career plans as well as to prepare for interviews. For instructors, Career Opportunities are potential projects for student research and in-class discussion.

In MyLab MIS we have provided additional Career Resources, including ­job-hunting guides and instructions on how to build a Digital Portfolio demonstrating the business knowledge, application software proficiency, and Internet skills acquired from using the text. The portfolio can be included in a resume or job application or used as a learning assessment tool for instructors.

Instructor Teaching Resources Supplements available to instructors at www.pearson.com

Features of the Supplement

Instructor’s Manual

• Chapter-by-chapter summaries • Examples and activities not in the main book • Teaching outlines • Teaching tips • Solutions to all questions and problems in the book

Test Bank authored by Professor Kenneth Laudon, New York University

The authors have worked closely with skilled test item writers to ensure that higher-level cognitive skills are tested. Test bank multiple-choice questions include questions on content but also include many questions that require analysis, synthesis, and evaluation skills.

AACSB Assessment Guidelines As a part of its accreditation activities, the AACSB has developed an Assurance of Learning Program designed to ensure that schools do in fact teach students what they promise. Schools are required to state a clear mission, develop a coherent business program, identify student learning objectives, and then prove that students do in fact achieve the objectives.

We have attempted in this book to support AACSB efforts to encourage assessment-based education. The end papers of this edition identify student learning objectives and anticipated outcomes for our Hands-On MIS projects. The authors will provide custom advice on how to use this text in colleges with different missions and assessment needs. Please email the authors or contact your local Pearson representative for contact information.

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Supplements available to instructors at www.pearson.com

Features of the Supplement

Computerized TestGen

TestGen allows instructors to: • Customize, save, and generate classroom tests • Edit, add, or delete questions from the Test Item Files • Analyze test results • Organize a database of tests and student results

PowerPoints authored by Professor Kenneth Laudon, New York University

The authors have prepared a comprehensive collection of PowerPoint slides for each chapter to be used in your lectures. Many of these slides are the same as used by Ken Laudon in his MIS classes and executive education presentations. Each of the slides is annotated with teaching suggestions for asking students questions, developing in-class lists that illustrate key concepts, and recommending other firms as examples in addition to those provided in the text. The annotations are like an Instructor’s Manual built into the slides and make it easier to teach the course effectively.

PowerPoints meet accessibility standards for students with disabilities. Features include but are not limited to: • Keyboard and Screen Reader access • Alternative text for images • High color contrast between background and foreground colors

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About the Authors Kenneth C. Laudon has been a Professor of Information Systems at New

York University’s Stern School of Business. He holds a B.A. in Economics from Stanford and a Ph.D. from Columbia University. He has authored twelve books dealing with electronic commerce, information systems, organizations, and society. Professor Laudon has also written more than forty articles concerned with the social, organizational, and management impacts of information systems, privacy, ethics, and multimedia technology. At NYU’s Stern School of Business, Ken Laudon has taught courses on Managing the Digital Firm, Information Technology and Corporate Strategy, Professional Responsibility (Ethics), and Electronic Commerce and Digital Markets.

Jane Price Laudon is a management consultant in the information systems area and the author of seven books. Her special interests include systems analysis, data management, MIS auditing, software evaluation, and teaching business professionals how to design and use information systems. Jane received her Ph.D. from Columbia University, her M.A. from Harvard University, and her B.A. from Barnard College.

She has taught at Columbia University and the New York University Stern School of Business. She maintains a lifelong interest in languages and civilizations of Asia.

Carol Guercio Traver is a graduate of Yale Law School and Vassar Col-

lege. She has had many years of experience representing major corporations, as well as small and medium-sized businesses, as an attorney with a leading international law firm, with specific expertise in technology law, Internet law, privacy law, intellectual property law, and general corporate law. Carol is the co-author of E-commerce: business. technology. society (Pearson), as well as several other texts on information technology, and has been the lead project manager/editor on a number of technologyrelated projects. Carol is the co-founder and president of Azimuth Interactive, one of the first edtech firms and a provider of digital media and publisher services for the education industry.

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Acknowledgments The production of any book involves valued contributions from a number of persons.

We would like to thank all of our editors for encouragement, insight, and strong support for many years. We thank our editors, Ellen Thibault, Jenifer Niles, and Content Producer, Purnima Narayanan, for their roles in managing the project. Thanks also to Product Manager Marcus Scherer for his contributions and to Gowthaman ­Sadhanandham and his Integra team for their production work.

We want to thank our supplement authors for their work, including the following MyLab MIS content contributors: Robert J. Mills, Utah State University; Chris Parent, Rivier University; Maureen Steddin; Roberta Roth, University of Northern Iowa; Gipsi Sera, Indiana University; and John Hupp, Columbus State University.

We are indebted to Todd Traver for his help with security topics, to Erica Laudon for her contributions to Career Opportunities, and to Megan Miller for her help during production. We thank Christopher Traver for his help with database topics and software projects.

Special thanks to Professor Mark Gillenson, Fogelman College of Business and Economics, University of Memphis for his contributions to the discussion of agile development and testing.

We also want to especially thank all our reviewers whose suggestions helped improve our texts. Reviewers for recent editions include: Abdullah Albizri, Montclair State University Channa J. Kumarage, Saint Cloud State University Robert M. Benavides, Collin College Weiqi Li, University of Michigan-Flint ­Gordon Bloom, Virginia Commonwealth Liu Liu, Old Dominion University University Susan Mahon, Collin College Brett Cabradillia, Coastal Carolina Robert Morphew, Texas Woman’s University Community College John Newman, Coppin State University Qiyang Chen, Montclair State University Jose Ng, Montclair State University Amita Chin, Virginia Commonwealth Richard Peterson, Montclair State University University Lynn Collen, St. Cloud State University Robin Poston, University of Memphis Reet Cronk, Harding University Uldarico Rex Dumdum, Marywood University Dr. Michael Raisinghani, Texas Woman’s University Mahmoud Elhussini, Montclair State Patricia Ryan, Southeast Missouri State University Anne Formalarie, Plymouth State University University Sue Furnas, Collin College Ethné Swartz, Montclair State University Amir Talaei-Khoei, University of Nevada Scott Hamerink, Oakland University Reno Terry Howard, University of Detroit Mercy Paulus Van Vliet, University of Nebraska at Dae Youp Kang, University of Memphis Omaha Rajkumar Kempaiah, College of Mount Saint Vincent

Global Edition Acknowledgments Pearson would like to thank the following people for their work on the Global Edition: Contributors Bernard Bouwman Joyce Chan, City University of Hong Kong June Clarke, Sheffield Hallam University Imran Medi, Asia Pacific University of Technology and Innovation Yasser Mohamed Ibrahim Sabri, Cairo University Bernd Schenk, University of Liechtenstein PK Senyo, University of Southampton Jon and Diane Sutherland

Reviewers

Nash Milic, American University of Sharjah Bernd Schenk, University of Liechtenstein Yuen Yee Yen, Multimedia University

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Essentials of Management Information Systems

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