Experiencing MIS, 8th Edition David M Kroenke Instructor Resource Manual

Type:

Instructor Manual

Resource:

Experiencing MIS

Edition:

8th Edition

Author(s):

David M. Kroenke Randall J. Boyle

Instructor’s Resource Manual For

Experiencing MIS Eighth Edition David M. Kroenke Randall J. Boyle Prepared by Roberta Roth

Kroenke/Boyle - Experiencing MIS 8th Ed - Instructor’s Manual

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AE-1

Application Exercises

Part 1 Chapter 1: Quality of Information with Excel AE1-1. The spreadsheet in Microsoft Excel file Ch01Ex01_E8e 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: 4, 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.

(LO: 4, 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.

(LO: 4, 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

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have to be added to a total for all three plants. 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: 4, 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: 4, 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: 4, Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: 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: 4, Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: Information Technology)

Chapter 1: Comparing Information from Excel and Access AE1-2. The database in the Microsoft Access file Ch01Ex02_E8e contains the same records of employee activity on special projects as in Application Exercise 1-1.

Before going any further, open that database and view the records in the Employee Hours table. .

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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 AE1, parts a–f. If no query meets the need, explain why.

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

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

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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 unneeded information in the query, the data is more than sufficient to answer the question. (LO: 4, Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: Information Technology)

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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 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 unneeded information in the query, the data is more than sufficient to answer the question. (LO: 4, Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: Information Technology)

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

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

b. What conclusions can you make 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: 4, 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?

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: 4, 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.

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The sites below 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.

This project gives you a realistic look at expected IT salaries. You can also use the sites from this project to look at wage data for other occupations (i.e., jobs in your major).

(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.) b. Is the demand for IT jobs (networking administrators) projected to increase more than the national average? Why or why not? c. Is the average salary for IT workers (networking administrators) projected to increase more than the national average? Why or why not? d. Why do you think the projections for job demand and salary increase for IT workers are so high?

Since this is an experiential exercise, no specific solution is provided. Student answers will vary. (LO: 3, Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: Information Technology)

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Chapter 2: Use PowerPoint to Diagram Business Process AE2-1. PowerPoint file Ch02Ex01_E8e contains a copy of Figure 2-4 as well as a collection of spare shapes. Using these shapes, create a business process for Ship Order to Customers activity. Use your own knowledge and expertise to do this.

Assume that the inputs to the activity are the Customer Order and Items as well as a list of items from the Receive Goods Place in Inventory activity.

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

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Chapter 3: Use Excel to Compute Inventory Value •

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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 Figure AE-1 to understand the meaning of the data. Now use Excel to create a similar spreadsheet. Note the following: The top heading is in 20-point Calibri font. It is centered in the spreadsheet. Cells A1 through H1 have been merged.

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

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, however. b. Place the current date so that it is 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 = Total Rental Revenue / Number on Hand Revenue as Percent of Cost of Inventory = Total Rental Revenue / Cost of Current Inventory

Please use these formulas in your spreadsheet, as shown in Figure AE-1.

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(LO: 6, Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: Information Technology) e. Format the cells in the columns, as shown.

(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 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.

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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)

Chapter Extension 1: Managerial Decision Making with Excel CE1-1. Suppose that you have been asked to assist in the managerial decision about 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 Word file CE01Ex01_E8e and create the spreadsheet.

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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

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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: 4, 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 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 Microsoft OneDrive to make the file available to the team members. This system provides version management, so that changes made by team members are tracked and coordinated. (LO: 4, Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: Information Technology)

Chapter Extension 1: Managerial Decision Making with Access CE1-2. 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:

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(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.

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

Use Group By. a. Design and run Access queries to obtain the answers to these questions, using the data in CE01Ex02_E8e.

Question 1:

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Question 2:

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Question 3:

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Question 4:

Question 5:

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Question 6 (Extra Credit):

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(LO: 4, 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: 4, 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 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. Another option is Microsoft One Drive. The team members can be invited to a workspace where the database is stored, use it, and modify it with version management. A third 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:

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

Chapter Extension 2: Free and Easy Collaboration Tools CE2-1. This exercise requires you to experiment with Google Drive. You will need two Google accounts to complete this exercise. a. In a memo, explain the role of communication in collaboration. Go to http://drive.google.com/ and sign in with one of your Google accounts. Upload your memo using Google Drive. Save your uploaded document and share it with the email in your second Google account. Sign out of your first Google account.

(If you have access to two computers situated close to each other, use both of them for this exercise. You will see more of the Google Drive functionality by using two computers. If you have two computers, do not sign out of your Google 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 Google accounts.) b. Open a new window in your browser. Access http://drive.google.com/ from that second window, and sign in using your second Google account. Open the document that you shared in step a. c. Change the memo by adding a brief description of the need to manage the content in many collaboration projects. Save the document from your second account. If you are using just one computer, sign out from your second account. d. Sign in on your first account. Open the most recent version of the memo and add a description of the role of version histories. Save the document. (If you are using two computers, notice how Google warns you that another user is editing the document at the same time. Click Refresh to see what happens.) If you are using just one computer, sign out from your first account. e. Sign in on your second account. Reopen the shared document. From the File menu, save the document as a Word document. Describe how Google processed the changes to your document Since this is an experiential exercise, no specific solution is provided. (LO: 3, Learning Outcome: Explain how IS can enhance systems of collaboration and teamwork, AACSB: Information Technology) CE2-2. This exercise requires you to experiment with Microsoft OneDrive. You will need two Office Live IDs to complete this exercise. The easiest way to do this is to work with a classmate. If that is not possible, set up two Office Live accounts, using two

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different Hotmail addresses. a. Go to www.onedrive.com, and sign in with one of your accounts. Create a memo about collaboration tools using the Word Web App. Save your memo. Share your document with the email in your second Office Live 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 Live 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 Live accounts.) b. Open a new window in your browser. Access www.onedrive.com from that second window and sign in using your second Office Live account. Open the document that you shared in step a. c. Change the memo by adding a brief description of content management. Do not save the document yet. If you are using just one computer, sign out from your second account. 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.) e. Sign in on your second account. Reopen the shared document. From the File menu, save the document as a Word Document. Describe how OneDrive processed the changes to your document.

Since this is an experiential exercise, no specific solution is provided. (LO: 3, Learning Outcome: Explain how IS can enhance systems of collaboration and teamwork, AACSB: Information Technology)

Part 2 Note: the exercises for the chapter extensions are basically tutorials. Therefore, they are presented first, followed by exercises for Chapters 4–6.

Chapter Extension 4: Learning Excel CE4-1. Complete Chapter Extension 4, CE4-1, page 441.

See Figures CE4-1 through CE4-30. (LO: 1, Learning Outcome: Explain how .

Commented [nl1]: Should this be OneDrive

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information systems can be used to assist in decision making, AACSB: Information Technology) CE4-2. Complete Chapter Extension 4, CE4-2, page 441. a. Name and save your workbook using a name of your own choosing.

No specific answer; a task to be performed.

(LO: 1, Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: Information Technology) b. Enter the value This is the content of Cell C7 into cell C7.

(LO: 3, Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: Information Technology) c. Use F2 to change the value in cell C7 to This is part of the content of Cell C7.

(LO: 3, Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: Information Technology) d. Add the value January to cells B2 through B14. Key the data just once.

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(LO: 3, Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: Information Technology) e. Add the value January to cell C2 and the value February to cell C3. Highlight both cells C2 and C3 and drag the small black box down to cell C14. Explain what happens.

Excel interprets this pattern to display the sequence of month names. (LO: 3, Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: Information Technology) f. Create a list of odd numbers from 1 to 11 in cells C3 through C8. Key only the

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values 1 and 3.

(LO: 3, Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: Information Technology) g. Enter the value MIS-1 in cell D2 and the value MIS-2 in cell D3. Highlight cells D2 and D3 and drag the small black box down to cell D14. Explain what happens.

Excel interprets this pattern to increment the numbers in a sequence. (LO: 3, .

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Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: Information Technology) CE4-3. Complete Chapter Extension 4, CE4-3, page 441. a. Place the labels Part Description, Quantity on Hand, Cost, and Total Value in cells B2, C2, D2, and E2, respectively. Center each label in its cell and make the labels bold. (Do this by highlighting the labels and clicking the bold B in the Font section of the Home tab). Make each column large enough to show the entire label after formatting.

b. In cells B3, B4, B5, B6, and B7, respectively, enter the following values: This is where one would type the description of Part 1 This is where one would type the description of Part 2 This is where one would type the description of Part 3 This is where one would type the description of Part 4 This is where one would type the description of Part 5

Enter these values using the fewest possible keystrokes.

(LO: 3, Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: Information Technology) c. Enter the Quantity On Hand values 100, 150, 100, 175, and 200 in cells C3 through C7, respectively. Enter these values using the fewest possible keystrokes.

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(LO: 3, Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: Information Technology) d. Enter the Cost values $100, $178, $87, $195, and $117 in cells D3 through D7, respectively. Do not enter the dollar signs. Instead, enter only the numbers and then reformat the cells so that Excel will place them.

(LO: 5, Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: Information Technology) e. In cell E3, enter a formula that will multiply the quantity on hand (C3) by the cost (D3).

Entering the formula:

The result of the formula:

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(LO: 6, Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: Information Technology) f. Create the same formula in cells E4 through E7. Use select and copy operations.

(LO: 6, Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: Information Technology) g. Explain what is magic about the operation in part f.

When the formula was copied down the column, the row references were automatically adjusted to the row references of the destination cells. (LO: 6, Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: Information Technology) h. Print the result of your activities in parts a–f. Print your document in landscape mode, showing cell boundaries and row and column names.

(LO: 7, Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: Information Technology)

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Chapter Extension 5: Data Modeling with PowerPoint CE5-1. Complete Chapter Extension 5, CE5-2, page 455. Use PowerPoint to document your entity-relationship design.

First, discuss with users the basic things to keep track of, the attributes of those things that are important, and how those things are related. With this information, we can propose a data model with entities, attributes, and relationships. In this example, an initial data model is shown.

The many-to-many relationship can be resolved by adding a third entity to the data model in order to capture each occurrence of a team checking out a piece of equipment. An ID attribute has been created so that each equipment item is uniquely identified.

Once the users approve of the data model, we can create the database design and develop tables with foreign keys to represent the table relationships. As shown in the above data model, the Team Name, Item ID, and Date Checked Out serve as a concatenated primary key for the Checked Out Item entity. Team Name and Item ID are also foreign keys representing the relationships between Team and Checked Out Item, and Equipment and Checked Out Item. (LO: 3, Learning Outcome: Discuss best practices for using and managing databases, AACSB: Information Technology) CE5-2. Complete Chapter Extension 5, CE5-3, page 455. Use PowerPoint to document your entity-relationship design.

First, discuss with users the basic things to keep track of, the attributes of those things .

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that are important, and how those things are related. With this information, we can propose a data model with entities, attributes, and relationships. In this example, a data model is shown below.

As shown in the data model above, the Customer Name, Bicycle ID, and Rental Date/Time serve as a concatenated primary key for the Bicycle Rental entity.

Customer Name and Bicycle ID are also foreign keys representing the relationships between Customer and Bicycle Rental, and Bicycle and Bicycle Rental. (LO: 3, Learning Outcome: Discuss best practices for using and managing databases, AACSB: Information Technology)

Chapter Extension 6: Apply Access Skills CE6-1. Complete Chapter Extension 6, CE6-1, page 475. Requires you to complete CE51 first.

NOTE: Solutions created by students will vary. A sample solution is presented here.

Tables:

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Data Entry Form:

Report:

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(LO: 1-5, Learning Outcome: Discuss best practices for using and managing databases, AACSB: Information Technology) CE6-2. Complete Chapter Extension 6, CE6-2, page 476. Requires you to complete CE52 first.

NOTE: Solutions created by students will vary. A sample solution is presented here.

Tables:

Data Entry Form:

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Report:

(LO: 1-5, Learning Outcome: Discuss best practices for using and managing databases, AACSB: Information Technology)

Chapter Extension 7: Getting the Best Features from Excel and Access CE7-1. Complete Chapter Extension 7, CE7-1, page 504.

NOTE: Solutions created by students will vary. A sample solution is presented here.

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Most people prefer the column chart, but this is a matter of personal preference. Both chart types depict the same information. (LO: 3, Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: Information Technology) CE7-2. Complete Chapter Extension 7, CE7-2 and CE7-3, page 504.

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NOTE: Solutions created by students will vary. A sample solution is presented here.

Original My_Expenses table:

Query to sum by date:

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Query to compute sum and average by category

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(LO: 4, Learning Outcome: Discuss best practices for using and managing databases, AACSB: Information Technology) and (LO: 5, Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: Information Technology) CE7-3. Complete Chapter Extension 7, CE7-4, page 504.

NOTE: Solutions created by students will vary. A sample solution is presented here.

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(LO: 6, Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: Information Technology) CE7-4. Complete Chapter Extension 7, CE7-5, page 504.

NOTE: Solutions created by students will vary. A sample solution is presented here.

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This situation is quite common. The database is often used to record transactions associated with an activity, project, etc. The transactions can be summarized by category and imported into a spreadsheet. In the spreadsheet, it is easy to set up a budget comparison or prepare some graphs/charts to depict the data. (LO: 7, Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: Information Technology)

Chapter 4: Using Parameterized Queries AE4-1. 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 Ch04Ex1_E8e. Open the file and familiarize yourself with the data in the Customer table. b. Click Create in the Access ribbon. Click the icon labeled Query Design. Select the Customer table as the basis for the query by clicking on Customer. 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.

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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 Maple 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.

The user can scroll through the other records to view customers with Amanda in their names. (LO: 3, Learning Outcome: Discuss best practices for using and managing databases, AACSB: Information Technology)

Chapter 4: Using Excel and Access to Inform Computer Upgrade Decisions AE4-2. You have been asked to help your department decide 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 CPUs or smaller memory as candidates for upgrading. To do this, you need to move the data from Excel and into Access.

• Once you have analyzed the data and determined the computers to upgrade, you .

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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. a. To begin, download the Excel file Ch04Ex02_E8e from www.pearsonhigher.com/kroenke 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 Ex4-2_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 Ch04Ex02_E8e into a single table in your Access database. On the ribbon, select EXTERNAL DATA and 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 second and third worksheets, again click EXTERNAL DATA/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. 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 2 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 2 and memory of 6 produces a result of 12 computers. The next increment of CPU = 2.5 and memory = 8 produces a list of 19 computers, which is over the limit. 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.

The table produced appears here:

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(LO: 2, Learning Outcome: Describe the major types of computer hardware and software used by companies, AACSB: Information Technology)

Chapter 4: Using Open Source Software 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. a. Browse to www.libreoffice.org.

No specific answer; a task to be performed by the student b. Click on the Download menu and select LibreOffice Fresh.

No specific answer; a task to be performed by the student c. Download and install the latest version of LibreOffice. (There are LibreOffice versions for Windows, Mac OS X, and Linux.)

No specific answer; a task to be performed by the student d. Open LibreOffice Calc. (There will be a shortcut on your desktop.)

No specific answer; a task to be performed by the student e. Enter your name, date, and time into the new spreadsheet in cells A1, A2, and A3, respectively.

No specific answer; a task to be performed by the student .

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f. Click Tools and Options.

No specific answer; a task to be performed by the student g. Expand the Load/Save menu and click on General.

No specific answer; a task to be performed by the student h. Change the “Always save as” dropdown from ODF Spreadsheet to Microsoft Excel 2007-2013 XML and click OK. (You can do the same thing for documents and presentations.)

No specific answer; a task to be performed by the student i. Click File, Save, and Save.

No specific answer; a task to be performed by the student j. Take a screenshot with your name showing and paste it into your document. (You can take a screenshot by pressing Alt + Print Screen.)

No specific answer; a task to be performed by the student 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)

Chapter 5: Graphing with Excel AE5-1. As stated in Chapter Extension 7, a common scenario is to use Microsoft Access with Excel: Users 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_E8e from www.pearsonhighered.com/kroenke. Open the database; select Database Tools/Relationships. As you can see, there are three tables, Product, .

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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 in a pie chart. 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_E8e.

(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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b. Follow a similar procedure to create a bar chart. 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)

Chapter 5: Find the Pianos!

AE5-2. Read Case Study 5 on pages 149–153. A copy of Dean’s database is stored in the Access file Ch05Ex02_E8e. 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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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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f.

Write a query to produce the report in Figure 5-24 on page 152.

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(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: Use Access to Allocate Computers to Employees 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 results. a. Download the Excel file named Ch05Ex03_E8e from www.pearsonhighered.com/kroenke. Open the spreadsheet and review the data in the Employee and Computer worksheets. b. Create a new Access database with the name Ex5-3_Solution. Close the table that Access automatically creates and Access will delete it. c. Import the data from the Excel spreadsheet into your database. Import the Employee worksheet into a table name 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. f. Open the Form Wizard dialog box (under CREATE, Form Wizard) 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 in Design mode and delete EmployeeID and ComputerID. These values are maintained by Access, and it is just a distraction to keep them. Save your changes and open the Employee form in layout mode. Adjust the size of the subform until your form looks like that in Figure AE-3. h. Use your form to add two new computers to Michael Murphy. Both computers are Dells, and both use Windows 10; one costs $1,750, and the other costs $1,400.

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i. Delete the Lenovo computer for Hal Larsen.

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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.

(LO: 3, Learning Outcome: Discuss best practices for using and managing databases, AACSB: Information Technology)

Chapter 6: Internet Speed: Getting What You Pay For? AE6-1. Numerous Web sites are available that will test your Internet data communications speed. You can find one good at http://speedof.me/ (If that site is no longer active, Google or Bing “What is my Internet speed?” to find another speedtesting site. Use it.) a. While connected to your university’s network, go to http://speedof.me/ and test your speed. Record your average upload and download speeds.

Student answers will vary, depending on the specific data communication configuration in use. b. Run the test again from your home or a public wireless site. Compute your .

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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. c. Contact a friend or relative in another state. Ask him or her to run the http://speedof.me/ test.

Student answers will vary, depending on the specific data communication configuration in use. d. Compare the results in parts a, b, and 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: 2, Learning Outcome: Compare and contrast different ways of connecting to the Internet, AACSB: Information Technology)

Chapter 6: Estimating Cloud Costs with Excel 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-4 shows the structure of the spreadsheet into which your customers will input their requirements. You can download this spreadsheet in the Excel file Ch06Ex02_E8e. Figure AE-5 shows an Access table that has costs corresponding to the requirements in Figure AE-4. You can download this database in the Access file Ch06Ex02_E8e. a. Import the spreadsheet data into the Access database.

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

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(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 have to 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 have to 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)

Chapter 6: File Compression and Encryption 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.

No specific answer; a task to be performed b. Click on Download and install the latest version of 7-Zip for your operating system. (There are 7-Zip versions for Windows, macOS, Linux, BSD, and Unix.)

No specific answer; a task to be performed c. Go to your Downloads folder. (You can go to any folder that contains large files.)

No specific answer; a task to be performed d. Right-click on a large file. .

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No specific answer; a task to be performed e. Click 7-Zip and Add to archive.

No specific answer; a task to be performed f. Rename the file YourName.7z. (Replace “YourName” with your first and last names. If your name was John Doe, the file would be named JohnDoe.7z.)

No specific answer; a task to be performed g. In the Encryption section, enter a password—twice. (Choose a simple password you can remember.)

No specific answer; a task to be performed h. Take a screenshot and paste it into your document. (You can take a screenshot by pressing Alt + Print Screen.)

No specific answer; a task to be performed i. Click OK. (Notice that your original file remains unchanged.)

No specific answer; a task to be performed j. After your new YourName.7z file is compressed, right-click it and select 7-Zip and Extract to “YourName\”.

No specific answer; a task to be performed k. Enter the password you set, and click OK. (Your file should start extracting.)

No specific answer; a task to be performed l. 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 vendors actual security procedures. Taking this action provides an additional layer of security for sensitive documents. m. 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)

Part 3

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Chapter 7: Production Planning with Excel AE7-1. 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 Ch07Ex01_E8e, which you can download from the text’s Web site. 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.

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: 1, Learning Outcome: Discuss the role of information systems in supply chain management and performance, AACSB: Information Technology) c. On each of the worksheets, use the data from the prior four quarters to compute the discrepancy between the actual sales and the sales projections. This

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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: 1, Learning Outcome: Discuss the role of information systems in supply chain management and performance, 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 worksheets. (LO: 1, Learning Outcome: Discuss the role of information systems in supply chain management and performance, 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: 1, Learning Outcome: Discuss the role of information systems in supply chain management and performance, AACSB: 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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(LO: 1, Learning Outcome: Discuss the role of information systems in supply chain management and performance, AACSB: Information Technology)

Chapter 8: Tracking Social Media AE8-1. 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, AACSB: 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 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.

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(LO: 2, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Information Technology) c. Fill your database with the sample data in the Word document Ch08Ex01_E8e.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, AACSB: Information Technology)

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d. Create a report that is suitable for the CEO’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)

Chapter 9: Third Party Cookies AE9-1. Open your favorite browser. Go to the options that govern cookies. (On Microsoft Edge, go to Tools [the little wheel icon in the upper right-hand corner] / Internet Options / Privacy / Advanced.) If you use another browser and don’t know where to go for the privacy settings, search the Internet for your browser name plus the words disable third-party cookies. Follow the instructions to find the options page. a. Disable third-party cookies. Close your browser. Reopen your browser and visit at least five Web sites.

No specific answer given; a task for the student to perform. (LO: 5, Learning Outcome: Discuss the ethical and social issues raised by the use of information systems, AACSB: Information Technology)

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b. Enable third-party cookies. Close your browser. Reopen your browser and visit the same five Web sites.

No specific answer given; a task for the student to perform. (LO: 5, Learning Outcome: Discuss the ethical and social issues raised by the use of information systems, AACSB: Information Technology) c. Do you notice any difference in the way the sites you access or your browser behave between parts a and b? Describe any differences.

As various pages are visited with the third party cookies enabled, you begin to see more ads that are tailored to sites you have visited previously. (LO: 5, Learning Outcome: Discuss the ethical and social issues raised by the use of information systems, AACSB: Information Technology) d. Go to the same privacy settings location in which you disabled third-party cookies, and select prompt rather than block third-party cookies. Go to any site you normally visit, or www.msn.com if you can’t think of any others. Describe what happens.

On a visit to www.msn.com, I received six messages asking whether to accept or block a tracking cookie before the page was entirely loaded. (LO: 5, Learning Outcome: Discuss the ethical and social issues raised by the use of information systems, AACSB: Information Technology) e. Change your browser’s privacy settings back to whatever level of third-party cookie blocking you had when you started this exercise.

No specific answer given; a task for the student to perform. (LO: 5, Learning Outcome: Discuss the ethical and social issues raised by the use of information systems, AACSB: Information Technology) f. Summarize your experiences in this exercise.

Students may be surprised at the number of requests for tracking cookies they receive when the setting is changed to “prompt.” Most people will not tolerate that many disruptions when browsing. Students may prefer the “customization’ they receive from the cookies so they may prefer to accept them. (LO: 5, Learning Outcome: Discuss the ethical and social issues raised by the use of information systems, AACSB: Information Technology)

Chapter Extension 10: Evaluate Vendors with Access CE10-1. Assume you have been given the task of compiling evaluations of vendors made by your company’s purchasing agents. 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.

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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.

b. Create appropriate relationships.

c. Go to this text’s Web site and import the data in the Excel file CE10Ex01_E8e.

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Note that data for VENDOR, PURCHASER, and RATING are stored in three separate worksheets.

d. Create a query that shows the names of all vendors and their average scores.

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e. Create a query that shows the names of all employees and their average scores.

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

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.

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

Chapter Extension 12: Make Your Own Market-Basket Analysis with Access CE12-1. It is surprisingly easy to create a market-basket report using table data in Access. To do so, however, you will need to enter SQL expressions into the Access query builder. Here, you can just copy SQL statements to type them in. If you take a database class, you will learn how to code SQL statements like those you will use here.

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a. Create an Access database with a table named Order_Data having columns OrderNumber, ItemName, and Quantity, with data types Number (LongInteger), Short Text (50), and Number (LongInteger), respectively. Define the key as the composite (OrderNumber, ItemName). (You can do this in the table designer by highlighting both columns and clicking the Primary Key icon.)

b. Import the data from the Excel file CE12Ex01_E8e into the Order_Data table.

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c. Now, to perform the market basket analysis, you will need to enter several SQL statements into Access. To do so, click the CREATE/QueryDesign. Click Close when the Show Table dialog box appears. Right-click in the gray section above the grid in the Select Query window. Select SQL View. Enter the following expression exactly as it appears here: SELECT T1.ItemName as FirstItem,

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T2.ItemName as SecondItem Order_Data T1, Order_Data T2 T1.OrderNumber = T2.OrderNumber T1.ItemName <> T2.ItemName;

Click the red exclamation point in the toolbar to run the query. Correct any typing mistakes and, once it works, save the query using the name TwoItemBasket.

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d. Now enter a second SQL statement. Again, click CREATE/QueryDesign. Click Close when the Show Table dialog box appears. Right-click in the gray section above the grid in the Select Query window. Select SQL View. Enter the following expression exactly as it appears here: SELECT

TwoItemBasket.FirstItem, TwoItemBasket.SecondItem, Count(*) AS SupportCount FROM TwoItemBasket GROUP BY TwoItemBasket.FirstItem, TwoItemBasket.SecondItem Correct any typing mistakes and, once it works, save the query using the name SupportCount.

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e. Examine the results of the second query, and verify that the two query statements have correctly calculated the number of times that two items have appeared together. Explain further calculations you need to make to compute support.

To compute support, we need to determine the number of times that two items are purchased together out of all the purchase transactions. This will produce the probability of those two items being purchased together. (LO: 4, Learning Outcome: Compare and contrast different business intelligence systems, AACSB: Information Technology) f. Explain the calculations you need to make to compute lift. Although you can make those calculations using SQL, you need more SQL knowledge to do it and we will skip that here.

Lift is calculated by dividing the probability of Item A being purchased given that Item B is purchased (confidence) by the probability that Item A is purchased.

Confidence is computed by dividing the number of times Items A and B were purchased together by the number of times Item A was purchased. (LO: 4, Learning Outcome: Compare and contrast different business intelligence systems, AACSB: Information Technology) g. Explain, in your own words, what the query in part c seems to be doing. What does the query in part d seem to be doing? Again, you will need to take a

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database class to learn how to code such expressions, but this exercise should give you a sense of the kinds of calculations that are possible with SQL. The query in part c is creating a table of records that consist of every pairing of items in an order. So, for example, order 100 in our data consisted of a cup and saucer, so that produces two records in the market basket—cup and saucer and saucer and cup. The second query adds a count column for each record in the market-basket table. (LO: 4, Learning Outcome: Compare and contrast different business intelligence systems, AACSB: Information Technology)

Chapter Extension 13: Reporting with Access CE13-1. In this exercise, you’ll have an opportunity to practice creating reports in Access using the data shown in Figure CE13-1. a. Open Access, create a new database, and import the data in the text file CE13Ex01_E8e. Notice that the data includes an identifier; the four fields in Figure CE13-1; and a sixth field, called Quarter that represents the calendar quarter in which the sale was made.

b. Use Access to create a report that sorts the data and presents it as shown in Figure CE13-2, except exclude sales less than $75. To do so, first create a query that has this data and then create a report based on that query. Format your report professionally.

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c. Modify your report in part b to include subtotals for each customer.

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d. Create a query to present the data as shown in Figure CE13-3. Produce a professionally formatted report of this data. .

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e. Create a query to compute the average of Amount for each Quarter.

f. Create a second table named QUARTER_DATA with fields Quarter_Number and Average_Amount. Place four rows in this table, one for each quarter and average amount.

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g. Create a report that lists the sale data in ascending order of CustomerName. In your report, include the date and amount of each sale, as well as the amount of the sale divided by the average amount of a sale for that quarter.

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h. Explain how all of the work you have done has been as a result of the simple operations of filtering, sorting, grouping, and calculating.

Part b involves selecting just the sales records with Amount >= $75 and sorting them. Part c involves adding a group to the report based on CustomerName and computing a group total. Part d involves a query to compute a count of each customer’s sales and a sum of each customer’s total purchases. Part e involves a query that computes an average for each quarter’s sales. Part f generates a new table from the part e query (use a make table query). Part g involves a query with a calculated field. (LO: 1, Learning Outcome: Compare and contrast different business intelligence systems, AACSB: Information Technology)

Chapter Extension 13: OLAP and Pivot with Excel CE13-2. OLAP cubes are very similar to Microsoft Excel pivot tables. For this exercise, assume that in your organization purchasing agents rate vendors, similar to the situation in Application Exercise CE10-1. a. Open the Excel file CE13Ex02_E8e, which you can find on the text’s Web site.

The spreadsheet has the following column headings: VendorName, EmployeeName, Date, Year, and Rating.

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

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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.

(LO: 4, Learning Outcome: Compare and contrast different business intelligence systems, AACSB: Information Technology)

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Part 4 Chapter 10: Enabling Secure Browsing AE10-1. 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.

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 you 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.

(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, and 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 right-hand 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 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? b. Some Web sites pay for their operations through ad revenue. Could Adblock Plus put them out of business? c. Can you make exceptions (i.e., not block content) for specific Web sites?

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

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Chapter 10: Safe Web Browsing 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 WOT community who have contributed their evaluations of that Web site.

After installing WOT, you will notice a slight addition to the search results from major search engines (i.e., 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.

No specific answer—a task to be performed. b. Search for “WOT”.

No specific answer—a task to be performed. c. Click Install (WOT) and Restart now. (You should see a small flag in the navigation bar.)

No specific answer—a task to be performed. d. Browse to www.google.com and search for your full name.

No specific answer—a task to be performed. 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.)

No specific answer—a task to be performed. f. Click on the WOT icon for one of the search results. (This will show you the WOT scorecard for that specific Web site.)

No specific answer—a task to be performed. g. Using Google.com, search for warez keygen without quotes. (You should get a few Web sites with red circles, meaning they have a poor reputation.)

No specific answer—a task to be performed. h. Click on the WOT icon for one of the Web site’s WOT scorecard.

No specific answer—a task to be performed. i. Take a screenshot.

No specific answer—a task to be performed.

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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. k. Describe how you can evaluate Web sites using WOT. The colored icon indicates the site’s reputation based on the user community’s ratings. 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, AACSB: Information Technology)

Chapter 11: Keeping Track of Requests 11-1. Tracking requests is a common need for both systems development projects and also for IS departments and, indeed, with any service department. With accurate request tracking, management can get involved when requests are repeatedly made for the same problem or when too many problems are being reported for the same facility or piece of equipment or too many problems are being reported by the same user.

• In this exercise, you will create such a system for an IS department that wants to track system problems and responses.

• Suppose an organization keeps the following data about requests: Ticket# Date_Submitted Date_Opened Date_Closed Type (new or repeat) Reporting_Employee_Name Reporting_Employee_Division Technician_Name Problem_System Problem_Description • •

You can find sample ticket data in the Excel file Ch11Ex01_E8e on this text’s Web site.

However, managers often need more information. Among their needs are information that will help you learn who are your best- and worst-performing technicians, how different systems compare in terms of number of problems reported and the time required to fix those problems, how different divisions

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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 listed above from the data in the Excel file Ch11Ex01_E8e. 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.

Similar reports could be created grouped by problem system, by problem description, and problem type. (LO: 1, Learning Outcome: Discuss best practices for selecting,

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evaluating, and managing information systems projects, 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 Susan 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 that those assigned, say, to Rob Owens? (LO: 1, Learning Outcome: Discuss best practices for selecting, evaluating, and managing information systems projects, 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: Discuss best practices for selecting, evaluating, and managing information systems projects, 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: Discuss best practices for selecting, evaluating, and managing information systems projects, AACSB: Information Technology)

Part 4 Chapter 12: Planning Project Costs With Excel AE12-1. Suppose you are given the task of comparing labor costs of meetings for systems development projects to budgets. Download the Word file Ch12Ex01_E8e.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.

Assume your company uses the traditional SDLC and each 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.

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(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 Ch12Ex01_E8e.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)

Chapter 12: Simple Application Development AE12-2. In this project you are going to use Microsoft Touch Develop to create a very simple app called Jetpack Jumper. Microsoft Touch Develop allows you to create apps by simply touching on the computer code and making simple modifications. For this project, you are going to follow an automated tutorial that will guide you through the entire process. You don’t have to have any prior coding (programming) experience. Automated videos will introduce you to a few basics principles of coding and explain how your changes will affect your app.

The instructions below follow the tutorial exactly, except for the last step. The last step asks you to take a screenshot of your app. You will then send this screenshot to your instructor verifying that you successfully completed this project.

(1) Open a Web browser (e.g., Google Chrome or Mozilla Firefox) and go to www.touchdevelop.com.

(2) Click on the sign-in link in the upper right-hand corner.

(3) Sign in using your Microsoft, Facebook, Google, or Yahoo! account credentials.

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AE-118

(4) Click the Launch Touch Develop button on the Touch Develop main page.

(5) Click on the tutorial labeled Coding Jetpack Jumper.

(6) After watching the short video, click the button labeled “let’s get started!”

(7) After watching the next short video, click the button labeled “let’s do it!”

(8) Follow the instructions in the blue box and click on the button labeled “run main.”

(9) Click the back arrow to continue coding.

Note: In the remaining tutorial screens, you are going to follow the instructions shown in the blue boxes. You can click on the app with your mouse or tap on it if you are using a device with a touch screen. Once you have completed the tutorial, continue to step 11 below.

(10) Finish the remaining steps in the Jetpack Jumper tutorial.

(11) After finishing the tutorial, take a screenshot of your new app and paste it into a document. (You will send this document to your instructor. You can take a screenshot by selecting the window and then pressing Alt+Print Screen. Then you can paste the screenshot into your document.) a. Why are loops useful? b. Why use a variable to store a value? c. What would be the benefit of making a game easier for users to play? Could it be too easy or too hard?

Since this is an experiential exercise, no specific solution is provided. Student answers will vary. (LO: 7, Learning Outcome: Compare and contrast different methods for developing information systems, AACSB: Information Technology)

Chapter Extension 19: Process Modeling with Visio CE19-1. In this exercise, you will use Visio to create process diagrams in BPMN notation. a. Download the Visio File CE19Ex01_E8e from this text’s support site. Open the file and familiarize yourself with this diagram. Match the diagram to the correct figure in CE18-1.

No specific answer—a task to be performed. (LO: 3, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Information Technology) b. Notice that Visio includes the BPMN shapes. Go to the Shape organizer to see other types of flowchart shapes that Visio supports.

No specific answer—a task to be performed. (LO: 3, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Information Technology) c. Create a new Visio diagram. Add BPMN shapes that you may want to use.

.

Kroenke/Boyle - Experiencing MIS 8th Ed - Instructor’s Manual

AE-119

No specific answer—a task to be performed. (LO: 3, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Information Technology) d. Model the customer process Respond to Quotation. Make sure your process accepts the inputs shown in CE19Ex01_E8e and produces the outputs shown in that figure. Create your process so that your company checks prices and 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, AACSB: Information Technology) e. Show your work by saving your document as a PDF file.

No specific answer—a task to be performed.

(LO: 3, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Information Technology)

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Kroenke/Boyle - Experiencing MIS 8th Ed - Instructor’s Manual

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AE-120

Kroenke/Boyle - Experiencing MIS 8th Ed - Instructor’s Manual

CE-1

.. .. .. .. .. ..

CE1-1

Collaboration Information Systems for Decision Making, Problem Solving, and Project Management

LEARNING OBJECTIVES 1.

2.

3.

4.

Explain the two key characteristics of collaboration.

Describe three criteria for successful collaboration.

Describe the four primary purposes of collaboration.

Discuss the components and functions of a collaboration information system.

CHAPTER OUTLINE ▪

▪

▪

▪

What are the two key characteristics of collaboration?  Importance of constructive criticism  Guidelines for giving and receiving constructive criticism  Warning!

What are three criteria for successful collaboration?  Successful outcome  Growth in team capability  Meaningful and satisfying experience What are the four primary purposes of collaboration?  Becoming informed  Making decisions  Solving problems  Managing projects What are the components and functions of a collaboration information system?  The five collaboration system components  Primary functions: communication and content sharing

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.

Copyright © 2109, 2017, 2016: Pearson Education, Inc.

Kroenke/Boyle - Experiencing MIS 8th Ed - Instructor’s Manual

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

Copyright © 2109, 2017, 2016: Pearson Education, Inc.

CE1-2

Kroenke/Boyle - Experiencing MIS 8th Ed - Instructor’s Manual

CE-2

.. .. .. .. .. ..

CE2-1

Collaborative Information Systems for Student Projects

LEARNING OBJECTIVES 1.

2.

3.

4.

5.

Explain the IS requirements for student project collaborations.

Discuss how to use collaboration tools to improve team communication.

Describe how to use collaboration tools to share content.

Explain how to use collaboration tools to manage tasks.

Determine which collaboration information system is right for your team.

CHAPTER OUTLINE ▪

▪ ▪

▪ ▪

What are the IS requirements for student project collaborations?  Required features  Nice-to-have features  Collaboration tool characteristics How can you use collaboration tools to improve team communication?

How can you use collaboration tools to share content?  Shared content with no control  Shared content with version management on Google Drive  Shared content with version control How can you use collaboration tools to manage tasks?  Sharing a task list on Google Drive  Sharing a task list using Microsoft SharePoint Which collaboration information system is right for your team?  The minimal collaboration tool set  The good collaboration tool set  The comprehensive collaboration tool set  Choosing the set for your team  Don’t forget procedures and people!

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.

Copyright © 2019, 2017, 2016: Pearson Education, Inc.

Kroenke/Boyle - Experiencing MIS 8th Ed - Instructor’s Manual

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

Copyright © 2019, 2017, 2016: Pearson Education, Inc.

CE2-2

Kroenke/Boyle - Experiencing MIS 8th Ed - Instructor’s Manual

CE-3

.. .. .. .. .. ..

CE3-1

Mobile Systems

LEARNING OBJECTIVES 1.

2.

3.

4.

5.

Describe what is meant by mobile systems.

Explain why mobile systems are important.

Compare native and web-based mobile applications.

Explain what characterizes quality mobile user experiences.

Describe the challenges of personal mobile devices at work.

CHAPTER OUTLINE ▪ ▪

▪

▪

▪

What are mobile systems?

Why are mobile systems important?  Hardware  Software  Data  Procedures  People How do native and web-based mobile applications compare?  Developing native mobile applications  Developing web mobile applications  Which is better?

What characterizes quality mobile user experiences?  Feature content  Use context-sensitive chrome  Provide animation and lively behavior  Design to scale and share  Use the cloud 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

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.

Copyright © 2019, 2017, 2016: Pearson Education, Inc.

Kroenke/Boyle - Experiencing MIS 8th Ed - Instructor’s Manual

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

Copyright © 2019, 2017, 2016: Pearson Education, Inc.

CE3-2

Kroenke/Boyle - Experiencing MIS 8th Ed - Instructor’s Manual

CE-4

CE4-1

.. .. .. Introduction to Microsoft .. .. .. Excel 2016 .

LEARNING OBJECTIVES 1.

2.

3.

4.

5.

6.

7.

Describe what a spreadsheet is.

Explain how to get started with Excel.

Describe how to enter data.

Explain how to insert and delete rows and columns and change their size.

Explain how to format data.

Explain how to create a (simple) formula.

Explain how to print results.

CHAPTER OUTLINE ▪ ▪ ▪ ▪ ▪ ▪ ▪

What is a spreadsheet?

How do you get started with Excel?

How can you enter data?  Key in the data  Let Excel add the data using a pattern How can you insert and delete rows and columns and change their size?

How can you format data?

How can you create a (simple) formula?

How can you print results?

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.

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

Copyright © 2019, 2017, 2016: Pearson Education, Inc.

Kroenke/Boyle - Experiencing MIS 8th Ed - Instructor’s Manual

CE-5

.. .. .. .. .. ..

CE5-1

Database Design

LEARNING OBJECTIVES 1.

2.

3.

4.

5.

6.

Who will volunteer?

Explain how database application systems are developed.

Describe the components of the entity-relationship data model.

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

Describe the users’ role.

Who will volunteer? (continued)

CHAPTER OUTLINE ▪ ▪ ▪ ▪ ▪ ▪

Who will volunteer?

How are database application systems developed?

What are the components of the entity-relationship data model?  Entities  Relationships How is a data model transformed into a database design?  Normalization  Representing relationships What is the users’ role?

Who will volunteer? (continued)

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.

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

Copyright © 2019, 2017, 2016: Pearson Education, Inc.

Kroenke/Boyle - Experiencing MIS 8th Ed - Instructor’s Manual

CE-6

.. .. .. .. .. ..

CE6-1

Using Microsoft Access 2016

LEARNING OBJECTIVES 1.

2.

3.

4.

5.

Explain how to create tables.

Describe how to create relationships.

Explain how to create a data entry form.

Describe how to create queries using the query design tool.

Explain how to create a report.

CHAPTER OUTLINE ▪ ▪ ▪ ▪ ▪

How do you create tables?  Starting Access  Creating tables How do you create relationships?

How do you create a data entry form?

How do you create queries using the query design tool?

How do you create a report?

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.

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

Copyright © 2019, 2017, 2016: Pearson Education, Inc.

Kroenke/Boyle - Experiencing MIS 8th Ed - Instructor’s Manual

CE-7

.. .. .. .. .. ..

CE7-1

Using Excel and Access Together

LEARNING OBJECTIVES 1.

2.

3.

4.

5.

6.

7.

Describe why Excel and Access are used together.

Explain import and export.

Describe how to create charts with Excel.

Describe how to create group totals in Access.

Explain how to use Excel to graph Access data.

Explain how to use Access to report Excel data.

Describe how to combine Excel and Access to analyze data.

CHAPTER OUTLINE ▪ ▪ ▪ ▪ ▪ ▪ ▪

Why use Excel and Access together?

What is import/export?  Import/export of text data  Import/export of Excel and Access data How can you create charts with Excel?  Creating a pie chart  Creating a column chart How can you create group totals in Access?

How can you use Excel to graph Access data?

How can you use Access to report Excel data?

How can you combine Excel and Access to analyze data?

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.

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

Copyright © 2019, 2017, 2016: Pearson Education, Inc.

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CE 8

.. .. .. .. .. .. .. ..

CE8-1

Network and Cloud Technology

LEARNING OBJECTIVES 1.

2.

3.

4.

Describe what is meant by a computer network.

List and describe the components of a LAN. Describe how the Internet works.

Describe how web servers support the cloud.

CHAPTER OUTLINE ▪ ▪ ▪

▪

What is a computer network?

What are the components of a LAN?  Connecting your LAN to the Internet 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 name)  Step 3: Look up address (IP address)  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) How do web servers support the cloud?  Three-tier architecture  Watch the three tiers in action!  Service-oriented architecture (SOA)  Internet protocols  TCP/IP protocol architecture

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.

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

Copyright © 2019, 2017, 2016: Pearson Education, Inc.

Kroenke/Boyle - Experiencing MIS 8th Ed - Instructor’s Manual

CE-9

.. .. .. .. .. ..

CE9-1

Enterprise Resource Planning (ERP) Systems

LEARNING OBJECTIVES 1.

2.

3.

4.

5.

Describe the purpose of ERP systems.

Describe the elements of an ERP solution.

Explain how ERP systems are implemented and upgraded.

Describe the types of organizations that use ERP. Explain how the major ERP vendors compare.

CHAPTER OUTLINE ▪ ▪

▪ ▪

▪

What is the purpose of ERP systems?

What are the elements of an ERP solution?  Hardware  Software: ERP application programs  Data: ERP databases  Procedures: Business process procedures  People: Training and consulting How are ERP systems implemented and upgraded?

What types of organizations use ERP?  ERP by industry type  ERP by organization size  International ERP How do the major ERP vendors compare?  ERP market leaders  ERP products  ERP in the future

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.

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

Copyright © 2019, 2017, 2016: Pearson Education, Inc.

Kroenke/Boyle - Experiencing MIS 8th Ed - Instructor’s Manual

CE10-1

.. .. .. .. .. ..

CE-10 Supply Chain Management LEARNING OBJECTIVES 1.

2.

3.

4.

5.

6.

Describe typical inter-enterprise processes.

Explain what a supply chain is.

Explain what factors affect supply chain performance.

Describe how supply chain profitability differs from organizational profitability.

Explain the bullwhip effect.

Explain how information systems affect supply chain performance.

CHAPTER OUTLINE ▪ ▪ ▪ ▪ ▪ ▪

What are typical inter-enterprise processes?

What is a supply chain?

What factors affect supply chain performance?

How does supply chain profitability differ from organizational profitability?

What is the bullwhip effect?

How do information systems affect supply chain performance?

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.

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

Copyright © 2019, 2017, 2016: Pearson Education, Inc.

Kroenke/Boyle - Experiencing MIS 8th Ed - Instructor’s Manual

CE-11

.. .. .. .. .. ..

CE11-1

Enterprise Social Networks and Knowledge Management

LEARNING OBJECTIVES 1.

2.

3.

4.

5.

Describe how organizations develop an effective SMIS. Explain what an enterprise social network (ESN) is.

Explain the benefits of knowledge management.

Explain what an expert system is.

Explain the meaning of content management systems.

CHAPTER OUTLINE ▪

▪

▪ ▪ ▪

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 What is an enterprise social network (ESN)? ♦ Enterprise 2.0 ♦ Changing communication ♦ Deploying successful enterprise social networks What are the benefits of knowledge management?

What are expert systems?

What are content management systems? ♦ What are the challenges of content management? ♦ What are content management application alternatives?

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.

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

Copyright © 2019, 2017, 2016: Pearson Education, Inc.

Kroenke/Boyle - Experiencing MIS 8th Ed - Instructor’s Manual

CE12-1

.. .. .. .. .. ..

CE-12 Database Marketing LEARNING OBJECTIVES 1.

2.

3.

4.

Describe what is meant by a database marketing opportunity.

Explain how RFM analysis classifies customers.

Explain how market-basket analysis identifies cross-selling opportunities.

Describe how decision trees identify market segments.

CHAPTER OUTLINE ▪ ▪ ▪ ▪

What is a database marketing opportunity?

How does RFM analysis classify customers?

How does market-basket analysis identify cross-selling opportunities?

How do decision trees identify market segments?  A decision tree for student performance  A decision tree for loan evaluation

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.

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

Copyright © 2019, 2017, 2016: Pearson Education, Inc.

Kroenke/Boyle - Experiencing MIS 8th Ed - Instructor’s Manual

CE13-1

CE-13

.. .. .. .. .. ..

Reporting Systems and OLAP

LEARNING OBJECTIVES 1.

2.

3.

4.

Explain how reporting systems enable people to create information.

Describe the components and characteristics of reporting systems.

Explain how reports are authored, managed, and delivered.

Describe how OLAP reports are dynamic.

CHAPTER OUTLINE ▪ ▪

▪

▪

How do reporting systems enable people to create information?

What are the components and characteristics of reporting systems?  Report type  Report media  Report mode How are reports authored, managed, and delivered?  Report authoring  Report management  Report delivery How are OLAP reports dynamic?

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.

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

Copyright © 2019, 2017, 2016: Pearson Education, Inc.

Kroenke/Boyle - Experiencing MIS 8th Ed - Instructor’s Manual

CE14-1

CE-14

.. .. .. .. .. ..

Artificial Intelligence and Automation

LEARNING OBJECTIVES 1.

2.

3.

4.

5.

Explain why artificial intelligence is important.

Discuss how AI and automation affect organizations.

Explain how AI will affect me.

Discuss the goal of AI. Describe how AI works.

CHAPTER OUTLINE ▪ ▪ ▪

▪ ▪

Why is artificial intelligence important?  Advances in AI? 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 What is the goal of AI?  Integrated enabler of other technology How does AI work?  Machine learning  IBM’s Watson

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.

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

Copyright © 2019, 2017, 2016: Pearson Education, Inc.

Kroenke/Boyle - Experiencing MIS 8th Ed - Instructor’s Manual

CE15-1

.. .. .. .. .. ..

CE-15 Data Breaches LEARNING OBJECTIVES 1.

2.

3.

4.

5.

Explain what is meant by a data breach.

Discuss how data breaches happen.

Explain how organizations should respond to a data breach.

Discuss the legal consequences of a data breach.

Describe how data breaches can be prevented.

CHAPTER OUTLINE ▪ ▪

▪

▪ ▪

What is a data breach?  Why do data breaches happen?

How do data breaches happen?  Hitting Target  How did they do it?  The damage How should organizations respond to data breaches?  Respond quickly  Plan for a data breach  Be honest about the breach What are the legal consequences of a data breach?

How can data breaches be prevented?

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.

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

Copyright © 2019, 2017, 2016: Pearson Education, Inc.

Kroenke/Boyle - Experiencing MIS 8h Ed - Instructor’s Manual

CE16-1

.. .. .. .. .. ..

CE-16 International MIS LEARNING OBJECTIVES 1.

2.

3.

4.

5.

Explain how the global economy affects organizations and processes.

Describe the characteristics of international IS components.

Describe how inter-enterprise IS facilitate globalization.

Describe the security challenges of international IS. Explain the challenges of international IS management.

CHAPTER OUTLINE ▪

▪

▪

▪

▪

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?

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?  What are the challenges of international enterprise applications?

How do inter-enterprise IS facilitate globalization?  How do global information systems affect supply chain profitability?  What is the economic effect of global manufacturing?  How does social media affect international business?

What are the security challenges of international IS?  Legal environment  Physical security  Cultural norms What are the challenges of international IS management?  Why is international information systems development more challenging?  What are the challenges of international project management?  What are the challenges of international IS management?

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.

Copyright © 2019, 2017, 2016: Pearson Education, Inc.

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CE16-2 For an example illustrating the concepts found in this chapter, view the videos in mymislab.com.

Copyright © 2019, 2017, 2016: Pearson Education, Inc.

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CE17-1

CE-17

.. .. .. .. .. ..

Systems Development Project Management

Commented [nl1]: Check page number – lower than earlier chapters Commented [RR2R1]: Ok as is

LEARNING OBJECTIVES 1.

2.

3.

4.

5.

6.

7.

Explain why formalized project management is necessary.

Describe the trade-offs in requirements, cost, and time.

Describe the dimensions of project management.

Describe how a work breakdown structure drives project management.

Explain the biggest challenge for planning a systems development project.

Describe the biggest challenges for managing a systems development project.

Explain the single most important task for users on a systems development project.

CHAPTER OUTLINE ▪ ▪ ▪ ▪ ▪ ▪ ▪

Why is formalized project management necessary?

What are the trade-offs in requirements, cost, and time?

What are the dimensions of project management?

How does a work breakdown structure drive project management?

What is the biggest challenge for planning a systems development project?

What are the biggest challenges for managing a systems development project?

What is the single most important task for users on a systems development project?

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.

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

Commented [nl3]: Verify link is named correctly Commented [RR4R3]: ok

Copyright © 2019, 2017, 2016: Pearson Education, Inc.

Kroenke/Boyle - Experiencing MIS 8th Ed - Instructor’s Manual

CE18-1

.. .. .. .. .. ..

CE-18 Agile Development LEARNING OBJECTIVES 1.

2.

3.

4.

Explain why the SDLC is losing credibility.

Describe the principles of agile development methodologies.

Explain the scrum process.

Describe how requirements drive the scrum process.

CHAPTER OUTLINE ▪ ▪ ▪

▪

Why is the SDLC losing credibility?

What are the principles of agile development methodologies?

What is the scrum process?  Scrum essentials  When are we done?  Key roles How do requirements drive the scrum process?  Creating requirements tasks  Scheduling tasks  Committing to finish tasks  Hocus-pocus?

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.

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

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Business Process Management

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LEARNING OBJECTIVES 1.

2.

3.

4.

5.

Explain why organizations need to manage business processes.

List and describe the stages of business process management (BPM).

Explain how business processes and information systems relate.

Explain which come first, business processes or information systems.

Describe how BPM is practiced in the real world.

CHAPTER OUTLINE ▪ ▪ ▪ ▪

▪

Why do organizations need to manage business processes?  A sample ordering business process  Why does this process need management?

What are the stages of business process management (BPM)?

How do business processes and information systems relate?

Which come first: business processes or information systems?  Business processes first  Information system first  Another factor: off-the-shelf software  And the answer is…

How is BPM practiced in the real world?  Defining the process problem  Designing the new process  Create process components  Implement new processes

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.

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

Commented [nl3]: Verify the link is named correctly Commented [RR4R3]: ok

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The Importance of MIS

LEARNING OBJECTIVES 1.

2.

3.

4.

5.

Explain why Introduction to MIS is the most important class in the business school.

Explain how MIS will affect you.

Discuss why MIS-related jobs are in high demand.

Define “MIS.” Describe your role in IS security.

CHAPTER OUTLINE ▪

▪ ▪ ▪

▪ ▪

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 MIS help you learn nonroutine skills?

Why are MIS-related jobs in high demand?  What is the bottom line?

What is MIS?  Components of an information system  Management and use of information systems  Achieving strategies What is your role in IS security?  Strong passwords  Password etiquette How does the knowledge in this chapter help you?

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

Student answers will vary. Several important innovations that may be mentioned include the development of the PC, wireless networking technologies, development of smart mobile devices, the cellular communication system, satellite communication systems.

2. Think about your daily use of phones, tablets, and traditional desktop/laptop computers. How many searches do you perform each 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 that search engine?

Student answers will vary, depending on each individual’s routines regarding search.

For some context, studies show that over 6.5 billion searches are conducted using Internet search engines each day (globally). As of April 2017, 77% of those searches were conducted using Google. Notably, that percentage is up 10% from the previous year. (See http://www.smartinsights.com/search-engine-marketing/search-enginestatistics/ for up to date information).

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

Students are likely to discover unexpected projects in a wide array of areas. If necessary, have your students look at https://x.company to learn more about the Alphabet company that is termed a “moonshot” factory: tackling huge problems with radical solutions and breakthrough technologies.

4. What technological innovation do you think will drive the next great era in humanity?

What do you think the defining elements of that era will be?

Student responses will vary. This question should generate some interesting discussion. As a starting point, try focusing the discussion on the area of artificial intelligence and machine learning using the self-driving car context.

COLLABORATION EXERCISE 1 Before you start this exercise, read Chapter Extensions 1 and 2, which describe collaboration techniques as well as tools for managing collaboration tasks. In particular, consider using Google Drive, Dropbox, Microsoft OneDrive, Microsoft SharePoint, or some other collaboration tool.

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Collaborate with a group of fellow students to answer the following questions. For this exercise, do not meet face to face. Coordinate all of your work using email and email attachments only. Your answers should reflect the thinking of the entire group, and not just one or two individuals.

1-4.

Abstract reasoning

a. Define abstract reasoning, and explain why it is an important skill for business professionals.

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. (LO: 1, Learning Outcome: Describe the components of an information system (IS), AACSB: Reflective Thinking) b. Explain how a list of items in inventory and their quantity on hand is an abstraction of a physical inventory.

The inventory list and quantity on hand is a representation of the actual items on shelves in the warehouse. (LO: 1, Learning Outcome: Describe the components of an information system (IS), AACSB: Reflective Thinking) c. Give three other examples of abstractions commonly used in business.

Student answers will vary, but some examples include projects plans, budgets, and business process models. (LO: 1, Learning Outcome: Describe the components of an information system (IS), AACSB: Reflective Thinking) d. Explain how Jennifer failed to demonstrate effective abstract reasoning skills.

Jennifer was unable to develop a model to evaluate prospects for 3D printing opportunities. She identified parts that can’t be 3D printed and listed future drone models that don’t have the capacity to carry cameras. (LO: 1, Learning Outcome: Describe the components of an information system (IS), AACSB: Reflective Thinking) e. Can people increase their abstract reasoning skills? If so, how? If not, why not?

Yes, abstract thinking skills can be developed with practice. Working with existing models is a place to start, but creating actual models and examining their usefulness is even more essential to develop these skills. (LO: 1, Learning Outcome: Describe the components of an information system (IS), AACSB: Reflective Thinking) 1-5.

Systems thinking

a. Define systems thinking, and explain why it is an important skill for business professionals.

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Systems thinking involves identifying and modeling the components of a system and connecting the inputs and outputs among those components into a sensible 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 that form a complex situation. (LO: 1, Learning Outcome: Describe the components of an information system (IS), AACSB: Reflective Thinking) b. Explain how you would use systems thinking to define why Moore’s Law caused a farmer to dig up a field of pulp wood trees. Name each of the elements in the system and explain their relationships to each other.

Pulp wood trees are inputs in the production of paper. Moore’s law implies that more and more content will be stored digitally, and there will be less printed material produced. Consequently, the demand for paper will fall. The farmer recognizes that the value of his trees will decline over time as there is less demand for paper, so he decides to use his land to produce a product with a higher projected value. (LO: 1, Learning Outcome: Describe the components of an information system (IS), AACSB: Reflective Thinking) c. Give three other examples of the use of systems thinking with regard to the consequences of Moore’s law.

Student answers will vary. Some examples include Kodak shifting its business away from film cameras and film development to digital cameras and photo printers; Google’s project of scanning and digitizing books; and Amazon and Sony developing electronic reader devices. (LO: 1, Learning Outcome: Describe the components of an information system (IS), AACSB: Reflective Thinking) d. Explain how Jennifer failed to demonstrate effective systems-thinking skills.

Jennifer was unable to understand and model the correct components and relationships between parts that can be 3D printed and drones that can carry cameras. (LO: 1, Learning Outcome: Describe the components of an information system (IS), AACSB: Reflective Thinking) e. Can people improve their systems-thinking skills? If so, how? If not, why not?

Yes, systems thinking skills can be developed with practice. Applying existing models to different situations is a place to start, but creating actual models, critiquing the models, and examining their usefulness is even more essential to developing these skills. (LO: 1, Learning Outcome: Describe the components of an information system (IS), AACSB: Reflective Thinking) 1-6.

Collaboration

a. Define collaboration, and explain why it is an important skill for business professionals.

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. (LO: 1, Learning Outcome: Describe the components of an information system (IS),

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b.

c.

d.

e.

f.

1-7.

1-5

AACSB: Reflective Thinking) Explain how you are using collaboration to answer these questions. Describe what is working with regards to your group’s process and what is not working.

Student answers will vary. It is important that you stress that students should not just divide the work up between the group members and assemble the individual contributions into a whole (a typical student approach to a group project assignment). Good collaboration involves several iterations in which ideas are contributed, reviewed, critiqued, and refined. All members contribute to the development and refinement of ideas. (LO: 1, Learning Outcome: Describe the components of an information system (IS), AACSB: Interpersonal Relations and Teamwork) Is the work product of your team better than what any one of you could have done individually? If not, your collaboration is ineffective. If that is the case, explain why.

Student 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: 1, Learning Outcome: Describe the components of an information system (IS), AACSB: Interpersonal Relations and Teamwork) Does the fact that you cannot meet face to face hamper your ability to collaborate? If so, how?

Student answers will vary. Email is not a very easy way to collaborate due to the time lag involved between messages being sent and eventually being read.

Because there is no central repository of the work product that all members can access, it is difficult to know what the latest version of the work product is and to keep track of changes to the work product. (LO: 1, Learning Outcome: Describe the components of an information system (IS), AACSB: Interpersonal Relations and Teamwork) Explain how Jennifer failed to demonstrate effective collaboration skills.

Jennifer was unwilling to share her ideas and work-in-progress with others because she wanted to wait until she felt she was “done.” She failed to seek out the benefit of having others review her ideas as they were developing and help her improve upon them. (LO: 1, Learning Outcome: Describe the components of an information system (IS), AACSB: Reflective Thinking) Can people increase their collaboration skills? If so, how? If not, why not?

Collaboration skills can be improved with practice. It may be hard for some people to offer up half-formed ideas to others and to subject themselves to criticism, but the benefits will help them overcome this reluctance. (LO: 1, Learning Outcome: Describe the components of an information system (IS), AACSB: Reflective Thinking) Experimentation

a. Define experimentation, and explain why it is an important skill for business professionals.

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c.

d.

e.

1-8.

1-6

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 have to overcome their fear of failure and pursue new approaches rationally. (LO: 1, Learning Outcome: Describe the components of an information system (IS), AACSB: Reflective Thinking) Explain several creative ways you could use experimentation to answer this question.

Students could experiment with different ways of collaborating, other than emailing. For example, the group members could arrange to meet in a chat room and work together on developing their answers by communicating in that forum.

(LO: 1, Learning Outcome: Describe the components of an information system (IS), AACSB: Reflective Thinking) How does the fear of failure influence your willingness to engage in any of the ideas you identified in part b.

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. Unwilling 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: 1, Learning Outcome: Describe the components of an information system (IS), AACSB: Reflective Thinking) Explain how Jennifer failed to demonstrate effective experimentation skills.

Jennifer was unable to share new ideas with other. She was willing to do what she was told, but did not have the confidence to discuss any new ideas she had with others in case the ideas did not work out. (LO: 1, Learning Outcome: Describe the components of an information system (IS), AACSB: Reflective Thinking) Can people increase their willingness to take risks? If so, how? If not, why not?

It is hard for some people to change their innate willingness to take risks. The best way to overcome this is to work with a group that accepts new ideas with enthusiasm and does not ridicule a member for suggesting a new approach. Once some success is gained, it will be easier to take risks in the future. (LO: 1, Learning Outcome: Describe the components of an information system (IS), AACSB: Reflective Thinking) 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 are “strong non-routine cognitive skills.” (LO: 1, Learning Outcome: Describe the components of an information system (IS), AACSB: Reflective Thinking) 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

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skills they are learning (e.g., computer programming, accounting) will not provide them with job security. That is probably not 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: 1, 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 1-4 through 1-7 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: 1, 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 students in 1990 would have answered this differently? 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: 1, Learning Outcome: Describe the components of an information system (IS), AACSB: Reflective Thinking)

CASE STUDY 1 zulily 1-9. Go to zulily.com and register. Identify features of the site that make shopping entertaining to mothers and explain why those features entertain. Explain why this is important to the zulily business model.

Some of the features of the site that are fun and entertaining are a wide array of items that are available for girls, boys, women, and the home; the way that items are organized by theme (an entire section on princesses, for example); the many colorful pictures; the list of new events and ongoing events at the top of the page; the sense of a limited time to purchase items; the ability to look forward to things that will be available tomorrow; the section containing items on their last day of sale; the automatic daily email announcing specials. (LO: 1, Learning Outcome: Describe the effects of e-commerce on the modern business world, AACSB: Analytical Thinking) 1-10. Go to Nordstrom.com and shop for children’s clothes. How does the zulily shopping experience differ from that at Nordstrom? Briefly describe the advantages and disadvantages of each type of experience.

Nordstrom’s site is much different from zulily. Taking the Kids link, there are very few main photos that lead to other sections of the site and many more text links to

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take you to specific sections. The Nordstrom’s site does not offer the sense of new items, limited time offerings, or things that will be available tomorrow, which are features of the zulily site that will keep customers coming back on a daily basis. With Nordstrom’s you can have a more typical shopping experience by selecting the links of interest to you and viewing the items found there. Zulily offers some sense of urgency and excitement that is missing from Nordstrom’s. However, many shoppers may prefer the more straightforward shopping experience found at Nordstrom’s. (LO: 1, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Analytical Thinking) 1-11. If you were buyer for zulily, what data would you like to have about customer purchase habits?

Data of interest to buyers would include: what items sold out and how long did it take to sell out; what colors and sizes sold out most quickly; what items took the longest to sell out; what colors and sizes took the longest to sell out; do customers tend to buy frequently in small quantities in an order or infrequently with larger quantities in an order. (LO: 1, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Analytical Thinking) 1-12. If you were a buyer for zulily, what data would you like to have about past vendor performance?

Data of interest about vendors would primarily focus on the vendors order fulfillment performance — is the vendor providing the right items of acceptable quality in a timely way? (LO: 3, Learning Outcome: Discuss the role of information systems in supply chain management and performance, AACSB: Analytical Thinking) 1-13. In the general course of life, 2-year-old boys become 3-year-old boys, 4-year oldgirls become 5-year-old girls, etc. How can zulily use this not-so-remarkable phenomenon to customize a customer’s shopping experience? What data would you need to do this?

By keeping track of the typical items purchased by a customer, say, good for an infant boy, zulily could offer that customer special promotions geared toward that child as he grows, such as clothing, toys, school items, etc. The order data from that customer would be the source of this information. (LO: 1, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Reflective Thinking) 1-14. As a business professional, it is likely information systems professionals will ask you data questions like those in questions 1-11 to 1-13. What is the best way for you to respond? Verbally in a meeting? With a written document? With a sketch or diagram? How will you know if you have been understood?

Although individuals will vary in terms of their preferred communication style, this is a good place to reinforce with your students how an understanding of information systems will help them regardless of their professional role. The most effective way to communicate these data needs is to show a sketch or diagram of a sample report and be able to discuss in a meeting with the IS staff how you would use the report contents for decision making. The IS staff would have a tangible example of your

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information needs and will then be able to focus on the task of finding and organizing the data needed to produce your report. You will know if you’ve been understood if you receive some prototype reports that include the information you want, so you know the IS staff is on the right track. (LO: 1, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Reflective Thinking)

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

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Business Processes, Information Systems, and Information

LEARNING OBJECTIVES 1.

2.

3.

4.

5.

Explain why the Falcon Security team needs to understand business processes.

How can business process modeling help organizations?

Explain how information systems improve process quality.

Define “information.”

Describe the data characteristics necessary for quality information.

CHAPTER OUTLINE ▪ ▪

▪ ▪ ▪

▪

Why does the Falcon Security team need to understand business processes?

How can business process modeling help organizations?  How Best Bikes works  The existing Best Bikes process  How Best Bikes processes must change to support 3D printing How can information systems improve process quality?  What is process quality?  Using information systems to improve process quality What is information?  Definitions vary  Where is information?

What data characteristics are necessary for quality information?  Accurate  Timely  Relevant  Just barely sufficient  Worth its cost How does the knowledge in this chapter help you?

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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SO WHAT? Augmented Collaboration 1. This feature provides two examples of possible business uses for the HoloLens. Think about the future impact of this innovation by identifying other industries that may benefit from the development of augmented reality technology.

Student answers will vary. There are many types of situations where the work of someone could be guided by a remote expert who was able to view the field of view at the local site and provide expert direction. As an example, insurance companies who are dealing with post-disaster claims could use augmented reality technology to replace the highly-trained on-site insurance adjustment team with local agents who could perform immediate inspections and claims processing with the guidance of experts.

2. What is the difference between the Oculus Rift and the Microsoft HoloLens?

Oculus Rift is a virtual reality headset geared to 3D gaming and new forms of social media. HoloLens is an augmented reality headset, meaning that the real world is visible, but a videoconferencing window is superimposed in the field of view of the user. The remote expert can “see” the local field of view and can also provide visual feedback displayed in the local headset window.

3. How could this type of technology benefit your collaborations as a student? Think about how you interact with tutors and fellow students on group projects and how you seek and receive help from your instructor.

Students who are working on homework problems could communicate with an instructor or tutor and enable the remote expert to see the student’s solution through the HoloLens. The remote expert could point out on the headset interface where the solution is wrong and make suggestions for corrections. When collaborating with fellow students, joint editing of documents might be feasible.

4. Privacy concerns are one of the factors that prompted Google to delay a full release of the Google Glass. What are the security and privacy implications of releasing a product like the HoloLens?

Using the example of the use of HoloLens in the health care industry: health care is a field that has stringent privacy restrictions. Use of HoloLens during a medical procedure would be carefully secured so that no one without authorization has a way to obtain any information about the situation.

5. Currently, virtual reality and augmented reality headsets are primarily being used by developers. But that will change over the coming years. How might these new innovations affect collaboration and business 10 or 20 years from now?

As with any new technology, over the next decades the technological issues and societal issues will be dealt with and will evolve. Use of these augmented reality headsets may become standard practice and widely accepted as a part of our

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collaborative toolkit. Concerns over privacy may be minimized through enhancements to security systems.

COLLABORATION EXERCISE 2 2-4. In Figure 2-9, explain why inventory must be allocated.

Inventory must be allocated to an order during availability checking so that the inventory on hand is not sold to another customer. Reserving the inventory for this order reduces the quantity available to fill other orders. If the order is later rejected because the special terms are not approved, then the inventory must be released and added back to the quantity available to fill orders, so that subsequent orders are not incorrectly rejected for insufficient inventory available. (LO: 2, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Analytical Thinking) 2-5. Using Figure 2-9, explain why credit must be allocated to customers. What is the

business consequence if these allocations are not adjusted when special terms are not approved?

Customers are typically granted a specific credit limit based upon an analysis of the customer’s credit worthiness. When a customer buys more products on credit, the amount of available credit must be reduced by the amount of the purchase. This prevents the customer from purchasing more than his/her credit limit. If the customer order is rejected due to disapproved special terms, the customer’s available credit must be increased by that purchase amount. Otherwise, the customer’s available credit is smaller than it should be, and the customer will be prohibited from utilizing the entire credit line for future purchases. (LO: 2, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Analytical Thinking) 2-6. Recommend a process for adjusting credit for orders for which credit or special

terms are not approved. Indicate which role makes the adjustment and how they receive the data for doing so?

When an order is rejected due to insufficient credit or unapproved special terms, notification of the rejected order should flow to a person who can remove the charge to the customer for the order. In order to maintain separation of duties, this person should be someone other than the person working on the order-approval process.

(LO: 2, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Analytical Thinking) 2-7. Change the process in Figure 2-9 so that allocated inventory is returned when credit

or special terms are not approved. Indicate which role makes the adjustment and how they obtain the data for doing so?

When an order is rejected due to unapproved credit or special terms, notification of the rejected order should flow to a person who can release the reserved inventory for the order. In order to maintain separation of duties, this person should be someone

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other than the person working on the order-approval process. (LO: 2, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Analytical Thinking) 2-8. There are six different sequences for the three approval tasks in Figure 2-9. Name

each and select what your team considers to be the most promising three.

Sequence 1: check credit; check inventory; check special terms (current sequence) Sequence 2: check inventory; check credit; check special terms Sequence 3: check credit; check special terms; check inventory Sequence 4: check special terms; check credit; check inventory Sequence 5: check inventory; check special terms; check credit Sequence 6: check special terms; check inventory; check credit The most promising sequences are 4, 5, and 6. (LO: 2, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Analytical Thinking) 2-9. Evaluate each of the three sequences that you selected in question 2-9. Identify which

sequence you think is best.

Student answers will vary. Here is one logical rationale: Sequence 4 (check special terms; check credit; check inventory) is most promising.

Not every order includes special terms, so many orders will pass immediately to step 2. Checking special terms first does not involve any database updates that must be reversed if the order is later rejected. In addition, if the special terms cannot be met, the order could potentially be renegotiated by the salesperson and customer so terms that can be approved are included.

Making credit check the second step is preferred because this issue pertains only to the customer. If the customer’s credit is insufficient, the salesperson and customer should be notified so that an alternate payment method could be arranged, or the quantities ordered could be reduced.

Checking inventory at the end is preferred because this step reserves inventory for that customer, meaning we no longer can sell that inventory to anyone else. This step has the most significant impact on our business, because by reserving that inventory, we cannot sell it to anyone else. We do not want to risk losing a subsequent sale due to insufficient inventory when the order that is reserving the inventory has at least some likelihood of being rejected. (LO: 2, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Analytical Thinking) State the criteria that you used for making your selections in questions 2-8 and 29.

The criteria that are illustrated are (1) flexibility—by placing the processes that have the highest potential to be negotiated first; and (2) minimizing the potential for losing business by waiting to reserve inventory until the order has passed all the previous

2-10.

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screening steps. (LO: 2, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Analytical Thinking) So far, we haven’t considered the impact of this process on the salesperson. What information do salespeople need to maintain good relationships with their customers?

The salespeople need to know the reason for order rejection and should also be able to work with the customer on issues that are potentially negotiable. If we cannot meet the requested special terms, the salesperson needs to know which term is problematic.

Then perhaps the salesperson can find other terms that are agreeable to the customer.

If the customer does not have a sufficient credit line, the salesperson needs to know the amount of credit deficiency. Then, the salesperson can inform the customer of the problem and potentially work to create an order with different financing. The only issue that really is outside the salesperson’s control is inventory availability. Even then, if we can inform the salesperson of the expected replenishment date, perhaps the customer can be persuaded to wait until we can fill the order. (LO: 2, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Analytical Thinking)

2-11.

Optional extension. Download the Visio diagram version of Figure 2-9 from this book’s Web site, www.pearsonhighered.com/kroenke. Modify the diagram to illustrate the sequence of tasks you chose as best in your answer to question 2-9.

The following diagram illustrates the changes outlined in question 2-9, and also incorporates a new adjustment process to modify the customer’s credit availability if the order is rejected due to insufficient inventory. (LO: 2, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Analytical Thinking)

2-12.

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CASE STUDY 2 Eating Our Own Dog Food In your own words, define dogfooding. Do you think dogfooding is likely to predict product success? Why or why not? When would dogfooding not predict product success?

The term is used to describe an organization that utilizes its own products in its day to day business operations. A company that demonstrates commitment to its own products by using them exclusively should gain useful insight into the products’ actual performance in realistic settings. Assuming those insights are used to improve the product, then it seems likely the product has an increased likelihood of success. If the use of the product is mandated but is done only for appearance (e.g., a car dealer that requires its salespeople to drive only the car brands sold by the dealership), then

2-13.

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dogfooding probably does not predict product success. (LO: 1, Learning Outcome: Explain how IS can enhance systems of collaboration and teamwork, AACSB: Reflective Thinking) Explain how this team uses the shared whiteboard to generate minutes. What are the advantages of this technique?

The whiteboard was used by the meeting participants to list the initial agenda, create new task lists, and indicate task completion. Once the whiteboard contents were saved, there was no forgetting of the topics discussed, completed, or planned (a common occurrence in meetings when note taking is absent or spotty). All the accomplishments and plans from the meeting were recorded on the whiteboard and saved as a resource for the team. (LO: 4, Learning Outcome: Explain how IS can enhance systems of collaboration and teamwork, AACSB: Information Technology)

2-14.

Explain how this team uses alerts. Summarize the advantages to this team of using alerts.

Alerts were established so that when a task was added to the task list and assigned to team member, that member received an email notifying him/her of the task. This way the alert brought the new task to the attention of the right person in a timely way.

(LO: 4, Learning Outcome: Explain how IS can enhance systems of collaboration and teamwork, AACSB: Information Technology)

2-15.

Summarize the advantages to this team of using SharePoint.

SharePoint is a powerful tool for content sharing. SharePoint enabled this team to keep track of many documents that were evolving through a series of edit/review cycles; keep track of many tasks; and communicate effectively despite being geographically dispersed. As a result, the team was able to complete work on a big project efficiently and effectively without the expense and hassle of traveling. (LO: 4, Learning Outcome: Explain how IS can enhance systems of collaboration and teamwork, AACSB: Information Technology)

2-16.

Explain how you think Office 365 Professional contributes to the efficiency of the development team. How might it contribute to the quality of this text?

The most important contributions of Office 365 Professional to the efficiency of the textbook development team is the improvement in communication amongst the team and the control of the textbook content as it is being created and reviewed in preparation for publishing. Because of these capabilities, we can expect that the textbook is of higher quality. More edit/review cycles can be completed, so the textbook content is more refined. In addition, more current content can be incorporated into the textbook because the edit/review cycles do not take as much time as in the past. (LO: 4, Learning Outcome: Explain how IS can enhance systems of collaboration and teamwork, AACSB: Information Technology)

2-17.

Which aspects of Office 365 Professional described here could have value to you when accomplishing student team projects? Explain why they add value compared to what you are currently doing.

2-18.

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Student answers will vary. Students will probably find the text chat, audio and videoconferencing, online content sharing, content management and control, discussion forums, wikis, blogs, email, and concurrent document editing to be useful for student projects. Compared to traditional student group processes, there should be more meaningful participation by group members, less confusion about the status of the project, more satisfaction with the group process, higher quality group product, and more satisfaction with the group product. (LO: 4, Learning Outcome: Explain how IS can enhance systems of collaboration and teamwork, AACSB: Reflective Thinking)

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

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Organizational Strategy, Information Systems, and Competitive Advantage

LEARNING OBJECTIVES 1.

2.

3.

4.

5.

6.

Explain how organizational strategy determines information systems structure.

List and describe the five forces that determine industry structure.

Explain what is meant by competitive strategy.

Describe how competitive strategy determines value chain structure.

Describe how value chains determine business processes and information systems.

Explain how information systems provide competitive advantages.

CHAPTER OUTLINE ▪ ▪ ▪ ▪

▪ ▪

▪

How does organizational strategy determine information systems structure?

What five forces determine industry structure?

What is competitive strategy?

How does competitive strategy determine value chain structure?  Primary activities in the value chain  Support activities in the value chain  Value chain linkages How do value chains determine business processes and information systems?

How do information systems provide competitive advantages?  Competitive advantage via products  Competitive advantage via business processes  How can an organization use IS to create competitive advantages?  How does this system create a competitive advantage?

How does the knowledge in this chapter help you?

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.

SO WHAT?

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The Autonomous Race 1. The first section of the article asks you to identify innovations that have had a major impact on humanity. List a few innovations you believe have impacted society over the past century.

Student responses will vary, but will most likely include innovations in areas such as aviation, computing, and medical care. (LO: 6, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Analytic Skills) 2. The development of autonomous cars is only one facet of transportation. Can you think of other modes of transportation that have already been automated or are likely to be automated as this type of transportation technology advances?

Student responses will vary. As an example, many urban areas and large airports use automated tram systems to move groups of people from point to point swiftly. A more thrilling example is the autonomous personal transportation drone. With this innovation, the person travelling simply enters the destination on a smartphone app and the drone flies to that location. (LO: 7, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Analytic Skills) 3. Car manufacturing companies are clearly trying to stay relevant by creating their own driverless cars. What impact will the widespread use of driverless vehicles have on other industries related to the automotive industry? Will any industries be created or eliminated because of this advancement in technology?

As an example, the automotive insurance industry could change dramatically.

Assuming driverless cars can completely avoid accidents, there is no longer a need for collision coverage. Auto insurance costs will no longer be based on drivers’ driving records, driving habits, age, or even credit history. People will still need comprehensive vehicle coverage (in case a tree falls on a car, for example). Possibly, people who choose to physically drive a car will pay higher rates compared to those who use the driverless capability. The need for collision repair should drop dramatically resulting in less business for body shops. Increased demand will occur for repair/adjustment of the self-driving mechanism and also possibly retrofitting older vehicles with self-driving capabilities. (LO: 7, Learning Outcome: How do information systems provide competitive advantages, AACSB: Analytic Skills) 4. The article mentions ransomware as a pervasive security threat. What are some tactics that can be used by both private users as well as companies and municipal organizations to aid in preventing the growing use of ransomware by hackers?

The most important defense against ransomware is a robust practice of backups. Antivirus software is not yet foolproof, but is improving in its ability to use behavioral analysis to spot events that suggest ransomware is on a system and intercept it before it can do any damage. Users should use care when online and follow security best practices. (LO: 7, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Analytic Skills)

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COLLABORATION EXERCISE 3 3-4. Explain the relationship of value and cost according to the Porter model. When does

it make sense to add cost to a business process?

According to Porter’s value chain model, a business process must generate more value than cost. Adding cost to a process makes sense if the additional cost produces value that exceeds that cost. (LO: 4, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Analytical Thinking) 3-5. Suppose you are told that the business process in Figure 3-15 has a negative margin.

Explain what that means. Suppose the margin of some business process is a negative $1 million. If costs are reduced by $1.2 million, will the margin necessarily be positive? Explain why or why not.

A negative margin means that the value produced by the process is less than the cost associated with the process. Reducing costs may improve the margin, but possibly not by the full amount of the cost reduction, because the value produced by the process may also be reduced. (LO: 4, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Analytical Thinking) 3-6. Consider the alternative of replacing the rental personnel from the business process

in Figure 3-15. a. Describe changes that will need to be made to the process documented in Figure 3-15. You can download a copy of this Visio diagram from this text’s Web site at www.pearsonhighered.com/kroenke.

This figure replaces much of the rental personnel’s interactions with the customer with a Web site. The customer basically uses a self-service process to reserve a bike and return the bike. The only role for people is to do the physical maintenance of the bicycles. (LO: 5, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Analytical Thinking)

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b. Would eliminating the rental personnel change the competitive strategy of this company? Is it possible to be a high-value company with no rental personnel?

Explain why or why not.

In a sense, the competitive strategy has changed. Differentiation is still important, but rather than focusing on a “high-touch” mode of service, this change substitutes a high-tech mode of service. It is possible to be a high-value company with no rental personnel if the Web site is designed correctly and if the customers are accepting of the substitution of technology for people. (LO: 6, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Analytical Thinking) c. Would eliminating the rental personnel necessarily reduce costs? What costs would increase as a result of this change?

The costs of developing and maintaining the Web site, databases, and servers would have to be factored in to the value chain. People would have to do these tasks. Their costs might be higher than the costs of the bike rental personnel; certainly these are more costly skills. (LO: 5, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Analytical Thinking) 3-7. Consider the alternative of increasing the value delivered by existing rental

personnel. The text suggests possibly renting more kinds of equipment or selling items of use to guests who are renting bicycles, but consider other options as well. a. Describe five ways that you think the existing personnel could increase the value of this business process.

Student answers will vary. Some possible ideas include selling related items, such as bike clothing and shoes; renting helmets and saddle bags for the bike; selling snacks, bottled water, and boxed meals fit for trail rides; providing guides for trail rides of varying lengths and levels of difficulty. (LO: 5, Learning Outcome: Copyright © 2019, 2017, 2016: Pearson Education, Inc.

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Discuss the role of information systems in supporting business processes, AACSB: Analytical Thinking) b. For the five alternatives you developed in part a, name and describe criteria for selecting among them.

Student answers will vary. Selection criteria should focus on identifying the options that will be most in demand by customers; add more value than cost; and be consistent with the overall business strategy. (LO: 5, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Analytical Thinking) c. Using your criteria in part b, evaluate the alternatives you identified in part a and select the best one. Explain your selection.

Student answers will vary. Look for the students’ choice to be justified by a careful analysis and application of their selection criteria in part b. (LO: 5, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Analytical Thinking) d. Redraw Figure 3-15 for the alternative you selected in part c.

Student answers will vary. (LO: 5, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Analytical Thinking)

CASE STUDY 3 The Amazon of Innovation 3-8. Based on the facts presented in this case, what do you think is Amazon.com’s competitive strategy? Justify your answer.

Amazon seeks to differentiate itself by providing a huge array of goods at very good prices. (LO: 6, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Analytical Thinking) 3-9. Jeff Bezos, CEO of Amazon.com, 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 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: Analytical Thinking) 3-10. 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

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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) 3-11. 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) 3-12. What should UPS and FedEx be doing in response to Amazon.com’s interest in drone delivery?

Certainly, this interest in drone delivery will influence 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: 6, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Analytical Thinking) 3-13. Summarize the advantages and disadvantages for brick-and-mortar retailers to sell items via Amazon.com. 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) 3-14. 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 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) 3-15. If a brick-and-mortar retailer were to use FBA, what information systems would it

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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) 3-16. 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)

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

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Hardware and Software

LEARNING OBJECTIVES 1.

2.

3.

4.

Describe what business professionals need to know about computer hardware.

Describe how new hardware can affect competitive strategies.

Describe what business professionals need to know about software.

Evaluate whether open source software is a viable alternative.

CHAPTER OUTLINE ▪

▪

▪

▪

▪

What do business professionals need to know about computer hardware?  Hardware components  Types of hardware  Computer data How can new hardware affect competitive strategies?  The Internet of Things  Digital reality devices  Self-driving cars What do business professionals need to know about software?  What are the major operating systems?  Virtualization  Owning versus licensing  What types of applications exist, and how do organizations obtain them?  What is firmware?

Is open source software a viable alternative?  Why do programmers volunteer their services?  How does open source work?  So, is open source viable?

How does the knowledge in this chapter help you?

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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SO WHAT? New from CES 2017 1. What trends do you see pushing innovation in televisions? Why are these important to consumers?

2. How would a self-balancing motorcycle improve rider safety?

Removing the need to keep one’s balance will prevent inadvertent tip-over accidents due to rider inattention or sudden responses to traffic conflicts.

3. What other technology could be taken from robotics or self-driving vehicles and applied to motorcycles?

Self-driving capabilities on a motorcycle would enable the rider to climb on and program in the destination, then enjoy the ride with no need to control or even balance the cycle.

Riders who are not physically able to manage the weight of a traditional motorcycle would enjoy the riding experience with the assistance of self-driving, self-balancing motorcycles.

4. How might gaming change with new innovations like Fisher-Price’s Smart Cycle?

The Fisher-Price Smart Cycle adds an element of physical activity to the game playing experience and gets the children off the couch. Children generally have plenty of energy and enjoy being active, so these types of innovations accomplish that in a safe and controlled environment. In most large cities, it is not feasible to have kids out riding their bikes on the streets, but the Smart Cycle makes a similar experience possible.

5. What other devices do you think could benefit from becoming “smart” devices? Why? Student responses will vary, but should provide some interesting discussions as they brainstorm ideas for new, “smart” products and explain why they are useful.

6. What security or privacy concerns might be associated with smart devices being used by children?

Smart devices used by children need to be secured so that the wrong people could not hack into the device and discover the location of the child using the device.

COLLABORATION EXERCISE 4 4-4. 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 in developing a set of creative ideas. (LO: 1, Learning Outcome: Discuss the role of

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information systems in supporting business processes, AACSB: Information Technology) 4-5. List specific features and benefits for each of the five applications you selected in question 4-4.

Student answers will vary depending on the ideas created by the group. (LO: 1, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Information Technology) 4-6. Describe, in general terms, the work that needs to be accomplished to create the applications you identified in question 4-4.

Student answers will vary depending on the ideas created by the group. (LO: 3, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Information Technology) 4-7. 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?

The use of technologies like HoloLens will most likely have a huge impact on the gaming industry. Consequently, the availability of applications will be crucial to stay competitive. (LO: 1, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Reflective Thinking) 4-8. 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 like HoloLens may result in the complete transformation of industries and/or the creation of new business models. (LO: 3, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Reflective Thinking)

CASE STUDY 4 The Apple of Your i 4-9. 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: 3, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Reflective Thinking)

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4-10. 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 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: 3, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Reflective Thinking) 4-11. Steve Jobs passed away in October 2011. Until his death, he had been the heart and soul of Apple’s innovation. Today, 93,000 Apple employees continue onward in his absence. A huge question for many investors is whether the company can be successful without him. What do you think? What role did Jobs play? How can Apple respond to his loss? Would you be willing to invest in Apple without his leadership?

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. At this time, six years past Jobs’ death, Apple’s stock price is flying high; pricey new iPhones have bene released that incorporate facial recognition for security; but Apple seems to be late to market with an AI-based home assistant to compete with Amazon Alexa or Google Home. (LO: 3, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Reflective Thinking) 4-12. Microsoft took an early lead in the development of tablet 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 120,000 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 diffuse 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

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4-5

Few products that are truly amazing, must-have products (LO: 3, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Reflective Thinking)

4-13. Considering your answers to the four preceding questions, 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 Apple’s leadership following Steve Jobs’ death?

• How do you feel about the company’s ability to keep producing technical winners?

(LO: 3, 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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Database Processing

LEARNING OBJECTIVES 1.

2.

3.

4.

5.

6.

Explain why you need to know about databases.

Describe what a database is.

Explain what a database management system (DBMS) is.

Explain how database applications make databases more useful.

Describe how Falcon Security benefits from a database system.

Describe nontraditional DBMS products.

CHAPTER OUTLINE ▪ ▪ ▪ ▪

▪ ▪

▪

Why do you need to know about databases?  Reasons for learning database technology  What is the purpose of a database?

What is a database?  Relationships among rows  Metadata What is a database management system (DBMS)?

How do database applications make databases more useful?  Traditional forms, queries, reports, and applications  Browser forms, reports, queries, and applications  Multiuser processing How can Falcon Security benefit from a database system?

What are nontraditional DBMS products?  Need to store new data types differently  Need for faster processing using many servers  Nontraditional DBMS types  Will these new products replace the relational model?  What do nonrelational DBMS mean for you?

How does the knowledge of this chapter help you?

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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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 putting your data in the hands of a cloud provider? If you don’t use cloud-based storage, how do you back up your data?

Student responses will vary. It’s likely that most students are familiar with using Google Drive to share files with professors and student team members. Discussions of other types of data students choose to store in the cloud and the need for backups will make for an interesting conversation.

2. This article discussed the specific example of a petroleum company using cloudbased 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 then use the results of those analyses to make better decisions?

Perhaps a better question is: are there any industries that would not benefit from the ability to capture large quantities of data in real time, analyze the data, and then use the results of those analyses to make better decisions? The only industries that come to mind that could be prohibited from using cloud-based analytics are those that are legally required to know specifically where their data is located, such as banks and other financial institutions.

3. This 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 DoS attack. Take a few minutes to research what a DoS attack is and how it could prevent users from accessing their data. Be prepared to explain this concept to another classmate or to the class.

A DoS attack is a type of attack launched by hackers targeting an organization’s web servers. The hackers arrange for massive volumes of service requests to be directed to the web servers. The huge volume of requests overwhelms the web servers and they are no longer able to respond to any requests, effectively shutting down the web site.

If a cloud-service provider’s site was brought down by a DoS attack, the legitimate users who have data stored there would be unable to access that data until the attack was contained and the web servers restored to full operating strength.

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

Companies that store large quantities of highly sensitive data, such as financial or health care organizations, should place greater value on security than convenience.

Organizations that are mostly using cloud storage to make publicly available data

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more easily accessible would prioritize convenience over security. An example might be a company that is providing product lists and details to its sales force.

COLLABORATION EXERCISE 5 5-4. Study Figure 5-17 to understand the entities and their relationships. Justify each of the cardinalities in this model. For the definition of cardinality, see CE5.

• Drone / Video: a Drone may take many Videos; a Video is taken by one Drone.

• A Video instance is optional for a Drone; a Drone instance is required for a Video.

• A Facility may be recorded by many Videos; a Video records one Facility.

• A Video instance is optional for a Facility; a Facility instance is required for a Video.

• A Video may be the basis of many Analyses; an Analysis is based on one Video.

• An Analysis instance is optional for a Video; a Video instance is required for an Analysis instance.

(LO: 1, Learning Outcome: Discuss best practices for using and managing databases, AACSB: Analytic Skills) (LO: 1, Learning Outcome: Discuss best practices for using and managing databases, AACSB: Analytical Thinking) 5-5. Working with your team, develop a list of seven queries that together use all of the entities in Figure 5-17.

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

1. List the videos taken by each drone for a particular month.

2. List all the videos taken of a particular facility.

3. List all the videos taken of a particular facility at or below a specific altitude.

4. List all the videos taken by Drone X of a specific facility.

5. List all the analyzed videos for a specific facility.

6. List all the analyzed videos for a specific drone.

7. List the analyzed videos created by a specific cameral type including facilities.

(LO: 6, Learning Outcome: Discuss best practices for using and managing databases, AACSB: Analytic Skills) 5-6. Modify the E-R model in Figure 5-17 to include a Contact entity that is related to the Facility entity. Create the relationship, and specify and justify the relationship’s cardinalities.

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In the above model, we assume that each facility has one Contact person, and each Contact person represents at least one and possibly more facilities. We are assuming that Falcon’s client organizations may have several facilities but may use the same contact person for each facility; this seems a reasonable assumption. (LO: 5, Learning Outcome: Discuss best practices for using and managing databases, AACSB: Analytic Skills) 5-7. Discuss the advantages and disadvantages of the model you created in your answer to question 5-6 and the model in Figure 5-17.

The advantage of this model would be the elimination of transitive dependencies in the Facilities entity (ContactPhone depends only on ContactName, not on FacilityID. 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 facility in one place rather than have to search through all facility records to change the contact information. 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) 5-8. Transform the data model in Figure 5-7 into a relational database design. Hint: Create a table for each entity and relate those tables.

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(LO: 6, Learning Outcome: Discuss best practices for using and managing databases, AACSB: Analytic Skills) 5-9. Create an Access database for your design in question 5-8.

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) 5-10. 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) 5-11. Using the Access query facility, process each of the seven queries that you created in your answer to question 5-5.

Student answers will vary. A sample of results is shown below for the queries posed in 5-5: 1. List the videos taken by each drone for a particular month (in this example, November 2017).

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2. List all the videos taken of a particular facility (in this example, Facility #1)

3. List all the videos taken of a particular facility at or below a specific altitude (in this example, videos of Facility #1 at or below 15,000 feet).

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4. List all the videos taken by Drone X of a specific facility (in this example, Drone 1, North Dallas facility).

5. List all the analyzed videos for a specific facility (in this example, list analyzed videos for Austin facility).

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6. List all the analyzed videos for a specific drone (in this example, list all analyzed videos for drone #3).

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7. List the analyzed videos created by a specific camera type including facilities (in this example, analyzed videos for camera type TX70).

CASE STUDY 5 Searching for Pianos…

5-12. 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: Information Technology)

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5-13. 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: Information Technology) 5-14. Examine the columns in Figure 5-21. 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: Analytical Thinking) 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: Analytical Thinking) 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.

This is a model of Dean’s model of an inventory of pianos. It matches his particular situation precisely. (LO: 5, Learning Outcome: Discuss best practices for using and managing databases, AACSB: Analytical Thinking) c. How does your answer to question 5-14b influence your answer to question 514a?

Because the database is a model of Dean’s model of an inventory of pianos, it should include whatever data Dean envisions he might need in the future. There is no one “right” way to decide what attributes to include; the decision is up to the users of the database. (LO: 5, Learning Outcome: Discuss best practices for using and managing databases, AACSB: Analytical Thinking) 5-15. 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)

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City (text) State (text) Zipcode (text) Years of operation (text) Comments (LO: 6, Learning Outcome: Discuss best practices for using and managing databases, AACSB: Information Technology) b. Alter the design of the Piano table (Figure 5-21) 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 one to 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: Information Technology) 5-16. Using the data in Figure 5-24, 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: Analytical Thinking) 5-17. 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 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: Analytical Thinking) 5-18. 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: Analytical Thinking)

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

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The Cloud

LEARNING OBJECTIVES 1.

2.

3.

4.

5.

Describe why the cloud is the future for most organizations.

Describe how organizations use the cloud.

Explain how Falcon Security can use the cloud.

Explain how organizations can use cloud services securely.

Discuss what the cloud means for your future.

CHAPTER OUTLINE ▪

▪

▪

▪

▪ ▪

Why is the cloud the future for most organizations?  Cloud computing  Why do organizations prefer the cloud?  When does the cloud not make sense?

How do organizations use the cloud?  Resource elasticity  Pooling resources  Over the Internet  Cloud services from cloud vendors  Content delivery networks  Using Web services internally How can Falcon Security use the cloud?  SaaS services at Falcon Security  PaaS services at Falcon Security  IaaS services at Falcon Security How can organizations use cloud services securely?  Virtual private network (VPN)  Using a private cloud  Using a virtual private cloud What does the cloud mean for your future?

How does the knowledge in this chapter help you?

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,

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or laptop) to access it. For more information on using Learning Catalytics in your course, contact your Pearson Representative.

SO WHAT? Quantum Learning 1. Think about the last time that you learned to do 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?

Student responses will vary depending on the example of learning something new.

Physical tasks (e.g., learning new dance steps) are very different from cognitive tasks (e.g., learning a new programming language).

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

Machine learning would be needed here because the content of consumers’ tweets is very dynamic. Computers would constantly evaluate the tweets and develop categories of responses, then monitor the changes in those categories in order to “learn” that opinions are shifting based on the tweets and the direction of change (positive comments or negative comments).

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.

H e l l o 1001000 1100101 1101100 1101100 1101111 W

o

r

l

d

1010111 1101111 1110010 1101100 1100100 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.

Student responses will vary. As an example, a recent Time magazine article (Time, July10, 2017) describes six practical examples of how quantum computing will change our world: 1. Online security

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3.

4.

5.

6.

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Artificial intelligence Drug development Weather forecasting and climate change predictions Traffic control Tackling the whole problem, opening up development in fields from financial services to national security

COLLABORATION EXERCISE 6 6-4. 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 long be needed. (LO: 2, Learning Outcome: Describe the effects of e-commerce on the modern business world, AACSB: Reflective Thinking) 6-5. 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: 2, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Reflective Thinking) b. Given your answer to part a, identify three alternative ways you can respond.

We could just abandon the work we have always done completely. However, companies will still need help in determining the right cloud-based computing options. They will need help in building their databases on the cloud. They will need help in learning to use the cloud-based resources and they will still need training so that their people are comfortable with the systems obtained from the cloud vendors. (LO: 2, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Reflective Thinking) c. Which of the three responses identified in your answer to part b would you choose? Justify your choice.

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Students’ ideas on the responses and the best response 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 people-centered 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: 2, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Reflective Thinking) 6-6. 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: 2, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Reflective Thinking) 6-7. 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: 2, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Reflective Thinking) 6-8. Describe the IS services that your new business could provide for the business needs you identified in your answer to question 6-7.

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 the remote areas to participate in the telemedicine initiatives. (LO: 2, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Reflective Thinking) 6-9. Given your answers to questions 6-4 to 6-8, 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

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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: 2, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Reflective Thinking) 6-10. 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 one of constant change and evolution. No company can assume their market will remain constant over time, no matter how large it is. (LO: 2, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Reflective Thinking)

CASE STUDY 6 FinQloud Forever … Well, at Least for the Required Interval …

6-11. In your own words, summarize the dealer-broker record retention requirements.

The dealer-broker retention requirements have three elements: records of financial transactions cannot be altered after the fact; the records must be retained for a certain time period, and indexes must be created that permit record searches. (LO: 4, Learning Outcome: Describe different methods of managing IS security, AACSB: Reflective Thinking) 6-12. Reread the SEC’s 2003 interpretation. In your own words, explain the difference between “integrated hardware and software control codes” and software applications that use “authentication and approval policies, passwords, or other extrinsic controls.” Give an example of each.

Integrated hardware and software control codes refers to systems that combine control features for both the hardware and software used in the system. Software controls alone that might prevent records from being overwritten or erased through passwords do not prevent a record from being changed or deleted. (LO: 6, Learning Outcome: Describe different methods of managing IS security, AACSB: Analytical Thinking) 6-13. Clearly, in the view of the SEC, the likelihood of compromise of an integrated system of hardware and software is considerably less than the likelihood of

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compromise of a system of authentication, passwords, and procedures. Justify this view.

The SEC’s position is that extrinsic controls could be readily misused to overwrite records. The SEC believes it would be far easier to compromise such extrinsic controls like passwords than it would be to tamper with a system of integrated hardware and software controls. (LO: 4, Learning Outcome: Describe different methods of managing IS security, AACSB: Analytical Thinking) 6-14. Do you agree with the view in question 6-13? Why or why not?

Students may take positions on both sides of this issue, but it is not hard to believe that systems that rely to a considerable degree on human behavior (such as the safeguarding of passwords) is more vulnerable. (LO: 4, Learning Outcome: Describe different methods of managing IS security, AACSB: Analytical Thinking) 6-15. Investigate Jordan & Jordan (www.jandj.com) and Cohasset Associates (www.cohasset.com). If you were a consultant to a financial institution, to what extent would you rely on the statements of these organizations?

It will be difficult for students to answer this question just by looking at their Web sites. They both appear to have expertise in this arena. Whether they have the technical knowledge to evaluate the security of specific integrated hardware and software security solutions is harder to judge. Try pushing the students beyond what the words on the Web sites say to discover the research they would want to conduct before relying on the statements of these organizations. (LO: 4, Learning Outcome: Describe different methods of managing IS security, AACSB: Reflective Thinking) 6-16. If you were a consultant to a financial institution, what else might you do to verify that FinQloud complies with the SEC ruling and its 2003 interpretation?

I would consider hiring an independent firm to perform its own assessment of compliance. It is hard to just take the word of the companies hired by NASDAQ OMX at face value — they had a vested interest in finding a result that made FinQloud look good. (LO: 4, Learning Outcome: Describe different methods of managing IS security, AACSB: Reflective Thinking) 6-17. Explain how the knowledge that you have gained so far in this course helps you to understand the SEC’s 2003 interpretation. Summarize how your knowledge would help you if you worked for a financial institution. Cast your answers to this question in a way that you could use in a job interview.

At this point in the course, students will be able to appreciate the vulnerability of systems that are protected by extrinsic methods (passwords and authentication and approval policies). The human factor introduces risk that an integrated system of hardware and software controls does not share. (LO: 4, Learning Outcome: Describe different methods of managing IS security, AACSB: Reflective Thinking) For an example illustrating the concepts found in this chapter, view the videos in mymislab.com.

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Processes, Organizations, and Information Systems

LEARNING OBJECTIVES 1.

2.

3.

4.

Describe how information systems vary by scope.

Explain how enterprise systems solve the problems of departmental silos.

Discuss how CRM, ERP, and EAI support enterprise systems.

Explain how inter-enterprise IS solve the problems of enterprise silos.

CHAPTER OUTLINE ▪

▪

▪

▪ ▪

How do information systems vary by scope?  Personal information systems  Workgroup information systems  Enterprise information systems  Inter-enterprise information systems How do enterprise systems solve the problems of departmental silos?  What are the problems of information silos?  How do organizations solve the problems of information silos?  An enterprise system for patient discharge  Business process reengineering How do CRM, ERP, and EAI support enterprise systems?  Customer relationship management (CRM)  Enterprise resource planning (ERP)  Enterprise application integration (EAI)  What are the challenges when implementing and upgrading enterprise systems?

How do inter-enterprise IS solve the problems of enterprise silos?

How does the knowledge in this chapter help you?

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.

SO WHAT?

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Workflow Problems 1. Using your own words, explain the meaning of the statement “Most IT problems are workflow problems, not software problems.”

Student responses will vary. In their answers, look for the fact that workflows are the arrangements of tasks that accomplish necessary business processes. Information systems support those workflows and business processes. If the outcome of a workflow is unsatisfactory, then the workflow needs to be redesigned and the information system supporting it should be redesigned to align with the new workflow. The workflow needed should be designed first; the information system second.

2. Consider the classroom assignment problem. Briefly describe three ways of solving that problem. Which of those three is the most promising? Why? Students may identify a number of solutions to this problem. The key ideas to look for include the issue that currently, the classroom assignment process does not appear to include the professor’s teaching style and utilization of multimedia in the classroom. This factor needs to be added to the decision making process to better allocate the scarce resource of multimedia equipped classrooms to the professors who actually use those resources.

3. In your opinion, is the demand for professionals who know IS_and_something going to decrease? Increase? Stay about the same? Justify your response; search the Internet for data to support your claim.

According to the Bureau of Labor Statistics (www.bls.gov), the demand for computer systems analysts is expected to grow at a rate of 25% from 2012-2022. This job category is for people who understand both computer systems and business.

4. If you were to become an expert in IS_and_something, what would the something be?

Search the Internet for employment prospects for that career choice.

Student responses will vary.

5. Examine your current plan of courses before you graduate. What courses do you need to add to your plan to learn IS_and_something? Will you add these courses? Why or why not?

Student responses will vary.

COLLABORATION EXERCISE 7 The County Planning Office 7-4. Explain why the processes in Figures 7-12 and 7-13 are classified as enterprise processes rather than as departmental processes. Why are these processes not considered to be inter-enterprise processes?

These processes span the entire enterprise including several different departments, but

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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 Thinking) 7-5. Using Figure 7-5 as an example, redraw Figure 7-12 using an enterprise information system that processes a shared database. Explain the advantages of this system over the paper-based system in Figure 7-12.

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 was 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: 2, Learning Outcome: Describe the uses of enterprise systems and enterprise resource planning, AACSB: Analytical Thinking) 7-6. Using Figure 7-5 as an example, redraw Figure 7-13 using an enterprise information system that processes a shared database. Explain the advantages of this system over the paper-based system in Figure 7-13.

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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: 2, Learning Outcome: Describe the uses of enterprise systems and enterprise resource planning, AACSB: Analytical Thinking) 7-7. Assuming that the county has just changed from the system in Figure 7-12 to the one in Figure 7-13, which of your answers in questions 7-5 and 7-6 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: 2, Learning Outcome: Describe the uses of enterprise systems and enterprise resource planning, AACSB: Analytical Thinking) 7-8. Assume your team is in charge of the implementation of the system you recommend in your answer to question 7-7. Describe how each of the five challenges discussed in Q7-3 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 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—employees’ natural resistance to change and fear of change must be overcome through leadership and training.

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•

New technology—the solution will be affected by new technologies as they evolve, particularly the use of the cloud and mobile technology.

(LO: 3, Learning Outcome: Describe the uses of enterprise systems and enterprise resource planning, AACSB: Analytical Thinking)

CASE STUDY 7 A Tale of Two Interorganizational IS 7-9. 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 Thinking) 7-10. Explain why a health care exchange requires an inter-organizational information system.

The exchanges are definitely inter-organizational, 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. (LO: 7, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Analytical Thinking) 7-11. Using knowledge from this chapter, summarize the difficulties and challenges of developing inter-organizational information systems.

Inter-organizational 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 Thinking) 7-12. 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.

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, it would be appropriate that all data be stored in encrypted form and all data transmissions also be encrypted. (LO: 7, Learning

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Outcome: Describe different methods of managing IS security, AACSB: Analytical Thinking) 7-13. Explain what you believe are the reasons for the Access CT 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 Thinking) 7-14. Read the Executive Summary of the First Data report located at: http://www.oregon.gov/DAS/docs/co_assessment.pdf. Summarize those findings.

The Executive Summary provides a good overview of challenges and difficulties encountered on this project. One of the strongest themes learned from 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 Thinking) 7-15. Using the facts described in this case and your answer to question 7-14, list five key learnings you can take from the Access CT 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 Thinking) 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 1.

2.

3.

4.

5.

6.

Explain what a social media information system (SMIS) is.

Explain how SMIS advance organizational strategy.

Explain how SMIS increase social capital.

Explain how (some) companies earn revenue from social media.

Explain how organizations address SMIS security concerns.

Describe where social media is taking us.

CHAPTER OUTLINE ▪ ▪

▪

▪

▪ ▪ ▪

What is a social media information system (SMIS)?  Three SMIS roles  SMIS components 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 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 How do (some) companies earn revenue from social media?  You are the product  Revenue models for social media  Does mobility reduce online ad revenue?

How can organizations address SMIS security concerns?  Managing the risk of employee communication  Managing the risk of inappropriate content Where is social media taking us?

How does the knowledge in this chapter help you?

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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.

SO WHAT? Enhanced Golf Fan 1. Sports aren’t the only type of television programming that has benefited 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.

Student responses will vary because there are many changes that could be mentioned.

Some programs enable viewers to vote on participants in various contest-type shows to help determine who stays and who goes. Some programs have allowed viewers to vote on how story-lines progress during the season. Programming offered by newer content providers, such as Amazon and Netflix, is heavily influenced by the actual viewers’ patterns and preferences, because this data is captured and known to the providers.

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?

Two sports that seem to have the potential to utilize data analytics into broadcasts are tennis and baseball. Tennis already utilizes graphics to depict a player’s pattern of serve placements. Baseball could do something similar with pitches.

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?

Current and aspiring athletes can get much more precise feedback regarding their performance during practices and games. Areas needing improvement can be targeted and improvements noted. Injuries can be reduced or avoided with more focused training and performance monitoring.

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 will vary. The augmented reality devices discussed in Chapter 4 may provide new ways of “being at the game” without actually leaving home.

COLLABORATION EXERCISE 8 8-4. Compare the tech companies’ P/E ratios in Figure 8-10 to the traditional companies’

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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 groups’ answers will vary. (LO: 2, Learning Outcome: Explain how IS can enhance systems of collaboration and teamwork, AACSB: Analytical Thinking) 8-5. Identify public tech stocks you believe are undervalued (not limited to those shown in

Figure 8-10). Design an investment portfolio consisting solely of tech stocks that you believe will be profitable. Justify your decision with regards 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: Analytical Thinking) 8-6. 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: Analytical Thinking) 8-7. 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 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-thoughtout 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: Analytical Thinking)

CASE STUDY 8 Sedona Social 8-8. Search Facebook for Sedona, Arizona. Examine a variety of Sedona-area pages that

you find. Using the knowledge of this chapter and your personal SM experience, evaluate these pages and list several positive and negative features of each. Make suggestions on ways that they could be improved.

Student opinions will vary on this topic. Look for students to evaluate the use of this social media venue to support the sharing of content among networks of users. There are numerous beautiful photos of the area, but less in the way of engaging “conversation” on the pages about the area. (LO: 4, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Analytical Thinking)

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8-9. Repeat question 8-8 for another social media provider. As of this writing, possibilities

are Twitter, LinkedIn, and Pinterest, but choose another social media provider if you wish.

Students’ answers will vary depending on the provider selected. Looking at Pinterest, even more beautiful photos are found along with more commentary and some local business advertising. (LO: 4, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Analytical Thinking) The purpose of a Chamber of Commerce is to foster a healthy business climate for all of the businesses in the community. Given that purpose, your answers to questions 8-8 and 8-9, and the knowledge of this chapter, develop a set of 7 to 10 guidelines for local businesses to consider when developing their social media presence.

Students’ answers will vary. Their guidelines should encourage businesses to make it easy to find information, get answers to questions, enable users to share photos and comments, keep their pages current and inviting, make it simple for users to share links with their networks, have a plan for dealing with problematic UGC. (LO: 4, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Analytical Thinking)

8-10.

Sedona has quite a number of potentially conflicting community groups. Explain three ways that the Chamber of Commerce can use social media to help manage conflict so as to maintain a healthy business environment.

Student answers will vary. Students should recognize that the Chamber of Commerce has a role of promoting the community as a place for growth and development.

Therefore, it should use social media to foster positive relationships among those who stand to benefit from the community’s growth and development. Because there will be conflicting opinions among the various community groups, social media can help each group feel as if its voice is being heard and listened to. (LO: 4, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Analytical Thinking)

8-11.

Examine Figure 8-5 and state how the focus of each of the primary value chain activities pertains to the Chamber of Commerce. If one does not pertain, explain why.

In your answer, be clear about who the Chamber’s customers are.

• Sales and marketing—the Chamber’s customers are the owners of prospective businesses in the region. Social CRM can help the chamber manage its contacts with business prospects.

• Customer service—provides answers to current Sedona area businesses and also connects existing and prospective businesses.

• Inbound logistics—could apply to the process of obtaining the content included in Chamber/community promotional material.

• Outbound logistics—used to distribute promotional material to the Chamber’s customers (current businesses and business prospects).

• Manufacturing/operations—operations applies to the Chamber—employees can share knowledge and problem solving techniques.

• Human resources—use for prospecting, recruiting, and evaluating employees.

8-12.

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(LO: 2, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Analytical Thinking) Given your answer to question 8-12 and considering your responsibility to manage the Chamber’s social media presences, state how each applicable row of Figure 8-5 guides the social media sites you will create.

By considering each row of Figure 8-5, a variety of uses of social media become apparent. Keeping all these uses in mind will help ensure that social media sites are created for all parts of our value chain, not just one or two. (LO: 2, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Analytical Thinking)

8-13.

Using your answers to these questions, write a job description for yourself.

The Social Media Manager will help moderate and inspire promotional communications via Chamber of Commerce specific Internet-based applications to encourage the exchange of user-generated content. This position will serve as a conduit between the Chamber staff and Web site consumers (current Sedona businesses, prospective Sedona businesses, and the general public) to report events via social media channels. Manages the social media elements to foster interaction, education, engagement, and discussion regarding the Chamber’s promotional efforts through the use of both internal and external online communities. The Social Media Manager will manage, update, and enhance through creative efforts our social media efforts; Facebook, Twitter, and other blogs and social media channels. (LO: 2, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Analytical Thinking)

8-14.

Write a two-paragraph summary of this exercise that you could use to demonstrate your knowledge of the role of SM in commerce in a future job interview.

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: Discuss the role of information systems in supporting business processes, AACSB: Analytical Thinking)

8-15.

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

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Business Intelligence Systems

LEARNING OBJECTIVES 1.

2.

3.

4.

5.

Explain how organizations use business intelligence (BI) systems.

Describe the three primary activities in the BI process.

Explain how organizations use data warehouses and data marts to acquire data.

Describe three techniques for processing BI data.

Describe the alternatives for publishing BI.

CHAPTER OUTLINE ▪ ▪ ▪ ▪

▪ ▪

How do organizations use business intelligence (BI) systems?  How do organizations use BI?  What are typical uses for business intelligence?

What are the three primary activities in the BI process?  Using business intelligence to find candidate parts How do organizations use data warehouses and data marts to acquire data?  Problems with operational data  Data warehouses versus data marts What are three techniques for processing BI data?  Reporting analysis  Data mining analysis  Big Data What are the alternatives for publishing BI?  Characteristics of BI publishing alternatives  What are the two functions of a BI server?

How does the knowledge of this chapter help you?

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.

SO WHAT?

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BI for Securities Trading?

1. Consider two publicly traded companies: Apple and Alaska Airlines. List 10 factors that you believe influence the price of those two stocks. The factors may be different.

Student lists of factors will vary, but may include some of the following: World events, corporate earnings, management, lawsuits, mergers and takeovers, company news, hype, market liquidity and stability, availability of substitutes, government policy, macroeconomic fundamentals, investor sentiment, performance relative to analysts’ expectation, scandals, speculation, natural disasters.

Apple: factors affecting Apple will be slightly different than Alaska Airlines.

Apple’s stock performance is based on its continual development of impressive new and enhanced technological devices in an extremely competitive and demanding market. Apple’s stock price definitely responds to the “hype” factor, while Alaska Airlines is not as affected by hype. Alaska Airlines is in a somewhat more stable industry that is very affected by resource costs (especially fuel) and demand for air travel. News of bad weather events, terrorist activity, and airline crashes will affect Alaska Airlines but will not severely affect Apple’s stock price. (LO: 1, Learning Outcome: Compare and contrast different business intelligence systems, AACSB: Analytic Skills) 2. Pick one of the two companies in your answer to question 1. Briefly explain how each of the 10 factors influences the price of the stock.

Student answers will vary depending on their lists of factors. As an illustration, news of bad weather events, terrorist activity, and airline crashes will affect Alaska Airlines but will not severely affect Apple’s stock price. (LO: 1, Learning Outcome: Compare and contrast different business intelligence systems, AACSB: Analytic Skills) 3. For the factors in your answer to question 2, list sources of data for measuring each of the 10 factors. What role would Big Data play in processing that data?

Student answers will vary, depending on their lists of factors. Point out that much of the “hype” factor that influences Apple’s price is going to be social media-based buzz. Alaska Airlines’ factors are based on more traditional data sources such as the market price of oil and weather reports. Big data will be useful in dealing with social media-based data. (LO: 4, Learning Outcome: Compare and contrast different business intelligence systems, AACSB: Analytic Skills) 4. If you had the data in your answer to question 3, how would you go about determining how much each of the factors influences the price of the stock? What kinds of BI techniques would you employ?

As mentioned in the feature, companies are actively developing and testing models that capture a wide array of factors. Supervised data mining techniques could help determine the influence of each of those factors. The key point today is that we have so many more factors to include in the analysis than we ever did before. (LO: 4, Learning Outcome: Compare and contrast different business intelligence systems, AACSB: Analytic Skills)

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5. Assuming you had used BI to answer question 4 and now had a model of how your 10 factors influence the price of that stock, how would you determine how good your model is? How would you know that the 10 factors you choose were the right 10 factors?

To test the model, use it to create predictions and then evaluate the results of those predictions. Models can be created that appear to be a good fit with the historical data but are actually poor in making prediction. This is especially true as more and more factors are included in the model. Actual performance of predictions must be evaluated to measure the model’s worth. (LO: 4, Learning Outcome: Compare and contrast different business intelligence systems, AACSB: Analytic Skills) 6. Suppose that it is possible to obtain the data needed and to build a model to predict with 51 percent accuracy the price of a stock. Is that a usable model? What do you need to make such a model effective?

To think about this situation, assume you made many small bets based on the model’s results; you would have bet correctly 51 out of 100 times. Theoretically, you would come out ahead. For most people, however, that performance record is so marginally successful that it would not be useful. A higher accuracy rate of the model’s prediction would make the model far more useful. (LO: 4, Learning Outcome: Compare and contrast different business intelligence systems, AACSB: Analytic Skills) 7. Suppose you’ve misjudged your model and it predicts with only 49 percent accuracy.

What is likely to happen?

To think about this situation, assume you made many small bets based on the model’s results; you would have bet correctly only 49 out of 100 times. It would not be possible to come out ahead based on this performance. A higher accuracy rate of the model’s prediction would make the model far more useful. (LO: 4, Learning Outcome: Compare and contrast different business intelligence systems, AACSB: Analytic skills) 8. Summarize what you have learned from this exercise.

Students should have a better feel for the process of developing predictive models.

Despite the hype and attention currently being paid to big data and data analytics, it remains very difficult to harness the vast array of data that we have available to create meaningful results. Human intelligence remains important in creating and evaluation the results of big data modeling efforts. (LO: 4, Learning Outcome: Compare and contrast different business intelligence systems, AACSB: Reflective Thinking Skills)

COLLABORATION EXERCISE 9 Undeniably, third-party cookies offer advantages to online sellers. They also increase the likelihood that consumers will receive online ads that are close to their interests; thus, third-party cookies can provide a consumer service as well. But, at what cost to personal

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privacy? And what should be done about them? Working with your team, answer the following questions: 9-4. 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 9-14, page 274.)

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 contents (ads) on that site. This addition of third party 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 ad server company who you are, you are now personally known to them and potentially to all of their client companies as well. (LO: 4, Learning Outcome: Compare and contrast different business intelligence systems, AACSB: Analytical Thinking) 9-5. 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.

To do so in Edge, click Settings > View Advanced Settings > Cookies. Select “Block all third party cookies” from the list of three choices. Restart the browser.

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

(LO: 4, Learning Outcome: Compare and contrast different business intelligence systems, AACSB: Information Technology) 9-6. 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 online content such as that supplied by Forbes or other providers of free online content.

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: 4, Learning Outcome: Compare and contrast different business intelligence systems, AACSB: Analytical Thinking)

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9-7. 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 9-5, 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 you would actually use (as opposed to what the team thinks you should do). 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 (it is from a site that I am intensely interested in). (LO: 4, Learning Outcome: Compare and contrast different business intelligence systems, AACSB: Analytical Thinking) 9-8. 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 consequences of these facts on consumers.

Many consumers are concerned about privacy issues but too quickly become overwhelmed at the complexity of the Internet environment. It is so hard for the average consumer to comprehend everything that is going on or could be going on behind the scenes. As a result, many consumers just have a “whatever happens, happens” kind of attitude. It is not that privacy doesn’t matter, just that many people don’t really know what to do about it. (LO: 4, Learning Outcome: Compare and contrast different business intelligence systems, AACSB: Ethical Understanding and Reasoning) 9-9. 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: 4, Learning Outcome: Compare and contrast different business intelligence systems, AACSB: Analytical Thinking) 9-10. Given all you have learned about third-party cookies, what does your team think

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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: 4, Learning Outcome: Compare and contrast different business intelligence systems, AACSB: Ethical Understanding and Reasoning)

CASE STUDY 9 Hadoop the Cookie Cutter 9-11. 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 contents (ads) on that site. This addition of third party cookies is done without your knowledge or permission. (LO: 4, Learning Outcome: Compare and contrast different business intelligence systems, AACSB: Analytical Thinking) 9-12. 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). a. How can you use this data to determine which are the best ads?

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: 4, Learning Outcome: Compare and contrast different business intelligence systems, AACSB: Analytical Thinking) 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: 4, Learning Outcome: Compare and contrast different business intelligence systems, AACSB: Analytical Thinking) 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: 4, Learning Outcome: Compare and contrast different business intelligence systems, AACSB: Analytical Thinking) d. How could you use this data to determine how well the technique you used in your answer to part c was working?

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Evaluate the ads delivered and clicked on by that IP address over time and see if there has been any pattern change. (LO: 4, Learning Outcome: Compare and contrast different business intelligence systems, AACSB: Analytical Thinking) 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 cluster for a teenage heart-throb, there are probably two parents with a teenage daughter in the household. (LO: 4, Learning Outcome: Compare and contrast different business intelligence systems, AACSB: Analytical Thinking) 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 charge a higher rate for my services than my competitors who cannot show these results. (LO: 4, Learning Outcome: Compare and contrast different business intelligence systems, AACSB: Analytical Thinking) 9-13. 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.). 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: 4, Learning Outcome: Compare and contrast different business intelligence systems, AACSB: Analytical Thinking) b. Explain how your answers to question 9-12 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 9-12, 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: 4, Learning Outcome: Compare and contrast different business intelligence systems, AACSB: Analytical Thinking) 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: 4, Learning Outcome: Compare and contrast different business intelligence systems, AACSB: Analytical Thinking)

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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: 4, Learning Outcome: Compare and contrast different business intelligence systems, AACSB: Analytical Thinking) e. Explain why uses like those in c and d 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: 4, Learning Outcome: Compare and contrast different business intelligence systems, AACSB: Analytical Thinking) 9-14. 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 then can 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.

Students’ 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: 4, Learning Outcome: 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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Information Systems Security

LEARNING OBJECTIVES 1.

2.

3.

4.

5.

6.

7.

8.

Explain the goal of information systems security.

Describe the size of the computer security problem.

Explain how individuals should respond to security threats.

Discuss how organizations should respond to security threats.

Explain how technical safeguards protect against security threats.

Explain how data safeguards protect against security threats.

Explain how human safeguards protect against security threats.

Explain how organizations should respond to security incidents.

CHAPTER OUTLINE •

• • • •

• •

•

What is the goal of information systems security?  The IS security threat/loss scenario  What are the sources of threats?  What types of security loss exist?  Goal of information systems security How big is the computer security problem?

How should you respond to security threats?

How should organizations respond to security threats?

How can technical safeguards protect against security threats?  Identification and authentication  Single sign-on for multiple systems  Encryption  Firewalls  Malware protection  Design for secure applications How can data safeguards protect against security threats?

How can human safeguards protect against security threats?  Human safeguards for employees  Human safeguards for nonemployee personnel  Account administration  Systems procedures  Security monitoring How should organizations respond to security incidents?

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How does the knowledge in this chapter help you?

SO WHAT? New from Black Hat 2016 1. How could machine learning be used to secure information systems?

Intelligent machines can recognize suspicious activities and behavioral patterns in malware more quickly and easily than humans; they may also be able to discover previously unknown ways of identifying these malicious servers.

2. How might machine learning be used to create more effective information security threats?

Researchers have shown how machine learning can be used to sift through information on social media sites to create customized spear phishing attacks. The success rate of these spear fishing attacks is much higher than that of typical email phishing scams and require much less effort to create.

3. How might the use of machine learning and automated bots affect online interactions?

Machine learning promises tremendous increases in operational efficiency, but the same tools can be used maliciously.

4. Why would a hacked self-driving car be troublesome?

If a self-driving vehicle was hacked, control over the vehicle would be given over to the hacker. The vehicle could be diverted to an unexpected location; occupants could be locked inside; the vehicle could be deliberately crashed; the (unoccupied) vehicle could be stolen (started and driven to an unknown location without the owner’s knowledge).

5. Besides cars, what other types of IoT devices might be especially worrisome if hacked?

Many IoT devices could be worrisome if hacked; one that comes to mind is a drone package delivery service in which the drones are hacked. Packages might never make it to the correct destination. Drones could be diverted and the packages stolen. Drones could be crashed by the hackers, causing injury to bystanders.

6. Why might security researchers be worried about traditional auto manufacturers updating and patching vulnerabilities in their network-enabled smart cars?

Security researchers are concerned that auto manufacturers may not be prepared to roll out critical security patches frequently enough to stay ahead of hackers. This could leave networked “smart” cars vulnerable for extended periods of time. If your laptop gets a virus, it’s inconvenient but not terminal.

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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 U.S. 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: •

“Middlesex County, New Jersey, Man Charged in Hacking and Illegal Wiretapping Scheme,” A Middlesex County, New Jersey, man was arrested today for alleged computer hacking and wiretapping of his former company’s email server. Jian Yang Zhang, a/k/a “Kevin Zhang,” 37, of Edison, New Jersey, is charged complaint with one count of unauthorized access of a protected computer and one count of interception of electronic communications. He is scheduled to appear later today before U.S. Magistrate Judge Tonianne J. Bongiovanni in Trenton federal court.

According to documents filed in this case and statements made in court: Zhang and his family were part owners of a New Jersey-based company (Company 1) that imported and supplied products to dollar stores, discount stores, and wholesalers across the United States. After a dispute among the owners in 2015, Zhang and his family agreed to sell their interest in Company 1 to the other owners. While negotiating the buyout, Zhang, who served as the email administrator for the company, created a hidden sub-user account within the Company 1 email server account. When Zhang left Company 1 in February 2015, he provided the login credentials for the email server to the remaining owners, who then changed the password. However, Zhang did not disclose that he had created the hidden sub-user account. On numerous occasions over the next 14 months, Zhang accessed the Company 1 email server without authorization and set various employee email accounts to forward to outside email accounts that he controlled.

Both charges carry a maximum potential penalty of five years in prison and a fine of $250,000 or twice the gross gain or loss from the offense. September 28, 2017.

•

“International Cybercriminal Sentenced To 30 Months’ Imprisonment For ‘Grandparent Scams’,” Long-Time Cybercriminal Targeted Elderly Victims by Falsely Claiming a Grandchild Was in Jail and Needed Money Immediately. Hani Kabbara, a Canadian citizen, was sentenced by United States District Judge Margo K. Brodie to 30 months’ imprisonment for conspiracy to commit wire fraud. August 19, 2015.

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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 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 list of 20 eye-opening cybercrime statistics was found at https://securityintelligence.com/20-eye-opening-cybercrime-statistics/. This is a compilation of crime statistics pulled from a variety of sources.

• The Internet Crime Complaint Center Web site provides annual reports (https://pdf.ic3.gov/2016_IC3Report.pdf) that provide 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: Analytical Thinking) b. Compare the data in the two new sources to that in Q10-2 and describe differences.

Student responses will vary depending on the sources found by each team. (LO: 2, Learning Outcome: Describe different methods of managing IS security, AACSB: Analytical Thinking) c. Using your knowledge and intuition, describe why you think those differences occurred.

Student responses will vary depending on the sources found by each team. (LO: 2, Learning Outcome: Describe different methods of managing IS security, AACSB: Analytical Thinking) 10-6. Go to www.ponemon.org/library and download the Ponemon Institute’s 2016 Cost of Cyber Crime Study 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 2016 report focuses on the importance of thriving and innovating while simultaneously reducing the financial and reputational consequences of a cyber attack. Organizations that both innovate their operations to meet business objectives and minimize the financial and reputational consequences of a cybercrime have the following nine characteristics: (1) Security posture; (2) Information management; (3) Information governance; (4) Data protection; (5) Application security; (6) Detections and recovery; (7) Third-party risk; (8) Insider

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threat; and (9) SIEM (security information and event management). (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.

The 2016 report lists information loss or theft as the most expensive consequence of a cybercrime. Applying information management and governance practices reduces the cost of cybercrime. Certain technologies enable a high level of information management and governance; use of such technologies reduced the cost of cybercrime by an average of $3 million. A strong security profile enabled companies to innovate and control the cost of cybercrime. Companies that used application security controls reduced the cost of cybercrime. The persistent use of advanced SIEM resulted in an average savings of $2.77 million, although the research revealed that most SIEM features are not widely deployed. (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 your boss asks for a summary of what your organization should do with regard to computer security. Using the knowledge of 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.

• Data loss is the principal cost of computer crime.

• Companies can be innovative and still maintain a strong security profile.

• Security safeguards work.

(LO: 2, Learning Outcome: Describe different methods of managing IS security, AACSB: Written and Oral Communication)

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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: Analytical Thinking) 10-9. Explain how a third-party contractor could weaken an organization’s overall security.

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: Analytical Thinking) 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: Analytical Thinking) 10-11. How might a data loss at one organization affect other organizations?

Many other organizations are affected, for examples, a bank often must issue new bank cards after such an event. (LO: 5, Learning Outcome: Describe different methods of managing IS security, AACSB: Analytical Thinking) 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: Analytical Thinking) 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: Analytical Thinking) 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: Analytical Thinking)

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

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Information Systems Management

LEARNING OBJECTIVES 1.

2.

3.

4.

Explain the functions and the organization of the IS department.

Explain how organizations plan the use of IS. Discuss the advantages and disadvantages of outsourcing.

Describe your user rights and responsibilities.

CHAPTER OUTLINE ▪

▪

▪

▪ ▪

What are the functions and organization of the IS department?  How is the IS department organized?  Security officers  What IS-related job positions exist?

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 What are the advantages and disadvantages of outsourcing?  Outsourcing information systems  International outsourcing  What are the outsourcing alternatives?  What are the risks of outsourcing?

What are your user rights and responsibilities?  Your user rights  Your user responsibilities How does the knowledge in this chapter help you?

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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SO WHAT? Managing the IS Department 1. State the major functions of this new IS department. Explain how each of the functions defined in this chapter pertain to ARES. The major functions of the Information Systems department are as follows: • Plan the use of IS to accomplish organizational goals and strategy.

• Manage outsourcing relationships.

• Protect information assets.

• Develop, operate, and maintain the organization’s computing infrastructure.

• Develop, operate, and maintain applications.

All of these functions will pertain to ARES, especially since ARES is basically a data company. It will be important for there to be ongoing planning for future directions for ARES. Outsourcing in the form of cloud-based hosting services and application development has been, and probably will continue to be, a major aspect of ARES’s way of operation, so outsourcing relationships will be essential. ARES will have a big responsibility to protect the information that it is entrusted with, both from an ethical and legal standpoint. While much of ARES’s computing infrastructure is in the cloud, some elements are not. ARES will need continually to be assessing new applications, platforms, and services. In short, ARES needs all of the functions of an IS department.

2. Assume Henri hired Raj’s friend Sandeep and, so far, he’s worked out well. Even still, Zev, as ARES Systems’ owner, and you, as a key employee, might be nervous about the risks of this decision. Describe those risks. Assess how significant they are.

Explain how the decision to use an offshore contractor influences your assessment of Henri.

There are several issues that are most likely to cause concern regarding the decision to outsource application development. These are: • Loss of control: ARES is at the mercy of Sandeep’s company for application development.

• Potential loss of intellectual capital: Sandeep’s employees are the ones that are gaining intimate knowledge of ARES’s systems, not ARES employees. There is little intellectual capital being created within the ARES organization regarding its applications.

• Uncertainty about the outsourcer’s future: It is very hard to know how well Sandeep’s company is actually managed and what its future prospects are, or how interested it is in keeping ARES’s business over the long term.

Each of these issues is a legitimate risk of outsourcing and is a cause for concern. The fact is, however, that it would be very costly for ARES to hire its own in-house developers, and U.S.-based contract developers are also very costly compared to the offshore outsourcing option. The entire budget of ARES was based on the cost savings that can be obtained through offshore outsourcing of application

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development. Hiring its own development staff would eliminate these risks, but the trade-off would be increased costs.

3. Assume that Henri decided to use a cloud vendor to provide PaaS functionality.

Explain what this means and how it reflects on Henri’s competence.

PaaS stands for Platform as a Service, and involves leasing of hardware with preinstalled operating systems plus typically a DBMS. ARES could obtain its basic infrastructure using this type of outsourcing arrangement. The hosting company provides and manages the platform and ARES utilizes the platform for its overall systems infrastructure. This can be a very cost-effective way for organizations to obtain computing resources.

4. Given the decisions (in questions 1–3) that Henri has made, a. What will be the function and goals of the Operations group (see Figure 11-1)?

The Operations group manages the computing infrastructure, including individual computers, in-house server farms, networks, and communications media. This group includes system and network administrators. An important function for this group is to monitor the user experience and respond to user problems. While a large portion of ARES’s infrastructure will be outsourced, it will need Operations personnel to work with ARES’s main office infrastructure, and in particular to support the customer service representative who will be key to ARES’s functioning. b. What will be the function and goals of the Development group? What job descriptions will this group need to staff?

ARES’s development group will primarily need business and systems analysts who work with users, operations, and vendors to acquire and install licensed software using the PaaS infrastructure and to set up the system components around that software (including the data, procedures, and people). c. What will be the function and goals of the Outsourcing Relations group?

Outsourcing Relations will be very important for ARES, because both the computing infrastructure and application development will be outsourced. It will be important to have someone devoting time and attention to these outsourcing relationships to ensure that the outsourcing firm is fulfilling its contractual commitments. ARES is somewhat at the mercy of these outsourcers and it must be diligent about ensuring that the relationships are beneficial. d. Assume Henri has not specified the need for a CTO. Is this a mistake?

One of ARES’s biggest challenges is that it is based upon its primary users using a variety of exercise devices and AR headsets to interact with ARES. The AR headsets market is extremely susceptible to change, with new devices and new capabilities being launched practically every day. While ARES might appear too small to justify a CTO, that person might actually be a critical resource for them.

ARES cannot afford not to keep up with the devices that its users want to use. If it

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does not keep up, it will quickly become obsolete as a service and will no longer be a viable business.

5. Given your answers to questions 1–4, how would you respond to Zev’s question “Is Henri right for us?”

It appears from what we have learned that Henri is utilizing the modern elements of IS management in an effective and appropriate way.

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/Initiatives/GreenComputing/EnergyUse/CalculatorIntro/tabid/46 42/Default.aspx, 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.

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(LO: 1, Learning Outcome: Discuss best practices for selecting, evaluating, and managing information systems projects, AACSB: Analytic Thinking) 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 • 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 Thinking)

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11-6. Using the data from questions 11-4 and 11-5, compute the total power used by computing devices on your campus.

This spreadsheet uses the energy consumption estimates from the Columbia University Energy Usage spreadsheet in question 1. 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 CO2, and miles driven are computed.

(LO: 1, Learning Outcome: Discuss best practices for selecting, evaluating, and managing information systems projects, AACSB: Analytic Thinking) 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.

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(LO: 1, Learning Outcome: Discuss best practices for selecting, evaluating, and managing information systems projects, AACSB: Analytic Thinking) 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 item 2, 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.

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 Thinking) 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 Thinking)

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c. All user computers are shut off during nonwork 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 Thinking) 11-10. Given your answers to items 11-4 to 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 suggest 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 1, 3, and 4 show clear reductions in CO2 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, AACSB: Analytic Thinking)

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?

Automated labor can provide companies a competitive advantage if the company is able to use them to reduce costs and/or improve efficiency and effectiveness. When this technology is also adopted by competitors, the competitive advantage we have will go away, unless we are able to do things differently with our automated workforce that does enable us to attain and maintain our competitive advantage. What we do with the robots becomes more important than just replacing our human labor.

(LO: 2, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Analytic Thinking) 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?

The availability of an automated workforce implies a number of things to people seeking a university-level education: (1) Focus on career paths that involve higherlevel, non-routine cognitive tasks. Routine cognitive tasks will be allocated to the automated workforce. (2) Take every opportunity to you to develop your unique problem solving skills and your ability to innovate. (3) Consider career paths with a high need for human interactions (e.g., sales). Several majors that might benefit from

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an automated workforce include product design & engineering, sales/marketing, and law. In an era of expanding automated workforce, universities will need to adjust their offerings if a job/career path becomes a part of the automated workforces’ capabilities and no longer requires a university education to perform. (LO: 2, Learning Outcome: Discuss the ethical and social issues raised by the use of information systems, AACSB: Analytic Thinking) 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 will vary, but a few ideas include companies that provide package delivery with self-driving trucks and robots to actually deliver the package to your door; grocery delivery via self-driving cars and robotic delivery ‘personnel’; lawn care/mowing services using robotic devices. These innovative ways of providing services could be performed as well or better than traditional services with human labor, at a far cheaper prices; therefore, existing businesses may be threatened. (LO: 2, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage , AACSB: Analytic Thinking 11-14. Government regulations like 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.

Legislation can be used to influence behavior in ways that are deemed advantageous to society. To protect the human work force, the use of an automated workforce could be made less desirable financially through taxes or surcharges that could be imposed on them. (LO: 2, Learning Outcome: Discuss the ethical and social issues raised by the use of information systems, AACSB: Analytic Thinking) 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 will vary. One job that comes to mind is working in mines, which is very dangerous to the human workers. (LO: 2, Learning Outcome: Discuss the ethical and social issues raised by the use of information systems, AACSB: Analytic Thinking) 11-16. A personal robot could be purchased for personal 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?

If a robot was available to perform many household tasks, the owner of the robot would have to incur little expense for those tasks after the initial robot purchase. The alternative of hiring human labor would involve no up-front costs but would have ongoing and possibly increasing costs over time. The robotic option would also Copyright © 2019, 2017, 2016: Pearson Education, Inc.

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eliminate the need to find and retain the human worker in the first place. (LO: 3, Learning Outcome: Discuss the ethical and social issues raised by the use of information systems, AACSB: Reflective Thinking) 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?

Without any human-like motivations (e.g., greed, lust for power, etc.), the robotic workforce would simply do the tasks they are programmed to do. (LO: 3, Learning Outcome: Discuss the ethical and social issues raised by the use of information systems, AACSB: Reflective Thinking) For an example illustrating the concepts found in this chapter, view the videos in mymislab.com.

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Information Systems Development

LEARNING OBJECTIVES 1.

2.

3.

4.

5.

6.

7.

8.

9.

Explain what systems development is.

Describe why systems development is difficult and risky.

Describe the five phases of the SDLC. Explain how system definition is accomplished.

Describe the users’ role in the requirements phase.

Explain how the five components are designed.

Describe how an information system is implemented.

Describe the tasks for system maintenance.

Explain some of the problems with the SDLC.

CHAPTER OUTLINE ▪ ▪

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What is systems development?

Why is systems development difficult and risky?  The difficulty of requirements determination  Changes in requirements  Scheduling and budgeting difficulties  Changing technology  Diseconomies of scale  Is it really so bleak?

What are the five phases of the SDLC? How is system definition accomplished?  Define system goals and scope  Assess feasibility  Form a project team What is the users’ role in the requirements phase?  Determine requirements  Approve requirements  Role of a prototype How are the five components designed?  Hardware design  Software design  Database design  Procedure design  Design of job descriptions Copyright © 2019, 2017, 2016: Pearson Education, Inc.

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How is an information system implemented?  System testing  System conversion What are the tasks for system maintenance?

What are some of the problems with the SDLC?  The SDLC waterfall  Requirements documentation difficulty  Scheduling and budgeting difficulties How does the knowledge in this chapter help you?

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.

SO WHAT? Banking on IoT 1. Sports are one area in which the collection and analysis of data have had a huge impact on how teams manage personnel and strategize during games. Take a minute to list or brainstorm all of the different types of data and analysis that could be useful in improving decisions for sports teams.

Student answers will vary depending on the sport. An example from football includes sensors on the players that record the physical punishment each player has experienced during the game. Players that are showing any signs of fatigue or impairment can be quickly removed from the game and examined. Physical injuries could be reduced by giving players chances to rest before significant injuries occur.

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?

Student answers will vary. One potential problem could occur when your refrigerator sends in orders to restock items, but you actually emptied the refrigerator before going on vacation and forgot to tell it that you would be out of town for the next two weeks.

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?

Student answers to this question will vary widely. Having the ability to have the level of dog food in the bin automatically monitored and reordered when needed would be great for this writer personally.

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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)?

It may harder to monitor a large number of very small transactions effectively to ensure that they are all legitimate and authorized.

COLLABORATION EXERCISE 12 12-4. From the description given, define the scope of the project.

The scope of this project is to develop an information system application that will enable each partner to share his/her property listings with the other partners. (LO: 4, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Analytical Thinking) 12-5. Consider the technical feasibility of the two alternatives: a. Name and describe criteria you would use for alternative a.

Technical feasibility refers to whether existing information technology is likely to be able to meet the needs of the new system. Email is an existing information technology that all parties are most likely familiar with. (LO: 4, Learning Outcome: Discuss best practices for selecting, evaluating, and managing information systems projects, AACSB: Analytical Thinking) b. Name and describe criteria you would use for alternative b.

The partners may not have any prior knowledge of and use of cloud-based applications and reservations systems based in the cloud. These technologies may be new to the partners but are not new in general. The partners would have to investigate cloud-hosted reservations systems and vendors. (LO: 4, Learning Outcome: Discuss best practices for selecting, evaluating, and managing information systems projects, AACSB: Analytical Thinking) c. Is it possible to know, without further investigation, whether either alternative is technically feasible? Why or why not?

At this stage, technical feasibility is difficult to judge without more information.

None of the partners involved have enough technical knowledge personally to accurately assess this. The partners should rely on the advice of consultants to assist them in assessing technical feasibility (LO: 4, Learning Outcome: Discuss best practices for selecting, evaluating, and managing information systems projects, AACSB: Analytical Thinking) 12-6. Consider organizational feasibility: a. Explain what organizational feasibility means in the context of an interenterprise system.

Organizational feasibility concerns whether the new system fits within the

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organization’s customs, culture, charter, or legal requirements. Because this idea concerns an interenterprise system, we would need to evaluate the criteria for all three organizations. (LO: 4, Learning Outcome: Discuss best practices for selecting, evaluating, and managing information systems projects, AACSB: Analytical Thinking) b. List criteria you would use for assessing organizational feasibility for these alternatives. Differentiate criteria between the two alternatives if you think it is important to do so.

Both systems will require that each organization accept the new business processes that will be associated with the system and agree to integrate these processes into the organization. The processes associated with Option a will be much less technical on the surface, but will also be less efficient. Each organization will need to assess the effect on its staff to adopt and incorporate the business processes associated with these two options. (LO: 4, Learning Outcome: Discuss best practices for selecting, evaluating, and managing information systems projects, AACSB: Analytical Thinking) c. Is either alternative a or b more likely to be organizationally feasible than the other? Explain your answer.

Option b appears to require a more significant organizational commitment on the part of the partners and their organizations’ staff; however, both options will require a degree of organizational change in order to be adopted successfully.

(LO: 4, Learning Outcome: Discuss best practices for selecting, evaluating, and managing information systems projects, AACSB: Analytical Thinking) 12-7. Consider schedule feasibility: a. List criteria you would use for schedule feasibility for these alternatives.

Differentiate criteria between the two alternatives if you think it is important to do so.

Option b requires a more significant development project. Option a basically just involves the partners agreeing to develop a business process for emailing information. Each partner would need to evaluate if he/she has the time to devote to the entire project of Option a. (LO: 4, Learning Outcome: Discuss best practices for selecting, evaluating, and managing information systems projects, AACSB: Analytical Thinking) b. Is either alternative a or b more likely to be schedule feasible than the other?

Explain your answer Option a has a much shorter implementation timeframe than does Option b. (LO: 4, Learning Outcome: Discuss best practices for selecting, evaluating, and managing information systems projects, AACSB: Analytical Thinking)

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12-8. Consider cost feasibility: a. List sources of the major development costs for alternative a.

Time for the partners to develop the business process of email sharing of property listings; legal costs for developing the partnership agreement. (LO: 4, Learning Outcome: Discuss best practices for selecting, evaluating, and managing information systems projects, AACSB: Analytical Thinking) b. List sources of the major operational costs for alternative a.

Operational costs in this case will be the time commitments to continue to send property listings to each partner using email. (LO: 4, Learning Outcome: Discuss best practices for selecting, evaluating, and managing information systems projects, AACSB: Analytical Thinking) c. List sources of the major development costs for alternative b.

Time for the partners to investigate cloud-based reservation hosting systems; creation of the shared database; creation of the business processes that will be used with the new system; legal costs for developing the partnership agreement.

(LO: 4, Learning Outcome: Discuss best practices for selecting, evaluating, and managing information systems projects, AACSB: Analytical Thinking) d. List sources of the major operational costs for alternative b.

Ongoing costs of the hosted system; maintenance of the system if changes are needed; time to contribute information to the new system and to use it. (LO: 4, Learning Outcome: Discuss best practices for selecting, evaluating, and managing information systems projects, AACSB: Analytical Thinking) e. Which alternative is likely to be cheaper to develop?

Alternative a is less expensive to develop. (LO: 4, Learning Outcome: Discuss best practices for selecting, evaluating, and managing information systems projects, AACSB: Analytical Thinking) f. List and describe factors that may make alternative a cheaper to operate.

Option a will be less expensive to operate since the underlying technology, email, will not be very changeable. The partners will either use the capability as is, or will eventually abandon it due to its inefficiency. (LO: 4, Learning Outcome: Discuss best practices for selecting, evaluating, and managing information systems projects, AACSB: Analytical Thinking) g. List and describe factors that may make alternative b cheaper to operate.

Once created, Option b will provide a more convenient and effective solution than Option a. The partners will not have the inefficiencies and wasted time associated with emailing each other, so in terms of their time spent with the system, Option b may be cheaper to operate. (LO: 4, Learning Outcome: Discuss best practices for selecting, evaluating, and managing information systems projects, AACSB: Analytical Thinking)

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12-9. Given your answers to questions 12-5 through 12-8, which of the alternatives do you believe is likely to be feasible? It could be both, just one, or neither. Justify your answer.

Alternative a 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.

Alternative b 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.

Both alternatives are feasible. (LO: 4, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Analytical Thinking) 12-10. What would you say if one of the three principals were to ask you at this point, “Is it worthwhile for me to even consider this idea anymore?” Justify your answer.

Without more data, you cannot make a true assessment, but apply your knowledge, experience, and intuition to formulate a response to that question.

The partners need to determine if the value generated by Option b will justify its cost.

I recommend that they obtain proposals on developing Option b. 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 system, due to its inefficiencies, may not generate the same level of revenue as the shareddatabase system probably would. (LO: 4, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Analytical Thinking)

CASE STUDY 12 When Will We Learn?

12-11. 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 in 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

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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, AACSB: Analytical Thinking) 12-12. 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 themes learned from 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: Analytical Thinking) 12-13. In Case Study 7 (pages 211-213), 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.

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: Analytical Thinking) 12-14. 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, AACSB: Reflective Thinking)

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12-15. 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, yet he 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? If so, who?

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

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